Worldwide exchange. Good morning on this holiday week. Lets get to the market picture. As we said, we did have declines for the dow and the s p last week the nasdaq was able to hold on to a 0. 4 gains came on slight losses on friday as we said for the week its held slight declines, two in a row for the dow. This morning we are pointing low. A little bit of weakness and thats fed into futures markets. Dow is down 13 yields slipped again last week ending at 2. 35 on the ten ear. Weve slipped a little further over the week end. 2. 34 at the yield on the ten year, short end of the curve they have seen yields rising so that flattening. Its a bearish signal. Its been one of the biggest stories over the past week we turn to asian equities, really a mixed session there today. We saw the japanese nikkei close lower again today down. 6 of a percent. Man, talk about a reversal of the chinese stocks the hong kong hang seng is up. 2 of a percent shanghai composite up. 3 of a percent. Thats after starting the section lower on concerns of new financial regulations in china if we turn now as well to europe weve seen red arrows across the board there in this section as well the german dax down. The biggest loser today, thats down. 2 of a percent. Marginally lower today the big headlines there, the fact that Coalition Talks in germany are breaking down. So thats why were seeing that there. We are. Were going to come to that story in more detail given that weve had this huge global rally of late, both germany, france, china, and japan all down more than 1 last week it was profit taking across the board, not just in the u. S lets have a look at other asset classes. Oil prices did enjoy a nice bounce on friday wasnt enough to put them into positive territory it was the first negative week in six all happening on a great run. Down a fraction this morning, 56 point be point 5 wti dollar board, we did see the dollar slip last week. The broader index down 0. 8 . Most of that was against the euro the euro up 1. 3 last week interesting that theres not a move in the euro not too much of a move in the german dax based on the Coalition Talks breaking down. 11794 the price of the euro. The pound enjoying a little bit of a bounce. The chancellor will present his budget to parliament on wednesday. Gold prices just to round things off up on friday up maybe 2 last week. Today not doing too much slipping to 1291. It may be a holiday shortened week, but theres plenty of data on the agenda. Look forexisting home sales on wednesday. Weekly jobless claims, durable goods and Consumer Sentiment the markets are closed on thanksgiving and are only open for a half day on friday but it is black friday. There are about a Dozen Companies in the s p 500 reporting earnings this week notable names, lowes, campbell soup, sales force and both hp ink and hewlettpackard enterprise reporting this week as well. The graphic there very nice. In Corporate NewsMarvell Technology is with a deal to buy the chip maker Marvell Technology is going to announce a deal to buy chip maker cavium for about 6 billion. Theyll rival giants like intel and broadcom 50 cash and 50 stock valuing cavium at 80 or more than a 17 premium before the deal was announced in november. They have talked about producing semiconductors and cavium is in networking and communication a combination would reap significant cost savings following years of cost saving the deal is another move towards chip maker consolidation earlier this month broadcom, shares of marvell have jumped 45 . Cavium up. 2 of a percent. Its completing its 38 billion purchase of chip maker and xp reuters says theyre going to win antitrust approval it may get the approval at the end of the year with a few tweaks to its concessions. Buying nxp could help them fend off the 100 billion bid from broadcom it is peak chip consolidation right now. I almost cant keep track of everybody whos trying to merge with everybody else. The attraction is even brighter for broadcom if the nxp goes through theres the ability they have to fight off any potential bills. Peak consolidation continues. In other Corporate NewsGeneral Electric is preparing to undergo a major board shakeup. Last week ge Ceo John Flannery told investors he wanted a smaller board with 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. Front page story suggest two of ges longest serving word members will go. A lot of focus on ge. Absolutely. If you look at the dow and the s p both closing the week lower last week, both led lower by ge. Stock plunged about 11 . So hasnt baker hughes that hasnt been discussed much. Ge has said theyre going to exit that investment if you want to get an idea who potentially stays on the board, theyve dug through the insider activity for this stock. Over the summer as we were getting this management shift a number of Board Directors actually bought into ge. Some names that havent purchased in the past or hadnt purchased in a couple of years jack brennan, which you just mentioned who purchased but james tisch, he bought 100,000 shares back in august. James rohr, james beaty, names of some Board Members all in on ge. All committed and theyll keep their seats because of that i think its a strong possibility. Theyre also relatively new compared to some of the folks like andrea young. Ill bet they waited to buy until now. Would have been be a better price. Moving on. Some other stocks to watch. Other stocks to watch, we have alibaba investing 2. 9 billion in chinas top grocer, Sun Art Retail Group it gives them a 36 steak. Making them the second largest shareholder. Sun art operates Stores Across china. Sun art is down 4 checking shares of toshiba, the shares fell nearly 6 in japan the company raiannouncing it wil raise 5. 4 billion it will boost toshibas assets back above the liabilities and help it avoid being delisted in japan. Those shares down 6 right there on that board. Boeing has secured an order for 75 737 max jets from avalon with an option for 20 more. The deal could be worth up to 11 million. Avalon is an Aircraft Leasing company leased in dublin its owned by chinas hna. Shares of boeing about flat in premarket but this stock, boy oh, boy, has been on a tear this ye year. It has indeed roche announcing a double dose of trial news. It says the immunotherapy in combination with other drugs cuts the risk of lung cancer getting worst. The hemophilia drug stops the risk of bleeding looks like thats the german stock listing. The main listing is in switzerland. Etsy is launching a 100 million Stock Buy Back Program its down 4 . Verizon has been upgraded by wells fargo to outperform. The target is 50 a share up from 48 a share citing several factors including valuation is up 1 . Now back to the Global Markets. Joining us from london, gina sanchez, ceo of cantaco global shes also a cnbc contributor. Thank you for joining us today. Thank you. Really, lets actually start with the bond market right now weve seen a flattening of the yield curve. Right. We saw high yield debt selling off last week. What is that signaling and how should we look at that as it crosses over into entities as well i think that that is the market fretting over whether the debt markets are going to experience any kind of problems. Most people say that defaults come at first very slowly and then all of a sudden and i think that the market to some degree started pricing in more of that all of a sudden, however, italready was slightl overblown right now. If you look at the state of the high yield market, we are very overly indebted in the corporate sector most of these companies have really bought themselves anywhere from 12 to 18 months. Even if you do have a rising rate environment or flattening curve, it really isnt going to impact them for sort of immediately. So i do think that this move in the markets is well ahead of what could possibly really be happening right now. Gina, what about corporate debt situations and credit spreads in europe and what are we learning from those spreads well, you know, i think corporate spreads generally are tight. They have been tight around the world and in europe you have a situation where you have a ticking time bomb in the form of negative Interest Rates. You know, you have actually negative Interest RateCorporate Bonds in europe that at some point will become problematic for investors. I do, however, think that because the equity markets are actually Pretty Healthy in europe, you know, i think that that is the the recovery in europe has more legs in our opinion and its slow and steady but we do think that that that slow and steady is probably going to win the race so we do actually like corporate debt in europe gina, looking at equities here in the u. S. , whether its the nasdaq, dow, s p, theyre all within 1 of their record highs. Where do you see those going from here . Look, i think were very highly valued. Youre talking about a situation where you have you know, you have a very, very, very belated Economic Cycle it took us years and years of stimulus to get to the recovery that weve gotten now. You finally have earnings finally starting to tick up at a time when were really more or less late cycle in the economy we need to start raising rates and thats part of the reason that youre having that flattening its bare flattening and, you know, we have priced in i think more than were going to get out of this recovery the recovery is probably going to be shallow and were priced in for more than that so i think that theres room for disappointment maybe not immediately but at least within the next three to six months the end of year expectations priced into the s p 500 i think are high. Well, gina, thank you for giving us your breakdown gina sanchez of chantico global. Coming up, washington watch. The senate is prepared to take up tax reform. Will the repeal of omarebaca come with it well head to d. C. And hear from senator Lamar Alexander. Thats next. 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 whuuuuuat . Rtgage offer from the bank today. You never just get one offer. Go to lendingtree. Com and shop multiple loan offers for free free . Yeah. Could save thousands. You should probably buy me dinner. No. Go to lendingtree. Com for a new home loan or refinance. Receive up to five free offers and choose the loan thats right for you. Our average customer could lower their monthly bills by over three hundred dollars. Go to lendingtree. Com right now. In Washington News the Senate Tax Plan will reportedly let mutual funds skip a change that hurts individual investors. The provision would force investors to sell off the oldest shares first originally change was designed to both fund firms and individuals. The Senate Finance committee decided the proposal will no longer apply to mutual funds this comes after a large firm such as vanguard and eaton vance complained sticking on the theme of tax reform lets head to washington and check in with john harwood john, good morning good to see you. Good morning, morgan. The tax reform bill has got a few days for public reaction to sink in. Reaction to provisions like the one you were just discussing as well as the who benefits from the tax bill and what the benefits for the economy would be one of the issues that has swirled around the tax reform debate is obamacare. You have the bill in the senate which would eliminate the individual mandate with the idea of raising additional money and achieving Senate Republicans health care goals. You also have some push back from moderate republicans who say they want to see a bipartisan bill passed that would stabilize the obamacare marketplaces the key sponsor of that is Lamar Alexander of tennessee very serious legislator whos trying to navigate the trump era in washington and get that bill passed i asked him how he was going to navigate that through the end of the process and get the approval of donald trump. Lamar alexander isnt president. I tried to be and the people chose donald trump at a different time so the president called me in this case and he said, i think we need a bipartisan solution on health care so people arent hurt for the next couple of years. Why dont you work with senator murray and see if you can do one. Weve done our job, its sitting there at the white house wrapped up in a nice package. What about fellow republicans in the house and senate . I think if the president supports it it will be a part of the end of the year package. Would he see premiums going through the roof for the next two years we ought to be able to agree that were going to stabilize that. Were sitting here in the blue bird cafe. Most songwriters dont have Health Insurance because they cant afford it. If they do have it, in tennessee their premiums went up 176 in the last four years and 58 this next year. So what this little bill would do is take those premiums down, not up so does that mean the entire game for you in particular, not so much senator murray, is to be the last person to talk to President Trump to get him to go like this instead of go like that were going to say, mr. President , you asked us to do this you dont want chaos, neither do we sign it, take some credit for it and give the American People a bipartisan win i think theyll like it. So theres still significant uncertainty over whether this is going to happen. Lisa murkowski, senator from alaska, one of the wavering votes in the senate on tax reform says she wants to see that bill passed but she said late last week its not a precondition to her support for the tax bill were going to wait and see after thanksgiving whether that bill passes as well as tax reform, guys john, just on that. Were not expecting any major developments. No. Late november though we could see some movement . Yeah. The bill has cleared the Senate Finance committee. Now it goes to the senate floor and what happens is when senators go home and take the temperature in their states, gauge the public reaction, see how much heat theyre getting, see how much praise theyre getting, that informs their reaction as they saw it during the debate over getting rid of obamacare. So were looking for a debate beginning on the senate floor just at the beginning of december they hope to get it done before the new senator from alabama takes place, that controversial seat where roy moore is the republican nominee he might lose that seat which would narrow their margin for error. If they could get it done before that becomes effective and with Luther Strange interim senator still there, theyll be better off. Okay. John, great to see you as ever. You bet. Still to come, coalition in chaos. Why Global Investors need to Pay Attention to whats happening in germany right now. First as we head to break, heres todays National Weather forecast from nbcs bonnie schneider. Good morning, wilfred and morgan we are looking at windy weather persisting through monday morning and even into monday afternoon. So that could slow you down a little bit if youre traveling or heading to the airport. Were also looking at the cold really cold air coming in behind the system and thats going to make for a brisk chilly morning whether youre in the northeast or the southeast now keep in mind though in the south your temperatures will warm up so Business Travel takes you to atlanta well, theres a wind chill of 28 degrees this morning hooking at high temperatures into the 60s big change ahead very mild across the nations mid section and areas to the west looking at warm weather there. Overall quite a change as we get closer and closer to thanksgiving thats your Business Travelers forecast more Worldwide Exchange when we come back [bell rings] every year we take a girls trip. Remember nashville . Kimchi bbq. Amazing honky tonk . I cant believe you got us tickets. I did. I didnt pay for anything. You never do. Send me what i owe. I got it. I mean, you did find money to buy those boots. Are you serious . Is that why you dont like them . Those boots could make a unicorn cry. Yeah, tears of joy. The bank of america mobile banking app. The fast, secure and simple way to send money. Welcome back in global news happening now, a noon deadline has passed for zimbabwes longtime president Robert Mugabe to resign or face impeachment. The army seized power last week. Mugabe defied expectations last night. Righters says the 93yearold has agreed to step down. His ruling Body Department want him to quit in front of the military which would have made its intervention look like a coup that 12 p. M. Local time deadline passed some 20 minutes ago or so and he hasnt yet stepped down well continue to watch for what any reactions might be. Emlsewhere in global news, german chancellor Angela Merkel has canceled a press conference today. Germany is thrust into somewhat of a political crisis. She failed to win a majority been in Coalition Talks ever since. Those just broke down. Lets speak with Peter Spiegel of Financial Times good morning to you. I guess given what is a Significant Development here, its a little bit of a surprise not to see either the euro or german dax selling off more meaningfully. No, we saw a real dip in asia trading, particularly the euro and german ten year buns they recovered in european trading so far most people expect germany to eventually have a coalition where even if they go through elections, the German Economy will be fine i think the risk is much more on the political side not just in germany but you have brexit talks going on. If we have to go to new elections those will get held up we have the ambitions by emmanuel macron. That will be put on hold so stuff were looking at for the markets to watch is much more medium or long term immediately people dont think the eurozone growth story which has picked up speed over the last six months, i dont think this political shakeup is going to have any impact on them peter, i guess more broadly in the e. U. People sort of framed president macrons victory as drawing a line under the moves across europe for the antieu forces following brexit, et cetera. Is this breakdown of coal licks tal Coalition Talks that that has not finished and focused on the outcoming italian elections . In many ways the French Election was the High Water Mark not only the german elections, the far right party got in the austrian elections as well we have a coalition between the center right and the far right party where the far right did very, very well. Even in the netherlands where the far right didnt get into the government, they have been influencing the political debate on the netherlands as you mentioned italy where weve seen not only the five Star Movement do well, but suddenly lega spgs nord, it has moved into tuscany and other parts of italy the governing party of the center left looks like its going to get voted out i think the macron victory was seen by brussels as a change in the story. Actually, weve gone back to it. As you say, this failure to form a coalition because we have far left and far right pushing the senate together and that hasnt worked out well has a real signal that this is going to continue throughout next year. Peter, great stuff. Financial times. Still ahead on Worldwide Exchange, todays top stories and a roundup of the Global Markets plus trending today, boy band n sync getting into the fashion business in a big way. Well tell you why fans are lashing out on social dia ismeth morning. Stay tuned youre watching Worldwide Exchange on cnbc. Under pressure futures pointing to a lower week shortened trading week. 6 billion chip deal marvelltechnology reportedly ready to announce an acquisition today. And headed for the skies elon musk teasing an epic upgrade for teslas new roads to the super car. Monday, november 20th, 2017. Youre watching Worldwide Exchange on cnbc. Good morning a very warm welcome to Worldwide Exchange on cnbc im wilfred frost. Im morgan brennan. Lets go straight to the Global Market picture this morning. Take a look at u. S. Futures, they are lower this morning. Weve got the dow indicated to open lower by 30 points today. The s p indicated to open down by four points even the nasdaq poised to open ten points lower this comes after two straight weeks of losses for both the dow and the s p. Both of those averages dragged lower by General Electric last week it was a big week for ge last week nasdaq was higher last week. If we take a look as well at treasury notes, if we move to that board right now, what weve seen is a flattening of the yield curve over the past week or so. Right now the ten year is trading lower, moving lower. Its down at 2. 345 . If we look at equities around the rest of the world, weve got a mixed session in asia. Japan slightly lower hong kong higher worth noting last week we did see shanghai and japan down more than 1 . In terms of european trade last week, saw more than 1 of declines for germany and france. In general a positive session as you can see. Germany and u. K. Slightly lower. Germany before the break reacting to the breakdown of coalition discussions following the German Coalition two months ago. Both the euro and german dax not declining. They had done overnight in the futures markets but flat at the moment for the german dax. As we turn to the broader markets starting with the currency picture, we see the dollar stronger. The euro weakening in light of the Coalition Talks breaking down in germany. The u. S. Dollar is also stronger against the yen but it is weaker against the pound. If we turn now to oil, we are seeing oil pare back from the rebound we saw in both wti and brent last week. So oil is lower. Wti is at 56. 46 and turning now to lets discuss that a bit further. Were going to be joined with some news on why oil prices have been moving latest of all. Jackie. Morgan, wilfred, good morning. Rumors have been floating about the king passing the throne, the reins over to his son crown prince mohamed bin sal mad also known as mbs theres a speculation that a shift of power could come as early as this week mbs has been shaping policy. He is aetd the architect of the saudi 2030 vision. At 32 years old hes the driving force behind modernization in the kingdom. No secret that mbs has this ambition getting this title gives him power. As king mbss impact on geopolitics would be more pronounced he would be tasked with setting the agenda with foreign nations. Hes already viewed as aligned with President Trump it seems like the saudis could potentially partner with israel in a unified fight against iran and hezbollah. Business interests include oil and of course the aramco ipo consensus that king mbs would be bullish for oil prices or at least keep them in the high end of the range also remember the saudis are the biggest opec producer. The new Energy Minister has been very strategic about the countrys role within the cartel thats likely to continue ahead of the we think this could come as soon as this week, this handover they have been talking about it since this summer the rumors are heating up a little bit theyre talking about an announcement this week the current king is in his 80s there are also rumors that he has dementia it could be time to pass those reins on the fact that the new king is 32 years old, very young and tender age to lead such an important nation within the global scheme of things. This could be a massive change if the announcement does come. Yakky, thank you very much. 32 is a very wise age if you ask me. Lets get back to discussing the broader markets. Scott emmons at Brown Brothers harriman scott, good morning to you. Lots of wisdom joining us now. Lets touch off on Oil Prices First of all clearly theres a lot of geopolitical factors all in all this opec deal continues to seem to hold. Thats really the biggest support in terms of supply side. Its the biggest guy geopolitical support the demand side, thats the ultimate driver. Thats the Global Economic picture. It seems to be brightening a little bit thats not a statement about the states but abroad as well. I think the demand side of the oil picture is beginning to be a little brighter as well. Dont take your eye off of that. Certainly it would seem that saudis new potential king here is really kind of signaling that above and beyond oil moving beyond it and saudi is open for business in terms of this global picture, what is your take going into 2018 where would you be putting your money right now . I think as i said to wilfred, the Global Economic picture is brightening. That has implications. As a capital allocator, what i spend most of my time doing, were finding more attractive valuations outside of the United States than inside the United States that may not be surprising in the eighth or ninth year of a bull market here, but valuations in europe, valuations in emerging markets in particular are more attractive than they have been in 20 years so were shifting some assets here. Talking about developed World Markets outside of the u. S clearly those markets have had a great run and theyve played catchup over the course of this year to what extent is ongoing investment reliant on loose policy remaining and to what extent is the structural growth being delivered . Monetary policy certainly factors into the picture i think the important thing about Monetary Policy is the expectation of it and the transparency of it i think the Federal Reserve under janet yellen and soon to be chairman jay powell will continue to use communication. The transparence sli enable tighter Monetary Policy. No one is talking about tight policy, just tighter policy to be digested by the markets in due course its more of a fundamental story than it is a policy story. If we dont get tax reform do you think the fed hikes two times next year or three times or Something Else . Morgan, my guess would be three times because i think the fed has every underlying fundamental reason to do so. What i mean by that is evidence of strength and strengthening labor Market Conditions coupled with the lack, as of yet, of any inflationary pressure. Theyve got time on their side i think theyd like to see Interest Rates rise independent of whether a tax package is passed. Talk about what youre seeing in the u. S where you do see value, what sectors . Certainly not technology. Were not seeing a lot of value there. Were seeing technology in the more consumerrelated sectors driven in large part that the consumer of the United States remains in relatively Good Health Well get a little bit more good data wednesday well get another Consumer Sentiment report. An important one before the Holiday Shopping season. I think the consumer related sectors are poised to do well. The fact that it is black friday and the move higher we saw in the xrt and the retail stocks, do you think theyve hit a bottom are these value plays right now . I think theyve got a lot of opportunity. Again, because of the strength in the labor market, the strength of the Housing Market what that implies for the ability of consumers to spend money and perhaps more importantly the willingness to spend money. Great stuff Scott Clemons of background brothers in Corporate News, Marvell Technology is nearing a deal to buy chip maker cavium for 6 billion. Its made up of 50 stock and 50 cash a deal is expected as early as today. Not significant move in those share prices this morning. And a disappointing weekend at the box office. Justice league taking the top spot garnering a lower than expected 281. 5 million for its opening weekend. Thats according to com score. Warner brothers and d. C. Entertainment film only saw 96 million in u. S. Seals. Disneys thor coming in a solid second place that film bringing in 20 million. Murder on the Orient Express sliding in as the third best box office performer the Mystery Movie brought in 34. 5 million. That tells you how long its been since i actually went to a movie theater, which speaks to the slide weve seen. Well, i go quite a lot. We make up for it. Murder on the Orient Express good cast but very disappointing ive heard. Other news out of hollywood, the Weinstein Company is getting a surprise bidder. Submitting an offer to acquire the company. She served as the head of president obamas Small Business administration she hopes to be a chair woman heading the company which would be renamed she wants to set up a fund for victims of alleged Sexual Misconduct from Harvey Weinstein in the past. Taking it to the top internet headlines of the day. Jeffrey temble quitting his show transparent after being accused of Sexual Harassment he continues to deny the accusations. He doesnt want to continue working on the amazon series because of the politicized atmosphere on the set. Notorious murder remember Charles Manson has died at the age of 83. He passed from Natural Causes in hospital the cult leader served nine life terms in california prisons and was denied parole 12 times elon musk teasing a special upgrade to teslas new roads to super cars hinting the car may be capable of briefly flying. The roadster is supposed to arrive in 2020 with a price tag of 250,000. Its not really flying though, its just that its so fast and light that it could at times take off and fly pretty impressive. First of all, lets see if he actually hits the deadline hes been known to have aggressive deadlines second of all, this is probably one of the most underreported stories from a broader perspective. All of these tech billionaires that are involved in things like tesla with elon musk or jeff bezos that have their own space startups all of that technology theyre able to transfer to the more consumerfacing companies. Absolutely. I would expect him to do it. Cross poly poll lynn nation thats a long way off a rocket ship. Well, yes Something Else that is rocketing my world nsyncs holiday merchandise is selling out. This makes me feel old it included sweaters, pins, shoes, hats, a mug and even a stocking are you an nsync fan, back street boys fan or i bet youre a one direction fan. Im not a one direction fan i take that. British boy bands. Im a big fan of boy bands and i like nsync or back street boys if the boys would take that and decided to release that, i would be picking that up. Win the holiday competition. You dont understand. Sara has had to learn who they are so i can forgive you. Still to come, has cnahis growth miracle run out of steam . The must reads coming up me. Today, we produce nearly 20 million cases a year. Chubb has helped us grow for the past 30 years. They helped us prevent equipment problems during harvest and provided guidance when we started exporting internationally. Now were working with them on cybersecurity. My grandfather taught me to make a wine that over delivers. Chubb, over delivers. 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. Welcome back to Worldwide Exchange. Time for must reads. My picks in the Financial Times titled chinas growth miracle has run out of steam a bearish take on the long term outlike. Writing historical precedence suggests the potential magnitude of the current growth overstatement. Japan resembled those as chinas. They suffered from a very low consumption share of gdp and an over reliance on investment that by the 1980s had veered into substantial miss allocation. I bring it up last week we did see shanghai down over 1 in the smaller index and shenzhen down 5 just a little reminder of the challenges facing the chinese. Two quick thoughts on this, be bearish industrial metals. I wonder about iphone sales if thats reflecting this argument as well . Chinas been a factor in apple sales. Approaching the top of the hour. That means steve is getting ready for squawk box. Joe is joining us. Good morning, joe. Good morning, wilf. A lot of sports. Something going on with the spurs . What is that we beat them 20. Crucial game bad season so far. This was a joyous game for arsenal. San antonio what i dont understand is this a what is this . The spurs . Tottenham hotspur. Say that again. Say that again for me. Its a british word, joe. You cake take it for that one. But spurs is like thats what you put on like when you are going to ride a horse or something, right i wouldnt know i dont ride a horse they scare me. Even the like even the ones that i see over there we went to a great place in london where all the the ones that you see over there, what like touring the queen in the carriage . What are you talking about you are not a tourist you dont go to all the places where we went to the royal something or other anyway, you know, the markets are important obviously. Its a shortened week, but were going to talk to mark grant. Hes a regular that will be good. Becky is going to interview him. Katie stockton is going to be on, too. She recently thought we might have a little bit of that consolidation. I thought maybe we had already done it. It seems like she still thinks there might be a little bit more work to do we have super grover coming on not the sesame street guy, grover norquist. We have kevin hasset who is the chairman of the president s council of economic advisers were going to hear the Administration Line on a lot of these issues and its a shortened week well see. You dont have the antithanksgiving, do you, over there, wilf where youre mad we came over here and became the greatest country in the world after we got rid of you guys its not like an anti thing. Definitely, definitely is not. We are thankful to be a part of it and to be here as a britt, very nice indeed. I saw, you know, 70 years 70 years i mean, your royal family, they are theyre pretty magnificent. Did you see those shots . I have, indeed. Congratulations to her majesty and the duke of edinboro 70 years is nuts. Whats that fantastic. Its unbelievable im going to do that ive got a little problem since i got married at 43. What would that be 70 years thats god help zblu god help me. I want to be married 70 years. I would be 120 thats possible. 70 years is looking unlikely for me, too, joe i havent even gotten to day one. Youve got to get started youre not even on dating. Looking forward to squawk box coming up orwi ehal coming up on wlddexcnge, your week ahead and plenty of data well be back in a couple of minutes. Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley welcome back to Worldwide Exchange. Im wilfred frost with morgan brennan. The dao dawn 23 points s p down 3 points. It comes off of a week of declines the nasdaq managed to eke out a 0. 4 gain. Joining us is the chief u. S. Economist at morgan stanley. Good morning. Good morning. Bearish signals come from the market that flattening of the curve has that been justified by the data or is the data still pretty impressive no, the data is good on the u. S. This flattening is not because weve been getting bad data on the u. S. I think as we continue to price in, youre going to continue to see a flattening of that curve and what is your take in terms of how many times the fed raises rates coming into 2018 and beyond in december they resume that gradual pace they had been on trier. Thats the hike at every other meeting. December three more times in 2018 we do have inflation inching up over that time i think thats enough for them given that growth is about potential. Unemployment is so low financial conditions are easy. Thats going to keep faith alive that inflation will eventually reach that so we expect march, june, september they keep marching on in 2018. However, we have been stopping in september and taking stock. At that time youre above a 2 nominal Interest Rate. You are going to see a very flat yield curve then and its time to take stock and see how much further they want to push it. When do you consider your gdp forecast for next year firstly, when is that . To what extent have you factored in a tax rate cut. Were in the 2 camp and that includes the fiscal policy what were calling tax relief to be delivered in the march april time frame well start to hit more towards the second half of the year which fits into fiscal year 2019 but on the Economic Impact of it, it comes more from the personal side. From the corporate side i have very little impact built into the numbers because, one, repatriation, you dont know what that money will go towards. I would argue that corp rates are investing today because it makes sense to invest and theyre sitting on plenty of cash theyre not they havent been investing because the cash has been trapped over seas i think theres also a lot of misunderstanding about how much cash is over seas, actual cash, not bonds that would be brought back and so i see it as a good thing for a small medium domestic focused businesses we see them making that in small and midcap stocks. Overall i think the impact we get is more on the personal side. As we come out of earnings its been one of if not the worst quarter for hurricanes on record in the u. S. How much is the hurricane sort of rebuilding story factoring into your numbers for next year . So were just now getting underway in the rebuilding efforts for housing. The replacement of moitor vehicles, that happens in the week after the hurricane passes. On the Home Building side, not only do we have an industry facing supply constraints for materials and labor, think of how long it takes to claim money and just have Insurance Adjusters go out and give you an estimate and so oftentimes the Home Building catchup is lagged and were just starting to see that start in the october numbers and if you think after look back after hurricane katrina, it was eight months of catchup of overbuilding so that can start to stretch residential investment boom from this from q4 across q1 possibly into q2. When we consider the Global Growth outlook, clearly theres been a benefit to the u. S. Economy. Does that run out of steam a little bit next year or are you optimistic that theres more to come were still very optimistic on the global cycle. You still have economies that are at different points in their Business Expansion with central banks. Yes, theyre starting to ease off the peddle or at least kind of back towards the door with their face still looking at you as they gingerly back towards the door the taking very small steps globally and Global Central BankBalance Sheets are still rising. In fact, even as the feds have begun to roll off. So we still see impetus for Global Growth or that impulse coming through and in the u. S. We have started to see this Virtuous Cycle finally take place. Its an enduring feature of every Business Expansion that c capex cycles kick in were seeing that in the u. S. And were starting to get the better productivity numbers on the back end of it that is a keenum. Great stuff lovely to see you. Were a pointing to a slightly lower open on wall street this morning. Thats it for Worldwide Exchange. Squawk box when we come back good morning under pressure this morning. Futures pointing to a lower opening on wall street we will get you set up for the shortened trading week ahead developing story, talks to former Coalition Government in germany breaking down putting Angela Merkels future in question where is our friend today . Plus, lets make a deal. Marvell technology reportedly ready to announce a 6 billion acquisition today. The chip market is hot, isnt it its monday, november 20th, 2017, and squawk box begins right now. Live from new york where business never sleeps, this is squawk box. Good morning, everybody. Welcome to squawk box here on cnbc we are live from the nasdaq markets set in times square. Im becky quick with Andrew Ross Sorkin the markets were mixed between major averages this morning some red arrows these arent hugely significant declines dow futures down s p off by under 4 points. The nasdaq did end with a positive gainfor the week. Overnight in asia lets take a look at this point the markets closed the nikkei ended down by. 6 of a percent. Hang seng and shanghai were slightly higher. In europe this morning in some of the early trading as we look at the story of the German Coalition bid failing, you still see some green arrows