Good morning a warm welcome to Worldwide Exchange here on cnbc im wilfred frost. Lets get straight to the market picture. We did see yesterday the s p flat, the dow down about 0. 15 the nasdaq was up, 0. 2 . Theres been some concerns of a selloff. Weak to date were only down half of a percent for the dow and s p. The nasdaq is down a full percent. Its not that bad given the great runs of late this morning bouncing back, nearly 40 points higher for the dow. The s p up 5 points. The nasdaq up 25 points or so. Lets look at europe it was down yesterday, but not too badly. Having sold off more meaningfully at the start of the week germany up a half percent. About a quarter of a percent of gains for the uk and france. Asia in the eye of the storm yesterday with quite significant declines lets get more on the markets in asia from Nancy Hungerford she joins us from singapore. Hey, nancy thats right. A different story here for asian equities lets start with the comeback story, the nikkei 225, higher by 1. 5 not entirely clawing back the 2 dip we got yesterday investors saw reason to do bargain hunting. It wasnt all rosy the kospi still lower by a half percent. The shanghai off 0. 7 on the close. Look at some of the banks on the mainland they before they were in focus you can see moves across the board as low as 1. 4 lets look at hong kong. The story there was tencent. Rallying about 3. 3 . Tencent has been a weak spot for the hang seng. This move to the upside did help sentiment in hong kong it was a bit of a rebound, but not quite clawing back the 2 dip yesterday. Though when you consider this index has climbed nearly 30 this year, a lot of the strategists ive been speaking to in singapore have been telling me tis the season for profit taking. Back to you. Thank you very much for that. Lets keep an eye on the rest of the markets. Oil prices were down nearly 3 yesterday. Some data showing a pick up in u. S. Production, bouncing back a third of a percent or so today 56. 1 the price of wti. Dollar board, we did see the dollar up slightly yesterday but not doing too much yesterday. Again, not too much today. Its up against the yen, broadly flat against the pound and euro. The pound has had a tough week after slipping hopes of a deal between the uk and the eu in terms of certain factors of that brexit negotiation but it stemmed that slide today, 133. 81 bitcoin continues to plow through 14,000 yesterday its close to 15,000 up 8 . That par bolick riabolic rise co amaze. Lets talk more about markets, joining me is timothy lesco. Thank you very much for joining me thank you very much for having me. Lets talk about the back and forth in markets, more generally stateside. Euphoria on monday morning based around tax reform hopes. Its slipped a bit since when we consider the declines weve soon in hong kong and jap japan, would we frame this weeks markets as resilient as opposed to outright negative i think the markets have been resilient. Were going through a period of rotation, Technology Stocks are losing some of the froth thats built in to them over the past few months bitcoin is taking some of the noise out of the room. Momentum has been the name of the game since 2013. So as we see Technology Stocks come off, were looking to see where is that monroe tating . Weve seen some rotation into energy and financials. But the money will always seek lower valuations even within this market rally, theres certainly cheap areas of the market if you did a chart of who benefits the most from tax reform, it would be domestic companies, healthcare companies, financial companies, Energy Companies to some extent before t where the Technology Companies dont benefit from the lower u. S. Rates, and those Technology Companies that dont make money dont benefit from a tax rate reduction at all momentum has been a massive factor for markets broadly a change in momentum can shake out quite a big pullback is that something you fear could be about to happen, whether its tech or the Broader Market if you look at any other time where you had a major shift in the tenor of the markets, its usually associated with dislocation. As a stockholder and manager, we dont want to see that dislocation. We dont know where that will come from. Right now its coming from valuation and tax policy a more broad change might come from higher Interest Rates that doesnt seem to be on the shortterm horizon what do higher Interest Rates mean for the dollar coregoing forward next year . We see that the Dollar Movement has precipitated moves by the fed over the past three, four years, but has yet to gain that permanent traction. Youre seeing it in the volatility in the asian markets. Its not to a point where we think it will inhibit trade or earnings higher Interest Rates should mean a higher dollar, but so far that seems to be telegraphed by the dollar ahead of those markets. Thank you very much for joining us thank you for having me turning to the wall street agenda, two key economic reports. Weekly jobless claims out at 8 30 a. M. Eastern. At 3 00, kokt consumer credit. Deltech nl technologies before opening bell, after the bell, American Outdoor brands. Turning to politics. Some late breaking news on tax reform two key gop house members telling ylan mui a 22 tax rate is on the table, thats higher than the 20 currently proposed in the house bill. The news comes as republican lawmakers look for new ways to pay for the overhaul plan. More on that story coming up later. The proposed cuts could have an impact on hedge funds leslie picker joins me with those details. Thats right. Already having an impact on hedge funds. They had been on the mend producing some of the best returns year to date since 2013. As the prospect for tax reform looked likely in recent weeks, the market took aim at some of the more Popular Hedge Fund positions. In the last week of november, Popular Hedge Fund trades within technology and faker ba efactord trades saw a pull back, less Popular Hedge Fund trades gained the performance of tax expose equities indicates an 80 likelihood that tax reform is passed thats according to a note from Goldman Sachs earlier this week. Hedge funds have been crystalizing some of their gains ahead of the tax reform bill some have been selling stakes now, while those held by less than three years can be treated still as Capital Gains, a hedge fund must hold a position for a year to get the lower tax rate some Hedge Fund Managers are considering paying out bonuses early this year in advance of a potential elimination of the state and local income Tax Deduction. Many traders are expected better bonuses than theyve seen in years. That carried interest provision, even if there are some holdings where it wont apply to at the moment, moving forward hedge funds do trade much more regular than three years versus private equity. The provision is not really a provision against them almost all of their investments last longer than three years its not a provision against either hedge funds or private equity hedge funds have a oneyear limit, private equity tens to hold things longer than three years. Usually the duration of the fund is ten years they hold assets on average about seven. Rarely does that threeyear provision as it is written in the bill, will it actually impact private equity firms. Its unleakly to really dictate much in the way of trading the people selling currently have held on to positions, and rare instances for about a year, but dont plan to hold it for another two years in order to be treated as Capital Gains under the new plan that bonus early payout of early bonuses applying to hedge funds in the states, and a lot are based in new york. Boost are based in new york, connecticut, illinois and california so those are four states that have the best value derived from the state and local Tax Deduction as it is written now so the gp of the fund as well as their employees would see the benefit from the state and local Tax Deduction. The elimination of that makes them say, you know, maybe we should pay out these bonuses before the end of the year so we can capture that while we still can and deal with next year when it comes around. I dont dislike that. It is nice to get it for christmas. Who wants a bonus in january it puts the christmas in christmas bonuses. Broadcom reporting better than expected results on Strong Demand for its wireless chips. The stock up 4 . Lululemons earnings beat forecast as revenue rose 14 the company says the Holiday Season is off to a great start it saw the highest traffic and largest sales ever on black friday and cybermonday up 7. 6 . Dont miss lululemons ceo live on squawk on the street at 9 30 a. M. Eastern time. Chevron said its 2018 spending budget at 18 18. 3 billion, thats 4 less than this year, and lower for the fourth year in a row Energy CompaniesCapital Spending plans have been broadly shrinking since the Oil Price Collapse in 2014 chevron is flat today. Still ahead on Worldwide Exchange, citi shares under pressure last night. Well tell you the details of why. Plus crisis in california as massive wildfires continued to burn unchecked were headed live to the front lines. Later today, jim cramers interview with boeings ceo, you can catch that on mad meyaton 6 00 p. M. Eastern time were back with more Worldwide Exchange in a couple minutes. 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. Were continuing to follow the developing story out of Southern California where several wildfires are burning out of control. Lets get to jinah kim live in ventura, california with the latest good morning. The National Weather service issued a dire warning overnight saying extremely critical fire weather conditions could cause rapid fire spread once again here in Southern California today. Four days into devastation like this reporter the 50 to 80mileperhour gusts that drove the flames across Southern California this week returned this morning when its this bad, fire officials say, theres prokta y ab practically nothing they can do. The winds are back up a lot of the terrain has not burned in decades. Reporter the latest fire created a wall of flames along the 405 freeway as the morning commute got underway yesterday i can feel the heat. Reporter it shut down the freeway near ucla for hours making the traffic conditions even worse it damaged or destroyed some 11 structures including at least four homes in bellaire, home to million nars and celebrities the biggest of the four fires is the thomas fire in all more than 100,000 acres have burned, 200,000 people remain evacuated, about 200 homes and buildings have been damaged or destroyed devastated. Its overwhelming. Like everyone else, we know that some day it will be restored reporter today well see summerlike conditions returning, with single digit humidity and near 80 degree temperatures we typically see the worst fire conditions in october here in california, so its surprising were getting so late in the year live in ventura, jinah kim, back to you surprising and sad to see thank you for that report. Turning back to the markets. Shares of citi falling late yesterday on two separate headlines from the banks cfo. Saying the Fourth Quarter markets revenue could come in weaker than expected and saying citi would take a 20 billion hit to earnings if the current gop tax plan passes. Lets bring in chris whalen of whalen Global Advisers they pay about 30 tax, so a 20 tax cut overall is a good thing for them, but they carry deferred tax assets on their Balance Sheet, which will need a oneoff writedown. They knew about it, but it becomes real so many financial institutions, they will have to write down these tax assets, because theyll be worth less overtime you look at the value overtime versus the writeoff. The key thing i suppose is over the last two weeks, when tax reform news has been improving, citi still up 5 . Just up 7 before the news tax reform overall is still a good thing for them. It is and the margins are expanding on the investment side because the yield on many books has been going up, the deposit costs hasnt on the noninterest side, the investment banking, trading, thats been suppressed by the fed. When they push volatility down, people dont hedge the other thing is the volcker rule you have big portfolios out there that they used to trade, and the street would make money off of that activity you have a couple factors pushing down the market side of the bank the Interest Rate side is Getting Better because depositors have not seen benefit from the supposed Interest Rate increase from the fed. In terms of how we bring that around to the sector as a whole, banks have had a graeat run over the course of 12 months and two, three weeks, how do you bring in some of those improving fundamentals for the Interest Rate parts of the business and evaluations. Is this sector still a buy i think this sector is considerably overvalued. Equity returns are still returning at 30 , 35 below where we were before the crisis. The banks were cheating. They had a lot of off Balance Sheet exposures that drove earnings faster. Like putting more sail up on a sail boat. Now, no. So theyre constrained on that side, also constrained in terms of lending theres such competition for loans, none of the big guys have pricing power. City, for example, the commercial industrial book is well below their peers somebody like wells fargo makes a point more than citi does. Its a competitive market. Its hard for banks to find good earning assets what about smaller names the other thing in focus there week is the senate financing committee, Banking Committee talking about removing the sifi, too big to fail label with certain banks of certain sizes, relaxing volcker for Smaller Banks. Is that a big boost for them would you switch exposure from the big names to smaller names i always thought the real returns are in the smaller names. Bank of the ozarks banks that are growing theres a whole raft of 50 to 1 150 billion names you can loo at you can go smaller thats where the growth is so i think, yes, expenses generally in the industry will go down for banks and nonbanks, which is good news the Smaller Banks will see more benefit because a lot of the things we were requiring them to do made no sense we have new leadership at the fed. The big, immediate benefit for financials in terms of washington will be lower expenses, that nuance that comes across in Regulatory Guidance that you dont see written down, but how theyre regulated that could be worth a lot of money to investors. Top small cap buy and top big cap avoid . I wouldnt be loading up on the big caps which would you avoid of the big caps i would not look at putting exposure in any of them. You can selectively go out and look for id iosyncratic stories, but because of the fed, just about anything out there thats large cap that has liquidity is overvalued now by definition the same thing we were talking about before if you look at the Interest Rate exposure and those mortgage backs that the fed is selling, its pretty scary. Would you want to buy that today . Jimmy grant said the fed is selling, youre buying that summarizes it all. Chris, we have to leave it there. Thank you chris whalen of whalen Global Advisers. Still to come a major move on tax reform. Were live in washington with details. Were back in a couple moments for your heart. Your joints. 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. 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. Turning to politics, big changes could be coming to the gops tax plan ylan mui joins us with all the details. There are new questions over exactly where the corporate rate will end up as republicans begin these final negotiations over their tax plan two key gop lawmakers in the house have told me that a 22 rate is on the table they described it as a dial that they could use to turn up to pay for other priorities such as expanding the state and local Tax Deduction. I want to caution this is not a done deal. In the senate, influential republicans like pat toomey of pennsylvania and orrin hatch are pushing back against this idea i talked to senator david perdue last night, he said hes taking a hard position on keeping the rate at 20 . The final version of this tax bill will be hammered out between the two chambers in Conference Committee over the next few weeks House Committee members met last night. They were expected to discuss the corporate rate during that meeting. The senate, it picked its Committee Members last night as well senator hatch will be one of them he took a moment to give his fellow republicans a little pat on the back for making it this far. There is still work to do as we work to iron out differences with the house and make sure that every section of this bill is ready to be eased into law or passed into law. That said, i think we deserve to celebrate a little bit all the attention in washington will be on avoiding a Government Shutdown over the next few days. There is going to be plenty of behindthescenes talk as republicans race towards that christmas deadline to get this bill passed. Is the president and the Administration Still absolutely nailed to 20 . Would President Trump sign 22 thats the big question it was President Trump himself who threw 22 into the mix over the weekend when he suggested that thats where the corporate rate could sort of come out at the end of the day when all of this is hashed out so his advisers were on the hill yesterday. We saw mark shore walking around, talking to lawmakers they say the preference is 20 , but its unclear if that 20 is a red line or maybe its pink. Little pink i like that. We have been talking about that in british politics and the negotiations around brexit. Still ahead, a round up of the top stories and a check of the Global Markets plus, remember this . Lets have a look at bitcoin pushing higher, above 12,500, now 12,600 that was just 24 hours ago. In that time, bitcoin has gained another 2 stush 2,100, 17 well dig into that big breakout when Worldwide Exchange returns. Fly me to the moon and let me play amon ding bell mnemonic stocks pointing to a higher open on wall street as tech stocks continue their bounce back. Crisis in california thousands of people fleeing their homes as a string of wildfires intensify. And stop me if you heard this before. Bitcoin surging again. The cryptocurrency firmly above 14,000. Well get a take on the latest breakout its thursday, december 7, 2017. Youre watching Worldwide Exchange on cnbc. Good morning welcome back to Worldwide Exchange on cnbc. Some concerns that u. S. Markets have been soft this week the dow and s p down just a half percent week to date the nasdaq is down a percent week to date weve seen fantastic runs of late so those declines not too severe they are less severe than around the rest of the world as well. Were bouncing back this morning. 41 points for the dow. S p up 5 the nasdaq up 27 points. Tenyear treasury note has seen a risk off move over the course of this week it slipped down to 2. 33 over the weekend. It crossed above 2. 4 that slipped a bit the short end of the curve has either risen or stayed flat so a bit of a flattening again over the course of the week asian equities, not soft today after what has been a soft week and soft session yesterday 2 of declines yesterday for hong kong and japan. Today, japan bouncing back nicely hong kong slightly higher. Shanghai soft. European markets yesterday were down, but not too meaningfully having been down more meaningfully earlier in the week 0. 6 for germany the uk and france up, but not as much Broader Markets, oil prices were a concern yesterday. Down nearly 3 u. S. Output did increase significantly. Thats why we saw oil slip nearly 3 . Its bouncing back today up about 0. 5 . 56. 2 dollar board for you a little bit of strength yesterday for the dollar, nothing too significant. Today its moving a beth higher against the yen, not doing much against the euro and the pound the pound has been fairly soft this week, just stopping that slide today. Its up 10 basis points at 1. 34. Bitcoin up 17 since this time yesterday or 2,100 to 14,681 parabolic rise over the last couple of days huge rise just generally speaking over the last year. Lets talk more about bitcoins run. Joining us is brian kelly, a fast money contributor great to have you with us on Worldwide Exchange. Yep youre positive on bitcoin. Whats the main reason for that . Listen, to me, this is an entirely new asset class i dont know if bitcoin is going to be the Global Digital currency or Something Else will be there, but were going to have a Global Digital currency i know that at the market cap today, thats not right price. The market cap should be in the trillions, not the billions. Do we talk about a market cap for a currency yeah. Its a great point because its a little misleading when we talk about market cap, we think of stocks currencies can grow to whatever size they need to grow to to support the underlying gdp when i say, you know, bitcoin currently, if you take the price, times the amount of outstanding coins, you get a market cap above 200 billion, approaching 300 billion. But if its going to be a global currency, i say its going to take some percent of global m1, global m1 is 1 100 trillion market thats why im saying, the upside here is a multiple of where it should be today the downside argument therefore, if we are thinking of it as a currency as opposed to a commodity or asset class or stock is that can you go out today with one bitcoin and get 4,800 worth of goods . If you cant, then why are you putting your money in that currency yeah. Yes, the answer is yes over 100,000 business take bitcoin. On overstock. Com you can use it. You can use it on expedia. But the reality is its not a practical currency something that goes up 17 on the day is something that people hold on to were seeing People Holding on to good money and then spending what they consider bad money just a final criticism on the currency point, i guess there are other cryptocurrencies out there, many of them, in fact new ones can be created overnight. The argument of putting your money in bitcoin as opposed to broadly backing the other currencies, i guess its no different going back to the days when things would be trade goods for goods, gold for goods, diamond fors gos for goods, thee develop Paper Currency for goods. Myspace existed well before facebook thats the history of tech and economics. It disrupts itself i dont know if bitcoin is going to be the end all and be all but i do know this is a new asset class. I know well have a Digital Currency and there will be multiple different assets. Some will be commodities and act more like digital gold like bitcoin is now some of them will be transactional currencies then well have a whole host of other Digital Assets that will support the digital economy. Im making a bet on the entire ecosystem, not just bitcoin. I think thats an important point because people get caught up in the price frenzy here. But theres a Bigger Picture going on lets broad i will have a final question on why the markets. Week to date, dow down half a percent. Nasdaq down a percent. Do you see that as a concern, a start of a pullback or is it resilient in the face of much bigger declines . Weve seen globally big declines, particularly in asia and china. Even today german Industrial Production was weaker than expected people are expecting that to be an anomaly im surprised at how well the u. S. Hold up given the fact that around the world were starting to see softness. If i look at the bond markets, i look at the german bund and the u. S. Tenyear, it is suggesting were not going to get a reflationary push, we will not get a big uptick in gdp, im surprised the u. S. Market held up so well great stuff thank you very much for joining us, brian, brought and early you can catch more of brian. Bob iger will likely remain disneys ceo if the deal to buy parts of 21st century fox goes through. Fox continues to view disneys bid as superior to others, but comcast and verizon are still in the hunt for some of foxs assets lets bring in our guest lets start with the headline that david faber has been reporting this week, which is that theres a very clear frontrunner in the race for the fox assets, thats disney. Do you agree with that yeah, absolutely. Disney is a compelling sort of consolidation in a number of areas where fox is active, including in the movie studios, gives disney a way to position itself as an over the top player internationally, and bring in a host of entertainment assets which is what companies are looking for in some way to address the question of whether they will get wiped out by netflix, amazon, facebook or google this is all reaction to forces that the internet is bringing into the industry. Youre framing this as to why this makes sense for disney. One could argue it makes sense to comcast and verizon in terms of 9 deals and offers on the table, is disneys the best in foxs eyes we believe that is the case the reason for that is that disneys offer, if you analyze the regulatory antitrust scrutiny which is severe in this industry which is already heavily consolidated, that probably has the least regulatory hurdles to getting done comcast already owns Nbc Universal and expanding further it will be difficult to get this sort of consolidation through regulators if you think about whats going on in washington now with the at t time warner takeover, thats a deal that we thought a year ago would have had regulatory scrutiny, now considered a vertical merger and something that will potentially get blocked by the u. S. Government if im tracking a transformational deal if im fox or accepting disney paper in an all share deal, i need to have spree supreme confidence that this thing will get through i will expose my business for 12 to 18 months through a long regulatory process the discussions with verizon and comcast t looks like disney is the preferred one and brings in the topic of murdochs succession whats your take on that . Some people suggesting iger stays on as disneys ceo, but James Murdoch would get a senior role and potentially anointed as his successor at some point. We have no clarity on whether that is a serious proposal, but thats been brought up in the discussions based on our sources. When youre a ceo, striking a transformational deal, the last thing you do is walk away from it iger has been linked to president ial ambitions in the united states, and has become more politically vocal in recent years. But hes also this is the fourth time that he has sort of extended his retirement if he doesnt step down in 2019. Once again, when youre doing a transformational deal, you dont just walk away from the table, you integrate it and see it through. Thats a logical sort of outcome. Just quickly on sky and the uk, theres been changing reporting in terms of whether or not an acquirer of foxs stake in sky can also acquire a pending deal, or whether the deal would have to fall apart and start again. Weve been clear about this at the Financial Times i was on tv with you a few weeks ago. We had the same discussion under the uk Takeover Panel rules, fox has no way out of its acquisition of sky fox, unless theres a significant regulatory change to the transaction, theres no way fox can get out of that offer. A deal with disney would be structured such that it would be preconditional to fox completing its acquisition of sky, and then disney takes over. That is how it would have to be done in one way, shape or form how you do that precisely cannican ibe jiggered with the lawyers and the language interestingly what this also means is that depending on where James Murdoch ends up, hes close to the ceo of sky. And our understanding was that in a takeover of sky by fox which saw no other players get involved, jeremy would have remained a part of the group now if disney comes in and buys that, it raises the question of where the ceo of sky ends up arash, thank you very much for joining us Billionaire Hedge Fund manager paul jude ah jones who d thrown his support around Harvey Weinstein is now distancing himself from the hollywood mogul. He was a board member at Harvey Weinsteins production company. He shot an email to the disgraced hollywood mogul saying this will go away sooner than you think and will be forgotten. Thats according to a report in the new york times. Following that story, tudor jones sent a memo to his employees, a copy of which was obtained by cnbc in it he writes i deeply believe in redemption but i know now harvey was a friend i believed too long and defended too long he goes on to say perhaps in your own life you have faced a similar dilemma. How to react to a friend who is revealed to be someone other than the person you believed him or her to be tudor jones says he first learned about the revelations surrounding weinstein only as they were reported in the media. He said he joined the board in late 2015 after weinsteins contract was already renewed thank you very much for that. Leslie will join us for more after the break. Coming up, dramatic images out of Southern California wildfires continue to burn unchecked. We have the latest on that were on bitcoin 15,000 watch now. Up to ,71445 stick around Worldwide Exchange back in a couple minutes expect massive delays. radio channel changing news anchor 2 all lanes on highway 50 remain closed at this hour. news anchor 3 the stats are in and this city leads with some of the worst traffic, with the average driver sitting in gridlock the equivalent of three days a year. For every hour that youre idling in your car, youre sending about half a gallon of gasoline up in the air. That amounts, over the course of the week, to about 10 pounds of carbon dioxide. Growth is good, but when it starts impacting our quality of air and quality of life, thats a problem. So forwardthinking cities like sacramento are investing in streets that are smarter and greener. The solution was right under our feet. Asphalt. Or to be more precise, intelligent asphalt. By embedding sensors into the pavement, as well as installing cameras on traffic lights, we will be able to study and analyze the flow of traffic. Then, we will take all of that data and we use it to optimize the timing of lights, so that traffic flows easier and travel times are shorter. And sacramento is just the beginning. With advances in cameras, sensors, and network speeds, we have the ability to make cities smarter, and happier. What excites me about this technology is that were using some of the most cuttingedge machinelearning, and ai, to help solve the most fundamental challenges that cities face around the world. Who knew asphalt could help save the environment . lani and the possibilities are endless. 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. Good morning welcome back to Worldwide Exchange. Im wilfred frost. Time for our top trending stories. Leslie picker is back with them. Some dramatic images from the wildfires that are raging in Southern California. This video was shot by a morning commuteder yesterday as the fires close in on the 405 freeway in the los angeles area. The highway has reopened after being shut down in both directions yesterday though mandatory evacuations are still in effect for bellaire and other neighborhoods. Astonishing and terrifying pictures also hearing from reporters earlier that its coming so much later in the season. Exactly bitcoins surge this year may be attracting more investors and thieves. Nice hash, a Bitcoin Mining service says hackers stole the contents of its virtual wallet they made off with bitcoins worth more than 60 million. The site made the announcement yesterday after an hours long outage that at the time was attributed to maintenance. This is fascinating i was talking with howard marks yesterday about this aspect of bitcoin. Everyone says this is one of the bonuses of bitcoin, saying it cant be hacked. And Blockchain Technology itself cant be hacked. From the users perspective, if a Bitcoin Miner can get hacked t doesnt matter i was talking to a bitcoin investor yesterday, she was saying that some of the biggest risks surrounding bitcoin is this idea that it cant be hacked, people think its automatically secure clearly it can be hacked its something where, you know, if you have 60 million in a safe at a bank, it will be insured somehow. With bitcoin, it seems like its so easy to steal that. Then you have no recourse at the end of the day i dont think a Bitcoin Mining company at the moment has the trust that a big name branded bank does in terms of the backdrop of, okay, someone stole it, well refund it to you. Thats an important point to note when its quoted as blockchain cant be hacked ever clearly from the consumers point of view there are still ways to lose your money. And as it goes higher and higher, the appeal goes higher and higher remember the da vinci patienting that sold at auction last month for 4 450 million the identity of the mystery buyer has been revealed as a little known saudi prince. He is from a Remote Branch of the saudi royal family he has no history as a mangjor r collector. The new louvre in abu dhabi said the artwork is headed there. Interesting people were speculating, u. S. Art buyers a couple hedge fund people, but its a saudi prince who purchased the painting if someone feels emboldened enough to buy a 4 450 million painting, do they feel more comfortable with their statue in the royal family i agree its almost like a red flag to the bull for the anticorruption drive there. The gentleman whose name you know well, he doesnt feel that way. Ryan reynolds may be going from one hollywood blockbuster to another the Hollywood Reporter has revealed that the deadpool actor will play the title role in the upcoming live action pokemon movie. Reynolds will play detective pikachu. Production is set to start next month. I know you already preordered your tickets to this one eh, no. I love Ryan Reynolds i prefer his earlier work, heartthrob in a chick flick or his proper action movies deadpool didnt work for me. The most important thing we learned here is that wilfred loves chick flicks i do. Especially knotting hill and the like still ahead on Worldwide Exchange, the s p looking to snap a fiveday losing streak as energy and financials push higher we have uryo trading day set up ahead when we return welcomek were approaching the top of the hour, the team has squawk coming up. And andrew is joining us the big story this morning is taxes, taxes how much have you talked about the front page the Financial Times in terms of the Tax Implications of apple. 47 billion is what theyre saying the windfall will be for that company a number of congress people, senators up on deck there. Do we consider your home paper, your home magazine, the economist . The editor of the economist is coming on. Do you think of that as i love the economist, its only because im a geek. Its only you and i who would pick a magazine of that ilk as our favorite im with you i agree. So those predictions in a bit. Watch out for that nice. Looking forward to that on squawk box in six minutes time lets talk markets, currencies and the like lets bring in kathy li. The dollar has had an interesting move this week initially the tax reform headlines over the weekend and late friday were taken as positive since then the yield curve and the dollar not doing much. Not reacting as positively as you might have expected. Thats right. The dollar has struggled to rise after the Senate Passed its version of the tax bill. We did see a bit of Dollar Strength against the euro, but thats due to risk aversion and political factors in that part of the world generally speaken the dollar has not risen until today. The reason for that is the market underestimated the positive implications of tax reform, the gops motivation to get a deal done by the end of the year, as well as the prospect of a rate hike next week so, as we get closer to nonfarm payrolls on friday and we think about these things and a tax conference begins, at the end of the day this is going to be positive for the green back, not only because of the nearterm stimulative impact but because there will be a significant amount of repatriation flows as u. S. Corporations try to reduce tax bills. Were starting to see what could be a christmas rally just quickly on the euro, it had a great bounce back over the course of the last three, four weeks. Where do you place it now heading into next year i think that the euro is going to be finding some support. One of the major issues why it has fallen is because of its political troubles economically data has been good. Its been consistently surprising to the upside for germany. I think thats going to be a bright spot. The ecb will be optimistic about it and germany will work through their political problems a lot of those factors have shortterm impact on the euro. We could see more outperformance against Commodity Currencies as well as possibly sterling and the japanese yen kathy, an fthksor joining us. Thats it for Worldwide Exchange. Squawk box comes up next good morning the markets are bouncing back. Wall street pointing to a higher open driven by a rebound in asia a rundown of the biggest movers. Developing story, this is frightening. Wildfires in Southern California are burning out of control thousands are fleeing their homes. Forecasts call for high winds and extreme burn conditions. Plus bitcoins 2,000 day, the cryptocurrency has a more than doubled in a month and its climbing to a knew high this morning. Its andrews favorite thing and hes back hes back oh here he is here he is back from china what about bitcoin what about bitcoin. Let me stand up straight if youre going to be here. Its thursday, december 7, a day that will live in infamy, 2017, squawk box begins now. Live from new york where business never sleeps, this is squawk box. Good morning. Welcome to squawk box on cnbc. We are live from the Nasdaq Market site in times square. Im becky quick along with joe kernen and Andrew Ross Sorkin who is back from china who has really fresh breath. He said i brush my death its not just my breath i put on burts bees lip balm. Your lips look dry. Is that like the nasal spray . Its minty. You might have