Transcripts For CNBC Squawk On The Street 20171208

Highs. A government shut down averted by now well talk to gary cohen from the white house in a few minutes. And elon musk talking about the race to mars first up though private sectors up 221,000 in the last month upward september and october added jobs later on we will talk to gary cohn the director of the president s counsel. Its up from the prior 2. 4. Look, i have very little to pick on. I think this is a very good number the thing that caught my eye, for that emphasis, what caught my eye was manufacturing added 30,000 jobs, kind of a wr renaissance happening in this country. 2. 6, first time under 3 thats a record low. People making jokes this morning what robot revolution are we talking about. We have workers having plenty of choices. Well, i mean, it may be coming but there are plenty of plants being built when you talk to the Utility Companies whats going on in the southeast portion of the country, tennessee, and kentucky and texas, they cant keep up with the building, and a lot of it is natural gas. And we have to recognize the country has, with a weaker dollar, ill say it with less regulation, and with natural gas, they are putting plants up left and right. Nearing lose. We dont know what to do with the stuff. You know what, we are flaring 18 up. 18 flafd. They dont want you to know that by the way. Is that off an oil well gas. You can see it, you can see the terrible fires, unfortunately, you can see the flaring in north dakota. Its not just carson wentz thats on fire its flaring. Which is not uncommon but not at that rate. I have to say i dont think people realize we dont know what to do with the stuff. In the marcelus trying to get the pipelines, southeast to get the pipelines, we have so much we dont know what to do but sure is great for manufacturing. Well, why, cheap energy cheap energy and the president is not averse to putting pipelines through places where i think president obama may not have been that happy. Right. Back to the jobs number the average monthly gain is 174 which is the lowest in a few years, which are we in a stage where it is hard to get the kind of growth weve had because of whats happening to the labor pool. I think there is a lot of people doing untraditional work. A lot of people doing shifts a lot of people trying to put together a bunch of work but there wasnt anything in here that said, look, if the fed wants to raise rates, because they want to be ready if something bad happens, i totally get this, but this is the kind of report you wait for all your life, really good jobs, high paying jobs but not jobs that are inflationy. This is what people have been shooting for we can complain about it but that would be fake news. We are getting later in the cycle though even when you look at, its true no. Okay. Well, let me give you u. S. Concrete says. 6 month average 178 and yeartodate 174,000 average jobs added each month. Which is strong. Yes, so far you are. 187 in 2016, 220,000 in 2015. And in 2014, 200,000. Things are getting tighter. Its not getting tighter its getting tighter. But a lot, look, the industries i follow, housing very strong, aerospace, manufacturing very strong auto. Tighter but we havent seen the waives growth people would have anticipated no. And why arent we going to have significant rate hikes next year as a result im in favor. Have you to slow it down housing is a little too high but of course theyll take care of housing with gary cohn, well speak to. No longer being able to deduct. Yeah, that will take care of housing. So Housing Affordability act. Yeah, bitcoin and housing has dropped overnight. Nobody is shedding a tear for all the rich peoples taxes that will go up. Yeah, i know. I call the guys sitting right here at this desk. Jim mentions bitcoin. We have some volatile moves this morning, crypto currency pulls back which included 40 jump in 40 hours all of that ahead of a bitcoin launch on sunday ft and the journal saying goldman will offer clearance for some clients, but b of a, citi, saying not right away. I think bitcoin, i think they were bit on, on very little volume and i think the short selling is going to just annihilate people when you can start trading, annihilate because supply there has been no supply. Will bitcoin go into a split . Ill talk to the guy at bitcoin. I dont know. Some guy you had on the other day named him like hes the known inventor of bitcoin. Guy from japan. You can own slivers, so doesnt matter got it. You know what someone said to me today youve seen the head and shoulders . I dont think hes between head and shoulders. When you talk to people they want to take you back to the underlying technology, whether the growth of it, or transformation of the payments industry in the world over time. Not right away. Thats true. But over the next five, ten years. I this i think thats true. Someone will say youll see multiple Companies Based on this and youll trade them and youll like them. Theyll be real. But short term what do you think happens to the price once futures go live . I think you get more liquid market and they typically cant have these gyrations and if you walked it up these guys can hit it back down. I think the propensity when it starts, not to bid it up after this turmoil weve had and basically whats called an island reverse h goes up by day and gets slammed, and i think the traders move it up then once this thing starts trading futures, they will kabash it. Thank you kaibosh . I dont know. Google it. Wouldnt surprise you to go in half . Back to where it was. You get sellers who can no way you can borrow stuff but you get sellers to come in and suddenly they create bitcoin, so to speak i also think once the futures come in youll see more shenanigans. Kabash and shenanigans, watch it. If you are buying bitcoin, you have to be aware people will be selling waiting to shortage you. I dont know who is going to be on the hook for the short. Right. But it will be really interesting. It will be actually wild west market and well see something orderly occur, but i also know the corner thats biology goeenn and the hedge funds will add. Corner, shenanigan, kabash. So like bunker hunt in silver. I said that yesterday didnt you listen . No i didnt. I did bunker yesterday during my key cross talk. I missed that. You were probably getting your hair done i dont have to worry about it. Well follow this closely on monday. Its going to be every where. Well have to go over this even if Something Big happens in the market this boit coin is all people care about. Meanwhile, wildfires are intensifying in Southern California hundreds of thousands of people have now been told to leave their homes. Our dederoy is live in ventura once again good morning. Reporter good morning carl we have been in this neighborhood for hours still struck by the devastation. This home behind me just turned to rubble. Cars out there just mere shells. The numbers here have really swelled overnight as far as destruction. Want to get you up to speed. Take a live look outside from above. Chopper shot of the thomas fire. The biggest one burning in the state. Circumstance wildfires so far right now burning in california. More than 140,000 acres have been scorched. 500 structures destroyed that number swelled up from 150 yesterday. So thats a big spike. 23,000 homes are threatened. And 190,000 people evacuated now lets go to another chopper shot, because overnight there is another fire down near san diego that just sprung up. This one went from just a few Hundred Acres to 4,000 acres Governor Brown has issued a state of emergency in San Diego County as well as santa barbara. So two additional states of emergency in addition to los angeles and Ventura County one of the big things here is citrus farming and avocado growers. We dont know numbers. But talked to suppliers yesterday and its going to take sometime for them to see what the devastation is there as well we also went to a local business and talked to locals, so much because of business is shut down, impacting there as well, and their staff. They say half their staff has been displaced with the evacuations and with the boil water restrictions theyve had to make some big changes in their kitchen as well. We dont have that rigbusines right now but we do have people coming in that need that so are we making as much money probably not. Reporter but they are say they are okay with that because they want to help out the community. By the way, core logic coming out with some new numbers this morning, saying they believe 86,000 houses might be at risk right now in Southern California and that would be a total reconstruction value of 27 billion so just staggering cost and devastation we are seeing here back to you guys. Dede, thank you it reminds me still tabulating insurance cost frs the Northern California fires earlier this year. Yes i have tri point here which has a big Housing Development in california and this is frightening. My daughter she was in this area where they had spontaneous fires. And even the breathing is incredibly hard. This stuff is, again, having covered, fire is so scary. Its just so scary and who knows where its going to break out this is just incredible to me, these stories. They are incredible. Its bad. Scary well watch it this morning. When we come back this morning as well, elon musk big dare on the race to mark on the race to mars and gary cohn. Take a look at the premarket not a ton of Corporate News but enough to keep us busy on this friday more squawk on the street in ha moment. [ keyboard clacking ] [ click ] [ keyboard clacking ] [ clacking continues ] good questions lead to good answers. Our advisors can help you find both. Talk to one today and see why were bullish on the future. Yours. We are working on that next generation rocket right now with nasa customers called space launch system. Final assembly right now down at ma shuod near new orleans, well conveniently go eventually go to mars. I believe the first person set foot on mars. Thats mad money last night. Got Fortune Magazine attention posted an article titled boeing ceo we are going to beat elon musk to mars half tweeted about the article, musk himself retweeted with a tweet of his own daring boeing to do it this race will be something. It is i was waiting for him to say they have nasa backing, days worth of cash flow from tesla, j go out there and say i am a spartan. And we need 500 spartans to get to mars. Hes adamant hes not taking anyones money i believe he read it in fortune. Because i dont want to grandiose and say he watches mad money. No, he doesnt. Given the fact he thinks im a hole in the gram and simulation as he made it very clear to me. I doubt it watches the simulations money show because he doesnt think there sa mad money show because this is assimilation, thats what he told me directly at dinner. What do you think about mars, do you think we forgot about the third entrance hes the death star, closest star. Space x obviously is musk effort but dont forget i never count out jeff bezos. First man on the sunny. He was incredible. When we come back, well get the bell and gary cohn jobs reform after the opening bell look at the market looks pretty good as we wind up this trading street more squawk on the street straight ahead well, its earnings season once again. Yeah. Lot of Tech Companies are reporting today. And, hows it looking . I dont know. Theres so many opinions out there, its hard to make sense of it all. Well, victor, do you have something for him . Check this out. Td ameritrade aggregates thousands of earnings estimates into a single data point. That way you can keep your eyes on the big picture. Huh. Feel better . Much better. Yeah, me too. Wow, you really did a number on this thing. Sorry about that. Thats alright. I got a box of em. Thousands of opinions. One estimate. The earnings tool from Td Ameritrade. Of emerging markets obsolete . At pgim, we see alpa in the trends, driving specific sectors of out performance. Where a rising middle class powers a booming auto industry. A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Everyday our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, the Global Investment management businesses of prudential. We have nine minutes before we get to an opening bell. Lets get to mad dash with jim as we cap off the week talk a little 3m. I have in my hand genuine home spun papers raising price target for 3m but david he says basically its over basically it got luck, that they got china, auto, electronic all in their favor and those are kind of done and you know what i would say, i would do what elon musk said to me this is assimilation and i love his work. He was right about another industrial. Yes, he was. Why do you believe that because 3m is innovator they have created products they are a company that many of their new products immediately turn into earnings so even if he thinks they cob static, they will reinvent and create new markets, do fabulous things it is amazing. Its not in ga blame guy. The stock doesnt seem to be taking any sort of umbrage. My father worked for 3m you have to go back. Over here when my father worked for 3m its always been a great company. When it was Minnesota Mining and manufacturing t also located in a great city if i get to visit. You are going well, i dont want to jinx it. You just did. I like 3m and visit the company in the first week of february just happen to be there. Awesome oh, is the super took me a while. Told you not to say it. Its a jinx. Story. This report is all yours. Thank you we have the opening bell after this so thats the idea. What do you think . Hate to play devils advocate but. I kind of feel like its a game changer. I wouldnt go that far. Are you there . Hes probably on mute. Yeah. Gary wont like it. Why . Because hes gary. phone ringing what . Keep going yeah. laughs voice on phone its not millennial enough. There are a lot of ways to say no. Thank you so much. Thank you so were doing it. Yes we got a yes start saying yes to your companys best ideas. Let us help with money and knowhow, so you can get business done. American express open. Something we all think about as we head into retirement. Its why Brighthouse Financial is committed to help protect what youve earned and ensure it lasts. Introducing shield annuities, a line of products that allow you to take advantage of growth opportunities. While maintaining a level of protection in down markets. So you can head into retirement with confidence. Talk with your advisor about shield annuities from Brighthouse Financial established by metlife. Squawk on the street live from the opening bell of the world. Live on this friday. A lot to watch including the jobs numbers above 220,000 Congress Managed to get a stop gap to december 22 we can worry a little more about it then. Look, im old enough to remember when you had a job number like this, you would say i cant even look at the box, it would be hideous the bonds trading at a level where if you were goldman, holy cow, 100 million to go one of the reasons why you dont like the bank stocks no volatilely on this its incredible. If you are in fixed Income Department at goldman, its quiet, its like when you are in detention. Remember, when you werent allowed to talk in detention you never got a detention, did you . No. You probably never got in trouble. Not only good number. Japan, gdp revised up to 2. 5 from 1. 4. Look, it hard to ever say its a good time because we are all so conditioned to say but wait a second how about greece, dont forg forg forget that. Its not just u. S. , have exposure to emerging markets. Whats wrong with that . Nothing they are pushing the Global Portfolio which may make sense for people. Do you think gary cohn is going to come on and say things are slow no, hes going to be positive talk about the numbers and talk about tax reform. I think i go through this and keep looking for some number that says its arrived because we are so conditioned. Japan, not china getting a little better. I know its going to collapse. It hasnt collapsed yet. It has not. A lot of people who believe the enormous issuance of debt in that country creating capacity that was not going to be used was going to fuel eventually a bust. Right adding a starbucks, what, every . Its a big starbucks, man. The biggest in the world. Ill tell you thats attem a testimony many a temple of coffee. I want to be critical because we are journal lists or i play at one. I was looking at disability, people wont come back from that, because disability you get pretty good benefits if you are on disability. Right still a lot of people not in the workforce. Medicare. Labor forces, remains 62. 7, no change really. You could easily say thats not right. Let me give you another one, ill ask this to gary, whatever, mr. Cohn, driver less cars, what happens when they come out thats a lot of jobs. Thats an enormous amount of jobs its a while ago, but yeah, a lot of jobs. You see yesterday anheuserbusch ordered some teslas. Yeah, 40 of them. They ordered some. Its real. Oh, it is real. But its a debate about how quickly it really will become. It wont create jobs though no, its not. Its something to tworry about. Yes, it is. Well get to gary cohn in ha moment but first of all the opening bell at the bottom of the screen celebrating listing on the ny s p. A drug to treat parkin sons and als. See if they succeed good work being done on usf on parkinsons, but otherwise l its been stim mied, als, no one has been able to crack the code there. Alzheimers has been tough, but not as though companies dont see a potential market opportunity. Everybody believes its an all time job if you found something to arrest the progression of the disease. But everyone has failed. Yeah, they are still trying to find the mechanism for alzheimers and dementia. Boeing and microsoft will lead the dow to start. We talked about risks, deutsch bank says risks. I think you have to be concerned about a big run. But this is a Promised Land and google is trading 21 times earnings facebook 28 times earnings what im saying its not expensive. They are not what you thought you would be, especially if you are backed out of cash so just not crazy. I think lee coupe man yesterday talking about cisco trading at 100 times. Some absurd amount 17 years ago. And cisco trades below market. Its not bad. So when we look at u. S. Growth flows, the week ended this december 6th, second largest redemption on the record those people making a mistake in your view . Yes, i do i just think there is just a lot to like the market and i think remember ten days ago we gave up on the cloud. How many shows buried fact we gave up on the cloud. A lot of people were selling cloud stocks. That was like one days. It was three days. It was five days. Okay i wont argue with you. You know better than i five days. Just like five days in 2016 where linked blew up and the kind of nasty battle between linked in and micro soft, sasha is first name guy like sher. Sher is one name though do you have any one else madonna. Yeah, sting. How is nvidia oh, my gosh, i had to really let them have it the other day. You id . Yeah, because nvidia is doing things in the house not what you would expect. Thats not good flo, he claims its mr. Bitcoin is doing it. Thats the other one. You need a dog named clorox. Im going to the shelter and im getting a Consumer Products goods dog. You are yeah, ill get clorox. Not an opini pg e . If he gets on the dog ill adapt a cat. Mr. Peltz. We did get a court date. Yeah, march 18 at t will go to court against the government to make the case actually the u. S. Government has to make the case as to why this merger should not be allowed what is interesting or important here is while they got the trial date earlier than the perspective april 22 date, not perspective, the date that both parties could walk away from the transaction, the judge is not going to rule until after that date, so they will need to extend that is expected but i think he said he would rule 60 days after the trial concludes. Well have to cover every minute. Its going to be a big deal. Can we get cameras in the courtroom . I dont know if they allow that. Sketches that look like real people. Really. So we ghetet oryan in thered get sketches. At t side is already thinking if we win would the government try to appeal, which seems hard to imagine. Really . But march 19th. So not that much time. And another key will be depositions and discovery. Do they try to find emails or anything that links the Trump Administration to sort of trying to influence it. Yeah, well talk to the Trump Administration in about 7 seconds. We are. The u. S. Economy did add 220,000 jobs in november the rate remains study all on the back drop of tax reform while Congress Tries to pass it by the end of the year now joining here with gary cohn. Good morning. Tlangs fhanks for having me. This is good number wages are up but not too scary does it feel like a late cycle number to you or is something going to pull this into extra innings . It feels like a good number to us. Well continue to grow jobs. If you look at the Manufacturing Sector thats a sector President Trump cares a lot about. 17 year low in manufacturing of 2. 6 unemployment continuing to drive people back into the labor force but as you point out, we are still not growing wages in this country. We do believe that tax reform will help us drive real wage growth in the United States which is something really important to the administration. We are just not seeing that. No. Wages up 2. 5. Labor costs earlier in the week. When you talk about wage increases, over what time period and on top of that when the president talks about growth going to 4, five or six, is that something you think is in the universe of the possible look, we know that American Workers once this tax bill is passed, theyll start seeing their paychecks change early next year so theyll see a change in withholding tax. Then as the economy continues to grow and we bring more businesses back to america, well create more competition for labor, so well continue to see more wage growth over the next cycle, over the continuation of the next four or five years of this cycle so we think we are in a prolonged period of wage growth starting the beginning of next year, which is something we havent seen for the last eight or ten years, and thats really important to us. Gary, jim, great to have you, always great to have you on our network. Great to see you. Bonds, they are doing nothing. We have one of the greatest employment numbers ever and they are doing nothing. Can you please put that in context . Because you know other times in both of our careers where we would say oh, man is this bad news. Well, jim, i think people are in a position now, where i think they are quite excited about the tax plan and tax reform thats coming the stock market is clearly starting to react to the tax plan starting to digest how thats going to react to corporate earnings and how they are going to grow and put people to work and grow wages and i think they are trying to digest what does that mean for the bond market. What does it mean for debt market and how are businesses going to grow and we are in a relatively benign period here with the fed. Because as you said we havent seen the wage growth we havent seen inflation in the system and people are trying to figure out where is the fed ultimately going to go with rate policy and i think people i think its going to be more of the same rates may tend higher but they will tend higher in a very slow pace. Gary, its david. I wanted to follow up on something you just said. You just said big business will come back to america as a result of the tax cuts sla reform. I understand why we might stem the tide of those wanting to leave in territorial system as well important there but why do you think there is going to be any that actually come back . Well, look, when you look at the competitiveness of america, we are not competitive today we have a 35 worldwide rate when youve got a 20 territorial rate and looking to invest capital, first thing you look at is after tax rate of return we are now going to have an after tax rate of return that competes with the rest of the world and make us competitive again. Not just big business if you look at the nfib numbers this week, optimism in the Small Business in the past through business is all time record highs as well. So Small Businesses are hiring as well because they see the growth in the economy. Right go ahead. But gary to your point we keep asking ceo what would you do with the potential tax benefit. You were at a conference where they asked to raise your hand and very few did we are getting by backs from bank of america. Is that what its going to look like i think youll see a combination of everything. Youll see Capital Investment as well i was at a big meeting with Business Leaders and they were all excited about the opportunity to grow their businesses we are seeing a lot of applications for permits to expand and build business. Look whats going on in l and g businesses and other businesses where you need government permitting we have a huge backlog of permits. When those permits get done, well see an enormous amount of job capital in those areas. I want to talk tax reform and its something weve been talking about a lot which is state and local taxes and lack of deductibility you are from new york area, you would know wealthy people you work with, and i guess the conversation goes like this and i would like to hear what your answer is. Come on, gary, why are my taxes going up its going to be 5 less competitive here the economy of new york or california or new jersey is going to get his dramatically as a result and its not fair because no one else is doing it. Its going from my pocket to corporations so what would you say to those who i would assume have been asking how could you do this to us our job in the federal government is to make the federal tax system as fair as we can make it for everyone in the country. Ive heard the salt argument many timesment and we are concerned about that i was on a phone call this morning, talking about the salt issue, and what the potential salt fixes are there is 70 members of the house from salt states they have to have a solution that allows their residents to come away from this in a position that allows those members to support this. We are cognizant of those issues no one wants to see tax increases. Thats not what we are trying to do we are trying to simplify the system and make it fair for everyone. All right any progress being made there . Anything you want to tell us in terms of your expectations is there willingness to go up to 22 . A lot of progress being made. Big weekend for the conference committee. Spending the weekend working on taxes. And i think well see enormous amount of progress over the weekend. All right gary, i want to talk about regulation there have been so many actual small regulations under repeal that dont make a lot of they dont get in the papers. But what has it meant for the businesses that you talk to . Look, we see Business Optimism at all time record levels Small Business, medium, big business, we see them looking to drive expansion. We see them looking to hire. You see it in the numbers. You see it in the nonfarm payroll records and see it month after month after month. Businesses are growing businesses are hiring. Ceos and Small Business owners alike are putting people to work because the economy is growing and they feel more optimistic about the economy next year. Weve had two consecutive quarters of 3 plus gdp we are tracking this quarter over that. We are going to have consecutive quarters this economy is growing and growing strongly. Gary, a couple of things before we let you go we had Omega Lee Cooper man on yesterday and he said he was at a dinner with the president midjuly where the president asked him twice if he thought amazon was a monopoly. Lee said no. Is the president really curious about that i think the president is curious about lots of different businesses and whats going on economically whats going on competitive in the United States. The president is very inquisitive about lots of Different Things so always asking provocative questions. All right gary, heres a provocative question from me, and this is a little far afield, you were on wall street for a lot of years, ive covered it for over 30. The Sexual Harassment issue which everybody is talking about. Are you surprised or do you expect well zeta bit more coming from your old industry in terms of executives who may be faced with problems . I dont look, i only know about the firm i worked at and i was proud of the record that we had at that firm, and i dont think youll see anything coming out of there and i hope that the industry as a whole manages themselves the way they should have managed them self in the standards that they should hold themselves to. Gary, we have to go bitcoin, what do we think . Yeah. Yeah, up, down, come on there is no way we can have the show without asking is bitcoin real im going to leave that to you. You are the expert. Well get that next time. Your own tenure and a lot more thanks for your time good to see you as always. Okay. Bob is on the floor with the do you up 51. Nice open in fact we have a nice global opening. Let me show you whats going on overseas good day for all of these. Fg is going up whats going on . We have good numbers good numbers every where remember this Global Economic expansion. This is what it looks like japan gdp revised up put the full screen up china trade better than expected we had Europe Brexit talks advancing. So thats stronger and u. S. Good strong numbers and passed the house and senate. So over all good things happening. If you look at the sectors, all the ones moving around are on the generally on the upside. Banks turned negative. Telecom fractionally positive. Everyone is talking about bitcoin, we have futures this sunday so heres whats important three monthly contracts initially. And my guess it will probably january, february, march, and start trading on sunday and people will start trading, guessing the praises where they will settle. Cash settle. Most important part of it because you dont need to own bitcoin to actually trade. And youll be able to short t youll be doing it in dollars here a lot of questions and we dont have a lot of questions for bitcoin right now. First of all who are the sellers out there . Bitcoin obviously, but there has to be hedgers. Who is the Market Makers there has been comments about who they might be, but seems to be a fairly small group. And the firms, who is participating . We already see jc morgan and other big firms they wont clear trades which means they wont allow trading. Some of the Online Brokers like schwab and mer trade limited liquidity and trading on monday. Big issue over all, will it reduce volatilely . Nobody knows they tend to do it thats historic, we dont know if thats going ta happen right here the big question who is regulating bitcoin. This is why its become so confusing. We know they are regulating futures contract but bitcoin cash is unregulated and thats a problem and scc has said that when they denied bitcoin etf i dont believe, its not clear whether theyll say you can have it because future contracts. Unregulatesed bitcoin cash is an issue out there. And all the intermediates people who ownle wallets thats a gray area so we dont know how this will play out and how more regulated the whole area will be remember, the whole idea about bitcoin is it unregulated. Thats the underlying ethos. This is going to be fascinating voyage well be here chronicling the whole thing. Right now the dow is up 46 points. Thank you lets get to the bonds Rick Santelli. Good morning, rick. Good morning. So many fascinating things a lined here look at the board and see 236 yield on 10s that also happened to be where they closed yesterday and last friday. You look at the board and see 276 and 30 where they closed yesterday and last friday. Go into the year end big numbers are in the Rearview Mirror now its numerology and many think horsepower that could be the biggest variable for part of the curve and whats going on in europe the rest of the curve plenty of volatilely on the numbers you see on the right side but nice elevated as i reference we came off the low 230s yesterday. Now if you look at early november chart of the long end, its fascinating, even though unchanged, you see the drift to it 30 year has been a bit spongy probably because highest yield to International Purchases but heres one nice thing, you would think you would want to put a 30 year chart or ten year chart sorry with boones. But what actually tracks way better is 30s in boones as you see on the chart starting in december a lot of people op the chart looking at that. If we switch gears and look at the shortened in europe, look april 1 to the two year note in europe known as the shot, it is getting very close to take enout all the levels post april. Now thats something you want to watch going into the year end. And, finally, thedollar in decks. This chart from october really looks as though the dollar index is right back quite quickly to very significant level at 94 even lets see how how it closed rele to that for the week carl, david, jim, back to you. All right, rick well talk to you in a few moments. Rick santelli. When we return, more on bitcoins record run well talk to a ceo whose provider works with bitcoin. Well be back after a short break. The moment a fish is pulled out from the water, its a race against time. And keeping it in the right conditions is the best way to get that fish to your plate safely. Bacteria can multiply to high enough levels that even cooking it will not destroy all of them. Its definitely the most important thing in my business. How fresh is the fish . Where it comes from . How it gets here. The more i know, the better. Sometimes the product arrives and the cold chain has been interrupted, and we need to be able to identify where in the cold chain that occurred. We took our world Class Network and we developed devices to track environmental conditions. This device allows people to understand whats happening not only with the location of that asset, but also if its too hot, if its too cold, if its been dropped. Its completely unique. We ship fish, beef, poultry, vaccines, insulin. This is about monitoring and protecting everything we ship. I catch all this amazing, beautiful fish and then once its out of my hands, i have no control over what happens to it. If you have a sensor that can keep track of your product, it keeps everybody kind of honest that way. Its really all about the network. You are looking at trillions of transactions a year. Not too Many Companies in the world can even scale to that type of volume. Who knew a tiny sensor could help keep the food chain safe . Food has to be fresh. Its that simple. Jobs number comes in pretty nicely, and pretty good breadth to start this friday morning a look at the heed map dow up5 4points led by microsoft and boeing back in a moment keyboard clacking ] [ mouse clicks, keyboard clacking ] [ mouse clicking ] [ keyboard clacking ] [ mouse clicking ] [ keyboard clacking ] good questions lead to good answers. Our advisors can help you find both. Talk to one today and see why were bullish on the future. Yours. Jim, whats on mad tonight . The answer from gary about this weekend, talking about state and local taxes. I think it matters tremendously because this is a housing company, and they have california, plus, of course, we have to sadly ask about the fires. Wow. The weeks over. Who do the birds face man, we got the rams. Ooh, good game. I know. Goff that will be a good game. Gurley, on the road, but you know what. Avis is out of cars. Why . Because so many eagle fans have traveled youre going to see more eagle fans in the fans than youll see rams fans thats going to change the dynamic and youre going to want to take these. Good luck, jim. See you monday when we come back, more on jobs, bitcoin, and the markets dow up 54. Oh, not so fast, carl. Oh no. Schwab, again . Index investing for that low . Thats three times less than fidelity. And four times less than vanguard. Whats next, no minimums . No minimums. Schwab has lowered the cost of investing again. Introducing the lowest cost index funds in the industry with no minimums. I bet theyre calling about the schwab news. Schwab. A modern approach to wealth management. Upeace of mind. S we had a power outage for five days total. We lost a lot of food. We actually filed a claim with usaa to replace that spoiled food. And we really appreciated that. Were the webber family and we are usaa members for life. Right in the heart of the was in his financial crisis, and saw his portfolio drop by double digits. It really scared him out of the markets. His advisor ran the numbers and showed that he wouldnt be able to retire until he was 68. The client realized, i need to get back into the markets i need to get back on track with my plan. The Financial Advisor was able to work with this client. Hes now on track to retire when hes 65. Having someone coach you through it is really the value of a Financial Advisor. Win an uncertain world . K predictable income pgim sees alpha in real assets. Like agriculture to feed the world. And energy to fuel its growth. Real estate such as ecommerce warehouses. And private debt to finance transportation and infrastructure. Building blocks of strategies to pursue consistent returns over time from over 120 billion dollars in real assets. Partner with pgim. The Global Investment management businesses of prudential. Good friday morning. Welcome back to squawk on the street. Im Carl Quintanilla with melissa lee. David faber at post nine of the Stock Exchange sara eisen is off. Lets get to Rick Santelli so boy, we have big data points out university of michigan, of course, this is the december preliminary number and its pretty good but its certainly well less than expected. Were looking for a number close to 100, actually maybe in the camp of 99. We end up with 96. 8. 96. 8 now, this is preliminary, and there could be big changes with final, but even sequentially, its a back away from 98. 5 lets look at the other data out today, a little older, but still fresh. October inventories down. 5 in october trade or sales, up. 7. Inventory down, sales up inventory down makes people nervous because it has implications for downgrading gdp. I happen to understand that, but when i look at up. 7 with regard to sales, i see maybe were moving the inventory as well, so i dont look at it as necessarily a bad pairing. We do see yields creeping up just a little bit. We want to pay close attention to that dollar index, trading near a critical level at 94. Carl, back to you. All right, rick, thank you. Rick santelli in chicago lets get to our road map this morning begins with the jobs numbers, sending stocks up. Got key details from the report and analysis and kicking the can congress pushing off a Government Shutdown for now as it works towards negotiating a tax bill well go live to washington. And bitcoins wildest ride yet. A look at the price exchanges where you can trade it, plus, well speak to the ceo of a firm fighting fraud in crypto currency it was a good jobs number for the month of november. The economy added 228,000 jobs Unemployment Rate holds steady at 4. 1 , the lowest since 2000 Steve Liesman has been digging through the numbers and joins us this is getting to be routine. Economists suggest the job market should slow the job market keeps surprising to the upside. 228 to the upside versus an estimate of 195. Average Hourly Earnings disappointing, incomes will be up Unemployment Rate unchanged and Labor Force Participation rate unchanged. Not getting too many new into the workforce. At pantheon, theyll saying this will push the Unemployment Rate below 4 very soon, and hfe says its more than Strong Enough for the fed to follow through with another rate hike. Manufacturing has been very strong for quite a while now construction as well, leisure, hospitality and information was the only big negative, which tells you a lot of sectors, the job growth was broad based i want to drill down into the Holiday Hiring sectors and what it might tell us about the Christmas Shopping season. Heres what we did we added up the three main sectors for Holiday Hiring for october, november and compare them to last year on a not seasonably adjusted basis. 700,000 employs last year in these three sectors. 806,000 this year. So more, and mostly, this was in the retail sector. So more retail workers or holiday related hiring going on this year. Stronger Holiday Hiring, its a sign that business confidence, there will be strong sales this season well see it shoppers show up to keep the workers busy. That remains an outstanding question steve, thanks. Stocks obviously a rally on the upbeat jobs number a few moments ago, we talked to gary cohn in a first on cnbc interview, and despite that increase in nonforeign payrolls, he pointed to a concerning number in the data which is wages. Well still not growing wages in this country. We do believe that tax reform will help us drive real wage growth in the United States. Which is something really important to the administration. Joining us this morning, david kelly, jp morgans chief global strategist, diane swonk happy friday, guys good to see you both diane, how long can this sluggishness in wages last given the growth were seeing . Well, it certainly is disappointing. One of the things that we have been looking at is the numbers are going to get harder as we move into the next couple months on yearover year wage gains. This is something that will hang with us as we move into the early part of the year even though the composition of jobs were in sectors that typically have higher wages like professional hires, manufacturing, the kinds of jobs they actually hires were not higher wages almost all the professional hires were in admin, support staff, where i have been talking to many, many Employment Companies who provide for those kinds of jobs, employers are absolutely unwilling to raise wages for that support staff despite 60 turnover rates on new hires. On the Manufacturing Sector, we often forget, and this gets lost in translation, is even though theres high wage jobs in the Manufacturing Sector like in the auto sector, also, a lot of the Manufacturing Sector jobs occur outside of the auto sector this month, and many of those jobs are actually minimum wage manufacturing jobs, a very lowwage manufacturing jobs. This really gets to a real Sticking Point going forward, when are we really going to start treating employees like theyre scarce we still see employers acting as if they can skim the cream from the top and get who they want even though turnover rates are high will tax reform, david, create upward pressure on wages . And why do the markets not seem to care that theres an absence of wage growth here in the economy . First, its important to distinguish between the impact of tax reform on the markets, which is actually pretty positive because the Corporate Tax cut is the biggest part of it, and on the economy, where its not nearly as clear i think with wages, its not a sign of weakness whats really going on is, it reminds me of the heating system in my house, which is very inefficient. Its boiling down in the boiler room you could poich an egg in the boiler room. By the time you get to the attic or even the bedrooms its frosty. Whats happening is you have heat pushing up asset prices across the board, its not just reaching wages so defenseless in this economy, they cant get a wage increase businesses are determined to hold cost down they dont see a fast growing economy. So i dont think theres any amount of pressure you can put on this economy thats going to generate really strong wage growth we have to look at asset prices because thats what we could do wrong here if we overheat asset prices in trying to push up rages, we could mess up this economy you dont think there is any pressure we can put on the economy to increase wages. Its real worldwide phenomenon also in germany businesses will not push up wages. Diane, go ahead i actually, it is a global phenomenon its something youre going to see echoed as chair yellen does her next press Conference Last Week she will get kudos for the fact she moved from crisis era to unwinding those crisis era policies by raising rates and backing off the Balance Sheet. But she is one that has been extremely compassionate and concerned about the inability to raise wages and to reengage many of those workers who are still on the sidelines we still have low participation rates for prime age workers, particularly white men and were seeing prime age women not participating as we would like to see them participate in the labor force. We really have lost a muscle memory among employers and their willingness, to, as i said, skim the cream off the top. They need to start working hard and churning this milk into butter that means investing in employees and theyre not about to do it at this moment. To the degree lower Corporate Taxes or repatriated earnings are a driver of the heating system, is it going to flow toward buybacks and dividend hikes . Remember, if you move to territorial system, and i approve of that, it makes it cheaper to invest overseas and were not bringing them back, and you know, the companies are repatriating the earnings, they didnt have problem raising money in the u. S. So you need a different structural view of the economy to that the economy is going to grow faster, and you need to focus on growing revenues rather than holding down costs. I dont see that change occurring in this economy right now. We had gary cohn on earlier, and i asked him about, because he contends tax reform will bring businesses back to the United States. I just heard david saying doubtful you know, i. P. , for example, is overseas in these low tax jurisdictions. Theyre not going to bring that back here. Do you think businesses are going to come back you know, i dont think were going to see the massive businesses come back that people would like i think there are good things in the tax reform i think there are some very bad things we need to work out in the current tax packages but the bottom line is, if theres a Silver Bullet to have shot, we would have shot it, and theres nothing loaded to shoot it now i think david is right there are some real structural problems there are things we could do to invest in education, to invest in Human Capital and incent more investment in Human Capital. Thats not even being discussed on the hill at this moment in time given the jobs report, diane, and given the potential for tax reform here, whats your outlook in terms of what the fed does . Does that keep them at bay for longer in terms of the jobs report its sort of a pushpull here. It is i think they are going tado their third rate hike next week. I think thats a done deal they have at least three next year as well whether or not we get to the fourth rate hike will depend on if we can move through the transition of really employers treating workers as if theyre scarce and not plentiful, and thats where the uncertainty is. I think well get there by the end of the year, but thats still a long way away. One last point on the productivity number we got our friend David Rosenberg said if you were going to take this cycle into extra innings, thats a really good way to do it will it be well, we have seen some improvement, but its not huge i mean, were still basically much lower productivity that wean have seen in the past 50 years and the problem is we need more investments in Human Capital, also in physical capital, but again, the very forces that are stopping businesses from raising wages are also making them a little bit more leery about doing huge investments, and its unfortunate. We just need a more positive attitude in terms of businesses if were ever going to see more capital spending, more productivity and higher wage growth finally, your view for the overall market as we head into next year. Its still pretty good because its very hard to get out of this market the exit door is basically blocked. You dont want to pay big capital gains. What are you going to jump into with rates this low . So money keeps funneling into the market i do think were building bubbles, but they could get bigger if theres an infrastructure plan unveiled in february, could that be more fuel to the fire . It could be we have a supply side problem, but we keep on piling on demand. We have a lot more payback in productivity with infrastructure, but im not holding my breath. Guys, have a good weekend thanks for joining us today. Diane swonk and david kelly. The uk has reached a deal with the european union. Yes, the uk has reached a first stage agreement with the eu on the crucial issues of divorce payment, citizens rights, and the irish border this will allow negotiations to move on to forward looking trade arrangements, something the uk has long since sought. The estimated divorce settlement of 35 to 50 billion pounds is lower, but it has bothered some like nigel farage. However, importantly, key leave members of the cabinet such as michael gove and Boris Johnson have come out loudly in support of the ministers achievement. The pound initially rallied and has pulled back since investors have focused on the vague arrangements which shows nothing is finalized yet elsewhere in europe, banks are soaring as the regulatory process was completed last night. Banks are moving higher, largely because of the clarity this brings for both banks and investors along with a long fiveyear implementation window which doesnt start until 2022 the detail also could have been worse with demands for the capital bill only small. Many also framing this as the end of the regulatory pendulum swing against banks in europe even if it doesnt quite represent a move toward deregulation as is starting to emerge in the u. S. Wilfred, thanks for that. Now to that developing story in California Wildfires have burned nearly 200,000 acres across the southern part of the state at one point, winds up to 60 Miles Per Hour were spreading the flames at roughly an acre per second three people were injured in a new flareup about 45 miles north of san diego the extent of the injuries hasnt been released more than 200,000 people in los angeles and ventura counties have been told to leave their homes. Well continue to monitor this and bring you any updates as they happen. When we come back, its that media mega deal, disney continuing talks with 21st century fox. What the deal would mean for the industry jim stewart is with us and later, bitcoins wildest ride yet 40 in 40 hours, smashing through five separate thousand dollar barriers. Of course, down a bit today. Quk t see wl be right back running. But some people still like cable. Just like some people like wet grocery bags. Getting a bad haircut. Overcrowded trains. Turnstiles that dont turn. And spilling coffee on themselves. But for everyone else, theres directv. For 1 rated Customer Satisfaction over cable, switch to directv. And for a limited time get a 100 reward card. Call 1800directv a wealth of information. A wealth of perspective. A wealth of opportunities. Thats the clarity you get from fidelity wealth management. Straightforward advice, tailored recommendations, taxefficient investing strategies, and a dedicated advisor to help you grow and protect your wealth. Fidelity wealth management. Disneys talks with 21st century fox continue, as we have been reporting all week. The likelihood or a potential likelihood of a deal coming as soon as lets call it the latter part of next week. This is Big Media Companies continue to experience the sea change in addressing and dealing with the fallout of Sexual Harassment across that industry. Both subjects the focus of our next guests column titled a departure with implications for investors. Disneys John Lasseter joining us now for more, Pulitzer Prize winner jim stewart. Laster, the man behind pixar Sexual Harassment every day. Every day. There might as well be a page with that title in whatever your paper is that you want to read with the ladest implications i wish we could round everybody up at once, put the spotlight on it, sweep them out, and move on, but thats not going to happen. I havent written about the subject because i didnt think it was really a business story exactly, although much of it in is in the workplace, but when i heard about the lasseter departure, i said whoa, this is kind of in a different category here because i think its really hes not a household name, maybe, but having run pixar and brought disney animation back from basically near death, his importance there is tremendous and theres the Studio Division, you know, last year brought in a little over 10 billion in revenue, which is a big number, but the animation, its the origin of the country, the heart of the company, the source of the toys, the rides, the getting the children into the disney brand. And his ability to churn out really a remarkable series about standing high quality films is tremendous again, i should stress, hes only on a sixmonth sabbatical at this point, but everyone i talked to said well see that does not mean for sure hes coming back. An excessive hugger, i thought. Thats what sort of you know, these stories, i talked to a lot of people who have, you know, been with him over the years and its i mean, i wasnt there so i cant really say what it is, but i mean, these hugs apparently, i use the word bear hug. Maybe bear hug doesnt quite convey it. They went on for a long time and you know, there were other things and then, you know, a lot of drinking thats another, in the media, in hollywood, sure, in other industries as well, andee have all experienced that, there are parties and the opening and the party after that and the retreat and the parties and the dinners and the cocktails. Theres a lot of drinking that goes on. So in terms of the sixmonth sabbatical when will be see the impact on the pipeline of animated films will we see that, do you think not if he comes back after six months they have no animated releases scheduled in the next six months i think the next big film is incredibles 2 and thats pretty much these things take maybe four to five years and so thats basically done hes already put his stamp on the stuff thats in development there. So given the long timeframe, i dont think six months is anything in particular to worry about. If its more than six months, if it looks like hes never coming back, then i think thats something investors should really take a hard look at the situation would arguably be worse if it werent for marvel and lucas film and maybe fox one day. Right . Pixar is overallinfluence is diluted somewhat yes, thats true. I mean, Disney Studio itself, you could argue, is actually now maybe surpassed pixar, especially with the frozen franchise. Thats the biggest grossing animated film in history but you know, disney is struggling with a decline in overall revenues mostly out of the cable division, espn the animation, that Studio Division has been really, really doing well if you start to see revenues slipping there, coupled with the other areas that, you know, are struggling at the moment, then youve got to say this is a company that in some way is in decline in all of its major areas, not theme parks as far as i know, but there is going to be a curve as they invest in this new over the top product before we start to see if thats really working and if the revenue starts going up. Again, animation is very important to that disney channel. Jim, i was surprised to hear you say you wondered whether Sexual Harassment is a business issue. Its squarely a business issue now. It is and im curious as to your expectations, forget media it would seem to me we have yet to sort of begin to hear in other businesses where its going to have an impact. I should clarify. Of course, its a business story. Its a work place story, a Business Culture story what i mean is it hasnt so much been an investor issue, in moving stocks. I guess thats what i meant to say. I have no idea where this is going to end i mean, i hear theres a pipeline of stories, you know, that are coming. And some do involve prominent people in the world of business and economics. At this point, i have been so flabbergasted by some of the names in highprofile media people many of whom i know and have known over the years so at this point, i say all bets are off. I just wouldnt want to speculate. But i doubt if its over and finally, tax reform always have to get an update from you have you figured out what youre going to pay more now with the lack of a sau. A. L. T. Deduction,w had gary cohn earlier indicating theres a willingness to discuss it and make progress in conference have i told you im changing my name . James p. Stewart l. L. C i havent started working yet to see, but if this thing all goes through and this is done, look, i have done my best to argue what i think is the best tax reform if this is what we get, im going to start looking, how can we all take advantage of it . If thats the law, then lets do it but i was i was i wont say amused, but i was struck that trump was apparently here in new york the other night with a bunch of his big wealthy real estate schwartzmans house after all they have gotten in this tax code, they are still lobbying for more. I mean, i guess until, you know, the closing bell sounds, they are going to beat trying to get more and i just thought, oh, my you know, i cant believe they arent just like licking their chops with what they already got. Jim, a lot more to come on all sorts of different stories well hear from you on them. Thank you. Sure. Jim stewart want to get back to wilfred frost who has an update on jamie dimonds views of bitcoin. Yes, indeed a quick reminder on the 12th of september, jamie dimond called bitcoin a fraud, just a month later, he said if youre stupid enough to buy it, youll pay the price one day. I caught up with him briefly last night, pushing him for a statement. He said, look, everybody has a personal opinion about bitcoin i remain highly skeptical as it. As i said previously, im open minded to uses of cryptocurrencies if properly controlled and regulates if theres a slight softening of his position, it is toward cryptokecurrencies that he says he hes open minded, not bitcoin specifically back on september 12th when he called it a fraud, he did say it could hit as much as 100,000 before it eventually collapses were not there yet. Guys all right, wilfred frost. When we come back, kicking the can. Congress stalling a Government Shutdown as they work towards negotiating a tax reform before the end of the year. And getting a quick check on stocks higher on the back of a good solid jobs report. Dow up 34 points ghonhetrtilbe wl rit back stay with us ds, accumulations up to 8 inches. Dont know if you can hear me, but [monica] whats he doing . [lance] can we get a shot of this cold front, right here. Winter has arrived. Whooo hahaha [vo] progress is an unstoppable force. Brace yourself for the season of audi sales event. Audi will cover your first months lease payment on select models during the season of audi sales event. And the wolf huffed like you do sometimes, grandpa . Well, when you have copd, it can be hard to breathe. It can be hard to get air out, which can make it hard to get air in. So i talked to my doctor. She said. Symbicort could help you breathe better, starting within 5 minutes. Symbicort doesnt replace a rescue inhaler for sudden symptoms. Symbicort helps provide significant improvement of your lung function. Symbicort is for copd, including chronic bronchitis and emphysema. It should not be taken more than twice a day. Symbicort contains formoterol. Medicines like formoterol increase the risk of death from asthma problems. Symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. You should tell your doctor if you have a heart condition or high Blood Pressure before taking it. Symbicort could mean a day with better breathing. Watch out, piggies child giggles symbicort. Breathe better starting within 5 minutes. Get symbicort free for up to one year. Visit saveonsymbicort. Com today to learn more. Mary had a little lamb whose fleece was white as snow. But after an electrical fire from faulty wiring, marys vintage clothing and designer shoe collection were ruined. Luckily, the Geico Insurance agency had recently helped mary with renters insurance, and she got a totally fab replacement wardrobe at bloomingdales. Mary was inspired to start her own fashion line, exclusively for little lambs. Visit geico. Com and see how affordable renters insurance can be. Welcome back to squawk on the street. News out of Capitol Hill Congress passing a twoweek spending bill that averts a Government Shutdown for now. Kayla tausche joins us from washington with more kayla. The short term measure expires in two weeks, at which point gop leaders are expected to put together another shortterm spending deal this would fund defense through september and Everything Else through january. A Shutdown Scenario looms if leadership cant get two key groups onboard democrats who say such a deal is a nonstarter, the House Freedom caucus who wants more cuts to nondefense spending mark meadows told cnbc some members bit their tongue for tax reform this time, but they want changes the next goround. Were going to focus on tax reform, get that done in the next week to ten days. So this shortterm continuing resolution will provide government funding and hopefully come back to do a longterm funding for our military and do it in a way that conservatives can be happy with the fiscal restraints that we placeon an out of control Government Spending program yesterday, the president hosted top leaders from both parties, discussing north korea, lifting caps on defense spending, and immigration. Gop aides say they dont expect any action to be taken on the daca program until early next year and a white house statement said the president supports delinking that fight from funding the government but to fund the government, democratic votes are needed in the senate, and the statement from chuck and nancy said, quote, Nothing Specific has been agreed to. But discussions continue well see where we get in two weeks. Its going to be dramatic time as we get closer to the 22nd thank you so much. Busy week onyour beat as well. Lets get over to sue herera and get a news update. Good morning, everyone. Heres whats happening. We begin in paris with secretary of state Rex Tillerson is speaking alongside the French Foreign minister, commenting again on President Trumps decision to name jerusalem as the capital of israel. And moving the u. S. Embassy there. The president indicated in his statement that his decision to recognize jerusalem as the capital of israel and his direction to the state department to begin the process of moving the embassy did not indicate any final status for jerusalem. There is still reaction to that decision. Israeli soldiers shot dead a palestinian man near the gaza border as thousands of hamas and Islamic Jihad supporters demonstrated in the gaza strip, condemning the Jerusalem Decision they burnt photos of trump and israeli Prime Minister benjamin netanyahu. Walmart is making a lastminute holiday push the retailer announcing it will put more items on its website for sameday pickup. This as it sees demand for sameday orders doubling in the final two weeks of the Holiday Shopping season. Thats the news update at this hour im so far behind on my Holiday Shopping carl, back to you. Youll get there, sue i have no doubt. I dont know. When we come back, jamie dimond continuing to call for bitcoin regulation this morning. Well going to talk to the ceo of a tech Company Already fighting that fight, trying to keep the cryptocurrency safe dow is up 48 well be right back. Whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade map on exchanges like coin based bit stamp and others dom chu joins us with a look at the difference in the bitcoin, the price discrepancy around the world is tremendous. There is. The reason why is theres no centralized trading or true consolidated tape that records all of those transactions in bitcoin across all of the different exchanges. Thats unlike the stock market that we deal with every day where if a share of ibm trades, no matter where it trades, it goes to one place. Now, just for reference, yesterday, we saw one Bitcoin Trading platform called coin base show prices above the 19,000 mark. If you look at coin desks average high, it shows around the 17,100 dollar mark coin bases platform shoulders a lot of that volume its based in San Francisco. Popular among traders here based in the u. S prices of bitcoin on coinbase have been higher than other exchanges, at least in other days well see if that continues. Another San Francisco based exchange is that cracken that you mentioned, which is one of the bigger volume exchanges when it comes to bitcoin for euro or bitcoin for canadian dollar, and then ukbased bitstamp that trades a lot of other cryptocurrencies each platform does have its own nuances, and by the way, guys, just forget everything you have heard about the anonymity aspect, at least when it comes to trading bitcoins and other currencies, the crypto currencies those platforms exchanges that most industry participants consider to be more established, theyre going to do a lot of know your customer digging around accounts will need in a lot of cases your name, address, Bank Information sometimes, and some even want photo i. D. Copies and proof of residency and may require Social Security numbers if youre doing a lot of trading. If you take a look at the way things are shaping up, lots of exchanges, lots of prices. Want to know whats going on before you get neck deep in some of these tradings. Back over to you and there are a lot of people who want to get neck deep right now. Dom chu back in the newsroom bitcoin has acquired some skeptics jamie david calling it a fraud earlier this year, and tolding wilfred frost, i remain skeptical of it, but im open minded to uses of cryptocurrencies if properly controlled and regulated joining us is a chain analysis ceo, a company that makes software to fit bitcoin fraud and illegal activity thank you that is one of the knocks on bitcoin that skeptics have its used for illegal purposes so what does your company do and how do you track this down so, essentially, the bitcoin block chain or any block chain, one of the features is you have huge transparencies. You can see all the transactions moving around. What we have, the best look at the block chain. We know who is who on the block chain. Every time you see a cryptic transaction, we know whos behind it, and thats the case for the vast majority of the transactions it means that if youre a regulated exchange and you receive money as a bitcoin payment, you can use our software and figure out where did it originate from. Lets say someone approached you and wanted to sell bitcoin on your exchange. You dont want them to originate from a terrorist financing scheme or a dark net market where they just sell drugs or child abuse material we can kind of help you with that and insure thats not the case to what degree has demand for bitcoin so far been about anonymity, not transparency . I think anonymity has been a lot of the story in the early days and the movement that came from that. That was a lot of story around bitcoin. At the same time, the transparency and the reaction, its a reaction towards banks and what happened with the financial crisis and so on and definitely a call for transparen transparency while we know what happens in the economy of the world and so on you software is used specifically for bitcoin transaction . I thought criminals these days, forget bitcoin, theyre on monero now bitcoin is so old for them a lot of different currencies monero is one of them. We dont see a huge problem there either or ether. Ether has been used, you see that on phishing schemes, especially with ether. Roughly 10 of all funds disappeared through phishing and other exploits thats one of the concerns, of course we do trace ether and bitcoin cash we look at other currencies, but we use those that are relevant what are your expectations in terms of how regulation will advance for bitcoin and these other cryptocurrencies i think part of our company is also based out of europe. What we see in europe and the european markets, a huge lack of regulation there in u. S. , very early on, they issued guidance saying the mission. All the nominal rules apply. If you do exchange, you need to report activity. So this is nonexistent in europe so far in europe, theres not any cases reported by banks or exchanges because they have nowhere to report it to. We are part of a lobbying group to help that to happen because otherwise, it becomes like the wild west even more than it is other places thats also happening in japan and india, where we see regulation picking up. In the u. S. , thats reasonable, simply because you have rules in place already for that, for other currencies you also did an analysis on how many bitcoins have been lost forever . This is the essential thesis, theres limited supply and potentially infinite demand for this 21 million is the number of bitcoin that could be mined in total by 2014. You found 2. 8 to 3. 9 million have been lost forever yeah, thats correct. And i think thats really pointing to the fact when theyre lost, its lost. Like gold converted into lead. Theyre gone i think thats an important part of the thesis. Sometimes we feel things a lot, but you cant find them. You can go deep in the ocean and pick up gold from a lost ship. Here, theyre lost theyre gone forever that means it is actually in that sense, its similar to gold if theyre not there, theyre not there. Can you give our viewers a sense in the short term, what monday, what next week could look like, how the world changes once groups like the cbo jump in as i see it, a lot of things already happen now, so what we see in the markets is they react because they think it will happen that means expectation is it will happen so everything we see today with prices and yesterday and so on is kind of a reaction to the expectation of things happening there. I think were not going to see crazy movements as we saw this week next week, but again, all these things are hard to say so typically, we say in a weekend like this and neck week, high volatility will be expected do you think the price of bitcoin this week went bonkers because of the oncoming launch of futures if thats the thesis, is there another thesis to be put out there that you should buy ethereum because once they start to launch ethereum futures, those prices will skyrocket . You could argue that, but its hard to say if the same thing will apply the first time your new thing is launched, it becomes extremely important for the reaction of the market next time, so lets say the next future being launched, probably not see a big reaction there michael, thanks for joining us. As we go to break, take a look at shares of Western Digital today. Reportedly dropping its effort to block the sale of toshibas memory chip Business Companies have been locked in that dispute since the 18 billion deal was struck in september. Stocks at this hour holding on to a moderate gain dow up 56 points quk t see wl ten. Sawonhetrtil continue in a moment for your heart. Your joints. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. What is Deutsche Bank calling one of the biggest risks to the market in 2018 . Find out at tradingnation. Cnbc. Com more squawk on the street coming up. A wealth of information. A wealth of perspective. A wealth of opportunities. Thats the clarity you get from fidelity wealth management. Straightforward advice, tailored recommendations, taxefficient investing strategies, and a dedicated advisor to help you grow and protect your wealth. Fidelity wealth management. Good morning, rick good morning, carl. We had a lot of important data today. This is the last month of the year, and a lot of things were going to see are the last, meaning this is the last big jobs report of the year, and of course, were going to have the last big event of the year probably next week in the form of the fed meeting but lets start at the top todays data, 228,000. Pretty good. In my opinion, once again. If you look at ed lazears oped in the wall street journal, well have him on next week, we continually go jobs at a rate when compared to a population growth that is impressive. All day we talked about, especially this morning, seasonably adjusted data and many times traders looking for an enl may look at nonseasonably adjusted data. I definitely cherry pick, meaning i picked what i thought was glaring, but nonseasonably adjusted data was more impressive than the seasonally adjusted data. We wont even go into the abnormalities and the heart lift to get them correct. If you look at the establishment survey, as i said, nonseasonably adjusted, these numbers were strong private, up 420,000. Retail, up 451,000 these are good numbers i understand that many of you just want to look at whatever is normal to look at in the form of seasonal adjustment, but to see it paired up with this kind of strength on the other side of the ledger, to me, is impressive all right, now lets go to that fed meeting next week. You know, back before gps, if i used to get lost when i was traveling somewhere, i was one of those people who would be reticent to stop and ask for directions i would just stay on course. I dont mean this in any disrespectful way, but whether it was the handoff from ben bernanke to janet yellen or from janet yellen to jay powell, there should be no question of next weeks quarter point tightening i think like ben bernanke, that janet yellen will be more prone to do what shes been talking about and give jay powell actually more latitude by doing the tightening next week, it gives himmore latitud to evaluate, does he want to do two, three, four next year, and thats a very good way to go and finally, michigan data today. You know, i released it this morning at 10 00 eastern and it was a little bit of a disappointment we were looking for a number at 99 if you go back a couple numbers, we had a number over 100 i put a chart starting in 2004 for you to take one final look at even though we backed away on a lot of those big numbers that pop after the election and into 2017, that chart clearly shows even though the number in a microsense was less than we were looking for, when you take things in the grand scheme, were still at super lofty levels as far as data goes, we can have debates on a lot of things and a lot of things become politicized. I have to say, i scrutinize data as hard as anybody, and its rather impressive. Its not spectacular, but rather impressive back to you. Rick, thank you so much the president a few moments ago tweeting about wells farco, writing, fines and penalties against Wells Fargo Bank for their bad acts will not be dropped, as has incretly been reported but will be pursued, and if anything, substantially increased. I will cut regs but make penalty said severe when caught cheating there had been some report that Mick Mulvaney over at cfpb was reviewing the tens of millions of dollars of potential penalties and sanctions over alleged mortgage lending abuses. Wells dpargo which is still in the green today. Up 6 for the week. A pretty good week for financials overall, so the fear of these penalties being substantially increased, as President Trump has mentioned in that tweet, outweighed by the prospect of further lighter regulatory tax as well as the steepening yield curve even in yesterdays session, we saw the yield curve steepen at 1 00 when there was news of the infrastructure plan to be announced in january which we never had time to get to with cohn this morning. Maybe next time. We could go a lot longer with gary cohn. We did get interesting comments this morning when we come back here, leon cooperman revealing the details of a private conversation he had with the president , and why mr. Trump is asking around about amazon k t see wl tilbe back after this. Leon cooperman talked to scott whop napner yesterday. He said during a dinner with the president , he asked about Amazon Amazon is a Class Company that is gaining strength they outexecuted everybody. The major risk to amazon, i guess i can say this with ten other people at dinner, i was hosted by the president and the white house in midjuly, twice he asked me if i thought amazon was a monopoly the president asked you yes i said, no, i dont think it was. We talked with gary cohn about the president s interest in amazon in the last hour heres what he told us i think the president s curious about lots of different businesses and whats going on economically and competitively in the United States the president is very inquisitive about lots of Different Things hes always asking provocative questions. Just to put that into context, back in july the president accused the washington post, which amazons ceo jeff bay soezos owo being a lobbyist weapon against congress to keep politicians from looking into amazon notax monopoly certainly you could make an argument about market power overall or growing dominance in certain areas, but politics plays a role in this, the same way theres certainly going to continue to be questions as to whether the department of justice acted to block time warners purchase by at t as a result of the president s lack of love for cnn. And now we dont know whether thats the case. Its been denied by mr. Delrahim those the president made Public Comments about it. It could be made part of the case and then one wonders if amazon would be able do other deals along the lines of buying a whole foods if vertical integrations are questioned. This is not unimportant, its worthy of being part of the investment mosaic. Sure. Getting it on the record. Wapner about have a great show yesterday. He got comments from cooperman regarding tax reform listen to that i think the tax pack kabage e longterm sense. Shortterm its dangerous. We have a reasonably rapidly growing economy, a tightens regime from the fed, Balance Sheet normalization. I dont know that we need additional fiscal stimulus by dangerous what do you mean what could the outcome be . A rapid rise in inflation and Interest Rates one of my famous bites yesterday from cooperman is about bitcoin, targets of 40,000, its not going to be 40,000 of my money because he did miss t his view is irrelevant. You should have someone who made 200 million on it, changed his mind and is now negative where do we find them where do you find guests on fast money . You find those guys, great. You get closer and cloeter. Stocks at this hour, a nice Holding Power of 57 on the dow squawk alley will start in a few moments. Let out your inner child at the lexus december to remember sales event. 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So ive asked chase sapphire reserve cardmembers to find my next vacation. Rome, show me something. Im having breakfast at the pantheon. What an amazing view. Of your finger. Look at this view. Your finger isnt that incredible. Your finger and check this one out oh its so amazing move your finger three times points on travel and restaurants on every continent. Sapphire reserve, from chase. Make more of whats yours. Welcome back to squawk on the street. Im dominic chu. Stocks are trading higher after that stronger than expected jobs report earlier this morning. Many sectors are in the green. Healthcare and technology, two of the biggest serngtsd efgest s p leading the way higher you have shares of ebay, microsoft, all Western Digital driving up the Technology Side of things. Also strong action in healthcare with alexion surging over 6 after a positive outlook for trials of a alexion drug set to treat a life threatening drug disorder a lot of eyes also on energy, one of the underperformers this Year Oil Prices a big factor there. That does it for this hour of squawk on the street, lets send it downtown for the start of squawk alley. Thank you very much good morning its 8 00 a. M. At amazon Head Quarters in seattle, 11 00 a. M. On wall street squawk alley is live good morning welcome to squawk alley, and a busy day here. Green arrows across the board. Tech