Ben bernanke will be overseas. Taking us overseas to the investigation of what brought down a russian charter jet and now its looking like a bomb may have been the cause. We have the details on that story in just a bit but before that well go over to michelle with a round up of the days top business headlines. Thank you. Expedia is buying home away for 3. 9 billion in cash and stock. This is the largest acquisition and come ace year after they bought orbitz. It values the socalled alternative lodging market at 100 billion and the home away deal will help it directly compete with airbnb. The chairman will join us first on cnbc 8 30 a. M. Eastern time to talk about the deal. The fed vice chairman says the central bank may be closer than thought to the inflation target. The 2 target may be hit once oil prices stabilize and the dollar starts rising. When is that going to be . Kraft heinz is stepping up its cost cuts. Announcing plans to close 7 factories and lay off 2600 employees in north america in addition to the 2500 job cuts announced less than three months ago. You knew that. Absolutely. This is their play book. Its a great line, costs are like fingernails. You have to always keep cutting them. Unless youre howard hughes. And then you let them grow and grow and grow. You have to save. The Beverly Hills hotel. I wasnt going there. What is amazing is so crazy but so many publicly traded companies will come from his brillance. Do you remember when all the clowns bought, like he decided hes going to buy gold because the Central Banks are going to be printing money. Its like bitcoin. It was so wellknown that that had already happened and we had been a in 20 year bull market and he finally decides that im going to and he was wrong. He was at 1900 on gold so now markets anticipate things. The dollar a agree with you. Conventionally hes going to say that arent you . That means the dollar is probably partially priced but not 100 . Theres people that say once the fed does move and theyre wacky wow, they might do it in december. Theyre crazy. A quarter point, seriously . But once they do that, they acknowledge that things are getting a little better and then you start worrying about reinflation down the road. The best thing for the market just like i thought in september is if they raise but say unless something really extraordinary happens were down for six months or so and lets see what it does. The reason i bring this up is janet yellen yesterday based on what she said, what sam fisher said last night is we are going to be the one central bank in the world doing ying while the rest of the world is doing yan. Thats in the markets. When is the next fed meeting . In december. December what . 15, 16. So we get two more. We get friday and another one. Jobs report . Yeah. They could definitely be derailed. For sure. But if we get 150 above 150 both times they should go, dont you think . Okay. They faked us out in october. They shouldnt do it again. I dont think. But if you get more and more stimulus from the europeans and the chinese in the face of us not doing nearly as much doesnt that push the dollar higher. No. No . All right. I have to do this microstuff. Stocks to watch, whole foods under pressure. Same store sales drop by. 2 . The company has been losing business to lower cost options such as traditional grocers. This is music to my ears and rivals like trader joes. Why is it music to your ears . The whole pc, preservative free, gmo free, you know, people have no idea whether this stuff is actually better for them. Theyll pay twice as much for it because of what they you know isnt america great. Yeah. Pay twice as much for stuff that probably has a better chance of making you sick because its not preserved properly. Anyway, shares of fireye getting slamd. I have a special place in my heart for whole foods. I love him. He grew up and actually read some things and went from a total liberal idiot to someone that understands the way the world works. You remember his op ed when he wrote about health care options. It shows theres hope for everyone if they just educate themselves. I just want to put it on record. Were making it going to move this network. Oh my. Shares of fireye getting slammed. Citing a lower demand for its products as china as the u. S. Crack down on cyber spying. And qualcomm also under pressure right now. The current quarterly forecast falling well short of consensus. Blaming strong competition from rivals in asia and delays in new Licensing Agreements in china. Andrew, facebook is worth more than ge. Is that right . Thats true. Dont say anything bad. Thats true. What do you want to say . Pick another company that you like a little more. I was joking. But 300 billion. 300 billion market cap. In the dot com error. Free market. Thats why theyre doing so well. Thats true. I want to put something out there. Theyre growing. Theyre growing. We like that. In the old days during the. Com bubble faber would do annoying comparisons. Aol is worth this much and find three dow components and you could buy all three. He called them or you did. In terms of breaking news and stuff like that. Theres worse people to copy. I very much would like to follow in his footsteps. Very happily. Beating the street on both the top and bottom lines the social networking site reaching 1. 55 billion 1. 55 billion monthly active users, rather. Take a look at shares in this hour trading up in the premarket now. Keep in mind theyre not in china. And theyre not in china. Thats a big number. This is really making america great. I just want to say. And over the last two years, they have more than doubled. No, this is an amazing thing for the country. And then all the tax dollars. And when they get to china theyll be able to have pictures of two children now rather than one. Yeah. Were tying it all together. Tying a lot of things together. Lets bring in james right out of the gate. Senior analyst this is going to be tough. So how high can the stock go and is it now so built in that the expectation is so high Going Forward . You have to understand what the big picture is and investment in facebook is. Advertisers want data. They want audience, 1. 5 billion users and advertisers want the ability to target on a demographically segmented basis. And when you think about the add market, companies are either going to one, brand advertising or direct advertise chg is google. Heres the secret sauce. The fact that they can do both and thats a very rare Value Proposition and rare read and theyre only 3 of the add market today. When you talk about can it get bigger . Absolutely. Is that a secular shift or theyre offering more products. There was a time when we had big stories about companies that didnt want to advertise on facebook because they didnt think they were achieving anything by doing so. Whats happening now. Its accelerating. Up 54 and the reason its happening is users are growing, yes but at the same time theyre able to extract greater share because theyre able to tackle the full barbell of advertising brand and direct response. So youre going after dollars that were historically on television with their video and now up to 8 billion daily views per day. Youre going after dollars that were predominantly searched with new product adds and get them to engage with them with sufficient roi. With things like that coming together and the fact that youre only 3 penetrated and the dollars are flowing in that direction. Where else are you going to put your money . Google or facebook and facebook definitely has much more of a balance. If you look at the multiple on facebook relative to the multiple on google, either facebook is too high or google is too low. Well, facebook is also growing a lot faster and actually i did something rare in interview, i changed my multiple to a pe multiple and the reason i did that is because now were earning real dollars. We can get 4 per share in 2017 and this is real dollars with 60 plus margins so i think that, you know, the Companies Earnings are going at 30 plus so i they you can really make the case with a fundamental valuation that this stock is reasonably valued even at these levels. Whats google growing at . Google is growing in the high teens, 20 . One gets 20 and one gets 30. What are the relative multiples now . Those usually arent good. Yeah. And they also dont factor out. What do you have the multiple of google at right now . 20. Its around 25. 25. Facebook is around 30 or 35. What is your sense about what this says about everyone else in the business . Is this where facebook gets it all or shows how much business could get to a twitter . Its a good question. We actually like twitter for a turn around perspective but were seeing their weaknesses. We have more transparency to show what facebook is doing right. The ability to cater to small businesses. 2. 5 million advertisers compared to twitters 100,000 and the fact that they are able to grow their advertiser base at the same time and these are with the analytics component so when you think about it, there is a place for twitter but its going to be more niche. Facebook i think the runway at the 3 penetration has hay long way to go. I get mad when i have an add from twitter. I assume that people on facebook welcome the customized stuff they get. They dont feel violated when an add comes across facebook. With twitter i use it for a reason. Im not using it to find something to buy. Im using it as a news stream or Something Like that. How are they going to final laid ver tiez without making users angry that theyre getting sold something. Joe doesnt use his facebook. Do you get upset with facebook ads too . Theyre suited to you, arent they. Theyre sneaky. I dont like any of the ads because theyre all so sneaky. Theyre sneaky because theyre attached to something i have done in the past week or two. Or ten of your friends liked the following. What kind of weird products i dont even want to know what theyre trying to sell you. Ten of your friends liked this and its in your stream. I went to the tommy john website and now all theyre trying to do is sell me tommy john underwear. Avoid the other sites. Kale chips and things like that, right . Chardonay. Sprouts. All right. Facebooks ads are the Gold Standard of the quality ads. Its difficult to replicate that but the thing to keep in mind in facebook and to your longer term opportunity question is this company has more on tapped growth levers than any other company out there. Instagram, messenger, whats app, oculus, theyre zero today. When you think about the multiple and growth rate, the headlines are reading that expenses are growing so fast. Once that starts to kick in next year the financial profile is going to look more attractive than it is today. Thanks. I like all the dumbbells. I got that from tim armstrong. Did you . Yeah. The barbell strategy. Direct response. All right. Anyway, do you want to thank andrew . Well, youre great. Im grateful that youre here. Im grateful for america. Right. Good. Were going to think big now. Were going to go macro. I tried to start big picture. You did. Thank you. Now to the broader markets joining us, and covering the economic angle we have jim osullivan. Are those the most important indicators that will help make the decision in december . Presumably. Ultimately their key preconditioning for tightening is what they called some further improvement in the labor market. But they look at the weekly claims numbers and other numbers but no question theyre key. Is 150 enough . Both numbers . I would say so. I think it depends on the details but ultimately 150,000 a month is more than enough to keep the Unemployment Rate coming down. The criticism was last time that maybe they wanted to go but they hadnt told the markets clearly enough they were going to go so she seems this time to be more outspoken. She is saying things like im going to do it, right . No, the presumption now is they probably go unless we get weak numbers really at this stage or theres more turmoil in the markets, et cetera. But theres still a lot of time between now and december 16th but were getting there in term of the numbers right now. Now you dont have anything to say . No, i was going to bring up yesterday she sounded like she really wanted to hike. So but lets move on to the previous discussion we were having then which is the dollar moved sharply because of what she said. How long do you expect that to last if in theory its only one hike. It wont be one hike. If they do one the expectation is more than one. Hold on. I thought we said one and then done for a long time. They never said that. Absolutely never said that. Theres no point to doing one. No. I mean, they keep emphasizing its the whole trajectory that matters and we expect to be gradual et cetera but under no circumstances are they saying theyre doing just one. I remember you not being as bullish all yearlong and you have been right because were just flat. Were just finally up again. Has that changed at this point . Im usually bullish and i have been a little bit more cautious so far this year and im still a little bit cautious and we look at the numbers. So Earnings Growth is here, pretty much flat. When we look at next year, the expectations are for 9 growth but analysts are always optimistic so that will fall down to 2, 3, 4, Something Like that. So i think were still in a bull market and youre still going to see a rising trend. I love that we had such a great rally starting in october when we get the last bad jobs report, i think were fairly priced here and fairly balanced in our asset allocation. So at the beginning of the year were you a 6 or 7 overall equity gain for 2015 . We may end up there . Thats more or less the pace were on. One or two good or bad days will make a difference. That would be so logical and so many people would be right. Can that happen . To get here weve had quite a ride. I really think october was a great month and a lesson of the stock market because i think actually the caution that hi was pretty widespread and then bad news became good news again and so that bad jobs are what sparked the rally because it pushed back expectations. How did we miss the bottom . We kept asking people trying to figure it out and never thought it was there because everybody said we have to retest the lows and no one ever range a bell did they . No, no. He did. Ramon james. When he shaved his mustache . No, he came on the air and said he had a model. Remember this. But we already bottomed, hadnt we . No, he told us within days prior, two or three days later were going to be it and then he has a new model if i remember correctly that suggests were going to be near the top again. It didnt strike you that morning when the dow dropped a thousand points that that could have been a moment of panic. That was a miniflash crash. Mini, it was huge. But it lasted a very short time. If it was buying that morning at 9 31 those prices were not real. Okay but still in retrospect look back at that moment and that was it. If youre going to get 2 on your Treasury Bonds youll do well with stocks. That always happens with you here, doesnt it. Im sorry. People at home, they dont know what was that . Either my microphone or you dont have a belt. No. Wear a belt. But he has pants at least. Sorry. Next year gdp get out and go to 3 . At this point if we havent seen it yet i dont think it will happen. 2 or 2. 5 gdp growth is enough to bring down the Unemployment Rate. Or a mature western developed economy that doesnt deserve more or we have policy a lot of it is secular slowing and labor force growth. Overtime product activity can do better. Realistically you dont expect it to explode at this point in the cycle but overtime it can do better. We have to move on to these other issues. Thank you, gentlemen. Switching gears, the search for bodies in the wreckage of the russian jet that crashed in egypt is supposed to wrap up this afternoon and now a new concern. Its looking like a bomb may have been the cause. Tracie potts has the latest from washington. No hard evidence. Theyre trying to verify that but its a strong suspicion by the United States and Great Britain and russias air safety regulators decided to ground the rest of metrojets flights while they check for safety. This is new video we just got last night. Debris still smoking two hours after the crash. Now a u. S. Official tells nbc its likely a bomb may have brought down this russian jet. Possibly planted by a baggage handler at the egyptian airport where the plane took off. We cant rule it out but its premature to say that this is the cause. Great britain suspended flights to and from that airport calling the bomb theory a significant possibility. Perhaps retaliation by a wing of isis in the sinai peninsula. Russia has recently increased its presence in syria and so the fact that isis may want to respond is not unlikely at all. Giving an explosive device on to an aircraft in this region is a real game changer for security. But not a huge concern in the u. S. Experts say where security makes it extremely difficult to get explosives on board and its still possible this plane suffered mechanical failure. No matter what happened, our hearts go out obviously to the families. 224 people died. The planes black boxes will tell more. One is damaged but so far, no evidence of a bomb has been found at the crash site. So theyre still looking for that hard evidence. One thing that we do, u. S. Satellite images picked up a heat flash in the very area where the plane was last believed to be but that could also be as a result of mechanical failure. So strong suspicions now by the u. S. , by the british based on communications, circumstantial. Theyre still looking for hard evidence on the ground. Thank you so much. We appreciate the report. When we come back, big swings in the currency market and why some say the u. K. Central bank could lift off before the fed. Plus a cnbc exclusive with elton john. The music legend has strong words for Vladimir Putin and the queen. But first heres a look back at this date in history. A special guest on set with us this morning. Wilfred frost. All the ladies in the office are on twitter because youre so tall. Facebook. Nobodys ever a took but theyre a twitter. The height has been mentioned everywhere ive been. Maybe british people are taller than americans. There we go and Worldwide Exchange anchors perhaps. Bank of england later this morning. Yeah, its in ten minutes time t decision and things are shaping up in the u. K. Similar to the u. S. We almost have the data there ready for a rate hike. I dont think well go before the u. S. But we have blowout manufacturing pmi on monday. That was a 16 month high. Services pmi which is more important in the u. K. Unemployment on most counts has been low for awhile. The issue really remaining for the