the dax in germany up by .2. the cac in france is up by a quarter percentage point the ftse is flat crude oil ended down by about 19 cents for the week last week this morning it's down another 17 cents to 56.38. a couple big stories we're watching geopolitics. german's chancellor angela merkel said efforts to form a coalition government has failed. merkel has been working for more than a month to work with the, quote, free democrats and the greens after losing ground to a far right party in the september election if a coalition cannot be formed merkel could form a minority government or call for a new election you're looking at the euro down. big questions about what's going to happen in that country. also, in corporate news, marvell technology is reportedly nearing a deal to buy chip maker cavium for $6 billion. it's going to create a bigger competitor for chip makers like intel and broadcom it would be comprised of 50% cash and 50% stock valuing cavium at $80 per share. possible deal was first reported in early november. talking about chips, qualecomm moving one little step closer to completing the $30 billion deal. reuters said it's going to win approval from japan. it will get the green light from regulators before the end of the year buying nxp could help qualcomm fend off the hostile $1.3 billion deal from broadcom some stocks to watch today alibaba investing $2.9 billion in china's top grocer sun art retail group is the name the deal gives alibaba more than a 36% steake making them the second largest shareholder they have stores across china. obviously the comparisons are sim nl to make -- simple to make here isn't that like a whole foods or something? >> right. >> shares of toshiba fell nearly 6% the company announcing it's going to raise $5.4 billion. the sale amounts to half the company's current market value boost toshiba's assets back above its liabilities. help it avoid being delisted in japan. boeing has secured an order for 75 737 max jets from avalon with an option for 20 more. the deal could be worth more than up to $11 billion list price avalon is an aircraft leased in dublin owned by china. back here in the united states, a showdown over tax reform administration officials speaking out on the sunday shows. eamon javers showing us more of a roundup. >> omb director mic mulvaney was on "meet the press." he said a number of things about tax reform, including admitting that the administration is not really happy here that some of these provisions are going to have to sunset over the period of ten years that he said is due to the byzantine senate rules here's what he said yesterday. >> we're using reconciliation so we only need 50 votes in the senate instead of 60 in order to do that certain proposals can have certain economic impact. one of the ways to gain the system are the bush tax cuts what we tell folks is this if it's good policy, it will become permanent if it's bad policy, it will become temporary that's just the way it is. this is done more to force the -- shoehorn the bill into the rules because we think it's good policy. >> mick mulvaney said the administration is not necessarily opposedto the idea of removing the obamacare mandate repeal from this bill when they all -- when all is said and done in the negotiations between the house and the senate here. speaking of mick mulvaney, we are still expecting him to be named at some point to run the cfpb, the consumer financial protection bureau, at least on a temporary basis while he still holds the omb job. that announcement not fully baked yet. we're waiting to see whether that will be announced all of that setting up a battle in the senate over the tax cuts. the president seems to know something that the rest of us don't know yesterday in a tweet, take a look at this, attacking senator jeff flake, a republican of arizona. republican jeff flake who is unelectable was caught purposefully on mike saying bad things about your favorite president. he'll be a no on tax cuts because his political career anyway is toast. so the question is does the president know that jeff flake will be a no he hasn't said that necessarily publicly, but does the president know something about the way flake is going to vote if he does and if flake is a no, that makes passage in the senate just that much more complicated because you remember they can only lose two votes in the senate north in order to pass i. >> although a lot of the language, murkowski has said -- >> gang of six. >> has some issues she's not going to necessarily vote against it. susan collins wants to see them raise the corporate rate from 22% to 20 so you can keep in some of the state and local deductions it's complicated to win some of those people back in i think we'll see. >> gang of 6 gang of 6, eamon we know who they are i saw the rogue's gallery. >> this is why it's fun to be a united states senator. your vote is really powerful. >> yes. >> they enjoy playing footsy with playing a no vote a lot of this is posturing and negotiating tactic traditionally senators will do this and kind of stall and hold out, hold out. you never want to be the first to commit. if you're the last to commit you have a lot more sway the question though is how many of these senators are dealing with fundamental oppositions. >> johnson i think is a high lift he wants to get to yes but what johnson wants is a high lift are you going to bring down the pass throughs to 20% are you going to bring up other corporate taxes so there's no that inequity between the two? >> right that's something he said is core to him they say they are willing to negotiate with johnson they say ultimately they can bring him on board >> you can't bring down pass throughs without it really jacking up the price of what this is going to cost. you can't do that within the senate reconciliation. it seems like a fix to raise the corporate taxes which is what susan collins want >> then you run up against another nonnegotiable, right the president has said -- >> he's not going to sign it >> i think he would pass anything they put on his desk if they give him 22%. >> i think you're right. he's also posturing. everybody is doing a lot of posturing ahead of this. he has said 20% is his absolute limit. he wanted 15%. he's going to settle with 20 because of the way the math works out. would he go higher did the senate and house reconcile, pass a bill that's higher than 20%? my guess is the same as yours, becky. he would he doesn't want to admit that. >> what's the math if you go down -- >> you hate the pass through thing. >> i don't like the pass through. >> i know you're -- you're the opposite of ron johnson but you're going to argue from both sides. >> no, i'm not i'm suggesting if you lower the pass through down to 20, you have to -- >> it would cost $700 billion to do that. >> right that's not even 23%. >> maybe -- >> it would cost you 700 to $900 billion. >> you have to get to 24, 25%. >> that's where you've wanted to be all along. >> 28. >> to make up for it. >> i'm much more -- >> i would like to -- >> i'm much more worried about her, andrew flake. even corker. >> flake has no reasons -- >> yeah. i'm not worried about johnson. i don't even know about murkowski. what are they doing, building a big bridge. >> eamon, alaska, there is very specific stuff in the senate bill for alaska. >> i don't remember the specifics on that. >> something about oil revenue. >> if you raise the comp rate revenue to a certain point, at some point the average company, they're paying an effective rate much lower than the real tax rate at some point do you get the average effective rate the companies are paying anyway and you're not really effectively lower? >> probably not at 22%. >> no. at some point it ticks over. >> i would say -- to me, 23 -- if you can get to 23% after that then you get into -- 23, 24, then it makes a lot of sense >> above 23 or 24? >> well then you get into the issue that you're talking about. >> you're going to be paying 55. >> then you're not moving the needle at all. >> new york and new jersey and everything else. >> 56, 55. >> soak the rich. >> it is that's why i love it this is big tax give away for the rich >> big tax break for the ultra ultra rich. >> i can't wait for that. >> i can't give somebody more than $14,000 a year and not pay taxes on it. >> let your heirs pay the capital gains appreciation is the way you can do it. i don't- >> that would make sense. >> my heirs are on their own, joe. >> they have to fend for themselves they get nothing. >> pay my debts. >> they get nothing. exactly. >> yeah. what's his name in "caddyshack." spaulding. thank you. >> we should note it may be a holiday shortened week -- not really shortened, it has a little space in the middle but there's still plenty of data on the wall street agenda. tomorrow look at home sales. durable goods, consumer sentiment and the minutes from last month's fed meeting markets closed of course on thanksgiving and are only open for a half day on friday but that won't keep us away. we will be here on friday talking about it. >> speak for yourself. >> yeah, the two of us will be here. >> becky and i will be here. >> speak for yourself. >> sell celebrating thanksgiving loyal viewers with us who wake up because they want toknow. >> because you're going to be able to mail it in nothing is going on. you mail it in. >> those days are hard. >> you don't blow a vacation day. >> i like being off. >> it's a good day to be home. day with your family. >> i don't like thursday during thanksgiving just having to go to bed at 8 or 8:30. oh, my gosh, you have to get up the next day >> exactly i'm happy. >> for me, the tryptophan from the turkey kicks in early and i go straight to bed. >> at 6:00. >> exactly >> tofu turkey has tryptophan? you're not really killing a living thing and eating it, are you, on -- are you doing that? you're having -- honestly? >> how do you think -- who do you think the sorkin -- >> i thought it was a molded comes out of a mold of tofu turkey. >> do you think everyone on the island of manhattan -- >> not everyone. >> not everyone? just you >> is this me? >> no, it's me now it's me. we skipped over some other things we skipped over you. >> kale. tofu turkey. >> there are a dozen companies. >> watermelon juice. >> reporting earnings this week. watermelon juice is good notable names including lowe's, campbell's soup, h.p. ink and hewlett-packard. back to tofu turkey. >> yuck. like the mcribs. >> chicken nuggets. >> it's like pig in a blender and then you put it in the -- get back the snout, everything. >> i won't say what i want to -- >> snout, tail, hooves makes mcdonald's almost as bad as i was talking about ronald and the scary clown. we love mcdonald's you can't be mad let's get back to the broader markets, joining us ed campbell, qma. john stolfus we need to buy a vowel that's a lot of consonants chief investment strategist at oppenheimer. ed, you're pretty happy. you're pretty -- you think things are okay. you've got more concerns you've got more concerns you're worried maybe that this earnings run might be over now there might be a little consolidation? you know what else he's worried about? as much as you know about powell, whenever there's a new guy, the market doesn't know everything so there's a period of trepidation. >> i'm not ebulient. >> i'm going to check that out i don't know what the hell yo you're saying. >> it's thanksgiving. >> pecul peculiar way of saying. >> we've just about completed earnings season for q3 we still hold our target of 26.50 for the end of the year. we think we have a chance to reach it we don't see in the market, we think this is very positive, animal spirits we don't see any irrational exuberance we don't see any worry people are hesitating. we were meeting with private investors in west hampton and evan sto evanston, illinois and scottsdale and denver. no one was just so positive on what was happening everybody wanted to ask me is there an expiredate on this bull market it's all about revenues and earnings and the economy it's fundamentals that are driving this the political side show will have an effect if we do get a tax reform and we wind up paying more taxes instead of less taxes. >> you're wondering about tax reform >> i'm concerned about it. >> would you say 50% likelihood, 80%? >> the number that i've seen that i've come closest to agree with and i'm concerned about that is even a 55% chance of it passing close to the way it looks. i'm sort of -- >> you're not as concerned of it passing as much as concerned about what's in it >> i'm concerned about what's in it and i think we're more than likely to get some kind of a tax cut ahead of a year that really is -- next year we've got interim or mid-term elections and politicians both sides of the aisle have been told by their constituencies don't just stand there, do something. so some kind of a tax cut. perhaps something particularly for corporations and much more modest and fair than what this looks like coming in may come out of it. not until the first quarter. i think the points you all were making initially there's groups of people who will be taxed at much higher levels than currently who are already being taxed out. and then on top of it you have what i keep hearing is that people who are making a little more than $59,000 a year are likely to wind up paying more taxes. >> it tankered out in the senate bill because so many sunset. >> once you get them rolling out. plus, it's costly in terms of the deficits it's once again my question is -- and i think it will be by the constituencies who are these guys and what's the reality marker >> ed, you feel better than that one of the websites has a story about goldman. if you think 2017 was great wait until you see 2018 rip roaring economy. good stock market. >> if you go back to some of the things that john said, too, i mean, investors are still skeptical, you know, i see that more as a positive than a negative. >> yes. >> if we go back to, you know, john templeton's famous quote, bull markets are born in pessimism, grow on skepticism, die in euphoria, you know, i think we're in the optimism stage. i still think this bull market still has at least a couple of years left when i look around i see strong economic growth, right we've gotten a couple of quarters of 3% plus if you look at gdp now for q4. that's currently tracking at 3.4% if we look at the composition of total return that we had for 2017, most of it has been driven by earnings growth we're going to get 12 to 13% earnings growth for 2017 just a little bit in terms of multiple expansion i think the multiple has been remarkably stable so far this year i think for 2018 we're looking for something similar, you know, another year of maybe low to double digit earnings -- low double digit total returns i should say >> i'm not totally disagreeing, but time will tell what's with the apple watch? keep the apple watch what's with the apple watch? >> it's new. >> what's with the apple watch what's with it >> i'm wearing it today. >> i see that. >> that's why i'm asking you eight times. >> my wife -- my wife and henry and max and sydney gave me this as a present >> christmas >> recently. >> early present. >> what kind of present? >> see, this is the watch. you can see what's going on. 6:18, 37 degrees i just got a tweet on it right now. you can see the tweet. >> that's horrific you get tweets you're alerted to tweets. >> alerted to tweets. >> can you block them like dick tracy blocked this jerk? >> you could i actually don't know about that. >> so you're wearing the apple watch? >> i'm wearing it. >> you don't think i'll notice it. >> i got it a week and a half ago. >> i was five months pregnant sitting next to you, months and months -- >> six months pregnant before i knew but i was afraid to say it. you never know you never know. >> wise man. it's better to wait until the baby is already delivered. i've done that, too. >> that's bad, too no, i already had the -- that's not good. >> i think you'd like this >> really. >> what was the occasion for the gift >> it was a surprise it was in that realm during that whole week of lots of work. wanted to be nice. >> cheer me up. >> that's nice. >> do you like it or no? >> i'm digging it. tim, i'm liking it. >> did it tell you to -- that you've got to stand up. >> it tells you to stand up. it even has a thing called breathe which i've been doing. >> it reminds you to breathe. >> good thing you remember. >> no, it's an app. >> chew gum. >> one minute meditation app >> doesn't have that great activity and great activity tracker tells you your heart rate and all of that stuff. >> good. >> i'm an early fan. i'll tell you after a while. >> okay. >> i haven't figured out all the things to do we've got to go. when we come back, a controversial provision in the tax bill could eliminate big tax savings for individual investors. we have details straight ahead later we'll talk to kevin hassle, chairman of president obama's council of economic advisors >> is he president again i think we should do that meeting tomorrow. well wait. what did you think about her? it's definitely a new idea, but there's no business track record. well, have you seen her work? no. is it good? good? at cognizant, we're helping today's leading banks make better lending decisions with new sources of data- so, multiply that by her followers, speaking engagements, work experience... credit history. that more accurately assess a business' chances of success. this is a good investment. she's a good investment. get ready, because we're helping leading companies see it- and see it through-with digital. senate tax plan has a definite plan there's a change that's going to be happening to individual investors to prevent them from minimizing taxes when they sell stocks it's going to be this fifo, first in first out i think it's lifo. first in first out so the shares that you hold, if you decide to sell some stock and holding you've been building over many years, you would have to sell the very first ones that went in that you probably have the largest gains on. >> the reason is that -- >> they want you to have to pay taxes on it. >> they want you to -- what they really want to do is make sure you're not going short term trading and think they have losses to offset gains last in first out, the stuff you just bought is going to not have appreciated as much and maybe even be down but they're letting mutual funds do it. >> they're not hurting -- >> do you have a strong feeling? >> my eyes glazed over. >> i think this is a huge issue. if you've been building a stake over years and years like comcast and ge. >> let mutual funds do the average price. >> so complicated -- >> by the way, if you're a betterment or one of these -- one of these robo advisers who are always trying to do all of these tax losses. >> no reason for you to exist anymore. >> you can't do it >> but also a lot of times with charity people give the lifo stock to charity and they want to do it that way so they can take a -- >> right >> look, i just started thinking about it if you've been building up a stake for 20 or 30 years, you're an individual investor, it's one more reason you're going to have a tougher time >> if you bought some recently. >> if you bought some recently if you're an employee, you bought it probably every year. >> i don't know what the axe on this story is to get excited about. i don't know if it's the mutual fund. >> i think mutual fund getting different treatment is right i think what it is is a larger sign of all of these changes in the tax bill that we don't realize are going to be things that we affect. >> barack obama is no longer president, right >> no longer president doesn't work for him there was a little bit of confusion. >> there was let me just poll you. >> my own confusion. californians that was a wishful thing. give you a choice of three, barack is still president, hillary got elected president. >> right. >> that's your second choice of who's in now besides trump three, bernie, didn't get screwed out of the nomination and became president >> do you know what the best part of this question is that there's a commercial break right now. >> if you had to pick are they tied any of them. any of the above. >> i don't pick these things. >> weird al. any of the above. >> jankovic? i can pick weird al? >> he's your fourth. i'm going with weird al. >> or pee wee. >> coming up, could be a big week for deals we aren't talking retail media analyst will power, not kidding, joins us next to talk about the feeding frenzy over fox with disney, comcast, sony and verizon all reportedly interested from the fox side this morning what happened, rupert? what's the deal, man he's a builder. >> he gets a good premium in the stock for a while. >> i'm picking rupert. >> rupert. >> i'm picking rupert or mayor bloomberg. >> oh, god as we head to break, look at last week's staupd winners and losers opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. us. it's what this country is made of. but right now, our bond is fraying. how do we get back to "us"? the y fills the gaps. and bridges our divides. donate to your local y today. because where there's a y, there's an us. i know when i hand them the it's gonna be scary.car but i also know that we're gonna have usaa insurance for both my boys. it's something that they're not even gonna have to think of. it's just gonna be in the family. we're the tenneys and we're usaa members for life. every day, on every street, in every town, across america. small businesses show their love to you. with some friendly advice, a genuine smile and a warm welcome they make your town... well, your town. that's why american express is proud to be the founding partner of small business saturday. a day where you get to return that love, because shopping small makes a big difference. so, this saturday get up, get out, and shop small. flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. welcome back you're watching "squawk box. live from the nasdaq market site in times square. good morning, u.s. equity futures at this hour are indicated a little bit lower on the session so far premarket session down about 27 points or so down 4 on the s&p down 7 on the nasdaq president just happened to see this tweeting if you thought the nfl controversy was over, it's not. at least as far as the president's concerned. marshawn lynch of the oakland raiders stands for the mexican anthem and sits down to boos for our national anthem. great disrespect next time the nfl should suspect him for the remainder of the season attendance and ratings way down. it was kind of a -- they love football down in mexico. the game was in mexico city. i was watching and i'm telling you, tom brady, because i had just watched the giants game. >> right. >> that was a -- they beat kansas city in overtime. i was there. but -- >> oh, were you? >> yeah, i was they beat in overtime but it wasn't the greatest entertainment product while i was there. i'll just tell you that. the giants look awful. and kansas city didn't look much better watching brady just dissect, i mean, he really is good. i don't know about their defense, the patriots. yeah, he was sitting down for one guy on the giants was kneeling yesterday and a couple of guys for the chiefs stayed in the tunnel i read before they came out. >> right >> it's still happening. i don't know what finally happened let's talk about the weekend box office "justice league" taking the top spot garnering lower than expected $96 million. >> they were expecting 110 million. >> really? >> they want to be on track to hit $1 billion. >> ben affleck, batman that could cost them at least 10 or 20 million. in u.s. sales its global opening, that's what we're talking about. weekend in total was 281 that's the weak end debut for a d.c. unverse one film that did have a heroic showing "wonder. julia roberts with a child with a facial deformity opened with $27.1 million in north america. years ago eric stoltz -- >> that was the one with cher, right? >> yeah. right. also the weinstein company actually getting a surprise bidder it's like the u.s. small business administration submitting an offer to acquire the company. she says she hopes to be the executive chair woman of a majority female board heading the weinstein company which would be renamed contreras sweet saying she wants to set up a fund for victims of harvey weinstein. >> i don't understand that every other person who's looked at this company, it's real hard. i don't know how that deal would be structured. with interests swirling around the pieces of 21st century fox empire, i want to talk about the complications joining us is will power, senior research analyst at baird. so et cetera wilet's talk aboutn on with fox. let's talk about comcast, verizon and disney let's walk through each, will. >> i'll tell you what. no merger monday announcement yet. there's clearly a whirlwind. you have the bankers and attorneys making money on some of the negotiations. >> not yet all respect. the lawyers get paid by the hour >> look, you know, i think, you know, where there's smoke, there's fire there's no question there's negotiations going on. i think there's interest when you step back you look at the interview your david favor had with john malone he burned amazon as the death star impacting all of these industries one of those is media. whether you look at amazon, facebook, google, netflix. they're really forcing the long standing cohorts in this industry whether it's the traditional content providers. they're forcing them to gain more scale and differentiation that's what's pushing the companies to come together to battle with the new generation of media companies. >> let's start here. of those three that i just discussed, comcast, verizon and disney, what do you think makes the best sense from a combination standpoint >> yeah. well, no, look, it's a good question i think it could make sense candidly for any of them i think as you look at disney and comcast, both of them already participate in the content space so this would provide a nice opportunity to gain additional scale, new original content and so i think it makes a lot of sense, you know, for both of those. >> then let's talk about the regulatory piece of this, which is to say we're all awaiting whether the department of justice is going to sue to block the at&t/time warner transaction. if they do, what does that portend for a potential deal with a 21st century fox? >> i think it makes it much more difficult without question i think it would be quite surprising if you actually saw an announcement prior to getting more clarity from the d.o.j. with respect to at&t/time warner i think, you know, no question we probably need discussions. >> why do you need the see the lawsuit? if you know in five or six months -- do you need to wait for the lawsuit to be filed or do you actually need to see how it plays out in which case we'll be having this conversation again in six months. >> i think if there's a lawsuit underway it's going to make it more problematic for another announcement to actually get hashed out and announced look, the reality is i think most of us think that the at&t/time warner deal should be able to get -- well, we'll see if it gets approved or not this he have a decent chance if it goes in that direction in court. these companies have to be somewhat gun shy it wasn't long ago that comcast tried to buy time warner. >> time warner cable, correct. >> i would contend to you that all three of these companies that are looking at fox and fox as well rather than let at&t and time warner settle with the government on this deal, that i think in a way they'd be better off in a way and they want them to bring the case, in part because they think that the government will lose and that that would offer them a bigger opportunity. >> well, yeah, that's a fair argument there could definitely be some different gamesmanship underway here i think when all is said and done, you know, i think they'd like to see greater clarity rather than, you know, test that and, you know, commit resources, time spent on the merger, et cetera but we'll see. there's not perfect clarity. >> what's the takeout price? what's the fair takeout price right now for fox? >> the problem, andrew, is i don't have a great answer for that because i don't know what assets they're definitively looking at all the rumors suggest they're looking at different pieces of it, and none of those companies by and large are going to be able to buy the broadcasting, you know, side of it how do you split out the value between those? i don't cover 21st century fox so i don't have a perfect answer for you on that. >> you look at verizon, they seem to be the -- of the -- between comcast and disney people think they have a better shot where do you put verizon in this >> yeah, no, it's interesting. verizon has figured out what it wants to do. it's pressie clear it had some interest in charter in adding distribution to get the fiber back bone to support the 5g initiatives and interests over time but i think it's looking at an environment where it needs additional scale, needs additional assets to bring to bear and so it's continuing to survey the landscape i think what we know is it's going to need more to continue on. >> do you believe in this -- last question. do you believe in this model, meaning the idea of marrying distribution and content that that is the key for all of these companies going forward? >> well, i think absolutely. i mean, we're heading down that path you've already seen it bundled in one form or another the case of at&t, time warner, it adds important kwacash flow. the wireless business is a tough business you make your value on the content. and i think there's an increasingly realization that that's going to be important. >> okay. we are going to leave it there always great to see you, sir. >> thank you. >> appreciate it. when we come back this morning, we'll be talking tax reform and what it means for your money up next, john harwood speak easy interview with senator lamar alexander. later president trump's top economic adviser from the white house. kevin hassett joining us in a first on cnbc interview. stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker. that's the power of and. welcome back u.s. equities futures starting off the week on a sour note. nothing huge at this point, but down -- in fact, it's improved quite a bit. just down 10 points on the dow down 2 on the s&p and nasdaq indicated down 1 1/2 tax reform front and center. john harwood joins us now. good morning, john. >> good morning, joe one of the questions surrounding the tax cut bill is whether the country can afford it, especially given the fact that we have a long-term funding crisis in the major entitlement in medicare and social security. senator lamar alexander told me we can afford this tax cut so long as we follow tax reform with entitlement reform. >> it's hard to take much more from people at the top when 10% of the people pay 70% of the taxes. what you really need is a growing economy that produces more revenues, that's more money for the government and that's more money in your wallet. >> we already have substantial deficits we're already on track to have 10 trillion in deficits in the next ten years >> yes. >> you've got more and more people coming on medicare and social security. what gives afterwards? >> nobody likes to cut entitlements, but i think the republican party should and always has said we want to reduce the growth of government, increase the amount of money in your pocketbook and reduce the federal debt that i think is a winning formula. >> but, of course, the first step in that process is getting the senate to pass that tax cut bill get into conference with the house. lamar alexander, guys, is all for it. >> okay. really i thought it would be longer, john why did we keep you -- you must have asked him other interesting stuff, didn't you? >> oh, yeah. there's a ton of it. >> you're going to do a lot more >> absolutely. >> highlights. >> give us some highlights, at least tease us, john >> well, alexander talked about the prospects for getting the obamacare repair bill. he understands the president's gone back and forth a couple of times on whether he's for it or against it he is confident that is if the president comes out and says he's for it, it will be part of the year-end package as this tax reform bill moves. of course, we saw lisa murkowski among others saying if we're going to pass this tax cut bill and repeal the individual mandate, she wants that alexander murray bill. the other issue we talked about was the trump budget he said that the republican congress is going its own way on the budget so the president's priorities as in previous budgets by other presidents, they don't go anywhere what we do becomes the law and he said that they're going to fund scientific research and other things that president trump and mick mulvaney have not given priority to. >> do you see the future -- do you see what i'm seeing? do you see this eventual duke xavier match-up being a huge -- it's on the horizon, isn't it? can you see that coming up >> i don't know how good xavier. i know we're young and we're very good. >> they're ranked 11th no, cincinnati is eighth >> i can see it. >> grayson allen is really good. he hasn't tripped anyone do you like that kid >> i do like him i think he's been immature he's behaved badly, but i do think that we're watching a kid grow up in real time and coach k's made him the sole captain this year i think to try to put a little of that weight of responsibility on his shoulders, and what we've seen so far, he's handled it pretty well obviously a long season. >> getting earlier and earlier for me with this. >> yes. >> in terms of trying to figure out march and all of that stuff, you know what i mean >> uh-huh. >> much to your horror, i did have north carolina last year in our tv news group. >> yeah, that was unfortunate. >> yeah. you're not over that i can see that a couple of extra lines on the -- and gray hairs. >> you noticed >> all right thanks john, thank you for all of that coming up when we return, strategy session talk markets and politics with mark grant you're going to head for a break. a check on what's happening in european mke rhtow ckn st a moment. ♪ ♪ what we do every night is like something out of a strange dream. except that the next morning it all makes sense. to power global e-commerce fedex networks are massive, far-reaching and, yes... a little magical. fedex.com slash dream 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, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and 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box. mark, you have written a couple of really interesting notes over the last several days. i want to get to all of it i'm afraid we won't. i want to talk about the pancake -- the notes you wrote this morning first, i want to talk to you about the tax bill you are bringing up many really interesting points it seems to me we find out about a new twist or turn in the tax bill every day that makes us shake our head and say why is this in here a lot of time it's something to make sure the senate gets the 20% corporate taxes. you have some interesting things you found that i hadn't seen yet. what are your biggest concerns >> i read the house version of the tax bill cover to cover. it's about that thick. the amazing part in the media they talk about, of course, the tax cuts, the corporations, the tax cuts for individuals buried in this bill there are all kinds of deductions for the oil industry there's a tremendous amount of legislation proposed that would change the municipal bond industry in terms of what's tax exempt and what's not tax exe t exempt the amount of stuff in this tax bill is way beyond what you see in any reports in the papers, and then, of course, the senate version, which hopefully will get passed, it's not going to be one bill or the other. it's going to go to reconciliation and they'll argue about it and change it further before it goes back to the congress and senate to get passed it's very complicated. >> it's probably not a surprise. i mean, arcane tax law has been with us forever. i guess the point is there are going to be many more intended and unintended consequences than we've been really giving credit for. >> i think that's exactly right, but more than that are the amount of, as i said, even if you look at the oil industry and solar and wind, there's a tremendous amount of regulations in this bill for that and for various other industries and how you carry your taxed it's so complicated, in fact, becky, that so it's a good thing if it's 2018 before it kicks in because they can adjust accordingly? >> i think frankly it will be better for country in terms of growth to do it sooner rather than later, but it might be a great thing for the various people that do those kinds of things that are going to make a lot of money because of all the changes that are there >>, ma, you want this bill to pass or you want something to be passed some sort of tax reform or tax cut to be passed >> i think it would be a good thing for the economy. i also think there's a tremendous amount of pressure on the fed and on mr. powell, the upcoming chairman, to back off from raising interest rates because that is -- would be a negative for the economy and a negative for real estate and corporate borrowing and individual borrowing i'm a proponent that the fed is going to back up and slow down this notion of raising interest rates. what you looked at in terms of the pancake flat yield curve all the way out to 30 years, your basic assumption is it's not worth it there's nothing worth taking risk over 30 years which means what >> becky, i was in a conversation, actually, last night with the head of investments of one of the larnlelarnl e -- largest insurance companies in the country discussing this the yield curve is so flat you gain nothing past ten years if you are way out at the end of the yield curve, whether you are in treasuries or a variety of other securities you are picking up, for instance, in treasuries between the ten year and 30 year, 0.42 basis points a year. you have a tremendous amount of political risk, economic risk, market risk, and you are not getting paid for it. my conclusion is way too much risk and almost no reward. not a good trade >> meaning good news for stocks? that's the place you would be putting money instead or something else >> i think equities are going to do well, but, as you know, the reason -- i was on with you november 8th last year saying equities were going to go up, and trump was going to get elected, and the reason is not only because of what mr. trump is doing with taxes, but because the central banks of the world have $21.7 trillion in the market, which is an economy bigger than anycountry on earth. >> you always give us stuff to think about. thank you. appreciate your time this morning. >> thank you, becky. thanks, everybody. >> k on. see you, mark. >> see you coming up, planning your portfolio for the end of the year we're talking technicals with katie stockton next. later, insight on black friday shopping trends from a social media disrupter. the ceo of four square brings us an inside look we'll be right back. november is epilepsy awareness month. i am the proud father of a very strong little girl named adelaide who was diagnosed with infantile spasms an incurable and debilitating form of epilepsy. it's been a devastating journey that has robbed my baby girl of normal development. that's why i have launched the my shot at epilepsy campaign and i'm asking you to join me. take your shot at the hamilton pose, donate to help us find a cure, and lastly, share it on social media. this is our shot to take. learn more at: myshotatepilepsy.org >> the market says here is ready to gobble its way through the week i guess it's thanksgiving. as investors digest the latest out of washington, earnings season will come to an end what you need to watch as we head into the holiday season is straight ahead tax reform continues front and center council of economic advisors chair kevin hasset joins us to discuss the bill and a number of media deals in the works former tivo ceo tom rogers joins us to discuss the deal buzz. possible regulatory hurdles. the second hour of squawk box begins right now check this out >> see how things are setting themtsz up on this monday morning. dow looks like it would open off 11 points. nasdaq to open off we'll call it 2.5 points s&p off about two points here's what's making headlines at this hour besides joe's big fan. >> itholiday shortened week tomorrow you have to look for existing home sales on wednesday. we have weekly jobless claims, durable goods, consumer sentiment, and the minutes from last month's fed meeting it's going to be a busy day. then, of course, the markets close for thanksgiving and they're only open for half a day friday they will not keep us away, though, from this show we will see you on friday. lots of retail news, of course, on that friday separately there are about a dozen companies in the s&p 500 reporting earnings this week as well notable names including lowe's, campbell's soup, sales force, and both hp and hewlett-packard enterprises come out we should tell you qualcomm is moving a step closer to completing the $38 billion purchase of chip maker nxp reuters now reporting the company set to win anti-trust approval that's going to come from japan. you may get the green light from regulators by the end of the year with a few tweaks to its concessions. buying nxp would help qualcomm potentially fend off a hostile $103 billion offer from broadcom we're waiting to hear perhaps even as early as this week whether broadcom is going to come with a higher bid after qualcomm projected the initial one. also, president trump reported by won't national security adviser on a repeal of obama mandate in the tax bill. that's according to a senior white house aide the senate republican version of the tax reform bill would remove the mandate that americans buy health insurance or pay a penalty. joseph >> verizon is recordly close to a new digital streaming deal with the nfl that would allow the company to give customers access to games on all devices, but verizon will lose the exclusive rights to stream games on mobile phones that means cable, satellite, and other streaming providers that could offer games through their apps people talk about nfl trying to figure it out. you know, i'm hearing saturation as much as i'm hearing kneels. you can definitely watch nfl if you want to. >> you can watch it on twitter >> exactly we'll see. it's going to be interesting to watch the nfl and how everything plays out. you are jerry jones, goodell all these things verizon's stock was upgraded by wells fargo from outperform to market perform. the price target now is $50. that's $2 above where it used to be are the analysts saying several factors, including valuation >> and other corporate news, general electric is preparing to undergo a major board shake-up last week ge's ceo john flannery told investors that he wanted a smaller board, in his words, so new members with key skills relative to where the company is going. nine of the current 18 directors will lose their seats, and three new names will be added. a front page story in today's wall street journal suggests that ge's two longest serving directors, andrea jung and shelly lazareth are likely to go lead independent director jack brennan and trian's jack garden will remain on the board he said that in terms of the lead director when he spoke with them last week as well if you are looking right now, we will show you a live shot of the george dome. some 4,800 pounds of explosives have been placed inside the facility, and it is ready for implosion. the dome, of course, the home of the falcons and many other sports events over the past 25 years. it's going to be blown up at 7:30 a.m. eastern time this morning, and we will have live event for you in less than 30 minutes. i don't know why, but i love watching these things more than anything >> bridges are -- i don't know why. it's a controlled sort of chaos that you like. >> like to see things burn >> isn't that what "squawk" is >> it is >> and -- >> sometimes it's uncontrolled, but, yes >> and we've seen it implode many times also. in the first two -- they put them in, you know -- there's engineers that build them, and there are engineers that know exactly where -- >> to put them down. >> -- the supports are it's kind of cool. if the first two weeks of november stocks wobbled. we earlier said they were going to gobble this week. i guess wobble and gobble rhyme. global stock markets slipped, and high yield debt slid off with the recovery, perhaps it will prove just another tiny pullback did the dip expose market weaknesses that will continue. mike santolli is here to tell us if the bears missed their last chance for a 2017. you are going to tell us that definitively or just raise some questions? >>. >> global markets, small cap stocks lagging all of it was coming together, and then you had a furious buy of the dip when it wasn't much of a dip it got back to 1%, 1.5% of down side i do think with seasonal factors, when you start to talk about thanksgiving week and through the end of the year, it's tough to get serious down side from there. at least historically. also, if you look at years that look similar to this one, up 15% through october. right now you have one of the levered it stock markets, one of the most levered economies in history. you had rates very low, and investors willing to boy all this debt. that's corporate debt. it's a percentage of gdp this is a percent of back ground risk that i think people might warm to. especially if rates go up significantly. it makes debt more expensive it might also be why debt paydown might do with repatriated earnings especially if debt gets treated differently in the new tax code. all that stuff in the mix there. let me tell you about breaking news. in corporate news march very well technology is buying cavium for about $6 million it's a premier of about 17% to where it traded before the possible deal was first reported back in early november >> let's bring in katie stockton, chief technical strategyist at btig, chief strategist at ubs. i think we set up this interview with you, katie, with mike's report and said they may have missed a chance. you think maybe -- you said maybe last week what happened. it did it didn't go as far as you thought. you think it still might >> i think is still might. >> it's undeniably a resilient tape we have buying interests there, and i think a bullish bias is definitely appropriate yet, do i think we have a down draft in the stores in the day ahead. short-term momentum this week and certainly short-term breath meaning midmarket participation. the good news is that the down side to support. i was really very shallow. we're talking about 2% in that range for most of the major indexes. maybe a bit more for those that are leveraged to the technology sector >> okay. so the s&p is 2,578. when you were talking about the pullback before, you were thinking before the end of the year, 3% to 5% what were you saying >> in the 3% range support, fortunately, rises over time they've taken do develop, which it has been quite a long time since sentiment peaked at that overly bullish level, if you remember that, in october. now supports run 25, 30. just about 50 points below for the s&p 500. very modest. >> take the trough, and that would be how much? >> just a couple of percent really >> that would be enough? >> 2% to 3%. >> back to new highs by the end of the yoer. >> it doesn't seem like it would be enough. just in percentage terms what happened during that august pullback, which was also very shallow, is maybe 3.5% or so we saw sentiment go from overly bullish to overly bearish, and we've already seen some of the measures reach neutral territory, with just the very shallow pullback that we've seen i think we're getting close. >> you know, mike, you're a fundamentals guy we're not going to charge you for this information you just got this from -- it's absolutely free to you and to viewers. factor this in to your thinking. do you -- i mean, it's short-term long-term you have a different outlook? >> yeah. first of all, we can always get a setback, and i'm not dismissive of some of the concerns we hear around lack of progress that we made in terms of senate tax reform there's obviously issues right now in europe. especially with germany with regard to the inability to form a government i think these are still distractions and still folks on the fundamentals we're coming out of earnings season it was pretty solid overall. i think going forward we're likely to see if we do get any movement at all on tax reform, that could trigger another $10 a share tore s&p earnings for next year i think the fundamental outlook, pretty -- still remains pretty solid. in the absence of some major market disruptive event or something that will broadly change the back drop, we're still constructive on markets. nobody can feast on 2% bears are going to be very -- they're going to be thin and gone and everything else >> just trading the headline indexes, it's trouble. consider we were down 1.3% in the s&p i guess last week at the lows >> you were if right on a couple of sect orz, like traditional retail and media riding them all the way down, last week they just ripped up in your face because of various factors >> i have thought about what it says about the fact that,look, the tax writing economies are going through the couch cushions for money. anything like that >> what i wonder, i think lot of people probably didn't know about this, and, remember, we talked to buffett, and he talked about how you may be having people wait to sell things because they want to get the better -- the better rate in the new year that may change your perspective. if you are forced to sell something you have been holding for 10, 20 years and -- >> the capital gains rate for individuals. right? individuals have no incentive to change what they're doing right now. >> you would you would if you wanted to sell the stock. if you wanted to choose which stuff you were selling this year i would immediately sell some of that if you had a long-term stake, and you thought, okay, this is the last time you're going to sell before the end of the year >> oh, if you had very cheap cost space stock that you wanted to unload. >> something you had already -- but then you bought it at much higher levels and just happened to have bought it at higher levels that would be a problem if -- >> if you have been buying it over a long period of time >> you void a little bit of taxes, and that gets in the way of what your overall investment strategy is. >> you're doing all this fancy tax stuff offsetting gains with losses >> that's what we all do withing every tax code it's not going to change when this passes. people aren't going to decide that they're going to be s-corps or c-corps it's not a simpler tax code. it's just a simpler one. >> if you said to yourself does this encourage it or encourage it >> it's kind of like you've been buying this stuff at different points in time that's the only moment when it's relevant that you would choose which lot you were going to sell first. >> it's just to offset -- you want it -- you are playing games by selling the stuff you just bought and characterizing that so that you can use if it's down, then you use that loss to offset gain somewhere else >> this tax code does not simplify this. i think anyone in a certain tax bracket, if you were thinking that you were going to -- if you were waiting to sell stuff when you had lower -- >> you are going to get killed >> next year or whatever -- i look at you and think about, you know, billions and deal -- you know, all your different paychecks coming in. i can't even imagine what the size of this, like, totals next year you're going to get absolutely massacred >> just slammed. >> if you are waiting to sell, like next year where it was going to be because of the tax reform was going to go through, you better get the hell out right now. >> can we get 3,000? >> i don't know about 3,000. bullish bias momentum is there. >> 15% >> beyond the short-term that the sector -- we just have to be in the right sectors >> 3,000 next year on the s&p? >> it's possible right now it's not the most probable outcome, though. it's going to take a lot of up side for earnings to get to 3,000. more than we're forecasting right now. >> all right 3,000 or bust. anyway, thank you. thanks >> okay. >> a couple of mikes >> that was fun. >> coming up when we return, it is that time of year, and social media platform next door is rolling out a new feature to help promote local businesses in your area. a couple of ceo joins us rye right after the break. later, a council of economic advisors chairman kevin hassett is going to join us, and i bet you his boss m baye watching you're watching "squawk box" here on cnbc ounts on centurylink to keep their global campus connected. and why a pro football team chose us to deliver fiber-enabled broadband to more than 65,000 fans. and why a leading car brand counts on us to keep their dealer network streamlined and nimble. businesses count on communication, and communication counts on centurylink. wow! record time.s. at cognizant, we're helping today's leading life sciences companies go beyond developing prescriptions to offering subscriptions with personalized, real-time advice for life-long, healthy living. honey? you almost done? nope. get ready, because we're helping leading companies see it- and see it through-with digital. joining us right now is the co-founder and ceo of next door. waking up very early for us on the west coast good morning to you. >> good morning, andrew. >> great to see you. so help us understand what's going on here. you are trying to promote small businesses, local small businesses we talk about the amazon effect all the time >> you could easily find the businesses most beloved by people in your neighborhood. >> are you creating a network with neighbors locally, but with businesses themselves? are there deals being offered as part of this >> this is really about celebrating the businesses that neighbors love you mention that most of us are thinking about amazon and other places where we can buy things on-li on-line, but we can't forget about shopping locally we can't forget about the fact that part of what makes our neighborhood pz vibrant is the local businesses that serve us now we've taken those recommendations that great word of mouth, and we tut it on-line for anyone to discover those businesses >> it feels like amazon has already won this game or wal-mart has won this game do you see a moment in which local businesses come back or change in a way that somehow retake both market share and mind share >> i think in most categories local businesses never went away there's certainly a large amount of retail that can be facilitated on-line, and amazon and wal-mart are great at those categories, but when you think about service providers, when you think about bakeries, you think about farmer's markets, you think about doctors and dentists and electricians, i don't think amazon is in those categories yet have we want to give them their due praise we want to giver them a kind of highlight so that when you go into these neighborhoods, whether you live there or you are traveling there over the holidays, you know the best businesses to patronize. >> i know there's a real estate compoen ebt to what you guys do, but when you look at commercial real estate, i even see a new york city go to the upper west side, upper east side, so many of the retail stores are just vacant now with neighborhoods favorites on next door, they have an easier way to make sure that neighbors know they exist. >> we appreciate you waking up early. always love seeing you next time you're in new york, please come and visit with us. great to see you >>. >> it's been the site of two super bowls. four final fours the olympics and more than 250 atlanta falcons games. in just a couple of minutes, the georgia dome will be imploding we'll bring you the event live then, later, media merger frenzy could face regulatory pushback we talk about some of the latest deal announcements with former tivo ceo tom rogers. 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operates about 450 stores across china. shares of toshiba fell by nearly 6% in japan today the company announcing it's going to be raising $5.4 billion from selling new shares. that sale amounts to half of the company's current market value it would boost toshiba esaassets back above its liabilities and in turn help it avoid from being delisted in japan. and in washington nuds the senate tax plan will let mutual funds skip a change that hurts individual investors that provision would force investors to sell off their oldest shares first. that prevents any cherry picking specific lots to try to reduce the investors' tax burden. originally that change was designed to apply to both the fund and to individuals. this kimes after large firms and eaton vance complained nafta renegotiation talks resume today in mexico city. the u.s. has demanded tougher origin rules mexico and canada will reportedly not make a counter proposal, but, instead, try to convince the united states to change its mind. canada will make a presentation arguing that u.s. demands would cause serious damage to the u.s. and all north american auto manufacturers. >> steven mnuchin shared his thoughts on when he expects a tax bill to hit the president's desk >> we're very excited about the timeline i mean, yesterday was obviously a huge day in terms of having the house pass the bill. that's a great move forward. we're going to have the senate as soon as they get back from thanksgiving vote on the bill, and our expectation would go to conference right away, and we have every reason to think we'll get it to the president's desk before christmas for him to sign the white house remains confident that growth will continue at 3% or more following the passage of tax reform. joining us now council of economic advisors chairman kevin hastess. mr. chairman >> hey, good morning, guys >> if you make a million dollars or more, you make a heept of trouble. that's anti-reagan it's anti-heritage it's anti-, you know, anywhere that you read normal supply ciders would be that the top 10% -- if you are going to raise taxes on wealthy individuals, it seems like it's counter intuitive to what the whole rationale for this is. >> i think there's a big middle class tax cut. there's an affirm amount of simple fiction the fact is that everybody up on the hill has a different idea about the trade-off between equity and efficiency. they're working out a deal between all those folks that can make a big fundamental reform that becomes law >> to let those folks work it out, and for sure, the president preferred where we started in the first place with the 35% rate he also respects regular order >> we're talking about assault stuff and just actual apples to apples comparisons about, let's say you have a lot of people that voted for a republican because they thought at worst you do corporate taxes would stay where they are. very few of them thought that their taxes were going to be sharply raised by a republican administration >> i don't think that there are very sharply raised people in the distribution tables, but the fact is that people voted for president trump because they wanted them to turn the economy around >> if we sustain this 3% growth that we've been sustaining in the quarters >> actually asked treasury secretary mnuchin that what do you they will the people it's for the greater good? sorry, guys, but you know we want corporations to do better and wage gains and stuff, but you will have to pay for it. that's how you should -- that's what you would tell what you are calling as a small amount of -- it's not really a small group of people in new jersey and new york >> for most people around the country then the lower rate overpowers the state and local deduction, but there are some people in really high tax jurisdictions where that's not true they should get on the phone and call up their local officials and tell them to try to run a more efficient government. that, in fact, is what the incentive is not there right now that will be back. >> that's in the journal today that trenton needs to get its act together and maybe this will force them to get their act together >> this is going to happen instantaneously. those states won't have time to prepare or to try and change how they do business, which, you know, could lead you to think that maybe new york, new jersey, condition con, illinois, california could be dealing with states that slide into some pretty tough economic times. at least for the foreseeable future until they can change, correct? >> you are talking about a few people at the very top they've got plenty of resources. we already see mobility from high tax states. that's already going on. not just because of the -- >> that's an argument for why those states would be okay it's in line for why people leave and go to florida. >> it's not the huge change that you are characterizing as well >> do you have a preference on some of the provisions in the house and some of the provisions in the senate, and, you know, i think the house was solid. it wasn't even close, but, i mean, the senate right now -- i can think of six guys that could do the thumbs down and become famous on the day this needs to try to pass, kevin i don't have any idea out of the six which ones -- it could be any of them. i don't trust any of those six to do this >> i think the expectation is that they're going to have the votes to get the thing through the senate rate after we get back from thanksgiving break >> sf you get ten years outs, the law as they have seen it or the bill as the senate is considering it would be something that would raise taxes on people across the board people making $50,000, people making $100,000. there are a lot of people paying higher taxes in ten years. how does that get worked out in reconciliation >> i think that they are probably going to have to have some stuff expire in order to make the reconciliation rules. it's a moving target as they negotiate with the house to see, well, this thing goes in and costs money and that means something else has to expire i think it's the intent of everybody who votes for the bill that this be a permanent change in tax law and we have quite a bit of precedent to go on for this if you go back and look at, say, the bush tax cuts when president obama was in office, and he extended all of them at the beginning, and all but a tiny little bit, just the top margin of rate became permanent in the end, and so the budget rules make politicians do this, where this isn't the first set of politicians that have had to do it the precedent is that people were -- >> the rule does make sure that it's kept in place for corporations not for individuals. i guess the optics of that may be difficult >> again, the corporations are deciding whether they're going to locate a plan here or ireland or some other country, and they're making a decision that's a capital investment that lasts 20, 30 years the expiration could have a much bigger impact on their location decision than you're location decision, right? >> kevin >> yeah. >> last month larry summers made some pretty provocative statements about your analysis of the wage gains that would result from all of this. he said that he is proudly guilty of asserting that your analysis is some combination of dishonest, incompetent, and absurd he goes on to say there is no peer-reviewed support for your central claim. that cutting the corporate tax rate from 35% to 20% would raise wages by $4,000 per worker what do you say to that? >> the same thing you said last fall maybe >> the statement is we have two studies out filled with two peer -- my own paper was peer-reviewed. it's just a false statement. >> you know, entitlements. nothing -- there are people that say over ten years baked in the cake we got another $10 trillion we'll match what we did in the past eight years, and that doesn't do -- and then entitlements are totally not touched. i know that in the past you've looked at entitlements and have the notion that this is something that we can't let go on forever will that ever be on your plate, kevin? if this gets done, will you then move to try and talk president trump into looking at ways of fixing that? these deficits are peanuts compared to what we owe for entitlements >> right the president has already said that next up after tax reform will be welfare reform and welfare reform in part will be looking at entitlements, i'm sure, and trying to shore them up and make them more efficient. in the long run, as say, every economist will tell you that we've got to ultimately pay the bills that we've booked, and i think we're something like $90 trillion or $80 trillion short. at some point the government will have to act the first step of getting the economy going again and growing around 3% with the tax reform seems like a good first move for me >> can you see when you get right down to the very end of this thing and -- is there any way that the 20% is not going to be -- the president would finally say, you know what, you got too much arguing going on for the small little things that you are -- you got all these things you need to do to get to 20 let's do 22. is that possible is the last thing he finally gives in on as far as negotiation and that's not going to happen? >> you know, that's above my pay grade, but i can say that he has had three nonnegotiable as from the start, and you know what they are milgz class tax reform, simple fiction, and a 20% rate. those are non-negotiables and i assume that means they're not going to be negotiated >> it seems like this is not a simpler tax code it seems like this is -- look, there have changes understand trz going to be tax reform in this understand that there are tax cuts coming in a lot of different directions it does not seem simpler to me >> oh, and i think it is simpler if you consider that there's a big standard deduction and so many people won't have to itemize, and they'll have a simple tax -- >> there are still all kinds of winners and losers in the corporate law. >> that's always true. if you start out with lots of -- there are 150 million taxpayers out there, right, and there are going to be winners and losers no matter what you do. the fact is there will be a lot less compliance cost under this code that will be true both on the individual and the corporate side because the corporate side is moving closer to an international -- >> it seems like you would still have compliance issues with trying to figure out who is going to be classifying themselves as a pass-through, who is going to be classifying themselves as a corporation and all the changes that go along with that. >> we have those now, and they'll be simpler after the bill >> all right, mr. chairman thanks >> it's great to be here, guys >> you are not doing any more interviews, are you? you got to get in front of a tv set, don't you you know what's going to happen with the georgia dome, right this great big thing is -- don't you love when things implode have you seen those things oh, it already happened. we missed it we talked all that time, but you don't have a monitor there, do you? >> i do, fwactually, yes. >> you might be able to watch it the georgia dome has been brought down by 4,800 pounds of explosives the dome -- >> the georgia dome. >> yes i think it's happening look how it falls in on itself sort of. i just -- you know what, kevin, i hope this is not an allegory for anything going on with the bill >> it's your ratings when you put me on the show >> yeah. right. the implosion. i don't know what that means that we're showing that right after talking about the tax bill >> the dome is going to be replaced by measure said yes benz auditorium. it's going to have, you know, leather seats and, you know -- >> it's right next to it, i think, right >> is it >> you can see when they go up high, you can see the mercedes be benz >> is mercedes a stadium is it that nice? >> i guess that's the implication. >> are you disappointed with that, andrew here we go that's the live shot >> i'm disappointed we didn't get it live. what if i would have told you it was live >> i didn't want to interrupt kevin hassett. >> it really made a difference >> it's the same it's the same shot >> receipts rerack is for andrew >> there there we go. you put the live sticker on it, accident and then people think it's live. >> coming up when we return, he with might have some more live shots of all this, but we've also got a new survey from netflix on where people are watching their favorite shows. details about that after the break. plus, former tivo zoe tom rogers on some of the deal news in the media sector check out european markets right now. "squawk box" returns with some green arrows in europe in just a moment and the wolf huffed and puffed... like you do sometimes, grandpa? well, when you have copd, it can be hard to breathe. it can be hard to get air out, which can make it hard to get air in. so i talked to my doctor. she said... symbicort could help you breathe better, starting within 5 minutes. symbicort doesn't replace a rescue inhaler for sudden symptoms. symbicort helps provide significant improvement of your lung function. symbicort is for copd, including chronic bronchitis and emphysema. it should not be taken more than twice a day. symbicort contains formoterol. medicines like formoterol increase the risk of death from asthma problems. symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. you should tell your doctor if you have a heart condition or high blood pressure before taking it. symbicort could mean a day with better breathing. watch out, piggies! (child giggles) symbicort. breathe better starting within 5 minutes. get symbicort free for up to one year. visit saveonsymbicort.com today to learn more. >> where do you watch netflix. a survey by the streaming company and survey monkey about 12% of americans who watch television shows or movies outside of the home admit to having done so in a public rest room 37% say they watched at work about two-theirs of americans stream movies and tv shows in public hmm. i am not one of those people >> me neither. all right. let's talk about the deal we have been watching at&t's proposed acquisition of time warner has been snagging the cables of the justice department reports have surfaced that the department of justice is demanding a divestature of either direct tv or at&t to gain approval with more on the content and carrier in the media landscape is tom rogers. executive chairman at windview he is former tivo ceo, former president of nbc cable and one of the architects of cnbc. he is also a contributor here at cnbc, and, tom, it's great to see you. >> thanks for having me. >> of all the qualifications we just talked about, one very important one i wasn't aware of is that you used to be senior counsel to the house of representatives telecommunications and consumer -- >> i spent six years on capitol hill >> you know this inside out about how these things work. >> capitol hill has changed a little bit from my days there, but same cross-currents when it comes to media mergers >> what's really happening here behind the scenes? what do you suspect? >> i have a very tough time believing that the government really wants to litigate this. it just doesn't have a very strong hand when it comes to anti-trust law and it would be totally out of whack with the general messages when it comes to mergers and the business climate generally if you want a tough negotiation, you may want to sue and make it very clear that it's going to be -- you're going to have to cough up something substantial >> it's a negotiating tactic >> i think they actually -- >> i'm not sure they will sue, but i don't think if they do they want to take this the distance my guess is if there's a suit here, it's a way to force some kind of settlement then you got to ask the question, well, what kind of settlement because i don't really believe trying to dislodge cnn is going to happen because i think at&t will fight that all the way through. it could end up in the happened of somebody that changes the dynamics that the administration might be concerned about >> there's no business -- >> no. you got to ask yourself what happened here. i mean, they were going down a difficult path >>. >> there's a foundation in anti-trust for trying to force a divestature here >> this is what i don't understand about how this negotiation goes if you are randall stevenson, they file. you go all the way what -- if you believe that you're in the right and you believe you would win, says what could they get for them? >> well, you know, litigating is delay. it's messy it is a tough thing to manage in terms of expectations of investors and the market when i think through if you believe here that cnn is really the issue, that somehow that that is what is underleague the government's position here, that the weight of the best outcome for them as a number of people have pointed to is some kind of behavioral remedy. not a so-called structural or divestiture remedy >> best outcome for at&t or the department of justice to look like they got something on this deal >> if you really want to mess arou around. >> i'm not sure that the justice department couldn't insist on that as a settlement issue >> that would be -- >> isn't this a -- related issue. >> fcc and anti-trust jurisdiction overlap when it comes to -- >> cnn -- >> -- media concentration. >> except the fact that cnn is not an over the air -- >> it's not an over the air broadcaster. it would have nothing to do with the rationale for the fairness dolkt rin originally, but if you were looking for a behavioral way to put into a consent decree, something that would give the government ongoing policing power when it came to a media network, that would be an outcome. >> it sounds like you have a view that this whole thing is a shakedown. that this is some kind of white house mafioso shakedown because they want to look like they're doing something or they're unhappy about a particular thing that's happening is that what's going on here >> well, you know, you can -- you got to ask first is there some overwhelming competitive advantage that comes from putting content and distribution together like this look, at comcast, comcast owns nbc, owns a lot of both broadcast network and cable network. what's happened to comcast it's been losing video subs. charter owns no content. charter and comcast are really facing the same dynamics they have different starting points, but they're both facing that is there really something about owning video that gives you some kind of unfair advantage in the marketplace? look at direct tv and dish direct tv has the nfl ticket maybe the most prized exclusive conat the particular time -- >> you know, you have stepped away from it now a point has been made by certain people that maybe the comcas deal that some of the behavior that they were supposed to not be involved with that it has been a problem since that merger and that they're worried about it now coming again with it. has there been -- as the justice department, have they looked and say look what they're able to do we don't want that happening again. is that true >> supposedly there had been issues, and all channels have issues with distributors and i'm sure the justice department has gotten its share of complaints you look at the marketplace overall, and you really say has the ownership of content here really done something significant competitively? i think it's going to be a tough argument given the past conduct of the government in this allowing vertical mergers like this for them to establish a case that says, hey, you can't do this. >> then again, you know, media watchers and smart ones like barry said of all the media companies comcast is best positioned, so there's a reason the best position must have something to do with having all that content too it's a daunting future >> comcast acquired nbc universal really smartly when you kprar it to the at&t deal >> and ran it well >> and ran it well they acquired not only a cable network, but a broadcast network and a theme park for $25 billion versus $125 billion for time warner with no broadcast network and no theme park, and then they ran it very well that gives them a lot of positioning. >> thank you great seeing you today >> great being here. coming up, we'll tax tax reform and the upcoming battle with grover norquist. well, have you seen her work? no. is it good? good? at cognizant, we're helping today's leading banks make better lending decisions with new sources of data- so, multiply that by her followers, speaking engagements, work experience... credit history. that more accurately assess a business' chances of success. this is a good investment. she's a good investment. get ready, because we're helping leading companies see it- and see it through-with digital. ♪ what we do every night is like something out of a strange dream. except that the next morning it all makes sense. to power global e-commerce fedex networks are massive, far-reaching and, yes... a little magical. fedex.com slash dream another big hour of "squawk box" is still to come. grover norquist will be joining us right after the break to talk about tax reform, and then larry haverty of cabela funds will talk winners and losers amid the buzz plus, ceo andy puzder will talk about the economy and jobs and taxes. stick around "squawk box" will be right back. i used to have more hair. i used to have more color. and... i used to have cancer. i beat it. i did. not alone. i used to have no idea what the american cancer society did. research? yeah. but also free rides to chemo and free lodging near hospitals. i used to maybe give a little. then i got so much back. i used to have cancer. please give at cancer.org. breaking news. a merger between two chip companies. marvel buys cavium for $6 billion in cash and stock. zpliefrmts saudi power shift new reports that king salamon could pass the reigns as soon as this week. the impact on the oil market straight ahead plus, go to amazon hq2 that will be coming to a city near you. exclusive cnbc data grades the top contenders as the final hour of "squawk box" begins right now. >> good morning. wack back to "squawk box" live from the nasdaq market site? times square i'm joe kernan along with becky quick and andrew ross sorkin the futures right now haven't checked them ecently they're down about 25 and down ten. look at the dow now down 18. 18 on the dow. now three on the s&p down about five on the nasdaq. >>le deal skraets the biggest -- it's a premium of 17%. it's where it traded before a ponl deal was first reported in november you're looking at cavium up about 6% this comes as there's so much chip news these days you got qualcomm moving a step closer, we should say, to completing its $38 billion purchase of chip maker nxp reuters setting to win anti-trust approval from japan it may get the green light from european regulators by the end of the year. a few tweaks in concessions. buying nxp could help qualcomm potentially fend off a $103 billion offer from broad ccom. then you expect broadcomto come back with a higher bid we used to try to kill each other, and now they're trying to create a graphics chip that's going to compete with nvidia strange bedfellows everywhere around >> i don't know -- that wasn't much of a fight over the years between amb and intel, right >> intel was definitely the leader you wouldn't have seen them teaming up like that >> they're doing okay now. >> i mean, i've watched it for 25 years go between 40 and 2 20 and 2 20 and 2, and now what's the market cap at this point it's a fraction of where intel is amd's market cap $10 billion and then intel -- >> yeah. >> actually, you're right. >> intel is $208 billion >> goliath, david and goliath. alibaba is investing $2.9 billion and sun art retail group. the deal gives alibaba a morning 36% stake making it the company's second largest shareholder. it company sun art operates about 450 stores across china. >> here's what else is making headlines around the globe german chancellor angela merkel said today that efforts to try and form a coalition government have failed. merkel had been working for more than a month to try to negotiate with the free democrats and the greens after losing ground to a far right party in the september election if the coalition can't be formed, merkel could form a minority government or she could call for a new election, but there are concerns that the far right would pick up even more votes if they went back for a newer election on this you could see the euro right now at 179.79. rumors swirling that the saudi king solomon is ready to pass the reigns to his son it could come as soon as this week, but what could the transfer of power mean jackie deangeles is with us. >> great to see you. obviously, these rumors have been floating since the summer this isn't new news to the market, but the fact that we could see the torch passed from the saudi king to his son, crowned prince mohammed bin salman as soon as this week is essential represent ag shift of power that's very important. >> at 32 years old he is a driving force behind modernizing saudi arabia it's no secret, of course, that mbs has influence there, but getting this official tiegts means absolute power, and that is a very strong statement >> how the politics of this will all play out and will be impacted by business interests that include oil of course, that ipo. consensus right now that mbs or king mbs would be bullish for oil prices or at least keep them in the high-end of the range also, remember, the saudis are the biggest opec producer and the new energy minister has been very strategic about the country's role within the cartel that's likely to continue ahead of the opec meeting that we're expecting on november 30nd >> you think there's -- i heard super some investors, some of whom were in saudi when i was there a couple of weeks ago, that there's now going to be a discount applied to the iramco ipo given what took place in ermz it of the arrests and this idea that there's going to be a confiscation of wealth >> it's possible that that's the way it could go, but i have also heard the opposite that this is sort of a step in the consolidation of power it's a step to prove to investors that they are taking measures to put the different levels in check. in a sense, to show that there's strength in their position and they would be more valuable to invest in. you can look at it either way. the tax reform battle now in the senate core. omb did he we only need 50 votes in the senate instead of 60. the certain proposals could only have certain economic impact and one of the ways to game the system is to make things expire. the bush tax cuts back in the early 2000 did the same thing. they supposedly would expire after nine years what we tell folks is this if it's good policy, it will become permanent if it's bad policy, it will become temporary that's just the way that it is >> the senate versus the house why don't you lay out how you think the differences are between, and then we'll sort it out once it gets to conference what do you think? >> sure. the reason why the senate should pass the bill the last week of november, the 40 hours of debate and then -- but the two bills as written, and they're now written down, really mesh fairly easily. the house bill takes you to a 20% corporate rate immediately the senate bill takes you too 20% rate within one year they're both permanent the house allows it $10,000 of property taxes they're not in different planets. you know, one of them dent say red and the other says seven they're talking about seven and five >> the changes that are there are significant. i know overall it's going to mean a tax cut for a lot of people it's going to mean a tax cut for corporate taxes. i just had someone who tweeted me and asked me to ask you he said -- >> sure. >> -- that the 10,000 annual property tax ek emshon is what he says his quarterly property tax payment is in new jersey he says there are gop voters in blue states too, and we're not happy about this what do you say to people like that >> well, the people bho awho ar really unhappy, and we saw the state senate president from new jersey say that when we get rid of the tax deductibility certainly of personal income taxes, and much of high-end property taxes that even new jersey is going to have to rethink everything >> if they're not subsidized by the rest of the country, so this is going to put a real challenge to incompetent governors and corrupt mayors to bring those rates down it's not just a tax cut at the national level this will stop tax increases in it the future and bring down tax increases particularly at the high end of the personal income tax and on property taxes. >> i can't imagine that happens overnight. >> not overnight, but sooner rather than later, and, remember, if somebody says i'm going to lose a tax deduction here, you're also going to see the value of the stocks and their wealth go up as we increase the after tax cash flow of all these companies taking the rate from 35 down to 20 as well as for some chaubchapter s corporations this will increase wealth in people as well as lower rates on taxes. >> grover, can't you just buy real estate in texas and florida and hedge all your bets against what's happened? this is going to be -- a lot of people are going to move, aren't they, in the meantime, and then these governments in new jersey and, no are going to get even more strapped, and they're going to look like illinois. this will probably speed up unless california, new york, new jersey, minnesota quickly move to bring those rates to maryland and bring those high ridiculously high personal income tax rates down. i think that the democratic governorships will have to move faster rather than slower to fix those. >> it's want just a democratic governor, though you have 43 states that have the sales -- that have taxes like this that have estate taxes. >> that was what made enough people happy to pass it comfortably in the house that number probably stays right there. >> soosz we pass this bill with 20, i will be joining with others and saying 20 was very nice 15 is important. let's get moving 20 makes us competitive. if it starts to edge up -- >> why are you going to push this down to 15. >> well, 20 begins to make us competitive. we have an average of 4.8% state business taxes in addition to 20, so china is at 25 we're at 20. >> the reason you cut certain taxes, rather than other taxes, is you want to maximize economic growth i think we've done a fairly good job with this tax bill to focus on job creation and growth that's why it's a corporate rate reduction. much more than an individual rate reduction reagan focused on individual rates. this is focussing more on -- >> that's for sure >> grover, i think you were talking about a higher bracket maybe when you said this isn't the worst tax bill, but it's in the top 20 was that the provision for another bracket on the high end? >> yes, the idea that steve bannon was floating at one point. >> for -- it happened a different way. on the high end, mnuchin said as much the other day to make more than $1 million, you are definitely -- you're subsidyizing a lot of the corporate tax cut by people that, you know, you call them wealthy. you call them rich i don't know whether you call them producers snoo there are a lot of people that voted republican. it almost is like you remember the last administration how rich folks can always afford to pay a little bit -- it always is going to be a little bit more, a little bit more. that's what we're getting. it will increase the value of stocks and people's wealth, and the value, frankly, of all investments. >> okay. >> you have to compare that to changes in one year's incomes. the other one is when we leave out of the distribution tables it's the person that doesn't have a job today who gets a job. >> yes >> this is that's one of the people that left the work force during the obama recovery. we've had a number of people leave the work force >> there are people like larry kudl kudlow. >> the pass-throughs because that personal rate has gone so high starting with george herbert walker bush and then clinton, bush temporarily moved it down, but not permanently. then obama moved it up again, it keeps going up that's what whacks the pass-throughs, and so you had to deal with the personal side. at least on the pass-through issue. snoo what do you throw out instead unless you raise the tax rate to 23%, 24%, and then you meet in the middle for the pass-throughs and corporate rate >> i understand johnson's approach it's not a particularly expensive project line, and some or much could go through the other part of this number. -- >> you are prepared to take on more debt? is that the issue? >> no, actually i don't think you'll see over the next ten years an increase in projected deficit. they're only suggesting that growth will go up about half a percent or so. would you net $2.5 trillion. >> so you think the $1.5 trillion estimate is wrong >> i think it understates the growth that we will get. if you went from -- again if you went from two to three, you would raise $2.5 trillion. they're expected only to raise $1.5 trillion. >> so it will pay for itself >> if we get the bill that they're doing there, it will not increase the deficit from presents projections, which are pretty awful because we are left with pretty much a mess. >> grover, good to see you thank you for your time. >> good to he sue. >> great to see you. >> a lot still ahead up next, let the games begin that's what one media analyst says about the assets of twenty-first century fox that are in play. we will talk to the multi-media e eaghafr y harrity rit te thbrk. >> pieces of twenty-first sen country dpoks are in play, and as the next guest says, let the games begin. portfolio manager of the gabelli multi-media trust. we'll just start with what's attractive to whom i guess, larry, and then with the back drop of who could actually get -- pass regulatory muster to do some of this stuff. i understand that maybe comcast and some others are interested in the international operations primarily of twenty-first century fox. >>. >> that would make a lot of sense, joe, but i think you have to start at the beginning. >> the 39% interest in british sky broadcasting, and that appears assist equity. investors tend to undervalue it when they're valuing fox, and from rupert's point of view, he can't get his hands on the cash that b sky b generates it generates mountains of cash >> you realize it's not including b sky b. it doesn't compare to the bigger guys in the media business that it be comcast disney and perhaps a bulked up time warner. it really doesn't compare to the barbarians outside the wall, which would be apple, google, facebook, and amazon who in addition to having mountains of cash, a couple of them can spend the cash and wall street doesn't really care if they ever make a profit >> if you are rupert, strategically it makes sense to be a seller. another consideration here, if you go away from the film production assets and go into the cable network assets, if you look at the global advertising market, you find that of the growth in the global advertising market, facebook and google are taking more than 100% of the growth dollars if you are involved in a classic all lean media business, are looking at ad growth for the next nine years. the best you'll see is 0%. if you don't have good ratings, you'll see a lot less than that. you have a series of cable network business that are strategically attractive to others. about the international assets here. fox is not going to be selling fox news or fox sports domestically there's limited regulatory scrutiny there, and the three buyers, sony would be one of them they have a small international cable business cosm cast would be the other disney would be the third. there's no big market dominance issues overseas, andrew. none at all. >> okay, larry thank you. appreciate it. the weather looks good down there. better than here have fun coming up, when we return, does north carolina have what it takes to win the amazon race exclusive cnbc data grading the tar hill state it's coming up at 8:30 eastern time squawk returns in a moment we're helping today's leading manufacturers make things that think and do automatically. 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state, we're building the new new york. to grow your business with us in new york state, visit esd.ny.gov. ♪ >> squawk square good morning welcome back to "squawk box" here on cnbc, live from the nasdaq market site formerly known as times square. among the stories, front and center, marvell technology buying chip maker cavium for $6 million in cash and stocks the deal creates a bigger competitor for chip making jants like intel and broadcom. it's a premium of 17% to where it traded before the possible deal was first reported in early november meanwhile, shares of toshiba fell nearly 6% in japan. the company announcing it's going to raise $5.4 billion from selling shares it helps toshiba avoid being delisted in japan. boeing is secured in order for 75 737 max jets from avalon with an option for 20 more. the deal could be worth more than $11 billion of this prices. avalon is an aircraft leasing company that's based in dublin, but is owned by china's hna. up first take a look at wall march. it raised its price target the analyst citing a powerful run in the stock, and that the retailer is delivering on the promise of i said positioning in the e-commerce space going guggenheim raising its price target from $48 to $52 ahead of the automakers' event later this month, which will focus on autonomous driving. then there's verizon upgrade by wells fargo from outperform to market perform. the price target is $50 from $48. they're citing several factors, including valuation. should retailers stay closed on thanksgiving? it's a question we ask often, but four square is now out with a new study that shows the cost of closing on that holiday joining us right now is jeff glick, the ceo of four square. jeff, it's great to see you. >> thanks, becky >> just to back this up, you guys are measuring mall traffic. how do you do that, and what are you finding? >> so four square has access to location data for about 100 million places in the world. we have about 50 million people who use the four square apps and website each month, and then we have a network of other app that is use our technology and selected ones that pass data back we're able to see when phones move in and out of 100 million places in the world. therefore, we've done things like predict what chipolte sales would be and apple iphones 6s sales very accurately because foot traffic given 91% of the economy is still in consumer spending, and the real world is very closely tied to business. >> it's great data it raises my questions in terms of what it means from privacy. how are you able to do this? >> what we do is aggregate and anonymous. he don't ever dip into data, and privacy is very important. we're able to do that because a lot of app that is you use every day need location to function. >> so it's our fault we allow this to happen because they constantly -- the app says can we tracking where you are, do you want this or not? for a lot of these app says you need it to work. >> we need every one of the data points that's consumer opting. it's an app that i leave on consciously because almost every day -- >> i'm thinking of all the apps i leave on >> every day we might sort of say, hey, it's your first time here's what to order or we help other apps say, hey, don't forget the coupon that you have at this store >> or even an uber which now tries to leave on his location services or even when using the app. >> uber only leaves it on for a couple of minutes before and after each trip because they got some pushback on that. remember, we are essentially an alternative to google maps for 125,000 other companies that don't want to compensated on them uber and snapchat and microsoft and apple and ten cent and others and samsung who want to build really neat mobile experiences that are smart to where you are standing, whether it's helping samsung through its camera identify what you are looking at automatically and tag it or an augmented reality experience >> it's a great data set, and you can read a lot of insights into it. we had a retail analyst who joined us last week. the mall traffic would be down 6%, 7%, 8% this holiday season is that what you anticipate based on what you are seeing >> last year we predicted we don't have a forecast for this year yet, but last year we said it would be down about 3.5%. >> we were accurate last year. i think the big question is we hear people -- the big shopping kickoff is should you open not on black friday, but on thanksgiving day while turkey is in the oven. >> macy's and wal-mart over th last several years that have been open on that time what do you think? what's the analysis? >> we're going to not take on the moral question and whether people should be home, but the data shows it pays pays to open on turkey day. absolutely we look the two different sets of data. first, we compared three retailers, jc penney, sears, and macy's did that pay to open early it turns out that just by opening at 3:00 p.m. jc penney say triple the normal traffic of a thursday their competitors had a much less -- >> compared only to jc penney, right? >> jc penney same store sales were up 2% this last quarter >> triple. >> triple normal thursday, which is big well, you know, they had -- they were up 150% for the whole weekend, so compared to competitors that we saw in 90 to 100. it didn't make up for it the other case that we looked at are the states that prohibit shopping on thanksgiving day there's three states mass marks maine, and rhode island we looked at what happens that day. shopping in those states is down about 85% on thanksgiving day. it was only gas stations and pharmacies that are allowed to be open. competitor states nearby, shopping was almost 80% of a normal thursday. >> meaning you think they're taking people from that state and bleeding them across the borders. we saw people from those three states going to new hampshire. they have a no sales tax and are open on thanksgiving day it's a double whammy 60% of -- in fact, one-third of shoppers were from neighboring states one-third. 60% of them did not go home on friday and shop at all in their home state >> really the state loses sales tax revenue. whether it's jc penney opening early and stealing a huge amount of traffic from its rivals especially during the first two hours of the day, or whether it's states that prohibit shopping we see people voting with their feet, and they want to shop on turkey day >> really interesting data come back. we have lots of other things we would like to talk to you about. >> sounds great. thank you. >> come back next. i want to talk next monday that's what i -- >> what actually happened. >> about what actually happened. >> invite us back. >> you are there's the invitation >> the invitation is open. >> when we come back right now, the amazon race. could north carolina be a top contender for the tech giant's hq2? we have a live update from the tar hill state plus, closing the deal on tax reform we'll talk to one of president trump's former economic advisors andy puzder will join us you are watching squawk here on cnbc as we keep adding to it, guess who pays the bill? him. and her. and her. congress, we should grow the economy. not the debt. ♪ 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, it's 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. snoo north carolina has almost all the ingredients. a vibrant economy. lots of space. it's no wonder the state has gone all in on the amazon race with bids from raleigh, charlotte, greensboro, and hickory. scott coern joins us from the tar hill state this morning. good morning >> good morning from raleigh yeah, this state really does have almost all the agreements again, almost. here's the issue you remember that the state has repealed the most controversial part of its so-called bathroom bill known as hb2. specifically they repealed the bathroom part. the state still does not have any nondiscrimination protections, and it also bars those protections at the local level. now, considering that amazon specifically says in its request for proposals that it want only wants a diverse community, but it wants a community that supports diversity that could be a blot on an otherwise pretty strong record card for the three big metro areas in the state take a look. i'm of the three, raleigh, the triangle area, the triadd in greensboro and high point and charlotte all have the million plus people that amazon wants. we'll give them an a plus on that they do fairly well on stability and business friendliness. the economy as hit some speed bumps, so we'll give that a b plus the ability to attract top technical talent, that's where this inclusiveness comes in. that drops the state to a c minus. greater thinking on loeks. gets a b-minus because the transportation infrastructure could be better. overall still a b average for the main cities. we did mention that hickory is in the bidding as well nice place been there great leadership doesn't quite have the population it drops to a c minus. we've got report cards for a two dozen cities up right now at cnbc.com also later today, here from raleigh, we will talk to the governor roy cooper who came in on inclusiveness pledge back in november and still trying to get things reversed without a whole lot of luck. we'll ask them how they make the case to he win the amazon race guys >> okay. scott. thank you for that we want to continue conversation now around tax reform. joining us is andy puzdner, former restaurant ceo who is now an economics policy advisor with america first policies good morning to you, andy. >> hey, andrew how are you? >> i'm good, thank you we've been talking a lot about the pass-through issue and what the rate needs to be given the debate that's taking place in washington therefore, potentially what a corporate rate needs to be, and we want to get you to weigh in on that. >> i think the important thing to look at is what it takes to get money out of a company when you are talking about the corporate rate going to 20% for c-corps, you also have to consider the 23.8% tax on capital gains. you are really talking 43.8% to get money into people's hands. the rate for pass-traus, it's a very complicated formula. tax rates than people working at a regular corporation, an employee >> well, look, the amount -- what you are talking about is what these beam get from the business you're not talking about an income tax rate in the sense that you would for a normal worker no, i think the tax rate for workers, for everybody middle class and working class, they're all coming down. i don't really see a situation where we're going to have wealthy people who already pay or people that earn high income. let's say the top 10%. you can be in the top 10% in new york, for example, and still not be very wealthy. people in the top 10% pay about 71% of tax right now i don't see that changing very much particularly with what they're doing with middle and working class tax rates. >> right >> i think if will create jobs i think we'll have more people working. i think they'll be paying less in tax >> let me ask you about that in terms of both job creation but perhaps just as importantly wage gains, wage growth given that the unemployment rate in this country is really at a remarkable low point at this moment if we have -- if the tax plan goes into effect and we have this conversation several years from now, what kind of wage gains do you think we're going to see >> i think we're going to start seeing very significant wage gains. not only from the facts that we're reducing the tax -- that we're reducing tax rates and funneling more money into the economy, which is going to raise gdp and will create economic growth and opportunity, but also because we've got so many job openings at the moment we've got six million jobs openings plus for the past number of months that's a record since the bureau of labor statistics has been reporting the data we've got hundreds of thousands of openings in construction and manufacturing. >> if all those openings exist as is, meaning we haven't done anything and we still can't fill those spots, how is changing the tax policy going to change that? >> i think you are seeing that we're increasingly filling those spots. if you look at the percentage of people employed in the united states, it's been at 60% plus every month since donald trump has been elected it was last at 60% plus in february of 2009 the first month of president obama's presidency we are seeing more people working, and we are seeing people -- we are seeing the percentage of people in the population that are working increasing, which increases competition for jobs the more economic growth you get, the more opportunity you create, the more competition there's going to be for workers, and i think you're going to see wages finally start to increase rather than simply wealth being transferred to people that already have wealth because stocks increase and real estate increases in values. we need to see those wages increase to bring people up from the bottom, and i think you'll start to see that very shortly >> we've also had conversations about technology ewe had conversations about how technology is even impacting the restaurant business. if, in fact, wages were to go up and you were the owner of a franchise, for example, wouldn't you just decide, you know what, i'm actually going to use ipads at the restaurant table? >> it all depends upon how wages go up. if wages are going up so that you can increase your prices, that you can increase your prices, you have less pressure to lay people off. you have less pressure to automate if wages are going up artificially because the government is driving them up and you are unable to raise prices because the economy really isn't growth e growing, then ewe got a problem and you really do have to automate or look for alternatives. if youhave a growing economy that where people can charge more and can pay their workers more, you're not going to see automation to the extent you would see it with an artificially goofvernment-imposd increase in labor costs. a lot of this works together automation doesn't automatically eliminate jobs there are good paying jobs that come about because of automation people need those jobs >> we always appreciate seeing you. spending time with you thank you very much. >> always good to be here. >> talk to you soon. >> when we return, jim cramer joins us live from the new york stock exchange we'll get his take on today's top stories. here are the futures right now right at this moment turned around across the board now at 15 on the dew we'll be right back. ray's always been different. last year, he said he was going to dig a hole to china. at&t is working with farmers to improve irrigation techniques. remote moisture sensors use a reliable network to tell them when and where to water. so that farmers like ray can compete in big ways. china. oh ... he got there. that's the power of and. down at the new york stock exchange, it's unavoidable, cramer, your wife said just enjoy yourself. >> she was tired listen, live in the moment. >> yeah. >> mindfulness. >> i have one question and that is -- that was pretty shocking, i mean it's the whole season has been pretty amazing but is anything short of at least getting to the big dance is anything short of that going to be a disappointment to you at this point >> at this point there are a lot of people in philadelphia who are thinking about minnesota i'm still thinking about home field advantage. we get that, i'm thrilled. >> saw minnesota play the redskins and the quarterback, who i never heard of, and this guy theilen, they are formidable. >> they are, great defense does win but let's see because right now the eagles and the patriots have a good feel to them. >> they say brady, for his age, what about us, me and you and what we're still able to do? >> you know, look i think we can still step in the pocket it's the deep breathing we have a problem with and it's always left -- wow. >> you worry about the patriots against the eagles >> well, they beat us in 2004, yeah, i'm worried. same quarterback, incredible i'm thinking he's -- kind of guy, no, he's not wearing skechers. >> he'll get a head transplant. >> and cryogenically beating us in 2030. what about the market this week? should we -- xbr. >> it's been a benign week for a long time. maybe the president will get mindful about his tweeting maybe the first lady may say just get in the moment >> like you, yeah. >> yeah, i mean, he can say listen, like the eagles, i'm going to enjoy it then we would have a pretty calm week. >> we don't know what the next -- >> is he going to spare the turkey or is that -- >> a couple of them got spared two of them. >> like the elephant thing, we should shoot them anywhere we see them >> no, i think that's -- please. >> they are dirty birds. >> but elephants are very intelligent creatures. >> yeah, elephants are different. >> intelligent emotional creatures, there's no way -- >> i'm with you. my daughter was in a save the elephant cambodia program taking pictures and other people were shooting them. i like my daughter's view. >> me too. >> i like tech. >> you do. >> corporate bonds, is that going to be the problem? >> everybody wants to worry about those now. since everyone else is worrying about them, i'll look at other things to worry about. two weeks ago it was because there was no volatility, so we got a little volatility. >> worried about the vikings, i think you're right you're focused >> stop tweeting, she's right. >> i just want the president to be in the moment like i am, very mindful right now, like lululemon. >> if he tweeted as much as you -- >> we would be -- yeah, i mean it would be government by tweet. kind of like government by half tweet. >> we'll see you in a couple of minutes. >> up next, you'll never guess who's taking credit for inventing the selfie was that a hint? is t.was. >>t'ho >> it wasn't al gore it's all yours. wow! record time. at cognizant, we're helping today's leading life sciences companies go beyond developing prescriptions to offering subscriptions with personalized, real-time advice for life-long, healthy living. honey? you almost done? nope. get ready, because we're helping leading companies see it- and see it through-with digital. every day, on every street, in every town, across america. small businesses show their love to you. with some friendly advice, a genuine smile and a warm welcome they make your town... well, your town. that's why american express is proud to be the founding partner of small business saturday. a day where you get to return that love, because shopping small makes a big difference. so, this saturday get up, get out, and shop small. show of hands. let's get started. who wants customizable options chains? ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online. welcome back, we're back in the chairs, a frequent guest on this program has a new gig this morning, former treasury secretary jack lew joining lindsay goldberg as a partner. they have $15 billion in capital and specializes in investing in family and founder run businesses the move marks a return to finance for lew who worked at citigroup in between cabinet level stints in the clinton and obama administrations. >> and who is it that invented the selfie >> yes, anthony weiner -- no, it's not anthony >> he perfected it. >> a version of it he's in prison we should layoff him for a while -- no, okay. it was paris hilton making a bold claim over the weekend tweeting that she and britney spears invented the selfie 11 years ago. users on twitter agreed with evidence of other selfies throughout history, including bill nye, the junk science guy and george harrison. >> science guy. >> he doesn't have a degree in science -- anyway. >> frank sinatra too in our ear right now cult leader charles manson died at the age of 83 the california department of corrections said he passed from natural causes in a hospital he was serving a life sentence for ordering the murders much nine people, including the actress sharon tate eight months pregnant today. >> married to roman polanski, bizarre. seven degrees of separation. >> i don't think anybody is going to be missing him. >> no. it was predated, it was incredible -- i read helter skelter and -- >> i remember when he carved the swastika on his forehead. >> some of them are still trying. >> i heard a charlie rose1986, ago. >> from my hometown of cincinnati originally. he's a freak horrible >> keep an eye on futures today, we've been watching through much of the morning been just below fair value this morning as we get closer to the opening bell, dow futures up -- >> that's hot. >> right now it's time for "squawk on the street. >> that's hot. ♪ good monday morning, welcome to "squawk on the street." i'm carl quintanilla. thanksgiving week begins with modest gains focused lashlgly on how the tax bill is progressing. analyst calls on mcdonald's and walmart. the tw

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