>> here are your headlines from around the world. >> we're working together. that's a message from john kerry as he meets french president hollande in paris and outlines a joint strategy to combat isis. >> over the course of the next week, they feel greater pressure. they feel it today and yesterday and in the past weeks. we gained more territory. >> brent crude clings on to gains as tensions mount.

leading equity targets in europe after a rally in asia. >> we're going whale watching today. he is raising his stake in netflix while david einhorn sbieg up more apple. >> walmart sets the barlow after the largest retail is warning on investment in e-commerce and wages last month. >> all right. let's get straight to some data. i'm taking a look at the investor confidence index out of germany in the month of november. this is beating a reuters poll looking for 6 points. the current index, 54.4 points is below expectations but the outlook comments are interesting because they're looking at an

economic outlook brightening toward the year end and 18% of the answers factored into that economic survey have been taken after the paris attacks and they see no economic pessimism on the basis of the terror attacks in paris. again it's just 18% of those surveyed were after the paris attacks but it seems as though we're looking at a brightening toward the end of the year. >> let's get the latest on what's happening with the paris attacks and several republican presidential candidates are calling on house speaker paul ryan to halt the acceptance of syrian refugees into the united states in the wake of paris. they want congress to strip the relocation program from a government spending bill that must pass by december 11th. now the house is looking at all options to address the refugee issue. president obama meantime committed to accepting 10,000 syrian refugees into the u.s. overthe next year. but that's coming up against opposition now from more than half of the nation's governors

who site safety concerns after paris authorities say a suspect in the attacks may have entered france as a refugee. >> as governor of the state of texas, i will not roll the dice and take the risk on allowing a few refugees in simply to expose texans to that danger. >> i'm always going to be willing to at least hear what the federal government has to say, okay? i think that's, as a public official, that's my job. but that doesn't mean saying yes. >> let's get the very late frst from the streets of paris. >> good morning. what we heard from french officials over the last 24 hours is this is a country at war and this will be a long fight internally and externally against jihadists looking to change the french way of life. we heard from the prime minister saying we'll see 10,000 jobs

created in the police force. that will take a lot of time and money but they're committed to keeping this country secure and this leads to the question of how quickly an international coalition will be able to take this fight to syria and iraq. take a listen to what president obama had to say. >> our coalition is intensifying our air strikes. more than 8,000 to date. we're taking out isil leaders, commanders, their killers. we have seen when we have an effective partner on the ground, isil can and is pushed back. >> now u.s. secretary of state john kerry is already meeting today with his french counterparts. he's meeting with hollande as well. he said ultimately isis is going to be defeated and that's something they're going to continue to try to do. the big questions going forward is what this is going to do to the state of things right now. we understand the president is going to ask for a vote on a three month extension to the current state of emergency here

and that of course is part of changing the constitution. that's something he said he wants to do. he also wants to change the treaty that will have major implications for all of the hundreds of thousands of refugees flooding into europe over the last several months and of course for the bigger picture in terms of the fight against the islamic state we already heard from mr. putin today and mr. kerry, mr. obama, all of them saying they're going to ramp up the air strikes in syria against the islamic states but bigger questions about gathering will be heard later today. >> let's hear what marco rubio is saying. he's accusing two republican presidential rivals of trying to weaken u.s. intelligence in the wake of the paris attacks. he was speaking at the wall street journal and rubio criticizing senators ted cruz and rand paul for backing efforts this year to overhaul the nsa's controversial program to collect personal data and phone records of millions of

americans. >> we have weakened the u.s. intelligence gathering capability through a combination of disclosures by a traitor, edward snowden and through the weakening in our own loss of important programs now that are being phased out and as a result will cost us the ability to gath gather actionable intelligence. >> also taking a shot at obama for not outlining a more concrete strategy to defeat isis. he didn't offer many specifics of what he would actually do other than calling for a larger u.s. presence in the region. >> all right. we are going to be going for a quick break. still to come on the show, walmart is due to release third quarter earnings before the bell but will this be an early christmas present for the world's largest retailer? we have more on what to expect after this short break.

>> a big pounbounce back. we're up over 2% in the stoxx 600. we're back in a couple of minutes. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities.

cme group: how the world advances.

welcome back. let's remind you of the headlines. cooperation could not be higher

with france and following talks in paris. russia to step up it's military efforts after it blams terrorists for downing an airliner in egypt. and george soros ups his investment in netflix in the third quarter. >> we're seeing green across the board. we're close to session highs. the stoxx 600 is higher by almost 2%. the xetra dax up by 1.9%. why? in part because we have a couple of very strong earnings reports. i want to show you what u.s. futures are looking like early on this hour. the dow jones seen up by 0.4%. this is after all of these markets saw a strong rally yesterday despite the paris terror attacks. all of them were up by little more than 1%. joining us live from new york is the managing director of fx

strategy at bk asset management. we're seeing the dollar index close to a 7 month high and the euro dollar close to a 7 month low. it's all about monetary policy once again but this week we get a lot of fed speak. we get the fed minutes. do you think from the fed speak at least we'll get maybe a dovish surprise? >> a dovish surprise? i'm not so sure. i think the fed seems to be really committed to wanting to normalize policy in december and only any kind of, unfortunately, some kind of a horrible event would derail them at this point. so unless we see anything outside of geopolitical stress it looks to be like the dollar is going to continue rallying against the euro because of the effect the market is convinced the fed is going to raise rates in december. >> i'm taking a look at the bank of america survey this morning. they say that the long u.s. dollar trade is still the most crowded trade. positioning is at a three month high.

is it with what you would expect to see going into december rate hike or should it be even higher? >> you know, i actually think what's going to happen is they're going to probably normalize rates in december and then they'll say we're going to hold off for quite a long time. they have been saying that quite a lot. even when they do raise rates it's not going to be a continuous process. it's going to be a wait and see process. at that point that's when a dollar rally is going to peter out. we're having probably a rally into this event and post event we may have very much a sell off in the dollar. precisely because it's so crowded. >> i'm trying to make sense of what's happening with the yield curve. all of a sudden things started to shift that there is a reality. maybe higher interest rates are set to come but at the long end of the curve, they're not pricing in radical moves in interest rates, maybe one and done for, i don't know how long. >> the single best forecaster of everything that's been going on in my opinion has been the bond

market and they're dead on in terms of what they're forecasting. they're saying it's going to be one and done for at least six months until the fed is convinced that the economy and the global economy has shaken off a lot of the slow down and is able to progress normally. but for this one and done process it's very much the reason why i think the dollar rally is going to kind o stall at this point into december. >> what do you make of the yen? it has been behaving like a safe haven as it tends to do at various times in it's history but at the same time very poor gdp data. are we going to see more easing from the bank of japan and how will that play out verses the sense that the yen does still have some safe haven status? >> it keeps saying no. this is what is so hard about trying to gauge the japanese policy. they're very cautious about trying to spend all of their capital at once and they want to see organic growth rather than trying to stimulate further with

monetary policy so they're very reluctant to add further to qe which is the reason why you're not seeing the yen weaken as much as you would think it would. but if the economy in japan continues to contract they will have no choice. they're going to have to increase qe. >> so i was paying attention to your comments, yes i was, and you're saying basically we're long dollar, no, you're saying short dollar against what, though? >> no, i'm saying dollar rallies for a little bit longer and then it tops out at the announcement of the rate hike in december. in other words i think lit peak out pretty much into the december move because the december announcement is probably going to be of the nature that we're going to hike rates and then wait and see for quite awhile. >> what's the dollar trade against? is it just euros? common currency? is that it? or is it something else? >> the easiest trades, the cleanest trade right now is

dollar fwens the euro becauagai of monetary policy and they'll have to increase b given what's going on in europe right now. so it's clear we have a reasonable chance to revisit the lows at around 105. parity is a stretch at this point. a lot of analysts say we're going to see euro dollar parity. it's a stretch. but 105 is very reasonable. >> we always appreciate you getting up so early for us. thank you so much. managing director at fx strategy, bk asset management. let's give you a run down of what to watch on this tuesday morning with the october cpi inflation data due out at 8:30 a.m. eastern time. consumer pricing likely rising following two months of declines on a possible sign of the disinflation trend has run it's course. at 9:15 a.m. october industrial production and at 10:00 the november housing market index from the national association of

home builders. the fed governors speaking later on today and when it comes to earnings we have walmart, home depot, tjx and dick's sporting goods reporting before the opening bell. >> let's remind you of what's to come later in the day. it's been six weeks since he was replaced by jack dorsey. tune in at 12:30 eastern when we speak to dick costello about his latest moves. worldwide exchange is back in a couple of minutes.

back to france as the country continues to mourn it's victims. some of the terrorists involved in last week's attacks still remain at large. nbc's bill neally filed this report. >> this is the man france believes was behind the paris massacres. this isis propaganda video is said to show him once jailed in belgium now believed to be in syria. what you can't see behind his vehicle are the bodies he's about to drag on ropes. he was close to at least two of the paris killers. police are still hunting for this suspected accomplice salah abdeslam who they

described as dangerous. his brother believed to be one of the killers. another brother questioned and released after they raided the family home in brussels. more attacks on france are being planned the french prime minister warned today which is why police raided more than 160 homes arresting two dozen suspects and seizing dozens of guns and a rocket launcher. the french president addressing lawmakers vowed to destroy isis. ordering a french aircraft carrier closer to iraq and syria. a dozen french war planes hit isis overnight bombing it's strong hold of raqqah, syria in the biggest french raid so far. in paris today, not the noise of war but silence for the city's victims. millions remembering though they can't forget. praying too for the critically ill. dozens of victims remain

critically ill clinging to life at this and other paris hospitals. shot multiple times and, say doctors, utterly traumatized. >> i never received 50 patients together. >> one surgeon that served in afghanistan says he's never seen anything like it. worse than afghanistan. >> yes. >> it must have looked like war. >> in fact, it was a feeling of war. >> france's muslim leaders condemn the killings. they honored the dead today and sent a message to isis. >> whatever you do, no matter how long it takes, we will beat you. >> now when it comes to earnings and back to the market, walmart, the world's largest retailer by revenue is set to report third quarter earnings before the bell today and this comes just one month after the company predicted a sharp decline in profits. the world's largest retailer has been hindered by growing competition from the e-commerce space, rising wage pressures and

stagnant prices on its goods. shares have fallen close to 40% since the stock peaked above $90 in january. so we're sitting at close to a four year low and walmart guys have already guided for this. they already said that 2017 physical year profits and numbers will be down by 10% and this is on wage pressures going to $9 for the minimum wage. next year lit go up to $10 in february and of course your margins when you're not selling so much because of what's happening with people shifting their purchases to online, right? >> absolutely. a, their revenue is suffering because of the e-commerce side and their costs are going up because they're investing in e-commerce and wages. it's that wage aspect i think and it is more the cost side than the revenue side that's going to hurt them and hurting them way more than expected when they originally announced the wage hike and of course we know that from a month ago. >> yeah, the e-commerce angle is interesting and important going forward.

it counts for 7.2% of overall retail sales in the u.s. take a look at the mix between walmart and amazon, well, walmart is lagging behind. they only saw $12.2 billion in online sales last year. amazon generating $89 billion in online sales. >> that's why. >> that is such a big difference and you have to wonder, despite this $2 billion investment that walmart is making into e-commerce now can they ever catch up with the likes of amazon? it seems like they'll always be trailing behind? >> they were lowering their guidance on the added spend, right? to get into the e-commerce space but also the strong u.s. dollar is impacting their sales as well. strong u.s. dollar that we just talked about because of impending fed policy but also they're behind the curve so you have to spend, spend, spend like amazon finally paying off for the company and finally making money. >> but the extra cost in investment and e-commerce

prolongs the margin pressure hit in the short-term by wage increases and will be continued to be hit by investment in e-commerce and in any company when they're trying to play catch up how often do we see the actual cost of investment is way higher than expected. >> but they have no choice. >> they have no choice. >> they absolutely have to do it. >> the other question is coming back to wages, are all of these walmart employee who is are going to be see a higher wage are they going to spend all of that money in a walmart store or is that going to translate into higher consumer spending. i'm not so sure about that. as we swau gaw with gas prices doesn't automatic turn into higher spending. >> walmart is the biggest of those and that's a sector trend and not just a company trend and the one particular thing as we come into the holiday shopping season that i found is the fact that you're seeing lower level

of impulse buys which used to be i don't know how big of a portion of retail spend but a portion. and when you check it out online you don't tend to think i'm going to buy it there. >> i still do it. i still do it. yeah it's pretty bad. >> so you're the exception. >> can we talk about the international angle as well for walmart? they have been spending heavily to expand in china and that country is slowing down. cal tap investment, going overseas, building more big box stores and it's not paying off when it comes to their over investments in china. >> it's been difficult for most of the foreign companies to invest in china. it's more the local retailers that need to do well. anyway, we have to leave walmart there. we'll bring it back a little bit later in the show. now urban outfitters 3rd quarter profits improve but retail sales disappointed analysts. same store sales rose 1%. well below the estimate of 3.4%. analyst sas warm weather and

past two months has hurt sales of winter clothes such as coats and jackets. let's see share price action was off 8% in after hours in the u.s. down almost 14% in german trade today. >> a judge has denied a temporary restraining order sought by draft kings and fanduel to halt last week's order. new york has more daily fantasy sports players than any other u.s. state. a hearing is set for november 25th. draft kings is also seeking to delay some tv commercials and payments for ads. >> pandora is looking to build a formidable rival to spot identify aspotify and apple music. they're buying rdio. they plan to launch an on demand streaming service by tend of

next year with multitiered subscriptions going forward. they also bought ticket fly and the rights to popular podcasts. pandora shares in german trade out performing today. >> rdio. do we think that's just radio or -- i've never come across that before. >> i just read radio. what would you say? >> i don't know. i've never seen it before so i'm guessing it's rdio. it's not a very catchy name is it. we're being told to move on. german anti-trust regulators are investigating apple and amazon over the agreement to sell audio books. the probe was opened after they complained the companies are trying to create a monopoly. amazon is exclusive provider to itunes in germany and the companies account for 19% of audio books in the country. price action for you there both

up 1% for apple and 2% for amazon. >> we'll go for a quick break but still to come on the show, president obama ruld out boots on the ground in syria but vowed to step up the fight against isis. we look at how world leaders are responding to the paris attack afs this short break. don't go away. [sfx: bell] [burke] it's easy to buy insurance and forget about it. but the more you learn about your coverage, the more gaps you may find. [burke] like how you thought you were covered for this... [man] it's a profound statement. [burke] but you're not even covered for this... [man] it's a profound statement. [burke] or how you may be covered for this... [burke] but not for something like this... [burke] talk to farmers and see what gaps could be hiding in your coverage. [sfx: yeti noise] ♪ we are farmers bum - pa - dum, bum - bum - bum - bum ♪

>> hi, everybody, welcome to worldwide exchange. >> here are your headlines from around the world. >> we're working together. that's the message from john kerry as he meets president hollande in paris and combats isis. >> they're feeling greater pressure. they're feeling it today and felt it yesterday and felt it in the past weeks. we gained more territory. >> brent crude clings on to gains as tensions in the middle east mount. the energy sector leading equity markets higher in europe after a sharp rally in asia. >> we're going whale watchers today. george soros raised his stake in netflix while david einhorn bought more apple. >> walmart sets the barlow ahead of quarterly results. profits at the world's largest

retailer falling 15% after warning on investment in e-commerce and wages last month. >> checking in we're going higher today. dow jones industrials called higher by 52 points and the nasdaq with gains of 18 points. we're above fair value. here's a look and lead from the european side. the ftse 100 had only the second positive session in 8 yesterday. it was about the instant recovery after the initial sell down following the paris attacks. ftse mib up 1.3%.

the ftse 100 also with an an vance around the 2% mark. let's check in on oil. oil pricing had a strong rebound yesterday. look at oil prices. we are seeing declines but give me back some of the advance lowered by .5%. it was quite a rebound coming off four straight weeks of decliens when d declines when it comes to oil pricing. we did briefly get close tore breaking 106 to the u.s. this comes to future monetary policy easing where we're exp t expecting tightening still in the first rate hike for close to ten years and this morning we saw the euro hitting the lowest since april of this year. a seven month low. >> absolutely. meantime, going back to france. france continues to mourn it's victims some of the terrorists involved in last week's attacks still remain at large. speaking of french radio, the

prime minister vowed to increase security spending in the country. he also warned of further threats to france and other european nations from radicalization and arms trafficking. >> secretary of state john kerry finished a meeting with the french president in paris within the last hour. the french president called on the u.s. and russia to unite in the fight against isis in syria. speaking afterwards kerry outlined the international strategy to combat isis. >> the level of cooperation could not be higher. we have agreed even to exchange more information of course over the next weeks. they will feel greater pressure. they're feeling it today. they felt it yesterday. they felt it in the past weeks. we have gained more her tor th >> moscow has confirmed that a bomb did down a russian aircraft over egypt last month. the country should intensify strikes in syria to punish those

responsible. he added the incident was one of t quote, bloodiest crimes. >> in the u.s. a growing number of politicians are calling on the government to stop accepting refugees from syria. the supposed security implications are becoming a big issue on the 2016 campaign trail. nbc news filed this report. >> caught up in the isis battle, syrian refugees at the center of a political one in the u.s. more than a dozen republican governors and one democrat refusing to accept any refugees from syria. >> i think these concerns are warranted in this time as the french premiere says is war. >> i will not roll the dice and take the risk on allowing a few refugees in simply to expose texans to that danger. >> now with the hashtag trending on twitter new questions about whether states are allowed to

refuse refugees. >> our lawyers are looking at that. >> republicans staking out a tough position with images of the paris attacks top of minds of americans. but three months ago it was images of this 3-year-old syrian boy that drowned looking for a better life. chris christie telling people no syrian refugees now because he lacks confidence in the vetting ability. >> is the u.s. turning it's back on people suffering the most. >> that's not what we would like to see. the most important thing we can do is bring isis to an end. >> calls for congress to stop paying for resettling syrian refugees here and gop candidates adding to the chorus. >> we have no idea who these people are. we are the worst when it comes to paperwork. this could be one of the great trojan horses. >> all go through security screenings. president obama wants to allow

10,000 in. hillary clinton supports more. the debate is beginning. >> to get more, the u.s. political analyst at ihs country risk joins us on the program today. good to have you. 27 states, 27 governors accepting syrian rev withdrew gees and all the ones are republicans. i'm wondering if you think this changes the trajectory and the policy statements coming from republican candidates going into 2016. they want to see the administration stop the procedure and want congress to eliminate funds for the enactment of the programs. they're set. the question is do they have any power to do so? at this point they don't. the question is whether they'll

help those in a new environment. >> obama already indicated they'll take 10,000 of them. do you think the policy reverses now? >> there's a lot more pressure to reconsider the position. it's going to be a slower process than the white house originally invisioned and one question people have to ask is isis already said they want to target washington d.c. if there is a terrorist attack inside the united states, the u.s. will have to consider it's refugee policy and policy inside syria and iraq. >> if you think a similar attack had hit the u.s. which we deeply hope never ever happens, would the u.s. be responding more strongly than france is currently? france stepped up air strikes but it hasn't and the european rhetoric is still this. it hasn't suggested that boots on the ground is likely. >> part of the reason why france

can't put boots on the ground is because it can't put boots on the ground. it doesn't have the capabilit s capabilities. i know obama doesn't want to do that. there's all kinds of reasons strategically not to do that but it would be hard to with stand the pressure coming from capital hill and really among members of his own administration if that were to actually occur. >> at the same time, we're seeing all of these officials from different parts of the world trying to stabilize syria and they met earlier this week. is it feasible to assume that this can happen? that we can find a new level of cooperation? these are all very strange bedfellows. we have the iranians, the saudis, the europeans, the americans. >> you're right. fort of the problem we have with the whole negotiation process is there's 20 people sitting at the

table with different interests. it hard to get them to align on anything. it's positive that we had obama and putin sitting at a table talking for 35 minutes but they're opposed here as far as the end game inside syria. certainly a step in the right direction but they still have a long way to go as far as who is going to rule syria. >> new elections in 18 months. you don't think that's realistic? >> i think it's going to be tough to do. i'm not saying it's going to be impossible and you can throw an election together. the question is is it going to be recognized by the parties on the ground and at this point, that's going to be really difficult to do. >> john, thank you for your time. really appreciate it. u.s. political analyst at ihs country risk. we're going to go for a quick break but still to come, it's time to go whale watching again.

we check on what some of the world's biggest investors are buying and selling. that's next.

let's get out to landon. she has all the details for us from cnbc hq. >> despite the video we're not talking about humpback whales. whale watchings is watching the holdings of whales that may influence one's own investment decisions. soros bailed on gold miners a prices fell to 5.5 year lows. he shed stakes in herbal life. john paulson also cutting stakes in gold producers but keeps spending on drug makers increasing his position and adding new holdings. he sold some in shire shares but raised his stake which was

bought by mariot on monday. higher today by about 4%. bill ackman left most of his holdings unchanged. he is up about 1% today in frankfort. carl icahn swapped his take in e bay for the same amount of shares in paypal. he also bought more than 1.3 million shares of aig. last month he sent a letter to aig's ceo calling for the insurer to split itself up. aig and paypal by about 2%. david einhorn cut his stake by 25% and micro technology by 67%. they were two of the worst performing bets in the quarter but he also raised his position on apple and gm.

sun edison is off by 5%. warren buffet telling cnbc berkshire hathaway raised it's stake in the quarter. they cut the position by 13% and walmart by 7% to help pay for the acquisition. he is also selling investments. ibm, goldman and walmart are higher today than in europe. >> good tuesday morning. let's get you caught up. here are the headlines today. secretary of state john kerry says cooperation could not be higher with france in fighting isis following talks in paris. moscow is a step up as military efforts in syria as it blames terrorists for downing a russian airliners over egypt and hedge fund filings release that george soros raised his investment in netflix in the third quarter.

is a really big deal.u with aches, fever and chills... there's no such thing as a little flu. so why treat it like it's a little cold? there's something that works differently than over-the-counter remedies. attack the flu virus at its source with prescription tamiflu. and call your doctor right away. tamiflu is fda approved to treat the flu in people 2 weeks and older whose flu symptoms started within the last two days. before taking tamiflu tell your doctor if you're pregnant, nursing, have serious health conditions, or take other medicines. if you develop an allergic reaction, a severe rash, or signs of unusual behavior, stop taking tamiflu and call your doctor immediately. children and adolescents in particular may be at an increased risk of seizures, confusion or abnormal behavior. the most common side effects are mild to moderate nausea and vomiting. ask your doctor about tamiflu and attack the flu virus at its source.

we had a couple of company earnings that were better than expected on the economic front. that also beat expectations. a check of u.s. futures this morning. a slightly higher start to the session as well. the s&p and dow jones up by 0.4%. this is after the s&p and the dow had their best day since october 22nd. they were seen higher by roughly 1%. so once again, very much ignoring the terror attacks happening in paris and guys we see that time and time again. when these things happen,

terrible things happen, the market impact is increasingly short lived it seems. >> absolutely. i think it was particularly the wall street move yesterday that allowed asian markets overnight and european markets today to rally. asia and europe were a little aprehencive. wall street changed that tone and that's carried through. as you say over the weekend a sense of safe haven trades. what was open. mainly the currency markets and a little bit of dollar strength but very, very short lived and despite the epic size of this tragedy, things have changed since 9/11. things have changed a lot. and on expectations that people will get on with their lives and won't alter economic performance. consumer sentiment and investor sentiment, unfortunately in this world, maybe we have gotten used to seeing these horrific images

on our television screens. >> also depends on if there's follow on attacks. if we do that or the scope of 9/11 we'll see a wider market impact and more buying of bonds and even oil trending higher for a long period of time and then the fundamentals. it depends on the scope of the terror attacks. >> in terms of the short-term it's very negative for european equities and bouncing back from market performance as well. not just the events of the weekend. >> let's get to earnings because we have lots of names reporting today and they disappointed analyst. same store sales of urban outfitters and anthropology

rising 1%. analyst sas that warm weather, the past two months has been hurting sales of winter clothes such as coats and jackets. urban outfitters down 8% in after hours. over in german trade we're down 13.5% and the biggest of them all, at least the biggest retailer in the world when it comes to revenue, walmart set to report third quarter earnings before the bell today. one month after the company predicted a sharp decline in profits. the world's largest retailer has been hindered by growing competition, rising wage pressures and stagnant prices on its good. shares dropped nearly 40% since the stock peaked in january. four year lows there but let's get a preview of what to expect with the numbers.

you're saying things could get worse. >> so far retail earnings here have been a mess. you're talking about 20% moves to the downside on average. macy's, nordstrom, last night we heard from urban outfitters and walmart is reporting this morning, early october they already told us they lowered the boom and said earnings will decline 6 to 12% and you and i talked about this months ago i was on camera with you and the title was amazon is going to force walmart to spend shareholder money and that's what they're doing. >> they were criticized about how much they were spending. that's paying off now. they're making money so walmart should be taking a page out of the play book, shouldn't they? >> the problem is, they have just fallen way behind in materials of investment spend so to play that catch up game to get to where they need to be it

costs a lot of money. it takes a lot of time and it's a lot of distraction. especially at a time when wages are rising and sales are basically flat best case scenario. >> so that's a cost will that carrie on for the next month and years as well but the more recent crisis is by wage increases. >> the bulk of the guide down for next years numbers was the wage hike increases. the street seemed to have been blind by that. it's been talked about for sometime. but in my opinion they're talking about flat sales this year. that could be worse. think about all the retailers and something has changed with the consumer in the u. s. and those numbers continue to come down on the revenue line. >> something that also changed with the consumer is they're not

even buying in the off price stores. that happened to nordstrom and we say see the same happening with tjx later on today. is there one particular reason for that? is it the weather? >> sure. there's the high growth space and the rack went negative this quarter so tjx is an important name to watch today as they report. blame the weather partially but i'm not buying it. that's not the whole story here. >> what is it then? what do you think it is? more of a structural shift rather than anything cyclical quarter to quarter? >> you look at the space again and everybody is chasing it. macy's is going into the business, kohl's is going into the business. if there's one segment working everybody jumps in at the same time. >> we have about a minute left. i want to switch the attention to the tragic events in paris over the weekend. what's your take on how

consumers will likely respond after these types of things. >> it's been an awful tragedy here and you hate to say let's draw the points here on the consumer side but typically if you look at france and you look at paris it's the luxury destination for the tourists. particularly the chinese and even before this tragedy we had issues with gangs in paris attacking the chinese because they know they carrie cash. now we're talking about cancellations in materials of chinese coming there and spending and for some brands as much as 70% is tourism. so that could hurt. >> thank you for joining us. thoughts and prayers remain with everyone in paris. now that's it for today's show. thank you so much for watching. i'm wilfred frost. >> u.s. squawk box is coming up next. no matter how fast

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.

good morning, france launching more air strikes against isis targets overnight. meantime, a man hunt continuing for suspects since friday's deadly attacks. here at home, a major controversy as a growing number of governors declare that they will not accept syrian refugees. on wall street the focus on the consumer. key reports due from walmart and home depot plus a bad, bet gone bad. draft kings and fan dual lose. it's tuesday, november 17th, 2015 and squawk box begins right now.

>> live from new york where business never sleeps, this is squawk box. >> good morning and welcome to squawk box here on cnbc. we have a live report from michelle in paris in just a moment. but first let's get a check on today's market agenda. the consumer is the name of the game today. quarterly results are due from walmart, home depot, tjx and diks sporting goods. october's consumer price index is out at 8:30 eastern time and later in the morning industrial production and the national association of home builders latest index of builder sentiment. take a look at the futures, this is after wall street's best day in three weeks. the futures are higher once again. dow futures up by 70 points