Transcripts For CNBC Worldwide Exchange 20171212

Good morning. Very warm welcome to Worldwide Exchange here on cnbc im wilfred frost. Lets get to the Global Market picture, after a day when the nasdaq did lead the markets higher, up 0. 5 , the dow up 0. 3. A broad, positive day. 9 out of 11 s p sectors were led higher by the likes of telcos and energy we have green across the screen once again not huge gains, but positive across the three indices 45 points for the dow. S p and nasdaq up just slightly. Tenyear treasury note yesterday moved in a riskon way we saw the yield on the tenyear tick up nicely, close to 2. 4 . Hitting 2. 39 around the close. Just a bit of buying of the bond market this morning, pushing that yield on the tenyear down to 2. 38 lets look at markets around the rest of the world. Asian equities negative. Shanghai down 1. 25 . Hong kong, 0. 6 japan, 0. 3 . European trade is positive but only slightly. Up about a tenth or twotenths of a percent the ftse 100 had a good day yesterday. It was up 0. 8 broader markets for you, oil prices helped the Energy Sector higher, they were up just over 1 oil today up just under 1 , but continuing a decent start to the week, following a tricky set of performances last week 5 8. 4 is the price of wti crude. The dollar board was flat yesterday. Fractionally higher which did give it a sixth positive session in a row, but only slightly higher today not too much happening again. You can see its a bit weaker by 0. 1 against the euro and the yen. Bitcoin prices for you, keeping a close eye on those had a great first day post the formal introduction on the futures market today giving up a bit of ground. 3. 3 thats a small move when it comes to bitcoin the price of the future, 79. 30 listening to what bitcoin. Com ceo roger ver said yesterday on fast money. Im concerned about bitcoin, because people were saying they wanted high fees and unreliable transactions if thats the case, people wont use it joining us now is brian kelly, fast money trader good morning good morning, wilf. We heard there that he was saying theres high transaction fees unreliable trades yet coming on the day we got the first cbo futures markets. Whats your take on that and the fact that now we have futures trading and the price didnt fall listen, roger is obviously a smart guy. Very early on it but i think people also need to understand that he has forked bitcoin, in other words, he split off bitcoin, he has his own coin, his own economic argument he makes the argument that thats the real bitcoin. Bitcoin elicits passion from people its kind of a movement here i think people need to understand that there are two very different sides on this the fees on bitcoin have gone very high and then very low. As an early technology, theres a lot of ways to skin this cat roger was early and smart, somebody that you should listen to, but you should listen to both sides brian, you were early and smart on this but still bullish. Im bullish on the entire space. My view in general is that this is going to be a new asset class. I dont make an opinion on which assets will work its just the asset class in total. If i look at bitcoin and say that myspace existed before facebook existed, so tech interrupts itself. So you wouldnt advise a viewer to buy just bitcoin because thats the one they heard about . You can diversify your portfolio. I love bitcoin i think it goes a lot higher theres things that can be built upon it, things like the lightning network. But theres other coins out there. You can have a basket of these assets the other thing people do with their portfolio, not just diversification, but take profits after a good run and reinvest have you done that at all with any of your Digital Currencies im an active hedge fund manager, so i would be moving all around these things. Theres not anything rocwrong after an asset has gone up 1,000 , theres nothing wrong with taking profits. You also said that as if you regularly in your career had to take a move after a 1,000 percent increase this is a unique investment in the investment world. I talk to some people about the arbitrage with the futures, you can earn 5 to 10 a month you know, sometimes in cryptocurrencies people turn their nose up at those returns but thats a good return it is i think my days of a fund manager, circumstances were at best 7 up, time to take some profits. As ever, thank you very much brian kelly. Catch more of him and fast money the big bitcoin week theyre doing at 5 00 p. M. 12 hours away. But look forward to that in corporate news, comcast is walking away from its interest in 21st century fox assets leslie picker has all the details on that. Comcast is no longer pursuing a deal for most of the assets ofst century fox. They said last night when a set of assets like 21st century fox becomes available, its our responsibility to evaluatetegict could benefit our company and shareholders thats what we tried to do were no longer engaged in those assets we never got to the level of engagement to make a definitive offer. Comcasts decision to drop itsed by leaves disney as the main suitor for some of the assets, which includes its movie studio, cable channels and indias star network and a stake in sky disney is getting closer and closer to inking a deal. Cnbc reported that one could be announced as soon as this week its been reported that the Murdoch Family prefers a deal with disney because it expects easier antitrust clearance this deal would come on the heels of the Justice Department lawsuit to block at ts deal to buy time warner. Thank you very much for that. The other consideration is whether fox would rather have disney stock or comcast stock. Thats perhaps a consideration as well. Well continue to watch if that disney fox deal which sounds like the most likely now gets over the line before christmas theres a pair of economic reports on the agenda. The november Producer Price index is out at 8 30 a. M. Eastern followed by the monthly federal budget statement at 2 00 p. M. The fed kicks off twoday policy meeting today. An announcement is due tomorrow afternoon along with the feds Economic Forecast and Janet Yellens News Conference very much expected to have a rate hike priced into the market. Later today, dont miss kelly evans interview with Stan Druckenmiller at 3 00 p. M. On closing bell. Frances unibailrodamco has struck a deal to buy Shopping Mall owner westfield for 15 15. Billion. This would be the biggest ever takeover of an australian company. The news came after the asian markets closed today westfield owns 35 Shopping Centers in the u. S. And the uk boeing is raising its Quarterly Dividend by 20 . The company is launching a new 18 billion stock buyback program. Boeing says the moves are not in response to the republican tax plan which would cut the Corporate Tax rate from 35 to 20 . Boeing up 1. 4 glaxosmithkline says it has generated promising data from the study of a potential treatment of multiple myeloma. It is encouraged by the Response Rate in patients and is ramping up development of the drug we continue to follow the developing story out of Southern California crews are desperately working to contain a string of massive wildfires. Officials say the thomas fire, the largest in the area, has burned more than 231,000 acres of land, thats more than 850 structures being destroyed totalling 48 million in damage. Reporter in the hills of Santa Barbara county, firefighters making a stand. You could feel like youre trying to put out a blowtorch with a squirt gun. Reporter many entering their eighth day of this fire. Hot and tired and still putting everything on the line mave is a mother of three. Married to a firefighter she just learned she wont be home for christmas we tell them mommy and daddy have to be there to help other people so many lives and homes this their hands. You see the flames . Reporter people like the cooneys waiting for firefighters to tell them to flee flames getting closer to Million Dollar mansions. The area home to celebrities like oprah and ellen its coming reporter for now jay peterson is not going anywhere if the wind picks up and charging down out of the canyons, im out of here. Reporter the massive plume of smoke can be seen for miles as helicopters fly a constant rotation dropping water and crews light backfires to stop the spread the idea is to clear a space, make a break, taking out all of this brush that has not burned in more than 40 years. A desperate battle being watched by families wondering what will be left when they come home. Even some families who now fine themselves on the front lines. My house was evacuated. My kids and i and my husband have been living out of our vehicle. Its heartbreaking that was christian dahlgren reporting. Standing off on tax reform, why european leaders have serious concerns with the current bill making its way through congress and Miriam Webster is out with theirword of the year do you think you know what it is tweet us your guesses. Well tell you the answer later. s definitely guessible. But it might not be what first comes to mind. Get your suggestions in. Well discuss later. We know life can be hectic. Thats why at xfinity weve been working hard to simplify your experiences with us. Now with instant text and email updates youll always be up to date. You can easily add premium channels so you dont miss your favorite show. And with just a single word, find all the answers youre looking for. Because getting what you need should be simple, fast, and easy. Download the xfinity my account app or go online today. Welcome back if youre just getting up, were pointing higher by 40 or 50 points just slipped a bit now 39. 97 points on the dow. The nasdaq up 7, s p up 4. Yesterday the nasdaq led the charge up. Oil prices gained just over a percent yesterday, helping energy be the second best performing sector on the s p up again today about a half percent. Carl icahn plans to launch a new board fight at xerox icahn tells the wall street journal that xerox has potential but will go the way of kodak if changes are not made. Verizons ceo has stepped down from general electrics board. In an s. E. C. Filing, he said while hes supportive of ges ceo, john flannery, he no longer has enough time to self on the board adequately Iron Mountain plans to buy the u. S. Operation of Io Data Centers for 1. 3 billion. The deal includes land and buildings in several states. Iron mountain is down 2 this morning. News from overseas european leaders are sounding the alarm on the current u. S. Tax plan making its way through congress a group of European Finance ministers raised the possibility of retaliating against the bill if it promotes trade discrimination joining us from london is Chris Charles of the financial times. Thank you very much for joining us first question in broad terms what is it that finance ministers think is wrong with the u. S. Tax bill . Theres two bills, one in the house of representatives, one in the Senate Different things are wrong with different ones in essence they say that each of the bills going through congress discriminate against for rin companies, and are sort of an element of trade protection by making American Companies or companies that operate in america would pay mrless tax th if companies bought services from overseas. So they say this discriminates, and thats against World Trade Organization rules and some of the trade treaties they have with the u. S. Any way. They say if you break these rules, watch out there will be consequences to that if you go down that route. But please dont go down that route. Theyre trying to head it off before it actually happens the flip side is the fact that the u. S. Is moving away from its global tax position which it kind of was an outlier of, which you could argue the other way around, this is moving back to a more fair model that other countries have something similar to theres no arguments about the big elements of the kax pta plan, but the specific elements, how you classify money that u. S. Companies make on the basis of branding abroad, do they get less u. S. Tax if theyre selling exports than if theyre selling within the u. S. . If theyre exporting and have a lower tax rate, thats deemed to be against treaties that the u. S. Has signed. Its not that the u. S. Is cutting its tax rate, its bringing its Corporate Tax into line with most of the rest of the world. Thats not where the issue is. Its on the specifics where theyre essentially trying to raise money in the u. S. , but raise it off foreign governments. Its one of those things, this is clearly an element where there will be dispute. Theres been disputes on these sorts of issues in the past. Generally its come down on the lines that that sort of aspect in a tax system is not allowed that would have to be tested if the u. S. Goes down this line and the europeans do retaliate, this would be a trade dispute for years. This letter from the eu finance ministers, i wonder how it will go down given already theres thoughts in the u. S. That the eu is being discriminatory against u. S. Companies, whether apple or somebody else on competition grounds. Do we expect this letter to work the initial reaction from the u. S. Treasury was soft we note your concerns type of response behind the scenes theres a lot more anger at what the europeans have done. Its extremely unusual to have this sort of dispute out in public normally this would happen informally, people do this behind the scenes. To have it so public in a letter from five finance ministers does sort of raise tensions it will make it in some ways harder for the u. S. To change its mind that will look as if theyre backing down in a year when the European Commission put a 13 billion surcharge on apple, a u. S. Company, so theres real tensions in the tax transatlantic debate at the moment chris, thanks for joining us. Still ahead, double down on retail, why today, 12 12 is a major shopping day in china. First, here is todays National Weather forecast from bill karins. Good Tuesday Morning to ou. Winter storm warnings are up for Northern New England we have heavy lakeeffect snow that will impact areas off of lake michigan. Heavy snow, gusty winds, new york state through way, new york, and areas of new england expecting snow the storm wont impact much the i95 corridor. You can see the radar, plenty of snow to be found through the northern half of new england snow totals are impressive theres two pieces to the puzzle one is the snow today during areas in upstate new york. The mountains getting hit good and the ski resorts, and snow coming in behind this with that area through Central Michigan from syracuse especially to buffalo, that drive could be difficult. Rest of the country looks fantastic. Thats your Business Travel forecast more Worldwide Exchange when we come back you cant predict the market. But through good times and bad. At t. Rowe price. Weve helped our investors stay confident for over 75 years. Call us or your advisor. T. Rowe price. Invest with confidence. Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley welcome back. Lets get up to speed on the market action. Asia is negative today down 1. 24 money supply data coming out still seeing some credit growth, but less than nominal gdp. Negative session in asia european markets for you positive but not significantly, coming off a day of gains for the ftse 100, slight delines cls for germany and france u. S. Futures, the dow is higher by 43 points, s p by 4 nasdaq by 8 points forget singles day, today 12 12, is a major shopping day in china. Eunice yoon is live in beijing with the details double 12 is like a slimmed down version of double 11, but its still growing and growing fast a lot of traders are estimating that double 12 will rack up sales higher than 15 billion for alibabas site one of the big differences for double 12 this year, theres a Big International push alibaba says 100,000 overseas stores will be taking part as opposed to 70,000 last year. 16 countries will be represented, including the u. S. , canada, germany, and japan the best selling American Brands so far for double 12 and alibaba are p g, their oil of olay shower gels are selling nicely, and yum brands and burger king are selling coupons that are selling out in minutes these are mainly for ham bugg gs hamburgers, and in kfcs case egg tarts. Double 12 tends to focus more on offline events so discounts at stores today we saw huge lines in front of big supermarket chains, such as walmart, as people were waiting to buy some staples, like oil, vegetable oil, as well as salt. The other big difference is that the focus on double 12 seems to be on smaller vendor and smaller brands all day theres been Live Streaming activities where people have been eating food they make online and showcasing it so people can interact with them and ask about it and then buy it, and Womens Clothing the other big way that double 12 is trying to expand overseas, theyve been targeting overseas chinese. These are tourists as well as communities. Theres been discounts offered some of them like 50 off at Shopping Centers, restaurants, hotels, flights, as well as for sightseeing sights, all across the world. A lot of that is focused on china towns in london or new york guys eunice, so many questions the first interesting idea is that it sounds like brickandmortars here should embrace a 12 12 idea the egg tarts, im not sure about. Is that an allday item or a breakfast item mainly a breakfast item, but you can buy it all day depending on where you are in macau, where they got the portuguese egg tart recipe, you can buy it all day its something you generally see in the morning in terms of the overall expansion, alipay is also expanding. So that chinese travelers can use something familiar to them eunice yoon for us live in beijing. Still ahead a round up of the Global Market picture and the top stories. Trending today, netflix is keeping tabs on its customers embarrassing streaming habits. Who the company is calling out on twitter and why stay tuned no matter how the markets change. At t. Rowe price. Our disciplined approach remains. Global markets may be uncertain. But you can feel confident in our investment experience around the world. Call us or your advisor. T. Rowe price. Invest with confidence. The countdown is on. Janet Yellen Janet Yellen is about to kick off her final fed meeting of the year. Bitcoin blues, the cryptocurrency moving lower this morning. And Miriam Webster out with its word of the year well tell you what it is. Its december 12, 2017 youre watching Worldwide Exchange. Good morning a warm welcome back to Worldwide Exchange on cnbc im wilfred frost. Lets get straight to the Global Market picture futures pointing higher, up 38 points on the dow. Up 4 on the s p. Up 6 on the nasdaq yesterday the nasdaq led the three higher we did see the tenyear treasury yield rise yesterday it hit 2. 39. Just came down a bit 2. 387. If we look at oil prices, they were higher yesterday by over 1 that helped energy be the second best performing sector on the s p. Theyre higher today by a half percent. We just lost a bit of the impetus on the oil price this morning. 58. 3 is the price of wti bitcoin futures, lets look at those, they have declined a bit today. But only 4 of course. The takeaway overall of the last 48 hours as those cbo futures launched netnet still higher since sunday night that was a big test for bitcoin. 17, 750 the price for bitcoin. The fed is kicking off its final meeting of the day today joining me is patrick shaffer. Good morning to you. Thanks for having me. So, fed meeting, of course, all eyes on it were certain of a 25 basis point hike yeah, we think well get 25 basis points tomorrow, to 1. 25 to 1. 50 in fed funds the fed forecast versus the market expectation is different. It is pretty different. Well key in a lot on the median point of the dots tomorrow what will be interesting to see is if it goes from three to four expected hikes the market is expecting just under two hikes. Does that change based on the changing leadership at the fed and lots of other subpositions still to be confirmed . For the dots, probably not it will possibly change because governor fisher is no longer a Voting Member this round that could be a change as it relates to the dots for next years change that will not be impacted today. Given wherethe dots are at the moment, where the fed predictions are and the market is, is the risk to the upside for things like the u. S. Dollar . It is to the upside partially because of the tax bill that is expected to pass and corporate repatriation, which could provide a technical boost to the dollar in the shortterm the tax bill as it stands, its interesting last week to see that stealth rally in the u. S. Dollar. The index up a percent six positive days in a row now you think the tax bill will have an instant impact on the dollar or will that take a year or two . It depends upon when the repatriation is enacted, if it is enacted i dont think theres a clear answer to that now it probably would be relatively shortterm thank you very much for joini i us thank you. Comcast is dropping its interest in 21st centurys various assets that were for sale comcast is no longer pursuing a deal for most of the assets 2061of 21st century fox they said last night when a set of assets like 21st century fox becomes available, its our responsibility to evaluate if theres a strategic fit that could benefit our company and shareholders thats what we tried to do were no longer engaged in those assets we never got to the level of engagement to make a definitive offer. Comcasts decision to drop its bid leaves disney as the mai suitor for some of the assets, which includes its movie studio, cable channels and indias star network and a stake in sky disney is reportedly getting closer and closer to inking a deal cnbc reported that one could be announced as soon as this week its been reported that the Murdoch Family prefers a deal with disney because it expects easier antitrust clearance this deal would come on the heels of the Justice Departments lawsuit to block at ts deal to buy time warner thank you very much for that. It will be fascinating to see if disney can finalize a deal for some of those assets before christmas. In political news, its decision day in alabama. Voters are headed to the polls in a highly contested senate race john harwood has the latest for us good morning good morning. We have got a wild race here between doug jones, the democratic candidate, previously not very well known as a political figure, former u. S. Attorney who prosecute ed klansn who executed the Birmingham Church bombing in the 60s democrats have not won a race here since 1992 for the senate hes trying something difficult, but hes running against roy moore, the former judge who was booted off the Alabama Supreme Court twice, is now accused of molesting a 14yearold and many other acts of going after young women in a romantic way. Hes trying to defend turf that is extremely favorable in a special election like this, when its in december n an off year, people are not accustomed to voting at this time and not brace for a regular election, the polls are all over the place depending on the assumptions of who will turn out. The last few polls, fox news had a poll yesterday that showed doug jones up 10 points. That would reflect the efforts of the the benefits of a big multiMillion Dollar turnout Campaign Democrats are putting on you had a poll from Emerson College that showed roy moore 9 points ahead then a poll from Monmouth University showing a tie race. So nobody knows what will happen here the key for doug jones is a heavy africanamerican turnout thats something that you cant count on in a special election like this. Roy moore is trying to hold on to that Republican Base in alabama with the help of donald trump who has cut a get out the vote advertisement for him if this goes the way of jones and the democrats which is a bigger aspect of a loss for the president , the fact that he clearly has backed a sort of controversial candidate that goes on to lose, despite his support or the fact he loses a seat in the senate i dont think it matters much that a defeat for donald trump because he endorsed the guy. This is about the nature of the Republican Party in the trump era, not really about his endorsement. What weve got is a republican senate, which has 52 seats you take one away, everything gets more difficult. Probably wont affect the tax bill, but theyre hoping to dispose of that before the new senator is sworn in. Right now that seat is being occupied by luther strange, a republican this is a loselose situation for republicans, because if they lose the seat, things get harder and it becomes more plausible for democrats to win the senate back in 2018 if they win the seat, republicans have said theyll have an immediate ethics investigation which will divide the party, pitting Mitch Mcconnell against president trump. And it will tawill tar other republicans with the specter of an accused child molester in the senate thats why Mitch Mcconnell has not committed to giving roy Moore Committee assignments or sitting in the weekly luncheons with other senators. Not a good situation you said this will have an impact for what people are thinking for various senate and house races in 2018. How much of an indicator is it its a unique situation. Does it point to whether the republicans could lose some otherwise traditionally safe seats . Well, its not that they could lose otherwise traditionally safe seats though that is possible. The big impact on senate races in 2018 and the potential for flipping the senate is the following there are 52 republican seats if theres only 51, democrats only have to win two well there are two conspicuously republican vulnerable seats already. One of them in nevada. One in Arizona Democrats have a plausible path to winning those two seats while holding the ones theyre defending. That would give them the majority the larger issue is that democrats would run against republicans by saying this is what part of the party represents that is something that other republican senators running in 2018 do not want to have associated with them that is presents the possibility that some seats which we have not thought to be vulnerable, could be more problematic for republicanrepub. Either in a primary which could produce another extreme, unusual candidate like roy moore or in a general election we are kn we know one of the other seats has a former democratic governor running for it john, thank you very much for that looking forward to seeing how this pans out. Those polls are confusing and split. Well have to wait until final results. Coming up, merriamwebsters word of the year is eight letters long what do you think it is . The answer coming up first, another check on the energy mkeart. Oil prices up 0. 6 following a 1 gain yesterday. Were back in a couple minutes prevagen helps your brain an and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. What we do every night is like something out of a strange dream. Except that the next morning. It all makes sense. Fedex powers Global Commerce with vast, farreaching networks. Deep knowledge of industries. And, yes. Maybe a little magic. Welcome back to Worldwide Exchange. Im wilfred frost. Time for our top trending stories. Leslie joins me with all of them merriamwebster announcing feminism as the word of 2017 searches on merriamwebster. Com for the word feminism jumped 70 this year. Feminism has been in the annual top ten for the last few years, including sharing the word of the year honors back in 2015 my first question is what was merriamwebster, which i now know a dictionary. I know, but not the Oxford English dictionariment what do you think the Oxford English dictionary word of the year would be i dont know. But its up 70 , is it their choice of the words that are up that is the word of the year this is not the special relationship between the british and americans in terms of dictionaries annually at christmastime, its the words they added for the first time, which i go quite like thats objective, i guess. I hope feminism is in there currently. Im sure its been in there for a long time. Its a good day to be taylor swift. The singers 2008 album fearless going diamond that means the album sold 10 million copies her newest album reputation being certified triple platinum, so it already sold 3 million copies i dont know this album fearless. Its the love story song. Which is the one before, which is a huge hit. The one with welcome to new york that was after fearless. I dont think i got that one. I can download it. Now you can download it news you can use one of the few people in the world that doesnt have taylor swifts old songs. Im always a bit late to the trend with these things. Thats okay. Elon musk is apparently quite the hats salesman. His Boring Company selling 30,000 hats since launching in october. Theyre selling for 20 each meaning musk brought in 600,000 alone from has the sales he also jokingly tweeted the Boring Company will start selling a branded flame thrower next so, if anybody can fix the retail industry, its elon musk. Is he joking . Will they do a flame thrower in. Must be joking. Why he did a baseball cap. Nobody thought he would do that. He could produce a flame thrower relatively easily and cheaply. It would sell out in minutes. It would. I wonder if you would have to have a gun check for it. Netflix is keeping tabs on how many times its viewers watched its newest original movie and its making fun of them on twitter for it the company revealing in a tweet that 53 of its customers have watched a christmas prince every day for the past 18 days netflix tweeting this stat yesterday who hurt you. I want to see this film i thought you were one of the 53 i should be yesterday in the team we were discussing this, it sounds perfected. Very christmassy, a chick flick, not funny necessarily intentionally but brings humor to the viewer, whether laughing at it or with it and it involves a journalist and a brit does. The perfect combination for you. Leslie, thank you very much another very important story, Worldwide Exchange has a new team member. Sara eisen and her husband, matt, welcomed a baby boy over the weekend. His name, Samuel Harrison levine both mom and baby are very well. We wish them all the very best thats also a new picture. Thats probably my favorite thus far. Congratulations. Come back soon deserved your time off, but dont take forever the countdown is on to the feds time Rate Decision of the year what you ican expect when wex returns. You cant predict the market. But through good times and bad. At t. Rowe price. Weve helped our investors stay confident for over 75 years. Call us or your advisor. T. Rowe price. Invest with confidence. It can detect a threat using ai, and respond 60 times faster. It lets you know where your data lives, down to the very server. It keeps your insights from prying eyes, so theyre used by no one else but you. It. Is. The cloud. The ibm cloud. The cloud thats designed for your data. Ai ready. Secure to the core. The ibm cloud is the cloud for business. Yours. Looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Were approaching the time of the hour and the team is getting ready for squawk box. Joe kernen has whats coming up. As you go through life, you develop a little bit of wisdom whatever you develop with wisdom, you kind of lose because you have no idea whats happening with the young, innovative Silicon Valley types. Unless you work in Business News and you can be educated so you are both wise, young and trendy you know, wise in my own mind you know what i mean all that matters, right . Its all about perception. This stuff i know for a fact i need to listen to our guest host, chama tsh hshgchamath pala number one, hes loaded and has i sight into the things were talking about. Bitcoin. Facebook, everything. Facebook, made some comments that he said were misconstrued about maybe i am wise i thought this that this is the beginning of the end, that we need a mengs g i messaging service for 6yearolds. Amazon, is it a monopoly or not . A lot of things he can speak to. Hes our guest host for a couple hours. We cant help but talk about politics i dont know if well delve into the thing you were talking to john about earlier, we have senator pat toomey, and depending on what happens in alabama, pat toomey could be serving with roy moore so, anything surprise you . Things happen i have seen the tabloids in the uk crazy stuff happens in politics over there you have to admit that, right . Of course through the years particularly the last couple of years henry viii. You know, off with their heads. Thats going a bit far back thats slightly unfair comparison but but that was an interesting time you always talk about how youre so much older, you have so much more history i tonight talk about that youre the one talking about age and wisdom this morning. Joe. When was the magna carta . That was long ago. Dont test me thismorning i hope my old history teacher is not watching we have to leave it there. The countdown to the fed is on policymakers kicking off their final meeting of the year and making a Rate Decision tomorrow at 2 00 p. M. Paul sheerard joins us now we do expect a rate hike tomorrow, i wouldnt fall asleep at the wheel, though but theres concern being expressed about the inflation situation. Thats the dog that has not barked so far. Tomorrows meeting is interesting. Its priced in, very much so. We could see the dollar fall and treasuries react strongly if we didnt get a hike. I think its worth watching that last meeting, but i wouldnt say its a slam dunk. What is the reaction in the bond market tomorrow if we didnt see the hike . I think there would be a surprise but i think the fed doesnt manage Monetary Policy by what the market is expecting. Certainly they guided expectations that direction. Looking at the last minutes, theres quite a bit of soul searching going on about why isnt inflation picking up the fed is taking this view that inflation could be starting to show signs of picking up wage pressure, should come through, taking the view that the labor market is at, close to or exceeding full employment. I think thats got to be weighing on them a bit what if they got that judgment wrong in terms of what you expect next year, where is s p at the moment always have a baseline forecast and worry about what could go wrong around that we are pen scilling in three rate hikes on the premise that you get wage pressure coming through and a pick up in inflation looking at janet yellen before her tenure, unemployment has come down about 2. 5 inflation has hardly budged, around 1. 4, 1. 5 at some point the fed has to see corroborating evidence that this inflation is moving up towards the 2 target. If they dont see that, at some point, you will see them go into a pause. Assuming we get those sort of three or four hikes in the next 12 months or the tax reform bill, this marks a big moment, shifting from monetary stimulus to fiscal policy stimulus what does that mean for the economy does it support it for the next couple of years . Thats an interesting point it depends on how close the economy is to full employment and whether the structure of the economy has changed in some way such that even at full employment youre not getting as much wage pressure as the past but we do seem to be entering this period where theres a bit of inconsistency between monetary and fiscal policy the fed obviously, if it sticks to its knitting here, will react to the fiscal tightening and the effect of that sorry, fiscal stimulus, stimulus not a great word in this country call a spade a spade here, by having to compensate with Monetary Policy. Be interesting to see how the Trump Administration reacts to that we have to leave it there thank you very much. Thank you very much thats it for Worldwide Exchange. A quick look at the futures, up by 41 points on the dow. S p up by 4. The nasdaq is up by 4 points e sd lthnaaqed the charge up higher yesterday thats it for Worldwide Exchange. Squawk box comes up next good morning stocks hitting record highs as the central bank kicks off its final meeting of the year. Comcast is out the media giant dropping its interest in 21st century fox assets that clears the way presumably for disney full details coming up. And raising the red flag on bitcoin. One of the earliest investors in the cryptocurrency is starting to get worried well tell you why on this tuesday, december 12, 2017 squawk box begins now. Live from new york where business never sleeps, this is squawk box. Good morning, everybody. 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. Yesterday you saw all averages closing at record levels once again. Threeday winning streaks for the dow and the s p 500. The nasdaq with its fourth day in a row of gains. This morning green arrows once again. Dow futures indicated up by 50 points above fair value. The s p would open up by 5 points higher. The nasdaq up by 5 points. Lets look at what happened overnight in asia. You will see that the nikkei was down down by a third of a percentage point. Also weaknesses for the hang seng, down