Morning. Five banks have been hit with major fines. Kayla tousche joins us on set with some of the details. This is the settlement weve been speccing for weeks, for months. An 18month investigation by authorities in the uk as well as the uk as well as switzerland have announced a joint settlement with five banks, urging them to pay more than 3 billion to settle charges of key Foreign Exchange rates in the 4 00 hour is when most of the activity, according to the press releases, happened. Its going to be a costly one for many of these banks. Ubs will pay the most at about 800 for a threeway settlement. The cftc in the u. S. And the federal authority, as well. Citibank will pay 668 million to the fca and the cftc as that Bank Adjusted earnings by 600 million just a few weeks ago as it was setting aside more money for this settlement. Jp morgan chase will pay the two u. S. And uk regulators. Hsbc, 618 million. Even though these are pretty big sticker numbers, guys, it does seem like pretty small change compared to at least what we saw in terms of the mortgage settlement. Bank of america, some are paying 17 billion to u. S. Regulators. But, of course, with most of these issues, the banks arent out of the woods yet. The investigation is ongoing. We had expected the occ, possibly, to join the settlement. They are still working on their findings as well as the Federal Reserve as well as the department of justice, which currently has a criminal inquiry ongoing into at least a few of these institutions and, of course, fact finding and discovery for those situations is still going on. But, guys, when you look at the press releases and some of the chat room activity between these bankers as they were saying, hey, ill pat your back if you pat mine. As it is, it is pretty bad. In terms of trying to figure out how much more incline there may be, on the criminal stuff and the criminal litigation that may come as a result of this. Well, of course, the civil litigation part will be estimated by what we saw with lib libor. Remember, when we saw some of these settlements with authorities over what the banks are doing to rig benchmark Interest Rates, you had fannie and freddie coming out, a lot of these bonds coming outs saying, wait a second, ive been cheated out of a lot of business income. If you were artificially Holding Interest rates lower, here is what i should have made. In the Corner Exchange market, its harder to sclakt exactly what the price luktates in some of these currency swaps and bench rates should have been. How do you calculate that . No doubt people will try, though. Kayla touche, thank you. Yahoo is buying video ad service brightroll for about 640 million. The deal will make yahoo s video advertising platform the largest in the country. Brightroll is a member of cnbcs disrupter. Just because i dont remember having the guy on doesnt mean we would have it. Do you know . We havent had the ceo price at all. Im not sure weve had the ceo. Hes got a young mind. I dont know about that. Its actually very full company. Were going to talk about that. You are going, right . We can talk Programmatic Advertising, what its worth, whether they will be paid. I have lots of questions. So if i go out tonight yes, sir. Having cocktails, Programmatic Advertising. Programmatic, naturally. Yahoo entering the programmatic theyre getting more into the more into the Programmatic Advertising space . Programmatic . You dont know. Programmatic is a way in which media buyer res paying for advertising. Like on a Program Effectively in the say wait a minute way that google allows you to take a word and people bid up words, its sort of like its not like programs on television and it allows you to no, it allows you to buy up inventory, but as a result it makes video advertising much cheaper. On the web . On the web. Advertising on the web, but pressure video probably will pressure Everything Else because tease what it does. It also potentially puts them in the place, they bought tumblr. Could tumblr turn into a youtoo issue. If i were to go to yahoo you havent been in a while. I havent been in a while. But if i were to go there, i would say what i can do some serching and mail . And it would accrue to somehow my searching would be monetized with this new product or something . No, no, you might see video there. Okay. I see some video that might be bright roll video . You might see video and you might see advertising on that video. And that advertisement would be bought for platform, if you will, called brightroll. Okay. You would never see brightroll as a consumer. Got it. How is the price . Some people say its you recall at some point it relates back to katie couric. Why . Because thats where youre going to see video talent starring her with this new advertising in that video. Also and id be remiss if i did not mention this. We know, of course, where katie couric made her name. But reruns of the other greatest late night show ever to grace the air waves, saturday night live. On they have reruns of that, too. In other news on yahoo good, i needed some more, reuters is reporting some can i call them unhappy yahoo campers, andrew . Investor campers. Investor campers. Calling on aols Tim Armstrong for a rescue asking him to explore a merger and run the combined company. There are currently no talks between the two companies. The most recent push by some yahoo shareholders followed the campaign from Starboard Value and in full disclosure i forgot about this. Cnbc and yahoo have a Business Alliance to share and coproduce editorial that is yahoo shareholders pushing for this. Aol has not been involved. Does aol have any active i heard theyre not proposing a deal, theyre not involved. Theyre just reacting to the yahoo shareholders. In that instance, theyre talking about Tim Armstrong running the combined company. And other shareholders are trying to get marissa to run. These are yahoo shareholders pushing for Tim Armstrong. There have been aol who pushed to they go to marissas world. Interesting. You always want something you dont have. Bill ackman is pushing square, announcing an 8. 5 stake in Animal Health companies. The companys shares of that company have risen more than 30 this year already. I dont know and then he want that company a lot about the weather. I dont, either. But im is that it . It is. Okay. The lettuce. But Animal Health company. It is an Animal Health company. And he wants this company sold, doesnt he . Yes. I think he wants a higher stock price. Wants a higher stock price for now. Lets check on the broader markets had this morning. If youve been watching the futures, at this point, futures are indicated to open a little bit lower. Dow futures down by just under 29 points. S p off by 4 points and nasdaq off by 7 points. At this point, oil prices down 56 cents. But below 78 again. Its 77. 38. Take a look at whats been happening with the tenyear. At this point, the syria note is yielding 2. 33 . If youve been watching the dollar, it is down against the yen at 115. 25. Take a look at whats been happening with gold prices. At this price down slightly, 1,116. 30 an ounce. Let me take that back. 1 162. 30 an ounce. Sorry. The s p on a fiveday winning streak, barely, though. Joining us now, clause tanzien. Ed, weve been people on talking about maybe, you know, two or three percent gains before the end of the year and only 8 to 10 next year. Is that did happen is this sort of petering out, this sixyear bull market . We think the long bull market that we have expected is ip tact. Id say were about halfway through. So its intact. Go on. So we survived the pullback in october which wasnt even a correction in technical terms. It was about 747 at least in the u. S. The foreign markets shaw a much sharper decline. But weve had a pretty stunning vshaped recovery here. We think we have some momentum heading into yearend. Were up about 10 , though, and if you tack a 2 dividend on that, thats a 12 return. So that is more than we were speccing going into the year. But theres nothing to suggest we cant go higher, still. Clause, it all hinges on us being able to with the training wheels of qe off, the underlying economy now, its almost consensus that we have upticked the 3 . Is that true . Yeah, i think so. At least as you look at where the data is going at the moment, you know, the u. S. Economy is still amired in debt. Too much debt in the economy. But if you look at the data coming in, you take data at face value, the economy is doing quite well now. And alongside the discord, which keeps on hearing about this, you know, we have too much debt. We have not really solved anything with qe. Weve actually seen some data come forward and maybe that is also one of the reasons why the market is holding up. Yeah. You say if we take it at face value. I dont think youre trying to step into the reporting of the numbers, but people arent able to move to a higher paying job right now. Some people have left the baby boomers and others have left because thief given up. Do we grade that on the curve a little bit . I think you should grade it as you say. It goes back to your point about taking the training wheels off the economy. Qe has been a in some terms a distorting factor here and low Interest Rates, Monetary Policy across the world has been a distorting factor. And it has helped and we have seen improvements. You compare that to the eurozone economy, you definitely see signs of improvement and were seeing signs that the improvement which has happened is not just about to peter out. Do you think the economy is definitely Strong Enough to take the training wheels off . We think weve been stuck in this 2 to 2. 5 growth mode since the crisis. But we think the u. S. Growth is shifting into higher gear here. We expect 3 to 4 growth over the next couple of years. And if there was one thing that happened this time around, as to differentiate it from is swoons we had when we felt we were on track before, what is it, unemployment got down into the low 6s . I think thats part of it. The labor market is starting to heat up in terms of payrolls, where significantly ahead of last year on percentage terms. And we havent been getting wage growth because we think theres ample slack and thats what allows the fed to go slow. Auto is good, but housing just housing is you know, its still recovering from the lows. We expect it to run further, as you mentioned. Autos have come back, but theyve really just gotten back to the channel that they were before the crisis. So we think a lot of these sector res pent up demand and we expect a cap ex recovery. Na is good for companies. Than by the conzoomer. Okay. But the consumers get more confidence, that could be one of the factors. Free cash flow is surging given surging . Yeah, given the decline that were seeing in energy costs. So, you know, if you look at personal income minus financial obligations minus energy costs, we see that on a pretty nice trajectory. There are two stories here with the oil price and the commodities. One is the story that when if you get a decline in the expectations as a result of low Global Demand in china beyond a certain level, you get a very bad situation for the market. But the other story, you have low oil prices, low Energy Prices which provides a boost to your income and if that happens in the context of economies which are growing still, i do think that we will see the possible effect from that. If you were not the economist, but the market the santa claus. Will there be A Santa Claus rally clause . I think so. Youre not really the stock guy, but your name is clause. He can make market calls. But you did ask me and i did, yes. Id say given the kind of recovery weve seen from the lows, this was a classic correction. We see in this market was a very, very strong bull market. You get a correction. People say now its different, now the market is going this is different and the market just youve done tv. You came in here. Thank you. Thank you. Im going to go with you on this. Youve got a november, a novembeard. November and december are typically good months for the market. Yes. Were sitting at about a 16 forward pe racho. So youre on the santa claus rally. I do think we end up higher. Yes, thank you. Then weve got a lot more from you guys which we appreciate, for nothing, nor cost. Okay. Coming up, a dangerous deadly winter storm is hitting the nation and now the east coast is bracing for chilly temperatures. Were going to get a forecast from the wh channel next. Plus, a crazy story out of manhattans diamond district. A jewelry heist in the middle of the day during veterans day parade. Police are still looking for the armed men. A live report from the scene when squawk box returns. You, my friend are a master of diversification. Who would have thought three cheese lasagna would go with chocolate cake and ceviche . The same guy who thought that small caps and bond funds would go with a merging markets. Its a masterpiece. Thanks. Clearly you are type e. You made it phil. Welcome home. Now whats our strategy with the fondue . Diversifying your portfolio . E trade gives you the tools and resources to get it right. Are you type e . The ultimate arena for business. Hour after hour of diving deep, touching base, and putting ducks in rows. The only problem with Conference Calls eventually they have to end. Unless you have the comcast business voiceedge mobile app. It lets you switch seamlessly from your desk phone to your mobile with no interruptions. Ive never felt so alive. Get the future of phone and the phones are free. Comcast business. Built for business. Let it snow, let it snow. Alex wallace from the Weather Channel joins us. In colorado, i think its going to be zero or minus one . Yeah. It is pretty brutal. It is only november. That cold air mass you were just talking about is situated in the middle of the country. Hasnt quite made its way to the east coast, ewe its its going to happen. This will modify so we wont be talking about below zero readings here on the east coast. We will get notice on the cooler in fact in the late week highs will drop anywhere from 10 degrees to 20 degrees below average. The day is going to be above average. Youll start to notice tomorrow, those blue shades start to take over and that means chillier conditions. In continues cincinnati, 36 degrees on friday. That is your high youll manage for the day. In rally, you go from a high today of 71 to friday, only 46 degrees. Youll notice a drop in pensacola, as well. And in and across the northeast, boston from 60 to 45. New york 60 to 45. D. C. Also going from the 60s to the 40s. So its not untolerable air and cold. Its just a drastic drop in such a short order of time. Guys, the thing about these air masses, its going to be acting for a while, at least through the weekend. The eastern half of the country, below average. And back to you. We could have cold weather last all the way to the spring in some cases, alex. Normally it works that way. Yeah. You never know when its going to end. We know its coming, still dread it. We know its coming. We do like the snow. Lots of snow. No . I like lots and lots and lots out west. Lots out west. Lots of white snow. When it gets mucky and dirty and its going to happen, too. Yeah. Rockies, nice space, nice stadium. I know, i know. Right now, lets goat to a story that sounds like a movie script. A jewelry heist in the middle of new yorks diamond district. Catherine joins us with that story. Good morning from the diamond district. Around here, you cant walk two feet without getting photographed or an image reported on west 47th street without one of these new York City Police cameras recording you and inside this building. That is where the storm is rotated. The Business Club is on the eighth floor. Police call him suspect number one, the trench coat wearing six foot tall man who posed as a deliveryman to get into the store. Suspect number two acted as a lookout. Around 2 30 p. M. In the afternoon yesterday, with so many police officers, clouds of people on 47th street. These two suspects casually walk into the building. Police say they held guns to employees and told them to put watches, jewelry and cash in a bag when the owner walked in. A subject hit him over the head with a gun. Despite numerous officers arriving on the scene, members of the squad team, that suspect took off and got away. We talked with the jewelers at a store nearby. He believes he saw one of them running away, but he also told officers told him and other people, they didnt know how many people they were trying to find. But, again, two suspects still on the loose at this point. We send it back to you. Were hearing that its possible as much as 2 million in jewelry, watches and cash were stolen by these two. Back to you. Catherine, thank you very much. I want to bring your attention this morning to a worthy cause. Weve been talking about it for the past couple of weeks. We are auctioning off a chance to come to our set, take a tour of cnbc and have brefktd with all of us. Its to help children foster chaefbivety and resilience. Its charitybuzz. Com lulu leo. Today is the last day to bid. We should tell you, miles nidel is the current winner at the moment. He is the high bid, so you can go join line and try this. Miles, hes listed online. What else can we offer . What else do you want to offer . Like you can see read my headline. And interview you . And read my name. I might not answer. Are you ratcheting up the price right now. You can sit here for a while if you want. In fact, ill ill stay out that day. Im willing to do that. Ill stay home if you actually, that could really rachet up the price for some people. Up next, the countdown to the black friday is on. Major retailers are starting to reveal their big planners for the big deal. And the details on that, plus a look ahead at the flood of earnings in the sector. Want to return, as i said, were going to head to break and well take a look at yesterdays s p 500 winners and losers. There you can see zoetta up almost 9 . That was yesterday. We needed 30 new hires for our call center. Im spending too much time hiring and not enough time in my kitchen. [ f