the markets cheer the gop tax blueprint. we'll tell you what reforms could mean for companies and investors. congress demands answers from facebook, twitter, alphabet about russia's role in the 2016 election. and pop culture icon and "playboy" founder hugh hefner has died we will talk about his life and legacy it's thursday, september 28, 2017 "worldwide exchange" begins right now. good morning welcome to "worldwide exchange" on cnbc. i'm sara eisen >> i'm wilfred frost good morning to you from me as

well good morning to you. great to have you back >> good to be back >> let's get to the global market picture this morning. coming off a day where we did enjoy the rebound that we flirted with the day before, it was led by the nasdaq which is up over a percent. the s&p was up about 0.4 the dow up a quarter percent tech was a big part of the rally, so were financials. banks rallying for two clear and simple reasons, yields were rising, that's good for banks. talk of tax reform which is good for banks. this morning basically flat. a mixed picture. a bit of green and red on the three main indices ten-year treasury for you, yields were rising yesterday back to above the 2.3 level. 2.34 not just a domestic story. yields have risen around the world this morning the ten-year treasury note, ten-year bund yield in germany back above 50

basis points just below that level now. the place that's seen yields rise significantly during september is the uk, where we were below 1% on the 7th of september, now close to 1.4% certainly helping equities yesterday here in the u.s. as yields rose. >> let's get to the top stories. the white house and house republicans releasing their tax plan the proposal would provide large tax cuts to corporations and individuals. among the key parts, the plan would lower the corporate rate to 20% it eliminates four income brackets the top rate on individuals could drop to 35% from 39.6% it doubles the standard deduction andincreases the child tax credit it also repeals the alternative minimum tax and estate tax president trump making his case for the plan late yesterday.

>> our country and our economy cannot take off like they should unless we dramatically reform america's outdated, complex and extremely burdensome tax code it's a relic got to change it we have to compete compete with other countries >> forms are expected to cost trillions of dollars national economic council director gary cohn and house speaker paul ryan will be joining the "squawk box" team live the biggest question out of this proposal is where do the offsets and the pay forcs come from. there's bethe biggest winner out of this, clearly business with the reduction of the corporate rate down to 20% not the 15% that president trump

campaigned on, but a much more competitive corporate rate that pass-through rate capped at 25%. >> the biggest question given the fact, as you say, how will it be paid for is what will congress think of this we have now got more meat on the bones for this proposal from the executive branch and maybe some consul take with the big six. it's involved a few members of congress to get to this stage. frankly the hard work is still to come. the big question is can it get through congress if markets are rallying off the back of this, you have to look at what happened with healthcare and how hard it's been to get any consensus together, a law passed feels like there's more impetus behind this. >> definitely more input from the white house in terms of details. more buy-in from president trump's talking last night about specifics. and the other factor you have is the midterm elections coming people say the republicans need to show that they can govern and they can pass legislation.

some folks say it will be easier >> and that alabama result may be a negative in the short-term for the republican establishment but may sahake them into action. the hong kong index is down a coup couple percent for the week. the nikkei is the pick of a poor bunch, it's up a half percent today. european trade, up today slight gains for france and the uk germany up 0.4%. >> oil prices, let's show you what's happening there oil prices holding near recent highs, especially brent crude, below $550 $58 a barrel. seeing sop strength this morning. as for the dollar, it's at a one-month high against the euro. dollar strength has been the new trend. we'll see if that dynamic holds

the euro is flat, so is dollar/yen it's been a higher yield, stronger dollar. that helped out groups like the banks take a leadership position in the market. gold prices have been on the back foot. gold prices lower on the back of that stronger u.s. dollar. weaker again this morning. down 0.3 the house and senate intelligence committees invited google, facebook and twitter to appear at public hearings on russia's interference in the 2016 election. the committees are look at the spread of false news stories and propagan propaganda no word on whether the invitations have been accepted shares of the three are pretty much flat. mark zuckerberg hitting back at president trump's claim that the social media company is against him. remember that tweet from yesterday? zuckerberg posting on yesterday trump says facebook is against him. well, liberals say we helped trump. both sides are upset about the ideas and content they don't

like that's what running a flat form forral ide all ideas looks like. zuckerberg said he apologizes for the comments he made after the election as far as influencing the election at the time he called the idea crazy. now he has to turn over 3,000 advertisements that were bought by russian operatives alleged by during the he election >> this is the tip of the iceberg in terms of the apologies, and more regulation that may have to come. it has taken zuckerberg a long time to get to this position he has at least apologized, responding more, trying to be more transparent it's something they have to do more of moving forward >> and how do they prevent this going forward? >> regulators will step up to this as well broadcast media so heavily

regulated for this type of thing. >> someone has to take control over it. a combination of facebook and regulation weekly jobless claims and the final estimate on second quarter gdp at 8:30 a.m. eastern. gdp is expected to remain unchanged from the previous estimate of 3% esther george and fed vice chair stanley fischer are speaking today. conagra and vale resorts report before the open. kb homes out after the close. roku will make its public debut on the nasdaq today. landon dowdy has the details >> the video streaming devicemaker will start trading today after pricing its ipo last night. roku priced shares at $14 each that's the top end of the exp t expected range it has a market cap of 1$1.3 billion. roku which was founded in 2002

is best known for its video streaming devices to let users access netflix, amazon and youtube on their tvs roku generated nearly 2$200 million in revenue during the first half of this year. they will trade under the ticker symbol roku. roku founder and ceo anthony wood will be on "squawk box" this morning and rovio, the maker of angry birds video games will price later today. they are listing in finland, sweden and denmark back over to you >> thank you. softbank has overcome a major obstacle to its planned multibillion dollar investment in uber. the japanese firm agreed to block attempts to elevate travis kalanick back to the company's top ranks. benchmark which led the oust ner june wanted a guarantee in

writing that it would reject the reappointment of kalanick. so the main blocker stepping away. toshiba signing an $18 billion deal to sell its chip unit to a consortium led by bain capital. toshiba's u.s. joint partner western digital opposes the deal and still has litigation against it. shares of abbott labs rising this morning the fda approving the glucose monitoring device for adults it will allow millions to track blood sugar levels without having to prick their fingers. hain celestial making changes to its board hain will nominate six new director, three board members will not seek re-election. the changes could lead to a

potential sale of the company. according to this report there's going to be a board exploratory committee to look at alternative actions. unchanged in the premarket this is the last sort of stand-alone organic food player out there. what makes it different, it is a conglomerate of sorts. it's been formed by a number of acquisitions, still in the sweet spot of where consumers are going in terms of food >> japan display getting a nice pop today. the "wall street journal" reporting apple is expressing interesting in buying the advanced liquid crystal display force future models of the iphone thor industries posting better than expected results seeing stroke sang sales growthn the last quarter and lululemon saying retail is not dead. here's what he told jim cramer

last night >> we know people crave human connections, they may not go to the mall as much, but ultimately people don't want to be stuck to their phone and they crave human connections, that's what our communities do so well that's how we have such an incredibly productive store. >> shares of lululemon up in the premarket. interesting reason to say that -- behind the claim that retail is not dead i like human connections, but i like doing it at a bar or restaurant shopping it a nightmare. if i go shopping, i do it on my own. >> i think they're talking about his kind of stores, the sort of communities that they build around mindfulness >> that would annoy me more. >> i still like -- it's not about human connection i like going to stores to shop i like trying it on. i like seeing the new

merchandise. >> that's an odd reason he's giving >> it fits into the ethos of lululem lululemon. "playboy" enterprises announcing last night that hugh hef fner died at his home. >> reporter: hugh hefner was never frar far from female controversy or companionship >> reporter: what he sold in his issues of "playboy" magazine was sophisticated purism >> it's good for business, but also says a great deal about how unsophisticated we are as far as sex. >> reporter: hugh and his magazine were born in chicago. the first issue of "playboy"

sold out when it hit newsstands in 953 tha1953 subsequent issues had the same success launching an entertainment empire by the end of the decade, "playboy" was selling more than 1 million copies a month in the 1970s, hef moved west buying a home in los angeles that became known as the playboy mansion. the wild parties became notorious for their scantly clad guests and risque behavior in 1989 the ultimate bachelor married playmate of the year kimberly conrad. his second marriage after a failed one 30 years earlier. >> this is a unique celebration. >> the couple separated in 1998, but remained married until the youngest of their two sons turned 18. during a separation from conrad, hef rebounded by dating up to seven women at once. but eventually narrowed it down to three

in 2005 the group starred in a popular reality show, the girls next door. the hit show relaunched hef f e' lifestyle to a new aid yens and ma audience to others he was a window to the good life. no one can deny hef left a stamp on publishing and pop culture. >> it's nice to be remembered. >> the original playboy as the "new york times" calls him was 91 years olden't we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

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to the latest in the ongoing devastation in puerto rico following hurricane maria. the storm knocking out power throughout the island, gas, fuel, water, all scarce on the island now puerto rico is running low on cash. long lines have been forming at banks that are open or the few atms that have power many stores are unable to process credit or debit cards and insist on cash president trump said he was considering waiving the jones act which would allow them to speed the flow of relief supplies to puerto rico. the law require s goods shipped between ports to be carried by

u.s. flagged vessels shinzo abe dissolved the lower house, which will pave the way for the snap elections abe says he is seeking a public mandate and tougher diplomatic and defense policies big warning from south korea. the south korean government says it expects more provocations from north korea within the next month. those actions could include missile tests. south korea believes any action would come as north korea celebrates the anniversary of its founding of its communist party. a big win for nbc's hit show "this is us. and j.t. could be making a super bowl comeback. the top trending stories are still ahead. first here is the national weather forecast >> after 11 days, one of the

most devastating storms we've seen will be finished what a month of september we've had each and every day we've been tracking a hurricane in the atlantic basin lately it's been maria and lee irma we started with and we had jose and katia in the middle now we're waiting to see what happens in the caribbean we focus on the western caribbean. a tropical wave could develop near cuba. 40% chance of development. none of the long-range computers think it will be too significant. the forecast for today, rain in texas, also in south florida the northeast, mid-atlantic, enjoy the nice fall air mass as it moves in. that'sour ybusiness travel forecast more "worldwide exchange" when we come back

exchange." time for top trending stories. an outpouring of support hitting twitter following the death of "playboy" founder hugh hefner. jenny mccarthy tweeting thank you for being a revolutionary and changing so many peoples lives. especially mine. reality star kim kardashian saying i'm so honored to have been part of the playboy team. you will be greatly missed larry king writing hugh hefner was a giant in publishing, journalism, free speech and civil rights he was true original and my friend >> he was a good friend of my father's as well they used to hang out in the

'70s >> at the playboy mansion. >> before my father met my mother, of course. they knew each other quite well. >> it speaks to the fact that he was more than just a playboy also with the magazine, and had the big media empire larry king eluded to the free speech >> may he rest in peace. 91 years old he was. the season premiere of "this is us" drawing huge numbers. the show delivering the biggest ratings yet with 12.6 million total viewers. "this is us" saw huge gains in the crucial audience of 18 to 49-year-olds, up 36% from the series premiere last fall. i have not seen this yet it did well at the emmys this is the start of the second season >> yeah. >> season one went down one. katy perry releasing a feature length special on youtube red. it's behind-the-scenes look at

her four day witness worldwide tour live stream the special will premiere on youtube subscription service on october 4th. we'll see how many people tune in for these shows on youtube tv they always come up in the cord cutting battle there's so much competition now. >> so much competition, almost not cord cutting anymore you almost have to take on these other subscriptions. >> how many acts can you monitor? justin timberlake could be headed back to the super bowl. he's reportedly finalizing a deal to perform at the half time show jay-z was initially rumored to join timberlake on stage but recent reports suggest he will perform solo this is his first time back since the 2004 wardrobe malfunction with janet jackson >> i think he needs to have jay-z with him that's my two cents. they toured together

i saw them live together i think that would be good a good mix you have to up it for the super bowl world's biggest stage. >> people didn't think coldplay did last year. >> no. >> hard to beat beyonce. to the intersection of sports and politics. peyton man hag ruled out a run for the senate seat, filling the seat of bob corker in an interview, peyton says he is giving zero consideration of running. his political future has been a source of speculation after he was seen golfing with president trump and senator corker earlier this year. >> i wonder who won? >> always president trump. no >> sportsmen can be good at golf >> i think our president is good at golf. >> that's true still ahead here on

"worldwide exchange," a round up of the top stories including reaction to the new tax plan. and if you're looking for defi i devilish returns, look no further. why sin stocks are set to soar

wall street digests the gop's massive overlaul plhaul p. take on tech, congress

demands answers from facebook, twitter and alphabet about russia's role in the 2016 election we have the details. and saying sorry the interim equifax ceo penning a big apology letter in the "wall street journal" today. it's thursday, september 28, 2017 you're watching "worldwide exchange" on cnbc. good morning welcome back to "worldwide exchange" on cnbc. i'm sara eisen >> i'm wilfred frost good morning to you from me as well let's check in on the global market picture essentially flat in the premarket. coming off a day of -- a bit of red now across the board down 2 points for the dow. decent gains yesterday rebound led by the nasdaq, up over a percent the dow a quarter of a percent tech did well so did banks yields were rising and talk of tax reform which benefits the

sector more than some. there is the yield curve for you. yields rising globally not just in the u.s., certainly inspired by u.s. increases in the yield curve. 2.34%. nicely above 2.3% for the ten-year >> as for asia overnight the dollar has been firmer against the japanese yen thathelps the nikkei the export sector, that weaker yen. that closed higher by a half percent. saw losses for hong kong and shanghai south korea finished flat. as for europe this morning, the banks have been charging ahead lately as we've seen in the u.s. as we see higher yields everywhere that's good for bank stocks. seeing green this morning. the german dax higher by a third of a percent pretty spread out, gains across the continent this morning >> the bank point and the yields point is important, reflation trade globally over the last week, german ten-year back above 50 basis points this morning

the uk ten-year since september 7th has gone from below 1% to close to 1.4%. huge rise in yields particularly in the uk. >> the focus there is really on central banks, the fact that we are entering this new phase of somewhat normality, trying to get off the -- wean off the extraordinary stimulus, whether it's in europe, the uk especially >> uk a slightly different story. >> they have inflation >> the fall in the pound, and that's also a flat yield curve >> but in the u.s., yellen sending more of a hawkish message than before. the probability of december hikes going up they'll trim their balance sheet that hasn't spooked the market, but we are seeing higher rates could also be the fact that tax reform is becoming more of a reality. >> fractionally. getting slightly closer. running through the broader markets. oil prices, they've been steady

around $52 up a percent today to 52.6 dollar board for you, which was stronger yesterday in light of those rising u.s. yields, today it's not doing too much. a bit softer against the euro no real move against the yen and the pound. gold prices to round things off, down a quarter percent or so piecicale ical basically flat today. the gop released its massive overall plan for taxes eamon javers has the latest from washington maybe you can clear it up for us is there marginal improvement in terms of chances for tax reform or is this a meaningful step >> the fact you have the president out on the stump in a campaign style speech in indianapolis indicates there's more hope today for tax reform than earlier in the week they rolled out the framework of some of the details here we don't have all the details. look at the tax rate this is the corporate tax rate, 20% is what the president is

proposing. a 20% packs throuss through rat. on the individual side the president is breaking it down to three tax brackets as opposed to the current bunch of tax brackets also the possibility for a higher fourth tax bracket. i fatalked to senior administration officials yesterday, they said that would be for the 1%. that could be a higher percentage, maybe 37%, 38%, the people known as the 1 percent. keep an eye on that as a moving forward. the president took pains to call out the estate tax during his campaign-style speech in indianapolis yesterday here's what he said on that. >> we are finally ending the crushing, the horrible, the unfair estate tax or as it is often referred to the death tax. we are not going allow the death tax to steal away the american

dream from these great families. >> the president also said he hopes to have democrats on board. to that end he had joe donnelly, e democratic senator from indiana with him on the trip yesterday. donnelly rode on air force one, in the presidential limo to the venue. at stage the president said that he wanted to work with democrats, but he also teased donnelly a bit as well about what would happen if he didn't cooperate. >> if senator donnelly doesn't approve t because you know he's on the other side, we will come here and campaign against him like you wouldn't believe. >> sara, i talked to mnuchin yesterday about this idea of a 20% corporate tax rate the president had been pushing for a 15% rate mnuchin told me the president is fine landing on a 20% rate, but ultimately he wants it to stay at 20% the president himself yesterday said he's not negotiating over

that 20% corporate tax rate. now it moves to capitol hill >> eamon, clearly markets gained yesterday on the back of this news are they wrong to be gaining on this if healthcare is anything go by, that big negotiation on capitol hill could draw out for a couple months and get nowhere >> there's a possibility this doesn't happen but it's more likely today than earlier in the week. markets are right to think this is a form of progress. you should be careful not baking this into assumptions about what will happen next year particularly the details we ran through. one thing we don't know, and which will be the big negotiation here, at what income level do these tax brackets start to apply until you know, that you can't say how this would affect you personally or the country broadly or the national deficit which would be a problem for some conservatives we did see the house freedom caucus come out saying they

support this plan broadly and will push for it so they may not have the opposition on the right. there's the opportunity to get a few democrats that they didn't have on obama care this should be a bit easier than obamacare, but we'll see washington is a complicated place. >> even if it passes in piece meal, no question, corporations are priority here. lowering that corporate tax rate. >> big win for them. let's bring in ben white from politico, cnbc contributor. good morning >> good morning. >> takeaways from the tax plan corporations are winners who are the losers >> it's hard to say, as eamon pointed out to know who loses under this thing given we don't have the income brackets where it kicks in. on the individual side, difficult. losers on the corporate side, anybody who funds with a lot of debt they'll reduce the interest deductions for corporate debt. possibly home builders and

realt realtors, so they keep the interest deduction, but increase it so some home builders will come out against this >> key question for me, fiscal conservatives within the republican party, are they shaken into action to ignore core principles, by things like the alabama result >> are there fiscal conservatives left >> the how freedom caucus is supposed to be fiscal conservatives, but they're on board now. there will be some efforts to get pay-fors in here, slightly higher corporate rate at the end of the day to make it less costly republicans are so desperate to have something done. something accomplished president trump is also desperate to get something done after the obamacare failure, you will see most conservatives get on board with this and say we need to slash the corporate tax rate, do some middle class tax relief and say we've done something.

if it adds to the debt and deficit over the long-term, we'll deal with that we'll hope for better growth >> already the democrat liberal pushback is that this is only a tax cut for the wealthiest of americans. yes, the estate tax is at more than $11 million per couple, bu what about the rest of it? if they scrap tate and local income tax deduction,the rates go up in new york, new jersey, connecticut, california, all high-income places >> they're making a strong effort to blunt those attacks, that this is purely a tax cut for the rich this is a higher rate on the 1% that they left to congress that's one piece of it increasing standard deductions is part of it. hopefully giving a net tax cut to most middle income and lower income earners, though they bump the bottom bracket up to 12%, the hope is with deduction increases that's a tax cut for them you will hear democrats say we don't need to cut taxes for

corporations, reduce the estate tax or ail tulternative minimumx >> can this be pushed through this year? >> it can be they'll get a bill on the floor of the house soon from the house weighs and means committee thag mark th they'll mark that up because there's pressure to have an accomplishment by the end of the year it's tough not a lot of time. if it doesn't get done this year, has to be early next year. >> the other fill in the blank is the growth assumption here. probably going for 3%. >> i imagine so. >> that realistic? >> they don't want to go above 3% and seem they are being way too optimistic about how this could be -- >> maybe 3% is optimistic >> it could be we haven't hit that historically quarter to quarter, we hit that now, but it's hard to do annually i think they assume if you do this repatriation that you will

get growth impacts and they'll bake that in >> thank you very much great to see you ben white of politico. we'll hear much more about the plan from gary cohn and also house speaker paul ryan, both live on "squawk box" this morning. the senate intelligence committee calling on facebook, twitter and alphabet to testify at a hearing on russia's role in the 2016 the hearing is november 1st. alphabet and facebook have not said if they will attend house intelligence committee will hold its own hearing next month on tech's role in the 2016 election unclear which companies will be summoned for that one. shares of those three companies mentioned essentially flat in the premarket. facebook getting a half percent jump it sold off sharply earlier this week. mark zuckerberg hitting back at president trump after the president called the social media company anti-trump in a

tweet yesterday. trump says facebook is against him. liberals say we helped trump both sides are upset about ideas and content they don't like. that's what running a platform for all ideas looks like coming up a big apology from the interim equifax ceo. and later t pays to be bad why sin stocks are set tsoo ar we'll explain when "worldwide exchange" comes back

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welcome back to "worldwide exchange." i'm sara eisen with wilfred frost. him f time for some must-reads my pick in the "wall street journal. an apology from the interim ceo from equifax he writes by january 31st, equifax will offer a new service allowing all consumers the option on controlling access to their personal credit data the service we're developing will let consumers easily lock and unlock access to their equifax credit files you can do this at will. it will be reliable, safe and simple most significantly the service will be offered free for life. i picked the pledge part to show

what they're working on. he went through the apology not just for the hack but how it was handled. the response the long lines the fact people can't get through on the phone there's wasn't sufficient information on the website all the problems we've been talking about. it's late but coming ahead of these key senate hearings and house hearings >> it's late and it still feels like they haven't satisfied that kind of desire amongst the public for a big apology but they have done more, for example, a story i covered than wells fargo did in terms of trying to get out ahead of the senate hearing we'll see if that placates -- >> the ceo retiring was a big step >> but retiring. it drives me mad that that word is used. retirement is based around age, it's planned it doesn't come around mistakes. >> firing. >> i've had that debate. >> my pick is in the financial times. are trump tax cut would reshape

u.s. stock markets going through various banking notes to explain what a tax cut will do to the stock market. according to david kostin, every 1% fall in the tax rate adds a dollar to expected earnings per share for the s&p 500, which stands at about $130 for next year and has been drawn up on the assumption of no tax cut that implies the tax cut f passed by the end of the year would drive a one-off increase of 11.5% in expected earnings for next year. that's big deal. he runs through various notes in terms of which sektde esectors t benefits technology and healthcare pay low rates. >> one time, right >> one time in terms of next year, but clearly benefits some sectors more banks were up yesterday. small caps up more than perhaps some other names he breaks it down for us in the

ft. up next, betting on the bad. gy now could be the best time too into the sin stocks. we're back in a couple minutes ♪ we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high,

your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley. ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ well i'm gone now on the next page you'll swhat?breakdown of costs. it's just.... we were going to ask about it but we weren't sure when. so thanks. being upfront is how edward jones makes sense of investing.

welcome back we're approaching the top of the hour the team is getting ready for "squawk box. andrew has a look at what's coming up. a couple of unimportant interviews >> relatively unimportant. we'll be talking about all sorts of stuff probably taxes we have two people that i should probably mention as a matter of course gary cohn is going to be with us to talk taxes. we'll have him on the show he will be with us in the 8:00 hour you do not want to miss this interview. one of the very first to talk ever about this new tax plan which has been revealed just yesterday. and then paul ryan will join us. you know, sort of an unimportant figure in this whole thing it's a big day

gary cohn, paul ryan, i'm literally physically dropping the mike but i have one of those little mikes, so i can't go it dramatically i'll do it like this. >> i like that very much i love the tease a big "squawk box" to come october is just around the corner, landon dowdy has a look at stocks that could be poised to take off in the fourth quarter. what are you looking at? >> how do i follow that mike drop here's what's hot. we hear on the east coast it's still feeling like summer, with the fourth quarter starting next week, it's not too early to think about how to insulate your portfolio for fall looking back since 2010, sin stocks like alcohol, cigarettes, gaming stocks have taken off in q4 so which names cook? here are five sin stocks that sizzle at the end of the year. first off, boston beer company posting average returns of 20% with consumers buying more alcohol around the holidays. mgm resorts posting returns of

13%. analysts crediting china's golden week holiday in october with driving strong traffic to macau, helping to boost gaining stocks corona maker constellation brands, up 12% a reynolds american tacking on returns of 8% average. the general view is portfolios managers want to move into less risky assets cigarette makers are often coveted by dividend investors. as we head into the final quarter, these vice stocks can keep you warm all winter long. >> i like that very much >> the vice? >> the vice? >> you like the vice >> or the stocks >> all of it. >> you can't go wrong. alcohol, holidays t goes together. >> important as well, off the back of your research there for me to take in my own opinion

so i will go to vegas next weekend. >> check it out. let me know. i want a full report moving on, checking out global yields. rising significantly alongside u.s. yields. we did see the ten-year in germany go above 50 basis points it's back above again. 50 basis points. of course the ten-year in the u.s., which is second down there, back above 2.3. 2.34% this morning let's bring in michael gaden from barclays. this rise in yields has helped stocks what's driving it above all else was it that speech by janet yellen that has had a hawkish effect a few days late >> i think you have a two-fold effect from yellen's speech and the digestion of what the fed said last week and the tax reform package coming out of the end of august, markets thought with the failure

of the healthcare reform and the dysfunction in washington that the odds of a tax plan were low. those are come up. the combination of those have pushed yields higher >> if the president gets everything he wants that he laid out based on what we know so far from this tax plan, can he get to 3% annual growth as he's targeting. >> i don't think so. i feel strongly about that i do think the reform components to the extent that they are the majority of the bill can help the supply side a bit. but getting things up to 3%, potential growth now, we all estimate at 1.5 to 1.7 so you're talking about a doubling of potential growth that's very difficult. you're talking about needing to get productivity back to where we were in the 1990s for a sustained period of time that's a low probability i think it's much more skewed to the demand side and tax cuts which are more to a 4 to 5%% le

has the u.s. is seeing i think most views are it comes late q4, q1, so a 2018 story in effect by the end of 2018 the world looks a little more challenging for the u.s., but policy will be in the area of neutral the household savings rate has been pulled lower. there's less room for households to adjust. central bank balance sheets globally, if you look at balance sheets as a share of gdp, they will begin to decline in 2019. so there will be headwinds that the economy could face >> what about the argument that the one-time repatriation tax holiday brings back trillions of dollars sitting overseas and in foreign cash profits from

corporations one, is that true? will that come back? two, is it going to give the economy a schohot in the arm >> our view on that is most of it is already in dollar-based assets so you're talking about a rebooking of where that account is located i think it's extremely important in helping to pay for tax cut packages to make it look deficit neutral on paper and qualify for budget reconciliation. we don't expect wave or unleashing of capital expenditures as a result the data is fairly clear changes in the code. the marginal rate. the investment tax credit. depreciational allowance all of that matters, but it's a second or third or thor effect what matters is where is the growth in economic activity and final demand as the cycle gets long, it's just harder to generate. >> michael, thank you very much. michael gapen of park barclays

>> all eyes on "squawk box's" big interviews >> gary cohn and paul ryan coming up. that's is for "worldwide exchange."

markets cheering the gop's tax blueint. we'll tell you what the reform could mean for companies and investors. that will be a lot to talk about. a video streaming player set to ipo here at the nasdaq. this morning we have the details of roku's public offering, and a first on cnbc interview with the ceo. plus pop culture icon and playboy founder hugh hefner has died we'll talk about his life and legacy it's thursday, september 28, 2017, "squawk box" begins right now. ♪

live from new york where business never sleeps this is "squawk box. good morning, well cocome t "squawk box. a look at u.s. equity futures at this hour. i want to call it unch, we're marginally in the red. we open off about a point with the s&p, the dow off about a point. and the nasdaq off about two the hang seng and shanghai both in the read. let's tell you what's going on in europe. looking at green arrows across the board. marginal, marginal finally talking about crude and really where that's been landing. we're over $52