Jpmorgan agrees to pay 264 million to setting charges that it bribed chinese officials. The stock up about is . Weekly jobless claims falling to get this, 43year lows. And apple has reportedly asked manufactures into looking into making iphones here in the u. S. A. Hello and welcome. Lets welcome in your copilot for the next hour. David winter. Ceo of winter green fund, one of the worlds east investors. If you like etf and index funds, listen up. They may bring interest regular sear why they may be more expennive. Janet yellen making big headline on capitol hill. Steve liesman has that. Seems like about a week ago, but this morning, we got good economic data. A little less inflation. That adding to the outlet for gdp. Our rapid update, which brings together the forecast from the street, tacking estimates by. 2. Now, its. 6 were tracking for the fourth quarter. Early days, lots of data yet to come, but right now, were running 2. 6. s look at whos Goldman Sachs running near 3 at 2. 8. Moodys analytics, which puts together the surveys, contributes at 2. 1 . Janet yellen as was sukt suggesy the says she fully intended to serve out her term which ends in 2018 and warning about the fiscal stimulus plan. She warned about the inflationary impact of big stimuli, the same size not needed. Warned about raising the gdp to debt rh owe. She suggested congress focus its fiscal policies on raising National Productivity and said the fed in making policy will take account of these assessments of such a package. Listen to what she said. Such a package could have inflationary consequences that the fed would be to be, to take into the account before advising policy. That suggests that if theres a big package out of washington, could move faster. Quote, could be appropriate relatively soon. Thanks so much. Joes sticking around with us here. From deutsche bank. Chief u. S. Economist and cnbc contributor along with david winter. Joe, start with you. I chucked to see janet yellen. Shes been pratt for inflation, right . She has, shes been saying that she has. Shell probably get it because my guess is president elect trump is going to give us a lot of stimulus next year. And the fed could find itself in a tricky spot in late 1718. The economy does as well as i think, theyll be behind the curve. Ive been very negative for a while and i really changed my view. As a result of the election perhaps . Purely. Absolutely. What do you think about this talk when it comes to being worried now about inflation for the first time and what it feels like forever. Theres still a lot of capacity. As steve notes, to get yut. Allison ed, so how soon he get inflation, we need higher rates. And on that point, all this talk about deficits and deficit spending. At some point, doesnt the bond market take care of that for you, when Interest Rates start to rise just like they did to bill clinton when he wanted to do single payer, they said, whoa, wait a minute, you want to boar rrow that much money . So, the bond market and markets themselves will make some kind of assessment as to whether or not there is increased growth. Growth is not in and of itself, inflationary. One of the points yellen made this morning is that the economy is operating near full capacity. To drop a major stimulus plan on such an economy would potentially be inflationary and the bond market could take account of that. I think were along way though. Thevillagilanllaggilan vigilantees. I think the market would be able to stomach that. Where do you factor in Interest Rates in your thesis . Youve got two things going on. Inflaig and a euro dollar. About quarter of your investments are overseas. So, how does it change . Zpl zbling the key thing is you have to have companies that are able to reprice their goods. They have to have Pricing Power and the ability to have as demand comes up, they have more units. The dollar certainly is a factor. Its rallied significantly in last ore the past few weeks. Now, to your point about the bond market, bond yields will stay low in part because of the globalization of world economies and the fact that the fed is hiking and everyone else is easing, that will limit the amount rates can rise, but if youre going from a world where nominal growth is 2. 5, 3 up to 6, pricing will improve. The problem with the fed, one of f the fiscal stimulus, theyre going to get it. Theyre going to be in a realtr position. If were running at 3 to 4 gdp, the feds going to be raep in a tough spot. I want to go on to yellen. Does she throw down the gaunt a gauntlet . Im staying. Hey, doens touch me . Lets not play that game is what she was saying. Thats significant. Yes and no. I mean, what was significant i thought was that donald trukroz that had never been crossed by president ial contenders before in making a political b football out of the federal reserve. Thats what i was implying in my question. Right. Yeah. I would argue the fed though has brought a lot of this on itself with qe and forward rates and guidance. Bernanke had a great quote, the fed, this is really and steve knows im pret thety critical of the fed. The law of unintended consequences is going to bear down on policy. Congress should have stepped back and did nothing and the fed should have just watched that happen. No, to me, the fed went in places it shouldnt have gone. Right, so youre saying it would have been right for the fed to tank no, the fed should have followed through, bernanke, well end tapering when unemployment gets the 7. Theyve lost credibility among many investors. But wouldnt you still be relieved, that there should be no, that the fed should be independent peptide . Shensz im saying and trump should o not touch that. Thats a world that doesnt exist. In theory, sure, youre right, but politics dont operate in a vacuum and when you do these policies, it happens globally, youve injected ourself. You saying she should resign . No. Why . What im saying d the fed has caused these problems. Why would she . Would it be bad if donald trump asked her to . No, i said the fed has effectively interjected themselves in the political discussion. This goes, this is problem is much bigger than yellen. This is bernanke really starting this whole thing. Goes way back. Its even reducing the wlans sheet. Now theyve got this Balance Sheet and its hard. Joe, thank you very much. Steve, thank you very much. You stick around. All right, now to stocks. In particular, the big cap tonl stocks because since the aforementioned mr. Trump became president elect, the big cap tech sector is really taking a beaten. Nex flex, amazon, facebook, all down, but since tom petty seems to be todays theme, jaffrays saying down with torpedos, great album, by the biggest of the big cap tech and joins us now to explain. How do you lump these names together and say buy the bunch . Doesnt seem right. Well, the comments that trump had were broader comments about the internet space and tech in general. Thats how we can make this lump or basket type of a call. Its been consistent to sell off across the board. Hey, gene, you know, these are the stocks that have driven the bull macht, the etf because the market weight owned them all. Do you worry b about history . And the way that history has warked that you know, the tech bubble, the mortgage crisis, that these stocks that everybody owns are just overowned and overvalued and have fragile Business Models . Well, wed be worried if we didnt feel good about the themes theyre playing into and theech company is unique in terms of how theyre playing into this, so im always concerned, i was an analyst during the bubble and learned a lot of lessons about not playing into the group theme. I think you can debate where apple plays out over the next few years. I think this is a great story to own for the next year because of low expectations are on the iphone 7. Other Companies Like google, amazon and facebook, its easier to dream about where they can go longer term. So were not as concerned. I think in that question youre asking, when i read your note, you seem to think that the most of the reason for the sell off was concerns about donald trump, his protectionist talk, the tariffs in china, et cetera. When i saw the stocks sell off with the exception of apple, i thought it was most ly because f higher Interest Rates. When they start to rise and a company has earnings that are way out in future and a lot more in doubt, they sell auffaroff. How do you capture that at this point . That maybe part of the reason for the sell off. And as we talk to investor, weve had a lot of questions and most of the questions have been directed about what trumps policies are as a campaign and what the companies have said. And so, were basing our note today on some feedback weve had ore over the past week from investor, so yes, that may play into it, but i think theres just some concern ant trumps rhetoric on the campaign about being antiinnovation and that is pointed to by open letter that tech executives had written to donald trump the candidate on that topic and so, i think what youre talking akts, i think that also where investors feel about the Trump Presidency has an impact on it, too. Zbreen gene, it was a plrn to get you on. Thank you. All right, speaking of technology. Is air b and b planning to take on uber . It might be. That story straight ahead and big news from bio tech. Criminal charges announced against two former executives, the case against valiant pharmaceuticals, what a u. S. Attorney had to say and who might be going to prison. Straight ahead. Jake reese, day to feel alive jake reese, day to feel alive how else do you think he gets around so fast . Take the reins this holiday and get the mercedesbenz youve always wanted during the winter event. Now lease the 2017 gla250 for 329 a month at your local mercedesbenz dealer. Air b and b noout with big news today. You can read about it in vanity fair. They have an indepth story of the ceo and some of his biggest fans including Warren Buffett and jeff besos. An exclusive first look at the story. To power lunch. The big news today is a big expansion of their product line. Correct . What is it . They are going beyond their origins. This is the moment as when amazon went from selling books to efg else. If they pull it off, i think he sees himself and his company being catapulted beyond uber into sort of apple territory. This starts with a series of trips around the world. The idea is for it to be a kind of trip that an airbnb traveler wants to experience. Give us an example. Sell us. Running with marathoners in kenya. Thats not good. One we want to do. Going to drive alongside as they run. Samurai sword lessons with a master in japan. Surfing with pros in malibu. Edgy, quirky, off beat trips. I spent some time in topanga with a tv righter and so, i think the idea for brian is he sees airbnb as going beyond into these other markets that take him up against you used the amazon comparison in the beginning. So jeff goes from selling book to some other thing and the whole world, first, it was music. Thats outside your core of capacity. Book rs so much easier. Every single time he did something new criticizeded him. Theyre going from overnight stays to experiences. Uber. Well, so spent some time at airbnb and they showed me a story board. Hired a pixar animator to mapout a story board in it, they only noticed two of the traveler at home and the rest was the traveler everywhere else. That in their minds, a trip should include transportation. Airline tickets. Eventually, entertainment, meals. So, what youre going is taking this flat form, an unbelievable platform. I think now, 140 Million People have used an airbnb. Its everywhere except syria. And new york. Syria, north korea and new york city. New york city, if youre list listening, does he have a view on the idea that every is not one sided . Its nice we can go around the world. The last tango in paris apartment is available. But theres ood sign. The people who rent the spots. New york city has prohibited it. For any viewers who come and visit, its 600 a night for the bedbug in. What is cheskys view on cities that are supposed to be progressive given theyre slamming peoples ability to make any money . I think he thinks they are and they are in a major head to ted now with cities around the world. They are fighting tooth and nail to make sure this platform is going to be freely available to people. I think new york, new york is a tough one. I dont know new york is going to bend. This is, theyre going head to head. Hes hired one of bill clintons adde advisers to formulate a strategy, chris le han is the adviser and hes modelled his strategy on president obamas 2012 campaign. About grass root, social media. Cities have their own fights. It feels similar to the uber paddles wer seeing. Great to have you on. Thank you. Well, new video coming into the cnbc news room. Fedex, fred smith arriving at trump tower in manhattan. He did not speak to the cameras. Later on this afternoon, president elect trump is expected to meet with japanese prime manipulate abe. Well keep you updated. Still ahead, oh, baby. The stories behind two pieces of video you must see. A great catch and a big tumble. Both straight ahead. This just in. 50 million customers data was not compromised this morning in a Security Breach that didnt happen. Wall street, not rattled. At all no. Sir, sir. What went right . Everything. We have a brief statement on this nonbreach. Were happy to report theres nothing to report. My dads company wasnt hacked today. Cool. About tempurpedic mattresses. My dads company wasnt hacked today. Is that they contour to your body. It keeps us comfortable and asleep at night. Shop our biggest event of the year, including all tempurpedic mattresses. Save up to 600, now thru november 29th. Get your tempurpedic. The most highly recommended bed in america. Ive got a nice long life ahead. Big plans. So when i found out medicare doesnt pay all my medical expenses, i got a Medicare Supplement insurance plan. 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Well talk. Well plan. Baird. A baby is save today thanks foth quick thinking action of his older brother. Mother left her 11monthold on the dhang changing table for jaus a moment. Tiny boy rolled over. Thats when 9yearold joseph swang into action catching him in the nick of time. My daughter has helped out, hasnt gone that far, but there is a strap that sthap straps the baby on to the changing table. You just dont think theyre going to moou that fast. One split second, they get gassy, poo poo in there, they roll right over. Im going to raise you a great tumble. Valerie sharp from huntsville, alabama, zlently put herself to bed. She told the story, the today show, she need as step stool, otherwise, she would have to drop the baby on to the mattress and then the baby would wake up. Grandma goes can you try that . I dont think so. All right. Still ahead, criminal charges filed in the case against valiant. The latest on who could have going to jail and what could be in store for the stock. Here is your cnbc news update at this hour. President obama in germany. On the second leg of his final foreign tour at president. In berlin, he met with Angela Merkel to discus russia sanctions. Afterwards, a joint News Conference. I am encouraged by president elects intans that nato is a commitment that does not change and his full commitment to nato as the foundation for our International Security i think is very important. Back here at home, the u. S. Surgeon general calling attention to the addiction epidemic. A new report finds one in seven americans will face drug or alcohol addiction in their lifetime, but only 10 of those now addicted receive treatment and it looks like Benjamin Franklins grave will be envated. Thanks in large part to a 5,000 donation by musician John Bon Jovi and his wife. Then the nfls Philadelphia Eagles also donated 1,000. Thats the news update this hour. Back to you. Thank you very much. Lets get a check on your markets. All three major index rs hire, but very fractionally, folks. The dow is up about 8 points. David, you know youre a stock picker, you go after individual name, hold them for a long time. You held the proxy fight in the coca coca pay thing. Do you have a macro view . I think youve had euphoria the last couple of years because of low rates. People have bought ten stocks and neglected almost everything else, so i think the big opportunity dont you like that . Its created a opportunity beyond the index, so we think the next big money that should be paid over the next many years will be not in the most popular securities. Hit hard in the wake of the election, thats because trump is talking about protection ism. If i can make 2, 3 in the treasury, that tech stock has got to perform way better than it has for it to justify ownership. I think youre right. You know, i think that rates play into this and thats why youve got own companies that have the ability not only to raise prices and reprice, but to be able to exist in this world of a lot of chaos. All right. Speaking of companies that have chaos, share of valeant rebounding, following criminal charngs against two former executives. Meg has the latest from boston. Kate kelly is here with a look at some of the big money bets placed on valeant. K zwl chaos is right and it comes down to the relationship with a pharmacy. The stock over the pas