Welcome to Worldwide Exchange. Im sara eisen. Im wilfred frost. Very good morning to you. It is the last week of 2016. So we are playing the top songs from the year. This was this year . Seems older. It does, indeed. But i trust our expert producer. Dj sophia nails it every day. Lets check in on the global markets. Day after a big selloff on wall street. Big relative to where weve been lately. Worst day for the s p since back in october. Interesting because this time yesterday, i think you and i had a bet. We did futures were up double digits. We thought yesterday was the day that would hit 20,000. Not so much. So so i owe you lunch. Nice. Arbitrary bet. Im never going to say dow 20,000. We already said it about four times. About a thousand times over the last week. No dow 20,000. We have pulled further and further away from that. We saw a triple digit decline for the dow. You mentioned the second one since the election. Rare to see big selloffs. Dow futures are down 10 this morning. S p futures flat. Nasdaq futures down 7. The tenyear treasury note yield, a reversal of all of these trades and some buying towards these last few days of the year. Thats pushed the yield further south 2. 47. Strong auction yesterday. Rebalancing towards the end of the year. Hearing a lot of anecdotal evidence that Pension Funds are doing the selling of stocks and bonds towards the end of the year. That was a big move yesterday. Yesterday around 2. 55, already away from the highs of 2. 64. So another decent move away from the postelection trend. So lets look at data overnight. South korea cutting its 2017 forecast of growth forecast, down to 2. 6 from 3. 0. Citing increasing Interest Rates in the u. S. And trumps trade policies. Uk house prices increased slightly in december. Deloitte releasing its quarterly survey, morale at an 18 month high in the Fourth Quarter, helped by strong Economic Growth. Still uncertainty about britains departure from the eu caused firms to be reluctant when it comes to the investment spending. Lets check in on european equities right now. Softness continues spilling over from yesterdays selloff on wall street across the continent. The dax is down about 0. 3 . The ftse 100, pretty flat. It is hovering at a record high. Helped by a surge in the miners yesterday. Industrial metals rebounding. Spain and italy, spain down about 0. 2 . Nothing sharp in terms of declines, but taking a step back from the highs. The ftse 100s alltime high generally coming because of a weak currency. Thats also why we have seen strong gains yet to date for germany and france, particularly in the final quarter. Mentioned this yesterday, very different picture to what we got in the u. S. The u. S. Rallied despite a strong dollar. Germany, france, uk, japan rallying because of the opposite reason. They get a boost in earnings. As for asia overnight, the stronger yen in the overnight session hurting the japanese market. The nikkei closing down 1. 3 . The topix also had a rough day on the back of a stronger yen. Seeing a reversal of the trades that have been the post election theme. Hong kong is a star performer, closing up 0. 2 . Toshiba face its third day of massive declines, weighing significantly on that company and the sector. One of the reasons the nikkei is down. Oil prices, they have been on a decent steady gain. Oil had its seventh positive session in a row yesterday. Up 0. 3 . Today down in terms of wti by a similar amount. The international gauge of brent is slightly positive. Generally speaking, up about 10 for the quarter for oil. For the year, up 46 . A look at the dollar, which was stronger yesterday by 0. 3 against a broad index of currencies for its third positive session out of four today. It is giving that up. Decent move for the dollar south against all of those major currency pairs. Big move against the yen. Gold, has had a decent bounceback is up again today, 0. 11 . 1,148, still down since the election but up for the year as a whole. Add it all up, you have a 14 gain for the dow, 10 for the s p, 8 for the nasdaq. This is a pause. This is a pullback. Hard to tell if this is anything more than that. There was no real catalyst for the selloff yesterday. Saw the vix go above 13, gauge of volatility. Nothing alarming, just maybe normal correction of some gains that weve been seeing. Some yearend portfolio rebalancing. Nothing alarming. Interesting to point out two particular factors. We did see that move in yields. For the first month of the trump rally it was very much yields going up, equities going up. Ie selling of bonds, buying of equities. That reversed yesterday. Interesting to see if that trend continues. That could make us think things over more. The other thing, futures up yesterday. Up at the open as we were doing squawk on the street. The top stock at the open, goldman sachs. At the end of the day, financials were down 1. 4 . With that also saw its worst day in since the election. Thats quite interesting in terms of the turnaround. Similar from the bonds to equities point, it was financials, something so strong since the election that led to the downturn yesterday. It was a broad profit taking, but as you said at the top, not massive. 0. 8 for the s p. Potentially in part triggered by pending home sales which came out during the 10 00 hour which showed softness. Those are signed contracts, havent been closed on homes. Housing has been a big part and chunk of this economic recovery. We have started to see rising Mortgage Rates along with those rising treasury yields which could put a damper on some home sales. Something to watch going forward. Final point, volumes lower. To politics and the u. S. Economy, president elect trump announcing sprint will be bringing back 5,000 jobs to the u. S. From overseas. Another Company Called one web will be adding 3,000 jobs in the u. S. Hes taking credit for the move. Watch. Sprint, i just spoke with the head person, he said because of me theyre doing 5,000 jobs in this country. They just put a release out, hope has it. Youll see it. Thats that. Massa is doing 3,000 jobs with, as you know, one web. The president elect said the deal was done through softbanks ceo. You heard him refer to massa. Softbank owns 80 of sprint. Invested a billion dollars in one web. Earlier this month trump and softbank agreed to invest 50 million in the u. S. And 50,000 jobs. Those 5,000 jobs are part of the 50,000. Sprint said it is excited to work with the president elect. The founder of one web, that other company, will be on squawk box at 7 40 a. M. Sprint doesnt have any of its own overseas jobs. But i guess it works through employers and outsources when it comes to some Customer Service jobs. So it will bring those to the u. S. And sort of adding u. S. Positions in its own stores. Its expanding. Its been a great stock. The ceo has been doing a good job in terms of fighting debt. That was always going to be a big problem for sprint. Winning back subscribers in a tough competitive telecom industry. This is initially 8,000 of the 50,000 jobs that they promised. Interesting to see donald trump yet again claiming credit for this. To switch focus to what he claimed credit for yesterday, the market moves and data coming through, there will be blips, no matter what. However positive you are, somewhere in the fouryear term, well get a pullback. He will take credit for that as well . Will he come out with encouraging Forward Looking Statements . Of course were due a dip, but it will bounce back or something. Far its great press headlines for him. Great politics. Hes not even in office yet. When was the last time we saw a sitting or soon to be sitting u. S. President just calling up, making deals, going straight to the companies and ceos. President elect trump is considering moving the department of Veterans Affairs towards privatization. This according to a transition official. Trump spoke about his planned overhaul last night. I dont want to see veterans waiting in line for two weeks. In many cases they have a minor illne illness, it takes so long to see a doctor it becomes something more. People are dying. We will fix it properly. Trump has been meeting with a number of Healthcare Professionals as he searches for someone to head the va. The agency has been rocked by scandal since it revealed in 2014 that voeterans were dying while waiting fto see physician. This morning, weekly jobless claims are out at 8 30 a. M. Eastern. Forecast calling for a pullback in firsttime claims for unemployment. At 8 30, the advanced report on trade deficit. Especially now, trade such a heated political topic. In tech news, twitter is exploring new opportunities to build its audience. Landon dowdy has the details. Reporter so glad we got you to do the intro, just so we can hear you say twitter. Twitter is launching 360 degree Live Streaming video offering a panoramic view of the world, something that facebook and youtube already offer. Now anyone can watch twitter 360 live video, but only select partners can go live via the periscope app. You plug the camera into the bottom of the phone. Yesterday twitter said the new feature will get users to get a look at personalties and go behind the scenes at exclusive events. This comes after twitter tries to find a way for itself after a challenging year. Its been the subject of potential major acquisitions, and struggles with stagnating user growth and a brain drain in the new product department. Looking at the stock, for 2016, shares of twitter down almost 29 . Back over to you. So hard to believe with how much the president elect uses it. Wonder if he gets privileges for the 360 periscope video. Im sure he will be granted all privilege desired. Landon, thank you. A stock to watch today, toshiba shares falling sharply for the third day in a row. Down another 17 on credit downgrades. Earlier this week the company said it faces a possible multibillion dollar writedown of its u. S. Nuclear business. Po it has been downgraded deep near junk status. On the flip side, in japan, shares of takata surging today on reports that the company could settle u. S. Criminal charges before the Obama Administration leaves office. The part of the settlement would include takata pleading guilty to misconduct. The Justice Department is investigating whether the company hid information from safety regulators about the dangers of its defective air bags, which have been linked to at least 16 deaths. New details on apples efforts to manufacture products in india. Indian government officials will probably meet early next week to evaluate incentives sought by apple to manufacture products in that country. Making goods in india would allow apple to open stores there. The tech giant only holds 5 of the Smartphone Market in india. It has been a big focus for ceo tim cook. He brings it up often on the earnings calls as a potential growth area. Still to come, financials have been on a tear since election day. Well look at what could be in store for the sect nor for 2017. First, we want to know what you think was the Top Investment of 2016 . Send us your answers. Well read some of them on air before the show ends. I hope somebody was invested in nvidia. That was a good one. Or bitcoin. Many others. Get in touch with us. Back in a couple minutes. Where, in all ofhis, is the stuff that matters . The stakes are so high, your finances, ur future. Howyou dont. Lve thi you paner with a firm that advises governments and the une 500, and, can deliverighterson to person, on wt matters to you. Morgan stanley. Anything with a screen is a tv. Stream 130 live channels. Plus 40,000 on demand tv shows and movies, all on the go. You can even download from your x1 dvr and watch it offline. Only xfinity gives you more to stream to any screen. Download the xfinity tv app today. Welcome back to Worldwide Exchange. Good morning. Lets get you up to speed on the market action. Some softness after a selloff yesterday. Second triple digit decline for the dow since the election. Dow futures down a little more than nine points. Nasdaq futures down around six. S p about flat line. The dollar pulled back in overseas trading action. Dollar is weaker for a change against the japanese yen. 116. 32. The euro is stronger. 1. 0474. And the british pound is stronger, which looks like were getting a reversal of the trades. Also seeing some buying of u. S. Treasuries, pushing yields lower. Potentially profit taking on those winning post election trades. Even the british pound is stronger. Not that much of a surprise. Great currency. Any way. Moving on. We are just he days left in 2016, cnbc is getting out the playbook of what could lap in various sectors of the year. Today we look at financials. Having underperformed not just for most of 2016, but most of the last decade, banks have taken off in the Fourth Quarter. Not least because of the election. As we head into 2017, here are the things to watch. The yield curve will be key. Of all the Fourth Quarter factors that have driven the banks rally, the most important is the rise in Interest Rates. Whether the yield curve maintains its recent rise and steepening will be the major factor for banks share prices. Bank of america is the most geared of the big names to Interest Rates which is why it has performed so well since the election. Other trump related changes, the key thing here, whether he can deliver more positive surprises as 2017 arrives. In terms of deregulation, repatriation of cash from overseas. All of which is very positive for banks. But how much is already priced in . A glance at how valuations have changed in the last few months shows the improvement in Investor Sentiment to the sector, but also the scope for it to improve further based on longterm averages. Risks remain. The main outstanding risk is credit caquality. Loan growth has been strong in 2016 and fears remain about how late in the cycle the economy is. The improvement in oil prices in q4 has been another shortterm positive in this regard. My voice is very serious and boring on those packages. I think its good. Very professional. You think . Sounds like a documentary. Am i unprofessional during the show then . It was a little more formal. The key point is the yield curve. Interesting to see it step back today and the last couple of weeks. Thats why share prices and banks have moved up, more than the hopes of deregulation and tax changes. So i think you can still be positive on banks from here, if you think the yield curve move has been justified. If you think the yield curve move will continue to steepen. In other words, better economic data, getting progrowth moves out of washington. Gdp hopes. Fed rate hike hopes. Exactly. So we dont need cuts of Interest Rates again, but less hikes. Question, do you think are you hearing better for regional banks versus there seems to be a divergence of opinions. The first is who is more geared to the yield curve, that can be a big bank or regional bank. In terms of deregulation, absolutely. If deregulation comes, regionals will benefit more. The big banks are already in good position. They have dealt with the regulation. It who will benefit the most if deregulation comes, smaller banks. Thats what Girard Cassidy told us yesterday, especially if they dont have to do stress tests. When we come back, the top political stories. First, heres todays National Forecast from reynolds wolf. Good morning. Lets look at that forecast. We have breezy conditions in the windy city. 34 degrees is the expected high. Atlanta, showers, maybe a thunderstorm or two. That will be earlier in the day, this afternoon drier air moves in. Upstate new york, you could be dealing with snowfall. Dallas, fairly mild conditions, 58 degrees. Denmark, 25. Seattle with rain. Los angeles, 77 degrees. The mild air will continue for parts of the soirn plains and along the gulf coast. Miami sitting pretty. 84 degrees expected. New york, breezy times. We can expect that cold air to stay there place for parts of the Northern Plains and central rockies. We are going to commercial, after that, more Worldwide Exchange. Good morning. Welcome back to Worldwide Exchange. Yesterday we did open in positive territory. The dow jumped about 0. 3 , but ended down triple digits, around 0. 6 with the s p, the nasdaq down further, around 0. 8 , 0. 9 . It was a negative day. We saw bond yields slip as well. Traditional riskoff move. Selling of equities, buying of bonds and financials. Today as you can see, pretty much flat. We will probably pause that decline. That decline, though it was the best part of 1 for the s p and nasdaq, nothing too much to worry about unless it proliferates further from here. Oil prices, they will seven Straight Days of gains for wti yesterday. Up 0. 3 . Slipping a slight amount this morning. Sara . To politics. Russias Foreign Ministry says if the u. S. Imposes new sanctions over hacking claims it would be an attempt to disrupt cooperation between the to countries. The Obama Administration is expected to announce those measures today to retaliate against moscow for allegedly hacking the Democratic Party ahead of the itself election. Republican senator Lindsey Graham says russia should expect tough sanctions. When asked about the issue yesterday, president elect trump said the u. S. And russia should lay the controversy to rest. I think we ought to get on with our lives. Computers have complicated lives great greatly. The whole age of computer makes it where nobody knows what is going on. You have speed and everyone else, im not sure we have the security needed. I have not spoken with the senators. I will be over a period of time. Trump has cast out on the findings of the u. S. Intelligence agencies that Russian Hackers interfered in the election. Another Foreign Policy issue that puts the sitting president and the president