Vengery link that does it for squawk on the street. Lets send it to squawk alley. Over to you. Thanks. 11 00 a. M. On wall street and squawk alley is live welcome to squawk alley. Im Carl Quintanilla good to have you deidra, sarah is off joining suss partner gnb capital and the founder of earn. Com. Good morning to you both over the last five trading days, tech stocks, which were leading the markets higher for the entire year have turned lower. Today the nasdaq is slightly positive this rotation isnt just on wall street a number of articles in the past few days talking about Venture Capital funding drying up, or at least having peaked in the seed round. Called the hot money party tends to move around facebook ipo run up subsequently in 2013, 2014, big in seed a, thats where the capital went. The hot party moved in 2015, 2016 it went unicorn hunting, saw a lot in ipo, labor deals that hot party money shifted in 2017 very clearly to initial coin offerings. Thats where the action is today. I think youre seeing a recession back to maybe norms in c, a and later stage rounds of Venture Capital. You do see these new currencies sucking some oxygen out of the room. Theres no doubt about that. If you look at icos the last several months they raised over 3 billion thats more than series a over a period of time theres existential risk to the venture market here with the rise of block chain and crypto projects for sure. That sounds scary to me these are people who are typically in the past investing in businesses instead of investing in these currencies that may or may not be tied to actual transactions. Is the other new frontier at risk in the valley well, so, you know, many of us have actually been working on this for five years now. Since 2012, 2013 in Silicon Valley its something weve been thinking about were actually very bullish on the trend overall. Its not going to be without corrections and downturns like everything icos, at least some of icos along with early stage, things are flat or even up. Thats one aspect. The second aspect icos tokens, blockchain we think of as maybe the biggest thing since the internet one of the reasons for that is you can have folks start a coin or currencies from anywhere and pull in capital from around the world. They can do so by selling their token as utility, almost like kickstarter on steroids in some use it as alternative. Things developing. The reason its interesting exits are down even though vc funding is plat or up depending how you measure it and so Many Companies over the next year, 18 months as the Regulatory Environment works out may choose to do a token or coin of some kind some structured as a product, others may be able to do it as an alternative going public. Thats actually a positive thing for folks who are investors in these funds. Vc itself will also over time pretty quickly already need to adapt. In fact, almost all investors over the next 10 to 20year timeframe will become crypto investors. The number of coins is about to exceed public stocks 4,000 public stocks decreasing over time. The number of coins going to pass that. Thats going to be a major moment after that point in about 10 or 15 years, the internet becomes the Worlds Largest stock market where all coins get traded back and forth. I want to ask about the impact this is having on Public Markets. Were getting more money into later rounds, youre seeing companies wait longer to go public and bigger ipos were seeing that play out with names like s. N. A. Nap and blue an are these big unicorns waiting longer, going public at higher valuations. I think were seeing sa tale of two stories in the ipo market right now. Ipos like you mentioned, snap and blue apron have not done that well. In large part they have been attacked by the large the internet giants who are aggressively going after every white space they can find and each other we saw news this morning of google and amazon squirmishing if you are in the crosshairs of large internet, beware at the same time were seeing companies go public and do very well, Companies Like mongo db had a nice ipo, earlier this year alterex, Companies Like octa companies that kampbd ocarved or own space are still attractive to investors that type of ipo, thats the recipe for success well see more in 2018. Glen does mention the battle from amazon and youtube. Pulling youtube from amazon echo and fire streaming, decision retaliation for amazons refusal to sell google products that compete, larger position from these Platform Companies i wonder, is this runofthemill frenemy stuff or is this a larger play here this is kind of like tit for tat, very common in Technology Google doing this to amazon is their way of sad lidling up to table. Its lying a trade war of sorts where both are reducing respective revenues and maybe they can come to some kind of accommodation. Other examples of this, apple doesnt like amazon sell books through the kindle app on the phone. Have you to go to the website to find them. They would just like a cut. 30 cut is too much for amazon to tolerate, so they dont even sell them facebook in 2008, they went in and cut off googles friend connect access and google in 2010 shut off Facebooks Google contact access then on a smaller scale twitter and facebook have, you know, killed lots of products, lots of startups like meerkat and others. Its ironic, amazon wants to put customers at front, they care what the customer gets. It seems like the customer is hurt they cant access youtube, cant buy google home. This may be tit for tat but who is losing here this seems to be the Silicon Valley for so long think back to itunes and all of the other players who wanted to be able to Real Networks on itunes and apple said no were entering this era of digital entitlement. People feel like youtube belongs to all of us, so it ought to be everywhere it belongs to google and alphabet since when do we get to demand it appears on any device we want. Why do you hate america. These are private companies that built powerful platforms. Until you get antitrust arguments that they cant decide what to do with their platforms, they can decide what to do with this platforms. This competition is reminiscent to what weve seen in china, alley baba and ten cent yes, its tit for tat. Its the beginnings of more intense Competition Among internet giants in the u. S. And well continue to see it grow. That makes life for Startup Entrepreneurs more challenging. Your point is because the pie got big enough where they started to have to fight over the biggest pie, in other words . They got big enough they increasingly encroached on each others spaces. For a while that wasnt the case it wasnt that long ago when he served on googles board that could never happen today. I think youll see more of that continue as the stakes are higher and the giants get even bigger and more power ful power guys, thanks. Once again brings home outrage on twitter over this move. Peoples feeling this belongs to them. It is down to the customer, right . Whats the most convenient for them thats what amazon does all the time. Lets talk bitcoins despite the surge s. E. C. With more effort cracking down on crypto currencies. Seema mody with more. Reporter the right in bitcoin caused washington to pay closer attention to crypto coins and offerings. More resources to crack down on fraud leapt activity as they froze assets of flex coin which raised 15 million in icos for promising 13 fold profit in a mint to investors. As retail participation increases, the former crypto currency director for doj who just testified in front of the Judiciary Committee said expect large Enforcement Actions in the coming year. Former commissioner paul atkins telling cnbc whenever you have money sloshing around, you have criminals that are attracted to it guys, its not just s. E. C. The u. S. Treasury department reviewing how the Enforcement Network is addressing Money Laundering and terrorist activity involving Virtual Currencies the fact that bitcoin investing is mostly anonymous makes it difficult to regulate. While Government Agencies monitor the space more closely, catching every bad character could prove to be challenging. Now, while the president has not publicly addressed bitcoin, individuals in his circle have been vocal on bitcoin in the past including Mick Mulvaney who prior to becoming budget director cofounded congressional Blockchain Caucus in 2016. Guys. Seema, you added a couple new wrinkles to this discussion. By wait separately bitcoin got endorsement from square. Jack dorsey said in the tweet it will expand. The effect on the share prices a couple weeks ago you think theres a couple of large pieces here, glen, affecting one another, moving in tandem we just talked about internet giants and how they are starting to compete more ferociously with each other and also talked about the euphoria over block chain, i think they are related people, developers andconsumer alike, are kind of concerned, as you mentioned, deidra, with how the big guys are behaving. A lot of these projects put the power back into the hands of the people and so youre going to see more and more, i think, projects rise that have the opportunity to build new applications that might serve consumers in a different way and challenge, ultimately, the power of large internet and Large Companies throughout Industries Like banking and certainly social, that sort of thing were going to see new Companies Come out and challenge incumbents. I want to turn to you and pick up on what seema was talking about with regulation. As we see more regulation around bitcoin and icos, does that legitimatize it in a way and become dangerous and bringing it to the mainstream a and people want to trade it and think its safer because its regulated. One of the things it is in part a legitimate signal crypto is not going away its not bad like people might have said five years ago its definitely gotten the attention of lots of people. One thing thats very important about what s. E. C. Put out inflectiin flex coin, they took pains to get after scams. Flex coins were a scam many are legitimate. They are ventures trying to provide products and services for people one of the things about the blockchain in particular is, as glenn said, is alliance all of the users behind the success of the product. A powerful way to go after social met yornetworks, databasa lot they have a lock on you may get a distributed version. Like dotcom dplen, the chatter i hear on social network, people that approach me on the street about bitcoin reminds me of dotcom boom in the 2000s, reminds me of multilevel marketing. There may be legitimate businesses, crypto currencies, is it a risk what should investors in Silicon Valley do to contain that before it gets out of control youre right. It is a big risk i think the hot money party is at ico when it moves well see which are swimming without bathing suits and i think well see a lot. Salmonella be fraudulent, salmonella be bad ideas. Some good ideas will go down, too. Its our job to figure which ones of those are good ideas and get behind those projects and try to support them and help them grow. That case you brought up on flex coin, they were promising 1,000 return over 13 days thats when it gets dangerous. Thats an ico swimming without a bathing suit. Ill give you the final word on that. How do you advise viewers to navigate the mine fields at least in the shortterm. Talk to your Computer Scientist just like you talk to your doctor. Find a Computer Scientist, ask them i will say 90s tech boom did produce google and amazon. Those two alone were worth Everything Else that happened at that point so bubbles and frenzies and so on, theres good writings on this, they are things that have to happen for future technology to get attention and get deployed there will be failures and things that dont work but net net well be better off for everybody. A good segment. Im glad we had almost 17 minutes to give to it. Please come back facebook could rally, a bullish call serial entrepreneur with us. Well talk taxes broadcom attempting one of the largest takeovers in higs. What we might hear when they reporta after the bell when squawk alley comes back. Flat day for averages dow coming off worst day in three weeks. Tax reform remains primary focus for investors. Joining us chief portfolio strategist at state street Global Advisers and global strategy and Technical Strategist at wells fargo institute. Good morning to you both s p coming off longest streak since august not a lot of conviction today. Whats the next catalyst for the market is it riding on what happened with tax reform bill thats likely to be passed . Well, tax reform will certainly be in the backdrop here well certainly keep an eye on that we think the more important story is Global Recovery were seeing synchronized Global Growth and were likely to hit highs we havent seen global since 1988 we actually think the longerterm story is more important, drive corporate earnings higher and give more support to the equity markets. We tend to agree. At the end of the day its all about economy and fundamentals global improvement in 2018 International Side will hold to much greater degree, so that should be a positive inflation muted readings so that creates a sweetspot if you look at corporate earnings, those are growing. Taxes will help with that, not only next year but off years as well pretty good investing environment. We are cautious on valuations, probably a little ahead of themselves. Talk about what were seeing in highflying names here, tech in particular, some sectors benefiting the most in the tax bill do you expect that to continue one of the things thats been a hall mark of 2017 is its been the year of momentum that has highly benefited these tech sectors, socalled bang stocks, for example. Just for example in 2017, momentum returns have been about 32 versus broad market globally around 20. So one of the things that we do think will happen is this rally will broaden out more. There may be vulnerability in some of those areas that are high valuations as we start to see money flee into areas like banking or other sectors benefit from tax reform, Global Recovery and ability to repatriate cash to investors that sounds like she thinks tech might be somewhat of a disadvantage some valuations are high there do you see enough growth given your bullish outlook internationally, enough growth for tech to continue given some trends perhaps in cloud and enterprise there probably is enough growth the sector will continue to be well most investors whether they like it or not have quite a bit of exposure 28 of s p 500 it will be all about which sectors are not discounting the positives of the margin Going Forward. For tech, unfortunately, they have done so well because there has been a lot of catalysts aligned for technology to do well low rates, low growth, low inflation Going Forward as the tax reform works its way through, improves a little more. Cyclical sectors will get, again, a greater share of the growth Going Forward so we like financials, industrials, Consumer Discretionary and health care. So again, theres nothing wrong with tech, it should continue to do okay. At the margin some will take some of the share away sameer mentioned valuations start to look a little stretched. You cant help but talk about amazon and netflix nearly tripled over the last three years. Are we seeing a rotation or are we seeing a pullback have they just run too far too fast will that continue to next year, particularly these names. I agree theres a bit of money pulled off the table here one of the things that has happened with tax reform people looking at what Capital Gains taxes will be and what implications will be i think youre getting that normal year end portfolio rebalancing where you get a bit of profit taking so it doesnt surprise us you would see a bit of a pullback in some of these names. We think the bigger story is more discrimination, more focus on those areas, a bit more out of favor that can now benefit from improving Global Recovery potentially also some marginal improvements with tax rates but also other things that are more idiosyncratic like ability to return capital to shareholders in the banking sector. Lori and sameer, thank you for joining us today. Thank you. Thank you. As we head to break, checking out shares of walmart ten years after apple changed its name from Apple Computer to apple, inc. Walmart said its rolling back the dash in its stores that goes into effect in february when we come back, billionaire kevin anry, his take on gop tax plan when squawk alley returns. 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. 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 with the location, but also if its too hot, if its too cold, if its been dropped. Its completely unique. If you have a sensor that can keep track of your product, it keeps everybody kind of honest that way. Who knew a tiny sensor could help keep the food chain safe . Tech stocks rebounding on track for backtoback gains perhaps after being pressured over the last week investors, entrepreneurs and Business Leaders watching for policy progress in washington on immigration and tax reform joining us now serial entrepreneur kevin ryan, chairman and ceo of tech incubator. We got a little aggressive with your money, but youve got lots of money, estate tax level, which brings us to the policy conversation so big changes negative for places like knock perhaps coming from washington on taxes, immigration. Are these positive at all in your view . I dont think they impact tech as much as one would think. Dont forget Smaller Companies arent profitable. Startup companies arent profitable for years they have losses they are caring for. Corporate tax rate not a big benefit. Anyone who lives in new york state and new jersey and california is going to suffer. Thats going to be negative for states and i think its the wrong thing to do. Overall im concerned about the deficit. Its not the right tax plan Going Forward. I dont think it will be beneficial in the long run. Also i want to ask about the tech environment overall youve been behind Companies Like mongodb, tech database, orac oracle, Digital Media is having a hard time. Guilt group in retail. See whats happening in amazon is this an environment in which big guys have gotten too big for Smaller Companies to win or does innovation have a chance because theres enough big guys fighting each other. I think innovation is doing great. There are hundreds and thousands of Smaller Companies doing very, very well. I didnt worry at all. We should feel lucky we have as many startups, Venture Capital being invested, that people feel aggressive, environment is good. So everything is right im concerned about immigration. Thats something thats going to hurt Tech Industry in particular and policies of the administration in general things are very, very good. To jons point, Digital Media, one example, arent we in a situation where a lot of businesses got formed because capital had its eye on it and now thats sort of being dried up. A different perspective sitting here eight years ago, you couldnt have named a Successful Online media company. Today we name buzzfeed, Business Insider, a number out there, huffington post, doing hundreds of millions in revenue. Some are growing faster than others, some better than others. This has been the golden age will every single one be successful, no they are fantastic most have more traffic Business Insider has more traffic than wall street journal. That happened in eight years revenues growing there im not involved anymore, 20, 30 a year things are good. Youre not discouraged by buzzfeed missing a target or national sold for 50. I think most Traditional Media Companies would be very happy to be growing as fast as buzzfeed is growing even though its not as fast as they planned on growing. Is there a chance of a flash in the pan pendulum swinging back the other way towards Traditional Media Companies. How do we know they are going to be able to keep up the traffic are they here to stay. No evidence online Media Companies are dropping in traffic. Traditional Media Companies, by the way, have all kinds of challenges i dont see the pendulum switchinging back. Once you get to 100 you cant grow at 100 anymore maybe 10 or 20 they are very important. Is it becoming a premium game when it comes to content, when it comes to credibility. You take a look, Business Insider has come a long way from where it was seven or eight years ago, stories going up then, for example. You get a lot of criticism from advertisers about the content they might be shown beside on youtube. Is this a pivot that media needs to continue to make. I dont think its a pivot. Theres segmentation lets not forget we looked at magazines. There were magazines high end and frankly magazines not high end. They both found advertisers over the last 50 years. Youll see the same thing in online media it will segment, an enormous market we do know the share of market over the last five years has continued to go to online media, whether owned by electric additional player or not. Great insights. Kevin, thanks. Thanks for having me. 32 past the hour. Lets get a news update with sue herera at hq. Hello, everyone here is whats happening at this hour a man has been ordered held after accused in a plot to assassinate british Prime Minister theresa may the plan allegedly involved planting a bomb near the entrance of ten downing street and continuing the attack with a knife and someone wearing a suicide vest a second man accused of trying to join isis was not charged the u. S. And south korea continuing their large scale joint military exercises over the Korean Peninsula the fiveday drills began on monday and involved more than 200 aircraft north korea has denounced the drills as provocative. Russian president putin says he will seek reelection in next marchs election he made the statement at a meeting with workers and a factory. Putin has an Approval Rating topping 80 . Hes been in power since the year 2000. Time magazine selecting silence breakers as its persons of the year. Those are the individuals who broke silence regarding Sexual Harassment in the workplace and gave traction to the me too campaign thats it for this hour. I will send it down to you, carl. Sue, thank you very much. Lets get to dominic chu and get the close. European stocks mixed, a lot more red than green. Banks and technology among todays biggest decliners. German dax on track for four neck tiff day in the pags five despite unexpected increase in german factory orders for october, the london ftse on the rise, rare speck of green as it continues to decline published reports say there will be no brexit deal with week. Earlier today uk Prime Minister theresa may telling Parliament Good progress made on brexit this after a phone call with the head of Northern Irelands Democratic Unionist Party who says more work needs to be done to resolve issues involving Northern Irish irish border. In the uk hammerson agreeing to acquire rival intu, britains biggest Property Company thats a big deal there. South africabased sign off plunging in german trading after accounting irregularities. The retailer ceo has resigned. Ste steinhoff is the parent of the chain. Over to you. Thank you when we come back why facebook could leave tech stocks with 30 rally. The analyst behind that call joins us as we head to break checking out shares of forward which are lower. According to sources the company signing a deal with alibaba. Squawk alley after this. Wall street guy. Whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade and i am a senior Public Safety my namspecialist for pg e. My job is to help educate our First Responders on how to deal with natural gas and electric emergencies. Everyday when we go to work we want everyone to work safely and come home safely. I live right here in auburn, i absolutely love this community. Once i moved here i didnt want to live anywhere else. I love that people in this community are willing to come together to make a difference for other peoples lives. Together, were building a better california. Breaking news regarding senator al franken lets go to kayla in washington. Carla, we are getting a cascade of Democratic Senators colleagues of minnesota democrat al franken who are now calling for his resignation following politico report about a second woman, former democratic aide who franken tried to forcibly kiss after a radio appearance before he ran for congress we should note franken called those categorically untrue even so, four of his colleagues in the senate, who all happen to be women, are now calling for his resignation. Let me read you a portion of kirsten gillibrand, while senator franken is sbiltsed to have the Ethics Company complete the review, i believe it would be good for the company if he said this isnt acceptable by stepping aside these calls on facebook, twitter, through official statements it does seem that now colleagues of senator frankens are increasingly asking him to step aside. Carl. All over social media right now. Well find out later if it was a coordinated effort but feels that way for the moment. Kayla tausche in washington. Thanks tech stocks may have a tough week but evercore doesnt see it continuing, facebook and amazon. A new note said will lead with a gain of 30 . Joining us this morning the author of that report, anthony declemente, Senior Analyst good to have you back. Thanks. Great to be back. Did i get that number right, 30 yeah, thats correct. Were coming out bullish on the bank stocks. In addition to network effects, we think there are other things at play here the investment levels, the data they will use for Machine Learning and the customer captivity that these platforms have making the switching cost higher for customers we see the larger winner take most, winner take all platforms doing well we like most of those stocks facebook is the top pick going into 2018. Anthony, how much does everything have to go right, outside of tech, for stocks like facebook to maintain and even extend the kinds of valuations weve had up to this point. I think, jon, these are companies that continue to disrupt Traditional Industries at an incredible rate. I know what youre seeing, the stocks are up a lot. If i look at facebook and google and they are trading around 20 times, very conservative gap in 2019, even though you hear can stocks keep going up because they have had a great run, as an analyst, the multiples, metrics show they can. They have the martest people in the world. They are generally really well led. Somebody like mark zuckerberg, a visionary ceo. We see the growth continually. On the top line we think over the next three years facebook can deliver 30 growth these companies have just shown accelerating Revenue Growth as we were watching from the sidelines on on Third Quarter earnings so basically i think that the growth is there, the growth relative valuation is intact unthe concerns like regulation you talked about that in your previous segment a lot of those are probably priced in to these reasonable multiples. Anthony, thats exactly what i wanted to ask you about, regulation thats been a big theme this year what makes you think thats not going to intensify next year for the likes of facebook, google, and amazon and prove to be a bigger risk in pushing them higher i think the reason that it intensifies at maybe a slower pace than people are worried about, generally these companies have been good for consumers they are delivering fantastic products at the best value they are in a lot of ways doing it better than traditional providers, you look at Traditional Media Companies versus lets say netflix or facebook media experience. They are just doing a better job on things like user interface. So i think if youre a regulator, the government, say there may be some anticompetitive practices you knew, of course there was the fine this year for google. But they are not really stifling innovation they are not really bad for the consumer your previous segment i thought the gentleman talked about it well things like uber and airbnb creating market value. I know thats not happening in the Public Markets but my view would be bank stocks are not sucking the oxygen out of the room theres still plenty of room for innovation if youre the government, if youre a regulatory body, thats really what you care about is to make sure that Economic Growth in Silicon Valley and for tech and economy more broadly continues even in the presence of these really dominant players. Yeah. As a corollary to that, it sounds like that second tranche of Smaller Companies, pandoras, twitters, essentially got holds ongoing all of them. Some of those stocks, carl, have done really well. If i look at a stock like ebay, up 20 a year. Sms in Digital Media specifically, this winners take most dynamic where its hard if youre, for example, yelp, multiple advertising to compete with google and Facebook Snapchat for sure is on the other side of instagrams innovation and their growth. So in that space we generally in our previous shot weve been more favorable tobin b bigger winners, bigger platforms. If you can, i want to ask any canaries in the coal mine, cloud price wars, out of control content spending that could derail this bullish thesis you have on the big guys i mean, i just think from a technical perspective if you continue down a mode for investors of risk off, start to see the beginning of, there may be this rotation trend thats more of a technical comment. I dont see anything fundamental thats going to get in the way of the big disrupters. And you know, i just wanted to mention other top picks we had in the midcap space, interactivecorp and match group, both growing, both undervalued if theres one thing people are worried about, having been a media analyst in the past, its how much the larger players are going to dip their toe in the water on sports and sports investments. So will greater video investment actually make for compressing margins in 2018. Were actually expecting that. If i were to predict something in internet that would be interesting, i think the narrative would change on sunday football, monday night football. The big players like youtube, like amazon, i think they are going to be involved in the bidding for exclusive streaming of some of those big expensive sports properties. Youre asking for reasons to be bearish. If you wanted to be bearish on margins in the near term as they make that content investment sort of the way amazon has done on the media side you can be i would be bullish in the longterm these guys have done a great job creating fantastic ad formats. Over a longer period of time because of the targeting they will actually do a better job monday advertising professional content and sports they will build that structural advantage as they invest in highprice content thats kind of one thing im focused on going into next year. Weve been talking about that for a long time. Well see if that day ever comes. Anthony, well talk to you soon. Thanks for joining us. Thanks, guys. Still ahead, broad cam com o release results, details on the bid for qualcomm a preview of that next meantime dow up 20 Rick Santelli, what are you watching right now, right in my crosshairs, still under 30 basis points let me get this straight mario draghi going to buy less in aicatn ntipioof that they are yielding less . Well talk about that after the break. s. Im scott walker, here is whats coming up at the top of the hour big fund manager on tech, is the worst owe or more selling in the cards. First in, first out. Controversial provision in the tax plan weve told you about on halftime for weeks well, finally today some congressional action the very latest on where that stands beaten up chip stock one analyst said right now is our call of the day. Is it right for you . All that and more at the top of the hour well see you in ten minutes, carl. You have been all over fifo good stuff well see you in a bit lets get to cme Rick Santelli and Santelli Exchange good morning, rick. Good morning, carl. When i woke up this morning, the first market i look at lately its overseas sovereign market, spain, germany, what is the credit standard for eu, shots, twoyear boones out on the tenyear i notice the yields close to 30 violation on intraday in and of itself isnt huge. Weve had several in the last few days if you go back i think were splitting pays points here but i do believe around 8th of september traded maybe 29. About and the most recent drops have been 29. 5, 29. 7 but it doesnt matter on the intraday. Remember the roller coaster. Lots of markets are like roller coasters maybe bitcoin is like one direction, more like a report, but the thing about roller coasters is you have to get on and off at the same place or after it stops and closes are more important to that end lets go to a tenyear bund chart. There you can see the red line is 30 basis points we havent settled below it. I believe the exact date is like the 26th of june, so somewhere in june. We can call it roughly six months, but this is rather circumstances and ill tell you why. Because a tenyear bund, we can say were bund led and i like it more like it bundled with sovereign long end rates around the world. Imagine a room of investors that look up in stocks and say, you know what, i need to diversify a little bit im not sure how this is going to end let me think what am i going to buy and what currency am i going to use how does all this give me the best deal . Well, in many ways they come to the u. S. And they look at our markets because the bund yields which by the way opened up around 20 basis points, if they get anywhere near, that you really want to watch how much its going to lead because its bundled, and look at the spread. If you look at the spread relationship, i believe the recent high has been around 206 basis points that separated our 10s from the european 10s. Its getting closer to 200 there was a time when many thought 1. 65 was home base, so i guess the point of this most likely it will narrow and its narrowing at a time when draghi is going to buy less which means 2018 it will look completely different. Either case, thats something you want to Pay Attention to jon fortt, back to you all right thank you, Rick Santelli still ahead, were going to tell you why the bearer of the olympic flame might look a little different this year squawk alley is back after this broadco mcet to report after the closing bell josh lipton joins us from San Francisco with more. Hey, josh. Broadcom has suffered a recent slip but still up 50 so far this year. Today broadcom is expected to report ep on revenue of 4. 8 billion representing gains of 30 and 16 respectively but investor focus will likely be less on broadcoms fundamentals and more that be what the ceo will say about its outstanding bid for rival Qualcomm Broadcom is planning to announce a slate of directors at qualcomm shareholder meetings to take place next march how does this play out bernstein, stacy rasgon isnt sure that qualcomms bid undervalues the company as much as qualcomms management does, but he does announce another concern, possible Regulatory Risk remember, just days before broadcom launched that bid the ceo announced plans to move its headquarters to the u. S. Complete with a photo op with President Trump himself. So what would the merged Company Look Like . Well, it would dominate 62 of the market for way if i chips, 50 for bluetooth chips and 52 for gps children, according to gartner. Broadcoms Conference Call starts at 5 00 p. M. Eastern. Its going to be the first time that broadcoms ceo will publicly field questions from analysts about this fight. Jon, back to you. Thanks very much. Josh lipton. When we come back, a robot rolliot to tell you about. How they plan to use machines to deliver your next meal when squawk alley continues getting some tape playback of the president s Cabinet Meeting a few minutes ago in the cabinet room ch being respected once again all over the world however, we face many serious threats. The lots of things are happening in our country lots of very positive things, but we have some things that very to talk about were going to be discussing today the situation in north korea. It will be handled, and it will be handled properly. Many of our brave troops will be spending christmas overseas. Were thinking about them. Were funding them like they havent been funded in a long time best equipment you can get our military is getting stronger, and i expect that very soon ill be able to say stronger than ever before. It was very depleted when i got here its not going to be depleted anylocker, so i just want to thank everybody. I want to congratulate Kirsten Nielsen who was just confirmed yesterday. Its been had a long wait. Were waiting for a lot of others all of you are waiting for people or most of you are waiting for people to come in and help i know from the stand point trade were waiting for a lot of our trade representatives to be approved they just dont want to do it. The democrats just dont want to give us those people they delay them as long as possible they take every sickle minute th that they can take its not right i would like to congratulate our new second of homeland security. Kirsten, good luck im especially thrilled to report that the Senate Passed massive tax cuts and reform. You know about that very well. Youve covered it for the most part accurately which is surprise for you folks, but thats okay. Were on the verge of an historic victory that cuts taxes for the middle class, for businesses, brings back probably in excess of 4 trillion as you know, weve been saying 2. 5 trillion for years. Well, that number has greatly expand, and well be bringing back in excess of 4 trillion that will be put to work in our country. There will be a lot of jobs being brought back with that money. Right now that money is being spent overseas its not going to be spent overzeas any more. The house and senate are now negotiating the final bill, and i cannot wait to sign these giant tax cuts and reforms i mentioned tax cuts, but its also reforms, but im looking forward to signing it. It will be the largest tax cuts by far in the history of our country. Well be bringing th