Good morning, warm welcome to Worldwide Exchange on cnbc. Im wilfred frost coming to you live from our studios in london today. Lets have a quick look in on futures this morning coming off a day of slight declines yesterday the dow down 0. 2 . The s p down 0. 3 . It comes off a couple of strong days today were pointing higher. 91 points or so for the dow. Nasdaq up 22 s p up 8 points. Well have more on the markets in a moment. First breaking news out of washington the Senate Passing a landmark tax reform bill early this morning. The measure heads back to the house for a final vote President Trump is expected to sign the bill into law later today. Lets get straight to cnbcs ylan mui with the latest from washington good morning good morning. Victory in the senate and a doover in the House Republicans in the senate cleared the tax bill just about four hours ago the final vote was 5148 no democrats voted for it. There were no gop defections Majority Leader Mitch Mcconnell characterized the legislation as a cornerstone of the republican agenda after eight straight years of slow growth an underperformance, america is ready to take off. With this tax reform, america is ready to Start Performing as it should for a number of years this win comes after the bill hit a technical snag in the senate thats forcing lawmakers to strike two minor provisions, its also forcing the house to vote again on this bill even though they already passed it yesterday. They went around patting themselves on the back for it. So Bernie Sanders said this is a prime example of how republicans are rushing to jam a massive rewrite of americas tax code through congress with little debate over its implications maybe, just maybe, before Congress Adjourns for the holidays, we should start paying attention to the needs of the working families of this country, to the middle class of this country, and not just the billionaire class. The house will redo its vote this morning the bill is expected to pass once again President Trump will hold a News Conference on it this afternoon. Back over to you so, assuming this does get passed through and signed either today or tomorrow, its a big win for President Trump. Theres still another big item on the horizon, a potential Government Shutdown this week. Thats right. Thats why this is such a setback for republicans having to vote on this tax bill again it eats up the time they were going to debate and negotiation what kind of deal theyll achieve to avert that Government Shutdown still unclear what measures they will take to make sure the government is funded past december 22nd. Ylan, thank you very much for that lets get more on the Market Reaction to this sweeping tax reform plan. Joining me in studio, in london, is jim miller. Great to see you lovely to see you lets touch upon the tax reform bill. How significant is it for the economy and markets in the u. S. . Its been anticipated for 325 days traveling hopefully is better than arrival in most cases its quite significant but only adding about 8 of eps to the s p on about 140 next year. Its reflected very well in market prices. From now on the market looks vulnerable i was reading something you wrote about u. S. Equities. You said a lot of dumb money was still pouring in to u. S. Equities does that sum up your view that u. S. Equities are too fully valued i do. I dont know when the top will happen no one does, of course otherwise i would not be here. I would be on my yacht in the bahamas. I think we are close to a top. Ive been in the market for more than 30 years. Its extremely fully valued by most measures. One attraction of equities is relative to other asset classes. The bond market at the moment what is your view of that . Bonds are going down. They have broken through key resistance areas the dividend yield on the s p for the first time is below that of the twoyear treasury note. Thats an ominous sign for both markets. Across the world, do you think this is bubblelike territory for bonds or not absolutely. Especially negative Interest Rate bonds, which i think are nuts if i was in the British Governments shoes, i would borrow as much money as possible for as long as possible. Thats from the playbook of jeremy corbyn. I would do that because the return on bond yelled yields vs Infrastructure Development could be attractive. Lets talk about a couple sectors in the u. S big tech youve been bearish on that in the past still bearish on that . Im very bearish on the f. A. N. G. Stocks. I think they have unacceptably high valuations. Something will happen. Friends of mine say they can always hire the best possible lawyers and can overcome whatever the u. S. Government or the British Government or European Commission can do i think overtime they will be regulated and margins will come under pressure this is a regulation issue and how that can impact margins. When does that come into play . Next year or many years down the line could you be wrong again for another six months entirely possible ive been wrong many times in my career i would say the european is leading the way for that and theres hefty fines on alphabet that will be replicated elsewhere. I think theyll incur a lot of costs in terms of cushing hate speech and other forms offed about behavior online. The advertising may not even work to the extent its considered to work at the moment i would say theyre fully priced the major market of growth, which is china, is closed to them lets talk about your new book, your latest book its not a case of just extending lifespan with technology, but investing in it as well. Thats right. We live in a cohort on the planet that has the potential of living 110 and 120 years without great difficulty that will happen in 30 years that will change the entire trajectory of our lives but also throw up Huge Investment opportunities which are mostly private at the moment but soon will be becoming public. That is the next wave. Are there any listed stocks that you like in this space . Some biotech names i think novartis is the best one in terms of waking up to the idea that people will live long lives, and that aging itself is a disease rather than the diseases of aging. Gsk in the uk is a good example of a company thats forward thinking but most of them are private some of them will go public in the next year. It will be interesting to watch. On the big sort of International View at the moment, the eu, you dont think the growth pick up will be long lasting its a brief kind of reprieve as it were. Its a dead cat bounce, in my opinion. Youre seeing about 2. 5 forecast for the European Union next year and then 2 to 3 growth after that. I think most has been generated by monetary stimulus and also a bounce from the bottom i would say theyre going back into trouble already were seeing that. Youre seeing the polish issue the fact that the economies are now ganging up together. And youre seeing catalonia still being a problem and we have brexit to deal with and the italian elections. Theres all sorts of stuff that could be fracture points in the next year. We will talk currency in the next segment, but then quickly to look at japan long or short japan . Very long japan its the cheapest of the major markets. It has momentum on its side. Dividend yields are increasing the yen is undervalued i think the japanese market at 14 times, 15 times earnings looks cheap. Great stuff currency chat to come in the next block jim millen there we have news breaking overnight on uber. The European Unions top Court Dealing a big blow to the company. The ride hailing app its a the eu is a Transportation Service not a digital company. The ruling could have major implications of how uber is regulated throughout europe. Yub millions of europeans are still prevented from using apps from uber, so they will continue the dialogue across cities in europe while the court case cannot be appealed, uber can pursue other legal challenges through courts to defend its business shares of fedex are moving higher this morning following an earnings beat. Landon dowdy joins me live back at cnbc hq with the details. Good morning from across the pond were literally Worldwide Exchange today. Fedex delivering a better than expected quarterly net profit due to increasing volume they posted a beat on the tom and bottom line. The ceo attributing that to the Strong Demand during the crucial peak Holiday Shipping season there were lingering effects and they also talked tax reform on the call heres what alan graf had to say. U. S. Gdp could increase next year as a result of the u. S. Tax reform if this occurs we would likely increase Capital Expenditures and hiring to accommodate the additional volume from this gdp growth. Fedex giving astounding guidance on the boost that they expect from the reforms saying they would add another 4. 40 to 5. 50 per share adjusted to that outlook. Thats about a 40 boost to the current forecast shares are up about 32 yeartodate and up 2. 6 in early trading. Wilf, back over to you enjoy your time in the uk. Thank you very much, landon some more stocks to watch, shares of red has the ahat are. The maker of lynex software issued guidance above analysts estimates. Micron technology posting Third Quarter earnings that beat forecasts. Revenue surged 71 the chipmaker is benefiting from Strong Demand from smartphones, pcs and servers. Shares of stitch fix dropping the Company Reported higher sales but earnings missed forecast the online Style Service expects to make less money on clothes it sends to customers due to higher shipping costs and fewer available products for plus size and mens. The ceos of red hat, micron and stitch fix will be on squawk alley today at 11 00 a. M. Eastern time. Just one piece of Economic Data on the agenda november existing home sales are out at 10 00 a. M. Eastern General Mills and winnebago report before the opening bill Bed Bath Beyond is out after the close. Still to come on Worldwide Exchange, a round up of the Global Market picture, plus a look at what tax reform means to the currency markets stick around were back live from london in a couple minutes welcome back to Worldwide Exchange, im wilfred frost futures pointing nicely higher slight declines yesterday, about 0. 4 for the nasdaq, 0. 3 for the s p. Today pointing higher, almost 100 points for the dow, s p up nine, nasdaq up 25 points. Tenyear treasury note for you yields rose across the board yesterday. We hit a high of 2. 45 yesterday. 2. 456, a why not seen in 1 mo2 h months encouraging to see the longer end move higher as well as the shorter end. Asian equities, slight declines for japan for shanghai and hong kong. Slight gain for the nikkei uneventful session, european trade is lightslightly lower broader markets for you, first up lets look at the energy markets. Oil, as you can see, up about 0. 35 yesterday. About a half percent higher. Brent getting a nice bump today, nearly a percent or so gold board, not much happening we broke a fourday win streak slightly yesterday, up again today, 1,267 is the price of gold yesterday, the dollar down about 0. 3 flat against the euro and the pound. Lets discuss currencies further. Joining me around the desk is simon derek from bmy melon and jim melon is still here. Lets talk about the euro. You have been surprised by the lack of a negative impact on the currency and the second half of the year by politics i think its an astonishing 1 months for the euro. First the political story. Still no government in germany, though theres positive noises emerging we had the catalonia referendum. You can take that how you want we have the issue of the far right government or the far right member of the government in austria, we have an italian election coming up in march which leaves the possibility of a euro skeptic coalition coming in you have negative deposit rates. You are pushing out the end date for qe, and were trading 2 to 3 , the years highs for the euro against the dollar. I find that incredible jim, you once said that you thought the euro would collapse at some point. Break up. Do you still have that view clearly things are better than a year or two ago. The Monetary Policy is taking effect i said within five years the euro will break up members will leave i still think thats going to be the case because at the moment germany is highly competitive, its reflected in enormous current account surpluses. The others are uncompetitive something has to be unresolved in the longer term im still sure it will break up. Short euro for 2018 then . No. If it breaks up, it doesnt mean that it will collapse. Depends how it breaks up i would say the euro is at the top end of the range i didnt see anything outstandingly obvious in currencies i dont know what simon thinks i think the yen is undervalued the pound has further to go. Theres nothing that really stands out at me i would say probably the Australian Dollar is at the top end of the range lets touch on the u. S. Dollar you have been surprised that the yield differences that weve seen there with rates going up in the u. S. And not going up elsewhere have not delivered a stronger dollar. I think that is the heart of the story. I agree. If you look at the euro on the own, you wouldnt think theres a good reason to buy it. In the long run there is the threat to breaking up. Whats been the odd thing this year is the performance of the dollar its been entirely inconsistent with what you would have expected from yields, its entirely inconsistent with the performance of the stock market, entirely inconsistent with regard to what the fed is doing. So theres Something Else that must be going on its not geopolitics only thing that the dollar is actually traded to this year is long dated yields. Really long. Like plus ten years. Which says, i suspect, investors are starting to have longterm concerns about the u. S what those concerns are, i dont know wliz polit whether its politics or Something Else, i dont know this comes into the rhetoric of a flattening bond yield curve in the u. S. Could be painting disaster around the corner the argument, looking at the shorter end, you would not give that kind of story if youre talking about longterm, theres something thats definitely worrying people are worried about it clearly, and its impacting the dollar dramatically this year. Jim, lets touch on sterling. As some of our loyal viewers know, you traded that well in and around the brexit vote and were a supporter of the leave camp youre bullish sterling at the moment why is that. On most measures, especially ppp, its undervalued. The uk economy is performing better than most prebrexit economists would have forecast this year in 2017, it would have grown about 1. 8 in real terms, which is not bad next year over 2 , despite what many people are trying to target down at the moment though we have a big current account deficit, we also have a big influx of foreign money, which supports that. Im bullish on sterling. 140 is achievable against the u. S. Dollar. And maybe 85 cents against the euro in the next year or so. Its a good buy basically. Certainly not a sell simon your view on selling . 85, 90 feels about the right price against the euro given what i said about the dollar, cant disagree happy christmas to you both still ahead, the crypto craze, new numbers show how popular the bitcoin boom has become first heres todays National Weather forecast from nbcs bill karins good wednesday morning to you. Across the country two storms, one is a rain event throughout the southeast. We had a tornado overnight in louisiana, did some small damage we will watch the rain moving through the carolinas today. Possible airport delays for raleigh, emphis, nashville and charlotte. Thats the rainfall forecast about one to two inches for the most part. Out west, this is the storm well track over the next couple of days. Yesterday in the northwest, today through the rockies. Billings, Salt Lake City possible airport delays. Minor airport delays storms weak by the time we get to thursday. Well watch ohare, denver, maybe a mix out of that as far as snow and rain goes. Heavy rain on friday in the ohio valley on saturday, a rainy forecast for much of the east coast including the big cityirrt apos. Thats your Business Travel forecast more Worldwide Exchange when we come back trust 1 doctor recommended dulcolax. Use dulcolax tablets for gentle dependable relief. Suppositories for relief in minutes. And dulcoease for comfortable relief of hard stools. Dulcolax. Designed for dependable relief. The market. Redict but through good times and bad. At t. Rowe price. Weve helped our investors stay confident for over 75 years. Call us or your advisor. T. Rowe price. Invest with confidence. Good morning welcome back to Worldwide Exchange. Bitcoin is taking a tumble slipping after coinbase started supporting bitcoin cash. Bitcoin cash is a spinoff of bitcoin that launched earlier this year. Checking in on shares of bitcoin, this is the live bitcoin price according to