nearly 45% this week. a big cap stock down 45%. we'll tell you what drove that selling overnight. it's december 29, 2016. the best of times, maybe some of the worst of times for this year. "squawk box" begins right now. live from new york where business never sleeps, this is "squawk box." good morning. welcome to "squawk box" here on cnbc. i'm andrew ross sorkin, along with joe kernen and melissa lee. the dow fell yesterday by more than 100 points. look at how things are setting themselves up for this morning. looking at u.s. equity futures now, dow opening off just about 3 1/2 points. nasdaq opening down. close to 4 points. s&p 500 up just a tad.

overnight in asia, hang seng was up. the shanghai composite and nikkei, nikkei falling over a point. and look at european equities. could be doing a little keying off of that situation. maybe keying off of us. red arrows across the board. not terrible but not great either. >> watching energy prices this morning. oil prices closing at a 17-month high in yesterday's session. today coming off a bit on the wti side, down by 0.4%. nat gas pulling back after hitting the highest level in two years in yesterday's session. nat gas closing in on a 60% gain in 2016. looking at the ten-year note. real action on terms of the yield after the five-year note offering, yielding at 2.473%. as for the dollar, the dollar index closing in at a 14-month high. seeing a bit of weakness here. a bit of pullback after

yesterday's strong session. among the top corporate stories, japan's toshiba plummeting for the third straight session. the stock is down 45% in the last week. credit downgrades from moody's and s&p triggering the selloff. earlier this week the company announced that cost overruns at its u.s. nuclear business might result in several billion dollars in goodwill charges. those shares pressuring the nikkei overnight. shares of takata surging today on reports that the company could settle u.s. criminal charges before the obama administration leaves office next month. part of that settlement would include takata pleading guilty. the government looking at whether the company hid safety rev revelations. and weekly jobless claims are out at 8:30, and advanced report on the november trade deficit. hollywood legend debbie

reynolds has died just one day after the death of her daughter, "star wars" actress, carrie fisher. she was much more than that, obviously. reynolds was hollywood royalty known for a host of films including the classic "singing in the rain," when she was 19 years old. she earned an oscar nomination for her role in the unsinkibiliunsinkable molly brown. her son, todd fisher, said she has gone to take care of carrie. debbie reynolds was 84, which is young. for some reason i thought she had been around, so iconic, i thought she was even older than 84. once again, i said this on "worldwide exchange," we're always struck by the way the body and the mind at some point -- anyone that says there is no real connection. things like this are almost m a

metaphysic metaphysical. people that live together 60, 70 years, one dies. it's just too weird. >> you can die of a broken heart i believe. >> i think you can die of a broken heart. that makes it pretty sad. any way, "singing in the rain." >> classic. >> yeah. >> she saved things from old movies, made a museum, debbie reynolds. she was more than just -- even after she stopped being as active as an actress, when i forayed a different part of my life into trying to take acting lessons at the debbie reynolds, i was told my emotional instrument was clogged. >> do you still feel clogged, joe? >> i never unclogged it. there's -- just quickly. do you remember doby gillis, there were brothers, darrell hickman and dwayne hickman. he wanted me to cry. i couldn't cry on cue.

i can now. i can now. >> really? >> he makes me cry on cue all the time. >> but there are times, if i watch reagan talking about the boys of normandy. >> i thought you were going to say "father of the bride." >> not yet. >> i cried at "finding dory." when i realized i spent $15. >> terrible movie? >> yeah. it's no "finding nemo." >> you were right once again -- actually once. >> once. not again. >> he's still on record. >> frustrating. frustrating yesterday. it is now. this is taking too long. 20,000. >> yes. >> down 100? that's the wrong way. now we have to make that up. >> might have to wait a bit. the question is what will be the tipping point that will get you there? >> how about this weird, co-presidents. it's weird. they're both jockeying.

we only have one president. >> and then we have john kerry. >> yeah. i need your take on that. >> let's do that in a minute. a bit of trump news. i have views on it. hold the thought. >> the further left you get, the less support for israel. it's very strange. is it a plo -- that's what it is, i think, right? >> i -- hold the thought. let's talk about -- >> for me -- >> let's talk about sprint and -- >> for me, it's our ally in the middle east. i hear you. i appreciate you. we will talk about it in a second. president-elect trump announcing that sprint and satellite company oneweb will bring,0 8,0 jobs to the u.s. that's what they said. however part of this was a pledge by japan's softbank to invest in america. here's trump making the announcement yesterday after the bell from mar-a-lago in florida.

>> i think we ought to get on with our lives. i think computers complicated lives greatly. the whole age of computer made it where nobody knows -- >> john harwood joins us now with more. a lot of debate whether these 8,000 jobs were part of the pledge of 50,000 jobs -- >> jobs. >> $100 billion, 50,000 jobs. how do you score this? >> i wonder. >> it's a repurposing of what he announced after he met with son at trump tower a few weeks ago. son has been raising a fund to make investments. owe came out after the meeting with the president-elect and said that he was going to invest $50 billion, create 50,000 jobs in the united states. the jobs that president-elect trump discussed with marcello

claret of sprint yesterday were part of those jobs. this is trump making effective use of his marketing skills. he kept us in suspense all day. we talked about it all day on cnbc. sean spicer was on a transition call at 10:30 in the morning, he said he will make a big economic development announcement. it's not new news, but on a slow holiday week, you draw some attention to your economic message. he succeeded in that. the other thing that happened and the wrong sound was played there, i'll call for it again. it's relevant to another clash in addition to the middle east between the incoming and outgoing administration. it has to do with the russian hack. in the brief comments that donald trump made, he hasn't had a full blown news conference. he was asked about whether or not russia should be sanctioned for that election hack. here's what he had to say about

tha that. >> i think we ought to get on with our lives. i think computers have complicated lives very greatly. the whole age of computer has made it where nobody knows exactly what's going on. >> nobody knows what's exactly going on. the obama administration is working very hard to document what it believes the evidence shows about that russian hack. it highlights the difference between his at trump's attitude towards russia. >> i have two questions. one on the sprint announcement. is the headline right or wrong to say trump brings back 8,000 jobs to america? >> wrong. well -- let me back up. son had been raising this fund long before the election. a $100 billion fund in

partnership with saudi arabia. how y it is undeniable that there has been a boost in spirit, optimism, consumer confidence since the election. what part does that play in it? i suspect it was not decisive. the other three jobs with oneweb is also a softbank investment. i wouldn't assign that causation, but you can't prove it one way or the other. >> john, you want to weigh into what we were talking about, secretary kerry and his comments about israel? >> no, i want to weigh into one other thing about joe. he said something which you and melissa are too young to appreciate. joe, did you study under doby gillis for real? >> his brother. dwayne. >> ah.

>> i did for real. he was in some "b" movies and stuff. would recognize him if you looked up -- hickman, i think it was darrell and dwayne. >> dwayne was dobi. >> yes. >> but not for long. seriously. the very first -- i didn't get my money back either. but there were, like, 30 people up in the class. they could get up and cry. i said i'm not going back. >> joe, i bet you for a million dollars, andrew ross sorkin could not tell you who maynard g. krebs is. >> keep your money. >> you know? >> have you heard of dob dobi gillis? >> have you heard of gilligans island? >> i looked it up. >> he heard of that. >> andrew, have you heard of gilligans island? ♪ >> loves it. >> oh. we have the music.

>> john denver, colorado rocky mountain high. awesome. great. ♪ west virginia >> john denver. >> i'm with you. >> one other entertainment issue. have you looked at the -- guys, have you looked at the 1:32 clip of debbie reynolds, donald o'connell, gene kelly doing that one amazing dance number in "singing in the rain"? unbelievable the work they did. >> right. that's when there was real grace and movement back then. you don't appreciate it. just before we go, john, i just want -- i haven't talked about grace and allen. what is the story? that's an embarrassment to duke, isn't it? >> yes. it is look. he is obviously having -- he's going through something. having a hard time controlling his emotions.

doing something he knows he shouldn't do. coach k. trying to deal with it by suspending him. i -- i think he's a good kid. i hope he comes back soon. but i hope he comes back healthy. and, you know, with his mind in the right -- >> exactly. >> -- in the right attitude. you know, it would be a shame if the incredible talent that he has gets caught up in emotional stuff that is too powerful for him. >> we are in a sweet spot for all this -- for college, college sports. we have this weekend, then not too long until -- >> who you got in the playoffs, football playoffs? >> i watched washington take apart my colorado buffaloes. people think alabama will win by three touchdowns. i guess alabama -- i don't understand how that works every year. i don't. must be great recruiting or something. >> nick saban. >> right. right, john? how do you -- it is like 50 years worth of always being great. very strange. i don't know.

>> got to say, ohio state/alabama championship with urban meyer and nick saban wouldn't be too bad. >> that may be in the cards. we'll see. all right. thank you, john. >> thank you, john. a programming noted, the founder of oneweb will be on "squawk box" at 7:40 a.m. eastern time talking about the decision to bring back jobs to the u.s. part of the masa son empire. >> bruce kazman -- can we call you kazman? kazman s that cool? >> sure. >> they don't do that at jpmorgan? hey, kazman! >> no. not that i'm aware. >> okay. just thinking. jpmorgan chief economist. we don't speak to a lot of people named lou. lou breen strategist at drw trading. merry christmas. >> merry christmas. >> where have you been? are you all right? >> doing fine. how about you? how about you six degrees of separation from the professor

and mary ann. >> exactly. that is true. i won't -- mary ann, there was ginger who i have met a couple years ago. nice lady. all right, bruce. let me start with you. so, is the fed -- this is my concern. are they all of a sudden going to be actually aggressive and hawkish like next year? could they go up four times? could they go up a half point? is that going to be necessary. is the rest of the world going to keep it moderate? >> i think what the fed is telling us now, is that having waited for a full year to move policy rates, their fears not being realized on growth, on inflation or financial market conditions, that they have work to do that's a key message that the fed looks at itself going into 2017, thinking if its forecast is realized t has two, three moves it will have to make for sure. at the same time, yellen leadership says they will try to

stay gradual. if you get four moves in 2017, we'll have to be surprised materially on the inflation side. i think two to three is the right way to look at the fed. if their baseline forecast is realized, i think three is more likely. >> so, there's some people saying that the economy really is going to pick up quickly. the fed won't be as handcuffed in terms of looking at every economic number and saying we're not above stall speed. they will actually be able to anticipate an improving economy and have to move ahead of that, instead of in reaction to it. >> that's exactly what is in their baseline forecast. that's the message they're signaling to us. when you say the economy moving ahead, if we had a 4% economy next year, for sure the fed has to respond. >> what's your best case snare

xw scenario? >> 2%, 2 1/2. >> none of you guys have gone to 3. >> no t. the policy environment will change, but how it changes and the impact on the economy is uncertain. i think what's happening as well is there's a more organic improvement taking place in the global economy. the u.s. is part of that. probably that will tell the tale more about what the my does for the first couple quarters of 2017 and where the fed response is. >> lou, you do that well, the daily moves in the market. anything possible between now and when do the adults get back and we actually start seeing what 2017 brings? not this week? what about next? >> not this week, i don't think, unless there's an adjustment of the year-end thing for pension funds or something that moves the market. that could be part of the explanation for yesterday with the strong five-year getting out of some of the stocks, getting back into the fixed income,

five-year 30 basis points higher at yesterday's auction than a month before. we're up against the 0,000. people like to focus on that sort of thing. if we get follow-through on the economy, better earnings, it will just be thiss minor speed bump and not a replay of the dow trying to get over 1,000 which started in '66 and didn't succeed until august of '82 in a material way. right now, nothing particularly this week. the market can move because it's thin and you can go over 20,000. not saying you can't, but i think it's a wait and see at this point. maybe that's what the market is telling us, more importantly than we got to a key level that we're waiting and seeing to see what trump does. how the congress reacts. >> lou? >> yeah? >> in terms of the most recent action, the dollar is trading at the strongest levels in a decade

and stocks are failing to advance at this point. is there concern about the strong dollar? >> i think there is. i don't think you can take a couple weeks or ten-day period and extrapolate on a particular cause right now. the dollar is at high levels. i can make an argument that it goes a lot higher versus the yen and euro and pound. >> how high? >> i think that will be problematic. >> problematic, bruce? >> yeah. i think the dollar is a drag. in a global sense -- >> now you're talking like kasman. it's really a drag. now you're like maynard g.krebbs almost. so this strong dollar is a drag man. >> it is a drag. >> it's a drag. >> it's both a drag in the sense that it's reflecting the fact that our stronger growth, if it's coming, will get partly exported in the form of helping other countries. but it's partly a reflection of that. i think the way to look at the

dollar now is to decide is the dollar a reflection of the fact that the economy is going to do better or is the dollar a reflection of the fact that the economy will hit us hard. i think it's the former not the latter. so not an overall drag in terms of u.s. performance next year. >> lou breen, thank you. kasman, thank you. for people who don't like 2016, you know it's like a longer year than -- >> why wouldn't they like it? >> some people. i don't know. brexit, trump, all this. you know, it's a second longer. >> physical second longer. >> wow. >> because they're adding a second. the year is a second longer. they're adding a second on to 2016. so we have an extra second. i'm going to -- you know what i'm going to do? i'm going to use it to go long on our show so squawk on the

street doesn't -- >> i think we've taken a lot of seconds. >> the one we're getting for 2016, i'm using on this show. >> telling them in advance. >> it's because of ocean waves. you are not hip to this? >> no. >> this never happens. it's like a leap year. >> crazy. >> nuts, enjoy. >> enjoy your second. >> for you, this hellish year is a second longer. >> yeah. yeah. >> i hate to break that to you. coming up, emerging markets have fallen more than 5% since the november elections. we'll open up the cnb playbook for 2017 next.

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. welcome back to "squawk box." new details on apple's efforts to manufacture products in india. indian government officials will probably meet early next week to evaluate incentives sought by apple to manufacture its products in the country. making goods in india would allow apple to open store there's and build market share. they currently hold only 5% of the smartphone market in india. when people talk about the great opportunity ahead for apple, india is a big part of that story. as 2016 draws to a close, cnbc is breaking out the 2017 playbook, looking at ways you

can make money in this year. seema mody has more. >> reporter: 2016 was a banner year for emerging markets until the election of donald trump who has cast a cloud of uncertainty over emerging markets. expect 2017 to be a challenging year facing tough head winds from rising interest rates and a stronger dollar. here are three predictions for the new year. if the president-elect goes forward with protectionist strayed policies and a par rif on foreign goods, it would likely threaten some eamericans market countries competitive edge as a destination for cheap labor. specifically china with analysts predicting a 4% decline in the world's second largest economy. the other country likely to get hurt is mexico, a big trading partner with the united states and has already been hurt by the depreciation in its currency.

one bright spot in the emerging world, russia. rising oil prices and a friendlier relationship between trump and putin could draw more investors in. hsbc echoing that sentiment calling russia the cleanest play in emerging markets next year. for cnbc business news, i'm seema mody. >> for more we are joined by richard kang. good morning. thanks for being with us. >> thanks, melissa. >> the bovespa in brazil, the best emerging market in 2016, at least so far. do you think that to continue? >> i don't think so. that's a crazy thing for somebody to guess at now. it's the best performer given all the geopolitical drama. think of beforazil, india, chin india was thought of to be the

better performer, but nit's better to be a sniper and selective than a shotgun. >> with its strength in the u.s. dollar, how do you snipe the best opportunities in the new year? >> that's the big thing. your previous speakers were talking about the u.s. dollar, uncertain policy in the u.s. kind of better to wait and build your shopping list in terms of where you should be selective with 20,000 for the dow. if you're looking at big numbers, now is probably not the time to be in broad etfs. now is the time to be more alpha oriented, stock pick. probably focus more on commodities and the consumer, drop everything else. >> to that point f you're an investor, you have to know that most of that etf is china. china has not performed well since the election. the fxi down 8% in the last month or so. in terms of looking elsewhere, what would be on your shopping

list in terms of emerging market equity indexes? >> probably a country specific etf is the place to go the asian markets are good but if their currencies are dragged down because of their proximity and economic ties to china, that could be a concern. that's everywhere down in singapore, thailand, vietnam. even korea. just the proximity there is a concern. if russia is considered to be the place to go, which i'm not sure of, everything in that region central eastern europe might be the place to go. which has not been a great gravitational pull in emerging markets. i think moving away from etfs, i'm an etf guy, picking stocks in the shorter term is the way to go. places in india, like flip cart in china alibaba, these online portals for consumption are probably the ways to go if you can find an adr listed stock. >> those two picks in china you

like plays that capitalize on a domestic economy as opposed to international companies headquartered in other country. >> we know they're spending more in terms of household. there's not a lot but a lot of them. if tariffs go up in the fight against china, this trade battle that everyone is concerned over with trump. that's fine, you have to pick your battles, when you negotiate, start strong. who will that impact? is that going to impact the producers in china or the shoppers at walmart who have to pay more? where else do they shop? maybe amazon prime is the place to go. so flip card and alibaba, the same logic applies. >> in terms of russia, are you uncertain about oil? >> i'm not. i feel commodities are the place to go. do you want to go local? do you have new adrs in london to build a robust portfolio? to pick a few stocks in russia, that's risky.

if you want to pick the russian etf, probably not a bad idea. >> richard, thank you. moments ago, russian president vladimir putin saying an agreement la been reached on a cease-fire with russia and turkey. egypt will be invited to take part in the syrian peace process and the u.s. may also join when donald trump becomes president. the cease-fire is scheduled to take effect midnight tomorrow. a bit of news. we'll see where we all fit into this process. when we come back, the rise of the dollar. the currency up more than 5% since the election. the euro falling closer to parity. we look at the moves in the dollar next. first, a look at yesterday's s&p 500s winners and losers. ♪

♪ welcome back to "squawk box." i just burned my tongue on hot coffee. take a look at u.s. equity futures. i did. i can hardly talk. >> need a little help? >> dow looks like it would open down. gets further away from our 20,000 mark. looking like it would open off

7.5 points. s&p 500 off -- up just marginally. >> the dollar had been closing in on parity with the euro. the stock market had been getting close to 20,000, too as the year comes to an end. those things shouldn't be happening. one might prevent the other from happening. the euro lost now more than 4% against the greenback. with a look at foreign exchange markets of 2017, joe trevasani, chief market strategist. some interesting calls here, joe. you're breaking with your normal precedent. you are not only going to say which way it's going or where, but when. you should never do that. >> i do that once a year, at the end of the year, and more often than not regret it. >> and for today, for the year -- >> i think for the dollar. >> you will say where it's going

and when it will get there? >> for the first whatever of the year, if you're looking for time definition, pretty much all the dollar. it's hard to argue with what the fed is doing, what other central banks are not doing and what the u.s. economy is doing. you also have politics playing a prominent role in europe and britain for the first half of the year. you have the turmoil or negotiations over brexit, three elections in europe, the netherlands, france, germany. even -- no matter who wins, the elections will be contentious, some issues that will be debated through the campaign are not going to go down well to the currencies or the strengths of the economy. >> so you like the pound best? >> i like the pound best. but i like it at the second half of the year. >> brexit is more amicable? >> i don't think brexit is going to be as difficult as people

think. europe has internal problems, immigration issues, political issues, populism issues, heady elections are coming up. >> so the pound was the worst performing currency in 2016. >> yes. >> this just a reversion back to pre-brexit levels? >> yes. that's the non-exceptional part of my idea. >> you're -- it's not supposed to do that. it's supposed to be terrible for -- if it get backs to where it was, that's a good call. >> part of it is just reversion. currencies almost always revert more than other markets do because of the speculation trade that goes on in currencies. i think it was always overdone. it is in both sides benefits for the europeans and british to maintain a healthy and viable trading relationship. i think that will win out in the end that will support the currency. also central banks are moving away from zero rate policies which from an economic point of

view have not been successful. >> that could help cap the strength in the dollar. >> absolutely. >> do you think we really go to parody with the pound? >> i think we'll flirt with it. you can do with it both of them and not do it with both of them. it will flirt with it as the first half of the year progresses. >> what if terrorism, you know, again -- if another thing happens in germany, i don't know about merkel. i don't know what happens with her. that's true. >> i don't know what happens with her any way. >> exactly. what if it looks like the whole, you know, experiment is not going to happen. what would the euro be worth? if that happens, i don't think that will. >> not right away. if that happens, then again no one thought brexit would go through. no one thought mr. trump would win the election. if it looked as if the euro or

european union was going to have serious problems, serious unity problems, then i think you could easily see the euro down to where it was at the bottom of where it started, 85. that's possibility. i'm not anticipating it. but the first half of the year will be rough for the europeans. especially the political and emotional currents running through these elections are the kind that get people frightened. it is certainly possible that that will come to the fore. but what's driving behind this is the central bank rate policy. >> right. >> right now the fed is in ascend dance. >> so the yen, before we leave? >> the yen is a question because the japanese policies need to change. if there's ever been an example of the uselessness of zero rate policies as far as spurring the economy, it's japan. so i think if they change it, then you will get a stronger yen. but they're reluctant do that. they seem to be more wedded to a

mercantile style of foreign exchange policy than other currencies, other countries. so there's going to be resistance in japan to doing that. but they'll come around as well at which point the yen strengthens at the end of the year. >> joe, thanks. do you have plans for your extra second in 2016? >> yes, i think i will spend it with my children and wife. >> that's an idea. >> i don't really have a choice in the matter but i'll enjoy it any way. >> that's good. use it well. >> i hope so. >> thanks, joe. coming up, the nfl signing a deal to stream games in china. details next. plus the top passenger destinations of the year from ride service lyft, and a quick check on what's going on in the european markets now. we are further away from 20,000. red arrows across the board. "squawk box" will be right back. thisthe foodystem.

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♪ >> welcome back to "squawk box." recapping the news that just broke on russia. president vladimir putin says an agreement has been reached in the syria cease-fire. russia and turkey will act as

cease-fire monitors. foreign minister lavrov says egypt will be invited to take part in the peace process and the u.s. may join when donald trump becomes president. the cease-fire scheduled to take effect midnight tomorrow. let's look at how u.s. equity futures are shaping up on this penultimate trading day of 2016. the dow looking to lose about 7 1/2 points at the open. s&p 500 about flat. >> good word. penultimate. what is that eponomous? >> yeah. >> interlocuter? >> interlocutor. >> a friend the other day used that one. >> it's time for the executive edge. lyft, crowning the top destinations for 2016. >> it is linx, because the guy's name is linus. >> messed up.

>> breaking out the most visited locations by passengers, including restaurants, bars, hotels and event places. nashville's acme feed and seed is the most visited place in the country by lyft users. the abby in l.a. is the most visited bar. the mgm grand in vegas is the most visited hotel. >> i wonder how that compares with uber. >> the uber passenger expects to sit in the backseat. lyft passengers expect to sit in the front see the. >> oh. >> that's a bit of a culture thing -- >> i have antidotal stuff uber versus yellow cabs. yellow kacabs, they're not happ. they don't like those uber guys. those uber guys come rolling in with no experience.

they think they know, they don't. they have to use their ways. the yellow cab guys -- >> joe the cabbie. >> the yellow cab guys are recentf resentful that they think they can come in here. and during surge pricing, it's more expensive. and wait until january 1st when these uber people think they'll still be making money, they won't. >> no. >> you know this? >> we live in the city. >> it's so hard, trying to find that stupid honda accord in a sea of cars. they're all uber. are you my uber? no. are you? are you? are you? you can't find them. there's a cab with his light on. you just climb right in. the cabbies are not going anywhere. good. >> it's true. bad business for cabbies and uber, usually january 1st to april. slow season. >> the medallions have fallen

from 1.2 to 800,000 now. >> i didn't know they fell for that much. >> the guy bought for 150,000. you had a great appreciation. >> we should have an uber driver in -- >> versus the cabbie. >> we should. >> have them both come in. >> cabbies are like working men. i like those guys, sort of. >> i told you my uber experience on the air -- >> u >> yes, >> you call uber, and then if you see cab, cancel. >> you get a bad rating. >> no. you can cancel. up to five minutes. i have issues. >> one throw-up, doesn't matter who it is. >> that night i get in the back of the car. the uber driver looks at me and goes, you're that guy. i go, what do you mean? he says i watch "squawk box" every morning. you are the guy who

arbitrages -- >> now they won't pick you up at all. >> so we do have uber drivers who are "squawk" viewers. >> now i think i'm a cab guy. i think i like the cab guys. the working man. not the yuppie i'm deciding to do this -- a millennial whoa wants to hang out at home and do one uber thing a day so he can stay on the cell phone. >> coming up when we return, tech gadget winners and losers for 2016. we'll give joe an update on the best reviews and news on devices of the year. we'll look ahead to what is expected to co ed ted to come i releases for the new year. back in a moment.

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it's time for the "your business" entrepreneurs of the week. 3-d printing is changing how business is done. the owners of hv 3 d works in

welcome back to "squawk box." it has been a busy year for tech giants. amazon and google with home intelligence gadgets. snapchat making a play for your face with video recording spectacl spectacles. joining us now is columnist at "the wall street journal." her latest column, predicting the tech trends that may change

your life in 2017. good morning. >> good morning. >> okay. so what's going to change my life? we have earthquacho in the hous. we have alexa in the house. we got to talk about the hot mike element of this. >> you don't want to hear what they're saying about you, either. >> exactly. >> god, he's insufferable. >> then he new macs that came out. we got one of those in the house. tell me what we're going to need in 2017. >> well, i'm not sure you're going to need anything. i think the big thing that happens in 2017 is you've got these echoes, right? you've got these talking speakers and gadgets. they start to get better mostly with software. i think gadgets are great and they are getting better with different hardware improvements,

but the real leaps are now coming in software. if you really look at the iphone, most of the leaps that we've seen in the last couple years, they all come with. >> will apple do one of these home alexa-like devices? it is siri. >> it is siri. i hope apple does one. >> but siri's so terrible. >> siri's pretty not good. >> if siri can't understand me, why should i have siri in my home and expect her to actually understand. >> it's a segue to a gadget of the last year, the air pods. she answers right in your ear. great technology. in my review, i wrote siri's everywhere now, but siri's not getting any better. if apple is going to make this great hardware, siri has to be the focus. how many time dos you hear, let me search the web for that. with alexa, she knows.

>> these headphones are very expensive. they're beautiful. i want them. >> the beautiful is a mixed reaction. some people say they look like a cyborg. >> sure. but there's something -- >> yeah. >> but are they going to come down in price? >> i would doubt they come down in price any time soon. tim cook says they are selling really well. they're limited inventory, maybe next year when the iphone comes out. >> people thought the iphone 7 was a disappointment. this next iphone which is going to be the ten-year anniversary, do you expect it to be amazing? and how's it going to compare to google's pixel phone. took them like 11 months to build that. it's a pretty amazing phone. >> but it also looks exactly like the iphone. it is a great phone. i gave it a great review. i think on the iphone, they can't disappoint this year. the phone last year looked the

same. different black color. nobody really fell for that. except for i did. so they have to impress with a different design. the big thing they're going to see there is software. the rumors point to an all-touch screen device. taking away the phone on the bottom is going to be a big deal. this year they take away the button or other buttons. that is going to force apple on completely focusing on the screen. >> you think the software is going to be different? >> i think it is. i think that's going to be one of the big things that happens this year. >> and how's microsoft doing? we got to go. >> microsoft's got the hollow lens. i think, you know, these computers on your face, that's going to be a thing. last year he said nobody's going to wear virtual reality headsets. >> no, no. i said once the right businesses get involved they will migrate to that. >> not a lot of people are buying the headsets.

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a pause in the market's santa surge. the dow logging its second triple digit loss, only its second since the election with just two trading days left in 2016. trump touts new jobs in america. >> i was just called by the head people at sprint and they're going to be bringing 5,000 jobs to the united states. they're taking them from other countries, bringing them back to the united states. and a new company is going to be hiring 3,000 people. that's exciting. >> one web ceo will join us.

and can 2017 bring a revolution for small businesses? we'll open our 2017 playbook and tell you what's ahead. as the second hour of "squawk box" begins right now. ♪ live from the beating heart of business, new york city, this is "squawk box." >> welcome back to "squawk box" here on cnbc. i'm andrew ross sorkin with joe kernen and melissa lee. we're going to hear from him on the markets in just a bit. look at the futures as we try to get back towards 20,000. i don't know if today's the day. probably we're going the wrong direction right now. dow looks it would open off seven points. and the s&p 500 we'll call it -- i'm just going to be generous and call it unchanged for now. take a look at what's going on in europe right about now. we do have some red arrows across the board for the most part. >> in the headlines this

morning, russian president putin says the cease-fire agreement has been reached to take effect at midnight. he added that russia will continue to support the syrian government. defense minister lavrov says the u.s. would be invited to join in the peace process once donald trump becomes president. two economic reports from investors this morning. initial jobless claims at 8:30 eastern time. also trade deficit data at the same time. and retailer sears has secured $200 million to help fund its operations. it comes from affiliates of a hedge fund led by sears ceo. now to president-elect donald trump trumpeted an announcement that sprint will bring back 5,000 jobs to the united states from overseas. one web will also add 3,000 jobs in the u.s. this is what he said down in mar-a-lago. >> i was just called by the head people at sprint and they're going to be bringing 5,000 jobs

back to the united states. they're taking them from other countries and bringing them back to the united states. and masa and some other people were involved in that. i want to thank them. and one web, a new company, is going to be hiring 3,000 people. so that's very exciting. >> deal was done through softbank ceo masa son. softbank earlier aimed to create 50,000 jobs. the 5,000 job number that sprint is talking about is part of -- we should say, those 50,000 positions. but they will be funded by sprint directly. sprint releasing its own statement saying it's excited to work with president-elect trump. we're going to talk to the founder of one web about the deal. he's going to join us at 7:40 a.m. nonetheless, we'll take it as a positive there's going to be more jobs in the u.s.

>> one of the jobs is that verizon guy. he needed a job. >> the actor. can you hear me now. >> that's not part of this, but he needed a job. just saying. and he's got one. >> who would have ever thought? >> i know. >> you would have thought there might be non-compete agreements. >> right. that guy is so good at selling telecommunications. he's the only guy to do it in the country. he's like paul macarelli. we need paul. why? the glasses, the nerdy look? >> he did verizon commercials for five, ten years? >> because there was no one else that good. anyway. is this -- first we heard yesterday that he was rushed to the hospital. it's like, you're kidding. debbie reynolds hollywood legend died just one day after the death of her daughter carrie fisher. reynolds as you know was

hollywood royalty and was known for several film roles -- iconic film roles including the classic "singin in the rain." and in the old days, it seemed like people had babies much earlier. >> definitely. >> i thought she was in her 90s. she's not. she was only 84. which is not old in today's terms at all. it's sad. i guess you can die of a broken heart. such a life, i guess. let's get back to the broader markets in the final trading days of 2016. joining us now our guest host for the hour charles cantor. senior portfolio manager at newbe newberger. also joining us chris cadero. and our friend from deutsche bank. also a cnbc contributor. so charles, uh-oh.

yeah. and joe. both of you guys -- joe, i think you said this is a game changer, basically, for the economy. what happened on november -- almost a reset for economic growth. and you say something similar. that the stock market at this point is somewhat justified and it's a different environment and much better. whereas you say it's going to be a prove me year and that we may -- you seem to be -- >> exactly. i'm from jersey. i'm not even from missouri. >> you're not even from missouri. these guys think there's positive things. you're not necessarily saying there isn't, but you say we've got to prove. >> yeah. i think it's a lot of talk and we're going to have to see what exactly happens. there's going to be a lot of volatility. there's going to be a lot of opportunity. but is there going to be economic growth? we've been limping along for seven years. i don't see the big impetus to get us out.

>> where in jersey? >> ridgewood. >> we don't have to pump our gas in jersey. >> cheap gas. >> you don't have to pump it. you just pull in. >> like a king, you are. >> can i help you, sir? yes, you can. >> wash your windows probably. >> you don't get it on your hands. it's nice. i'm going to go to joe. so it's really that exciting economically? what was so bad about the last eight years? >> we only have a little bit of time, joe. >> exactly. >> let me just say that since trump won, if you look at all the sentiment measures and i've highlighted this awhile ago, everything has improved dramatically. 10, 15-year highs. we do have to see it in the data. but if we wait to see it, markets will already have moved. my guess is given how pro-business the agenda is, i'd be surprised if growth isn't at least 3%, maybe 4% even better.

>> you're the only guy, i've had, like -- in the last two days i've had five guys tell me. >> what's your official estimate? 3% or more? >> yeah. so it's 3%. i'm thinking in terms of year over year. the way i see the tax cut being implemented, we get to 4% growth in the first quarter of 2018. then the economy down shifts. but as i've written and told clients, to me there's a skew on growth. it's possible that god forbid something bad happens and growth stays around, but seeing upwards of 5%. but officially 3%, 3.25% of 2018. >> 5%, andrew. read it and weep. >> he wants the economy to grow. >> i want the economy to grow, yes, i do. >> not if he has to say it's because of trump. >> i'd be happy.

>> you unshackle the private sector -- charles, tell him. >> that's right. i think the private sector hires 125 million people and less hole tillty toward business i think is a good thing. builds confidence. but most importantly makes investing in business less risky. on the margin, we know stocks and stories. the stories got better because we can agree taxes won't be higher and regulation won't be any more onerous. but i agree with chris as well. i believe that move has been reflected and the devil's in the detail. and we don't know what tax policy looks like. we don't yet understand what less regulation means. and that will all impact decision making quite meaningfully in corporate board rooms around the world. one question we're asking ourselves is the current crop of management that's grown up in this very interconnected global economy, global supply chains,

are they ready to think about a world where investing in their business just got less risky? can they move from risk adverse, playing defense, to playing offense? >> chris, you heard what they said. you weren't necessarily disagreeing with the positive things. you just think there's -- >> no. yeah. there's lots of positive things. to finally have an administration that is definitely pro business ahead of everything else is a positive. what are you going to be able to get done. that's the big thing. you talk about tax policy. you know, i don't know where all the deficit hawks have gone, but they're going to come out of the woodwork -- >> on the right. in his own party there may be some problems. see, andrew. you think if you live in jersey that you have to drive -- all you know about is that ride down the turnpike with the factories and stuff. that's what you talk about. and the smell. >> the smell. >> yeah. you think that everybody in jersey, that's all we do. all we do is walk around holding

our noses in jersey. that's not why -- >> we built jersey correctly. we pushed all that stuff up against the hudson so we don't have to smell it. >> but you do ship a lot of your stuff to us which we don't appreciate a lot of the time. all right. but, so 2017 gdp, you didn't give us your number. sorry i'm asking you. joe was brave. >> he's brave. >> you're not at 3 %? >> the important thing is he's talking 2018. stock markets tend to have shorter memories. i agree with chris on the volatility point. look. i deal with companies and stocks. i'm not in the macro world. and companies have come out of the woodwork and said business conditions were probably more onerous on us than we could believe. but that being said, i don't think they're ready to make decisions until they know what the tax rate actually is. how do we treat expense, things that we import?

and we import an awful lot into this country. and it's not just apparel. it's way more than that. as that plays out, there will be volatility. we'll be in an environment where guys said who's the most regulated, who's going to benefit the most? who pays the higher taxes. i think that's played out. i'm thinking they're going to come back next year and be about truly understanding what you own and guessing on where you think taxes come out. >> to your point of next year being a prove me year, you like citi. but at the same time you like it because of a possible rollback in regulations. this is a stock that gained tremendously in the past month. at what point do you say i'm going to trim here because i don't know what's going to happen next year. >> i don't know what's going to happen next year, but i would bet that there's going to be less regulation rather than more

regulation. >> wouldn't you say you would bet that taxes will be lower rather than higher? and so therefore the market should be higher? for the same reason -- >> i'm not a bear on the market. but i'm saying if i'm looking at a less regulating financial market, citi is so huge and so intertangled and so overburdened by regulation, there's going to be benefactors of that, plus higher interest rates. >> so we've got to go. we'll have you back. you're not worried about the dollar getting too strong? >> no. >> no? >> no, because that'll keep the fed, joe, on the sidelines. they won't be raising as much as you might think if growth is as strong as i envision. as companies look to '17, they've got the capital outlay budgets. all of that is done now. my guess, you're going to see much better spending sooner. then you'll get the pop once things are legislated. >> he's out in southampton, you know. feeling good about him. pumping his own gas.

>> pumping his own gas. >> meanwhile, who's the dude at nuberger -- steve carell, that guy? >> steve eisman. >> he told us democrats are the party of compromise. said that with a straight face. >> the great thing is there's lots of different opinions. >> wow. >> that's aggressive. >> all right. >> if we'd all follow steve eisman during the financial crisis, we'd be in a much better place in life. separately, we've got a lot more ahead on "squawk." you're sticking around. up next, we're opening up cnbc's 2017 playbook. alook ahead at small business in america. plus trump says one web will create 3,000 jobs in the u.s. we'll talk to the founder of one web.

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welcome back to "squawk box." the futures have been a little bit weaker for most of the session after a -- one of e the worst sessions since the election yesterday. triple digit. the s&p has now turned positive though. now the dow. see. we've got charles kantor here.

already responding. although the nasdaq continues to be down 2.3 points. we're in the final days of 2016 so cnbc is breaking out the 2017 playbook looking at ways to make money in the coming year. kate rogers looks at what to expect in small business. >> reporter: main street is looking for trump to usher in business friendly policies. first, deregulation across the board. small businesses cheered at the recent halting of the department of labor's overtime rule. expect more to come. trump ran on promises of deregulation and small businesses are hoping for more including joint employer rules under the national labor relations board and policies under the environmental protection agency to be loosened. second, say good-bye to the employer mandate. with trump promising major changes to the affordable care act, it's likely the employer mandate stays in place. the rule which requires

businesses with 50 or more full-timers to offer health insurance, has been said to be an impedement. and republicans in control of congress mean a hike in the federal minimum from its current seems unlikely. but more action at the state and local level to pay for low wage workers. one thing is for sure. the idea of deregulation does have main street feeling more optimistic. the latest survey found sentiment soaring post election. now, whether or not that feeling stays remains to be seen. back over to you. >> and we have seen, of course, consumer confidence at a ten-year high. i'm curious. in terms of the holiday season, probably the most recent data points on small businesses, how did they fair? >> we don't have any figures

yet. but they weren't necessarily spending more. we saw the same on small business saturday. foot traffic was up. overall spending was down by about a billion dollars from $16 billion last year to $15 billion last year. seems like people are coming in, they're just not spending quite as much. >> all right, thank you. coming up, when we return good news for deal seekers. we'll tell you details after the break. and later donald trump says sprint and one web will bring 8,000 new jobs. the ceo of one web will be here to discuss. that's coming up here on "squawk."

welcome back to "squawk box." hulu heading to disney in its continuing battle with netflix. the streaming website landing a multi-year deal for the library of disney films includie ining and pocahontas. others like tarzan will hit in 2017. >> why are you laughing? >> i read that too quickly. >> mulan. it sounded like -- is that like a mullet? >> no. it's like a mulligan. >> she's a famous princess, man.

>> i know. i get a mulligan. >> there's a sequel. mullet. >> he doesn't have any girls -- i mean, daughters yet. >> yeah. working on that. >> so he's not familiar with the princesses. >> you knew it was mulan. >> the deal means that disney is splitting its movie library across multiple services. >> refere >> what a moron. i was trying -- >> i know. i know. >> you were laughing more than i was. >> because i knew i messed it up. >> you didn't go back. >> no. i didn't. >> mulan is pretty good. >> better than finding dory? >> much better. we watch them more.

there's a hahn character that's a total bad ass and carries an eagle on his shoulder. she saves the entire place. have you seen it? >> i don't know if i have. >> no? >> you will. you will. wait a couple years. you will. >> there's humor. there's great, good music. it's good, dude. >> okay. amazon adding another sales event to the calendar with just a few days left of 2016. announcing its first-ever digital day. the giant is discounting more than a thousand movies, tv shows, and games. also include major discounts for amazon's content subscriptions. all right. now to sports and a major deal for the national football league. it signed an agreement to stream live games on one of china's largest social networks. the service has already shown six regular season games so far, but the deal extends to the final sunday night football game

this weekend as well as three playoff games and the super bowl. cina. if it's china, it should be cina. they can also show on-demand clips. it can highlight videos and other nfl footage. according to peter schoeck our brilliant market guru person -- >> linux, he called it -- linus calls it linux. >> okay. >> do people still use it a lot? >> i don't know. coming up, we're going to get you set for the day ahead on wall street. check on oil and currencies in our trading block. also president-elect donald trump talking about new jobs being created in america with sprint and oneweb. we'll talk to the founder of oneweb in just moment.

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welcome back to "squawk box" this morning. natural gas prices falling this morning after hitting their highest level in two years in wednesday's trading session. the rise comes amid cold weather forecasts as well as the expiration of future -- also, government officials in india will reportedly consider apple's request for manufacturing incentiv incentives. apple is said to be seeking incentives to produce its products in india for sale in that market. huge potential opportunity for apple and perhaps its share price. toshiba's bearish week continuing. tumbling for a third day in tokyo after it faced a multi-billion-dollar write down.

housing data out this week is pointing to a rough start. diana olick joins us from washington. i guess it depends as it always does on where you are and what you're talking about. >> reporter: absolutely. i mean, look. all real estate is local. we know that. but nationally we are seeing no letup in home prices. the gains continue to grow and several major metro markets have hit new price peaks. the s&p shiller index hit an all-time high for a few months in a row. with a drop in november pending home sales. remember, november was when mortgage rates spiked post-election. and pending home sales are people out signing contracts in november. clearly those higher rates hurt. now, the average on the 30-year fixed mortgage is solidly over 4% right now. agents are citing that potential buyers are starting to lower

their price ranges. that's a problem because the supply of lower priced homes for sale is the leanest of everything out there. so here's a thought. what about buying down the mortgage rate? you can do that with more cash up front. you pay a certain percentage of the loan and that gets you a lower rate. you have to be careful on the math though. the savings only comes if you're in the home for a long time. at least seven years. but it's an idea and could save you over the long-term. back to you, guys. >> that's complicated. >> reporter: it's simple. it's really not complicated. it's just a percentage of the life of the loan. >> i can decide it. everybody saying we should have done 30 years. but that also depends how long you're going to be there, too. you need to do -- you can get like a point lower on a seven-year adjustable, right? >> yeah. we've talked about adjustable rate loans could be really good for people who don't expect to be in the home for a long time. you can do an ten-year arm. i've got a ten-year. much lower rates.

>> seems like there is low -- but some people say if it's this low, i'm going 30. it may not be, you know -- >> some people see it as a fourth savings account. in the old days you expected to be in the home for a really long time. 30 years, you're basically spending all that time putting that into a savings account for you when you retire. because nobody thought home prices could actually go down. ever. >> okay. diana, thank you. i'm still confused. but what else is new. anyway, thank you. oil prices and the dollar in focus for today's trading block. joining us now, managing director of fx strategy and a cnbc contributor. and john kyldoff also a cnbc contributor. kathy, i'll start off with you. tremendous move in the u.s. dollar. trading at the highest level in about a decade. so what happens here going into next year? >> well, actually today we're

getting a nice little bit of a pullback. and i think it's a great opportunity to start scaling back into the long dollar positions. we may see another half to three-quarter percent decline the next couple of days. i think when the new year starts, when trump takes office, you're going to see kind of a revival in the dollar rally. and what we're looking for in essence is kind of an initial push higher before some two-way trading as marktss try to figure out what we're going to get in the first hundred days. are we going to get that aggressive stimulus package? at least the start of the year, that optimism that everyone has had in 2016 is going to continue a little bit. but it's not going to be a one away up trend. >> so short-term dollar strength. does that mean short-term oil weakness? >> not necessarily. the correlation has broken down recently. i think the oil market's trying to price in the fundamentalal

setup and what may lie ahead with the production cuts that have been announced. that we're all waiting for. and it's loaded to one side in the market right now. shorts have covered. people piled in from the long side waiting for these cutbacks to come through. if they don't, there's going to be a big punishment in this market. >> why couldn't it be demand? we'd stop talking about supply. we do better here, suddenly rates don't stay low over there. the rest of the world starts growing faster as well. why don't we start talking about demand again and that offsets a stronger dollar? >> it could, joe. i just don't see china in particular -- that's the demand center. >> in supply so powerful a story here, i guess. >> very much so. and so is the sort of revival in the global refining setup. there's just been a huge increase in the amount of barrels that get processed around the world. middle east really built out a lot of refineries. the chinese are flooding the lower market with refined

product. they built these teapot refineries. you saw a big increase in their crude oil demand to feed those refineries. the problem is they turn all those around. export their fine product out in asia. there's just too much supply to not -- there's not enough demand on the, you know, for horizon here to do it. >> does that mean you don't believe in a deficit next year? saying we're going to have a deficit in the oil markets. >> no, i don't. i don't. those numbers aren't adding up for me. u i don't see this holding together. more u.s. production is going to come on too. over the past several weeks here in the u.s. with a lot more to come given where the rig count has gone. >> who are the biggest losers against the dollar strebt? >> the japanese yen is the

biggest loser. and i want to talk about the biggest risk across various assets. i think with pe ratios also so elevated that while we are looking for a continuation in the dollar rally, any hint of kbad news -- bad news, make sure you've got those protective stops in. when we do have an unwind, it could be quite aggressive given that we're up i think 16% in dollar/yen over the past couple months. >> at what point do you get worried about the u.s. dollar in terms of the u.s. equity markets? >> not yet. >> not yet, okay. >> i worry about the same things many of the guests worry about. which is it's time for us to get clarity around the rules of the game. the market now wants certainty -- >> it was by the rumor this whole time. >> because growth was so muted and expectations around more growth and less regulation is a powerful self-sustaining force.

but now as we move into next year from companies, we want clarity on how they're thinking of investing. and from policy makers, we want to know the rules of the game. the devil will be in the details. i mean, the refiners, for example, export four times more refined product in the u.s. than they import. and so it's -- it could affect all industries in ways that are not always obvious to understand at first blush. >> all right. kathy and john, thank you. coming up trumponomics. announcing sprint and oneweb will bring 8,000 jobs to the u.s. part of a pledge of softbank's ceo to america. we're back in moment.

welcome back to "squawk box." president-elect donald trump announcing that more jobs are moving back and being created right here in the united states. >> i was just called by the head people at sprint and they're going to be bringing 5,000 jobs back to the united states. they're taking them from other countries, bringing them back to

the united states. and masa and some other people were very much involved in that so i want to thank them. and also oneweb, a new company, is going to be hiring 3,000 people. so that's very exciting. >> joining us right now first on cnbc, the founder of the satellite and communication company oneweb, greg wyler is joining us. great to see you this morning. >> thank you for having me on. >> help us understand how this happened and maybe some of the back channel conversations with the trump administration. >> there's a lot of exciting things going on. masa had met with president-elect trump and discussed jobs and his investment in the u.s. at the same time we had been in discussions with masa with investment in oneweb where we're initially growing a constellation of 900 satellites to provide access across the u.s. and the world. and masa and donald trump in their conversation talked about creating 50,000 jobs. and masa investing $50 billion.

and subsequently we announced his investment in oneweb of $1 billion. so we raised $1.2 billion in our last round. and here we are today. >> what kind of jobs are these? these 3,000 jobs you're going to be hiring for? >> these will be very high-tech, highly skilled manufacturing and engineering jobs. so really right at the cusp of i hadly skilled manufacturing and engineering. >> and where will they be based? >> really all across america. we have a broad supplier base. so in florida, a lot of jobs in florida. a lot of jobs in arizona. maryland, virginia, and of course california. and many of the different states around in smaller numbers. >> greg. help us with this debate. i don't need to tell you this because i'm sure you've read it and know it, but there are people out there who saw the original announcement where masa son was standing in trump tower with donald trump when they made

this announcement that they were going to invest in the united states $100 billion. as part of this, 50,000 jobs were going to come of it. there were a number of people, i was one of them, that went back and looked at the front of the investing section of the journal a month prior to that physical announcement and said softbank was already going to do this. this had nothing to do with whether he became president or not. this is just an announcement. what do you say of that? >> i can't speak to it. obviously the plans had been going on before president-elect trump was elected. however, the excitement he brought to masa and the way they worked together and really energized the focus of the fund to invest this amount of money in the u.s.

remember it's a global fund so it could have been invested all around the world. >> the investments by softbank through that fund in your company was announced last week. was there an understanding that you would create these jobs and that they would be in the united states with the goal of meeting that target when you accepted the funds from softbank? >> what's interesting is we had spoken to donald trump and he increased it in oneweb. because of the discussion of jobs and job creation, we proceeded to look through our own future growth over the next four years as well as our supplier growth directly related to the jobs -- the contracts we'd be releasing. >> greg, the other thing i want you to try to help us with, when you think about hiring these people here in the united states, tell us about the thought process in terms of did you say to yourself, okay,

normally -- maybe not normally, but perhaps we would hire them and do it in "x" country and why we would have done it in "x" country and what the price point would be if we did it elsewhere compared to here? to the extent this could be a model for others. >> sure. we're a global company. right? we're building a -- the world's largest satellite constellation which will provide internet access to tens of millions and then hundreds of millions of people around the world. so it's a very large project. we've raised $1.7 billion to date. and so it's about a $3.5 billion project initially. then we'll continue growing from there. so we're looking at every country of the world. we're looking at where we're going to put our assets and where we're going to deploy resources. and the u.s. under president trump where he was talking about the taxes to make it more fair and competitive on a global basis is really important. also the u.s. has a tremendous amount of highly skilled technical capability that needs to be unlocked.

and this is really -- it was -- what he's talking about is energizing a lot of people i've been talking to about bringing jobs back to the u.s. and doing more in the u.s. >> and you do believe we have enough skilled workers to do this? >> well, we always could use more, for sure. >> but i mean, when you think about those 3,000 -- these are people who are based here, you think you know where to get them, how to fooind them? >> for sure. we have a great university system and a great base of skilled workers. but certainly bringing in more and attracting more people to the u.s. is great. but we have a really strong economic base and a really strong base of skilled workers. we haven't had trouble in the u.s. finding skilled talent for sure. we're building an incredibly new and ambitious system. we're providing access to nearly 10 million residential households. we'll be doing enterprise. we're providing internet access to aircraft and ships all around

the world. this is a fairly complex system. we found a great knowledge here based in the u.s. we do a lot of work also in other countries. >> greg, as you think about your business plans, how important will the u.s. market be for your prospects? >> it's interesting. our number one mission on oneweb.net, we talk about bridging by 2027. about half the world are without internet access. we're going to allow those people to come online which will of course boost the u.s. where we have such a great internet presence. the u.s. itself is interesting because according to the fcc, over 50% of the u.s. households are without access to broadband. so we'll be able to deliver broadband to those homes. for instance, every home in alaska will be able to bring online and make them economically relevant and give them access to the benefits of the internet. become part of the u.s. and just

like middle america. >> greg, we appreciate your time this morning. we hope you'll come on back as you do make the 3,000 hires and give us an update on how it's going. >> will do. thank you. >> thank you. happy holidays. >> you too. coming up, this morning's biggest movers and later "new york times" columnist jim stewart is our guest host starting at 8:00 a.m. eastern time. stay tuned. "squawk box" will be right back. this is my retirement. retiring retired tires. and i never get tired of it. aryou entire prepared to retire plan your never tiring retiring retired tires rerement with e*trad i'in vests and as avested is invest wh e*trade, where vests can investigate and invest ivests. not in vests. sign up at etrade.com and get up to six hundred dollars.

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all right. welcome back. let's take a look at a couple of stocks to watch this morning. uh-oh. finally down for once. nvidia, one of the biggest gainers anywhere is down in premarket trading after seeing a ten-day winning streak. and yesterday short seller citron research said the stock is way ahead of where it should be. citron sees it falling back to the $90 level. senior housing property trust was rated overweight. favorable demographics and a leading position in the senior housing market bodes well for the investment trust. and defense contractor raytheon was awarded a new tomahawk missile contract by the u.s. navy. it's worth nearly $304 million.

and alere is appealing a decision to revoke medicare privileges for ariva diabetes unit. they've been accused of submitting medicare claims for people who had already died. bad. >> yeah. pretty much. >> medicare. some of them apparently voted for hillary too. some of the same people. >> the dead people? >> i'm kidding. >> i know you are. >> maybe. what do we know? what do we know about that? our guest host this hour, charles kantor, managing director of neuberger. let's say five years. are you a 25,000 person? that's like 3% a year. can we do something similar to

the past where we haven't done the math on if that were to double. we're talking 35,000. are we too focused on this past? >> it's hard to predict those moves of magnitude. but i do think -- look. i think the conversation changed meaningfully post trump. certainly my view of perspective returns changed meaningfully. i was very much in e the camp that if you had a 10-year at 1.5% to make 5% or 6% in equities in a slow growth environment was going to be very difficult. i think coming out of the election i definitely think traditional type of equity returns 8% to 9% is very much on the table for those that can take the time you're suggesting. at least five years. at the end of the day taxes do matter. nothing adds to cash flow and

profits more than less taxes. you don't need revenue growth to create $10 and $20 earnings per share. i think the conversation for the first six to nine months and for how long the conversation takes place will be around what does lower taxes mean, who benefits, who doesn't benefit, and it'll change decision making in corporate board rooms. >> we messed up the '70s, didn't we? i mean, did we -- policywise? because what i worry about and no one's talking about it, the dow hit 1,000 in 1969. it didn't hit it again until 1982. so i don't want -- i mean, we're talking about 20,000. think if 13 years from now we're trying to get above 20,000. people like buffett say, we're going -- over time it goes up. right? you don't -- we messed that up in the '70s. in the oil shock and inflation. wage price. we did so many things wrong in

the '70s that kind of explained it. but is it possible that the market right now is totally overvalued and that we turn around for five years? >> i don't have that view. i don't believe the market's overvalued. i don't buy the idea that pes are high. pes are high versus where we've been in the past. but the "e" is far less capital intensive today than it's ever been. if you don't adjust for the capital side, i think you're making a mistake. my argument is many of our technology companies, many of our human capital businesses, the e's are understated because all the investing is taking place in the income statement with the people sitting around -- >> there are -- if you're a real worrywart, automation is coming in. it's tough to support a middle class. there might be some structural problems that mean we don't always go up in the stock market.

>> we don't always go up. there will be volatility, but we're not competitive globally on taxes and we have wonderful ingenuity -- >> that breeds revolution. >> the u.s. has wonderful ingenuity and optimism. if you don't break that, you can't imagine how great the world will be going forward. >> all right. >> thanks. >> thank you. when we return, there may be only two days left to make those final trades, but there is still time for investors to cut their tax bills in the new year. we will explain when "squawk" returns in a moment.

is santa claus running out of steam? the dow suffers a triple digit loss for only the second time since the election. a roundup straight ahead. tech media and big money. jim stewart joins us with his predictions for 2017. plus breaking economic news. a key read on jobs just minutes away as the final hour of "squawk box" begins right now. ♪ live from the most powerful city in the world, new york, this is "squawk box." >> welcome back to "squawk box" here on cnbc. i'm joe kernen with andrew ross

sorkin and melissa lee. our guest host jim stewart, a "new york times" columnist and also a cnbc contributor. that's how he introduced himself at dinner parties just to elevate himself a little. take a quick look at the futures which have been flat for most of the morning. finally turned positive, but only a little. the dow is indicated up 5.3. the nasdaq still indicated to open down a little bit less than a point. treasury yields have been moderating. the 10-year now below 2.5%. 2.48%. similar things in currencies as well. a little backup from the recent moves we've seen that we thought would last. just keep going and going all the way to 3% on the 10-year. and parity on the euro. >> never goes straight. no straight lines. making headlines this morning, russian president putin says a syrian cease-fire

agreement has been reached to take effect at midnight tomorrow. he added that russia will continue to support the syrian government. russia's news agency quoting the defense minister there saying the u.s. would be invited to join in the peace monitoring process once donald trump becomes president. but perhaps only once he becomes president. more on this story in just a minute. we'll talk a lot more about it. separately, in u.s. political news, president-elect trump announcing yesterday that sprint will bring back 5,000 jobs back to the u.s. from overseas and satellite company oneweb will also add 3,000 jobs in the u.s. here's oneweb's founder on "squawk box" in the last hour. >> these will be high-tech highly skilled manufacturing and engineering jobs. >> and where will they be based? >> really all across america. we have a very broad supplier base. so in florida, a lot of jobs in florida. a lot of jobs in arizona,

maryland, virginia, and of course california. and many of the different states around in smaller numbers. >> and staying on the topic of the economy this morning we have two reports to consider. weekly report on jobless claims in december. trade deficit data out at 8:00 a.m. eastern time. toshiba down another 13% in asia overnight. on credit downgrades. earlier they said they face a possible multi-billion-dollar writedown of its nuclear business. and mylan launching generic zovia pills in the u.s. they have about 240 drugs pending regulatory approval accounting for more than $95 billion in annual sales. petrobras seeking to reduce its debt. burger king chains are owned by restaurant brands international.

this follows similar moves by mcdonald's and wendy's. and sears has secured $200 million in credit to help fund their operations from a hedge fund run by the sears ceo. shares of apple, take a look at them today. requesting incentives in india. those will be considered next week. "the wall street journal" reporting apple is seeking incentives to manufacture its products within india for sales in that market. and some big picture news breaking in the last hour or so. earlier this morning, russian president vladimir putin announcing an agreement for a cease-fire in syria with russia and turkey acting as monitors. matt bradley will help us with this. he joins us now from london with more. hello, matt. >> reporter: good morning, joe. it's another day and it looks like another plan for a cease-fire in syria. this one negotiated between turkey and russia. as you mentioned just announced this morning by russian president vladimir putin.

turkey has already signalled it will agree. but glaringly absent from this announcement is the united states. the united states seems to have been left out of all these negotiations. and now it's simply turkey which typically backs the sunni islamic rebels and moderate rebels and russia which backs bashar al assad and hezbollah. that are fighting in syria to support bashar al assad. you mentioned this should be coming into effect at midnight tonight. and as always, it won't be including groups like islamic state and the al qaeda affiliate in syria. now, these are typical additions to any sort of agreement and it means russian or syrian forces will still be able to attack islamic state or other hard groups with air strikes or field movements on the ground. all of this if you remember comes only a couple of days

after syrian troops and their russian air support pushed rebels out of the northern city of aleppo. syr syria's largest city. this is something of a victory march for all of these that participated in this. the united states won't be participating. but all of the usual problems that have gone into so many announced and then failed peace negotiations are going to be happening here. again, a lot of the major parties who are participating in this conflict won't be part of this peace negotiation. and it seems that with all of this going on, there's so much diplomatic tension. the russian ambassador to turkey was shot dead by a jihadist. so all of this is really hanging on just a thread, joe. >> i know it is. what we've been focusing on here, we haven't been talking about syria. we've been talking about the settlements in israel.

i don't know. that's for people that do these things, matt. but i appreciate it. got that out of the way now. the settlements. maybe we should have been, you know, figuring this out too? andrew, can we do both? can kerry do both? i don't know. i'm sorry to ask you that. >> why are you looking at me? >> you've got your phone here. could that go off any minute and you're out of here? are fwhe that position right now? >> you think donald's going to hire me that quickly? >> no, no. how long are you going -- he's adding to his family. >> jim knows this. >> very exciting. and it's going to be a little girl. i love it. elizabeth warren sorkin. this beautiful. >> this is so wrong. >> little lizzy? >> beth. beth sorkin. >> yeah. beth. how long are you -- >> we don't do jokes about family. >> that wasn't -- okay. all right. i'm sorry. i apologize. but that's a beautiful name.

better than hillary. i mean, you can get rid of that one. how long will you be -- how long will you be gone? >> not long enough for you. not long enough for you. >> paternity leave is -- can be big. i mean, are you going to take a month off? >> they don't do that. you need to -- i thought you were going to negotiate this for me? >> i thought i had. >> you got to talk to the people then. >> at least a week then? >> i think i'm going to take a couple days -- >> that's it? >> well, because my parents are going to be around. and then later when everybody disappears and it becomes hard, that's -- you know, in the beginning it's not as hard. >> you do what you need to do. >> i'm glad we're doing this on the air, though, because everybody wants to know this stuff. we have our guest host here who's waiting. he woke up early to hang out with us. jim -- >> i was wondering when we were going to talk about that. >> jim stewart of "the new york times." also a cnbc contributor. do you have any names you want to throw out there? >> well, no.

but i do think -- remember, it's going to be years before -- well, a few years before she really knows her name. i think it would be a mistake to name her after someone who's currently in the news. i mean, you've got to look at a lifetime here. >> okay. what do you think about being born to a trump world? do you think i should put the money right into the 529 immediately? let's make this personal right now. >> she'll only be 8 at the maximum reign. >> are you predicting that right now. >> no, i'm not. definitely not. i'm making no predictions. after this year, i'm kind of down on predictions. >> we have to do a couple predictions here. >> it's fun to make them, but we have to take them with a grain of salt. >> i want to know about the avatar theme park since you're the disney guy. did you see this? an avatar theme park? that could be -- i mean, could

we be avatars and fly around? >> why not? i mean, we can have driverless cars, why can't we do this? i mean, the technology is going to be great for these new attractions. i think there could be some really big breakthroughs. maybe that's the one. >> is a lot of that vr? >> exactly. that's going to be the new thing. we're just on the cusp of that. i mean, the theme parks, they ought to have a lot of fun with this but they have a lot of new possibilities. and by the way, these theme park attractions can be big. look at harry potter this year. i mean, that thing is huge. by the way, they can continue to tweak these things and develop new aspects of it. so this immersive reality is a big deal. i do wonder -- you're talking about kids growing up. at what point does their sort of virtual reality take over from actual reality? >> why do you have to go to the theme park? >> they're kind of converging here. >> you never move, right? >> yeah. how do you get them to, like,

read? >> that's a whole other conversation. let me ask you a different question which is i think of you as a media guy, a deal person, and a legal person. so under a zth administration. trying to break up deals. except for some of the things on the campaign trail. where do you land on that? once i know where you land on that, then i want to talk about what may or may not happen as a result of it. >> antitrust law has traditionally started with economic analysis and a series of consistent principles. and that came under attack in the obama administration really from a progressive left wing law professors trying to get over this very economic analysis and look at things like freedom of expression and these things. and i -- one of the questions i was raising was if you wipe out

the old chicago school, richard posner approach, trust enforcement. what do you replace it with? what are the new rules? what are the rules that will take over from these defined principl principles. and like the time warner deal, it's going to break up big things. this is not what antitrust is about. it's not about business per se. economics realizes there's advantages. businesses may come from innovation. so there's a sophisticated body of rules there. >> in terms of the kind of people you imagine are going to be around the hoop on those big issues, do you think that major mega transactions will be -- for the past couple years, lots of big deals have not happened in part because there was a worry that d.c. would block it.

>> let's take the time warner -- at&t example. there is virtually no overlap in their businesses. it's going to be big, but in theory there should be nothing in existing case law to stop that even though it's big. the opposition of that mostly came from the left. the anti-big forces. trump popped in and said i'm against these two. and if you analyze it, they do not have too much power. they are strained at every layer. that competitive landscape doesn't change with that merger. if you throw out the old rules which would have let it go forward, then what's the new rule that's going to block this kind of thing? and i've never seen anything from trump to suggest that he is an antitrust geek like a lot of

these other people. and the new attorney general, too, by the way. total blank slate here. he wasn't picked off his antitrust -- >> let me throw a different one to you. we talked about masa son this morning. we talked about sprint brinking back 5,000 jobs. one on the table people want to happen it would be sprint and t-moblie to merge. that would make a lot of strategic sense. but there has been a view that d.c. at least in an obama world would not approve a transaction like that. if you were brought into the board of sprint or t-moblie to pine on whether this could be allowed in a trump administration you would tell them what? >> this is a simple one. because under traditional antitrust analysis, you block this. these are direct competitors. you're taking it from four major carriers to three. and by the way, if you want to look at jobs, when you have horizontal competitors who merge, one of the main reasons to merge is to be more efficient and to get rid of overlapping jobs.

so you lose jobs. >> right. >> i don't see this being a win for trump philosophy on either level. it reduces, it does not increase competition. it's not good for consumers and it costs jobs. so that's an easy one. >> there is a view that trump and masa son had in part done some of these announcements because of a hope long-term -- >> we saw that in the stock prices. we saw sprint go up. >> here's the problem. when you start substituting ad hoc judgment for rules, well, you don't have rules anymore. you start wondering why did this go through and why not that one. saying who's the money and who's the crony. by the way, going back to your initial question, i think there's a good chancetime warner does go through. because in the end, they have a good argument to make. they have powerful lobbying forces. they have good lawyers. they're going to be all over this with the career people who

are comfortable with this language. i think it will be hard for trump to step in and block it without any good reason. >> jim stewart is going to be sticking around for the rest of the hour. thanks. >> sure. coming up, tips for last minute end of year tax moves. and we have an extra second this year too. first as we head to break, check out this year's nasdaq winners and losers. stay tuned. you're watching "squawk box" on cnbc. s a mobile trading desk, i c take my trading platform wherever i go.u know tm seamless syncs across all your devices.the. sync your platform on any dece with thinkorswim. only at td ameritrade.

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anything with a screen is a tv. stream 130 live channels. plus 40,000 on demand tv shows and movies, all on the go. you can even download from your x1 dvr

and watch it offline. only xfinity gives you more to stream to any screen. download the xfinity tv app today. welcome back to "squawk box." only a couple days left to make those final trades, but there's still time to cut tax bills. kelly grant joins us now with some last minute money moves you've got to make. what's number one? >> first thing you want to be thinking about is really making sure that you're getting those charitable donations in. obviously the irs is going to let you generally deduct up to half of your contributions based on your adjusted gross income. you want to think of getting the last minute ones in on saturday. we know charity navigator says it's a quarter of donations come up on new year's eve. get the check in the mail, reup your museum membership, all of those.

>> you have to be thinking of retirement this time of year. making sure you're contributing the most you can. >> not just contributing but at this point you want to be watching out for this thing called minimum required distribution it's the minimum amount they require you to take from retirement accounts this year. it's not just if you're retired. if you have inherited an ira or retirement accounts with b you might have to take this too. it's a nasty penalty. it is 50%. so really make sure you're getting that in. fidelity says about mid-december, 37% of people that need to take one haven't done it. >> any deductions we don't know about we could take? >> especially if you're in the media. >> all those expenses you want to be thinking about getting in last minute here, that's a great opportunity to get some deductions especially if you've got some side businesses or did -- >> side businesses. >> you've got those. >> i've got some side businesses. >> also, what about giving stock? because that's always -- that always seemed to me one of the big tax giveaways. >> everyone says you should give

stock. >> give appreciated stock. >> but it depends how much you're giving. i think you have to give a substantial amount of money in stock otherwise i think the charity looks at you like what are you doing. you're not sending them a hundred dollars in stock. >> come on. >> it's more hassle for them to handle it. >> oh, come on. i've never seen a charity object to a gift. what do they want? don't give them anything opposed to a share of something? if they complain, they're the scrooge. >> and they don't need the money, clearly. >> they're always saying every dollar matters. >> but in the end probably a check or online donation is going to be the easiest for them. >> but you lose 3% if you use an american express card. you've got to factor in -- what does it cost them to get rid of the stock? >> for them they go through the transactions and hope they're timing it right.

>> we could lose that next year. >> you can take advantage of the losses. maybe that's a little more valuable this year ahead of the tax kutss that could be heading your way. >> right. i mean, i like that break. but if i was going to be revising the tax code, i could see don't give them that. make them pay on it again. >>. >> you think there's a lot of people that could take quite a few? >> yeah. and the big givers. i think it makes a huge impact. >> kelli, thank you. coming up, appropriatiprepa new year's eve underway. and why one town is hoisting a giant sheriff badge above its local museum. we've got that story and more with jim stewart when we come back. you're watching "squawk box" on cnbc. first in business worldwide.

2017 is approaching. towns across the world are preparing to ring in the new year. everyone gets a new year's kiss in hershey, pennsylvania. the company is dropping a giant hershey kiss at midnight on the 31st. it stands seven feet high and weighs about 300 pounds.

meantime, in north carolina celebrating with a tribute to the andy griffith show. the town is the inspiration for the fictional town of mayberry. shazam. they'll be hoisting a giant sheriff's badge high above the museum of regional history. love andy griffith. love aunt bea. do you like goober or gomer more? >> gomer pyle more? >> and goober was his brother. you remember mr. furly. that's where he made his fame. don notts. >> i only know mr. farley. >> yeah. that's right. don notts, they only gave him one bullet and he wasn't allowed to put it in the gun or anything. he didn't need it there. >> mayberry. >> and you were opie. >> of course. coming up, breaking economic news. we're moments away from jobless

claims. market reaction is next. as we head to break, let's see how we're shaping up. turned positive on the s&p as well as the dow. still quite a bit aways from dow 20,000. stay tuned. don't let sinus symptoms bring you wnow! because you've got a lot of cheering to get fa sinus relief.witvicks sinex. sinex. the congestion, backprsure, in. get fa sinus clear your head, medicine. relief.witvicks sinex.

♪ we are just seconds away from weekly jobless claims. we finally turned slightly positive on the futures. rick santelli standing by at the cme. the numbers, please, please. >> good morning, joe. please. and your wish is any command. minus 65.3 billion. the trade deficit, little bit larger deficit meaning a bigger negative number than we anticipated. that follows a subtle revision to last look originally at 62. dips a bit under 62. 65.3. boy, that is the biggest deficit of the year, actually. you have to go back a ways. you have to go back to march of 2015 to find a bigger one at 69. let's look at november preliminary inventories on the

wholesale side. up 0.9%. it's a bit more than expected. if we look at the retail inventory month over month, that was up 1%. jobless claims, 265,000 and even 10k under last week's unrevised 275. and finally on continuing claims, 2.102 million. that's about in line, maybe arguably a little bit smaller. and that follows a subtle revision to our last outlook that now stands a whisker under 2.04 million. what's notable? the dollar index coming down under 2.5 in tens. we haven't been there on a closing basis since the day before the tightening. which makes it 13th of december. also hasn't happened since the session before the fed's december tightening. bund yields are hovering around

18 basis points. seems there's a reversal. maybe there's a bit of a rebalancing going on. if you continue to monitor all the markets, i would think that the weaker dollar and drop in rates may make it a bit more difficult to ascertain the 20k market. melissa lee, back to you. >> all right. thank you, rick santelli. not too much movement there on the futures front with the dow and is s&p looking to add small this morning. john riding is a chief economist, michael farr. they join us to decipher this economic data. i would think the claims numbers, it's a strange week to analyze. >> well, it is. but claims numbers generally have been very low. and 265, 275, 250, honestly it's all about the same number. what it tells is american companies are still reluctant to

lay off labor. that's one of the themes that we've seen with some of the announcements about -- sprint, for example. returning jobs. i think there's going to be a political -- risk of a political backlash on redundancies into 2017. but think about it. in the time they lay off 250,000 people per week. and yet we still create 2.5 million jobs per year. the u.s. economy, got to remember, is a very dynamic economy. and i hope we don't lose sight of that. that really we need to think more about job creation. this tells us that people are still very reluctant to lay off labor and are still hording labor. >> i think that's interesting. it's something i haven't heard myself, john, the notion that companies may be reluctant to lay people off. because of the political repercussions. opposed to the pressure to keep jobs in the u.s. or the creation

of jobs versus overseas. >> well, i think we've seen that as a theme. we saw that with carrier. but i think one of the more important things for creating jobs here, and i hope the administration focuses on first is reducing the corporate tax rate. the corporate tax rate is 35%. it's more than ten points above the average corporate tax rate in the rest of the developed world. so it's a real big penalty on creating jobs here, on undertaking investments here. and the thing that was missing in this last business cycle has been growth in capital work. we have been used in growing capital per worker 3%. it has been flat for the last eight years. so we need companies to see the positives for investing in the u.s. and first big positive will be to get rid of the negative of undertaking activity here versus overseas. >> michael, have we factored in -- let's say the tax rate

goes down 10%. have we factored that into s&p 500 earnings right now? >> it's getting there. i think the surge of cash is being anticipated. and markets have really traded up in anticipation of all of these wonderful policies that i think will be hugely stimlative if they happen. they're still a year out but markets are pricing them in now. and i don't think we're pricing in the disappointments that could come from washington. so yes, we're beginning to see it. but we're ignoring a lot of headwinds like that trade deficit number that rick just reported. with the stronger dollar, i think that number is going to get wider. and that's about according to our analysis about 0.9% off of perspective gdp growth. things will be great in a year. >> what do you do if you're somebody who has made, you know, 14% on the dow or whatever it is

and made the gains from the election. let's say financials. what do you do come january? do you just sell at that point? the notion is that people are not going to sell until the new year because they don't want to take the gain until the new year. which tells me you want to sell before then. you want to sell before everybody else sells. >> absolutely. you always want to try to be in front of the herd. this idea somehow you're going to time this properly i think makes no sense. i mean, i don't know of anyone who was calling for a 14% year last january. and in fact, if you remember back to last january and february, there was a waiting and gnashing of teeth. this was going to be the big correction. it did get down more than 10% but it wasn't the bear market we've all been kind of expecting after this huge run up. >> right. >> so i think that, you know, lots of bear markets have been predicted. not as many have come to fruition. this could still be a strong year even though things are starting at an expensive point.

>> let's say the dollar index remains at 14-month highs. does that box the fed into a corner? does that change the number of rate hikes you anticipate? >> no, i don't think so. i think the dollar is going to stay higher. and we're going to get -- have to get used to larger trade deficits. because if we get fiscal stimulus, people forgot we've been dealing with an economy with unemployed resources. the unemployment rate is now 4.6%. if we stimulate demand, where is that demand going to flow? and it's not going to flow wholly into u.s. companies. some of it's going to flow abroad and we're going to see larger trade deficit. to me the idea is subtracted from growth is an odd way to put it. really the economy is constrained because we're close to full employment. and so that brings me back to the idea that we have to focus on things that boost capital spending and boost productivity per worker. because one of the sad things

about this recovery is for the last five or six years, we've had the lowest productivity growth rate per worker that we've seen in the last 50 or 60 years. and so, you know, i think -- i'd like to really see that focus on boosting capital spending through reducing the inhibition on the undertaking activity here. and the fed having had the pressure taken off is probably to go on with -- >> thank you. >> john, john -- >> last word, michael. >> all right. isn't the lack of investment in productivity really a result of the lack of wage inflation? i mean, there've been -- we've had very high unemployment. you've been able to get a lot of employs. you haven't had to give anybody wages. you haven't had to invest in productivity. that could be changing now. but aren't we at an inflection point there?

>> well, we've had lots of unemployment in the past. but that growth and capital labor ratio has been through cycles. and the last seven years has been very, very different from what we've seen since the end of the second world war. >> all right, guys. thank you. >> thank you. twitter's good for a few things. so i whistled the leave it to beaver -- >> ooh. >> i don't need to look it up. i know it. >> oh, yeah. >> and yet there was a guitar playing. in fact, goober was gomer's cousin. you asked when it ran. 1960 to 1968. then there was a spinoff in 1968. never placed less than seventh on the nielsens and has been ranked the ninth greatest sitcom. >> news you can't use. >> exactly.

>> good to know. that's what we should -- we should have a segment called that. news you can't use but good to know. >> good to know. michael farr, i used to think he should run for office because he looks like -- >> great hair. >> yes. i'm surprised trump hasn't brought him into the administration. >> could be mike pence's stunt double. washington's agenda for the new year, congressman bill pascrell is going to join us on set to talk trade, jobs, and more when "squawk box" comes right back. lookinfor balance your digesve s

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donald trump is expected to tackle tax reform and obamacare in his first hundred days as president. those two debates should give us a view of how trump plans to govern. joining us now is the democratic congressman bill pascrell. new jersey's ninth district. he serves on the house ways and means and budget committee. where is the ninth district, congressman? >> ninth district is part of pasek county and a couple towns of -- >> you see andrew's idea of new jersey earlier. implying everything in new jersey smells. >> out of five, i'd give him 1.5. >> that's what we're dealing with here. what's interesting is it's almost as if donald trump's rhetoric or tax plans, you find that more palatable than some

democrats than congressman ryan's plans. >> ryan's numbers never added up and they're not reasonable. and they're nothing new because this is what he's been pushing for years. >> which parts of his plan do you think are -- >> he uses a lot of the aca money, the affordable care act money while doing away with the aca. i find that to be a remarkable feat. and he's staying with it. we can meet at some compromises. we can have some reconciliation. there's no two ways about this. but if you're going to try to get american people to do the same thing we did in 2001, 2003 where we had massive tax cuts and that increased when you're doing the interest on those it's a fascinating chart. you see how that was two-thirds

of the total deficit then. developed during the bush administration and continues to develop now. there's a bigger deficit ahead of us. if we're going to do the same thing now regardless of the way you're talking about the trump plan or ryan plan and not pay for it and claim that it's revenue neutral, i don't see how you do that you look at ryan's booklet on better way which hasn't really changed. and you don't really get into the weeds with it anyway. so i think we don't want to replicate which led partially to the disaster we had in 2007 and 2008. >> that's hard to connect some of those dots. so you could see some crossover from your side of the aisle to make up for some of the things

the deficit hawks won't go for on the right? >> yoe, we have a number of people that are on the ways and means committee now that were back on ways and means in 2005 and 2006. believe that we should lower our corporate taxes. there's no question about that. but we say if we're going to do that, we need to have something on the other side. we need to deal with the guy and gal on main street. we need to deal with what they face day in and day out. if we don't do that, we're not going to have reconciliation. >> we heard that a lot for eight years. >> you'll hear it more. >> you deal directly with them. but we've really gotten nowhere. and if we had overall growth, trickle down people said it was proven it never happened. but if you grow the pie at 3% let's say gdp, sometimes the labor market gets tighter, the wage gains start coming. and maybe, you know, maybe we should try that.

>> i don't disagree with you, joe. but congressman camp, former chairman from michigan, it really made a major effort to divide us into bipartisan groups to deal with real estate taxes all the way to you name it. it worked. until it came time to develop the final plan and then democrats disappeared. now, there are 24 republicans on the ways and means committee. 15. we're not going to accept going to the floor without going to committee. there's a big deal on this. this is very serious business. we need to discuss it, we need to debate it. i mean, you're looking at -- look. i represent a certain part of new jersey. the -- what they're trying -- what they're selling right now is doing away with the deductible for local taxes, state taxes, doing away with the mortgage interest deduction.

doing away with bond deduction did. this kills in new york which pay into the tax revenue tremendously and get very little back in return looking at it proportionately. i'm concerned about that. so we can make some adjustments. we can, you know, barter some things. but the fact is we want to see a total package. and what it's going to do to revenue and whether it's going to blow another hole into this deficit. we've talked about it for eight years and beyond. and if we want to make it worse, we know how to do it. we're good at that. >> congressman, thanks. the garden state, sorkin. not the sulfur state. it's not the -- why would it be called the garden state if it didn't smell like a garden? >> yeah, andrew. >> what part of it -- is it the sewer state is that what you think it should be? >> soprano state. >> see. he's taking himself a worse -- >> i expect that you can educate him. >> then you haven't seen the

show. >> thank you. i want him to come in longer. we got a lot to talk about. >> what'd you want to talk about? >> i want to understand what republicans -- where -- >> he's a democrat. >> i know. where the fault lines are in the republican party to the extent he thinks he's going to have any allies on the issues he has. >> some of them may not -- they may -- guys on the right -- >> i mentioned three areas. just now. >> right. >> municipal bonds, mortgage deductions, interest deduction. and the third one -- >> uh-oh. it's an oops moment. rick perry. >> those are things that i think we can bring some -- we can come together on. and of course local taxes and state taxes. that's a big one. >> thank you. >> that hurts us. badly. in new jersey and new york. >> okay. happy new year. thank you. >> god bless. happy new year to all of you. coming up, 2017 predictions from our guest host jim stewart. you got to stay tuned.

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coming up, when we return, jim stewart story to watch in the new year. think about that one, jim. and later today, don't miss the

ceo of planet fitness. he's going to join "squawk on the street" to talk business and new year's resolutions at 10:50 eastern time. stay tuned. we'll be back in a moment. f bph. tell your ctor t your medicines, and ask if your heart is hethenough for s tell your ctor do nake ciisf ucines, itras for cht in, adempas® for lmonhyrtension, and ask if your heart is hethenough for s this may cause an unsaf drn ood essu. doot dri aol in cess. to aid long-rmury, gemedil help right awa for an erectn lastin more than four hours. ifou have a sudden decrease or ls ofea or vision, orn allergic reactn, op taking cialis and get medical help right away. orn allergic reactn, ask youroctor about alis

welcome back to "squawk box." our guest host this morning, "new york times" columnist jim

stewart. we tease that you were going to tell us a story to watch in 2017. do you have a story for us? >> well, the story to watch is no mystery, the t, t is story to watch. i'm putting myself on a column diet. can only write about trump once a month. >> once a month? >> once a month. well, i do four a month. >> right. >> because we have -- i mean, we have something totally new here. i kind of think this is going to be like a virus and congress and washington is the immune system and we're going to watch these things come together over the next year. it's going to be a huge story because trump -- whether you like him or not, he is a change agent. he is not doing things the traditional way. and i will give him credit for this. i think he really will shake things up. he doesn't -- he kind of doesn't care, you know, enough. that's why i think people -- >> use as a delivery system for therapeutics many times. >> many times.

>> immune therapies. >> so the virus doesn't necessarily kill the host. >> but there's going to be a huge amount of action here. and there is the potential for tremendous change. and also as one of the guests pointed out, the markets may find there's going to be some periods of disappointment here where he doesn't have total and control power and he is going to bump up against a lot of constraints. so things may not happen as fast as they're hoping for, but i think things are going to happen and that's going to be a big story. i mean, overall from a purely economic perspective and from the market perspective i think it is very positive. i think this rally is not irrational, there are perfectly sound reasons for this. i think tax reform if done right could be huge. by the way congressman just on talking about revenue neutral. maybe revenue neutral isn't the holy grail. was the reagan tax reform truly revenue neutral in its first year or two? not necessarily. >> even if it's not neutral, you can't just throw out dynamic scoring. if it doesn't totally make up for what you lose, if it does

engender some growth and tax receipts go up, maybe it's not as horrific as the left -- >> exactly. this is an enormously complicated thing, but if something gets done constructive, i think that's going to be huge. are the economists proverbial animal spirits going to get unleashed here? they've kind of been tied up since the financial crisis quite a bit for all kinds of reasons. and i think we are perhaps on the cusp of a significant growth period. >> kind of like to hear that. and you're a media guy. this is not good for media, are you kidding me? >> no, this is great for media. >> it's fantastic. it was great for "new york times." look at the stocks. >> like fox news and with obama. >> oh -- >> i hope it's great for responsible media. media that actually does care about the facts and real facts -- >> which media? >> speaking of the media -- well, i think right here. starting right here. >> "squawk box," okay. >> but i think people do care in the media. again, i will say i was looking back at my earlier prediction columns, i'm getting ready to write another one for next week

and i looked at them all and i kind of said i should get out of the prediction business, not that it was my predictions but i was quoting all kinds of experts and everybody's wrong every single year. so the one thing we know is some of this conventional wisdom is not going to turn out to be true. by the way, that's where you ma money, because it's what everybody expects, that's not -- you can't get an edge there. >> so here's the question, the expectation right now is that it's going to be tremendous growth, big year. that's the new conventional wisdom. so is it like opposite day? remember when jerry seinfeld? >> it's going to be even big sgler once a contrarian becomes mainstream, what happens at that point? >> so he would say it's underestimated. >> it's going to be biglier than you ever thought. >> look last year one of the biggest surprises was oil and commodities. january and february you couldn't give those stocks away. i was looking back at freeport mcmoran, went from like $2 to

$15. there's a huge rally. it's often sectors individual stocks that will be surprises there, as well as the headline. >> and the combination of actually maybe something happening and just people thinking there is something to people just doing more based on, you know, nothing's really changed. but they actually feel better. it's self-fulfilling. >> while certain growth expectations are very high, other expectations are quite low. i mean, you ask people around here what do they think of trump, a lot of people think we're on the brink of having a lunatic in charge. and if he actually behaves in a reasonable -- if he rises to the office, for example. if the office makes the man, that's going to be a huge upside surprise. >> jim stewart, happy new year. melissa, thanks. make sure you join us tomorrow. you're going to be mad. "squawk on the street" is next. good morning and welcome to "squawk on the street." i'm david faber along with sara eisen, wilfred fro