The dax in germany up by. 2. The cac in france is up by a quarter percentage point the ftse is flat crude oil ended down by about 19 cents for the week last week this morning its down another 17 cents to 56. 38. A couple big stories were watching geopolitics. Germans chancellor Angela Merkel said efforts to form a Coalition Government has failed. Merkel has been working for more than a month to work with the, quote, free democrats and the greens after losing ground to a far right party in the september election if a coalition cannot be formed merkel could form a minority government or call for a new election youre looking at the euro down. Big questions about whats going to happen in that country. Also, in Corporate News, Marvell Technology is reportedly nearing a deal to buy chip maker cavium for 6 billion. Its going to create a bigger competitor for chip makers like intel and broadcom it would be comprised of 50 cash and 50 stock valuing cavium at 80 per share. Possible deal was first reported in early november. Talking about chips, qualecomm moving one little step closer to completing the 30 billion deal. Reuters said its going to win approval from japan. It will get the green light from regulators before the end of the year buying nxp could help qualcomm fend off the hostile 1. 3 billion deal from broadcom some stocks to watch today alibaba investing 2. 9 billion in chinas top grocer Sun Art Retail Group is the name the deal gives alibaba more than a 36 steake making them the second largest shareholder they have Stores Across china. Obviously the comparisons are sim nl to make simple to make here isnt that like a whole foods or something . Right. Shares of toshiba fell nearly 6 the Company Announcing its going to raise 5. 4 billion. The sale amounts to half the companys current market value boost toshibas assets back above its liabilities. Help it avoid being delisted in japan. Boeing has secured an order for 75 737 max jets from avalon with an option for 20 more. The deal could be worth more than up to 11 billion list price avalon is an aircraft leased in dublin owned by china. Back here in the United States, a showdown over tax Reform Administration officials speaking out on the sunday shows. Eamon javers showing us more of a roundup. Omb director mic mulvaney was on meet the press. He said a number of things about tax reform, including admitting that the administration is not really happy here that some of these provisions are going to have to sunset over the period of ten years that he said is due to the byzantine senate rules heres what he said yesterday. Were using reconciliation so we only need 50 votes in the senate instead of 60 in order to do that certain proposals can have certain Economic Impact. One of the ways to gain the system are the bush tax cuts what we tell folks is this if its good policy, it will become permanent if its bad policy, it will become temporary thats just the way it is. This is done more to force the shoehorn the bill into the rules because we think its good policy. Mick mulvaney said the administration is not necessarily opposedto the idea of removing the Obamacare Mandate repeal from this bill when they all when all is said and done in the negotiations between the house and the senate here. Speaking of Mick Mulvaney, we are still expecting him to be named at some point to run the cfpb, the Consumer Financial protection bureau, at least on a temporary basis while he still holds the omb job. That announcement not fully baked yet. Were waiting to see whether that will be announced all of that setting up a battle in the senate over the tax cuts. The president seems to know something that the rest of us dont know yesterday in a tweet, take a look at this, attacking senator jeff flake, a republican of arizona. Republican jeff flake who is unelectable was caught purposefully on mike saying bad things about your favorite president. Hell be a no on tax cuts because his political career anyway is toast. So the question is does the president know that jeff flake will be a no he hasnt said that necessarily publicly, but does the president know something about the way flake is going to vote if he does and if flake is a no, that makes passage in the senate just that much more complicated because you remember they can only lose two votes in the senate north in order to pass i. Although a lot of the language, murkowski has said gang of six. Has some issues shes not going to necessarily vote against it. Susan collins wants to see them raise the corporate rate from 22 to 20 so you can keep in some of the state and local deductions its complicated to win some of those people back in i think well see. Gang of 6 gang of 6, eamon we know who they are i saw the rogues gallery. This is why its fun to be a United States senator. Your vote is really powerful. Yes. They enjoy playing footsy with playing a no vote a lot of this is posturing and negotiating tactic traditionally senators will do this and kind of stall and hold out, hold out. You never want to be the first to commit. If youre the last to commit you have a lot more sway the question though is how many of these senators are dealing with fundamental oppositions. Johnson i think is a high lift he wants to get to yes but what johnson wants is a high lift are you going to bring down the pass throughs to 20 are you going to bring up other Corporate Taxes so theres no that inequity between the two . Right thats something he said is core to him they say they are willing to negotiate with johnson they say ultimately they can bring him on board you cant bring down pass throughs without it really jacking up the price of what this is going to cost. You cant do that within the senate reconciliation. It seems like a fix to raise the Corporate Taxes which is what Susan Collins want then you run up against another nonnegotiable, right the president has said hes not going to sign it i think he would pass anything they put on his desk if they give him 22 . I think youre right. Hes also posturing. Everybody is doing a lot of posturing ahead of this. He has said 20 is his absolute limit. He wanted 15 . Hes going to settle with 20 because of the way the math works out. Would he go higher did the senate and house reconcile, pass a bill thats higher than 20 . My guess is the same as yours, becky. He would he doesnt want to admit that. Whats the math if you go down you hate the pass through thing. I dont like the pass through. I know youre youre the opposite of ron johnson but youre going to argue from both sides. No, im not im suggesting if you lower the pass through down to 20, you have to it would cost 700 billion to do that. Right thats not even 23 . Maybe it would cost you 700 to 900 billion. You have to get to 24, 25 . Thats where youve wanted to be all along. 28. To make up for it. Im much more i would like to im much more worried about her, andrew flake. Even corker. Flake has no reasons yeah. Im not worried about johnson. I dont even know about murkowski. What are they doing, building a big bridge. Eamon, alaska, there is very specific stuff in the senate bill for alaska. I dont remember the specifics on that. Something about oil revenue. If you raise the comp rate revenue to a certain point, at some point the average company, theyre paying an effective rate much lower than the real tax rate at some point do you get the average effective rate the companies are paying anyway and youre not really effectively lower . Probably not at 22 . No. At some point it ticks over. I would say to me, 23 if you can get to 23 after that then you get into 23, 24, then it makes a lot of sense above 23 or 24 . Well then you get into the issue that youre talking about. Youre going to be paying 55. Then youre not moving the needle at all. New york and new jersey and Everything Else. 56, 55. Soak the rich. It is thats why i love it this is big tax give away for the rich big tax break for the ultra ultra rich. I cant wait for that. I cant give somebody more than 14,000 a year and not pay taxes on it. Let your heirs pay the Capital Gains appreciation is the way you can do it. I dont that would make sense. My heirs are on their own, joe. They have to fend for themselves they get nothing. Pay my debts. They get nothing. Exactly. Yeah. Whats his name in caddyshack. Spaulding. Thank you. We should note it may be a holiday shortened week not really shortened, it has a little space in the middle but theres still plenty of data on the wall street agenda. Tomorrow look at home sales. Durable goods, Consumer Sentiment and the minutes from last months fed meeting markets closed of course on thanksgiving and are only open for a half day on friday but that wont keep us away. We will be here on friday talking about it. Speak for yourself. Yeah, the two of us will be here. Becky and i will be here. Speak for yourself. Sell celebrating thanksgiving loyal viewers with us who wake up because they want toknow. Because youre going to be able to mail it in nothing is going on. You mail it in. Those days are hard. You dont blow a vacation day. I like being off. Its a good day to be home. Day with your family. I dont like thursday during thanksgiving just having to go to bed at 8 or 8 30. Oh, my gosh, you have to get up the next day exactly im happy. For me, the tryptophan from the turkey kicks in early and i go straight to bed. At 6 00. Exactly tofu turkey has tryptophan . Youre not really killing a living thing and eating it, are you, on are you doing that . Youre having honestly . How do you think who do you think the sorkin i thought it was a molded comes out of a mold of tofu turkey. Do you think everyone on the island of manhattan not everyone. Not everyone . Just you is this me . No, its me now its me. We skipped over some other things we skipped over you. Kale. Tofu turkey. There are a Dozen Companies. Watermelon juice. Reporting earnings this week. Watermelon juice is good notable names including lowes, campbells soup, h. P. Ink and hewlettpackard. Back to tofu turkey. Yuck. Like the mcribs. Chicken nuggets. Its like pig in a blender and then you put it in the get back the snout, everything. I wont say what i want to snout, tail, hooves makes mcdonalds almost as bad as i was talking about ronald and the scary clown. We love mcdonalds you cant be mad lets get back to the broader markets, joining us ed campbell, qma. John stolfus we need to buy a vowel thats a lot of consonants chief investment strategist at oppenheimer. Ed, youre pretty happy. Youre pretty you think things are okay. Youve got more concerns youve got more concerns youre worried maybe that this earnings run might be over now there might be a little consolidation . You know what else hes worried about . As much as you know about powell, whenever theres a new guy, the market doesnt know everything so theres a period of trepidation. Im not ebulient. Im going to check that out i dont know what the hell yo youre saying. Its thanksgiving. Pecul peculiar way of saying. Weve just about completed earnings season for q3 we still hold our target of 26. 50 for the end of the year. We think we have a chance to reach it we dont see in the market, we think this is very positive, animal spirits we dont see any irrational exuberance we dont see any worry people are hesitating. We were meeting with private investors in west hampton and evan sto evanston, illinois and scottsdale and denver. No one was just so positive on what was happening everybody wanted to ask me is there an expiredate on this bull market its all about revenues and earnings and the economy its fundamentals that are driving this the political side show will have an effect if we do get a tax reform and we wind up paying more taxes instead of less taxes. Youre wondering about tax reform im concerned about it. Would you say 50 likelihood, 80 . The number that ive seen that ive come closest to agree with and im concerned about that is even a 55 chance of it passing close to the way it looks. Im sort of youre not as concerned of it passing as much as concerned about whats in it im concerned about whats in it and i think were more than likely to get some kind of a tax cut ahead of a year that really is next year weve got interim or midterm elections and politicians both sides of the aisle have been told by their constituencies dont just stand there, do something. So some kind of a tax cut. Perhaps something particularly for corporations and much more modest and fair than what this looks like coming in may come out of it. Not until the first quarter. I think the points you all were making initially theres groups of people who will be taxed at much higher levels than currently who are already being taxed out. And then on top of it you have what i keep hearing is that people who are making a little more than 59,000 a year are likely to wind up paying more taxes. It tankered out in the senate bill because so many sunset. Once you get them rolling out. Plus, its costly in terms of the deficits its once again my question is and i think it will be by the constituencies who are these guys and whats the reality marker ed, you feel better than that one of the websites has a story about goldman. If you think 2017 was great wait until you see 2018 rip roaring economy. Good stock market. If you go back to some of the things that john said, too, i mean, investors are still skeptical, you know, i see that more as a positive than a negative. Yes. If we go back to, you know, John Templetons famous quote, bull markets are born in pessimism, grow on skepticism, die in euphoria, you know, i think were in the optimism stage. I still think this bull market still has at least a couple of years left when i look around i see strong Economic Growth, right weve gotten a couple of quarters of 3 plus if you look at gdp now for q4. Thats currently tracking at 3. 4 if we look at the composition of total return that we had for 2017, most of it has been driven by Earnings Growth were going to get 12 to 13 Earnings Growth for 2017 just a little bit in terms of multiple expansion i think the multiple has been remarkably stable so far this year i think for 2018 were looking for something similar, you know, another year of maybe low to double digit earnings low double digit total returns i should say im not totally disagreeing, but time will tell whats with the apple watch . Keep the apple watch whats with the apple watch . Its new. Whats with the apple watch whats with it im wearing it today. I see that. Thats why im asking you eight times. My wife my wife and henry and max and sydney gave me this as a present christmas recently. Early present. What kind of present . See, this is the watch. You can see whats going on. 6 18, 37 degrees i just got a tweet on it right now. You can see the tweet. Thats horrific you get tweets youre alerted to tweets. Alerted to tweets. Can you block them like dick tracy blocked this jerk . You could i actually dont know about that. So youre wearing the apple watch . Im wearing it. You dont think ill notice it. I got it a week and a half ago. I was five months pregnant sitting next to you, months and months six months pregnant before i knew but i was afraid to say it. You never know you never know. Wise man. Its better to wait until the baby is already delivered. Ive done that, too. Thats bad, too no, i already had the thats not good. I think youd like this really. What was the occasion for the gift it was a surprise it was in that realm during that whole week of lots of work. Wanted to be nice. Cheer me up. Thats nice. Do you like it or no . Im digging it. Tim, im liking it. Did it tell you to that youve got to stand up. It tells you to stand up. It even has a thing called breathe which ive been doing. It reminds you to breathe. Good thing you remember. No, its an app. Chew gum. One minute Meditation App doesnt have that great activity and great Activity Tracker tells you your heart rate and all of that stuff. Good. Im an early fan. Ill tell you after a while. Okay. I havent figured out all the things to do weve got to go. When we come back, a controversial provision in the tax bill could eliminate big tax savings for individual investors. We have details straight ahead later well talk to kevin hassle, chairman of president obamas council of economic advisors is he president again i think we should do that meeting tomorrow. Well wait. What did you think about her . Its definitely a new idea, but theres no business track record. Well, have you seen her work . No. Is it good . Good . At cognizant, were helping todays leading banks make better lending decisions with new sources of data so, multiply that by her followers, speaking engagements, work experience. Credit history. That more accurately assess a business chances of success. This is a good investment. Shes a good investment. Get ready, because were helping leading companies see it and see it throughwith digital. Senate tax plan has a definite plan theres a change thats going to be happening to individual investors to prevent them from minimizing taxes when they sell stocks its going to be this fifo, first in first out i think its lifo. First in first out so the shares that you hold, if you decide to sell some stock and holding youve been building over many years, you would have to sell the very first ones that went in that you probably have the largest gains on. The reason is that they want you to have to pay taxes on it. They want you to what they really want to do is make sure youre not going short term trading and think they have losses to offset gains last in first out, the stuff you just bought is going to not have appreciated as much and maybe even be down but theyre letting mutual funds do it. Theyre not hurting do you have a strong feeling . My eyes glazed over. I think this is a huge issue. If youve been building a stake over years and years like comcast and ge. Let mutual funds do the average price. So complicated by the way, if youre a betterment or one of these one of these robo advisers who are always trying to do all of these tax losses. No reason for you to exist anymore. You cant do it but also a lot of times with Charity People give the lifo stock to charity and they want to do it that way so they can take a right look, i just started thinking about it if youve been building up a stake for 20 or 30 years, youre an individual investor, its one more reason youre going to have a tougher time if you bought some recently. If you bought some recently if youre an employee, you bought it probably every year. I dont know what the axe on this story is to get excited about. I dont know if its the mutual fund. I think mutual fund getting different treatment is right i think what it is is a larger sign of all of these changes in the tax bill that we dont realize are going to be things that we affect. Barack obama is no longer president , right no longer president doesnt work for him there was a little bit of confusion. There was let me just poll you. My own confusion. Californians that was a wishful thing. Give you a choice of three, barack is still president , hillary got elected president. Right. Thats your second choice of whos in now besides trump three, bernie, didnt get screwed out of the nomination and became president do you know what the best part of this question is that theres a commercial break right now. If you had to pick are they tied any of them. Any of the above. I dont pick these things. Weird al. Any of the above. Jankovic . I can pick weird al . Hes your fourth. Im going with weird al. Or pee wee. Coming up, could be a big week for deals we arent talking retail media analyst will power, not kidding, joins us next to talk about the feeding frenzy over fox with disney, comcast, sony and verizon all reportedly interested from the fox side this morning what happened, rupert . Whats the deal, man hes a builder. He gets a good premium in the stock for a while. Im picking rupert. Rupert. Im picking rupert or mayor bloomberg. Oh, god as we head to break, look at last weeks staupd winners and losers opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Us. Its what this country is made of. But right now, our bond is fraying. How do we get back to us . The y fills the gaps. And bridges our divides. Donate to your local y today. Because where theres a y, theres an us. I know when i hand them the its gonna be scary. Car but i also know that were gonna have usaa insurance for both my boys. Its something that theyre not even gonna have to think of. Its just gonna be in the family. Were the tenneys and were usaa members for life. Every day, on every street, in every town, across america. Small businesses show their love to you. With some friendly advice, a genuine smile and a warm welcome they make your town. Well, your town. Thats why American Express is proud to be the Founding Partner of Small Business saturday. A day where you get to return that love, because shopping small makes a big difference. So, this saturday get up, get out, and shop small. Flexshares etfs are built around the Way Investors think. With objectives like building capital for the future, managing Portfolio Risk and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Welcome back youre watching squawk box. Live from the Nasdaq Market site in times square. Good morning, u. S. Equity futures at this hour are indicated a little bit lower on the session so far premarket session down about 27 points or so down 4 on the s p down 7 on the nasdaq president just happened to see this tweeting if you thought the nfl controversy was over, its not. At least as far as the president s concerned. Marshawn lynch of the Oakland Raiders stands for the mexican anthem and sits down to boos for our national anthem. Great disrespect next time the nfl should suspect him for the remainder of the season attendance and ratings way down. It was kind of a they love football down in mexico. The game was in mexico city. I was watching and im telling you, tom brady, because i had just watched the giants game. Right. That was a they beat kansas city in overtime. I was there. But oh, were you . Yeah, i was they beat in overtime but it wasnt the greatest entertainment product while i was there. Ill just tell you that. The giants look awful. And kansas city didnt look much better watching brady just dissect, i mean, he really is good. I dont know about their defense, the patriots. Yeah, he was sitting down for one guy on the giants was kneeling yesterday and a couple of guys for the chiefs stayed in the tunnel i read before they came out. Right its still happening. I dont know what finally happened lets talk about the Weekend Box Office Justice League taking the top spot garnering lower than expected 96 million. They were expecting 110 million. Really . They want to be on track to hit 1 billion. Ben affleck, batman that could cost them at least 10 or 20 million. In u. S. Sales its global opening, thats what were talking about. Weekend in total was 281 thats the weak end debut for a d. C. Unverse one film that did have a heroic showing wonder. Julia roberts with a child with a facial deformity opened with 27. 1 million in north america. Years ago eric stoltz that was the one with cher, right . Yeah. Right. Also the Weinstein Company actually getting a surprise bidder its like the u. S. Small Business Administration submitting an offer to acquire the company. She says she hopes to be the executive chair woman of a majority female board heading the Weinstein Company which would be renamed contreras sweet saying she wants to set up a fund for victims of harvey weinstein. I dont understand that every other person whos looked at this company, its real hard. I dont know how that deal would be structured. With interests swirling around the pieces of 21st century fox empire, i want to talk about the complications joining us is will power, Senior Research analyst at baird. So et cetera wilets talk aboutn on with fox. Lets talk about comcast, verizon and disney lets walk through each, will. Ill tell you what. No merger monday announcement yet. Theres clearly a whirlwind. You have the bankers and attorneys making money on some of the negotiations. Not yet all respect. The lawyers get paid by the hour look, you know, i think, you know, where theres smoke, theres fire theres no question theres negotiations going on. I think theres interest when you step back you look at the interview your david favor had with john malone he burned amazon as the death star impacting all of these industries one of those is media. Whether you look at amazon, facebook, google, netflix. Theyre really forcing the long standing cohorts in this industry whether its the traditional content providers. Theyre forcing them to gain more scale and differentiation thats whats pushing the companies to come together to battle with the new generation of Media Companies. Lets start here. Of those three that i just discussed, comcast, verizon and disney, what do you think makes the best sense from a combination standpoint yeah. Well, no, look, its a good question i think it could make sense candidly for any of them i think as you look at disney and comcast, both of them already participate in the content space so this would provide a nice opportunity to gain additional scale, new original content and so i think it makes a lot of sense, you know, for both of those. Then lets talk about the regulatory piece of this, which is to say were all awaiting whether the department of justice is going to sue to block the at t time warner transaction. If they do, what does that portend for a potential deal with a 21st century fox . I think it makes it much more difficult without question i think it would be quite surprising if you actually saw an announcement prior to getting more clarity from the d. O. J. With respect to at t time warner i think, you know, no question we probably need discussions. Why do you need the see the lawsuit . If you know in five or six months do you need to wait for the lawsuit to be filed or do you actually need to see how it plays out in which case well be having this conversation again in six months. I think if theres a lawsuit underway its going to make it more problematic for another announcement to actually get hashed out and announced look, the reality is i think most of us think that the at t time warner deal should be able to get well, well see if it gets approved or not this he have a decent chance if it goes in that direction in court. These companies have to be somewhat gun shy it wasnt long ago that comcast tried to buy time warner. Time warner cable, correct. I would contend to you that all three of these companies that are looking at fox and fox as well rather than let at t and time warner settle with the government on this deal, that i think in a way theyd be better off in a way and they want them to bring the case, in part because they think that the government will lose and that that would offer them a bigger opportunity. Well, yeah, thats a fair argument there could definitely be some different gamesmanship underway here i think when all is said and done, you know, i think theyd like to see greater clarity rather than, you know, test that and, you know, commit resources, time spent on the merger, et cetera but well see. Theres not perfect clarity. Whats the takeout price . Whats the fair takeout price right now for fox . The problem, andrew, is i dont have a great answer for that because i dont know what assets theyre definitively looking at all the rumors suggest theyre looking at different pieces of it, and none of those companies by and large are going to be able to buy the broadcasting, you know, side of it how do you split out the value between those . I dont cover 21st century fox so i dont have a perfect answer for you on that. You look at verizon, they seem to be the of the between comcast and disney people think they have a better shot where do you put verizon in this yeah, no, its interesting. Verizon has figured out what it wants to do. Its pressie clear it had some interest in charter in adding distribution to get the fiber back bone to support the 5g initiatives and interests over time but i think its looking at an environment where it needs additional scale, needs additional assets to bring to bear and so its continuing to survey the landscape i think what we know is its going to need more to continue on. Do you believe in this last question. Do you believe in this model, meaning the idea of marrying distribution and content that that is the key for all of these Companies Going forward . Well, i think absolutely. I mean, were heading down that path youve already seen it bundled in one form or another the case of at t, time warner, it adds important kwacash flow. The wireless business is a tough business you make your value on the content. And i think theres an increasingly realization that thats going to be important. Okay. We are going to leave it there always great to see you, sir. Thank you. Appreciate it. When we come back this morning, well be talking tax reform and what it means for your money up next, john harwood speak easy interview with senator Lamar Alexander. Later President Trumps top economic adviser from the white house. Kevin hassett joining us in a first on cnbc interview. Stay with me, mr. Parker. When a critical patient is far from the hospital, the hospital must come to the patient. Stay with me, mr. Parker. The at t network is helping First Responders connect with medical teams in near real time. Stay with me, mr. Parker. Saving time when it matters most. Stay with me, mrs. Parker. Thats the power of and. Welcome back u. S. Equities futures starting off the week on a sour note. Nothing huge at this point, but down in fact, its improved quite a bit. Just down 10 points on the dow down 2 on the s p and nasdaq indicated down 1 1 2 tax reform front and center. John harwood joins us now. Good morning, john. Good morning, joe one of the questions surrounding the tax cut bill is whether the country can afford it, especially given the fact that we have a longterm Funding Crisis in the major entitlement in medicare and social security. Senator Lamar Alexander told me we can afford this tax cut so long as we follow tax reform with entitlement reform. Its hard to take much more from people at the top when 10 of the people pay 70 of the taxes. What you really need is a growing economy that produces more revenues, thats more money for the government and thats more money in your wallet. We already have substantial deficits were already on track to have 10 trillion in deficits in the next ten years yes. Youve got more and more people coming on medicare and social security. What gives afterwards . Nobody likes to cut entitlements, but i think the Republican Party should and always has said we want to reduce the growth of government, increase the amount of money in your pocketbook and reduce the federal debt that i think is a winning formula. But, of course, the first step in that process is getting the senate to pass that tax cut bill get into conference with the house. Lamar alexander, guys, is all for it. Okay. Really i thought it would be longer, john why did we keep you you must have asked him other interesting stuff, didnt you . Oh, yeah. Theres a ton of it. Youre going to do a lot more absolutely. Highlights. Give us some highlights, at least tease us, john well, alexander talked about the prospects for getting the obamacare repair bill. He understands the president s gone back and forth a couple of times on whether hes for it or against it he is confident that is if the president comes out and says hes for it, it will be part of the yearend package as this tax reform bill moves. Of course, we saw Lisa Murkowski among others saying if were going to pass this tax cut bill and repeal the individual mandate, she wants that Alexander Murray bill. The other issue we talked about was the trump budget he said that the Republican Congress is going its own way on the budget so the president s priorities as in previous budgets by other president s, they dont go anywhere what we do becomes the law and he said that theyre going to Fund Scientific Research and other things that President Trump and Mick Mulvaney have not given priority to. Do you see the future do you see what im seeing . Do you see this eventual duke xavier matchup being a huge its on the horizon, isnt it . Can you see that coming up i dont know how good xavier. I know were young and were very good. Theyre ranked 11th no, cincinnati is eighth i can see it. Grayson allen is really good. He hasnt tripped anyone do you like that kid i do like him i think hes been immature hes behaved badly, but i do think that were watching a kid grow up in real time and coach ks made him the sole captain this year i think to try to put a little of that weight of responsibility on his shoulders, and what weve seen so far, hes handled it pretty well obviously a long season. Getting earlier and earlier for me with this. Yes. In terms of trying to figure out march and all of that stuff, you know what i mean uhhuh. Much to your horror, i did have North Carolina last year in our tv news group. Yeah, that was unfortunate. Yeah. Youre not over that i can see that a couple of extra lines on the and gray hairs. You noticed all right thanks john, thank you for all of that coming up when we return, strategy session talk markets and politics with mark grant youre going to head for a break. A check on whats happening in european mke rhtow ckn st a moment. What we do every night is like something out of a strange dream. Except that the next morning it all makes sense. To power global ecommerce Fedex Networks are massive, farreaching and, yes. A little magical. Fedex. Com slash dream looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Today, innovation in the finger lakes is helping build the new new york. Once home to the worlds image center, new york state is now a leader in optics, photonics and imaging. Fueled by strong university partnerships, providing the worlds best talent. And supported with Workforce Development to create even more opportunities. All across new york state, were building the new new york. To grow your business with us in new york state, visit esd. Ny. Gov. To grow your business with us in new york state, i thyou never got the brakesice. Looked at . Oh yeah. No. At cognizant, were helping todays leading manufacturers make things that think and do automatically. Imagine that, a world of new Digital Products and services all working together for you. Can i borrow the car when its back . Get ready, because were helping leading companies see it and see it throughwith digital. Zplierngs welcome back to squawk box. Mark, you have written a couple of really interesting notes over the last several days. I want to get to all of it im afraid we wont. I want to talk about the pancake the notes you wrote this morning first, i want to talk to you about the tax bill you are bringing up many really interesting points it seems to me we find out about a new twist or turn in the tax bill every day that makes us shake our head and say why is this in here a lot of time its something to make sure the senate gets the 20 Corporate Taxes. You have some interesting things you found that i hadnt seen yet. What are your biggest concerns i read the house version of the tax bill cover to cover. Its about that thick. The amazing part in the media they talk about, of course, the tax cuts, the corporations, the tax cuts for individuals buried in this bill there are all kinds of deductions for the oil industry theres a tremendous amount of legislation proposed that would change the Municipal Bond industry in terms of whats tax exempt and whats not tax exe t exempt the amount of stuff in this tax bill is way beyond what you see in any reports in the papers, and then, of course, the senate version, which hopefully will get passed, its not going to be one bill or the other. Its going to go to reconciliation and theyll argue about it and change it further before it goes back to the congress and senate to get passed its very complicated. Its probably not a surprise. I mean, arcane tax law has been with us forever. I guess the point is there are going to be many more intended and unintended consequences than weve been really giving credit for. I think thats exactly right, but more than that are the amount of, as i said, even if you look at the oil industry and solar and wind, theres a tremendous amount of regulations in this bill for that and for various other industries and how you carry your taxed its so complicated, in fact, becky, that so its a good thing if its 2018 before it kicks in because they can adjust accordingly . I think frankly it will be better for country in terms of growth to do it sooner rather than later, but it might be a great thing for the various people that do those kinds of things that are going to make a lot of money because of all the changes that are there , ma, you want this bill to pass or you want something to be passed some sort of tax reform or tax cut to be passed i think it would be a good thing for the economy. I also think theres a tremendous amount of pressure on the fed and on mr. Powell, the upcoming chairman, to back off from raising Interest Rates because that is would be a negative for the economy and a negative for real estate and corporate borrowing and individual borrowing im a proponent that the fed is going to back up and slow down this notion of raising Interest Rates. What you looked at in terms of the pancake flat yield curve all the way out to 30 years, your basic assumption is its not worth it theres nothing worth taking risk over 30 years which means what becky, i was in a conversation, actually, last night with the head of investments of one of the larnlelarnl e Largest Insurance Companies in the country discussing this the yield curve is so flat you gain nothing past ten years if you are way out at the end of the yield curve, whether you are in treasuries or a variety of other securities you are picking up, for instance, in treasuries between the ten year and 30 year, 0. 42 basis points a year. You have a tremendous amount of political risk, economic risk, market risk, and you are not getting paid for it. My conclusion is way too much risk and almost no reward. Not a good trade meaning good news for stocks . Thats the place you would be putting money instead or Something Else i think equities are going to do well, but, as you know, the reason i was on with you november 8th last year saying equities were going to go up, and trump was going to get elected, and the reason is not only because of what mr. Trump is doing with taxes, but because the Central Banks of the world have 21. 7 trillion in the market, which is an economy bigger than anycountry on earth. You always give us stuff to think about. Thank you. Appreciate your time this morning. Thank you, becky. Thanks, everybody. K on. See you, mark. See you coming up, planning your portfolio for the end of the year were talking technicals with Katie Stockton next. Later, insight on black friday shopping trends from a social media disrupter. The ceo of four square brings us an inside look well be right back. November is epilepsy awareness month. I am the proud father of a very strong little girl named adelaide who was diagnosed with infantile spasms an incurable and debilitating form of epilepsy. Its been a devastating journey that has robbed my baby girl of normal development. Thats why i have launched the my shot at epilepsy campaign and im asking you to join me. Take your shot at the hamilton pose, donate to help us find a cure, and lastly, share it on social media. This is our shot to take. Learn more at myshotatepilepsy. Org the market says here is ready to gobble its way through the week i guess its thanksgiving. As investors digest the latest out of washington, earnings season will come to an end what you need to watch as we head into the Holiday Season is straight ahead tax reform continues front and Center Council of economic advisors chair kevin hasset joins us to discuss the bill and a number of media deals in the works former tivo ceo tom rogers joins us to discuss the deal buzz. Possible regulatory hurdles. The second hour of squawk box begins right now check this out see how things are setting themtsz up on this monday morning. Dow looks like it would open off 11 points. Nasdaq to open off well call it 2. 5 points s p off about two points heres whats making headlines at this hour besides joes big fan. Itholiday shortened week tomorrow you have to look for existing home sales on wednesday. We have weekly jobless claims, durable goods, Consumer Sentiment, and the minutes from last months fed meeting its going to be a busy day. Then, of course, the markets close for thanksgiving and theyre only open for half a day friday they will not keep us away, though, from this show we will see you on friday. Lots of retail news, of course, on that friday separately there are about a Dozen Companies in the s p 500 reporting earnings this week as well notable names including lowes, campbells soup, sales force, and both hp and hewlettpackard enterprises come out we should tell you qualcomm is moving a step closer to completing the 38 billion purchase of chip maker nxp reuters now reporting the company set to win antitrust approval thats going to come from japan. You may get the green light from regulators by the end of the year with a few tweaks to its concessions. Buying nxp would help qualcomm potentially fend off a hostile 103 billion offer from broadcom were waiting to hear perhaps even as early as this week whether broadcom is going to come with a higher bid after qualcomm projected the initial one. Also, President Trump reported by wont National Security adviser on a repeal of obama mandate in the tax bill. Thats according to a senior white house aide the Senate Republican version of the tax reform bill would remove the mandate that americans buy Health Insurance or pay a penalty. Joseph verizon is recordly close to a new digital streaming deal with the nfl that would allow the company to give customers access to games on all devices, but verizon will lose the exclusive rights to stream games on mobile phones that means cable, satellite, and other streaming providers that could offer games through their apps people talk about nfl trying to figure it out. You know, im hearing saturation as much as im hearing kneels. You can definitely watch nfl if you want to. You can watch it on twitter exactly well see. Its going to be interesting to watch the nfl and how everything plays out. You are jerry jones, goodell all these things verizons stock was upgraded by wells fargo from outperform to market perform. The price target now is 50. Thats 2 above where it used to be are the analysts saying several factors, including valuation and other Corporate News, General Electric is preparing to undergo a major board shakeup last week ges Ceo John Flannery told investors that he wanted a smaller board, in his words, so new members with key skills relative to where the company is going. Nine of the current 18 directors will lose their seats, and three new names will be added. A front page story in todays wall street journal suggests that ges two longest serving directors, andrea jung and shelly lazareth are likely to go lead independent director jack brennan and trians jack garden will remain on the board he said that in terms of the lead director when he spoke with them last week as well if you are looking right now, we will show you a live shot of the george dome. Some 4,800 pounds of explosives have been placed inside the facility, and it is ready for implosion. The dome, of course, the home of the falcons and many other Sports Events over the past 25 years. Its going to be blown up at 7 30 a. M. Eastern time this morning, and we will have live event for you in less than 30 minutes. I dont know why, but i love watching these things more than anything bridges are i dont know why. Its a controlled sort of chaos that you like. Like to see things burn isnt that what squawk is it is and sometimes its uncontrolled, but, yes and weve seen it implode many times also. In the first two they put them in, you know theres engineers that build them, and there are engineers that know exactly where to put them down. The supports are its kind of cool. If the first two weeks of november stocks wobbled. We earlier said they were going to gobble this week. I guess wobble and gobble rhyme. Global stock markets slipped, and high yield debt slid off with the recovery, perhaps it will prove just another tiny pullback did the dip expose market weaknesses that will continue. Mike santolli is here to tell us if the bears missed their last chance for a 2017. You are going to tell us that definitively or just raise some questions . Global markets, small cap stocks lagging all of it was coming together, and then you had a furious buy of the dip when it wasnt much of a dip it got back to 1 , 1. 5 of down side i do think with seasonal factors, when you start to talk about thanksgiving week and through the end of the year, its tough to get serious down side from there. At least historically. Also, if you look at years that look similar to this one, up 15 through october. Right now you have one of the levered it stock markets, one of the most levered economies in history. You had rates very low, and investors willing to boy all this debt. Thats corporate debt. Its a percentage of gdp this is a percent of back ground risk that i think people might warm to. Especially if rates go up significantly. It makes debt more expensive it might also be why debt paydown might do with repatriated earnings especially if debt gets treated differently in the new tax code. All that stuff in the mix there. Let me tell you about breaking news. In Corporate News march very well technology is buying cavium for about 6 million its a premier of about 17 to where it traded before the possible deal was first reported back in early november lets bring in Katie Stockton, chief technical strategyist at btig, chief strategist at ubs. I think we set up this interview with you, katie, with mikes report and said they may have missed a chance. You think maybe you said maybe last week what happened. It did it didnt go as far as you thought. You think it still might i think is still might. Its undeniably a resilient tape we have buying interests there, and i think a bullish bias is definitely appropriate yet, do i think we have a down draft in the stores in the day ahead. Shortterm momentum this week and certainly shortterm breath meaning midmarket participation. The good news is that the down side to support. I was really very shallow. Were talking about 2 in that range for most of the major indexes. Maybe a bit more for those that are leveraged to the Technology Sector okay. So the s p is 2,578. When you were talking about the pullback before, you were thinking before the end of the year, 3 to 5 what were you saying in the 3 range support, fortunately, rises over time theyve taken do develop, which it has been quite a long time since sentiment peaked at that overly bullish level, if you remember that, in october. Now supports run 25, 30. Just about 50 points below for the s p 500. Very modest. Take the trough, and that would be how much . Just a couple of percent really that would be enough . 2 to 3 . Back to new highs by the end of the yoer. It doesnt seem like it would be enough. Just in percentage terms what happened during that august pullback, which was also very shallow, is maybe 3. 5 or so we saw sentiment go from overly bullish to overly bearish, and weve already seen some of the measures reach neutral territory, with just the very shallow pullback that weve seen i think were getting close. You know, mike, youre a fundamentals guy were not going to charge you for this information you just got this from its absolutely free to you and to viewers. Factor this in to your thinking. Do you i mean, its shortterm longterm you have a different outlook . Yeah. First of all, we can always get a setback, and im not dismissive of some of the concerns we hear around lack of progress that we made in terms of Senate Tax Reform theres obviously issues right now in europe. Especially with germany with regard to the inability to form a government i think these are still distractions and still folks on the fundamentals were coming out of earnings season it was pretty solid overall. I think Going Forward were likely to see if we do get any movement at all on tax reform, that could trigger another 10 a share tore s p earnings for next year i think the fundamental outlook, pretty still remains pretty solid. In the absence of some major market disruptive event or something that will broadly change the back drop, were still constructive on markets. Nobody can feast on 2 bears are going to be very theyre going to be thin and gone and Everything Else just trading the headline indexes, its trouble. Consider we were down 1. 3 in the s p i guess last week at the lows you were if right on a couple of sect orz, like traditional retail and media riding them all the way down, last week they just ripped up in your face because of various factors i have thought about what it says about the fact that,look, the tax writing economies are going through the couch cushions for money. Anything like that what i wonder, i think lot of people probably didnt know about this, and, remember, we talked to buffett, and he talked about how you may be having people wait to sell things because they want to get the better the better rate in the new year that may change your perspective. If you are forced to sell something you have been holding for 10, 20 years and the Capital Gains rate for individuals. Right . Individuals have no incentive to change what theyre doing right now. You would you would if you wanted to sell the stock. If you wanted to choose which stuff you were selling this year i would immediately sell some of that if you had a longterm stake, and you thought, okay, this is the last time youre going to sell before the end of the year oh, if you had very cheap cost space stock that you wanted to unload. Something you had already but then you bought it at much higher levels and just happened to have bought it at higher levels that would be a problem if if you have been buying it over a long period of time you void a little bit of taxes, and that gets in the way of what your Overall Investment strategy is. Youre doing all this fancy tax stuff offsetting gains with losses thats what we all do withing every tax code its not going to change when this passes. People arent going to decide that theyre going to be scorps or ccorps its not a simpler tax code. Its just a simpler one. If you said to yourself does this encourage it or encourage it its kind of like youve been buying this stuff at different points in time thats the only moment when its relevant that you would choose which lot you were going to sell first. Its just to offset you want it you are playing games by selling the stuff you just bought and characterizing that so that you can use if its down, then you use that loss to offset gain somewhere else this tax code does not simplify this. I think anyone in a certain tax bracket, if you were thinking that you were going to if you were waiting to sell stuff when you had lower you are going to get killed next year or whatever i look at you and think about, you know, billions and deal you know, all your different paychecks coming in. I cant even imagine what the size of this, like, totals next year youre going to get absolutely massacred just slammed. If you are waiting to sell, like next year where it was going to be because of the tax reform was going to go through, you better get the hell out right now. Can we get 3,000 . I dont know about 3,000. Bullish bias momentum is there. 15 beyond the shortterm that the sector we just have to be in the right sectors 3,000 next year on the s p . Its possible right now its not the most probable outcome, though. Its going to take a lot of up side for earnings to get to 3,000. More than were forecasting right now. All right 3,000 or bust. Anyway, thank you. Thanks okay. A couple of mikes that was fun. Coming up when we return, it is that time of year, and social media platform next door is rolling out a new feature to help promote local businesses in your area. A couple of ceo joins us rye right after the break. Later, a council of economic advisors chairman Kevin Hassett is going to join us, and i bet you his boss m baye watching youre watching squawk box here on cnbc ounts on centurylink to keep their global campus connected. And why a Pro Football Team chose us to deliver fiberenabled broadband to more than 65,000 fans. And why a leading car brand counts on us to keep their Dealer Network streamlined and nimble. Businesses count on communication, and communication counts on centurylink. Wow record time. S. At cognizant, were helping todays leading Life Sciences companies go beyond developing prescriptions to offering subscriptions with personalized, realtime advice for lifelong, healthy living. Honey . You almost done . Nope. Get ready, because were helping leading companies see it and see it throughwith digital. Joining us right now is the cofounder and ceo of next door. Waking up very early for us on the west coast good morning to you. Good morning, andrew. Great to see you. So help us understand whats going on here. You are trying to promote Small Businesses, local Small Businesses we talk about the Amazon Effect all the time you could easily find the businesses most beloved by people in your neighborhood. Are you creating a network with neighbors locally, but with businesses themselves . Are there deals being offered as part of this this is really about celebrating the businesses that neighbors love you mention that most of us are thinking about amazon and other places where we can buy things onli online, but we cant forget about shopping locally we cant forget about the fact that part of what makes our neighborhood pz vibrant is the local businesses that serve us now weve taken those recommendations that great word of mouth, and we tut it online for anyone to discover those businesses it feels like amazon has already won this game or walmart has won this game do you see a moment in which local businesses come back or change in a way that somehow retake both market share and mind share i think in most categories local businesses never went away theres certainly a large amount of retail that can be facilitated online, and amazon and walmart are great at those categories, but when you think about service providers, when you think about bakeries, you think about farmers markets, you think about doctors and dentists and electricians, i dont think amazon is in those categories yet have we want to give them their due praise we want to giver them a kind of highlight so that when you go into these neighborhoods, whether you live there or you are traveling there over the holidays, you know the best businesses to patronize. I know theres a real estate compoen ebt to what you guys do, but when you look at commercial real estate, i even see a new york city go to the upper west side, upper east side, so many of the Retail Stores are just vacant now with neighborhoods favorites on next door, they have an easier way to make sure that neighbors know they exist. We appreciate you waking up early. Always love seeing you next time youre in new york, please come and visit with us. Great to see you. Its been the site of two super bowls. Four final fours the olympics and more than 250 Atlanta Falcons games. In just a couple of minutes, the georgia dome will be imploding well bring you the event live then, later, media merger frenzy could face regulatory pushback we talk about some of the latest deal announcements with former tivo ceo tom rogers. Squawk box will be right back. Excuse me, are you aware of whats happening right now . Were facing 20 billion security events every day. Ddos campaigns, ransomware, malware attacks. Actually, we just handled all the priority threats. You did that . We did that. Really. We analyzed millions of articles and reports. We can identify threats 50 faster. You can do that . We can do that. Then do that. Can we do that . We can do that. For her compassion and care. He spent decades fighting to give families a second chance. But to help others, they first had to protect themselves. I have afib. Even for a nurse, its complicated. And it puts me at higher risk of stroke. That would be devastating. I had to learn all i could to help protect myself. Once i got the facts, my doctor and i chose xarelto®. Xarelto®. To help keep me protected. Oncedaily xarelto®, a latestgeneration blood thinner. Significantly lowers the risk of stroke in people with afib not caused by a heart valve problem. It has similar effectiveness to warfarin. Xarelto® works differently. Warfarin interferes with at least 6 bloodclotting factors. 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Its important to learn all you can. To help protect yourself from a stroke. Talk to your doctor about xarelto®. Theres more to know™. 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. The Box Office Justice League taking the top spot garnering worldwide 281 million, but that was below expectations for the opening weekend, according to comp score. The big budget Warner Brothers and b. C. Entertainment film saw 96 million, in u. S. Sales, and estimates were over 100 million. When we come back, the end of an era for the georgia dome. The building is set to be demolished in just a few minutes. Were going to try to watch it, so stick around for that then, council of economic advisors chairman Kevin Hassett joins us to talk about the tax reform plans take a look at the u. S. Equity futures. Shield annuities from brighthouse financial, allow you to take advantage of growth opportunities. With a level of protection in down markets. So you can head into retirement with confidence. Brighthouse financial established by metlife. Good morning, everybody. Welcome back to squawk box here on cnbc we are live from the Nasdaq Market site in times square. Among the stories that are front and center alibaba is investing 2. 9 billion in chinas top grocer, Sun Art Retail Group it gives alibaba a more than 36 stake, making it the companys second largest shareholder sun art operates about 450 Stores Across china. Shares of toshiba fell by nearly 6 in japan today the Company Announcing its going to be raising 5. 4 billion from selling new shares. That sale amounts to half of the companys current market value it would boost toshiba esaassets back above its liabilities and in turn help it avoid from being delisted in japan. And in washington nuds the Senate Tax Plan will let mutual funds skip a change that hurts individual investors that provision would force investors to sell off their oldest shares first. That prevents any cherry picking specific lots to try to reduce the investors tax burden. Originally that change was designed to apply to both the fund and to individuals. This kimes after large firms and eaton vance complained nafta renegotiation talks resume today in mexico city. The u. S. Has demanded tougher origin rules mexico and canada will reportedly not make a counter proposal, but, instead, try to convince the United States to change its mind. Canada will make a presentation arguing that u. S. Demands would cause serious damage to the u. S. And all north American Auto manufacturers. Steven mnuchin shared his thoughts on when he expects a tax bill to hit the president s desk were very excited about the timeline i mean, yesterday was obviously a huge day in terms of having the house pass the bill. Thats a great move forward. Were going to have the senate as soon as they get back from thanksgiving vote on the bill, and our expectation would go to conference right away, and we have every reason to think well get it to the president s desk before christmas for him to sign the white house remains confident that growth will continue at 3 or more following the passage of tax reform. Joining us now council of economic advisors chairman kevin hastess. Mr. Chairman hey, good morning, guys if you make a Million Dollars or more, you make a heept of trouble. Thats antireagan its antiheritage its anti, you know, anywhere that you read normal supply ciders would be that the top 10 if you are going to raise taxes on wealthy individuals, it seems like its counter intuitive to what the whole rationale for this is. I think theres a big middle class tax cut. Theres an affirm amount of simple fiction the fact is that everybody up on the hill has a different idea about the tradeoff between equity and efficiency. Theyre working out a deal between all those folks that can make a big fundamental reform that becomes law to let those folks work it out, and for sure, the president preferred where we started in the first place with the 35 rate he also respects regular order were talking about assault stuff and just actual apples to apples comparisons about, lets say you have a lot of people that voted for a republican because they thought at worst you do Corporate Taxes would stay where they are. Very few of them thought that their taxes were going to be sharply raised by a Republican Administration i dont think that there are very sharply raised people in the distribution tables, but the fact is that people voted for President Trump because they wanted them to turn the economy around if we sustain this 3 growth that weve been sustaining in the quarters actually asked treasury secretary mnuchin that what do you they will the people its for the greater good . Sorry, guys, but you know we want corporations to do better and wage gains and stuff, but you will have to pay for it. Thats how you should thats what you would tell what you are calling as a small amount of its not really a small group of people in new jersey and new york for most people around the country then the lower rate overpowers the state and local deduction, but there are some people in really high Tax Jurisdictions where thats not true they should get on the phone and call up their local officials and tell them to try to run a more efficient government. That, in fact, is what the incentive is not there right now that will be back. Thats in the journal today that trenton needs to get its act together and maybe this will force them to get their act together this is going to happen instantaneously. Those states wont have time to prepare or to try and change how they do business, which, you know, could lead you to think that maybe new york, new jersey, condition con, illinois, california could be dealing with states that slide into some pretty tough economic times. At least for the foreseeable future until they can change, correct . You are talking about a few people at the very top theyve got plenty of resources. We already see mobility from high tax states. Thats already going on. Not just because of the thats an argument for why those states would be okay its in line for why people leave and go to florida. Its not the huge change that you are characterizing as well do you have a preference on some of the provisions in the house and some of the provisions in the senate, and, you know, i think the house was solid. It wasnt even close, but, i mean, the senate right now i can think of six guys that could do the thumbs down and become famous on the day this needs to try to pass, kevin i dont have any idea out of the six which ones it could be any of them. I dont trust any of those six to do this i think the expectation is that theyre going to have the votes to get the thing through the senate rate after we get back from thanksgiving break sf you get ten years outs, the law as they have seen it or the bill as the senate is considering it would be something that would raise taxes on people across the board people making 50,000, people making 100,000. There are a lot of people paying higher taxes in ten years. How does that get worked out in reconciliation i think that they are probably going to have to have some stuff expire in order to make the reconciliation rules. Its a moving target as they negotiate with the house to see, well, this thing goes in and costs money and that means Something Else has to expire i think its the intent of everybody who votes for the bill that this be a permanent change in tax law and we have quite a bit of precedent to go on for this if you go back and look at, say, the bush tax cuts when president obama was in office, and he extended all of them at the beginning, and all but a tiny little bit, just the top margin of rate became permanent in the end, and so the budget rules make politicians do this, where this isnt the first set of politicians that have had to do it the precedent is that people were the rule does make sure that its kept in place for corporations not for individuals. I guess the optics of that may be difficult again, the corporations are deciding whether theyre going to locate a plan here or ireland or some other country, and theyre making a decision thats a Capital Investment that lasts 20, 30 years the expiration could have a much bigger impact on their location decision than youre location decision, right . Kevin yeah. Last month Larry Summers made some pretty provocative statements about your analysis of the wage gains that would result from all of this. He said that he is proudly guilty of asserting that your analysis is some combination of dishonest, incompetent, and absurd he goes on to say there is no peerreviewed support for your central claim. That cutting the Corporate Tax rate from 35 to 20 would raise wages by 4,000 per worker what do you say to that . The same thing you said last fall maybe the statement is we have two studies out filled with two peer my own paper was peerreviewed. Its just a false statement. You know, entitlements. Nothing there are people that say over ten years baked in the cake we got another 10 trillion well match what we did in the past eight years, and that doesnt do and then entitlements are totally not touched. I know that in the past youve looked at entitlements and have the notion that this is something that we cant let go on forever will that ever be on your plate, kevin . If this gets done, will you then move to try and talk President Trump into looking at ways of fixing that . These deficits are peanuts compared to what we owe for entitlements right the president has already said that next up after tax reform will be welfare reform and welfare reform in part will be looking at entitlements, im sure, and trying to shore them up and make them more efficient. In the long run, as say, every economist will tell you that weve got to ultimately pay the bills that weve booked, and i think were Something Like 90 trillion or 80 trillion short. At some point the government will have to act the first step of getting the economy going again and growing around 3 with the tax reform seems like a good first move for me can you see when you get right down to the very end of this thing and is there any way that the 20 is not going to be the president would finally say, you know what, you got too much arguing going on for the small Little Things that you are you got all these things you need to do to get to 20 lets do 22. Is that possible is the last thing he finally gives in on as far as negotiation and thats not going to happen . You know, thats above my pay grade, but i can say that he has had three nonnegotiable as from the start, and you know what they are milgz class tax reform, simple fiction, and a 20 rate. Those are nonnegotiables and i assume that means theyre not going to be negotiated it seems like this is not a simpler tax code it seems like this is look, there have changes understand trz going to be tax reform in this understand that there are tax cuts coming in a lot of Different Directions it does not seem simpler to me oh, and i think it is simpler if you consider that theres a big standard deduction and so many people wont have to itemize, and theyll have a simple tax there are still all kinds of winners and losers in the corporate law. Thats always true. If you start out with lots of there are 150 million taxpayers out there, right, and there are going to be winners and losers no matter what you do. The fact is there will be a lot less compliance cost under this code that will be true both on the individual and the corporate side because the corporate side is moving closer to an international it seems like you would still have compliance issues with trying to figure out who is going to be classifying themselves as a passthrough, who is going to be classifying themselves as a corporation and all the changes that go along with that. We have those now, and theyll be simpler after the bill all right, mr. Chairman thanks its great to be here, guys you are not doing any more interviews, are you . You got to get in front of a tv set, dont you you know whats going to happen with the georgia dome, right this great big thing is dont you love when things implode have you seen those things oh, it already happened. We missed it we talked all that time, but you dont have a monitor there, do you . I do, fwactually, yes. You might be able to watch it the georgia dome has been brought down by 4,800 pounds of explosives the dome the georgia dome. Yes i think its happening look how it falls in on itself sort of. I just you know what, kevin, i hope this is not an allegory for anything going on with the bill its your ratings when you put me on the show yeah. Right. The implosion. I dont know what that means that were showing that right after talking about the tax bill the dome is going to be replaced by measure said yes benz auditorium. Its going to have, you know, Leather Seats and, you know its right next to it, i think, right is it you can see when they go up high, you can see the mercedes be benz is mercedes a stadium is it that nice . I guess thats the implication. Are you disappointed with that, andrew here we go thats the live shot im disappointed we didnt get it live. What if i would have told you it was live i didnt want to interrupt Kevin Hassett. It really made a difference its the same its the same shot receipts rerack is for andrew there there we go. You put the live sticker on it, accident and then people think its live. Coming up when we return, he with might have some more live shots of all this, but weve also got a new survey from netflix on where people are watching their favorite shows. Details about that after the break. Plus, former tivo zoe tom rogers on some of the deal news in the media sector check out european markets right now. Squawk box returns with some green arrows in europe in just a moment and the wolf huffed and puffed. 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. Where do you watch netflix. A survey by the streaming company and survey monkey about 12 of americans who watch Television Shows or movies outside of the home admit to having done so in a public rest room 37 say they watched at work about twotheirs of americans stream movies and tv shows in public hmm. I am not one of those people me neither. All right. Lets talk about the deal we have been watching at ts proposed acquisition of time warner has been snagging the cables of the Justice Department reports have surfaced that the department of justice is demanding a divestature of either direct tv or at t to gain approval with more on the content and carrier in the media landscape is tom rogers. Executive chairman at windview he is former tivo ceo, former president of nbc cable and one of the architects of cnbc. He is also a contributor here at cnbc, and, tom, its great to see you. Thanks for having me. Of all the qualifications we just talked about, one very important one i wasnt aware of is that you used to be senior counsel to the house of representatives telecommunications and consumer i spent six years on capitol hill you know this inside out about how these things work. Capitol hill has changed a little bit from my days there, but same crosscurrents when it comes to media mergers whats really happening here behind the scenes . What do you suspect . I have a very tough time believing that the government really wants to litigate this. It just doesnt have a very strong hand when it comes to antitrust law and it would be totally out of whack with the general messages when it comes to mergers and the Business Climate generally if you want a tough negotiation, you may want to sue and make it very clear that its going to be youre going to have to cough up something substantial its a negotiating tactic i think they actually im not sure they will sue, but i dont think if they do they want to take this the distance my guess is if theres a suit here, its a way to force some kind of settlement then you got to ask the question, well, what kind of settlement because i dont really believe trying to dislodge cnn is going to happen because i think at t will fight that all the way through. It could end up in the happened of somebody that changes the dynamics that the administration might be concerned about theres no business no. You got to ask yourself what happened here. I mean, they were going down a difficult path. Theres a foundation in antitrust for trying to force a divestature here this is what i dont understand about how this negotiation goes if you are randall stevenson, they file. You go all the way what if you believe that youre in the right and you believe you would win, says what could they get for them . Well, you know, litigating is delay. Its messy it is a tough thing to manage in terms of expectations of investors and the market when i think through if you believe here that cnn is really the issue, that somehow that that is what is underleague the governments position here, that the weight of the best outcome for them as a number of people have pointed to is some kind of behavioral remedy. Not a socalled structural or divestiture remedy best outcome for at t or the department of justice to look like they got something on this deal if you really want to mess arou around. Im not sure that the Justice Department couldnt insist on that as a settlement issue that would be isnt this a related issue. Fcc and antitrust jurisdiction overlap when it comes to cnn media concentration. Except the fact that cnn is not an over the air its not an over the air broadcaster. It would have nothing to do with the rationale for the fairness dolkt rin originally, but if you were looking for a behavioral way to put into a consent decree, something that would give the government ongoing policing power when it came to a media network, that would be an outcome. It sounds like you have a view that this whole thing is a shakedown. That this is some kind of white house mafioso shakedown because they want to look like theyre doing something or theyre unhappy about a particular thing thats happening is that whats going on here well, you know, you can you got to ask first is there some overwhelming competitive advantage that comes from putting content and distribution together like this look, at comcast, comcast owns nbc, owns a lot of both broadcast network and Cable Network. Whats happened to comcast its been losing video subs. Charter owns no content. Charter and comcast are really facing the same dynamics they have different starting points, but theyre both facing that is there really something about owning video that gives you some kind of unfair advantage in the marketplace . Look at direct tv and dish direct tv has the nfl ticket maybe the most prized exclusive conat the particular time you know, you have stepped away from it now a point has been made by certain people that maybe the comcas deal that some of the behavior that they were supposed to not be involved with that it has been a problem since that merger and that theyre worried about it now coming again with it. Has there been as the Justice Department, have they looked and say look what theyre able to do we dont want that happening again. Is that true supposedly there had been issues, and all channels have issues with distributors and im sure the Justice Department has gotten its share of complaints you look at the marketplace overall, and you really say has the ownership of content here really done something significant competitively . I think its going to be a tough argument given the past conduct of the government in this allowing vertical mergers like this for them to establish a case that says, hey, you cant do this. Then again, you know, media watchers and smart ones like barry said of all the Media Companies comcast is best positioned, so theres a reason the best position must have something to do with having all that content too its a daunting future comcast acquired Nbc Universal really smartly when you kprar it to the at t deal and ran it well and ran it well they acquired not only a Cable Network, but a broadcast network and a theme park for 25 billion versus 125 billion for time warner with no broadcast network and no theme park, and then they ran it very well that gives them a lot of positioning. Thank you great seeing you today great being here. Coming up, well tax tax reform and the upcoming battle with grover norquist. Well, have you seen her work . No. Is it good . Good . At cognizant, were helping todays leading banks make better lending decisions with new sources of data so, multiply that by her followers, speaking engagements, work experience. Credit history. That more accurately assess a business chances of success. This is a good investment. Shes a good investment. Get ready, because were helping leading companies see it and see it throughwith digital. What we do every night is like something out of a strange dream. Except that the next morning it all makes sense. To power global ecommerce Fedex Networks are massive, farreaching and, yes. A little magical. Fedex. Com slash dream another big hour of squawk box is still to come. Grover norquist will be joining us right after the break to talk about tax reform, and then Larry Haverty of cabela funds will talk winners and losers amid the buzz plus, ceo andy puzder will talk about the economy and jobs and taxes. Stick around squawk box will be right back. I used to have more hair. I used to have more color. And. I used to have cancer. I beat it. I did. Not alone. I used to have no idea what the American Cancer Society did. Research . Yeah. But also free rides to chemo and free lodging near hospitals. I used to maybe give a little. Then i got so much back. I used to have cancer. Please give at cancer. Org. Breaking news. A merger between two chip companies. Marvel buys cavium for 6 billion in cash and stock. Zpliefrmts saudi power shift new reports that king salamon could pass the reigns as soon as this week. The impact on the oil market straight ahead plus, go to amazon hq2 that will be coming to a city near you. Exclusive cnbc data grades the top contenders as the final hour of squawk box begins right now. Good morning. Wack back to squawk box live from the Nasdaq Market site . Times square im joe kernan along with becky quick and Andrew Ross Sorkin the futures right now havent checked them ecently theyre down about 25 and down ten. Look at the dow now down 18. 18 on the dow. Now three on the s p down about five on the nasdaq. Le deal skraets the biggest its a premium of 17 . Its where it traded before a ponl deal was first reported in november youre looking at cavium up about 6 this comes as theres so much chip news these days you got qualcomm moving a step closer, we should say, to completing its 38 billion purchase of chip maker nxp reuters setting to win antitrust approval from japan it may get the green light from european regulators by the end of the year. A few tweaks in concessions. Buying nxp could help qualcomm potentially fend off a 103 billion offer from broad ccom. Then you expect broadcomto come back with a higher bid we used to try to kill each other, and now theyre trying to create a graphics chip thats going to compete with nvidia strange bedfellows everywhere around i dont know that wasnt much of a fight over the years between amb and intel, right intel was definitely the leader you wouldnt have seen them teaming up like that theyre doing okay now. I mean, ive watched it for 25 years go between 40 and 2 20 and 2 20 and 2, and now whats the market cap at this point its a fraction of where intel is amds market cap 10 billion and then intel yeah. Actually, youre right. Intel is 208 billion goliath, david and goliath. Alibaba is investing 2. 9 billion and Sun Art Retail Group. The deal gives alibaba a morning 36 stake making it the companys second largest shareholder. It company sun art operates about 450 Stores Across china. Heres what else is making headlines around the globe german chancellor Angela Merkel said today that efforts to try and form a Coalition Government have failed. Merkel had been working for more than a month to try to negotiate with the free democrats and the greens after losing ground to a far right party in the september election if the coalition cant be formed, merkel could form a minority government or she could call for a new election, but there are concerns that the far right would pick up even more votes if they went back for a newer election on this you could see the euro right now at 179. 79. Rumors swirling that the saudi king solomon is ready to pass the reigns to his son it could come as soon as this week, but what could the transfer of power mean jackie deangeles is with us. Great to see you. Obviously, these rumors have been floating since the summer this isnt new news to the market, but the fact that we could see the torch passed from the saudi king to his son, crowned Prince Mohammed bin salman as soon as this week is essential represent ag shift of power thats very important. At 32 years old he is a driving force behind modernizing saudi arabia its no secret, of course, that mbs has influence there, but getting this official tiegts means absolute power, and that is a very strong statement how the politics of this will all play out and will be impacted by business interests that include oil of course, that ipo. Consensus right now that mbs or king mbs would be bullish for oil prices or at least keep them in the highend of the range also, remember, the saudis are the biggest opec producer and the new Energy Minister has been very strategic about the countrys role within the cartel thats likely to continue ahead of the opec meeting that were expecting on november 30nd you think theres i heard super some investors, some of whom were in saudi when i was there a couple of weeks ago, that theres now going to be a discount applied to the iramco ipo given what took place in ermz it of the arrests and this idea that theres going to be a confiscation of wealth its possible that thats the way it could go, but i have also heard the opposite that this is sort of a step in the consolidation of power its a step to prove to investors that they are taking measures to put the Different Levels in check. In a sense, to show that theres strength in their position and they would be more valuable to invest in. You can look at it either way. The tax reform battle now in the senate core. Omb did he we only need 50 votes in the senate instead of 60. The certain proposals could only have certain Economic Impact and one of the ways to game the system is to make things expire. The bush tax cuts back in the early 2000 did the same thing. They supposedly would expire after nine years what we tell folks is this if its good policy, it will become permanent if its bad policy, it will become temporary thats just the way that it is the senate versus the house why dont you lay out how you think the differences are between, and then well sort it out once it gets to conference what do you think . Sure. The reason why the senate should pass the bill the last week of november, the 40 hours of debate and then but the two bills as written, and theyre now written down, really mesh fairly easily. The house bill takes you to a 20 corporate rate immediately the senate bill takes you too 20 rate within one year theyre both permanent the house allows it 10,000 of property taxes theyre not in different planets. You know, one of them dent say red and the other says seven theyre talking about seven and five the changes that are there are significant. I know overall its going to mean a tax cut for a lot of people its going to mean a tax cut for Corporate Taxes. I just had someone who tweeted me and asked me to ask you he said sure. That the 10,000 annual property tax ek emshon is what he says his Quarterly Property tax payment is in new jersey he says there are gop voters in blue states too, and were not happy about this what do you say to people like that well, the people bho awho ar really unhappy, and we saw the state Senate President from new jersey say that when we get rid of the tax deductibility certainly of personal income taxes, and much of highend property taxes that even new jersey is going to have to rethink everything if theyre not subsidized by the rest of the country, so this is going to put a real challenge to incompetent governors and corrupt mayors to bring those rates down its not just a tax cut at the National Level this will stop tax increases in it the future and bring down tax increases particularly at the high end of the personal income tax and on property taxes. I cant imagine that happens overnight. Not overnight, but sooner rather than later, and, remember, if somebody says im going to lose a Tax Deduction here, youre also going to see the value of the stocks and their wealth go up as we increase the after tax cash flow of all these Companies Taking the rate from 35 down to 20 as well as for some chaubchapter S Corporations this will increase wealth in people as well as lower rates on taxes. Grover, cant you just buy real estate in texas and florida and hedge all your bets against whats happened . This is going to be a lot of people are going to move, arent they, in the meantime, and then these governments in new jersey and, no are going to get even more strapped, and theyre going to look like illinois. This will probably speed up unless california, new york, new jersey, minnesota quickly move to bring those rates to maryland and bring those high ridiculously high personal income tax rates down. I think that the democratic governorships will have to move faster rather than slower to fix those. Its want just a democratic governor, though you have 43 states that have the sales that have taxes like this that have estate taxes. That was what made enough people happy to pass it comfortably in the house that number probably stays right there. Soosz we pass this bill with 20, i will be joining with others and saying 20 was very nice 15 is important. Lets get moving 20 makes us competitive. If it starts to edge up why are you going to push this down to 15. Well, 20 begins to make us competitive. We have an average of 4. 8 state business taxes in addition to 20, so china is at 25 were at 20. The reason you cut certain taxes, rather than other taxes, is you want to maximize Economic Growth i think weve done a fairly good job with this tax bill to focus on job creation and growth thats why its a corporate rate reduction. Much more than an individual rate reduction reagan focused on individual rates. This is focussing more on thats for sure grover, i think you were talking about a higher bracket maybe when you said this isnt the worst tax bill, but its in the top 20 was that the provision for another bracket on the high end . Yes, the idea that steve bannon was floating at one point. For it happened a different way. On the high end, mnuchin said as much the other day to make more than 1 million, you are definitely youre subsidyizing a lot of the Corporate Tax cut by people that, you know, you call them wealthy. You call them rich i dont know whether you call them producers snoo there are a lot of people that voted republican. It almost is like you remember the last administration how rich folks can always afford to pay a little bit it always is going to be a little bit more, a little bit more. Thats what were getting. It will increase the value of stocks and peoples wealth, and the value, frankly, of all investments. Okay. You have to compare that to changes in one years incomes. The other one is when we leave out of the distribution tables its the person that doesnt have a job today who gets a job. Yes this is thats one of the people that left the work force during the obama recovery. Weve had a number of people leave the work force there are people like larry kudl kudlow. The passthroughs because that personal rate has gone so high starting with George Herbert walker bush and then clinton, bush temporarily moved it down, but not permanently. Then obama moved it up again, it keeps going up thats what whacks the passthroughs, and so you had to deal with the personal side. At least on the passthrough issue. Snoo what do you throw out instead unless you raise the tax rate to 23 , 24 , and then you meet in the middle for the passthroughs and corporate rate i understand johnsons approach its not a particularly expensive project line, and some or much could go through the other part of this number. You are prepared to take on more debt . Is that the issue . No, actually i dont think youll see over the next ten years an increase in projected deficit. Theyre only suggesting that growth will go up about half a percent or so. Would you net 2. 5 trillion. So you think the 1. 5 trillion estimate is wrong i think it understates the growth that we will get. If you went from again if you went from two to three, you would raise 2. 5 trillion. Theyre expected only to raise 1. 5 trillion. So it will pay for itself if we get the bill that theyre doing there, it will not increase the deficit from presents projections, which are pretty awful because we are left with pretty much a mess. Grover, good to see you thank you for your time. Good to he sue. Great to see you. A lot still ahead up next, let the games begin thats what one media analyst says about the assets of twentyfirst century fox that are in play. We will talk to the multimedia e eaghafr y harrity rit te thbrk. Pieces of twentyfirst sen country dpoks are in play, and as the next guest says, let the games begin. Portfolio manager of the Gabelli Multimedia trust. Well just start with whats attractive to whom i guess, larry, and then with the back drop of who could actually get pass regulatory muster to do some of this stuff. I understand that maybe comcast and some others are interested in the International Operations primarily of twentyfirst century fox. That would make a lot of sense, joe, but i think you have to start at the beginning. The 39 interest in british sky broadcasting, and that appears assist equity. Investors tend to undervalue it when theyre valuing fox, and from ruperts point of view, he cant get his hands on the cash that b sky b generates it generates mountains of cash you realize its not including b sky b. It doesnt compare to the bigger guys in the Media Business that it be Comcast Disney and perhaps a bulked up time warner. It really doesnt compare to the barbarians outside the wall, which would be apple, google, facebook, and amazon who in addition to having mountains of cash, a couple of them can spend the cash and wall street doesnt really care if they ever make a profit if you are rupert, strategically it makes sense to be a seller. Another consideration here, if you go away from the Film Production assets and go into the Cable Network assets, if you look at the Global Advertising market, you find that of the growth in the Global Advertising market, facebook and google are taking more than 100 of the growth dollars if you are involved in a classic all lean Media Business, are looking at ad growth for the next nine years. The best youll see is 0 . If you dont have good ratings, youll see a lot less than that. You have a series of Cable Network business that are strategically attractive to others. About the International Assets here. Fox is not going to be selling fox news or fox sports domestically theres limited regulatory scrutiny there, and the three buyers, sony would be one of them they have a small International Cable business cosm cast would be the other disney would be the third. Theres no big market dominance issues overseas, andrew. None at all. Okay, larry thank you. Appreciate it. The weather looks good down there. Better than here have fun coming up, when we return, does North Carolina have what it takes to win the amazon race exclusive cnbc data grading the tar hill state its coming up at 8 30 eastern time squawk returns in a moment were helping todays leading manufacturers make things that think and do automatically. Imagine that, a world of new Digital Products and services all working together for you. Can i borrow the car when its back . Get ready, because were helping leading companies see it and see it throughwith digital. Flexshares etfs are built around the Way Investors think. With objectives like building capital for the future, managing Portfolio Risk and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Today, the new new york is sparking innovation. You see it in the Southern Tier with companies that are developing powerful batteries that make everything from cell phones to rail cars more efficient. Which helps improve every aspect of advanced rail technology. All with support from a highlyeducated workforce and vocational job training. Across new york state, were building the new new york. To grow your business with us in new york state, visit esd. Ny. Gov. Squawk square good morning welcome back to squawk box here on cnbc, live from the Nasdaq Market site formerly known as times square. Among the stories, front and center, Marvell Technology buying chip maker cavium for 6 million in cash and stocks the deal creates a bigger competitor for chip making jants like intel and broadcom. Its a premium of 17 to where it traded before the possible deal was first reported in early november meanwhile, shares of toshiba fell nearly 6 in japan. The Company Announcing its going to raise 5. 4 billion from selling shares it helps toshiba avoid being delisted in japan. Boeing is secured in order for 75 737 max jets from avalon with an option for 20 more. The deal could be worth more than 11 billion of this prices. Avalon is an Aircraft Leasing company thats based in dublin, but is owned by chinas hna. Up first take a look at wall march. It raised its price target the analyst citing a powerful run in the stock, and that the retailer is delivering on the promise of i said positioning in the ecommerce space going guggenheim raising its price target from 48 to 52 ahead of the automakers event later this month, which will focus on autonomous driving. Then theres verizon upgrade by wells fargo from outperform to market perform. The price target is 50 from 48. Theyre citing several factors, including valuation. Should retailers stay closed on thanksgiving . Its a question we ask often, but four square is now out with a new study that shows the cost of closing on that holiday joining us right now is jeff glick, the ceo of four square. Jeff, its great to see you. Thanks, becky just to back this up, you guys are measuring mall traffic. How do you do that, and what are you finding . So four square has access to location data for about 100 million places in the world. We have about 50 Million People who use the four square apps and website each month, and then we have a network of other app that is use our technology and selected ones that pass data back were able to see when phones move in and out of 100 million places in the world. Therefore, weve done things like predict what chipolte sales would be and apple iphones 6s sales very accurately because foot traffic given 91 of the economy is still in consumer spending, and the real world is very closely tied to business. Its great data it raises my questions in terms of what it means from privacy. How are you able to do this . What we do is aggregate and anonymous. He dont ever dip into data, and privacy is very important. Were able to do that because a lot of app that is you use every day need location to function. So its our fault we allow this to happen because they constantly the app says can we tracking where you are, do you want this or not . For a lot of these app says you need it to work. We need every one of the data points thats consumer opting. Its an app that i leave on consciously because almost every day im thinking of all the apps i leave on every day we might sort of say, hey, its your first time heres what to order or we help other apps say, hey, dont forget the coupon that you have at this store or even an uber which now tries to leave on his Location Services or even when using the app. Uber only leaves it on for a couple of minutes before and after each trip because they got some pushback on that. Remember, we are essentially an alternative to google maps for 125,000 other companies that dont want to compensated on them uber and snapchat and microsoft and apple and ten cent and others and samsung who want to build really neat mobile experiences that are smart to where you are standing, whether its helping samsung through its camera identify what you are looking at automatically and tag it or an augmented Reality Experience its a great data set, and you can read a lot of insights into it. We had a retail analyst who joined us last week. The mall traffic would be down 6 , 7 , 8 this Holiday Season is that what you anticipate based on what you are seeing last year we predicted we dont have a forecast for this year yet, but last year we said it would be down about 3. 5 . We were accurate last year. I think the big question is we hear people the big shopping kickoff is should you open not on black friday, but on thanksgiving day while turkey is in the oven. Macys and walmart over th last several years that have been open on that time what do you think . Whats the analysis . Were going to not take on the moral question and whether people should be home, but the data shows it pays pays to open on turkey day. Absolutely we look the two different sets of data. First, we compared three retailers, jc penney, sears, and macys did that pay to open early it turns out that just by opening at 3 00 p. M. Jc penney say triple the normal traffic of a thursday their competitors had a much less compared only to jc penney, right . Jc penney same store sales were up 2 this last quarter triple. Triple normal thursday, which is big well, you know, they had they were up 150 for the whole weekend, so compared to competitors that we saw in 90 to 100. It didnt make up for it the other case that we looked at are the states that prohibit shopping on thanksgiving day theres three states mass marks maine, and rhode island we looked at what happens that day. Shopping in those states is down about 85 on thanksgiving day. It was only gas stations and pharmacies that are allowed to be open. Competitor states nearby, shopping was almost 80 of a normal thursday. Meaning you think theyre taking people from that state and bleeding them across the borders. We saw people from those three states going to new hampshire. They have a no sales tax and are open on thanksgiving day its a double whammy 60 of in fact, onethird of shoppers were from neighboring states onethird. 60 of them did not go home on friday and shop at all in their home state really the state loses sales tax revenue. Whether its jc penney opening early and stealing a huge amount of traffic from its rivals especially during the first two hours of the day, or whether its states that prohibit shopping we see people voting with their feet, and they want to shop on turkey day really Interesting Data come back. We have lots of other things we would like to talk to you about. Sounds great. Thank you. Come back next. I want to talk next monday thats what i what actually happened. About what actually happened. Invite us back. You are theres the invitation the invitation is open. When we come back right now, the amazon race. Could North Carolina be a top contender for the tech giants hq2 . We have a live update from the tar hill state plus, closing the deal on tax reform well talk to one of President Trumps former economic advisors andy puzder will join us you are watching squawk here on cnbc as we keep adding to it, guess who pays the bill . Him. And her. And her. Congress, we should grow the economy. Not the debt. Looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Snoo North Carolina has almost all the ingredients. A vibrant economy. Lots of space. Its no wonder the state has gone all in on the amazon race with bids from raleigh, charlotte, greensboro, and hickory. Scott coern joins us from the tar hill state this morning. Good morning good morning from raleigh yeah, this state really does have almost all the agreements again, almost. Heres the issue you remember that the state has repealed the most controversial part of its socalled bathroom bill known as hb2. Specifically they repealed the bathroom part. The state still does not have any nondiscrimination protections, and it also bars those protections at the local level. Now, considering that amazon specifically says in its request for proposals that it want only wants a diverse community, but it wants a community that supports diversity that could be a blot on an otherwise pretty strong record card for the three big metro areas in the state take a look. Im of the three, raleigh, the triangle area, the triadd in greensboro and high point and charlotte all have the million plus people that amazon wants. Well give them an a plus on that they do fairly well on stability and business friendliness. The economy as hit some speed bumps, so well give that a b plus the ability to attract top technical talent, thats where this inclusiveness comes in. That drops the state to a c minus. Greater thinking on loeks. Gets a bminus because the transportation infrastructure could be better. Overall still a b average for the main cities. We did mention that hickory is in the bidding as well nice place been there great leadership doesnt quite have the population it drops to a c minus. Weve got report cards for a two dozen cities up right now at cnbc. Com also later today, here from raleigh, we will talk to the governor roy cooper who came in on inclusiveness pledge back in november and still trying to get things reversed without a whole lot of luck. Well ask them how they make the case to he win the amazon race guys okay. Scott. Thank you for that we want to continue conversation now around tax reform. Joining us is andy puzdner, former restaurant ceo who is now an economics policy advisor with America First policies good morning to you, andy. Hey, andrew how are you . Im good, thank you weve been talking a lot about the passthrough issue and what the rate needs to be given the debate thats taking place in washington therefore, potentially what a corporate rate needs to be, and we want to get you to weigh in on that. I think the important thing to look at is what it takes to get money out of a company when you are talking about the corporate rate going to 20 for ccorps, you also have to consider the 23. 8 tax on Capital Gains. You are really talking 43. 8 to get money into peoples hands. The rate for passtraus, its a very complicated formula. Tax rates than people working at a regular corporation, an employee well, look, the amount what you are talking about is what these beam get from the business youre not talking about an income tax rate in the sense that you would for a normal worker no, i think the tax rate for workers, for everybody middle class and working class, theyre all coming down. I dont really see a situation where were going to have wealthy people who already pay or people that earn high income. Lets say the top 10 . You can be in the top 10 in new york, for example, and still not be very wealthy. People in the top 10 pay about 71 of tax right now i dont see that changing very much particularly with what theyre doing with middle and working class tax rates. Right i think if will create jobs i think well have more people working. I think theyll be paying less in tax let me ask you about that in terms of both job creation but perhaps just as importantly wage gains, wage growth given that the Unemployment Rate in this country is really at a remarkable low point at this moment if we have if the tax plan goes into effect and we have this conversation several years from now, what kind of wage gains do you think were going to see i think were going to start seeing very significant wage gains. Not only from the facts that were reducing the tax that were reducing tax rates and funneling more money into the economy, which is going to raise gdp and will create Economic Growth and opportunity, but also because weve got so many job openings at the moment weve got six million jobs openings plus for the past number of months thats a record since the bureau of labor statistics has been reporting the data weve got hundreds of thousands of openings in construction and manufacturing. If all those openings exist as is, meaning we havent done anything and we still cant fill those spots, how is changing the tax policy going to change that . I think you are seeing that were increasingly filling those spots. If you look at the percentage of people employed in the United States, its been at 60 plus every month since donald trump has been elected it was last at 60 plus in february of 2009 the first month of president obamas presidency we are seeing more people working, and we are seeing people we are seeing the percentage of people in the population that are working increasing, which increases competition for jobs the more Economic Growth you get, the more opportunity you create, the more competition theres going to be for workers, and i think youre going to see wages finally start to increase rather than simply wealth being transferred to people that already have wealth because stocks increase and real estate increases in values. We need to see those wages increase to bring people up from the bottom, and i think youll start to see that very shortly weve also had conversations about technology ewe had conversations about how technology is even impacting the restaurant business. If, in fact, wages were to go up and you were the owner of a franchise, for example, wouldnt you just decide, you know what, im actually going to use ipads at the restaurant table . It all depends upon how wages go up. If wages are going up so that you can increase your prices, that you can increase your prices, you have less pressure to lay people off. You have less pressure to automate if wages are going up artificially because the government is driving them up and you are unable to raise prices because the economy really isnt growth e growing, then ewe got a problem and you really do have to automate or look for alternatives. If youhave a growing economy that where people can charge more and can pay their workers more, youre not going to see automation to the extent you would see it with an artificially goofvernmentimposd increase in labor costs. A lot of this works together automation doesnt automatically eliminate jobs there are good paying jobs that come about because of automation people need those jobs we always appreciate seeing you. Spending time with you thank you very much. Always good to be here. Talk to you soon. When we return, jim cramer joins us live from the New York Stock Exchange well get his take on todays top stories. Here are the futures right now right at this moment turned around across the board now at 15 on the dew well be right back. Rays always been different. Last year, he said he was going to dig a hole to china. At t is working with farmers to improve irrigation techniques. Remote moisture sensors use a Reliable Network to tell them when and where to water. So that farmers like ray can compete in big ways. China. Oh. He got there. Thats the power of and. Down at the New York Stock Exchange, its unavoidable, cramer, your wife said just enjoy yourself. She was tired listen, live in the moment. Yeah. Mindfulness. I have one question and that is that was pretty shocking, i mean its the whole season has been Pretty Amazing but is anything short of at least getting to the big dance is anything short of that going to be a disappointment to you at this point at this point there are a lot of people in philadelphia who are thinking about minnesota im still thinking about home field advantage. We get that, im thrilled. Saw minnesota play the redskins and the quarterback, who i never heard of, and this guy theilen, they are formidable. They are, great defense does win but lets see because right now the eagles and the patriots have a good feel to them. They say brady, for his age, what about us, me and you and what were still able to do . You know, look i think we can still step in the pocket its the deep breathing we have a problem with and its always left wow. You worry about the patriots against the eagles well, they beat us in 2004, yeah, im worried. Same quarterback, incredible im thinking hes kind of guy, no, hes not wearing skechers. Hell get a head transplant. And cryogenically beating us in 2030. What about the market this week . Should we xbr. Its been a benign week for a long time. Maybe the president will get mindful about his tweeting maybe the first lady may say just get in the moment like you, yeah. Yeah, i mean, he can say listen, like the eagles, im going to enjoy it then we would have a pretty calm week. We dont know what the next is he going to spare the turkey or is that a couple of them got spared two of them. Like the elephant thing, we should shoot them anywhere we see them no, i think thats please. They are dirty birds. But elephants are very intelligent creatures. Yeah, elephants are different. Intelligent emotional creatures, theres no way im with you. My daughter was in a save the elephant Cambodia Program taking pictures and other people were shooting them. I like my daughters view. Me too. I like tech. You do. Corporate bonds, is that going to be the problem . Everybody wants to worry about those now. Since everyone else is worrying about them, ill look at other things to worry about. Two weeks ago it was because there was no volatility, so we got a little volatility. Worried about the vikings, i think youre right youre focused stop tweeting, shes right. I just want the president to be in the moment like i am, very mindful right now, like lululemon. If he tweeted as much as you we would be yeah, i mean it would be government by tweet. Kind of like government by half tweet. Well see you in a couple of minutes. Up next, youll never guess whos taking credit for inventing the selfie was that a hint . Is t. Was. Tho it wasnt al gore its all yours. Wow record time. 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Good then its time for power e trade the platform, price and service that gives you the edge you need. Alright one quick game of rock, paper, scissors. 1, 2, 3, go. E trade. The original place to invest online. Welcome back, were back in the chairs, a frequent guest on this program has a new gig this morning, former treasury secretary jack lew joining Lindsay Goldberg as a partner. They have 15 billion in capital and specializes in investing in family and founder run businesses the move marks a return to finance for lew who worked at citigroup in between cabinet level stints in the clinton and obama administrations. And who is it that invented the selfie yes, Anthony Weiner no, its not anthony he perfected it. A version of it hes in prison we should layoff him for a while no, okay. It was paris hilton making a bold claim over the weekend tweeting that she and Britney Spears invented the selfie 11 years ago. Users on twitter agreed with evidence of other selfies throughout history, including bill nye, the junk science guy and george harrison. Science guy. He doesnt have a degree in science anyway. Frank sinatra too in our ear right now cult leader Charles Manson died at the age of 83 the California Department of corrections said he passed from Natural Causes in a hospital he was serving a life sentence for ordering the murders much nine people, including the actress sharon tate eight months pregnant today. Married to roman polanski, bizarre. Seven degrees of separation. I dont think anybody is going to be missing him. No. It was predated, it was incredible i read helter skelter and i remember when he carved the swastika on his forehead. Some of them are still trying. I heard a charlie rose1986, ago. From my hometown of cincinnati originally. Hes a freak horrible keep an eye on futures today, weve been watching through much of the morning been just below fair value this morning as we get closer to the opening bell, dow futures up thats hot. Right now its time for squawk on the street. Thats hot. Good monday morning, welcome to squawk on the street. Im carl quintanilla. Thanksgiving week begins with modest gains focused lashlgly on how the tax bill is progressing. Analyst calls on mcdonalds and walmart. The tw
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