Good morning a warm welcome to Worldwide Exchange on cnbc. Im wilfred frost. Im Morgan Brennan. Good morning great to have you with us its not a great picture for the futures market this morning. Big selloff in asia has infected the rest of the world. Futures pointing lower to the tune of 70 points. Less pronounced in the Asian Session or the european session. Nasdaq down 23 the s p down 6 yesterday the broad summary was that a small tech recovery was not enough to spur the other indices higher we were down 0. 4 for the dow and s p. The nasdaq did outperform but down slightly. 10 of 11 s p sectors were lower. Only tech was higher tenyear treasury note has been slipping in terms of yield this week so a riskoff sentiment. A bit of buying of the tenyear bond has pushed yields down to 2. 33 this morning. Over the weekend we pushed above 2. 4. Its been a steady slippage. A bit of buying of bonds over the course of the week turning to asian equities red arrows on that continent lower trading session across the board. The japanese nikkei ending down 2 the hang seng also down 2 for wednesday trading. And actually its worth noting, its down about 5 from the recent tenyear highs we saw that index hit that last month shanghai composite and the korean kospi lower today turning to europe, we have weakness there as well the dax is the weakest performer, thats down 1 . All of these indexes are still slightly higher for the week though in asia we have got a real marked pull back in terms of hong kong not just down 5 from that recent high, but down 5 over the course of the last five trading sessions. That Asian Session its been tech and basic materials that lagged copper did slip 5 yesterday oil prices s down a fair amount yesterday. Gained a little yesterday, sorry. Down 0. 8 today for oil. Dollar board for you as well which did fractionally go up 0. 1 today today were seeing sterling continue its slide issues for the brexit negotiations, a story in the Daily Telegraph in the uk. We have got the dollar board coming the pound down a half percent or so the story today is that theresa may is facing result from the likes of Boris Johnson and the hard line brexiteers within her cabinet. The dollar is lower against the yen, flat against the euro bitcoin at another allhtime hig this morning pushed through to 12,500 just below that now, 12,480. Copper yesterday, a selloff, slipping 5 b . Thats why basic materials are doing so poorly in asian trade today. For more on the market action, lets bring in steve grasso, a fast money trader. Thank you very much for joining us in terms of the u. S. Market. So far the futures not too infected by this rather large asian selloff which is encouraging. It is encouraging. You kind of want to start as a trader, ive been doing this for a while. You want to start down, start in the hole, so you can climb out of it, and everyone gets that selling out early. You never want to hold in there. It leads you to the potential to basically sell off after the u. S. Opening you want to see the weakness im not afraid to see the weakness prethe new yoos the ne opening at 9 30. Most of the talk has been about tax reform how much should investors be focusing now on the potential for a Government Shutdown . You know, every time we start to get bought into the idea of a Government Shutdown being the catalyst for a selloff, its always a fools error. We need to focus on tax policy yesterday, wilf, i mentioned you saw the Tech Companies sort of slightly recover, but they closed weak. For me, if the amt, if you focus on amt getting pulled out of committee on a Conference Committee when the senate and house are mentioning the tax bill plan, you will really see large cap tax take off again and bounce that will drive the markets higher we need to see amt disappear from all negotiations. Because that is the real reason why the market wanted a rally higher its a lackluster tax plan it was just for corporate america. If you dont get it for large cup t cap taxes, whats the point . What do you think about the bond market . We have flirtations breaking higher on the long end of the curve, whether its the tenyear or longer. We crossed 2. 4 over the weekend. Markedly lower again this week what does that tell you . Everybody is worried about the flattening of the yield curve. You can see the projections out there. If we continue to flatten at the same pace we have been, there should be an inverted yield curve to greet us maybe spring or summer. I think people are justify bly so concerned with the flattening of the yield curve its still premature i will tell you the more we look at the fed governors, some dovish ones, what do we hear yesterday . Some of them are still concerned with the lack of inflation maybe we should skip december. December is all but factored in as far as a rate hike. I think they should look at it theres no rush with inflation the way its been tamed to raise rates what are you doing it for . Youre staying ahead of what curve exactly . I think the market would greet it with bullishness. I dont think theres a rush to chase the inflation curve. What do you make of the move lower . Dramatic move lower in copper in the last 24 hours. Its tied to economic its considered an economic indicator. How much should we read into that you never want to look that over its materials, growth, large cap tech if you look at the way to play or the proxy to play growth, its either through copper or through large cap tech whenever you have questions on where growth is heading, thats the first thing to take the chunk out of you have to look at where people have gains this year if you look at december, everyone is so skittish. The markets have returned an enormous amount. People are up. Long short hedge funds are not even short anymore theyre all long the rotation, positioning. No one wants to give up gains. So they sell whatever growth in the areas they were invested in. Large cap tech, material space, industrials, the trump play. So everything is in question thats the first thing that people go for is where they have their gains, where they saw their growth coming from and they attach to that. Steve grasso of stuart frankel. Theres a few economic reports on the wall street agenda the november adp employment report is out at 8 15 eastern followed by revised Third Quarter productivity and labor costs at 8 30. On the earnings front, brownforman, h r block, American Eagle outfitters are set to report before the opening bell broadcom and lululemon are out after the close. Shares of dave and busters are shooting higher. Landon has the details shares of dave busters moving higher. The arcade operator posting earnings of 29 cents a share topping projections of 24 cents per share. Rer nekne revenues missing slig samestore sales down as hurricanes took the toll on the business including a delay of a flu openi new opening in puerto rico steve king says he plans on opening 14 new stores this year representing 15 unit growth and they are excited to have a new smaller store format buster says it sees potential of up to 40 Smaller Stores to meet demand in the smaller markets. Back over to you thank you very much some more stocks to watch, General Electric reportedly plans to cut about 4500 jobs in europe after reviewing assets it brought from olstom in 2015. The cuts would take place in switzerland, germany and the uk. Ge says it is reviewing the operations to assure its best positioned to respond to market realities. Shares of aerovironment are soaring today. Revenue rose 47 as the maker of military drones continues to see strong demand. Up 23 shares of rh are pulling back from record highs this is the retail chain formerly known as Restoration Hardware they are projecting Fourth Quarter numbers in line with forecasts. Just off 1. 3 . You would expected this company to be doing much better given what weve seen in housing. Were following a developing story out of Southern California a Massive Wildfire continues to burn out of control. Its tearing through the cant ta santa c clarita area it has score muchedscorched 11,f land this is one more thing from a financial perspective, this is one more thing for the insurers to deal with in this Current Quarter as well. In addition to the other recent tragedies still ahead on Worldwide Exchange, up, up and away bitcoin soaring to another record high. And the one thing that keeps carlyles David Rubinstein up at t. Gh his exclusive comments to cnbc when Worldwide Exchange returns. Cannot live without it. So if you cant live without it. Why arent you using this guy . It makes your wifi awesomely fast. No. Still nope. Now were talking it gets you wifi here, here, and here. It even lets you take a time out. No no yes yes, indeed. Amazing speed, coverage and control. All with an xfi gateway. Find your awesome, and change the way you wifi. Welcome back to Worldwide Exchange. Lets get up to speed on the market action. We are called lower. The dow is down 60 points. The nasdaq down 20 the s p down 6 points following somewhat of a selloff in asia overnight. A bit of one in europe lets look at bitcoin. It is movis jumping through 12,. 12,550 up 7. 5 . Lets get more on bitcoin joining us from the Financial Times is isabella kominska. It seems like every day another record for bitcoin how much higher can this go and what is propelling it at this point . Thats the big question really theres no ceiling on the price of bitcoin there is no real concept of its intrinsic value. It could go to 10,000 tomorrow or 100,000 tomorrow. In terms of whats driving it, probably a combination of things we have the anticipated launch of cme futures cboe is coming in next week beating the cme by a few days. That is the momentum driver at the moment in terms of the volatility that we have seen to the down side recently, is that something that is new . Weve i guess weve all been focused on bitcoin over the last month or two has this kind of big falls and recoveries happened over the course of the year regularly or a new phenomenon what does that suggest if it is . No, this is normal for bitcoin. It has horrific volatility, which is why you never know what the price will be. The trend has been definitely up and into historithat is or how smooth that is is anyones guess bitcoin has the capacity to move 25 , 30 in a day. Not only that, its price is never necessarily smooth across the different exchanges. In some exchanges it can be as much as 5 difference in terms of price certainly focus has been on bitcoin as some of these exchanges roll out futures offerings. How much is this overshadowing other cryptocurrencies and their performances the ethereum platform comes to mind ethereum has been doing well. We have not entered the bubble territory of bitcoin, but its holding its own. The real story is that the ico trend we saw earlier this year is beginning to cool down a bit. There was a point about three, four months ago when icos were rolling out, you know, almost every day. And they were fetching huge amounts of money this has cooled down now no doubt because the money theyre raising, theres no point in spending that money because the price of bitcoin keeps going up when we see other governments, whether its venezuela or others endorse cryptocurrencies but not bitcoin, what does that mean for bitcoin . Is that a good thing or a bad thing . I mean, im a little bit skeptical about the idea of bitcoin being used as a medium of exchange. The funny thing is the more it goes up in price, the more it becomes asset. The less useful it becomes as a daytoday currency. People wont be using it it because of law, people will be hoarding it instead of spending it in terms of what sort of service it can provide to countries like venezuela or zimbabwe, were looking at it from a western perspective. When youre on the ground in zimbabwe or somewhere, there is not the prolific use of bitcoin that is suggested. Its hard to spend bitcoin on a daytoday transaction basis it certainly is thank you for joining us still to come, President Trump expected to declare jerusalem the capital of israel. Were live in washington with details when Worldwide Exchange returns. Welcome back to Worldwide Exchange. Im wilfred frost. Red across the screen in asia, quite significantly so both hong kong and japan down the better part of 2 this morning. Hong kong over the course of the last five trading sessions is down almost 5 so quite a marked pullback in asia over the last week or so. Shanghai is down 0. 3 . Lets have a look at europe as well thats lower, but not quite to the same extent. Germanys down a percent or so the ftse is basically flat france is down 0. 66 the sectors that are suffering most, both in asia and in europe are tech and basic materials basic materials suffering because of that 5 slide in copper yesterday futures this morning are not perhaps as red address you mis expect tech is slipping today s p is down 6. 7 yesterday we did see tech attempt a recovery the nasdaq was the outperformer. That recovery didnt last. We were down 0. 4, 0. 5 for the s p and the dow. One famous wall street investor is giving a big green light for the markets. Carlyle groups David Rubenstein speaking at the netnet dinner last night saying he only has one worry over the next couple of years 2017 is obviously doing quite well in terms of gdp growth and every other metric 2018 seems to be strong, based on what were likely to anticipate the tax bill will have favorable consequences for the economy i dont see unforeseen inflation problems or unemployment problems the only thing we have to worry about in 2018 or 2019 is some unanticipated geopolitical event, the socalled black swan. If i told you that tomorrow north korea launched a missle into south korea, that would have an effect on the economy. If there was a 9 11 event that would have an effect short of those things, i think the economy is in reasonably good shape and will be spurred on by the tax bill rubenstein also talked more about the tax bill and what he thinks it means for the Business Community. Right now were playing the game this is going to increase the deficit by 1 1. 5 trillion over ten years who really knows the Business Community is reasonably pleased with the bill everybody will lobby for their little thing in the conference generally the Business Community feels this is a bill that is overdue in some respects theres some things that people in the Business Community dont love most people in the Business Community, i would say they generally think its a mosstipoe for the economy. You can read more about the netnet dinner on cnbc. Com he says really the only major thing hes worried about for markets is a black swan event. Thats different from other investors like ray dalio and jeff gundlach. Sounds complacent also interesting his comments about tax reform i spoke to Steve Schwarzman yesterday, particularly on the political implications for donald trump, Steve Schwarzman was a close adviser to trump for most of his first year, he said it was a game changer it was a whopper for donald trump thats another factor to look at even if we argue over the nua e nuances over which seconder will benefit more in terms of the market this is a big political fact their could change the tone of 2018 theres a lot of focus on what this does for the deficit but what is maybe missing from the conversation is we get tax reform through and it looks like this president and this administration will started focusing on welfare reform theres more to this story speaking of politics, President Trump expected to make a major shift in u. S. Foreign policy today and declare jerusalem the capital of israel. Lets get to tracie potts with the details of that. Good morning that would be a major change in u. S. Policy were also getting reaction before the president makes that announcement pope Francis Cutting that the u. S. Should keep the status quo to avoid conflict. Turkeys Prime Minister calling it a grave mistake move the American Embassy reporter fulfilling a campaign promise, this afternoon President Trump is expected to announce the u. S. Will recognize jerusalem as israels capital and eventually move our embassy there from tel aviv. It could start uprisings in the region reporter the move could anger arab nations, palestinians also consider jerusalem their capital. The state department is watching security, but not talking about secretary tillersons advice to the president. Its ultimately the president s decision to make he is in charge. Reporter the jerusalem announcement comes as donald trump jr. Speaks behind closed doors today to the House Intelligence Committee likely about his meeting with the russian lawyer and the trump organizations dealings with deutsche bank, despite multiple reports the white house denies fbi special Council Robert mueller subpoenaed the bank for records on accounts held by the president and his family no sub bepoena has been issu or received. Thank you very much thank you. Reporter the white house and the president s lawyer, john dowd, also not answering questions about this controversial tweet. It says the president knew former National Security adviser mike flynn lied to the fbi before firing the fbi director investigating flynn. Now, critics say that could be the basis for an obstruction charge, though we have no evidence at this point that thats actually in the works thank you very much for that. Still ahead on Worldwide Exchange, a round up of the top headlines and a check on the Global Markets. The countdown to christmas is on. Anxious or excited . Anxious im not done with my Holiday Shopping its crunch time for shippers. Well tell wlyou who is in the best shape when Worldwide Exchange returns. U. S. Futures under pressure following a drop overnight in asia a full round up of the Global Market picture ahead. And bitcoin soaring to another record high. Well tell you whats driving it. And its crunch time for the shippers with just 9 d19 days left until christmas who will win the transport wars this Holiday Season its december 6, 2017. Worldwide exchange continues good morning a warm welcome back to Worldwide Exchange on cnbc im wilfred frost. Im Morgan Brennan. Lets get to the Global Market picture this morning not a pretty one we have red arrows across the board here for u. S. Equity futures. That is following the red arrows were seeing in asia as well as europe right now selloff not as bad here as weve seen in asia the s p 500 indicated to open down about 7 points. The dow down about 65. Nasdaq futures down about 29 this comes after a down day yesterday as investors sold off all of these indexes coming into the close with the dow fall 1g falling 109 points tech the only sector to end the day higher the tenyear treasury and the yield there, certainly the focus in the treasury market is the flattening of the yield curve. The tenyear treasury note now, 2. 335. I cant see now, i dont have my reading glasses on 2. 335 but of course the focus is the twoyear which hit its highest level since 2008 the fiveyear the highest level since 2011 lets look at markets around the world. Asia markedly lower. Hong kong down 2 . Its down almost 5 in the last five trading sessions. Japan pulled back 2 overnight european trade down as well. Germany down 1 . Elsewhere significant declines for france and italy under a percent. The ftse essentially flat. As for the broader markets, looking at the board for crude oil, seeing some pressure there this morning the focus for wti crude at 57. 21, down 0. 7 focus there, we got the api inventory numbers yesterday. Bigger draw down than expected gasoline inventories built up. This puts more focus on the eia numbers coming out at 10 30 a. M. Eastern. Ice brent is also 0. 6 lower its at 62. 46. Nat gas slightly higher. 2. 93 turning to the dollar as well. We did see the dollar index move a bit higher yesterday certainly the focus now for the dollar trade overnight has been the potential for a Government Shutdown coming friday here in the u. S. That has been a big talk of the trade. If you look, the dollar is weaker against the euro. The euro at 118. Also weaker against the yen. It is stronger versus the pound, which has been a big focus and something you have been covering extensively. Conning to slicontinuing to h brexit negotiations and whether the uk government will maintain in this current form bitcoin pushing above 12,500 this morning now above 12,600 copper doing the opposite yesterday. Partly why asian trade is lower and basic materials are lower. Theres a few economic reports on the wall street agenda. The november adp employment report is out at 8 15 eastern followed by revised Third Quarter productivity and labor costs at 8 30. On the earnings front, brownforman, h r block, American Eagle outfitters are set to report before the opening bell broadcom and lululemon are out after the close. Shares of dave and busters are shooting higher. Landon has all the details on that one shares of dave and busters moving higher on better than expected Third Quarter profit. The arcade operator posting earnings of 29 cents a share topping projections of 24 cents per share. Revenues missing slightly, 2 250 million samestore sales down as hurricanes took the toll on the business including a delay of a new opening in puerto rico dave busters ce steve king says he plans on opening 14 new stores this year representing 15 unit growth and they are excited to have a new smaller store format that expands brand potential buster says it sees potential of up to 40 Smaller Stores to meet demand in the smaller markets. Back over to you shares are up about 9 in early trading. Back over to you i wonder if theyll keep the skee ball in those new stores. Its like dave busters is the big box restaurateur, similar to target and the Smaller Stores. Have you been still not i learned what it is, but never been you need to do the smack ball its beginning to look a lot like christmas for the delivery companies. U. P. S. Experiencing service snags on the heels of unprecedented shipping volumes confirming it add one to two days for intime transit for deliveries, and that it shifted more employees and other resources to the markets most impacted thats an issue it expects to have resolved byp matrix that u. P. S. s ontime performance was impacted 89 ontime delivery rate for express, 84 deferred deliveries it will release the result later today. Fedex, 99 for express, 98 for deferred in terms of ontime performance. U. P. S. And fedex not commenting. Fedex did say its proud of its service so far and its well positioned to meet anticipated record demand. Its off to the shipping races it will be interesting to see how new peak season surcharges put in place by u. P. S. For certain weeks will play into this and whether the service hiccups with u. P. S. Are just hiccups or the start of a bigger issue. Whats the respective market share, stateside u. P. S. . Yeah. And fedex versus the postal service. U. P. S. Is the biggest private Delivery Company they are forecasting 750 million packages between now and years end. Thats a huge number more than 40 higher than five years ago. Fedex is expecting about 380 million to 400 million packages this season. Well talk more about this lets bring in david ross, Global Transportation and logistics analyst at stifle. Thanks for waking up early to discuss one of my favorite topics my pleasure wlofrnlg who is better positioned, u. P. S. Or fedex . Both are well positioned. U. P. S. Is having more challenges, but its a long, peak season. Theres more opportunities for both companies to have potential Service Failures and service successes. I think fedexs decentralized ground operating model makes it easier to attack than u. P. S. s more centralized employeebased model. But theyre both very good companies. Theyll provide good service as i mentioned, u. P. S. Is putting peak surcharges in place for certain packages during certain weeks of the season. Fedex is doing some surcharges on larger, oversized deliveries. Thousand are these fees going to play into results, especially given the fact weve seen higher costs for both companies in years past its interesting to see how it flows through the numbers with u. P. S theyre the ones who are more aggressive on the peak surcharges this year fedex has been more surgical in the past in targeting accounts to make sure theyre profitable during peak and putting capacity constraints on customers based on shipping level commitments with the company u. P. S. Announced the peak season surcharges earlier this year we know they also waived them for several customers. If they have a good amount of peak season surcharge flowing through that could be good for numbers and offset additional costs theyre incurring now to handle the peak volumes. The issue with peek voluak voluo dont know where theyll pop up. Theyre not sure if the peak will occur in pittsburgh, seattle, phoenix, miami. Is amazon still driving volumes for them at what stage could it become a threat amazon is a customer of both u. P. S. And fedex theyre a Bigger Customer of u. P. S. As a percentage of u. P. S. Revenues and total package volume they rely heavily on the u. S. Postal service also, but u. P. S. Is the bigger of the two with Amazon Amazon has such capacity needs and its growth plans are so big they need to build out their own network to really prevent some issues that they first had in the 2013 peak season you know, that is when they built up their networking capabilities and now building their own air fleet, outsourcing the airline to atlas and atsg. Building a 1. 1. 78 billion hub n cincinnati, to have dozens of aircraft flying for amazon exclusively, but still relying on u. P. S. And fedex. We do not view amazon longterm as a competitor. If you wanted to ship a document to a colleague in san francisco, i dont think you could call amazon to do that. Great thank you for breaking all of this down, david ross. Wilf, i should note u. S. Postal service, the other big dcarrier for amazon, they deliver twothirds of their packages all going to have a good month ahead. Instagram will let you keep your stories forever the social media app rolled out two new features, highlights and archives to save old posts archive also save stories after 24 hours the highlight section will appear beneath your bio and remain on your profile until you decide to remove them. Another tweak that seems to be growing. My take on this this will require more storage correct storage in the cloud, sort of more demand if you want to deep dive into things yeah. Getting stranded during a spacewalk is a terrifying scenario for any astronaut to imagine. There could be soon a way for crew members on the International Space station to press a button and be immediately transported back to safety thats the idea behind a new technology, a take me home button that is being developed by draper with partial funding from nasa. First, i love this story i do as well. Yeah. And when you think about the International Space station, its up 240 miles into space its pretty scary, i think you would want a button. I can say this from some personal experience, last month in huntsville, alabama at the space and rocket center, i went to space camp and got to sort of test what it would be like to fix something on the International Space station. Thats what this video is. It took like 20 minutes to get into that suit i had ice packs on i kept hitting my head its not easy even here on earth. Even when youre attached to a rope you would still like that homing button yeah. Scary. You get some fun gigs i definitely get to stay active a fighter jet as well yes that was a highlight this year i got to pull more than 7 gs im a geek, i love the banks, but you dont get to test things out like that. Not quite the same the next time youre at a restaurant perusing the menu and you feel embarrassed because you dont know how to pronounce certain items, youre not alone. Babble has compiled a list of some of the most miss pronounced foods, it includes many italian dishes like bruschetta bruschetta. Its bruschetta isnt it no, bruschetta. Now i dont know now we need to check babble. Any way and i probably got that one wrong. Fajitas. And acai acai. I live in an italian and brazilian, so im proud of my pronunciation. Whats the small fake pasta the little dotted healthy quinoa . Yes you said it the correct way for me another south american delicacy i usually say kanowa thats how it is spelled now you can check babble for your culinary needs. Now to sports, a major decision that could impact the medal stand at Winter Olympics the International Olympic committee banned the russian delegation from the game in south korea. The move following an investigation into a program of orchestrated doping by russia at the 2014 games in sochi. The ioc says some russians will be allowed to compete if they meet several requirements. They would be designated olympic athlete from russia, but without the National Flag or anthem. A spokesman for Vladimir Putin says the kremlin will analyze the ioc ban before taking steps. Massive issue for them. They are just about to host world cup coming up. Yes there were questions internally at fifa about how that process was awarded in the first place. Raises broader questions, i guess, about the quality of governance et cetera in russian sport. Definitely a black eye for them as they come in to host a different and Important International sporting event. Still ahead, how the rise of amazon, google and facebook could mean big changes. First as we head to break, heres the National Weather forecast from bill karins. Good wednesday morning to you. We are watching the situation in Southern California. With all those horrendous fires yesterday. We dont want more dusty winds thats what well get. Critical to extreme fire weather conditions from los angeles to apartment is santa ana. Because of the dry conditions and gusty winds, we have red flag warnings. Any current fires can rapidly spread and new fires would also rapidly spread winds gusting over the next 24 to 36 hours anywhere to 40 to 50, maybe as high as 70 Miles Per Hour we have this rain exiting the northeast this morning it will linger down there techs, mississippi, alabama and louisiana and cold conditions in the middle of the nation at yr Business Travel forecast more Worldwide Exchange when we come back 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, time for our mustread stories. My pick is by tom freedman obsession with iran is driving the middle east and the u. S. Crazy. The greatest thing that the u. S. And saudi arabia could do is stop working each other into a lather over this iranian threat and to focus on their own domestic reform agendas. He goes through quite a detailed piece there terms of the various different ways in which international allies, particularly the u. S. And saudi arabia are overreacting about issues in the middle east. Very complicated issues, important issues, but ones where they cant affect much change any way. They should focus on domestic situations kind of ignore the iran issue, its just antagonizing things as part of this he looks at the u. S. Backing jerusalem and recognizing jerusalem as israels capital saying thats primary example number one of an unnecessary thing to do that antagonizes the issue. The word lather jumps out to me. Very strong wording. My pick is in the Financial Times. By john gaper. Business is becoming a battle of the giants he argues the rise of the f. A. N. G. Stocks means anti trust rules need to be rewritten the framework of antitrust law rests on the idea that the task of anti trust is not to protect Small Businesses from big ones but to maximize consumer welfare by reinforcing competition the judge and legal theorist who dubbed this in 1978 dubbed it as the antitrust paradox. Large enterprises can be good for economic efficiency. In light of some of the deals, steady stream of mergers that have been in response to the tech titans, most recently the cvs and aetna deal also the 21st century fox disne deal saying these big deals are good for the consumer or not the presence and their response theyre elis liciting d be good. Coming up next, were setting you up for the trading day ahead. E w, nasdaq and s p pointing lower. Urance company that knows the weather down to the square block. This is a diamond tracked on a blockchain protected against fraud, theft and trafficking. This is a financial Transaction Secure from hacks and threats others cant see. This is a patients medical history made secure while Still Available to their doctor at their fingertips. This is an asteroid livestreamed to millions of viewers from 220 miles above earth. This is ai trained by experts in 20 industries. Your industry. Hello. This is not the cloud you know. This is the ibm cloud. Designed for your data. Ai ready. Secure to the core. The ibm cloud is the cloud for business. Yours. 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. You myour joints. Thing for your heart. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. Welcome back to Worldwide Exchange. Im wilfred frost along with Morgan Brennan futures pointing lower this morning in part because of a negative International Trade hong kong down 2 . So is japan. The dax down 1 . The dow this morning down 50 the nasdaq down 25 the s p down 5 points. With us now is james lu founder of clearnomics lets talk about tax reform and the impact on the economy. Monday morning we got a massive boost to the market based on hopes that the tax reform bill would be delivered as its shaping up the rest of the week, its been quite negative the trade whats your take on the tax reform bill . We think there will be another boost to markets once the bill is signed by the president and reconciled between the two different versions out there now. For markets, its more a question of whether the bill passes rather than whats in it. We know that the Economic Impact is a matter of whats in it no so when you look at whether or not it will get growth up to 3 or 4 as some talked about, we think the answer is likely no. You are looking at some tax decreases across income brackets, but its years before that has a filter through to the economy. The Market Impact is immediate we feel theres another boost likely when its signed. The Economic Impact much more muted. Many people expect tax reform to make its way through by christmas. We have spoken about the sector shifts and where investors are putting money anticipating that tax reform moving through. For the Retail Investor saying how should i be positioned in my portfolio coming into 2018, does yearend tax selling sound like something folks should be doing . Should you hang on to i investments . We think that most investors should get proper tax advice on their individual specific holdings the Bigger Picture is this nothing in the world assetwise is cheap now but we still think that the u. S. Can generate fairly steady returns. What the tax reform bill did was generated higher evaluations for the u. S. Tin creased the returns this year for the u. S. Overall were at 20 half of that came from higher valuations a lot of that was optimism over nick reform, tax reform, regulatory reform. Once tax reform passes, you no longer have that catalyst for next year. But you still have positivity that spills over still so overall we think that the u. S. Will be fine. But we think Retail Investors should have a neutral instance on the u. S we would look more to international markets. Theres volatility in europe this week. Emerging markets are strong. James, great stuff. Thank you very much for joining us thats it for Worldwide Exchange. Ha a lelveovy day. Squawk box is up next. 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Live from new york where business never sleeps, this is squawk box. Good morning welcome to squawk box here on cnbc we are live from the Nasdaq Market site in times square. Im becky quick along with joe kernen and melissa lee andrew is off today. Weve been watching the u. S. Equity futures theres been some concern about what we saw yesterday here, but then what happened overnight in asia you can see now it looks like the dow is indicated down by 55 points, this comes after a day when the dow lost triple digits. Decline of 109 points. S p down by 5. 5. Nasdaq off by 30 a rally fizzling yesterday as stocks erased some early gains and faded throughout the afternoon, closing around session lows look at what happened overnight in asia. You will see