The futures are weaker. Dow futures down 22 . Snas dak down by 4. 5. As joe mentioned, oil prices under some pressure as well. You can see theyre down another 3 . Wti, january contract, sitting at 40. 62. The crude december contract expired on friday. The january contract had been trading higher, but as you can see, its coming right back down to where the December Numbers were. Here are some of the other big market stories were watching as joe was talking about. Pfizer set to buy allergan for 150 billion. Thats what it is even though the networks report that it will be structured so that allergan will buy pfizer. Well talk about that. An announcement is expected later this morning. This is an inversion deal with pfizer planning to redomicile. Thats a fancy way to say theyll move their headquarters to ireland. Ian reed will become the ceo of the combined company. Well talk a lot more about this deal with an analyst. Likely to be politically controversial. In other news, petco will be acquired by cbc partners are reportedly planning to buy the company from the retailers current private equity owners for 4. 7 billion including debt. The deal news keeps on coming. Atm make jeer diebold buying wincor for 1. 8 billion in cash and stock. Staying here, right . Thats do you get any inversion benefit from i dont know. To go to germany . I dont know. If they moved over there something particular about the way Pharmaceuticals Get special treatment in terms of r au r d. Glad youre here. Hope youre here for a while. Yeah. Me, too. Id like to get through thanksgiving. When you leave and go to bad things are happening. Unless you need to go cover a trial with this guy after they catch him or something. If they get him alive. Yeah, probably. I dont think theyre eager to do that. Maybe not. In auto news, ford workers fairly approving a new fouryear deal. The outcome was uncertain until the very end of vote counting. Meantime, uaw leaders ratifying a new deal with gm. About two weeks after most workers voted in favor of the contract the delay was caused by skilled trade workers voting the deal down. The sides did eventually work out an agreement. The stocks to watch, Procter Gamble. Barrons considering breaking up. P g businesses could be 90 billion if traded separately. P g down and the radical action would give p g the chance to compete with more competitors and give investors the chance to invest in Companies Growing from a smaller base. We have a new fancy schmancy dry cleaners right in the middle of the town where i live, tide dry cleaners. Big tide logo. The same . Oh, it is. It is definitely that tide logo. I dont know whether its p g franchise. Ing. Remember they had those drelle. It doesnt straighten things out. Thats like, you know, thats like washing your hair with the spray in your hair. The dirt works for a while. Procter gamble, doesnt it feel like theyve trade everything . Getting rid of smaller and smaller businesses, focusing on the core competencies. For barrons to say its worth 90. It was less than a year ago. Trying to break those out. Stocks down sharply over the last 11 months. Developing story out of europe. High terror alert and continuing hunt for the key suspect. Julia is reporting live from brussels this morning. Julia. Reporter thanks very much. Pretty dramatic scenes in brussels over the last 24 hours. 22 separate raids. 16 suspects now being held in custody. At least for the next 24 hours. But clearly one of the main targets, one of the suspected paris attackers, a man called Salah Abdeslam was not found. He remains at large and clearly live the search for him is going to continue for what weve got here is a city operating under the highest security alert. Why . Well, the Prime Minister of belgium told us yesterday that they believe that they have evidence that there is an imminent terrorist threat, that it could be at multiple locations so were talking about a copy cat attack similar to what we saw in paris a week and a half ago. As a result, theres an extreme crackdown. The subway stations are closed today. Colleges. Schools are also closed. I think the best example i can give you is this shopping street. A lot of people walking around, children. I can show you behind me. You can see three military trucks. I think 10 or 11 Security Police and soldiers walking around. Every five minutes were passed by groups of three or four of them trying to get people here a sense of calm among what is a very uncertain time at this stage. Whats interesting is people that ive spoken to here tell me theyve gone too far. You have to feel for the belgian authorities. Last week we were criticizing them saying they werent cracking down on extremists here, and yet today people in belgium are tilling me now theyve gone too far. As far as were concerned and i think the authorities here are concerned, this he have no intention of backing down at this stage. The lockdown continues and the hunt for this final paris suspect continues. Guys, back to you. Julia, reminds me of boston after the attack on the marathon when they shut down the whole city. There was that question at the time about do you really shut down an entire city . Does it look like youve given in to the terrorists at that point when you disrupt everyones lives in the hunt for them. Reporter you know, actually, a lot of people have been saying to me this morning, looking at this environment now, arent you telling them on how potent the threat of them actually is. Youre validating how important they are. Its a great point. The other question is, even if they find the suspect, will the lockdown still remain . Because, of course, its far bigger than just one individual here. If were talking about the imminent threat of multiple terrorist attacks. A great deal of uncertainty here, my 14e8. Thank you, julia. Nowin situation for the government. You cant prove what would have happened if you hadnt shut things down. If its just the one guy, which im sure thats not it no, thats not it. Theyre worried about mass attacks. There boston, how old is that guy . One guy was hiding in the boat. The entire city was locked down. Everyone was at risk because of this teenager, young man. Over here im sure they have more. Its more than looking for this one guy who evaded authorities which makes it scary. I mean, i believe that thats what it is. If its just looking to are this one guy from what weve heard, there had been imminent threats of multiple attacks. They dont tell us that though. They dont tell us how they know. They dont tell us if theres wire tapping. Theyve been doing it with some secrecy. Youre not telling people exactly what theyre doing. Youre not convinced the 16 people are necessarily involved . In the United States you have to be charged. Here they can detain you for 12, 16 hours and let you go. Detaining and arrest over there are different than arrests over here. Is that consistent through the European Union . I dont know that answer but certainly true in france and belgium. Other foreign news, big election in argentina. Macri wins the president ial election. He has been Promising Business friendly reforms to spur business investment. Macri is the two term mayor of buenos aires. After a combined 12 years of leftist populism. You didnt practice that guys name . No. Coming back from france i wanted to say macri rather than macri. Its in your gene. You just are able to are you really fluent in totally, completely, incredibly sflunt you know the whole could you read dont mind him. Could you read i can read huh . I can read el pais. Reading gabriel is difficult for me. Another level gabrielle. Same guy. Talking about three people. The newspaper, theyre written for won a nobel prize . Did he win the nobel prize. 100 years of solitude. Im not as stupid as not as stupid as i pretend. Lets get a check on some of the broader markets this morning. We showed you that the u. S. Stock markets are under a little bit of pressure this morning. Moderate declines. You can see right now in germany, that market down by 1 3 of a percent. The cac in france is down by 3 4 of a percent. The ftse is down by. 6 of a percent. In asia overnight you saw that the markets there actually closed relatively mixed. The nikkei was higher but only up by. 1 of a percent. Chinese market with the hang seng down by. 4 of a percent. If you want to take a look at whats happening in the bond market, it looks like the ten year note is yielding 2. 3 . 2. 289 . Lets take a look at the Foreign Exchange markets. Right now it looks like the dollar is up across the board. Euro is up at 1. 0628. That felt great. You can really feel it. Also take a look at the dollar yen. 123. 15. Dollar 1. 51. If the paris this is the dollar higher. Yeah. Back to the back to the deal news of the morning. Drug giants fooiz jer and allergan agreeing to a 150 billion tieup. A sp were joined by amile. If it wasnt for the Tax Implications would it make sense to put these two companies together . I think thats a great question. Given the price tag were seeing them pay for allergan, its tough to justify it without the tax benefits. A little bit of strategic overlap. It really is that tax benefit i think at the end of the day. Pfizers been very vocally pushing for. It looks like theyre going to be able to obtain through this acquisition. In conversations with ian reed on tv and otherwise, do you know the number of the actual number that this frees up to put into r d . Hes told me a billion dollars at least that the company will be able to spend if they would have shipped off to uncle sam can be put into r d. Its difficult for people to understand how they do the tax planning, what the number is. Its certainly that large or maybe even bigger. Its not just for r d. I think they view this as an opportunity to do what they want in terms of future acquisitions. They feel at a competitive disadvantage to their european peers in terms of doing deals. Not being able to access cash. And dividend and share purchases as well. A number of reasons they want to bring that cash back to the u. S. Without paying uncle sam. So i think investing in the business, investing in r d is part of it. Surprisingly vocal about how much they want to get this done. Looks like theyre on the verge of doing just that. Allergan is you know, its not the old allergan. Its forest labs, its a lot of i dont its not just botox. Is the pipeline at allergan the stock is growing more quickly than pfizer obviously. Does allergan have a really good r d pipeline, better than pfizers or comparable to pfizers . Yes. I think the activas is being sold off. Its a combination of the old allergan along with forest labs as you mentioned. Okay. I think the botox is the key in the aesthetics franchise in general, juviderm. The pipeline is okay. I wouldnt say its near the top of anyones list in terms of pharma pipelines. They have a lot of products that theyre developing. Many of them could be smaller opportunities. A couple that could be larger. One for eye disease as you mentioned specifically that theyre excited about. In general its a number of smaller shots on goal. I put it sort of the middle of the pack. Anything without the inversion that theyre looking to get here, i dont think the near term growth or the pipeline alone would be enough to justify Something Like that. Vamil, its michelle. Ive read that bern saunders is the valiant school of thought and doesnt believe about spending on r d spending or having more money as a result of the inversion. What do you think will be the commitment to r d . Hell have a role even though ian reed will be the ceo. I wouldnt put that all the way in the value model. I think theyre somewhere in the middle. Certainly they look for opportunities and maybe they can get things that are later stage or close to the market to maybe have a lower risk type acquisition if possible. They do still invest somewhat in r d. That was the drive by allergan getting bought by activas as opposed to them going to valiant under the hostile takeover. We may see a couple of foopfize. The other one may be focused on established products, ones that have lost pa tercht protection or will lose patent protection. It will be much more about cash generation, maybe more targeted deals in emerging markets. We could see a couple of entities emerge a couple of years down the road. The innovative side of pfizer will be very driven by r d. Can we very quickly ask you about regulatory constraints . Is this a situation where you think the regulators get involved . Youre looking at pfizer with a market cap of 200 billion. Another 150 added on to this. Murk is a much smaller. Will they get involved with that . Will treasury do something that would retroactively take away some of the tax benefits . Do you worry about that . In terms of the ftc and we think its less of an issue because theres not a big overlap. There are a number of large competitors spread across a number of therapeutic areas. The treasury is the big question. We saw notice come out last week that this deal, could they do more. I think its certainly possible. They have interest in potentially doing more. Thats going to be the biggest risk that people will keep an eye on. Is the administration going to allow a company of pfizers size to leave the u. S. For tax purposes. A lot of people wonder if thats possible. If not, what will they do . If they do something, how might it impact other companies . Invert it . True multinational company. Are they going to be impacted if the treasury feels the need to act very aggressively to prevent pfizer from leaving the u. S. Thank you. Thank you. See ya later. Tide is expanding beyond the laundry care with the latest innovation to care for your clothing. Tide dry cleaners. P g has a subsidiary that will help you if you want to get a franchise. This is when you know youve trusted tide for more than 65 years, michelle, and now in my washing machine. And now the company has created professional dry cleaners that you could never quite package in a box or bottle. Very hard to put an entire dry cleaning place in a box or bottle. This blends science and service to actually help bring faded colors back to life. Not only that, it removes stubborn stains with every load every day it says. Im not selling p g thats not where im going. Im not a bengals fan. I do realize that. You see what happened again . Yes. They want you off the bandwagon. Someone said i hope you didnt watch that hope you didnt watch the Third Quarter. I did not see a kickoff, a snap. I know better. Although i heard this time it was an andy dalton fault. Theyre like 0 and 500 in primetime games. Thats too bad. I thought the greatest innovation was the tide pods. I love those. Not as heavy to carry home. Right. Doesnt matter. Franchise opportunities combining seven point inspection process. Theyre all over. Yeah. Coming to a town near you. Tide dry cleaning. We do have much more to talk about today. When we return, a big drop in gasoline prices. Could this be a big win for consumers and retailers ahead of what should be the most wonderful time of the year for the industry . Well talk about that. First, as we head to break, heres a look at this day back in history. When youre not confident you have complete visibility into your business, it can quickly become the only thing you think about. Thats where at t can help. At ts Innovative Solutions connect machines and people. To keep your internet of things insync, in realtime. Leaving you free to focus on what matters most. Welcome back to squawk box, everyone. Gasoline prices sliding to a tenmonth low. The price of regular unleaded dropped 11 cents to 2. 14 a gallon. Thats more than 70 cents below where we were a year ago. Beautiful number. 2. 14. Its 1. 70. Do i hear a one handle. Indiana was 1. 79. Excellent. Premium . No, thats for regular unleaded. European stocks dropping in early trading. Hit by falling commodity prices. Wilford frost is walking the wall in london. Hey, wilford. Hey, michelle. Yes, indeed. Prices down so far in europe. Of course, last week the best week of 2015 for the s p 500. It was strong for europe at threeweek highs and had the best week for a month. That hasnt carried through today. Were looking at declines for most of the major markets. We had some data out and pmis for the most part were better than expected, especially in germany, which was a surprise. May suggest that the country is shrugging off the fallout of the volkswagen scandal. Well have to wait, of course, a little longer to know for sure. French pmis were soft on the services side. 8 decline there. Germany doing well. Ftse 100 down 0. 8 . If we look at the biggest minus, the weakness has played a part in their declines the likes of bhp, glencore. That has weighed on the sentiments for the ftse 100 but for europe as a whole. Ill round off with the euro dollar which as you can see for around about a week or two now it really has stayed at the low 106 handle. 1. 0627. That very much focused on decembers Central Bank Action as opposed to anything else. As we stand here, declines in europe. Guys, back to you. All right, wilford. Thank you. When do we hear about currency moves . The dollar can appreciate as long as its orderly. You see how long weve been. 1. 06, 1. 07. Reuters line this morning the first attack on 1. 06. First attack. Well see. Below 1. 06. They said it was getting close to below 1. 06. Another fed official making a case for a rate hike in december, seems like that might be done, but John Williams, San Francisco fed president , is he involved in like this new star wars movie . He is. In the new star wars music how does he do both . You remember Michael Jordan running westing house and i was thinking of the other Michael Jordan playing baseball and basketball. Thats why i said Michael Jordan. He actually did do both jobs himself. He he didnt run westing house. He actually never really did baseball. Anyway, i dont know if he ever actually hit the ball. Not that i could. Saying in his words, assuming that we continue to get good data on the economy, a strong case to be made in december to raise rates. Ill tell you what we decided last week that finally made sense, guys. We said theyre going to do it but given the back drop its going to be like one and done. Not only the slowdown slower slowdown or faster slowdown in europe, but you look at retailers here, you look at manufacturing, china. They want to get one on the books but if it was really one and done, you dont need to do the terminal pricing up at 3 . The dollar probably sees its lows somewhere its highs somewhere in here. If its one and done were back to the races. Were right with you. We believe in the december hike. We think liftoff comes there. What we think the fed does is give us four quarter point zblieks they do . Yeah. So it goes to 1. 1 . So its not one and done. 1 and done. Then we stop there. We think the fed by next september stops the 1 . Now, a normal fed funds rate over the last 70, 80 years is like 5 . So 1 is still a relatively de minimis number. The market could handle that. It could be that they stop at 1 4 if things fall. That doesnt give them ammo to attack a recession but it also doesnt mean they need to reverse it like these other Central Banks have done which is embarrassing. The dry powder argument is one weve talked about. 1 4 point is not thats why we like to get back to 1 . Theyve reloaded a sense if there is a problem. Are they using negative rates or dry powder. Core cpi at 1 . Put it at 2 and the 10 year bun should be close to 10 . In august when we saw the s p pull back 11 in six days you only had a tiny rally in the ten year. How steep account yield curve get. It almost doesnt matter what the fed does. I was going to ask. Weve seen all of this talk about whats happening at the short end and at the long end it hasnt budged all that much. Where do you think it is . Do you agree 1 by september of next year . If then whats happened in ten years . I think it doesnt matter that much. The ten year has to drift up. Its got to get at least halfway there in 2016. Something with a three handle. That natural point is going to get to somewhere around 4 over the next couple of years. If it gets halfway there youre still talking about a good 100 basis points rise almost regardless what the fed does unless they start coming out yelling bearish things at us. How are earnings next year . Earnings we think are going to be fine. Sort of, you know, mid single digit. Increase in mid single digits. Does the comparison with the Energy Sector get easier or stay tough . Well, we think they get easier because crude down here at 40 bucks is close to retesting the 30 auto low. As you look out into next year, rig counts are down by more than 1,000. Finally. Well get another brutal winter in the northeast and midwest. Expectations overseas is marginally better next year versus this year. We would expect to see crude retest that bottom and start to work its way higher at some point next year. Wells fargo tells us that 75 of the earnings misses in this country over the last two years had been energy related. So if we can sort of lack this collapse in Energy Prices, then that part of the decline should begin to dissipate. Dollar is as strong as its been so but, were getting kind of used to that. I dont know how much more the dollar can move given the fact that the fed, that gap between the yields in the u. S. And europe would have to keep getting wider and wider. Will domestic stocks do better than multinationals . You saw that big pmi number in europe. I do think theyre starting to be a bigger opportunity in europe. In the u. K. When you see values in the u. K. That are commensurate with an economy thats healthier. There are opportunities. Stocks based here that have to bring back the money in dollars where its 20 you know, how much less is it . Were still dealing with that, right . Its billions of dollars. You can say its just currency but its still billions of dollars. Thats right. Thats why there is a little bit more of an opportunity outside of the u. S. In the equity markets. If you strip the Energy Earnings out, the s p 500 earnings dont look badly. The one thing i would note thats interesting over the past couple of months is that high yield spreads have not gone the way. Equity markets. As we saw this big snap back in the equity markets. High yield spreads 34506d basis points higher over the last four weeks. Thats energy related, too. Perhaps a little more of a relative value. Opportunity or are you staying away from it . No, i think as we bottom out. If were bottoming out as far as anniversarying Energy Prices theres opportunity and over reaction in the high yield market. All right. Thank you. Phil, thanks. Happy thanksgiving, guys. You, too. Nice tie you have on. Its the young thing. The wide knot. Its a euro thing. Euro wide thing. Thats a bib almost. Double windsor. You didnt tighten it. Then its like yeah. Its a thing. You did that on purpose . Absolutely. Look at silk. Thats a tie. And ive got my turkey dion for thanksgiving this week. From turkeys to pictures of cats y. Pictures of cats in belgium are trending on twitter today. Yes, cats. Stay tuned. Squawk box will be right back. what . Wow. Yeah okay. Guys, ill be writing a new language for machines so planes, trains, even hospitals can work better. Oh sorry, i was trying to put it away. Got it on the cake. So youre going to work on a train . Not on a train. On trains youre not gonna develop stuff anymore . No i am. Do you know what ge is . Welcome backs, everybody. The box office it was a beak weekend. That weekend before thanksgiving traditionally is. You would normally see a movie that grosses over 100 million and say, wow, that is something else. This weekend though it was the final installment of the hunger games. This is the fourth movie that theyve had. Theyve released them right before thanksgiving every year for the last four years. This came in with 101 million. Believe it or not that was actually disappointing. It was below what they had released last time. The highest series in 2012 came in with 152 million. That was one of the highest openings of all time, but this was below the last installment which was below the second installment. Have you seen all of them . I have seen all of them. Ive gone for Opening Night with the girls for the last three installments and i think i understand whats happening is their audience is kind of aging out of some of these things. Its been four years. The books were big and popular before that. The kids are getting older. I dont know that its still bringing in a new audience. 100 million is nothing to sneeze at. Great franchise. It is. Apparently Donald Sutherland is in love with catniss . Yeah. Really . I assume its not in love with jennifer whats her face. No, in the movie. Oh, i believe what did you think that the old man Donald Sutherland is in love with thats possible. Happens in new york. Dirty old man. 60 years. Would not be the first time. 60 years. Ive heard half plus seven. That makes sense. Half minus seven. Half minus seven. Half plus seven. Half plus seven. Now youre a pervert. That does make sense. I didnt think that in seeing it. Yeah, he is definitely enthralled with her and a little obsessed. That would be weird if he was. Hes a big threat. Is Lenny Kravitz dead or alive . I didnt see him in the fourth installment so i think hes gone. He is dead . Yeah. How about woody from cheers . Yes. Okay. We see were going. The hunger games . Oh, yeah. Its great. Have you seen all of them to this point . Oh, yeah. Yeah. That is not the worst content that i watch. If i can, you know, get 1600 calories of buttered popcorn youre in . Im going. I wash down the popcorn with twizleers, too. You can drink the soda with the twizzlers. Thats good. I bring bacon straws. I bring those bacon straws. Cats, cats in brussels. The terrible situation in brussels over the weekend. Big lockdown. The authorities asking people please dont tweet where you see us or our positions and so everyone in brussels responded with with the hashtag brusselslockdown, pictures of cats. They flooded it. Heres one example of one of the tweets that went out in the middle of the brussels lockdown. At least theyre keeping their sense of humor. To fill the vacuum if we assume that the suspects are watching twitter for that kind of information. Instead they would have to really swim through all of these other tweets. There were thousands of them with cats. Doesnt matter what country. The whole Film Festival in new york over at that store where they did nothing but cat videos from the internet. Thats universal. It was sold out. I dont know how theyd know. If cats could, they would kill their owners. Really . Yeah. Not my kitty. Im not surprised. Theyre aloof. Its like, come here, come here, come here. Theyre like women, right . Thats not what i was going to say, but theyre very aloof. Theyre very aloof, whereas, dogs, you never have to question no, my cat growing up followed me everywhere. Me, too. Ive always been allergic. Maybe they can tell. They wait until i start have you ever seen them turnover and they go like that and they run off. Bad vibes. Maybe im sending out bad vibes. When their back arches like the cutouts. Do you see what lions and tigers do to people when they try to hang out with them . Yeah. If they were bigger they would try to kill you. They dont like you. Mine is domesticated. My cat was always like a dog. I miss my kitty. Anyway, coming up, is the American Consumer ready to shop or drop . Were going to ask the ceo of hudson bay, and thats gerry storch coming up. But despite the great progress that we have achieved, there are still too many veterans who still need a place to live. This project is a comprehensive rehabilitation of the centers facility here in Downtown Boston to create permanent supportive housing, transitional housing and service spaces, a facility that really delivers on societys commitment to people who have served in the military. Citi® was the Financial Partner because they were able to come with the resources, both the Capital Resources and also the human resources, the experts in their fields, and without citis partnership we probably would not be in construction right now. The goal for us in this project is to be more effective in the services that we provide so that veterans who have committed to put their lives at risk to protect this country have a home in this country. Today, were seeing new technologies make healthcare more personal with patientcentric, digital innovations; from selfmonitoring devices that can interpret personal data and enable targeted care, to Cloud Platforms that invite providers to collaborate with the patients they serve. Thats why over 90 of the top 25 Global Pharmaceutical Companies are turning to cognizant. Our domain experts, technologists, digital and data specialists, clinicians and scientists are transforming the way Clinical Research sites collaborate with pharmaceutical companies, and enhancing Patient Engagement with innovative platforms and solutions. Our populations growing healthcare needs present growing opportunities for our clients to advance the future of medicine with digital, and improve the quality of lives. Welcome back. Major retailers planning to open on thanksgiving day. On that list you have lord and taylor and sachs. Those are two companies owned by hudson bay. The ceo gerry storch joins us. Good morning. Lets talk about whats happening in retail. Very early. Weve heard alarm bells going on. The weather has been bad. People havent been shopping. What do you think is happening . I think lets talk about what we know and dont know. What we node is Third Quarter results were erratic. Bad news. There were good news, too. The consumer was there. You certainly saw softness on some of the apparel names. The strength in the offprice retailers. T. J. Max, discounters like kohls, walmart numbers werent bad. People like home depot, lowes. Numbers werent bad but they were off lowered expectations. They were good for them compared to where theyve been historically. What you didnt see there was some kind of apocalyptic change in the consumer, stories that are really ridiculous saying were reaching Tipping Point because you saw more of a sec to recall shift than you saw a consumer that has vanished. You did talk about the discounters doing better. For sure. I think theres some reasons for that. Among those are the consumer has been valued. Weve talked about that on this show for two, three years. Again, thats why we keep investing in sachs off fifth and the fine lord and taylor. Thats where the consumer wants to be today. People offer value did well. The other thing is there is no doubt that the weather is an issue. Its been very, very warm. I saw moriah carry putting the star on the Christmas Tree with a sweater. Thats not a longterm factor. The weather always changes. Christmas always comes. Theres an issue with the International Business and the euro at 1. 06. I wont mention the real, ruble. Theyre not in new york anymore. Certainly thats a factor, too. These are all shortterm cyclical factors. Theyre not long term sort of Death Department store. I think thats been way overblown. Meanwhile, its november 23rd. Still over a month to christmas. We havent hit thanksgiving yet. Way too early to be calling the shopping season or saying anything. The Third Quarter numbers were in august. People were in the hamptons. You mentioned during the break you have stores in belgium. Yes. That have been shut down obviously because of the situation there, the lockdown. A big part of the business . Generally speaking, what do you think in term ever when theres so much fear about terrorism. Its our smallest country. Very small part of our business. We are a global retailer. Were the Largest Department store in canada, for example. Very, very, very well in canada. So we are quite the leader there in that market. So fantastic there. U. S. Market weve been talking about. A little more mixed. Saks fifth avenue. , in new york our biggest presence is in germany. Germany is a great market, robust economy. Overall good things there. We do own the store . Belgium, too. Four stores. The ones in brussels have been closed for three days now. Its a trivial part. I dont mean that in a negative way. Its a small part of our economic posture. In a situation like that all you care about is safety, safety of your people and safety of the zblum it raises the question about all of these threats that are potentially out there not only in belgium, not only in paris but in other areas. What do you do with Something Like that . We operate target, marshall fields. There is a shortterm impact on the business but everyone adjusts. Thats the great thing about value added. In almost every circumstance people rise to the occasion. I wouldnt expect the effects to be long term. I think the important thing during any of these disasters, for example, when the tsunami hit in japan, that was a toys r us. The focus has to immediately turn to your people and your customers and safety and then you move on. Lets get back to the Holiday Season. You mentioned that there are a lot of shopping days left before christmas. The problem becomes if theres too much inventory. If the retailers lit up on that. We heard that saying theres only so many days between now and then we have a lot of inventory we have to discount. He said something i agree with. With all the noise and all the talk, there will be an amazing time for the customer. For example, saks fifth avenue were starting black friday on wednesday this week. Were offering a lot of deals on wednesday. We have additional deals on friday. So thats the first time weve ever done that at saks. Lord and taylor. Cashmere sweater for 39. No one is going to wait to find out what happens. People are going to move now given all the noise thats in the environment. If youre a consumer the deals will be amazing. Cant start friday on wednesday. Ive tried. Some people start boss wont let him. Sometimes we start it on thursday. Im going to this week. I promise you, i think im back here in a week so someone is going to say black friday was down year over year. Thats because you have to add together all the days that now constitute black friday which for some people started yesterday. Very confusing. Well sort it out. All righty. Thank you. Great to see you. So coming up, toys are always a huge part of the retail story and this year is no exception. Were going to talk about one Small Business success story. Trying to make it big in the space. When squawk box comes right back. The toy business is highly competiti competitive. Up ear comer goldie blocks are hoping to separate it from its pack. We are joined by the creator of goldie blocks. Good to have you here. Andrew must have been off this week last year because i interviewed you a year ago when i was filling in. You went to stanford engineering. You wish you had engineering toys when you were growing up. Now you have goldie blocks. How is it going . Going amazingly well. Weve been growing. We tripled our product line. All of our toys or intercom patible. Now that you have these products you can build almost anything. Were in 6,000 stores. We launched in walmart and costco and barnes and noble and only getting bigger. Sales growth how is it growing . Sales are growing. Doubling yearoveryear. You mentioned lego. We just had the retail ceo on before that said the dominant player in construction space is, of course, lego. They have lego for girls. Is that your main competitor, do you think . You know, goldie blocks we make construction toys. Were creating a brand for girls. They can grow up thinking invent, building and coding is cool or maybe cooler than being a princess or pop star. Does it work these little girls are so impressionable. Building and inventing, engineering, i promise. When they do that kind of thing. Normally they grow up with tea parties. But when you take a girl and show hey you can build a 13 fft zip lines and learn about pulleys thats more fun. Girls are calling themselves inventors. They dress up for goldie wearing overhauls and a tool belt. Its amazing what you can see to inspire them from a young age and develop their interests. Where your manufacturing . How are you distributing . We manufacture overseas in china. Okay. And what are the biggest hurdles we talked about this a year ago. Now a year later whats the biggest hurdle you face . I think the biggest hurdle is still getting the word out. Building awareness. Were small. Were a start up. We dont have the massive Marketing Budgets that the big guys have. But we have this social mission. People recognize that. And people are empowered by it. So getting the word out to patience, having them understand why its important for girls to grow up building and inventing. They are the Fastest Growing jobs, science, engineering and math. So we absolutely need to build that interest in skills for girls at a young age. 14 of engineers in the u. S. Are women. Youre introducing a doll. Seems counter intuitive to what you were talking about, a doll is a girl thing, isnt it . We call her an action figure. An action figure. Goldieblox, these Action Figures instead of dress up its about what they do. They are building thing. Solving problems. Saving the day. In role play thats the kind of women girls want to be when they grow up. Congratulations. Thank you. Good luck. When we come back, we have more of this mornings top stories including a 150 billion drug merger. Right now check out the futures. Youll see thing are relatively flat. Stick around, squawk box will be right back. 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. Hi watson. Annabelle, your birthday is tomorrow. Im turning seven. What did you ask for . A princess. And a pony. You like things that begin with p. I like pink frosting too. Will you have a cake . Yeah. I was too sick to have one last year. The data your doctor shared shows you are healthy. Are you a doctor . No. I help doctors identify cancer treatments. I want to be a doctor someday. I can help with that too. Watson, i like you. Pfizer and allergan merging, for more than 150 billion set to transform the pharmaceutical industry and reignite political debate. Bringing back the buy back. Companies are purchasing the highest number of their own shares since the financial crisis. But not everyone is happy about it. Well tell you why. And, time off. Facebooks Ceo Mark Zuckerberg plans to take two months off from work after his first child is born. And some say this is how america could look at paternity leave. Its monday, november 23rd and the second hour of squawk box begins right now. Announcer live from the beating heart of business, new york city, this is squawk box. Welcome back to squawk box, everyone. This is cnbc, first in business worldwide. Im becky quick along with john kerry and michelle carusocabrera. Theres a developing story out of europe. A major european city remains on lockdown. Raids in brussels overnight led to the capture of 21 people but not a key suspect in those paris attacks. He remains at large. In the meantime u. S. Cities are conducting drills in a quest to keep the homeland safe. Well talk more about the isis threat and war on terror with this hours guest host, the president of eurasian group. Heres the other top story. Crude oil is getting crushed. Oil prices dropping about 3 this morning on words of over supply and also stronger dollar. Its at 106 this morning. Walmart decided that cyber monday will be on sunday. The retail giant will unveil its Holiday Season online deals this sunday instead of monday as in years past. Remember cyber monday used to be about having highspeed internet at the office but not at home. Black friday son wednesday. Its all screwed up. Amazon did black friday last friday. At least on a friday. You cant do a friday on a wednesday. I tried to do fridays on wednesdays. Peace breaking out. Uaw leaders ratified an agreement with General Motors several weeks after workers approved it. They approved a four year labor pact after the agreement might be voted down. Now to the big deal news. Pfizer and allergan agree to a 150 billion tie up. Were waiting for official world but this would create the Worlds Largest drugmaker. 160 billion in value in this deal. It looks like it will be structured as technically allergan buying pfizer although pfizer is the Larger Company and allergan shareholders will get the premium. Looks like 11. 3 pfizer shares per allergan shares. Basically what this would do for pfizer enable it to move across the i under we might have news moving. Moves pfizer tax base to ireland, lowering its Corporate Tax rate. Accelerates pfizers growth. Allergan is a higher growth company. And a potential split up of the company within a couple of years. We are having it hit right now. It looks like its come across. More than 10 of freedom in 2019 with percentage increasing in 2020. Combined operating cash flow in excess of 25 billion. Looks like right now terms are as you say 160 billion. Value at 363. Per allergan shares. 363. Its a premium. What did they say the expected tax rate. 17 to 18 . By the first full year after the closing of the transaction. So of course the question becomes does this raise more political ire with the proposed treasury rules. It looks like this deal, pfizerallergan was in the clear. Do we have the amount of the Company Shareholders would have combine . It looks like 44 . This makes this deal not subject to the new treasury rules around inversion. Thank you. I dont see that number. Allergan shareholders will own approximately 44 of the company on a fully delivered basis. Why would that make it not the new treasury rules just go up to you have to own between sorry. If target Company Shareholders owned more than 40 of the combined company these new treasury rules dont apply, doesnt go to that threshold. Moves the threshold 60240. If you have somewhere between 60240 youre in a top spot. Allergan shareholders own so much of this company they are not subject to these new treasury rules. Kind of weird. You think of pfizer as lipitor and these incredible drugs and allergan is like a cosmetic, almost like makeup. Theres a lot of therapeutic uses for botox. Before head wrinkles. They are testing it in depression. If you cant move your eyebrows you cant be depressed. If i put a smile on my face in the morning i feel better every day. Exactly. Same thing if you cant frown. Thats the hypothesis. Come, seriously . You can put it in your armpits to prevent excessive sweating. Your armpits would be depressed. Wrinkly armpit physician you have a sleeveless dress nobody wants that. You have big wrinkles in your forehead. What percentage of the concern is why are you talking. Nobody introduced you. They did, im sorry. You missed that . What about taxes . Seem to me given the coverage a very big piece why they decided to do this deal was to bring taxes down. In the election cycle i dont see how that doesnt become an issue. You dont see how candidates dont pick up with this and run with it. Your side wants to i dont have a side. The other side wants to merely prevent it from happening not change the overall Corporate Tax rate so that it doesnt happen. Right thats correct. We cant do that until next year. When you look back on this time period and think of all the companies, Drug Companies that have left, how horrific and embarrassing it is that congress didnt do something. Every one of our prime assets here are more easily purchased by companies somewhere else because they can pay more than domestic competition. They want to be protectionist and yet they do the opposite things. You hear sanders and Hillary Clinton say we won let our companies go over there. But that doesnt do anything for all these losing all these crown jewels to foreign buyers. Cherry picked left and right. Fine. Be stubborn. Thats how shes going to raise revenue sharply increasing taxation on all u. S. Companies. So more of them will move. Thats how clued in she is about the world. S p coming off its best week of the year ahead of the holiday shortened week. For more lets bring in our Global Market strategist and then ian well talk to you about the week. The world. We felt we were in a world like this. But never this much before ever. You got some answers for that . I do. Thats a tease. In this new world, i mean there are people making the occasion that you need to be aware of the possibility of an event in everything you do from now on and maybe staying domestic situations, maybe not as global. Where are you on that . I agree with you, joe, that i think you need to be aware. This is a part of our daily life. Its very unfortunate. At the same time im not sure anything new today versus a week or two. These terrorist threats have been around for a long time. But we have not quite figured a way how to track them or eradicate them. Its a concern. But look at the market last week, for example. Despite what was a very difficult situation in belgium and paris you had the market that rallied 3 in europe and the United States and close to 5 in emerging markets. It seems like while we as human beings are very concerned about this the market is marching to a different drum. That had nothing to do with what last weeks actions did with the federals resolve to go higher or european Central Banks . They will stay much easier. The word is divergence, weve gotten closer to that divergence. We have the fed minutes that reveal yes they are closing in on december and at the time the icb minutes closing in on december as well. So the markets seem to like that because ecb supports the assets and the fed maybe is giving us a clean health check in saying the u. S. Economy is on solid footing and we can with stand that rate increase. Ian, well get to you later, but its hard to talk about this with you sitting here. Al qaeda, you know, for one reason or another, i guess they are fixated on planes and big not as much of the two guys with the ak47, there were never as many participants. What it means to be linked is changing, its softer, more flexible. The real point here is the vulnerability that the markets have especially in europe are greater now than they were at any point during the eurozone crisis. Thats not fully appreciated by the markets. I want will be. The fact were dealing with terrorism, our view is very much like it was before pearl harbor in world war ii. If you track our issue on refugees its identical. You can play populism with that. Why do we want boots on the ground . If you look whats happening in europe and the geopolitical implications of this will last for a long time, the europeans arent are our allies like they used to be. They dont feel that way. They are incredibly vulnerable. Their economy is incredibly vulnerable to large numbers of muslims that feel des disenfranchised. Ceos arent saying i cant put money because of that not just yet. Countries like flans even starting show an economic pickup. In 2016, youre just not going to have that level of confidence. This will play in the marks not just yet. Probably play out selectively. One thing, we have colleagues around the world and in europe and in belgium. What they are saying the city is a ghost town. Schools are shut down. People are not going to the office or shopping. Maybe youre starting to see this Economic Impact goes beyond just a day or two. But when i started to think about this, this difficult situation, if youre forced to avoid the Shopping Mall where do you go . You go online. Maybe what this is driving, this is contributing to a change in consumer behavior. We talk a lot about not going the mall, the brickandmortar suffering and online retailers doing well. Maybe this ongoing threat thats front and center will further exacerbate those changes in consumer patterns. If we dont go to cafes and have take out the restaurants will find a way to be flexible. When Francois Hollande asked his parliament for a three month state of emergency, the impact that has on the french consumer is real. The impact it has on French Consortium confidence and sentiment is real. Youre just not going to feel in europe the same way you did about the future. In the back of our mind were thinking about there go for the grace of god. Isis sympathizes in all 50 states. One in alaska. 900 people. How hard would it be its a lot. Christmas is coming up. Is there going to be any terrorist attack of any sort in the coming year, sure theres a likelihood of that. If you ask the reason why in france youve had these attacks is not because they didnt have credible information on these people but the enormous numbers when 7. 5 of your population is muslim and disenfranchised they are not integrated harder for you to get inside that community and you need 25 intelligence acts to monitor and track one of them. The french government had credible information on all these people, they were on the watch list built they didnt have the manpower to deal with it. The United States doesnt have that situation. In this country we had so many waves of immigrants and children of immigrants and grandchildren of immigrants were taught to are incredibly grateful to the country that gave their family refuge. Thats not happening in france. These people do not look at the country and say thank you for giving me family Economic Opportunity or shelter. They turn on their host country. Not just france. Its across europe. The european nations do not integrate well these people when they come in opinion they dont think of them as french or german not just with Syrian Refugees but turkish guest workers. In turn those migrants that come in are not integrating into those societies. Is it a chicken or egg which came first hard to say. My grandmother came from aleppo into ellis island. The americans have always done an extraordinary job. Maria bartiromo and i were together, we were kids and grandkids of people that went through. The military turned out in huge numbers to applaud this stuff. We do it every year. Yet when you see the reactions in the United States right now based on ignorance, based on fear but politically useful, 31 governors saying im not taking any refugees, another generation or two generations well have those problems. Its happened here before. It has. It can happen again. Thats why i brought up before world war ii right now america we dont have to worry about a border with mexico. We have the atlantic ocean. That makes us feel extremely insulated and allows us to take on well lets keep those problems overseas. Thats a luxury we have in this country. The reality is were not isolated from the problems that are across the atlantic. What happened in paris can happen in the United States as well. So the focus so much needs be not just on destroying isis where it externally but being able to track what might be happening in the United States as well. So what one of the investment locations from this is Defense Budgets every where and United States, france and every where will likely get a boost because of this. Thank you very much for coming within us. Ian will be with us. The high terror alert in europe and the hunt for a key suspect. We have a live report from brussels. Squawk box will be right back. Security forces in brussels carrying out 22 raids. Maintaining their highest terror alert for the Third Straight day. Reporter thanks. The manhunt here in brussels continues despite as you mentioned 22 raids in the last 24 hours. 16 individuals taken into custody. But the main target of this crackdown is a man believed to be part of the terrorist attack that took place a week and a half ago, a man called Salah Abdeslam and he remains at large. What i can tell you is justin last 13 minutes we heard further seven raids on homes have happened around the main city. Five suspects have been arrested. That totals 21. You get the sense the pressure is increasing, the net is closing in. Obviously far bigger than just one man here. Its far greater. We are looking at a city operating under a heightened level of security. In fact the highest. We just made five to ten minute walk across the city. Ill show you behind me. Just outside the Central Station despite the fact that the subways here are shut for the day the main station remains open. Whats not normal is the Armored Vehicle you see. They popped up all over the city. Greater sense of soldiers, military police. People have a greater sense of security here in a very uncertain time. I was saying to you earlier on the show what im hearing from the people, its too over the top. Despite the fact that the Prime Minister of belgium said yesterday they have specific information that they believe theres a fear of an imminent attack in this city perhaps in multiple locations. A copycat is what we saw in paris. This is what the authorities are dealing wax very fine balance between cracking down or cranking up the pressure. The manhunt continues. Back to you. Thats the ultimate question there. Thank you. Coming up gas prices falling just in file for the Holiday Season. A look at the latest figures and what you could be saving over the pump over the next month. As we head to break check out shares of pfizer and allergan. Allergan dropped by more than 2 . Stay tuned. Squawk box will be right back. Ahhh ahhhhhh. Liberate your spine. Ahhhahhhhhh. Aflac and reach, toes blossoming. Not that great at yoga. Yeah, but when i slipped a disk he paid my claim in just one day. Ahh so he had your back . Yep. In just one day, we approve and pay. One day pay, only from aflac. [duck snoring] i watch for the perfect moment. A the one nobody else sees. And when i find it i go for it. announcer at scottrade, we share your passion for trading. Thats why we give you the edge, with innovative charting and trading features, plus, powerful mobile apps so youre always connected, wherever you are. Because at scottrade, our passion is to power yours. They come into this iworld ugly and messy. Ideas are frightening because they threaten what is known. They are the natural born enemy of the way things are. Yes, ideas are scary, and messy and fragile. But under the proper care, they become something beautiful. Welcome back remember everybody. Some good news for holiday travellers. Gas prices are beginning to drop again according to a survey. Gasoline has gone down 11 cents in the last week. 2. 14 a gallon on average. It came from a large over supply. Oil prices brought down gas prices. A holiday gift to consumers. Prices may continue to plummet in december. Coming up, how early is too early when it comes to the Holiday Retail season . 140 million americans plan on shopping this weekend. The former chairman and ceo of saks will join us after the break. And as we head to break take a look at equity futures which are now positive after being down after the early session. Welcome back to squawk box, everyone. This is cnbc, first in business worldwide. Lets talk about some of the stories that are front and center this morning. First up the pfizer combination with allergan is now official. Word from the companies that allergan shareholders will get 11. 3 shares in the combined company for each share they now hold. That deal is valued at 363. 63. Allergan shares are trading down this morning, down around 307. If you put this in context, today trading is low, 240 as recently as october 20th but still this raises some concern. Maybe people are wondering if treasury, the u. S. Treasury department will get involved and maybe change some of the rules. Based on the ownership in this, pfizer shareholders will hold 56 of the combined company, allergan shareholders will hold 44 and will not put them in danger of these treasury rules. But there are some questions as you look at that market today. Such a big deal would treasury go a step further and try to do something retroactively. Electrolux is denying its in settlement talks with the government. Two sides are now in the midst of a trial over that issue. Were getting the latest read on the Housing Market later this morning. October existing home sales are expected to drop. Joe. Facebook Mark Zuckerberg announcing hell take two months off when his daughter is born and no word on who will be running the cone in his absence. The social network allows his employees to take up to four months off for paternity leave. 21 of employers surveyed offer paid maternity leave, 17 offer paternity leave. Were trying to draw conclusions whether this will be a watershed for other dads and i dont know. Theres not too many zuckerbergs around. The question isnt whether he can afford, is question is why do you ever go to work. When youre worth 50 billion why are you ever there. Most dads say i cant afford. The company is moving forward. There are things being done. Thats what it could change. The boss takes paternity leave it makes it okay for other people. For those on the fast track its something you think about. Women as well. Mark zuckerberg, he likely his situation isnt analogous to anyone elses situation. Drawing a conclusion what other people do he can lean back. Hell be just as relative. He has 14 livein nannies, right . Black friday is just days away but this years Holiday Shopping season may have kicked off early. Consumer Holiday Spending survey almost 57 of those celebrating the holidays have started shopping by early november. Thats up 55 from last year. Joining us the former chairman and ceo of saks. Weve been trying to get our arms around whats happening in retail. Are we over hyping whats happened . The consumer is relatively healthy. If you look at the overall numbers its tracking in the 4 , 5 growth range. The problem is that they are buying experiences, they are going restaurant, buying cars, not buying apparel. The numbers weve seen out of the retailers in the Third Quarter from macys and others reflecting difficulties in apparel the weather not so much the consumer is not doing well. Earlier, the death of the Department Store has been greatly exaggerated. Absolutely right. Some Department Stores have issues. They have to adapt. Several are adapting. Overall the consumer is healthy. Department stores have to change. What do they have to do differently . They have to bring in more experiences. I think some things nordstrom is doing is brilliant relative to taking the internet experiences. Bringing them into store and merging the internet with the store experience. He also talked about how value is doing well. The off the rack and all that kind of stuff. When you start shopping at places like that, you start to wonder why would i ever go back to a Department Store when those high end names are almost immediately discounted anyway. Value is an important component. The consumer wants to see value. Value can be quality as well as price. I think theres a major component thats going off price retailers. Luxury is not is going to die. Youll see consumers that want those products that are hand made. If all youre doing is slapping a name on a poor quality product that wont sell. I do believe its going to be, youll have a very high end luxury market. Its not growing as fast as it used to be. A lot of it is driven by tourism declines. But i believe the consumer will gravitate towards the value brands as well. Different segments of the market. In terms of what will happen this Holiday Season is it too early to say or are we already concerned because of the weather and because of the large inventory . You heard it from jerry this morning and terry a week or two ago that its going to be great for the consumer. No question theres more inventory out there than we need and that youll see discounting. Youll see black friday coming early. Everybody is breaking sales. It will be lower prices and even to the Fourth Quarter margins. The price of gasoline we were talking about in some parts of the country below 2. Does that eventually snhelp . 80 of the price decline is being spent back by the consumer. But look at the home depot numbers. Look at the restaurant numbers. Look at the car numbers. The consumer is buying. They are just not necessarily looking at some of the traditional apparel retailers or specialty apparel retailers. The consumer is out there. The Holiday Season will come in probably close to the 3. 7 thats projected. We talked a lot of terrorism threats, whats been happening in europe, how does that play out here . Its a concern. I think were all on edge. And worried about whether well see something in the u. S. If an attack on a mall were to take place. I would be very worried about what would happen with the consumer in term of a very short term paralysis you would see. Ain, this has to be something youre thinking about, the economics of what happens here in the United States . I do. I also wonder because the timing of this is so horrible from every perspective. 9 11 when it hit you could not have asked for a quoteunquote better time. Bush was at the beginning, very popular of his presidency. The economy was doing well. We western in an electoral season. The allies were strong. This is hitting in the midst of an american president ial election, the French Election is coming up, you have the refugee crisis, the alliance is weaker. The politics being made in the u. S. And on the back of this Natural Disaster is worse than ive ever seen following a major disaster in a developed economy and that has to play into the economics if it continues, right . Certainly, you know, you imagine god forbid a big attack in the u. S. What will that do the political style not in terms of who is in front but how does it change the nature of the debate . The economics of all of this will just go away and suddenly it will be a massive terrorism and secure immigration debate. I think were already seeing the impact on the political debate relative to the impact of whats going on in europe. Just starting. I agree. In the aftermath of an attack in the next one, two, three months. No question. Dramatic impact. Steve, thank you for coming in today. Coming up from rising rents in new york to the impact of isis on real estate, investor bill rudin will join us after the break. Check out the futures. They got stronger. They were down earlier this morning. Now 25 on the dow. Switch to tmobile now and get 4 lines with up to 6gb each, and no sharing. Just 30 bucks a line at tmobile. Welcome back to box. Oil prices are now higher, crude had been down about 3 earlier. Prices jumped on a sawed chip press Agency Report that said Cabinet Meeting focused on the kingdoms role on keeping the oil market stable is going to happen and now the crude is actually up now after being down. Lets talk about commercial real estate. Rentals in new york city jumping over 70 a square foot for the move october and thats up 10 from a year ago. Lets find out whats happening with bill rudin. Bill, great to see you. Whats happening . You figure at some point you hit some sort of a ceiling on these prices but not yet . First of all welcome to new york. I think whats driving, why youre here. The trend of urbanism. People coming back. Companies want to be where the employees are and thats driving the whole market whether its residential or commercial. Were seeing it literally throughout the whole city whether its midtown, downtown, brooklyn, all over. Theres this incredible demand for talent, the talent is moving here and the companies are following. Thats whats driving this surge in terms of leasing activity, were on a record in terms of commercial leasing activity. Sales well overtake london and tokyo in terms of volume of sales over 55 billion worth of sales. Of office, multifamily, industrial, retail, whatever it is. Theres a tremendous amount of interest being in new york city and investing and being here. In terms of the sales, how much of that is from people who are americans who are buying and how much of that is foreigners who are looking around . They dont trust the stock market. On the residential side i think theres almost 40,000 buyers of whether its coops, condos, multifamily. A diverse set of people. We have a project in the west village, 70 of our buyers are new yorkers. Wow. Another 20 are from the United States and 10 foreign buyers. Theres a diverse set of buyers on the commercial side. Canadians. From united kingdom. Its still from china. Its literally all over the world. People coming to new york. Deal of the week last week, new york times. Yes. In the last three weeks we started closing down greenwich lane. We have 90 sold. Average price . High end product. 3,500 a foot. Wow. 26 million will get you. But there are, you know, theres product in the lower end, the middle end. Thats whats great about new york city its a diverse, theres a diverse set of offerings. Can you have office space here. How about on 57th street . Theres a lot. But theres also a lot going on in brooklyn and queens. You got literally thousands of units coming on the market. They are all supposed to be super duper multimillion dollar apartments. Is there that many millionaire people that can spend that much . Throughout the whole city neighborhoods changed. People coming living here bringing their families here. A whole different world than 20 years ago. So thats what i think the great thing about this city. This is where youre seeing the geopolitical angle playing out. In a world that will become so much more volume, people with a lot of cash see new York Real Estate as increasingly attractive. Its a place to park money when youre concerned about a government, not an authoritarian government. Youre talking about 40 billion worth of activity, so the foreign buyers is a percentage of it. Still people buying one, two, three, you know family homes in the boroughs or on the lower east side. Were about to start a develop at the Brooklyn Navy yard, they have a prelease, a third of it to a company which is changing the whole dynamics in terms of office space. They are creating these small entrepreneurial environments that Small Companies come and have the opportunity with infrastructure already in place to grow their building. One of those unicorns out there right now. High valuation. But providing a unique offering for Small Companies to be able to find space that is difficult in new york city to sign a lease, make that long term commitment. You can sign up as a 30 day member and see how are you company goes, a young woman from goldieblox was interesting, it creates an environment for Companies Like hers to have that. Have you traveled over to jersey city. Ive been over to jersey, yes. Jersey city and whats happening in jersey city. Its unbelievable. High rises. Luxury buildings. To me thats good for the region. Its a region and i want provides alternative pricing, lower cost pricing for people who want to be either live here or work here and get on the path. You dont get to your position by looking around corners and see what the next threat could potentially be. What do you worry about. Do you worry about money evaporating . I always worry about the Capital Markets and make sure theres capital flowing. Thats one of the things that helped drive, particularly in new york but all over the country, the low Interest Rates. And so, you know, where Interest Rates go its been very clear from listening to all the fed people that they will start raising rates but at a very modest pace which gives people a sense of comfort. Then we also, you know, obviously worried about whats going on in the world and see whats going on in paris and brussels. But i think our city has stepped up and you saw the Police Commissioner on all the Network Shows yesterday, the mayor on the other night in talking about how were responding to it. And we have this new Critical Response command unit you seethroughout the whole city that was already put in motion months and months ago started to be deployed last week. Looking forward the city has been proactive in dealing with those type of issues. Bill thank you for coming in today. Coming up, merger monday worth 150 billion. Investors showing concerns perhaps about regulatory issues. Allergan you would think be higher, right . This is why allergan is trading down. More on the deal just a few minutes away. In the next hour, new report on ipo and merger activity in the Third Quarter. Our unicorn slowly fading out of existence. The magical number just ahead. Our guest host, president and founder of the eurasian group. Lets talk about france. In got the impression its tough to be muslim there but tough to be jewish, there tough to be an evangelical there. Its tough to be religious in france. They are so bent on being a secular country. Muslims tell me they are asked your muslim or are you french . Which is a question i dont think we would ever pose here . Not yet. Yes. And i think that in france theres a lot of atheism thats brought with the french nation. The idea, number one that they have by far the largest Muslim Population in the country and its a nation that specifically is not interested in integrating you if youre going adhere to those religious values and beliefs. Number two the french government has been absolutely out front in attacking terrorism and extremist islam in the region much more than the brits, north africa, look at mali, certainly in terms of injury. You put those two things together of course they are the most vulnerable. They are the most vulnerable by a factor of five. Will there be any movement in the Obama Administration towards changing strategy and what about being so stubborn about the notion of changing strategy . Is that just not being able to admit there was a mistake in the past or cant you say, okay, i get it. Maybe we under estimated. Obama certainly understands his administration hugely under estimated isis. I think they are embarrassed enormously by the jv team issue. Any way to say to Francois Hollande all right we hear what youre saying and well do more. The way obama views sir area slipperiest of all slopes but not steep. Hes trying as hard as possible not to get sucked in because obama knows if he has to do more its going to be on the back of an attack on the United States. Dont do it on the back of attacks of france and the rest. He is waiting for the next guy . Is he running out the clock. I think he is. He understands syria will be handed off to the next president. It wont be wrapped up in a bowe. It will be messy. Dont get sucked in. Theres no easy solution. He knows that assad will go after obama does. He knows that. Thats an enormous embarrassment to him. The russians are the lead player on the ground. Assad im getting sucked into thinking, you know, not all strong men are bad, at least they keep order, whats in our best interests. Then i read again the butcher hes killed, you know, thousands of more syrians than isis has ever killed. The refugee crisis does he absolutely need to go or do we do a deal with the devil . I would love him to go but i dont see a way to get him out. Work with him the russians are working with him. Isis is frances enemy not elliott sadler. You cant look at that reality and say with 50 boots on the ground special forces well send any day now well remove assad. Removing assad an aspirational policy. Jeb bush was here on friday and said we should be doing this with local soldiers on the ground. It took so long for us to find anyone to train and we ended up eight months in, 50 million and trained five syrians and russians start bombing. Thats the u. S. Policy. John kerry when he sat down with lester holt, lester holt asked specifically about boots on the ground. He said no we need to get local syrians to fight against assad. We spend so much time talking about whats we should do militarily. Nobody is going to put a few thousand troops on the ground. But theres thing we should be doing like pressuring allies to cut off, find a track and cut off funding for isis. Like going to the saudis the other gulf states and saying were going cut off your support if you dont have zero tolerance with radical islam. Saudi arabia is supporters of jihadism. Youre telling them not to be what they are. You are saying the United States has been providing an inordinate amount of support to other countries in the region and thats affected by the fact were not seeing a change by the regime. No question the reality of many of these governments, not taking a very strong and real stand against radical islam is a very real cause for the problems we see today. There are moderate islam leaders out there we like. Some we dont. They are complicated but all capable of making big public statements saying we wont tolerate there. There needs a summit of these leaders saying theres an alternative to what were seeing in countries like saudi arabia and we wont stand by and allow this to persist. I dont see that as part of the debate at all not from hillary. I dont see it from jeb, rubio, i dont see it from trump. So easy to villainize refugees in the u. S. And say we need more bombing when neither one of those things will remotely address the situation on whats happening on the ground. Look its great for me. I got a job. But at the end of the day this is not the way i want our country to move. I an thank you for being with us today. When we come back this morning pfizer and allergan agreeing on a historic merger. Well take a closer look at the 150 billion deal and what it means for the sector. Officials say they wont be intimidated by isis threats. Well take a closer look how new york is confronting the evolving challenge of terrorist threats. Squawk box will be right back. 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. [ girl ] my mom, she makes underwater fans that are powered by the moon. [ birds squawking ] my mom makes airplane engines that can talk. [ birds squawking ] my mom makes hospitals you can hold in your hand. My mom can print Amazing Things right from her computer. [ whirring ] [ train whistle blows ] my mom makes trains that are friends with trees. [ train whistle blows ] my mom works at ge. Global terror alert. Brussels remains on lockdown. More air strikes on syria and america on edge ahead of the Holiday Season. We have the latest developments. Pfizer is buying allergan for 150 billion in stock. Could there be further consolidation in the sector. A moving performance. Celine brings tears to those attending the music awards. Squawk box starts right now. Announcer live from the most powerful city tip world, new york. This is squawk box. Welcome back to squawk box here on cnbc first in business worldwide. Im becky quick along with john kerry and c joe kernen and mie carusocabrera. Take a look at the futures. Dow futures up by seven points. Negative earlier this morning down by 22. Take a look at oil prices wyatt this point have been trading slightly higher, they turned around too. Down nine cents to 41. 82. This is a new contract today. We this december contract that expired on friday. January is trading at 41. 82. Heres some other stories investors will be talking about. San francisco fed president John Williams says he sees quota strong case for a december rate hike. The next decision is set for december 16th. Gold is extending losses today falling near the six year low that it hit last week. Pressure from the dollar and expectations for a fed hike. On the economic agenda today october existing home sales. After big bounce in september sales are expected to dip nearly 3 last month. The market is being held back by a shortage of homes for sale which has driven up prices and kept First Time Buyers on the sidelines. Few stocks to watch. Mixed quarter for tysons food. It missed bay nickel. Revenue is above where expectations were. Pepsi upgraded to neutral from reduced. The call reflects prospects for better beverage related growth in the United States. Viacom was downgraded to hold. It points to a weaker Growth Outlook for viacom compared to its peers. Big blockbuster merge he between pfizer and allergan, we have more. This just coming in. Pfizer and allergan combining for a value of 363. 63 for allergan shares. The company saying 30 premium to allergans uneffected price on october 28th. Thats about 11. 3 pfizer shares per allergan share. Pfizer stock holders can elect some cash in that deal. It can get the tax rate overseas. They tried to do this with astrazeneca last year. Domiciled for tax purposes for ireland. Keep their operational headquarters here in new york. This will further enable them to develop research and development. Later stages of drug development, 100 drugs, creating the Biggest Drug Company in the world. Now this raises some questions about pfizers decision the potentially split the company into a higher growth and a Slower Growth business. Company saying they will make a decision on that no later than the end of 2018. Pfizer ceo will remain the ceo of the combined company. Allergans ceo will step in as coo, chief operating officer and president. Basically the number two role there. A lot of folks think hell be the successor and hes done this before when he sold forest labs to activist it was announce when the deal was done that the ceo of activist would remain ceo but when they closed it, he was named ceo of the combined company. So we could potentially see Brent Saunders following in. Lets bring in our next get, barbara ryan a partner at clairemont partners. Allergan is 31 and buying at 36. I can get beyond that 5 difference. Is there something about seeing it at one point it was 305. It looks like a big spread. I was wondering if they thought who knows what washington does because were in this crazy election season and, you know, Hillary Clinton is out about drug pricing and Elizabeth Warren railing about corporate america. Will they try to say were not going to let this happen because they tried last week. It didnt cover this one. Dont forget, you know, pfizer an iconic american company. So they are going to kick and scream about this. Tell me about it. And i think that, you know, its the great failing of our government and administration that we cant have a competitive tax rate. But theres no question that theres going to be at a minimum a lot of headline risk around this transaction. The length of the period on how long it takes to close, six to nine months and because of the 30 premium they were talking about was based on october 28th when it was much lower this is not necessarily regulatory concerns. Pfizer might go down a little. Nothing about the spread. 15 is what people were arguing. All right. Shareholders sitting at home sees the 363 that meg put up and trading at 312, what happened to that money, they shouldnt be concerned about that at this point . No. The expectation is when the deal closes you would get that 363 whether its six months or nine months from now. Unless pfizer is at 26. Again, as you point out its priced off of pfizers stock. Pfizer stock is down. Lets not forget, when the numbers were first being discussed the numbers were 385 to 400 for allergan. Its down because you say that it didnt get that high because of concerns that it might not again, that was speculation, whether they were ever at those numbers remains to be seen, right . Thats what the market would have liked to have seen. Certainly with treasury and the concerns and voicing that they were going to do things to stop this. Should these two companies be together, tax concerns set aside, do these companies deserve to be together . The industry has been consolidating for a long, long time. Pfizer has led that. This is the largest transaction in an industry that has done a lot of transactions at 150 billion. Pfizer did the last record transaction in 1999. 90 billion. Allergan has been a roll up of a lot of specialties. Lipitor, but, again, botox. Really . And viagra. Do these kind of deals create value . Thats the argument. These mega mergers dont make sense. We see pfizer doing this over and over again. Is this good for their business. Thats always the argument. These big deals dont create value. The valuation, the multiples over time of these Larger Companies have been depressed because its tougher to grow. But i think you cant back test that against what would have happened had they not done the mergers. I think that pfizer, Warner Lambert created tremendous value for its shareholders over time, it diversified the company, they spun out which was 16 millioni. This is not the last transaction for this team. Theres still conversation around splitting into two businesses and if you think about the innovative core, pfizer is positioning that innovative core to be much larger, much more diversified with greater Growth Prospects than had they done that just as pfizer standalone. How much should we look at this in terms of this being an election year, this being a political issue. Does that put a different premium on it on the idea that something will happen from the regulators, not necessarily in another year . Theres been a conversation around strike now while you at least know the rules and the players involved and i think theres a lot of, you know, logic to that thought rosection right rather than waiting for a new administration, giving Congress Time to, in fact, address that. But by the same token i think there are organic reasons this will happen. Pfizer tried to buy astrazeneca unsuccessfully. So at the outset their goal has been to, you know, lower their tax rate. And, again, the pharmaceutical industry is a truly global industry. And the fact is that the u. S. Headquartered companies are at a competitive disadvantage. A big one. They have a higher cost of capital and they are disadvantaged whether it be in spending in r and d or in hiring employees, in every aspect of what they do because they are paying more tax dollars out the door than companies down south. Their tax rate was 25. 5 . Now jump 17 to 18. We have ceos joining us in the next hour. Tune in for more. Cuttingedge research at allergan or is pfizer obviously the i would say both. Allergan is cutting in . Botox. It cures wrinkles on your forehead. Its not like curing alzheimers. Allergan got a little bit better. I cant believe all the money spent on cosmetics. The investment isnt as high as it has been in other major pharmaceutical companies. Thank you barbara. I got a friend. Take care. A shift in isis tactics is putting the worlds biggest stoins high alert. Whats being done to protect citizens and stop isis sfraeding fear. We have a live report from new yorks times square right after the break. Bob dylan. To improve my language skills, ive read all of your lyrics. Youve read all of my lyrics . I can read 800 million pages per second. Thats fast. My Analysis Shows your major themes are that time passes. And love fades. That sounds about right. I have never known love. Maybe we should write a song together. I can sing. You can sing . Do be bop. Be bop do. Do be do be do. Do do do be do. Welcome back to squawk box. New york city officials vow they will not be intimidated bay new isis propaganda video one that features images of times square and other land marks and threatens that more violence is headed to the United States at some point. Nbc Stephanie Goss joins us from times square. Reporter you know that anxiety is not limited to europe. Certainly people here in this country feeling a bit anxious especially as we go this week where theres travel for thanksgiving. Law enforcement want to do what they can to calm those nerves while at the same time not taking any chances. Here in new york city more than anywhere else you have that effort under way. Over the weekend the nypd invited the media to a mock active shooter situation, a closed subway car, a frightening scenario. This time just a drill and not that unlike the attack in paris in that one of these shooters was actually wearing a suicide belt. You had a number of false alarms over the course of the week, bomb scares excuse me theres a little bit of activity here in times square. You can see theres some jitters here in the United States and lots of fears this country could become the next target for isis. Joining us right now is nbc terrorism analyst evan coleman. Thanks for being here. How big of a concern are these threats in the United States . How should we be dealing with this . When you see a video of times square it generates fear but its important to emphasize the footage in this video of times square, isis didnt take this. This was taken from stock video. Its always disturbing when you see someone were a suicide bomb vest. Isis would love to attack the u. S. Homeland. I can tell you from working with the donl and fbi on isis cases here in this country dourks not see the advance networks here that so far what weve seen in belgian and paris. You dont see people building suicide bomb vests. That doesnt mean theres not a threat. The threat is more about lone actors, one or two guys. Again it doesnt take a ph. D. To murder someone. Were not seeing the level of sophistication so far as in europe because there arent as many folks in the u. S. Who have traveled to syria, got training from isis. Most of the folks here in the u. S. They are limited to internet contact. They dont have the training necessary to do something on the scale of what happened in paris. But it only takes one guy. Thats the problem. And weve seen individual cases of folks here in the u. S. Who are basically on a double track mission. They would like to get to syria, but if they cant get there or preventsed from leaving the u. S. They are willing to carry on an act of violence here. Thats the biggest concern is of copy cats. They cant see them. These are not folks on a slooilt phone talking to folks in syria. Maybe they have contacts over twitter. How does the fbi know which of these lone wolves will take action . Its very difficult to know. Thats really the biggest concern of Law Enforcement at the moment. Reading over the weekend about how weve stopped people from traveling to syria. Is that the right move to keep them here . Yes. Ill tell use. Look what happened in paris. It was mostly guns a couple of suicide bomb vests. There was an element of coordination that made that far more successful than most other terrorist attacks are. The problem is that if you allow these folks to go syria they get coordinated training from people that know what they are doing. Building suicide bomb vests is a very difficult thing to do. Most people that do those things lose their fingers, blow half their face off. Somebody can do that successfully seven, eight times in a row thats somebody thats had training and knows what they are doing and that kind of thing is very uncommon and thats why people cant go syria and get that training. Theres all this focus on the my fwrags situation and whether it pose ascertain vulnerablity. When you look at the vast majority of those that carried out the attack they were home born. Why are they willing to turn on a country that has given their family refuge. This is part of the problem. Were focused on syrians. Its not syrians coming back to the west to carry out attacks. These are individuals from here. Why is it that france and belgian which are relatively small countries have such a major problem with radicalization that doesnt exist here . Part of that has nothing to do with syria or iraq or isis. Part of it has to do with society in belgian and france and i can tell from you living there its not so easy to live there if youre part of a religious or ethnic minority. Theres not the same level of social integration that you have here. Not the same level of economic parity. People dont feel they are part of that society and why it is then . This kind of answers itself why it is so many of these guys in the Belgian Network were once part of low level criminal networks being in and out of jail and they had this religious conversion and were become part of isis. They had no purpose, no place in society. Someone gave them a purpose, like a gang. Gave them a purpose. These guys feel they are something bigger than themselves. They can be bat mapp. They can wage fights against injustice around the world as they see it. Thats a powerful lure especially when its broadcast out on isis propaganda. Around the world on the internet. Combined with being unemployed, 30 , 40 . Again you dont want to generalize too much but these guys didnt have regular jobs, low level jobs were not getting paid a lot of money. They just didnt have a lot of incentive to be art of the society they were in. That has a lot more to do with why you see a much greater degree of radicalization in a tiny country like belgian that here in the u. S. Lieding the war against isis not belgian. Even if we were to crush isis that its not going to cure the problem for disenfranchised youth, muslim or otherwise around europe. And there are some that say we need to have an adult conversation to get muslims involved with pushing back on this islamic offshoot of extremism, are muslims doing enough to distance them snefls they are trying. Its very ford for them too because they are being asked to explain to folks why sociopaths are not good people to follow. Isis is marginal. Its islamic. Its an extreme islamic. You dont hear mainstream islamic groups this group no one has attacked their islamic credentials properly. Southeast folks that have done it, islamic recruits dont listen to them. They are conditioned the clerics, you dont listen to the clerics. Mosques. You dont go to mosques. So this whole thing about closing down mosques, that means nothing. 90 of the mosques have absolutely nothing to do with it. The other 10 have marginally anything to do with this. I really think its very important to understand the ral cadization problem here doesnt immanate from mosques or clerics. Its a combination of different factors. We have to be careful. Muslims are the target of isis as much as we are. Many more muslims have died than westerners because of isis attacks. We expect Muslim Community to stay tuned. But they are as much victims as we are. Thanks for coming in today. Coming up, why the irs could be targeting the wrong people in the majority of audits. Details avenue report when we come back. exec 1 well, directv beat us in Customer Satisfaction again for the 15th year in a row. But we have a plan. exec 2 when our customers are on hold, lets up their satisfaction with some new hold music. exec 2 thats glenn from the mailroom. He djs on the weekends. exec 3 sorry, who is it . exec 2 its glenn, from the mailroom. He djed bills wedding. exec 3 he what . exec 2 he goes by dj glenn, he works way downstairs. exec 3 whatd he say . exec 2 glenn, from the mailroom vo get rid of cable. And upgrade to directv. Call 1800directv. Welcome back to squawk box. A new report says the irs spend too much effort auditing people who make between 200,000 and 400,000 and not enough time looking at the wealthy nest americans. Findings come from the agenciess inspector general. The irs will reexamine calling 200,000 for high income purposes. Willie sutton rule. When we come back this morning well take a check on the health of unkorns. Some highprofile ipos putting start ups in focus. And how many unkorns are joining the club. Thats straight ahead. Adeles new album, making a historic arrival on the charts. Celine dion bringing the American Music awards to tears in a tribute to paris. U. S. Equity futures slightly higher as the dow futures up by 10 points. Opportunities arent 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. Welcome back to squawk box. Lets look at some stocks to watch this morning. Drugmaker mallinckrodt. Revenue was above estimates. You will recall this stock was hit hard recently following a report from short seller citrone research. Peabody will sell coal assets. Match group is the undisputed leader in Online Dating websites with 4. 7 million paying subscribers. More start ups are raising money but many are staying private. Josh lipton has details avenue report on Venture Capital trenz. Forget those eyepopping valuations. Show me liquidity. Thats what vc is saying they want to see here in silicon valley. Problem is that is not happening. In q3 there were 145 exits for vc backed tech start ups including four ipos and that was the worst in four years. They chalk up lack of exits to two trends. Skyhigh valuations of starp ups are discouraging sales and, two we know capital does remain readily available. In q3 a full 23 companies joined the club of unkoricorunicorns. But there were no 1 billion exits in the quarter. The First Quarter thats happened all year. So the question now is whether vcs will continue to pump money into startups given this lack of exit. The ceo of cb insights expect vcs to get more disserng. That fear of missing out in the private markets he says will probably start to now start disappear. Guys, back to you. Josh, thanks. Joining us to talk more about the situation with unicorns and valuations is the ceo and founder of a cloud based platform and ceo at Venture Capital partners. Ian, youre nervous. You saw these numbers. We saw square go public. That was a unicorn. Im more nervous this market persists in the private market than corrects. And i think the underlying factors that are causing so Many Companies to be valued so highly in the private markets have not abated. What do you think . I tennessee to agree with ian about that. Right now the market is still pretty frothy. People for get that besides the unicorns and the majority of companies are still what we Call Blocking and tackling mergers and acquisitions and still Good Companies out there that havent got too frothy. What does that mean . Everyone is focusing on the unicorns and the fact that they are yell known companies and whats getting all the media attention. For every unicorn theres thousands of other Software Companies that are still growing and that are asking for not unreasonable valuations. We bought about six or seven companies in the last few years. We looked at about 50 companies. Some are getting a lot of frothy valuations. Others are asking for reasonable valuations. Ian, convince me youre nervous the frothy valuations would persist. You need to exit at some point, right . Of course. Its better to exit when prices are high rather than when prices are low. Definitely true. Were not exiting in these private rounds. Sometimes we are. Oftentimes were waiting for an ipo. So these private rounds that are happening at unicorn valuations dont necessarily benefit vcs. The reason they are going persist is Interest Rates are still low. I dont think thats changing between now and the general election to a maushts are dying. We dont talk about this. But the average growth rate of an s p 500 company, Revenue Growth is minus 3 this year. Thats because of energy, isnt it . Energy. But theres a lot of transportation, energy. You know, the core sector of the economy they are not growing very fast and the ones that are growing are growing 1 to 2 . General mills. Public sector come on. Thats a bit of an exaggeration . The wilshire has 3,500 companies on it. What . Its true. It is true. What about the s p 500 . Thats 500 companies. Thats a relief. Wilshire 5,000 that measures the domicile companies only has 3,500 companies left. It hasnt had 5,000 companies. Were back to 1960 levels. Shattering a lot of illusions. Delusions. The sad truth. It is sad. Very sad. When we see square go public at a much lower valuation than what it was in the private market what do you think good for them. The ratchet hurt some shareholders but square is its own victim in that scenario. And we can now all buy that security without paying two and 20. Lot of Public Companies are growing fast. We grew 32 last quarter. But ian is right. Theres not a lot of them doing that. Over time its the best thing that square didnt have as strong a valuation. So right now what investors are looking for which is really for the mid to long term is to balance that growth with profitability and i think the pressure to just grow, grow, grow has really shifted in the last 12 months. When we went public everybody was saying take our profitability down. Now youre seeing a more balanced approach which i think we all know is a much healthier way of doing business. It reminds me of the gogo days in 2000, 2001 before the crash. With the Unicorn Companies its healthy to take pressure off. They should focus on fundamentals and focus on looking for profit at least certainly in the short to midterm. What happens in the private market is that a lie . Is that because the incentive structure is fundamentally different than the Public Sector that drives that temporarily inflated price or is the Public Market getting it wrong . People have a hard time valuing these companies. Right. Even the bankers that set up squares ipo had a hard time valuing that business. The problem is when you have a business growing 100 a year and looks like it can grow 100 a year for a decade how do you discount Revenue Growth . When they took the Company Public the bankers were right the range they set was an appropriate range. You saw how the stock traded up. They couldnt fill the book with buyers at that range. Ultimately these are tough problems, people will solve them. But youre seeing High Growth Companies stay private and seeing companies go public when the risk is beaten out as is move of the growth. I think that theres two things. One as you mentioned the preferences that the investors get. All the when you look at the background you drill into it they cant lose money because of the preferences they put in there. I dont under what you mean. Preferences are when you raise money if an investor doesnt get a certain valuation they get a certain amount of money back. A guarantee. A guarantee exactly. They can give up someone is guaranteeing when it will auction off thats right. What happens is that when they have that guarantee they can take more risks because their risk very little to get their principle money back. Thats different with an investor. Distorting the market . Absolutely doing that. So thats happening a lot with unicorns and theres a lot of pes and vcs and hedge fund that i talked to that put money in. Also to be a part of that investment just to help them in branding. Im an investor in uber. Its a marketing expense. Exactly right. Thats messed up. It is. Guys, thank you very much. Thank you for having us. You may have thought you had to wait a week to get those Cyber Monday Deals but walmart decided it will be launching its Cyber Monday Deals on the sunday after thanksgiving. Thats this sunday coming up. The Worlds Largest retayler by revenue will launch 2,000 online only specials at 8 00 p. M. Eastern time on sun. Up from 500 deals last year. According to projections, cyber monday sales in the United States will likely reach 3 billion for the first time in 2015. Coming up, a big weekend for adele. Was on saturday night live. Shes breaking records with her new album and doing at any time oldfashioned way. That story and plus how celine dion brought the ama to tears. Box will be right back. Welcome back to squawk box, everyone. The American Music awards paying tribute to the victims of the november 13th paris attacks. Celine dion performing the french classic, a song made famous by a french singer. Dont raised her hand in the air at the songs conclusion. A photo of the eiffel tower behind her. The terrorist attacks in paris and mali this month has changed the world forever and scattered its population. One direction took on the artist of the year award as well as favorite pop rock duo group. Adeles new all sbum on a record breaking pace. Julie boorstin has that story. Reporter adeles decision to hold back her album from streaming services to make people buy it is paying off. The album is on track to sell at least 2. 5 million in album sales in its first week. That would put it ahead of in syncs record. Streaming services are growing in popularity but less popular for artists. Adele followed taylor swift who pulled her albums from spotify. Doesnt mean they will smark a trend. A few artists have devoted fan base and adele has the advantage of appealing to the older audience that still buys cds. Back over to you. You western up saturday night . I wasnt. I have a man crush on matthew mcconahey. He seems like a neat person. Ive been telling you that. It was unbelievable. Flawless. When she gave done she gave this goofy face people were cheering so much. She never loved the limelight or the attention. Its one of the things so endearing about her. Lets stay with this showbiz news. Well talk about the next installment of the star wars saga. Breaking records of its own. It doesnt hit theaters for another few weeks. The film has piled up 50 million in advance ticket sales. No end in sight. Disney and lucas film hoping to put out a new edition to the franchise every year basically to xfinity. Joining us to talk about it adam rogers the articles editor at wired. Why are are you calling this a forever franchise . You think they can pull this off . I think they can pull it off if people keep buying tickets. I suppose theres some element of whether the movies can be better and better every time. Something that people will expect. But i know they got it planned out for ive lost count. I think they have six movies announced i do have that number right . And it just they just keep a machine churning. Obviously still has to feel Like Star Wars to people because its that kind of emotional connection that they are hoping that the old audiences from the first couple of triologies. I said they could do this for a century. I grew up when the first three movies were released. I remember standing in lightweighting for the first movie to come out. Remember the hover craft. The next three released i saw only two. They have to bring it back and maybe stikt this time with these new films, right . Its true. There are challenges. I think everybody is working on them, recognizes the prequels were maybe not everything that they hoped they might be. But its amazing. When you talk to people who are making these movies, yeah, perhaps. When you talk to people who are making them they have the same stories that you just told that i have, sitting on my dads lap at the chinese theater in l. A. And watching the first one. They have stories about their kids who are connecting to this incredible franchise property through legos and through cartoons that they find a way into your head in a way that maybe other franchises donor havent learned how to do yet. Is there any other franchise out there could do you a james bond every year . Part of it seems you have a character with characteristics that can live for a very long time because superman is another example. How many superman movies, spiderman movies you do it over and over again because the character theres a difference between making three and then rebooting. Making three spiderman movies and then introducing another spiderman. Theres a difference. Im asserting between that and doing what star wars is doing where its the same universe and some of the same characteristics. Up dont tell the story again and tell the origin story again. Theres a timeline that exists for star wars that none of those timelines have. You can do it with star trek. Thats a guess. Even there they split off. Theres the movie universe, new movie unadvisories, old movie universe based on the tv show. They dont even have that kind of continuity star wars does. Go ahead. I was going to stay, i think theres an emotional connection that makes star wars different. I was trying cynical about this last night. James bone movie i was like maybe star wars i got my tickets already. Im going on opening day. Maybe it wont being a great. N the movie. You got me no matter what. They have a huge potential with this one too because the next three movies pick up from where the first three were released left off and thats probably what has our generation clamoring for it. Crossing my fingers. My mother and i skipped school for return of the jedi. My family used to take the day off. For the first one and for empire and jedi and superman. My family has taken the day off. My dad is flying up. Its a National Holiday basically. Adam thanks for joining us today. My pleasure. I want to see one of those star wars movie. Youve never seen the original bits and pieces. So fantastic. It looks like plastic things on string. It does now but at the time it was amazing. I remember Debbie Reynolds daughter in that slave outfit. Princess leah. I remember the big fat jabba hut. Who she was attached to. When we come back, jim cramer from the New York Stock Exchange, by the way check out the futures again. They barely budged today. You can see at this point dow futures up by 11 points. Squawk will be right back. Thats where at t can help. At t has the tools and the network you need, to make working as one easier than ever. Virtually anywhere. Leaving you free to focus on what matters most. Can a a subconscious. Mind . A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . The markets change, at t. Rowe price, our disciplined investment approach remains. We ask questions here. Look for risks there. And search for opportunity everywhere. Global markets may be uncertain. But you can feel confident in our investment experience. Around the world. Call a t. Rowe price investment specialist, or your advisor. And see how we can help you find global opportunity. T. Rowe price. Invest with confidence. Wookky. Welcome back. Airbnb reportedly raising 100 million in a new round of funding. Reuters says the latest round was done at the same 25. 5 billion as the previous round funding in the summer. That adds that some of these unicorns are having a harder time to convince investors to buy shares. Lets go down to jim cramer at the New York Stock Exchange trying to make sense of pfizer allergan. If you think pfizer has a great cancer vaccine. A lot of people thought allergan had 20 bucks in the bag in 2017, get there faster. Got to hear how it is explained. I think when you put the two together, you can get where they want us to go. Longerterm view is not something that this market likes. Jim, somebody who owned shares of allergan, they see the price should be around 363 bucks a share, right now trading at 312. Hold on to it. Should they be worried they wont get close to that number . No, i think it gets there, but gets there over the course of a year, which i think the you start thinking about the divide dividend, why do you want to be in this combination . Maybe a year from now it has different leadership. In the end there are faster ways for allergan to get to where its ultimate price it. Are you at all worried about the u. S. Government getting involved . I think they gamed it so its not going to has. I think the government might try to do something, but in the end, you need congress. This deal is structured different from a lot of other deals that would have been nixed. I think allergan is a buy, down four, silly. But the problem is pfizer itself. Do you want to own pfizer . Pfizer could split, you could do the same thing with allergan, but in the end youre stuck with pfizer. Theres a reason pfizer yields 3. 8 , because its not bristolmyers. Lets see how they explain it. Maybe they can explain it so the two companies are more palatable. Would you ever just throw in the town on the eagles . Yes. Yes, i would. You havent yet . Yes, i would. I say that because i didnt watch the Fourth Quarter. Im fortunate enough to be in a box, i watched other games. You were there. I was. Im winning fantasy, reality is no good. You bank on fantasy. I said it. I did not make my decision lightly with the bungles. It happened too many times with me. Theyre 80, i was firm in my resolve that im not making a mistake by i think those two teams were both great. I have to be candid. I think tyler eifert is fantastic. It was not his fault. He scored two touchdowns in the Fourth Quarter. Yes, he did. Yes, he did. There was some foot Carson Palmer looks the way Aaron Rodgers looked, too. I think this is a very, very tough season. Theres about five teams that are worth watching. The rest i watched. Right. All right. See you, jim. Tough. Thank you. When we come back, stocks on the move, including a glitch for gamestop. The Video Game Store seeing a dip in sales. Are gamers looking elsewhere for the fun . Details after the break. Every year, the amount of data your enterprise uses goes up. 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Knowing which games are available and which games arent. You wonder if this becomes like a blockbuster. A lot of it is the digital downloads. Digital downloads. They would argue you go there for a reason, for help, commiserate with other geeks. Trading games. Tyson foods fell five cents short of estimates. Profit of 83 cents a share. Tyson said it is pleased with its performance given difficult Market Conditions and its ongoing integration of hillshire brands. And Procter Gamble should be broken up to improve performance according to an article in barrons. Pg could be worth 90 a share if it was broken up compared to fridays Closing Price of 76 a share. Its a 100yearold company. Because a magazine writes it, they should be broken up. Probably not. Michelle, thanks for being here. That does it for us today. Join us tomorrow. Right now its time for squawk on the street. Good morning. Welcome to squawk on the street, im david faber along with jim cramer. Were life from the New York Stock Exchange. Carl quintanilla hat day off. Lets look at futures as we look at this holiday shortened week. You can see a bit of a down open in store for us. Well be watching it as we get closer to the open. How are european markets faring . Lets show you. You can get a sense perhaps and gauge how theyre doing and how we may do here, theres no
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