Its on spotify right now. We aim to please. It seems like we have done this morning. Lets get into the market picture. A very rosie market picture this morning. Futures were as much as 200 points higher moments ago just shy at the moment on the dow 192. 4 to be precise. The s p higher by 14 the nasdaq up 22 markets did pull back on friday albeit only slightly closing down. 2 and the s p a little bit more that for the nasdaq for a week performance was fairly divergent. The dow was up 3 . Dow up 1. 5 the tax reform bill well discuss that passed the market late friday night. Ten year treasury note has responded as well in a risk on fashion somewhat weve seen the yield move up a little bit, 2. 39 closing on friday at 2. 36 over the weekend ticked up a bit. Crossed 2. 4 but is just below that level. More on the markets, but first to our top corporate story, cvs is buying aetna for 69 billion. Our Bertha Coombs is joining us on the cnbc news line with all of the news. Good morning, bertha. Reporter good morning, seema. This is a blockbuster move with the price up valuing aetna 205 a share with 145 of that in cash, 67 of that in cvs stocks. The companies together say that they will better be able to manage patients care, better be able to coordinate benefits putting both the medical and the drug benefits under one roof together they will be a Formidable Force in health care. This will be a vertically integrated company that if you go by 2017 estimated revenues well have about 240 billion in revenue. That would make them the Largest Health care firm to buy revenues eclipsing a little bit United Health it would also give them to start here about 22 Million People in terms of those insured under the pharmacy benefits for cvs. They would have upwards of around 90 Million People but on top of that you layer the elements that cvs already has with regards to its clinic theres 1100 minute clinics. The expectation is they want to expand using those in store clinics as real clinics, not just for a small urgent care but for primary care try to coordinate care for their members. On top of that, they also have the omnicare, home care for Home Infusion for high cost drugs as well and, of course, the drug stores themselves. That is the differentiating factor, if you will, that makes them a quadruple threat. Theyve got the pharmacy benefits, they would have the insurance benefits, theyd have the clinics and on top of that the retail element, which cvs i trying to leverage saying, hey, not only can you come in store and get your prescriptions, but were going to start delivering in certain markets well deliver to your home, in some cases in one day. So they are trying here to really play defense and get out ahead of all competitors, including a potential threat from amazon entering the pharmacy space back to you. Bertha, great stuff thanks for that. Well continue to follow the story and have another update later in the show. Meantime, wall street continues to closely watch the tax reform story coming out of washington heres the latest. The Senate Passed the tax reform plan early saturday morning. Republican house members will return to capitol hill today theyre expected to vote to proceed to a conference. This is where theyll reconcile differences and work on a final tax bill with the senate gop leaders are promising a quick compromise well hear from House Majority leader Kevin Mccarthy later this morning. Hell join squawk box this morning live at 8 00 eastern time of course, that tax bill progress is whats fueling this risk on environment this morning. The reconciliation process will be of most importance. Meantime, Goldman Sachs is revising its Economic Growth forecast slightly higher based on the Senate Tax Reform bill. Its the would be law adding 0. 3 growth in 2018 and 2019 in a note to clients the change reflects the slightly amount larger following expectations and growth regarding the eventual compromise. Back to the markets this morning. As we already showed you, futures, a great tick up asia was not as positive mixed session there weve seen slight gains for the Hong Kong Market but declines for japan and shanghai european trade though is particularly positive. Over a percent of gains on a couple of the markets there including germany, albeit germany was down over a percent last week. A sense of bounce back either way, positive session in europe. For the broader markets, take a look at oil prices which did move higher last week on the back of that opec decision extending those cuts but here on monday here lower with the twi crude trading down 1 at 57. 72 ice brent crude at 63. 19. I would point ought last week gn nat gas prices grew up another 1. 5 meantime, dollar is stronger across the board check out how the dollar is trading against the japanese yen. 112. The pound is lower against the green back at 1. 34, down. 2 of a percent. Brexit discussions taking place. Theresa may is in brussels to meet with jeanClaude Juncker. The irish havent given their approval for the british to move forward with the next stage of negotiations the irish border issue is something that needs to be sorted as well as the allimportant divorce bill settlements even if theres progress it sounds like the irish are Holding Things up. Lets run things off and take a look at how gold is trading. Last time we checked it was lower. Gold is, yeah, down just about 6 bucks. Trading at 1,276 its a fairly busy week on wall street for Economic Data today look at total factory orders the ism Services Index wednesday adp and Third Quarter productivity jobless claims on wednesday. The week wraps up with jobs report and Consumer Sentiment. There are a few earnings sprinkled throughout the week. The list includes autozone, h r block and lululemon. The richmond fed is reportedly expected to select mckenzie executive Thomas Barkin as its next executive. He serves as mckenzies chief risk officer he will succeed jeffrey lacquer. He leaked confidential information. We continue to follow bitcoin this morning a record high yesterday. This is a recovery from a 20 plunge last week. Venezuela president Nicolas Maduro announcing his country will launch a crypto currency of its own. The goal is to fight what he calls financial bloc aid the new currency will be called petro and will be backed by Natural Resources reserves this, by the way, follows other countries slowly signing up for bitcoin or some type of crypto currency whats interesting is when you look at which countries are actually in favor of bitcoin or this broader space, its mostly those that are under some type of distress, wilfred, whether it be economical or geopolitical which fits venezuela into that category. Its interesting whether to attach this news or not. I would say this news should be slightly negative for bitcoin itself because its an example of, a, firstly, one of the few governments thats willing to endorse the crypto currency and they havent endorsed the one everyone is buying of late that main criticism that everyone has like jamie dimon to say until its formally backed it has more bubble like aspects continues to be an issue people are creating it if they want one, the bitcoin runs up and it fails to have that government backing. If you look at where bitcoin is popular, you see venezuelan citizens buy this. You wonder if the new National Crypto currency emerges, if they will abandon bit cohn and sign up for petro. Apple ceo tim cook is in china. He spoke at the world internet conference its about the chinese peoples sense of the internet. They have earned nearly 17 billion, thats about 1 4 of total global app store earnings. In other corporate news, disney reportedly resuming talks with 21st century fox about buying some of its assets. Now the news comes as other media giants are still in the mix all vying for some type of assets that fox owns lets get to landon dowdy with more details good morning. Good morning. If at first you dont succeed, try, try again disney has reengaged in talks with 21st century fox to acquire some of the media giants assets while comcast remains in the mix. This comes after word broke that the mouse house had reached out to 21st century fox about a possible deal. Talks did cool after the two sites couldnt agree on a price. The talks centered around foxs movie and tv show, International Assets such as its nearly 40 honing in u. K. Sat lit provider. Indias star tv and some u. S. Cable networks fox news and broadcast network, including sports, are not expected to be sold in the transaction. If the deal goes through, it would mean a huge addition to disneys already vast library such as x men and avatar franchise. Rupert mourdock and his family own 39 of foxs voting shares are expected to make a decision by the end of the year take a look at the stocks, walt disney is up about 1 . 21st century sfotocks is unchanged. Well check in on the sky price in london trade which is up over 2 this morning. Of course, as we mentioned before, they cant buy a pending deal as it stands but the deal could get pushed through, although that seems unlikely at the moment, ahead of that. Then they could buy the full company or buy the 39 some more stocks to watch today. Broad com is taking its First Step Towards taking over qualcomm the chip maker will unveil nominees who qualcomm shareholders could vote on qualcomm rejected the broadcom bid last month. Facebook and google coming under fire in australia. The two Tech Companies will be investigated for possibly disrupting the countrys news media market and there by hurting consumers. Im sure they have disrupted the media market im not quite sure what the accusation is there. Either way, its flat. Facebook is up in line with the market which, of course, is high this morning. Shares of ryanair is ticking up the traffic volumes jumped by 6 lower fares are pointed to as a result of capitalism Fiat Chrysler is in talks with Hyundai Motor company fiat shares are up nearly 3 . Switching to italian cable maker prysmian is trying to buy general cable. Check out that stop, general cable up 30 exxon mobil weighing into egypts off shore oil and gas. Theyre looking to replicate rivals success in the country and to boost its reserves. Still ahead on Worldwide Exchange, brexit talks taking center exchange. Theyre expected to meet this week indeed, theresa may llwi be meeting John Claude Juncker any minute now welcome back to Worldwide Exchange. If youre just getting up, lets get you up to speed on the market action. U. S. Equities a positive open. 208 points the dow up 15, nasdaq up 26. Last week it was quite divergent performance. The s p is up 1. 5 dow up 2. 8 . This positive coming from the fact that the senate, of course, passed the tax reform legislation late on friday that of course playing into positive tone this morning asia was mixed but europe has a positive tone as well. We have the likes of germany up more than 1 albeit it was down more than 1 last week it was a positive rebound as opposed to just pushing higher france up 1 the u. K. Up 0. 8 seema . Brexit talks are front and center this week u. K. And european negotiators are expected to meet and work and break meet and provide some type of solution to these divorce talks. Willem marx joins us live from london with the latest hi, willem. Hey, seema. Its coming down to the wire we have the divorce bill its 50 billion. There are still some issues involving all of the other elements that need to be made. Citizens rights, theres a problem involving the European Court of justice and the control over citizens here in the u. K. Belonging to the european union. The biggest Sticking Point is the irish border theres been no agreed text yet. They will be sitting down in a couple of hours for lunch. Before that jean Claude Juncker and Michelle Barney will be briefing the parliament. They have final say on whether this deal gets passed. The Irish ForeignPrime Minister says that talks are in a, quote, sensitive place. The irish e. U. Minister as well as the spokesperson for the other party have said theyve seen significant progress and theyve worked through the night last night but they are not there yet. This is all about avoiding a hard border thats made difficult by the british stance. They demand the u. K. Leaves the customs league something the irish doesnt want to see happening. Theresa may wants this deal very, very badly she wants the deal today, may have to wait until wednesday she wants to see progress before the 14th and 15th because of domestic pressure to move these talks on to discuss future trading relationships. Thats where we stand this morning. Willem, clearly the u. K. Has conceded some significant cant ground, particularly in terms of number theyre willing to have in terms of divorce bill if this week, if this lunch goes badly for theresa may, to what extent by backing the irish if theyre maintaining theyre not going to allow the talks to go forward, to what extent are they potentially risking a bigger action and the u. K. Deciding, fine, weve tried to make an offer and now we have to walk away. I think theresa may is in a difficult spot as you mentioned rightly, they have been pushing again and again for her to walk away from the talks. In some ways people ive been talking to say that gives her more strength. It means people in brussels understand that domestic pressure, understand she has to thread a very narrow line. We saw that the counsel president was in dublin on friday he said that anything that they agreed today he would briefly speak with the irish Prime Minister on. They dont like using the word veto but essentially thats what it does amount to, will. Willem marx in london. We have much more on Worldwide Exchange coming up, including what to watch in washington plus details on the fallout from Michael Flynns guilty plea and a look at whats on the president s agenda. First, as we head to break, heres todays National Weather forecast from nbcs bill cairns. Good monday morning to you, seema and wilfred, the big story is the pattern change this week. It starts with our snow event today in the Northern Plains after a very warm weekend, it will start to feel across the country like december, how it should have been feeling over the last couple of weeks so were going to watch about 1 to 2 inches, maybe 2 to 4 inches it will be a blowing and drifting snow. Thats why we have blizzard watches and warnings around the fargo area as far as the forecast goes today, were going to track the storm with the snow on the back side ringing out ahead of it tuesday the rain moves through areas of the east and northeast. The forecast today, east coast is just fine watch out for patchy fog around new york city. Warm in texas and here comes that cold across the country later this week. Thats your Business Travel forecast more Worldwide Exchange when we come back [vo] progress is an unstoppable force. The season of audi sales event is here. Audi will cover your first months lease payment on select models during the season of audi sales event. My friend susie cracks and hello sensitive bladder. Ring a bell . Then you have to try always discreet. I didnt think protection this thin could work. But the super absorbent core turns liquid to gel. For incredible protection. Thats surprisingly thin. So its out of sight. And out of mind. Always discreet. For bladder leaks. Also in liners. Welcome back well get you up to speed on the market action. Look at futures. We are setting up for a strong day on wall street with the dow jones up 210 points in premarket. That guilty plea from Michael Flynn had the dow off as much as 300 points but now this new news of a Senate Tax Bill moving forward, that seems to be what markets are focused on nasdaq up 28 points in premarket. Look at how currencies are trading. It seems like the dollar is also getting a bit of wind to its back as focus remains on taxes the u. S. Dollar trading at 112. 88 against the japanese yen. Quickly to round things off, a look at how oil is trading a different story here with wti crude down 1 . More fallout over the weekend from Michael Flynns guilty plea. Nbcs tracie potts joins us with all the details. Hey, tracie. Reporter hey, there. Michael flynn pleads guilty and President Trump tweets up a storm about the russia investigation, comparing it to clinton, to an fbi investigator who was bounced because he seemed to be antitrump. The president really sort of went off on this russia investigation. One thing that stood out was a tweet that his personal attorney later said he wrote and not the president saying that the president fired mike flynn because mike flynn lied to the fbi. Now heres why that is significant. If the president knew that flynn lied to the fbi before he fired him, then he knew that flynn lied to the fbi before he reportedly told the fbi director to back off of the flynn investigation, that was the day after the firing the president came back and tweeted, no, he never told james comey to back off the investigation even though thats what comey has testified under oath so this tweet that was on the president s twitter but now the personal attorney, mr. Doud is raising questions about what the time line was here about what the president knew and when he knew it. For that reason and because of the indictment that weve seen coming out of this fbi investigation, the top democrat on the Senate Intelligence committee is now saying it looks like they will be building a case for obstruction of justice taking this whole thing to the next level wilfred . Tracie, even if that is the case and the next step, relative to what people thought this investigation could potentially uncover in terms of specific conspiracy with russia and also relative to the time line of how long its taken mr. Mueller to come up with various arrests and indictments, youd probably say the president hasnt faced wide accusations that stick that people thought he might have done. Reporter no, not at this point. You bring up an interesting point. The fbi investigation is slow. Lots of people on both sides here in washington thought it was going to be slow no one really thought this was going to be a big rush, in part because its a large scope theyre looking at russias involvement in the election, the campaign, the trump campaigns involvement with russia, if any. Its a pretty wide ranging investigation. Robert mueller seems to be taking his time with it. Tracie potts, thank you. Still ahead on Worldwide Exchange, big news in the pharma space cvs and aetna announcing a deal that could reshape the Health Industry well tell you what this means for your wallet. Plus, a roadster in space. Elon musk reaching for the stars sld it involves strapping a tea to a massive rocket. The details of that when we come back market looking at a positive outcome. Health care shakeup cvs is buying aetna for69 billion. Its a huge deal that could reshape the industry as we know it. An epic musical reunion. Taylor swift and ed sharon taking the stage its monday, december 4th, 2017. Youre watching Worldwide Exchange on cnbc. Good morning very warm welcome to Worldwide Exchange on cnbc. Im wilfred frost. Im seema modi. Good morning to you lets get to the market picture which is a rosie one the dow up as much as 200 points this morning the s p up some 15 the nasdaq up 28 over 200 points again ford dow it comes up a mixed week in performance. Last week the dow was up 2. 8 . The s p 1. 5 nasdaq was down 0. 4 pers perc s particular rally coming off the Senate Passing a tax bill late friday night yield rises over the weekend we close friday 2. 36 we touched 2. 4 and were just below that at 2. 39 this morning. Stocks are trading around the world with asia. A mixed session overnight in asia with the japanese anything kay down 1 2 of a percent. We saw a strong move in the south korean equity index up 1 . Thats the south korean kospi. Early trade indicates a strong start for early in the week. The german dax up more than 1 looking at the european banking index higher by 1. 5 strategists pegging it to the u. S. Senate tax bill moving forward. Lets have a look at broader markets. Oil prices slipping a little bit today. They did slip a little bit on friday but sorry, up slightly friday down 1 for the week. Down 1 this morning still, close to the high 50s 57. 8 dollar board is seeing some strength today, particularly against the yen. Again, in reaction to that Tax Development its up 0. 7 the gains against the euro and pound are a little lower about 1 3 of a percent bitcoin is push being back through another record this morning. Overnight in asia up to 11,700 its just off that level at the moment but it is still higher fractionally this morning. 11,274 getting closer to 2,000 now to our top corporate story cvs is buying aetna for 69 billion. This is a huge deal in the Health Care IndustryBertha Coombs joining us with a look at what this deal means for the sector and also the antiregulatory risk they could potentially face bertha this is a record deal for health care dwarfing those proposed deals that were scuttled in terms of the megamergers between insurers this is a vertical merger where cvs is effectively getting out of the business of just being a middleman when it comes to the drug supply chain. Cvs is proposing buying aetna for 205 a share 145 of that in cash 67 in stock. Theyve already secured guarantees of financing from their bankers. They expect that the deal would close in 2018, most likely in the first half, they believe they dont expect that there will be a huge Regulatory Burden the only area in which they have overlap is in the Medicare Part d. Cvs has a couple of Medicare Part d offerings in terms of insurance, but for cvs, again, it means getting out of being a middleman and being able to offer a lot of Different Solutions that puts together a lot of very interesting parts. If you look at their 2017 estimated revenues the company would have 240 billion making them the giant in the Health Care Space 22 million in terms of insurance. 90 million under pharmacy benefits but then you add in those pharmacies 9700 pharmacies and in there as well they would have clinics thats the part that cvs and aetna want to leverage together to try to get people to a place where they can get cheaper care. And thats one of the ways that they think that theyll be able to add value for their customers, for large employers, for states and for other large government contracts as well seema . Bertha, is there this idea that we could see more m a activity in the Health Care Insurance base you heard from express scripts last week. Their management saying we would be open to a deal if its at the right price. If they got the right price express scripts would be stand alone. In terms of being able to offer a value proposition, its a little bit tougher because on the one hand you have United Health that also has the pharmacy benefits included in their portfolio so they can really say to large employers, hey, look, we can cut out that extra piece of the middleman and we can really steer people to the most Cost Effective care thats where United Health has really been gaining share. Now youre going to have two bohemoths being able to do that. Express scripts is in the middle it doesnt adas much of a cross position express scripts, though, the options they could have could be perhaps partnering with an amazon if amazon, inbe deed, does pull the trigger and decide to get into pharmacy delivery. That, of course, the big question Bertha Coombs for now, thank you so much. We will hear from cvs ceo larry merlo. Cnbc exclusive on squawk box at 7 00 a. M. Eastern. Congress moving one step closer on tax reform ylan mui joins us with the latest on this ylan, we move to reconciliation now. There seems to be positive tones, i guess, about whether that will be achieved or not, but its not an insignificant hurdle. No, its quite important step in the process republicans are now focused on resolving the differences between the house and the senate bills. There are three big ones for individual rates the house has four, the senate has seven and those expire after 2025 also the corporate rate, the house cuts it to 20 right away while the senate waits until 2019 and the senate also feels the individual mandate, obviously the house doesnt. Its still unclear how moderates in congress will feel about that approach there are also a bunch of smaller issues that could wind up being bigger battles. They keep the alternative minimum tax. The senate does not appeal the estate tax thats been important to members of congress and there are also different rates for passthrough businesses and for repatriation. None of these obstacles seem insurmountable its worth noting that no one is howling about what the other chamber has done there was a wild card mix where President Trump opened the door to edging the Corporate Tax rate up 22 in the final version of the legislation. This would make the math easier. Republicans have bent over backwards to stay with what is supposedly one of the president s red lines. I havent heard anyone talking seriously about abandoning that 20 rate just yet. So the next step in all of this is the conference committee. The house will vote on members today. The senate could do that soon as well but most of this process is going to be happening behind the scenes its called preconferencing. Republicans will likely meet right up to december 22nd to make this happen. Ylan, is getting this signed before christmas a possibility absolutely. It looks like republicans had been planning to go on recess, go back to their states as of december 18th. Now theyre going to be staying in likely staying in washington a week longer trying to get this done and in terms of assuming that it does, how big a victory is it for the president . Major i mean, this would be the legislative achievement of the year for President Trump and for republicans. Its something they want to campaign on in 2018, and democrats are already looking to make this Midterm Election their issue. As of thank you for that dow up 217 points now in premarket trades soaring on this tax progress that were seeing lets bring in Larry Mcdonald head of global macro strategy at ac analytics a cnbc contributor larry, good morning to you. Hi, seema. Do you think the markets are over pricing the prospects of tax reform, especially given the challenges associated with the reconciliation process well, it has a lot to do with the media and wall street. Expectations bar from september, october and even into this month was so low i mean, we were lectured and lectured by literally 100 plus journalists this was dead on arrival two months ago wall street bank after bank had a negative attitude and in the last month goldman took their view up for this year in terms of probability so the expectations bar was low but i would agree, right now over the next 30 days youve got puerto rico storm funding, youve got chairman of the Federal Reserve that has to be approved and go through the final process and then you have this conference and so the whole thing is theres a lot to do and theres a very good chance of some surprise or a hiccup over the next 10 to 15 days that will probably shock the market a little bit. We saw Goldman Sachs up its gdp growth forecast for the year over the weekend based on this bill getting passed. Assuming it does get passed, do you think thats fair that we upgrade growth figures for next year or is it more of a sort of one off transactional boost to Company Earnings well, Global Equity market capitalization, Global Equity market capitalization is now approaching 100 trillion 100 trillion and even last year we were down to 58 to 60 trillion in early 2016 so the streets im not blaming goldman, but the street by and large is catching up with the Global Growth phenomenon and the street is in a very negative view on Global Growth because the dollar has been so strong in recent years but now theyre playing catchup because of a weak dollar. Well see a lot more of that with the streets playing catchup to Global Growth. What do you make of the tif tifts associated with Michael Flynn and russias relationship with the administration . Mr. Muellers taking his time i mean, this is something that hes its a broad investigation as you guys have pointed out and hes taking his time its always going to be there, but it just seems like one nothing burger after the next. The media credibility was hurt with this abc story, so well see. Markets dont arent hard phased markets have been laughing it off the whole way. Buy, sell or hold bitcoin right here oh, god i mean, i have no idea about bitcoin. I think the risk reward is poor here its about 200 above its 200 Day Moving Average if you look back over the last couple of years, thats been a good point to lighten up. Larry mcdonald of acg analytics. Time now for our top trending stories elon musk says he wants to send a tesla to mars. His first test of spacexs massive rocket will happen next month with a roadster on board falcon heavy will lift off in florida. Musk tweeting that it is, in his words, guaranteed to be exciting one way or another we dont even have people or humans on mars now were going to take a roadster up there . Good cross pollination and advertising for his two companies. Yeah, it really is. Taylor swift and ed sheer ren reunited over the weekend. This is the first time the famous best friends have performed together since back in 2013 when ed accompanied taylor on her red tour. I was reading about this. I thought they had a fallout, didnt they . I dont believe so. I think theyve always been best friends and theyve always been able to connect with their love for music. Well, there we go collaboration right there. Speaking of ed sheeran, hes shedding some light on beyonces email habits. Sheeran recently collaborated with beyonce she changes her email address every week thats taking the sort of protection against potential hacking to an extreme. Must be kind of annoying because if you want to email that person, its a sort of one way only. Been tough for me because i have her first email address, then it changed next week. So im going to have to get yeah. Keep holding out for her to email you. Rihanna attending the opening of rihanna drive in barbados shes the cultural ambassador for barbados she gave a statement for a special commemorative plague i love as well how passionate she remains about barbados, where she grew up. Big part of her story and her music. Still to come, talking taxes. Senator Mitch Mcconnell painting an op ed on whats in it for you. Todays must reads coming up. Another look at u. S. Futures, dow up 222 points in premarket. Youre watching worworldwide exchang exchange. We will be right back. Another day of work. Why do you do it . Its not just a pay check, you actually like what you do. Even love it. And today, you can do things you never could before. Youre developing ai applications on the cloud. Finding insights hidden in decades of medical documents. And securing millions of iot sensors. So get back to it. And do the best work of your life. Your bbut as you get older,ing. It naturally begins to change, and do the best work of your life. Causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Tha. Oh, burnton gravy . Ie. Gotta rinse that. Nope. No way. Nada. Really . Dish issues . Throw it all in. Cascade platinum powers through even burnton gravy. Nice. Cascade. 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. Time for our must reads, stories capturing your attention my picks in the wall street journal, tax reform, whats in it for you penned by Mitch Mcconnell. That bill passing the senate stage of the bill process on friday late friday night which is why futures are higher. He writes, lower taxes will help Small Businesses create jobs, investment and spark more growth simplifying the tax code will make it easier for people to reinvest more money. It will help american businesses succeed in an increasingly competitive global market. Im focusing on what hes saying about businesses as other aspects of it and well worth a look at the spin, the Republican Senate leader has put on the bill this past still got plenty of criticism throughout the stages if they can reconcile the bills. Certainly a big talker this week my pick is in the Financial Times not related to taxes. Its titled putin and the rules of russian politics. Katheryn hill writing the march elections are shaping up as a watershed moment for russias election there is hectic activity and speculation about the president s future, about the potential for a constitutional shakeup and even about how much control mr. Putin really does exert over daily events. Now his popularity rating right now above 80 . Its been there consistently over the last year, wilfred. The question is who he will allow to run against him there is one russian socialite who is 36 years old. People have their eye on her, but i think this is important as we talk about global politics. We just had a huge moment in china, consolidation of power with xi. More important, a sixyear term so his power wouldnt slip away quickly, but of course the main point of the article is the fact that clearly after this term he would under constitutional rules not be allowed to stand again how can he shuffle things . Including potentially unveiling a new advisory body which china has. Still to come on Worldwide Exchange, tax reform and jobs report dominate the docket this week well discuss what needs to be focused on r e dos pointing at 200 points fothw. Well be back in a couple of minutes. [vo] when it comes to investing, 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. Welcome back to Worldwide Exchange. Good morning to you. Market action, good morning for the markets. Up 222 points on the dow s p up 17. Nasdaq up 32 comes off a week where we did see gains, significant gains for the dow, 2. 8 . Gains for the s p, 1. 5 . Decline was down 0. 4 . Positivity coming last year off the back of the Senate Passing the tax reform bill late on friday night european markets have enjoyed the positivity as well it was down 1 last week in france and the ftse 100 looking at gains the dollar also rallying in light of all of this news significantly against the yen up 0. 7 its up 1 3 of a percent against the euro and british pound seema . Its a fairly busy week on wall street for Economic Data. Today look for october factory orders on wednesday is the adp employment report and Third Quarter productivity jobless claims are out on thursday the week wraps up with the november jobs report and Consumer Sentiment on friday to discuss a bit more on markets and where we where you should put your money to work, anthony chan, chief economist at chase very interesting to see stocks right now, the premarket trade, anthony, up 220 points for the dow. It suggests that the news from Michael Flynn which did rocket markets, the tax reform the big central focus. Thats right, seema this tax reform package is going to add a stimulus of. 5 every year we know there will be negative offsets. It is a positive influence in gdp moving forward. In terms of the likelihood from here, clearly a few hurdles still to get over. What extends price into the market i think that right now more and more of that tax reform is being priced i would say its 50, 55 its going through. Barons over the weekend said influence will be a bigger risk following inflation in the tax rate it will push the fed to be much more aggressive in 2018. Do you see that happening . If you look at one of my favorite indicators which is the new york Federal Reserves underlying inflation gauge, it has made a turn. It does signal when inflation hits a trough. If you look at the core personal consumption inflator, it probably will be moving higher we are not likely to see that in wages yet because what i find looking at this inflation indicator, that it takes about 26 months once it really makes the turn signaling the trough and inflation but with regard to average Hourly Earnings it takes about 42 months. Its going to take a lot longer to see wages picking up and inflation is certainly going to pick up as we move forward. What does that mean for fed action and for the dollar . Fed action it still means gradual increases because when you look at the personal consumption inflator its up 1. 4 year over year. Target is 2 when i say its going to start picking up its going to pick up from a very, very low base the fed still has time before they get aggressive. Two to three rate hikes is clear. Part of the Global Growth story weve been discussing is not just in the u. S. But over seas in asia thats helped emerging market stocks now up over 35 this year does that story continue into 2018 i have no doubt not only are corporate profits doing well, but when you look at price ratio for emerging markets, theyre almost 30 cheaper than u. S. Forward price earnings ratios. That tells me theres still valuation. I would not be surprised if in 2018 emerging markets continue to outperform. Historically stronger dollar not good for emerging markets stocks so the countries that have a lot of dollar denominated debt. Yes but if you look at the dxy it is down almost 8. 9 on a year to date basis so we may see a little bit of a depreciation in the dollar but nonetheless its coming from weakness that we saw this year. What about developed markets outside the u. S. I think developed markets outside the u. S. Are exciting. Were seeing real gdp in the eurozone is still running 2 1 2 year over year thats much faster than the potential growth rate of over 1 it looks like theyre in no rush to get rid of quantitative easing and in no rush to raise rates. State side whats your topic . State side, we still Love Technology we love health care and coming in third, the Financial Sector of course now with a Movement Towards less regulation, the Financial Sector is certainly sitting in a sweet spot. The sector underway is your biggest . Were not that excited about sort of thedefense of the staples, the telecons, those type of sectors not excited. A little more excited of the industrials. Anthony chan of chase just over under 1 minute in fact to go main thing to watch is futures this morning soaring higher over 200 points for the dow as you can see. The s p up some 17 points. Nasdaq up 32 all focus now on washington in terms of reconciliation. The divergence in tech stocks which did under perform last week. Can they be a part of this rally that were seeing this morning that continues what that means for nasdaq. That is it for Worldwide Exchange. Quk xom nt. R joining us sawbo cesex good morning here we go again u. S. Equity futures soaring this morning as wall street cheers tax reform big deal to announce today finally. Cvs Health Buying aetna for 69 billion. The ceos of both companies will join us at 7 00 a. M. Eastern in a cnbc exclusive plus, wild swings in bitc n bitcoin. The Digital Currency rebounding from a 20 plunge last week to hit another record high. Its monday, december 4th, 2017, and squawk box begins right now. Thank you, wilfred 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 Market site in times square. Im becky quick with Andrew Ross Sorkin joining us is guy adami. Bringing coffee for the troops. I try to spread joy first time on the new set, love it we used to do the show from here great to have you here today. Perfect day to have you here because of whats been happening with the markets this morning. Folks, check this out. Take a look at u. S. Equity futures. After the Massive Gains we saw last week where the dow was up 2. 9 gain of 673 for the week futures indicated up by 218 points above fair value. S p futures up and