Sara eisen great to have you with us lets get straight to the markets. Extraordinary seesaw session yesterday. The dow up 300 points at one stage in the morning, around about midday lunch time, started selling off, such that the dow ended off 58 points or 0. 25 those intraday swings were similar across each of the indices. The s p ending lower the nasdaq ending down 1 . Definitely the same theme throughout the day whether we were at the peaks or troughs thats the selling of things like tech and buying of things that could benefit from a lower Corporate Tax rate like financials this morning you can see a similar theme once again the dow is higher. The s p is fractionally higher but the nasdaq is lower. The dow up 8 4 points. Tenyear treasury note did rise over the weekend to cross above 2. 4 , but slipped a bit yesterday. It is below that level still today, 2. 38 on the tenyear. Look at whats going on arou around the globe ahsia is mixed but mostly lower. The south korean kospi is higher by a third of a per sen. The hang seng is down by more than a half percent. Watching developments over here with whats going on with our tax reform and we lost steam in the afternoon with the markets and the dow only ending up higher look at whats going on in europe also some brexit uncertainty that weve been talking about earlier on this morning on cnbc with our team over in europe you can see the market there is mostly lower you have the ftse 100, the slight stand out up about 0. 2 should mention, had some eurozone october retail sales, plus 0. 4 year on year. The consensus was 0. 7 so quite a big miss. Earlier the composite pmi for the eurozone was at a high let look at the broader markets, oil prices down 1. 5 yesterday having had a decent run of late. Today at 57. 3 for wti. Dollar board for you which was markedly higher at the start of the day yesterday as were equities, sold off a bit as did equities ended up 0. 2 for the day as a whole. Today mixed picture. Slightly stronger against the dollar and the yen markedly stronger against the pound which had a seesaw session yesterday, as courtney mentioned. As we look at the intraday from yesterday, it jumped early yesterday on thoughts they might have reached a settlement on the irish border and citizens rights, about two hours later, the dup in Northern Ireland, the government partners for the conservatives decided they didnt support the deal so we sold off again and continued that selloff again today bitcoin, just to round things up, whats the latest on the price . We are at 11,620 theres a pair of economic reports on the wall street agenda the october trade deficit is out at 8 30 a. M. Eastern time followed by the ism Manufacturing Index. Auto zone and hg supply report before the opening bell. Dave busters is out after the close. A fun place to go. Dont know if you have been. I havent i had not been there before i moved here switching focus back to markets, are we finally can capitalizing concerns about valuations and performance in the tech sector . Yeah. The big moves in the market are telling us theres been profit taking in those big tech names that have done a lot of the rallying this year youre seeing financials gain on the flip side. This is what weve been seeing for quite some time. Certain tech stocks have high valuations, not necessarily a place we want to play a positive tech theme there are other stocks around the world that can play on Technology Financials being much stronger of a play for two reasons. Benefiting from deregulation, benefits from lower tax rates and financials are the one sector that benefits quite nicely from higher yields. We know from the fed and we know from Central Banks around the world that there will be a sense of yields going higher whether its in the treasury market or in the Monetary Policy rates, and thats beneficial for financials across the world, particularly in the u. S. Consumer discretionary hit a new record high yesterday. Theres a number of stocks mixed in there you have some big names like some of the Media Companies which are mixed in with the retailers. In general retail actually had a strong day yesterday several days of gains. Do you read anything into that when we talk about the holiday season, the consumer, with trends so far looking pretty strong the consumer across the world has been a key driver of the recovery and the broader few years. Even this year when you see retail sales numbers, consumption elements of gdp being the stronger one, 70 of u. S. Gdp is consumption, thats a strong part of the economy when you look at holiday sales, the thanksgiving, singles day in china or in the Christmas Period we expect that to be strong, continuing the trend of the past few years of strong retail sales and strong consumption across the world. Its been agood period for the past few years when oil prices have been low. Oil prices are on the rise, so we expect petrol prices to increase as a feed through, but that element of consumer spirit is still there we expect that to support some of the stocks in the u. S. And europe lets focus in more on the tax reform bill. If and when it isdelivered wha do you expect its effect to be on the underlying economy, given that the market move yesterday was so resoundingly positive for a few hours and sold off will the effect on the economy be temporary its going to be tricky to see, because theres so many elements of the tax reform bill in that. The headline rate as it falls from 35 down to 20 , as has been current ry star rly stated have great benefits for s p 500 companies or smaller mid Cap Companies in the u. S. That will get higher eps based on reduction of a big cost. However, for the xhir, we econo expect this to boost gdp going forward, but its almost a stoking of the fire. The u. S. Economy is in late cycle. Tax reform can help certain parts of the stock market perform well as weve seen Certain Companies perform well yesterday. For the economy, we expect this to be a time when recession risks are rising not in the next 1 mon2 months, in the next two to four years, with wage growth increasing, Consumer Spending falling, thats in the longer term, the tax reform can help but cant stave off the ending of an Economic Cycle thank you very much for joining us. In washington news, House Republicans introducing a socalled stop gap spending bill the temporary measure would fund the government until december 22nd Mitch Mcconnell says it will be passed by the end of the week. Nancy pelosi and Chuck Schumer are expected to meet with President Trump this week to begin talks on a longer term spending bill. Republican leaders in the house and senate are racing to merge tax plans and send a bill to President Trump before the end of the year. A Conference Committee plans to reconcile the two piece of legislation starting this week the house has four individual rates and the senate seven the house cuts the corporate rate to 20 right away, the senate waits until 2019. Well hear more about the Conference Committees plans later this morning when house ways and means chairman kevin brady joining squawk box at 8 10 eastern time. The Supreme Court handing President Trump a victory. The court says the president s travel ban can go into effect while challenges continue to be heard in lower federal courts. Restrictions will be placed on citizens from eight nations, six of those countries are majority muslim. The uk cineworld is buying u. S. Movie chain regal landon has the details good morning cineworld has agreed to buy Regal Entertainment for 3 3. 6 billion. The deal values regal at 23 per share or a 12 premium to regals Closing Price as of monday it applies a total transaction value of 5. 9 billion combining the uks largest cinema operator with regal helps bet pore signals the firm to take on u. S. Industry leader amc holdings and give it more scale to fight growing digital outlets like netflix and apple the transaction provides compelling value for stockholders and will further build on a strategy of innovative concepts and premium amenities. Look at the stock. Shares of regal have risen more than 13 this morning cineworld is down we already discussed this, to summarize the crucial advice, they need to bring the british pick and mix candy station over here, take the u. S. Popcorn back to the uk, and u. S. Sized seats are much better. Works better for you. I have not had that british candy you say is so great. You have to bring it in and share with the class i did do that after halloween, you missed out. I will do it again i totally missed out. Maybe you will bring back more after the holidays done. Starbucks is opening a 30,000 square foot roastery in china today. The store is locateded in shanghai it features small batch roastings of rare and exotic coffees. Starbucks is also partnering with alibaba to create an augmented Reality Experience this morning Andrew Ross Sorkin reports live from the roastery among his guests are Howard Schultz and alibaba executive chairman jack ma i wish we could taste system of that rare and exotic coffee blend. Its a fascinating move for the company. Theyre rolling out these roastries to bring back the fact that theyre a premium brand, not a mass market brand. Also interesting how much Howard Schultz, though hes no longer ceo, he continues to focus on these roasteries he spent a lot of time on the shanghai one, and that tie up with jack ma, that will be a great set of interviews on squawk box coming up well stay tuned for Andrew Ross Sorkin. Amazon officially launched in australia first orders were taken today. Retail stocks rose in australian trading as many analysts took noted of uncompetitive prices for amazon across their platform also not some of the reports suggesting they didnt have quite as good a spread of products as they developed in other nations theyve been in for quite some thyme interesting that this has come along and the reaction, because it wasnt such a great launch, but Retail Stocks prices have gone up. Clfrnlgts is which is so interesting right now theyre not worried, but just wait. Theyve also been announcing the launch and the launch has not been as good as possible a small pick up today. The other thing on amazon, i know from various stories when i was investing there and friends there, from 2010 to 2012 and 13, a lot of aussies were shopping on amazon but the u. S. Version and willing to pick up the transport costs to ship the whole way. It has got a lot of exposure there already as a brand and as a company. So if they can get these things right, it will be the same issue for traditional retailers as you would expect now they have the Fulfillment Center there, which is supposed to make the transportation costs lower lower, but if the dollar is not as strong, there are other forces at play lots of news out of australia. Hopefully mandy is doing well. A major week for brexit talks, a live report from london on what you need to know next. And later today, wilfreds live coverage from the Goldman Sachs conference, his guests will be Brian Moynihan and Steve Schwarzman what we do every night is like something out of a strange dream. Except that the next morning. It all makes sense. Fedex powers Global Commerce with vast, farreaching networks. Deep knowledge of industries. And, yes. Maybe a little magic. We thats why at xfinityic. Weve been working hard to simplify your experiences with us. Now with instant text and email updates youll always be up to date. You can easily add premium channels so you dont miss your favorite show. And with just a single word, find all the answers youre looking for. Because getting what you need should be simple, fast, and easy. Download the xfinity my account app or go online today. Welcome back to Worldwide Exchange. Futures pointing higher for the dow and s p, lower for the flaz d nasdaq yesterday we were up 300 points on the dow but only ended up 58 points higher. The nasdaq down a full percent shaping up a similar picture again today with tech the laggard. Lets look at the pound over the last 48 hours. We will talk brexit later. This highlights how the optimism of yesterday morning that a deal on a divorce bill settlement and the irish border was done, late their w l that was scuttled when the dup leader said he did not agree with the british Prime Minister. Peter spiegel joins us from the financial times. Whatever way the Prime Minister turns, she will annoy somebody this week is a crucial, crucial crunch week for her future it does i know, you and i have talked about this repeatedly over the last few months that shes hit a crucial crunch time. Were waiting here today to see whether this is the moment where everything blows up. There are irreconcilable differences here if you look at Northern Ireland, you have two choices which dont coordinate either Northern Ireland has a Regulatory Regime that is similar to the republic of ireland, but that leaves a rupture with britain, or it sides with britain and has a regulatory scheme similar to the rest of the uk but has a hard border are ireland the problem is those are irreconcilab irreconcilable if Northern Ireland gets a special deal to be closer to ireland, scotland will want a special deal and london will want a special deal. Suddenly you can feel the whole thing unwind here. Theresa may met with the cabinet this morning the question is do these ruptures, which we knew would always come but have been pushed off and pushed off, is this the day and moment where these things blow up in london thats what were watching closely. They could paper this over and push it down the road, but we know this was always going to be the issue which is almost undoable we wonder whether this is the moment where the whole thing unwinds. As recently as a month ago, we would have thought the hard line brexit members of the conservative party, whether its boris johnson, michael gobin, they wouldnt have wanted to accept the divorce settlement but they wouldnt want to accept regulatory alignment across the uk with the rest of the eu, yet theyre not speaking up as much as we would expect is there a sign theyre starting to realize that the whole thing could unravel, the whole idea of brexit could unravel unless they back theresa may yeah. This ek exposes new dividing lines within the tory. You have unionists and those who feel the union is not the most important issue. If you are a hard line brexiter and all you want is to leave the eu, you dont care about Northern Ireland that much Northern Ireland tens to be a peripheral issue in british politics since the good friday when we settled the troubles if youre a unionist, and the formal title of the tory party is the yune nounionist party, y want to see Northern Ireland turn into a quasihong kong special arrangement with the eu. So youre seeing dwigs withdivin the tory party realign themselves, and those who are one nation conservatives are reasserting themselves were watching what is the new alignment, where the new cleavage is within the tory party and is that where the split mideasterns today. Emerges today peter, quickly, to wrap things up, what is the reaction of the pro brussels, pro europe elite who of course want the eu to continue to strengthen. Would they have wanted a deal yesterday or are they again rubbing their hands with glee at how badly this is going for the brexiteers they think any collapse of the british government, any divisions within westminster is bad for them if theres no deal this is bad for ireland. Ireland uses britain as its gateway to europe. It cant have a hard border between ireland and britain and still survive economically so they dont want bad things to happen to ireland. Theyve been amazingly united behind the irish dance there was a deal between dublin and london on wording that would allow for Regulatory Regime to mirror itself in Northern Ireland and ireland. They wanted a deal done by the summit so theres no schadenfreude here they were shocked that theresa may, who has a competence agreement with the dup, had not lined up her own allies in parliament beforehand. Theres a bit of a bemusement about why theresa may and the tory government cant get their act together on this when its their own backyard that seeps to be more trouble. They had a deal with the irish and brussels, and it was her own backyard that caused trouble yesterday. Peter, thanks for joining us. Coming up from taxes to keeping the government funded a live report from washington. Ddos campaigns, ransomware, malware attacks. Actually, we just handled all the priority threats. You did that . We did that. Really. We analyzed millions of articles and reports. We can identify threats 50 faster. You can do that . We can do that. Then do that. Can we do that . We can do that. Your bbut as you get older,ing. It naturally begins to change, can we do that . 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. And im the founder of ugmonk. Before shipstation it was crazy, like. Its great when you see a hundred orders come in, but then you realize ive got a hundred orders i have to ship out. Shipstation streamlined that whole process. The order data, the weights of the items, everything is seamlessly put into shipstation, so when we print the shipping label everythings pretty much done. Its so much easier so now were ready, bring on the orders. Shipstation. The number one choice of online sellers. Go to shipstation. Com tv and get two months free. 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. Lets head to washington and tracie potts joins us from the nations capitol with a look at todays busy agenda. Good morning busy agenda when it comes to responding to russia and the latest allegations, but also here on capitol hill with money, whether it be your tax money or the budget opposite strategies as Congress Tries to slow down the budget process to avoid a Government Shutdown but speed up this tax plan reporter over lunch today President Trump will give republicans another push to get tax cuts done soon were one huge step closer to delivering to the American People the historic tax relief as a giant present for christmas. Reporter democrats not part of the time negotiations argue the republican tax plan is disastrous this is armageddon. This is a very big deal because, you know why theres really a very hard way to come back from this reporter democrats want to build an obstruction of justice case against the president for firing february fib director james comey while comey was investigating former National Security adviser mike flynn. In this tweet, the president says he knew flynn lied to the fbi. Now the president s attorney and a top academic are pushing this defense. You cannot charge a president with obstruction of justice for exercising his constitutional power to fire comey. Says the president is above the law. In the end theyll be unsuccessful reporter Congress Hopes to be successful at avoiding a Government Shutdown on friday. Theyre trying to avoid high drama and possibly millions of government workers losing paychecks before the holiday thank you very much for that. Tracie potts for us in washington still to come, the top stories and a round up of the Global Market picture. Vi iand are consumers still longt . Mcdonalds rolling out a new twist to its dollar menu 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. Can this much love be cleaned by a little bit of dawn ultra . Oh yeah one bottle has the grease cleaning power of three bottles of this other liquid. A drop of dawn and grease is gone. Dow futures pointing to a higher open on wall street but the rest of the market is not following suit. The uks cineworld is buying u. S. Movie chain regal. And supersonic flight. A new way to get from San Francisco to tokyo in less than six hours could be on the cards. Its tuesday, december 5, 2017, youre watching Worldwide Exchange on cnbc. Good morning. A warm welcome to Worldwide Exchange on cnbc. Im wilfred frost. Im Courtney Reagan in for sara eisen good to be with us big day for you. Some big interviews coming up, moynihan and schwarzman. Lets look at where futures are indicated now for the market when it opens in just about four hours from now the dow is indicated higher by 57 points. The nasdaq and s p are indicated lower, which would mirror yesterday after the dow was up 302 points and ending up just 5 points higher. Boeing, disney and home depot the most positive impact on the dow. A number of Retail Stocks hitting alltime highs including home depot, lowes, ross stores and others Consumer Discretionary and materials hit new highs. Tech is down about 2 . We will continue to watch that lock at whats going on with the tenyear note earlier in the hour hanging just about unchanged below 2. 4. Thats about where we are now. 2. 38 . Looking at markets around the rest of the world. Asian equities are mixed today mixed it lower hong kong down a full percent. Japan and shanghai lower european trade which ended positively yesterday, closed before we got the afternoon selloff state side the dax was up but softer today. Pretty much across the screen, ftse 100 eking out a small gain. Lets look at the price of oil. Wti and brent both lower yesterday. So far this morning we are also continue flag ling that lower td brent crude is down to 62. 3. We did get some news from the u. S. Shale drillers adding more rigs yesterday that was pressuring the price of oil. We understand what is agreed to between russia and opec, but we have to see how that plays out lets look at the dollar for today. Weve seen pretty flat trade against the youre roeuro and td is weaker against the dollar after we had some drastic moves overseas in the uk with brexit negotiations the price of gold ended up pretty flat to slightly lower yesterday. Thats about where we were trading this morning on todays agenda. Theres a pair of economic reports. The october trade deficit is out at 8 30 a. M. Eastern time followed by the ism Manufacturing Index. Auto zone and hg supply report before the opening bell. Dave busters is out after the close. In washington the house and senate are racing to merge their tax plans and send the bill to President Trump before the end of the year. Among the biggest differences, the house has four individual rates, the senate has seven. The house cuts the corporate rate to 20 right away, the senate waits until 2019. The senate repeals the individual mandate, the house doesnt. Well hear more about the plans this morning when kevin brady joins squawk box at 8 10 a. M. Eastern time. House republicans introducing a so called stop gap spending bill. The temporary measure would fund the government until december 22nd Mitch Mcconnell says it will be passed by the end of the week. Nancy pelosi and Chuck Schumer are expected to meet trump late their week for a longer term spending deal. Japan reportedly wants missiles with enough range to strike north korea reuters says the country plans to acquire Precision Air launch missiles. In california, a massive brush fire continues to spread after burning 10,000 acres one person is dead and hundreds of homes have been evacuated the cause of the fire is unknown. Theres a deal in the entertainment business this morning. The uk cineworld has agreed to buy u. S. Movie theater chain Regal Entertainment for 3 3. 6 billion. The deal values regal at 23 a share. It combines the largest cinema operator with regal to take on amc. Cineworld shares are lower down almost 3 stocks to watch today. Shares of Ascena Retail are plunging this is the parent of anne taylor, lane bryant. They issued a weak forecast. The companys ceo citing fashion missteps he says the retailer cant afford that in todays environment this is now a Small Company with a market cap of about 5 500 million so shares are down about 20 in the premarket. That equates to about 52 cents they have many, many, many stores which is why we still follow it so closely. Shares of Coupa Software are under pressure despite better than pektsed resu expected resu. And underarmer appointing David Bergman as cfo he been serving in the acting role since early this year also the chief digital officer will leave the company in january. Shares are down a quarter percent. But thats among the latest executive changes at under armour going through quite a number of transitions. Shares of advanced auto parts declining. Analysts pointing to news that Vice PresidentRobert Cushing dumped 163 shares of the company. Moscow says it will buy back up to 4 billion of its class a shares they are raising the Quarterly Dividend by 14 . Up 0. 7 . Clariants ceo says they are open to making fresh 5 question zig acquisitions as they deal with activist investor white tail time for todays top trending stories netflix says production on the sixth and final as soon as of house of card als will resume el next year. Netflix said the decision to end the series was made before spacey was accused the eight episode season will focus on costar robin wright. I look forward to it still just as much. I think they can make it darn good still im confused do they have to retape what theyve already done and change i guess theyll start afresh. Okay. But the storyline can probably focus still quite similarly. I think so, too i binge watch it all at once, then it is so long until it comes out again. I dont want to ruin it for everyone else. The next star trek movie may come with a few colorful extra words. Quinton tarantino has pitched the story idea for the scifi franchise with producer j. J. Abrams the Hollywood Reporter plans to convene a writers room with tarantino in the directors chair. Tarn ti im not sure this is going to work. I loved the most recent movies, but he makes them very different. Well see if he delivers flying to asia any time soon it could come faster Japan Airlines investing 10 million in boom supersonic, a startup based in denver boom already partnered with richard branson, the move comes with hopes that boom could develop a jet cutting flight times in half with speeds of mach 2. 2, making trips from tokyo to San Francisco, 5. 5 hours. I hope they help this Company Along and invest more. I love this. Awesome really awesome. The speed, 1400 miles per hour, is like the speed of concord, which could do london to new york in three hours amazing its taken this long to try to do Something Like this again. The focus is more on space travel, but i imagine there must be the ability do this with the innovations we have now. Why havent we been faster earlier . Its questions of economy fuel efficiency. Still a long time since 1979 you think we could have developed that sort of thing that was a great win for british and french engineering back in the 1970s. I would love that. Very cool mcdonalds is bringing back the dollar menu. The fast food chain will make it part of the regular menu on january 4th. But this time items will cost 1, 2 and 3. There are a dozen items including a sauce taj busage bur a buck, a mcdouble for two, and a happy mreeal for 3 a cup of coffee is 99 cents, and its good. Its very good. The large one is enormous its again, on the day that starbucks is trying to very invent itself as a highend coffee chain, you can see why they need to the competition at the lower end is undercutting them my father has always been a mcdonalds coffee guy. The issue is, you go in there trying to get a coffee, you end up with Something Else as well coming up, todays mustreads including a piece about whether concerns about Net Neutrality are overblown. Across the board for the european markets, down well be back in a minute. The moment a fish is pulled out from the water, its a race against time. And keeping it in the right conditions is the best way to get that fish to your plate safely. Bacteria can multiply to high enough levels that even cooking it will not destroy all of them. Its definitely the most important thing in my business. How fresh is the fish . Where it comes from . How it gets here. The more i know, the better. Sometimes the product arrives and the cold chain has been interrupted, and we need to be able to identify where in the cold chain that occurred. We took our world Class Network and we developed devices to track environmental conditions. This device allows people to understand whats happening not only with the location of that asset, but also if its too hot, if its too cold, if its been dropped. Its completely unique. We ship fish, beef, poultry, vaccines, insulin. This is about monitoring and protecting everything we ship. I catch all this amazing, beautiful fish and then once its out of my hands, i have no control over what happens to it. If you have a sensor that can keep track of your product, it keeps everybody kind of honest that way. Its really all about the network. You are looking at trillions of transactions a year. Not too Many Companies in the world can even scale to that type of volume. Who knew a tiny sensor could help keep the food chain safe . Food has to be fresh. Its that simple. Welcome back to Worldwide Exchange. Lets get you up to speed on the market action. Its similar to yesterday. The dow is outperforming, tech stocks underperforming yesterday the dow ended up a quarter percent, the s p and the nasdaq down. The stocks that did well this year were selling off. The ones that maight benefit fro tax reform outperformed. Lets look at oil prices they were down yesterday about a percent. Half a percent today 57. 2 the price of wti. Still in the high 50s, so nothing too concerning there dollar board, similar to the equity market. There started the day strongly, pulled back by the end of the day. Ended up by a quarter percent, today were on gold now, so im not sure whats happening on the dollar board the dollar is a bit mixed at this hour. Gold is up 5 basis points. Thank you very much so, time for todays must reads. My pick is from project syndicate from the cofounder of c ceosynovation. The author writes about chinas success in consumer basing Digital Technologies and ecommerce with food apps, bike sharing apps and alibaba they argue while business in technology lags t may be about to change. Retraining the displaced will ab major challenge for chinas government as will be preventing the major digital players from securing innovation stifling monopo monopolies, but the governments readiness to embrace the emerging digital age, per suring supportive policies and avoiding excessive regulation, has already placed the country at a significant advantage. The most interesting on that theme that i learned about from general mcchrystal, in terms of the question of who has the best weaponry in the world, is the u. S. Miles ahead they said, no, chinas innovation means they have caught up as much as the u. S thats something to keep an eye on my must read is from the New York Times. Why concerns about Net Neutrality are overblown the good news is that we will soon have a real world experiment to show who is right and who is wrong on this topic the United States will get rid of its rules and the European Union and canada will keep regulations. In two years time will american internet be slower, less innovative and split into two tiers leaving canadians to enjoy their fast and neutral net thats a good point. Well see if the u. S. Rules rolls back, well get an example of whether the fears are overblown, which i guess is sort of pro business, antibusiness argument at the moment but the internet changed drastically since Net Neutrality became a core idea well see. He argues mainly its overblown. Absolutely. This is a take from the New York Times suggesting they should be rolled back stateside. Approaching the top of the hour the team is getting ready for squawk box. Andrew joins us from china this morning. Were looking forward to a great day ahead. Hi, guys. We are in shanghai this morning at the grand opening of the new starbucks, the largest starbucks in the world about 30,000 square feet we will talk all things china we have an amazing lineup coming up on squawk box. Well talk with Howard Schultz from starbucks, but also jack ma of alibaba a Big Conversation about the Chinese Consumer and the relationship between u. S. Companies and china. Then we will also try to introduce you to the most influential investor in china. The Warren Buffett of china from sequoia capital. Well talk with Joshua Cooper a putting into perspective whats happening on the ground. And well introduce you to the ceo of starbucks china, melinda wong we have a lot coming up today. We will be seeing you guys in just a bit when squawk box begins for now, i will send it back to you. Thank you very much, andrew it will be a great show with a lot of focus in china. Amazon has officially launched in australia. Retail stocks rose in australian trading as analysts took note of uncompetitive prices for the prices on the amazon platform. This is the business being done from amazon in australia with its distributions that are located in the country business was done there belie previously its interesting this has resulted in a relatively poor launch for amazon, but bear in mind Retail Stocks have already, you know, pulled back, and traditional Retail Stocks have pulled back on news of ecommerce entrants. Thats an example of a developed market where amazon has not made a big impact yet 23 categories only. Theyll get bigger that was the issue, the launch came with not enough product spread as opposed to different pricing. Discovery communications will become the majority owner of o. W. N. , the Oprah Winfrey network. The xaechcompany announcing it l increase its stake to 70 . Winfrey will stay on as chief executive through 2025 i wonder if shale continuee do her favorite things like on her show the whole audience would get cars, 3,000 blankets. Hes absolutely outstanding still. Coming up, tech stocks under pressure this week while the dow rockets to another new high despite pulling off the ghhis of the session yesterday. The full market story straight ahead. What we do every night is like something out of a strange dream. Except that the next morning. It all makes sense. Fedex powers Global Commerce with vast, farreaching networks. Deep knowledge of industries. And, yes. Maybe a little magic. Theres a pair of economic reports on the wall street agenda the october trade deficit is out at 8 30 a. M. Eastern time, followed by theism Manufacturing Index at 10 00 lets look at futures now. Tech sold off yesterday, the dow performing and the s p and nasdaq both lower. The dow is up 45 points, yesterday the dow was up 300 points before midday, and ended up only 60 points or a quarter of a percent lets bring in hans olson. Good morning to you. Good morning. Lets talk about the intraday move yesterday and whether that concerns you there was a lot of optimism which eroded significantly yeah weve been pulling in a lot of return we would expect in the early part of 2018 into the closing days of 2017, the one that we had of late is both remarkable and somewhat expected in the sense that its pricing a lot of the tax benefit from the deal but that said, you know, were up 4 , 5 since the end of october. Thats a lot in a short period of time. If its pulling next years gains early on, you thinkthis is totally the tax hopes, less of a santa claus rally that we often see in december. I think Something Like 74 of the time the dow is higher in december youre right. Some of this is definitely the santa claus rally. The timing is fortuitous without a doubt were pricing some of that 5, 10 per share in earnings that will result from lower Corporate Taxes so when you start relating that to earnings expectations for 2018 on the s p or something on the order of 11 growth, add th hair cut that you do for 5 , 7 , add 3 , 4 more on top of that, you have some real Earnings Growth that markets are beginning to price nfrnlg term nfrn in terms of oil prices, the impact on the economy, do you think its something similar do you think theres something more temporary that people might be pricing in . From a macro perspective, any pop that we would get would be more consumer related. Im not sure we will see a flood of investment as a result of lower taxes that takes time to take effect. You have to plan for it, then you release the money over time. From a consumer standpoint possibly, i think the real durable impact here fhere, if tn make the pivotto Regulatory Reform and relief, both that and tax relief could be the game changer in getting us back to a tren grow trend growth of closer to 3 there are differences between the two bills. Does the market care so much which way some of those differences go and how big of a difference will that make to equities there are sectors that care you can see this playing out now with the corporate alternative minimum tax. I have to admit, i never knew there was a corporate alternative minimum tax. There are all these tax carve outs that industries have enjoyed heretofore that are threatened when you run to get the deal done the way they are with the very titght time frame now that will be relitigated in the halls of congress. As you look at 2018, do you prefer developed Market Equities internationally or state side . 2018, i think were developed Market Equities international. We like the european story still looks like theyre a couple years behind us on the growth trajectory and earnings trajectory emerging market view . If we are right and Interest Rates continue their path of normalization, thats going to be a pretty big drag on returns in the emerging markets. So were less enthusiastic about that hans, great stuff hans olson for us. Just about 20 seconds left or so keep an eye on futures, mixed picture like yesterday and also tune in later, Goldman Sachs conference, we have Brian Moynihan and Steve Schwarzman at 11 00 and 12 15. At it thsfor Worldwide Exchange. Squawk box is on its way no matter how the markets change. At t. Rowe price. Our disciplined approach remains. Global markets may be uncertain. But you can feel confident in our investment experience around the world. Call us or your advisor. T. Rowe price. Invest with confidence. A wild ride yesterday in the markets. Dow futures are pointing to a higher open after coming well off the highs yesterday. You saw the nasdaq today tech appears to be under pressure again on the washington agenda, tax reform banking regulation, and a bill to fund the government well get a life repove report t ahead. And the uk cineworld is buying why do i think cinnabun cineworld buying u. S. Movie chain regal. Its tuesday, december 5, 2017 squawk box begins right now. Live from new york where business never sleeps this is squawk box. Good morning welcome to squawk box on cnbc. Im becky quick along with joe kernen Andrew Ross Sorkin is in shanghai today well check in with him in a moment our guest host is ed keon from qma. Great to see you today great to be here. Well dig in everything happening with the markets in a moment yesterday the dow ended higher, but youre talking aboutling aft the dow was up about 250 points above fair value the do