Lets see how things did overnight in asia. Asia was leading the declines yesterday. This time a little different story. Nikkei closed up by 1. 5 hang seng was up by 0. 6 shanghai was flat. In europe, at least at this early trading hour, there are green arrows across the board. Barely hanging on for the ftse the dax and cac each up by better than 0. 6 looking at crude oil prices, at least right now, crude oil looks like its down 7 cents 55. 26. Couple big stories were watching, mattel has rejected a takeover approach from rival hasbro reuters reporting that mattel believes the offer undervalues the company and doesnt take into account the potential for regulators to rejected the deal on antitrust grounds reports saying mattels new ceo who took over in february may be trying to drive a harder bargain in talks with hasbro the company cut its fullyear revenue outlook. You are looking at both of those stocks now time inc is reportedly restarting talks to sell itself to publisher and broadcaster Meredith Corporation the deal backed by charles and david koch the Koch Brothers are part of this their plan to invest more than 5 500 million into the combined company as part of this transaction it would keep the Company Investment grade Big Questions about whether they will reach a deal. Meredith tried three times before and with the Koch Brothers involved would it change the appearance of meredith time. What are the Koch Brothers wanting in all of this most things they have historically invested in in this historically would be politically related. The reason time has to come back to this is because they are in more and more dire straits. Time is in terrible trouble onnal wall stre the wall st, 8 30 a. M. Come jobless claims. Industrial production at 9 15. The monthly home builder survey at 10 00 Lael Brainard and rob kaplan are speaking today as well you have to watch for them walmart and best buy reporting before the close before the opening bell after the close, we will hear from gap and williamssonoma big day in washington today. The house is set to vote on its tax bill today but there is trouble brewing in the senate with a key republican voicing opposition to the bill ylan mui joins us now with more. Reporter republicans are a man down in the senate wisconsins ron johnson is the first republican to come out against the tax bill hes worried the benefits for corporations are bigger than the tax breaks for pass throughs he says theyre the engine of the economy and should not be left behind. Johnson is not the only one feeling uneasy senator Susan Collins of maine was on meet the press last night. She said she was concerned about getting rid of the individual mandate as part of tax reform. I doesnt think its a good idea from a political or a policy perspective healthcare is is such a complex issue. To pull one section out of the Affordable Care act without any kind of replacements such as an auto enrollment, bill cassidy suggested earlier this year, and put it into a complex tax bill does not make sense. Theres a different story happening in the maek makers wa bill this afternoon and President Trump will head to capitol hill to push this over the finish line. There are a few local holdouts, but right now it looks like the house has the votes to pass this bill theres a risk of deja vu here with the agenda moving forward in the house, and then stalling out in the senate. Weve heard this story before. Back over to you thank you very much well watch this closely well be talking with senator ron johnson at 7 30 a. M. Eastern time on squawk box. His big concern is that it gives too much to big corporations and not enough to Small Businesses its a passthrough issue i dont think he thinks it goes far enough for the passthroughs. Youre not sure of the whole rational for the passthroughs ron johnson is a conservative. I know him pretty well had some off when hes not just interviewed, i had some relationship with him. He doesnt seem like the guy who is going to hes really frustrated. Listening to his comments yesterday, he was like ive been talking for months about this. It sounds like a cry for help he wants action. To me, well talk to him, but i think he wants to get to somewhere i would agree but im trying to figure out how he does that without up ending the bill you cant say that about mccain, murkowski or flake im i think it would be complicated for them to get to yes, because it would require massive restructuring of the bill unless you raise the Corporate Tax rate youre talking about 6 600 billion. Hes got his subjective viewpoint of what fair is. Right if everybody is going to have a subjective viewpoint thats a republican in the house or senate, its never going to get done if you have a subjective viewpoint of whats fair and not fair so in ron johnsons case, he thinks the big corporations are benefitting too much, not whether growth comes out of the big corporations thats why in the past you always needed to do something bipartisan because so many people have different views on this. If you try to do it with 52 and can only lose two votes, it gets problematic. You will never have a bipartisan bill where if you are lowering taxes democrats will support or if youre raising taxes republicans will support it you are never going to get that. I mean, its youre right. Everybody has their own obamacare its a pipe dream thinking well get back to thing like that. Look at bamacare, there wasnt a single 17 of that, not a single republican vote youre not going to do tax cuts bipartisan then you cant lose more than two votes. Ron not being part of it i think he comes around this is also a guy that was down in the polls he rode trumps coattails, and hes in the same state as paul ryan i think its a cry for help. Its a cry for help. By pushing the Obamacare Repeal end of this, how much more complicated does that make it a lot but i thought when we talked yesterday, i watched a lot yesterday, we had paul ryan on, he said we already we want that the house does, but not the senate the senate is putting it in their bill but they couldnt pass it before but they supposedly to do that, they splus thougmust have they turned someone. Yesterday i watched kevin brady, he said, no i watched the interview. You didnt know what was in the bill, he was talking about medical expenses he says they dont take it away in the senate bill that was in the house bill. Thats what senator thune was on earlier brady came on afterwards, and he was saying it wont be in our bill, but we definitely in reconciliation, if its in the senate bill, we voted on that already in the house were for that well do that. Susan collins wont. Lets get to the broader markets. You know, we just spent a lot of time talking about tax reform. Both of these guys, doug coate from voya and mark freeman from westwood holding, both of you said the movements in the market right now, the sort of tough advances that were seeing from what we were getting every month, its because of the uncertainty over tax reform. Both of you think thats causing the stall, right true. But its much to do about washington look at euro sentiment surging to a 17year high. Chinas retail sales, 10 . Their capex up 7 did you not say they asked you whats pressuring the markets lately the first thing you said was uncertainty about tax cuts did you say that thats a oneday thing. A oneday thing so manufacturing, 30year high right fundamentals drive markets. Despite the worse impact of politicians and irrational thinking if it becomes clear this is a no go, you think its a oneday thing . No, because the fundamental back drop of the my is so strong so you think if tax reform doesnt get done, thats a oneday phenomenon and the mar ketd kee market keeps going higher . I do. I would take the other side of that. You can look at what forward earnings estimates are, theyre incorporating forward forward okay. Forward earning estimates are incorporating some form of tax reform i think that doesnt come through, that gets backed out of the market okay. So thats one thing to watch yesterday bullard said dont raise. You think theyre still raising, dont you . Yes in december, i think we get another rate increase. The real question is what do they do going into next year ultimately we need to reconcile the what the fed has projected what they proceed the path to be versus Market Expectations which are much lower. To the degree how that gets reconciled will be a key issue if the fed was only going to raise, if there was an inflation on the horizon, would they be raising . Why are they raising theyre i think this notion of a new normal needs to be debunked. The thing thats holding back growth, reflation, productivity, is that we dont have pro business policies. We get that i think the fed i thought you didnt care about what they did. I think the fed is standing in the way because any time the market goes down, the fed comes in, all the Central Banks come in i call that moral hazard they are in the way of pro growth economic reform i do want taxes, but we have a global synchronized expansion. That is far more important i would like tax cuts . Yes. But why is productivity all of a sudden 3 . Why is gdp 3 . We have a pro growth administration that is implementing deregulation and at least wants to do tax cuts where is inflation . Little below 2 but why with 4 unemployment, with the global synchronized recovery, with everything in the past that would have gotten you thinking it should be much higher. Why theres a laundry list of issues apple x or the ten i like x. Other people call it ten all these things. Its because we havent let capitalism do what it does, inflation will go up yesterdays number was strong. It was reversal of a negative trend. Inflation popped up. Threemonth trend on inflation was positive that was a good sign why . Because productivity is up because gdp is up. Pro growth Economic Policy is working. That means the fed can continue to raise. Is that okay because of the economy being able to withstand that a degree. Thats whats important. We are talking about real growth from an earnings stand point nominal growth is important. Thats where the inflation comes in some inflation is actually a very good thing. If you look historically, the highest market multiples when inflation runs between 2 , 3 . For me, going up 1. 5, 2. 5, i dont view that as a headwind. Thats reflation, aka good inflation. Exactly right okay. All right. All right. We will be hearing a lot we are hearing a lot of similar things with a lot of the people we have on thats that everything is justified. Because the earnings were there. Its a Global Economy we keep hearing that again and again. I wonder how that becomes less wonder how our belief system is shattered at some point where we look back and say why whether we all saying that when this was so obvious i dont know what the obvious thing is we have an administration that is at least trying. I believe they get tax cuts done the next week or next year i dont care the biggest thing i want is full expensing for the next five years. That might be better than a tax cut. The last thing, in terms of all those factors t comes back to the profit cycle. The market and economy will follow the profit cycle. Thats long in the tooth, but doesnt die of old age thats what you watch. We will get over to leslie picker some corporate news. Nelson peltz battle for the board seat at p g took a dramatic first the latest recount swinging the vote to nelson peltz pote potentially granting him a board seat p g said they had won, but in this recount nelson peltz won by 43,000 votes so what happens next you guys know, we have talked about it on squawk before, its the snakepit. Thats the process where the two sides will huddal in a room and investigate each wrote p gs Shareholder Base is 40 retail and they vote more with paper ballots than electronically in the snakepit they will look at each contested ballots to make sure its valid p g can choose to challenge the result if it wants the company spent 35 million to keep peltz off the board other Share Holders seem to like the idea of him joining. P g stock jumped about 3 in the after market yesterday when the latest recount results were announced. Leslie, i dont mean to have a real commentary on this, except to say i think its almost embarrassing for p g at this point for it to be this razor thin, to go through the motions, and then continue, if they do continue, as you describe this snakepit scenario, i dont understand whats happening are there that many Share Holders on the other side that feel as vociferous clearly as management does about this its unclear. Typically retail tends to vote more with management if you have 40 of shares outstanding held by Retail Investors, i received email from a lot of Retail Investors from this proxy fight that seem adamant that nelson peltz should not be on the board. That said you have a significant amount of Shareholder Base who supports him no matter which way you slice the vote count from p gs perspective it couldnt hurt to put him on the board. If they do successfully keep him off, its still a close vote, then they have a mandate to make the p g stock price soar or risk very, very unhappy shareholders. When will we know p g said the final tally will be in weeks to come. I was told it should be before christmas time with this one, you never know. What do they say the cost will be to continue the counting the cost to continue counting is not that much, about the six figures. Oh, okay. Just six figures but six figures relative to the 35 million we have already spent to keep peltz off the board, just pennies. Weeks with egg on your face exactly who decided that to go out and say we won when it was obviously so close leslie can speak to that. You did the interview. Was ivs associates, an independent inspector of elections. They said you won, they told p g you won. They did. They said preliminary. Who are they employed by . Theyre their own company who pays the bill . The company does, Procter Gamble bingo looks bad looks terrible. Yeah. Dont listen to peltz. Yeah hes going to say it was close we got this. Then it turns out bad a painting by da vinci breaking an alltime art auction record last night. Well tell you how high the bidding went after this break. Your brain is an amazing thing. But as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Driving it home. Its not about you. Talking about my hair color my world paint it black the lighting the lighting were working on it. I swear. Im looking at it now in the chairs it was okay on the set, anyone that doesnt think its dyed doesnt have eyes i will have to bdye it so it doesnt look dyed. Which is not fair. You had to do thatbefore i dont wanted to have to dye it so that it a painting by a painting by theres bugs in a new studio just takes time to get used to things. I dont have black hair a painting by Leonardo Da Vinci color my world. Cry me a river. Over here its different. Its the i think its when its dark out. Leonardo da vinci reportedly painted this, set a new record Salvator Mundi paint sold for 450. 3 million at christys auction. Cant think of anything that has gone for anywhere near that. Recently rediscovered work is one of less than 20 da vinci paintings that are known to exist. It was one of the last ones that was left in private hands. It was purchased by an unidentified buyer bidding via telephone. Following a bidding war that lasted nearly 20 minutes who do we think it is how could we ever know . We may find out the most expensive work of art ever told. Experts say it was painted in the same time frame as the mona lisa similar sort of feeling when you look at it the previous owner bought it for 1 127 million our art guest yesterday thought it could go for less they had to have it insured and promise that it would go for at least 1 100 million christys did a brilliant job of marketing this. What does that mean . That means theres a lot of money in the world if it goes for 450 million, doesnt that say things are choppy its hard to buy something, if you have a lot of money, its hard to buy something not especially with zero Interest Rates. Poor babies big diamonds. People like buying big diamonds. If you have a lot of money who wants to bet the other conversation is taxes. Who wants to bet whoever did buy this will put this in a museum somewhere, tax shelter museums, in a little town somewhere in the middle of nowhere, you it becomes a not for profit if you leave it there for a certain amount of time, it changes the tax scheme, then you can take it back hmm it changes it permanently even though its there for a little while i doesnt know enough about how they do it you have looked into this i read about it its a huge in the art world, its a huge thing. Could i do it with an 800 painting you could i dont know if its worth your while. Must be a pretty small town we talked about inflation and how it seems to be not showing up anywhere. Thats no exception when it comes to thanksgiving. Thanksgiving dinner is getting cheaper thisyear the cost of a traditional meal for ten people to sit down is 75 cents cheaper than last year thats a decline of 1. 5 it falls to an average of 49. 12 for those ten people to eat. Thats the lowest price in five years this years decline was led by falling turkey prices which fell 36 krens from last year its not turkey thats lower decline in bread rolls, milk, Sweet Potatoes whip cream went up, cranberries went up. We can still feel good about this, right . Pilgrims, you know, they did some mean things you sure we can keep doing thanksgiving politically correct thats what i mean. Will you be cutting a i can see you with a big thing of cabbage. As long as youre wearing your special pants. Im not wearing anything. Im just going to be under the table. So youre expecting a big group. Its a glass table rnd, too big head of cabbage turkey is cheaper i know, b