the dow and s&p riding six-week winning streaks. u.s. equity futures point to more green at the open. global politics in europe. spain takes steps to seize control of catalonia's government japan's prime minister is promising changes to the constitution after a big win live reports from both regions straight ahead. plus a cnbc exclusive. inside look at saudi aramco including a rare look with the company's ceo as the oil giant gets ready to go public. monday, october 23rd, 2017 "worldwide exchange" begins

right now. ♪ ♪ good morning very warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. >> i'm courtney ragan sitting in for sara eisen. >> great to be here with you let's have a look on the markets this morning a good week for the dow and particularly on friday we saw about 0.7 -- 0.75% of gains for the dow. we're about 2% of gains for the week as a whole. the s&p was up more at .9% as a week the nasdaq up half a percent financials were the best performing sector. up 2%. a lot of that coming on friday as yields rose this morning we're caught by 14 points on the dow. if we look at the ten year treasury note we can see that the yield closed close to the 2.4% that's where we remain this

morning, 2.39%. spain's prime minister is seeking new powers to control the region until new elections can be called. meantime, some catalan lawmakers are calling on the region's president to declare independence from spain this week still a lot going on and undecided in that region if you take a look at spain's ibex index. we are down just about half a percent. >> worth pointing out last week only lost 0.3% for the month as a whole. down 1.5%. >> not having too much of an effect the wider region certainly not u.s. regions >> in northern italy >> the referendums, the once openly successionist called the votes themselves and the votes want to negotiate better financials

this is a call for awe tonnie, not separation the wider markets mostly for the cool markets and the u.k the populist billionaire going around 12% of the votes. still some issues popping around in europe. the spanish which is the biggest not affecting markets. in japan prime minister shinzo abe won a key parliamentary ruling they secured a 2/3 super majority in the house. that was widely expected abe has indicated he will push forward with an attempt to revise japan's constitution. you take a look at how shares traded overnight in asia things actually were mostly higher and the nikkei was higher by more than 1% on the news out of japan which is driving really the news in that region. the broader markets, oil

prices were up 0.4% last week. they're up 1/3 of a percent or at least wti is at 52. the dollar board did get a nice gain mainly on friday. up 0.7%. a lot of that came as yields ticked up after that budget passing vote in the senate on thursday night this morning we've got a little bit of dollar strength against the yen. the yen softening in light of abe's victory hoping for further economic reforms we've got a similar move, about 1/3 of a percent gold prices to round things off down nearly 2% last week and this morning up at 1276. we've been talking about bitcoin. the crypto currency hitting record highs there is another split in bitcoin coming this is known as a fork. you can see prices here for bitcoin against the dollar holders of bitcoin will get some

bitcoin gold when it's issued. they're getting a boost. china could reverse its ban on bitcoin. seems everybody has an opinion whether it should be regulated, whether it's a currency, whether it's not hard to keep track. >> hard to keep track. easy to keep track of the price. pushing higher in the short term people are doing well switching to this week's wall street agenda, it's full of both economic and earnings reports. among the highlights, durable goods orders and new home sales. jobless claims and pending home sales on thursday. friday, first record on 3rd quarter gdp. busiest week for earnings season 170 companies in the s&p will report results eli lily, gm, boeing, coca-cola, amazon, chevron and exxon all to come this week. >> going to be quite a big week. now move on to political news because we know there's

going to be a lot of this. president trump is calling on the house to adopt the senate's budget and push forward with tax reform trump made the comments on a house gop conference call yesterday. >> house republicans are reportedly considering a sharp cut in 401 k contribution limits this will reduce the amount of income american workers can save in tax deferred retirement accounts they could cap the annual amount workers could set aside to as low as 2,400 for 401 accounts. the current limit is $18,000 a year for workers under 50 and 24,000 for those over 50 >> this is a huge, huge deal 401 k is a major retirement savings vehicle that americans use. a lot of it is funded from your employer uconn tribute some they contribute some from 18,000 to 2400. >> big hit for the middle class. >> huge. >> right so in other washington news, the senate majority leader mitch

mcconnell said he'd be willing to bring a health care deal to the floor if he was confident president trump would sign it into law comments came after senators lamar alexander and patty murray introduced bipartisan legislation last week to stabilize the obama care markets. the u.s. government issuing a rare warning that hackers are targeting energy and industrial firms. the department of homeland security and fbi say nuclear energy, aviation, water, critical manufacturing industries have all been targeted they say they have been successful in compromising some networks but have not specified which ones >> always some kind of hack warning. now on to corporate news landon dowdy joins us with multiple headlines on tesla. the automaker again bringing us news. >> hey, courtney good morning first reports say that tesla has struck a deal with shanghai to build a manufacturing plant in china. the company reaffirming sunday it is in talks with the shanghai

government about setting up a factory in the region. it expects a plan by the end of the year but declined to comment if the deal has been reached an arrangement could help the electric car maker slash production costs and gain traction in the fast growing market tesla would have to pay a 25% import tariff on cars built in a free trade zone. tesla has increased the buying capacity to $1.1 billion the move comes as tesla spends heavily to fix production bottlenecks of its new model 3 some analysts say it's harder to manufacture than tesla anticipated. it seeks to raise $1.5 billion as a source of cash to help ramp up production of the new demand. shares of tesla up 7% in the past three months and up 2% in early trading. >> thank you very much for that. in other corporate news this morning, a new report suggests

spotify could be val utd at $20 billion when it goes public. they say the streaming service could be eventually worth $100 billion. they've advised spotify for years on fundraising says the company's growth will be driven by paid subscribers, numbers growing and better deals with news labels they have hit 60 million paid users. online lender sofi held a sale earlier sofi began talks after a foreign bank made a $6 billion indicatetive offer the company raised $500 million in funding in february that valued it more at 4.3. last month the founder and co-founder resigned.

still to come on "worldwide exchange", a political crisis in catalonia. this could be a major week for them live report from barcelona as we head to break, here's a look at how europe is trading at sive hour which is mainly poti, albeit not for spain back in a couple of minutes. it's not just a donation.

it's a warm blanket. it's a bottle of clean water. it's a roof and a bed. it's knowing someone cares.

it's feeling safe. it's a today that's better than yesterday. every dollar you can spare helps so much more than you can imagine. please donate now to help people affected by hurricane harvey. your help is urgently needed. welcome back to "worldwide exchange." thank you for joining us

spain is dealing with the biggest crisis in decades. willem marx joins us >> reporter: thanks, courtney. the senate liked to vote this week they include the takeover of the local police force, the firing of the catalan cabinet the takeover of the local state broadcast. the catalan broadcast tv 3 as well as the maintenance of the economy ministers control of the region's finance ministers catalan government fighting back and saying they're not intervening and they will only take orders from the catalan people the real big question is what happens here on the ground in barcelona across the region if madrid tries to enforce its will and people decide not to accept it will civil servants, police officers not listen to what they're told to do

>> over all, willem, when we look at the markets it's muted in spanish governments and less reaction a krcross the region. >> we heard from s&p over the weekend. they said they're not sure what this will mean for the spanish economy and spanish markets, spanish corporate bonds. they are saying it's something to watch closely clearly we're seeing 1100 firms with headquarters here in catalonia. that was up until friday that's going to have a massive impact. >> willem, thank you very much for that willem marks for us in barcelona. switching focus to asia. japanese prime minister shinzo abe winning a resounding victory and cnbc's akika fujita joins

us >> good morning. we certainly saw investors cheering that big win with the nikkei extending its gains the 15th straight day. the yen hitting a three-month low against the dollar certainly investors welcoming the stability and expecting some of the physical aia fiscal and e policy now his party and the ruling coalition did secure the 2/3 coalition party. this is part of the endorsement of abe's policies. when you consider how low the voter turnout was, among the lowest in post war history when you look at the poles, more than half of the japanese government saying you don't expect to see prime minister abe. they couldn't get up off the ground now the prime minister did frame this election as a referendum as an election policy

today he vowed to press on with pressure on pyongyang along with the u.s. saying that he had, in fact, had a phone call with president trump to talk about his upcoming visit here to the region in november the prime minister talking about the need to push forward with economic reforms specifically talking about a 2 trillion yen package that he said he would push forward putting some of that money towards high school education as well as child care. he also needs to balance the budget debt is more than 250% of gdp while looking to raise the consumption tax by 2% by 2019. certainly a lot on his plate the focus really moving forward for the prime minister will be constitutional reform. japan is looking to change what's called article 9 which essentially says the japanese cannot maintain an armed forces to prevent any kind of war the prime minister has called

for a change to that, but he will still even with the support in parliament need to put that to a public rerch ren dumb the public very divided on that. >> thank you very much, akiko. that's big news out of the region. still to come, a discussion with the oil giant saudi aramco. here's today's national weather forecast with nbc's bill cairns. >> good morning to you, willem and courtney big rainstorm heading to the east nashville has heavier rain and seeing storms popping up in georgia and along the florida west coast here's how we're going to time this out go through 10:00 a.m., from michigan, indiana, kentucky. this afternoon could get some strong thunderstorms out of this in areas like the carolinas and a soaking rain in michigan a lot of these areas have had a dry fall welcomed rainfall in many cases.

tuesday, heavy rain from new york city and there's the slight risk of storms careful in the carolinas this evening. more "worldwide exchange" when we come back i love you, couch.

you give us comfort. and we give you bare feet, backsweat, and gordo's... everything. i love you, but sometimes you stink. soft surfaces trap odors. febreze fabric refresher cleans them away for good.

because the things you love the most can stink. and plug in febreze to keep your whole room fresh for up to 45 days. breathe happy with febreze. what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley welcome back to "worldwide exchange." health care on the agenda again. nbc's tracie potts joins us live from capitol hill. good morning, tracie. >> wilfred and courtney, good

morning. tax reform is something they wanted to get done by the end of the year now the president is saying he wants a bill done on his desk by thanksgiving who will pay what has a lot of fill in the blanks left. the president says not getting health care done can be encouragement for getting this done step one for the house to pass the same budget that we saw the senate pass last week. it leaves $1.5 trillion open for a possible tax cut the president says the biggest in history the question is will those tax cuts go mostly to businesses the president wants to lower the corporate tax rate or will a big chunk of it go to the middle class and families the numbers here will tell the story. so while the president is pushing for quick action on tax reform, we may also see some action on health care as well as lawmakers try to put together what senators and alexander

murray call the compromise to stabilize the markets going into 2018 in fact, we've already seen a number of companies bumping up their premiums in anticipation of the president cutting the subsidies that now his budget director says they may be willing to restore if they can get something in exchange. so some budgeting and negotiating going on with health care and of course now with tax reform, which is the big agenda item and the big priority for both the whies house and republicans in charge. >> tracie potts for us live in washington. andrew ross sorkin this week is in saudi arabia he sat down with the ceo of oil giant saudi aramco at their hq they spoke about the widely anticipated ipo and how aramco, the crown jewel of the saudi economy, plays a role to transform the economy by 2030. >> there's been lots of speculation about whether you're in new york, london, better

investors in new york or regulations or london. how do you think about it? what's the framework with which you're thinking about this process? >> you know, there is a lot of rumors, you are absolutely right, and speculation people need to appreciate the size of saudi aramco you've only seen yesterday and today only a small piece of saudi aramco saudi aramco in terms of size is 12 million in terms of refining capacity, 5 million gallons. you're talking about huge capacity in terms of size and facilities we have international operation of many countries from the u.s. to china to japan. so aramco in terms of size and capacity is huge we did a lot of analysis of all of these markets we have always said we will be

listing in 2018, to be more specific, in the second half of 2018 however, i think journalists, they are expecting more and more information. we are governed about certain rules when talking about the ipo. what we have said from the beginning that we will be listing in 2018 the ipo is on track. the listing will be discussed and shared in due course. >> the other thing that's speculated about is whether it comes nnd in and buys a piece of the chinese. are you talking about this >> saudi aramco is not talking to chinese and others. saudi aramco, as i say, we did prepare our folks and it's not

necessary for listing. we evaluated, analyzed the different venues, stock exchange in different countries there were so many of them all of that analysis is being reviewed in detail to make a decision at a certain stage. we're not going to be positioned, you know, by a journalist saying this needs to be talked about. >> but if a stake was sold to another sovereign like china, would that change the outcome of the plan to pursue an ipo? there's been speculation, if one piece was sold perhaps that could delay or put it off for many years. >> you are speculating now >> yes >> as i say, things are on track and progressing as expected. >> things on track the ceo contrasting some stories we've heard in the last couple of weeks there might be delays the ceo telling andrew that his

company is at the heart of the crown prince's 2030 plan to wean their economy off of oil. much more from andrew on saudi aramco in the next hour. then at 7:00 eastern time don't miss a live interview with saudi prince alwaleed. geopolitical hot spots and very much more. some outstanding coverage to come throughout the day on cnbc from andrew in saudi arabia. till ahead on wor"worldwide exchang exchange", today's top corporate stories plus google is paying big bucks to anyone who can hack their apps stay tuned, you're watching "worldwide exchange" on cnbc the same way you shop for flights online. i didn't realize at lendingtree you can save money on almost any sort of loan. i consolidated my credit card debt with a personal loan. i found a new credit card with 0% interest for 15 months.

you just shop, compare, and save. and it's all free. go to lendingtree right now and start saving. hi, i'm the internet! you knoarmless bowling.lt? ahhhhhhhh! you know what's easy? building your website with godaddy. get your domain today and get a free trial of gocentral. build a better website in under an hour.

a new week a new round of possible records. behind the wheel, tesla has reportedly reached a deal to set up its own manufacturing facility in china. a live report from the country coming up. plus, j.t. is heading back to the super bowl. the singer's rumored return is official and it's making waves on the internet. it's monday, october 23rd and "worldwide exchange" continues ♪ ♪ good morning and a very warm welcome to "worldwide exchange" on cnbc i'm wilfred frost. >> i'm courtney ragan sitting in for sara eisen thanks for joining us.

"worldwide exchange. it is just about 5:30 on the east coast. >> it is. >> let's get a check on the global markets futures pointing to a slightly higher open. a rather strong week for the u.s. markets i believe closing out six straight days for the dow. six straight sessions for the s&p all closing at record highs. right now futures indicated a little bit higher for the dow jones, the s&p as well as the nasdaq take a look at the ten year. not very much where we ended on friday just a hair under 2.4 at 2.388% for the ten year >> the back story again following prime minister abe's resounding results that he can continue with economic reforms boosting the market there in japan up 1%. it was up nicely last week as well the nikkei has been on a good charge at a 20 year high or so this morning

european markets, big markets are higher in terms of germany, france and u.k spain losing half a percent in light of ongoing negative headlines around catalonia month to date it's down only 2%. those declines in perspective. >> let's take a look at the broader markets. wti and brent crude, it looks like wti is just unchanged brent crude is only slightly lower. we have a number of sort of crosscurrents going on right now in the market. although most of them are fairly bullish. the price of wti including some fears of supply and the kurdish region of iraq there are signs of a tightening market as well as all of those are pretty bullish for the price of oil the dollar, the biggest move happening between the dollar and the yen. hitting a high on the back of

the election the euro is weaker against the dollar the pound is slightly weaker against the dollar. in corporate news, tesla has reportedly reached a deal to set up its own manufacturing facility in china. eunice eun joins us with the details. eunice >> reporter: thanks so much, wilfred. we spoke with tesla and china, and they would not confirm the report they're working with them for a plant and they will clearly define their plans "the wall street journal" article about the possible plant in shanghai was the big talker among car analysts here. they were latching on to a couple of points one, that tesla would have a wholly owned factory because everybody else here, all other foreign car makers, have to enter a j.v. with a chinese partner. secondly, the other point was that this factory would be built in a shanghai free trade zone. that raised a lot of questions

people here are wondering does that mean they will only be able to export or will they be able to find a way into the chinese market if they did, would they have to pay the 25% tariff that everybody else has to pay. for tesla, they have already been making big money here, $1 billion in revenue in china for last year. it's clearly an important market for them they have a lot of benefits if this deal goes through they say they would be able to control their i.p. very important they said they would be able to cut down on their pro diks, shipping, labeling costs those are benefits for tesla beijing would be seen as a leader in ev what a better way 245than to hae the most advanced ev product on china soil

because they want to develop this ev, tesla wants to support the supply chain here of chinese companies. the chinese -- the chinese government wants to sell more than 7 million of these ev cars a year eventually, and also this would also come at no cost or very little cost because of the fact that we still don't know, it's not clear just how much marketaccess would be granted to tesla we don't know if they'd be able to freely sell the cars into the market. >> eunice, thank you for the report live. cisco is reportedly close to a deal to buy telecon software maker broadsoft for 2 billion. paul latch is reportedly near an all stock deal to buy deltic timber they have a combined market cap

at 3.3 billion mitsubishi is going to cut wing production for the 747 dreamliner no real movements by boeing this morning. philips third quarter profit fell 15% in sales but they are backing its guidance philips ceo says the company is on track for growth of 4.6%. novartis said they have break through status for the treatment of mel la home in ma it showed the patient survival was 58% versus 39% shares higher by half a percent. target is starting up. they say most gifts have been priced under 15 bucks. they will offer promotional

dealsfor the last two months o the year. in other corporate news apple's coo will meet with fox koh foxcon they are looking to deal with the bottleneck of the iphone 10. shares of apple fractionally higher toshiba is projecting a net loss of $1 billion due to the taxes from the sale of the memory chip. it doesn't include expected gains from the $17 billion sale as it's yet to be approved by regulators it's down a percent in japanese trade today. united airlines is reportedly in talks with jpmorgajpmorgan wall street journal notes analysts say the move could impact the bank's revenue. they have been issuing united credit cards for some 30 years now. now to news out of the media and entertainment industry another major name in hollywood

is being accused of sexual harassment 38 women have detailed alleged problems with writer and director james torbac. he denies the allegations. he drikted "the pickup artist" and mike tyson documentary he received an oscar nomination for writing "mugsy." former u.s. presidents were calling for unity and donations at a massive hurricane benefit conference they made an appearance at the deep from the heart conference in texas over the weekend. barack obama, george w. bush, bill clinton, george h.w. bush and jimmy carter were there to raise money for victims of natural disasters. >> so amazing to see them together. >> particularly bush sr. who's obviously been in less good health than perhaps some of the others great to see him out there as

well. always say this name wrong, d.j.khaled throwing his son an over the top first birthday party the pictures ever going viral of this birthday party. the birthday bash hosted by shawn diddy holmes that looks like a fun kid birthday party. >> it does doesn't it. >> i'd like to be there. that's a good time >> lucky little boy. >> indeed. google offering big bucks to some expert hackers. the company along with former platform hacker 1 launching the google security play program it promises $1,000 to anyone who can find security flaws. 13 apps r contenders.

the rumors are true, justin timberlake being formally announced as the super bowl halftime performer taking to twitter with a video confirming the news alongside with "tonight show's" jimmy fallon the video's caption says, i do have the time -- half the time, #pepsihalftime this will be the first super bowl appearance since the infamous performance with janet jackson. >> that was back in 2004 >> yeah. >> remember watching that? >> i didn't watch it live. >> you didn't? >> oh, i guess -- >> but, you know. >> yeah, we watched it live. it was quite shocking to say the least. now to sports and the rematch of the super bowl last night. the new england patriots played host to the atlantic falcons they didn't need a 25 point comeback tom brady threw for two touchdowns the pats beat the falcons 23-7 to improve their record to 5-2. still to come on "worldwide

exchange", confused about the budget interest's a must read about that opinion pieces straight ahead. let's check in on european ckn coleinesly higher. ba ia up mut 50s right in the heart of the financial crisis, and saw his portfolio drop by double digits. it really scared him out of the markets. his advisor ran the numbers and showed that he wouldn't be able to retire until he was 68. the client realized, "i need to get back into the markets- i need to get back on track with my plan." the financial advisor was able to work with this client. he's now on track to retire when he's 65. having someone coach you through it is really the value of a financial advisor. you won't see these folks they have businesses to run. they have passions to pursue. how do they avoid trips to the post office? stamps.com mail letters, ship packages, all the services of the post office right on your computer.

get a 4 week trial, plus $100 in extras including postage and a digital scale. go to stamps.com/tv and never go to the post office again. your privacy makes you myt number 1 place to go number 2. i love you, but sometimes you stink. febreze air effects doesn't just mask, it cleans away odors.

because the things you love the most can stink. and try febreze small spaces to clean away odors for up to 30 days. breathe happy with febreze. your bbut as you get older,ing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. welcome back to "worldwide exchange." markets pointing higher once again. we had a decent session on friday that led to almost 2% of gains for the week as a whole.

the dow less gains for the s&p the nasdaq was up half a percent. we are pointing high 20 points for the dow. the dollar board, we're seeing the dollar move higher against the yen following the japanese election result. 1/3 of a percent and all oil prices up about half a percent last week and wti slipping a little bit it was up 1/3 of a percent it's just negative 51.8. time now for our must reads. stories catching our attention my pick from the "financial times" the nondisappearing phillips curve why it matters it's always geeky but it's particularly geeky this week all sorts of charts and various sort of equations, but his conclusion is ultimately that the phillips curve is not defunct, it's just hiding temporarily. if you want a sort of economics

reminder but up to speed with modern events, it's a good one to have a look at. >> sort of looks like textbook pages. >> it does it's long. there's different graphs sunday morning read. >> my pick is in "the washington post." robert sum muamuelsson makes fie main points. he explains elderly programs make up half of the federal budget he argues maybe we need to rethink the retirement system by writing, quote, more baby boomers will retire, their health care costs will remain stubbornly positive. other programs are increasingly threatened he sort of makes the argument can't have it all. you have to make cuts somewhere. it's simply laying out the main points of why a federal budget is important and what they have to weigh it against.

>> very nice refresher, indeed. big name tech firms have spent millions of dollars lobbying congress during the third quarter. the government disclosure showed google spent $4.2 million. twitter spent 120,000. tech companies have come under increasing regulatory scrutiny lawyers for the three tech titans are scheduled to testify before congress on november 1st. in geopolitical news, jim mattis is kicking off a week long visit to asia he arrived in the philippines today. secretary mattis said he plans to talk about the growing threat from north korea with asian allies his trip includes stops in thailand and south korea. more than 170 s&p 500 companies are slated to report so we'll tell you what you need to watch for in the week ahead. then at 7:00 a.m. eastern don't miss a live interview with

prince alwaleed. always a rl eainteresting interview. stay tuned, you're watching "worldwide exchange. we'll be right back. ♪ 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 ♪ can i kick it? ♪ to all the people who can quest like a tribe does... ♪

welcome back to wor"worldwie exchang exchange". steve is getting ready for "squawk box. joe joins us from new york with a look at what's coming up which involves presence in riyadh today. >> andrew is in riyadh that's right that's a long flight i've been four, five times i think he's had a couple of -- i think he's had time to maybe get his rest it's like -- you get some jet lag i think, too it should be interesting first thing we're going to do, i think he's taped some stuff with the ceo of aramco. for an hour we have the prince on prince alwaleed bin talal. he has a portfolio i don't know how we can ever amass that

they'll have to sell half shares or tenth shares. it's never going to happen for us. >> that's true we can still discuss how it happened for him. >> yes, we can discuss that. then senator heitkamp will be in studio with us for an hour she's on the banking committee she's also kind of an interesting hybrid she's a democrat but she's from north dakota which as you know was trump country. so she's one that republicans always think they might be able to swing on some of these issues if you give her -- for example, on keystone, something like that we'll see what she has to say about tax reform and some of these other issues health care, and which way to go she's funny. and also she speaks like she's in fargo and she gets tired of me brings it up, but she's got -- real good -- >> is it possible that someone

can get tired of you bringing up their accent that surprises you. >> did you see i was laughing at the top when you said this show was coming up and it was like, i think he said it -- i was like, what >> i can't believe anyone can get tired of that joke it never gets old. >> courtney looked over and said, what's coming? >> our ohio accents, joe, it's hard to make out wilfred but we do the best we can >> well, there we go. >> doesn't sound very sophisticated. >> that is what's coming up in ten minutes' time. joe, we look forward to it as ever >> thank you, joe. >> thanks. all right. so now on to this week's wall street agenda because it is full of both eke no, ma'am 34ik and earnings reports among the highlights on wednesday we'll get durable goods orders and new home sales and thursday jobless claims and pending home sales friday, third quarter gdp and consumer sentiment this is the busiest week with more than 170 companies in the

s&p 500 reporting results, the list includes 3m, gm, boeing, mcdonald's, coca-cola, alphabet, amazon, exo on, chevron. >> reuters reports that s&p 500 companies are expected to increase earnings by 4.23% this will be the slowest growth. if you exclude the hurricane hit, earnings are supposed to be up 7%. the insurers weren't the only companies affected more than half of the s&p 500 names that have reported so far have said the storms tharmd the -- harmed their businesses to some degree. >> janet yellen said this has been an unexplainable surprise yellen made the comments at an event in washington late friday. she didn't address specific changes to monetary policy or spec cue blags whether president

trump will reappoint her as fed chair. she had several meetings at the white house last week. let's bring in tobias lefkovich. >> good morning. >> the jump on friday was clearly in part of the budget getting passed in the senate, still to get passed in the house. the question really, does that mean tax reform is more or less likely what's your take >> i would kind of scale back reform tax cuts are more likely. probably not as grandiose as we're hearing today. investors may be a little bit out on this one. probably won't happen until the first quarter. the white house has indicated that at this point that has been our view all along. even the 20% corporate tax rate is probably unlikely at this point. we're modeling 25% and have been for the past few months. the key issue is where the off set is and how many city

deficits are going on. i think that's a little bit ahead -- the investment committee is ahead of the reality of that. that's been driving the market initially president trump did the deal with the democrats, extending the debt ceiling and that gave the sense that there's some momentum in washington. that may be the pendulum swinging too far. >> we've got a really big week ahead for earnings more than 170 companies and the s&p 500. if you're an investor, what should you be watching there's going to be some noise good, bad, some in between. >> there's always a lot of noise. people get hung up on a data point. you aren't getting the same easy comps as you were getting in the first setting year over year it's been there the last three

years if you excluded energy then the tax cuts will be very important moving into next year. our sense is that the people that are excited about earnings impact so far have had 80 companies or so. you've had a 6 to 1 ratio leads to misses on the earnings numbers. if you look at earnings revision moment, so the percentage of earnings revisions that are going higher, they've started to slip so people aren't extrapolating anything companies are being cautious as they look forward. i think companies are going to have cringe worthy, cautiously optimistic type commentary the real story is what are they saying about 2018. this is a time when we start to get some indication of the earnings story for the volume. most companies haven't done their budgets yet. they'll do that november/december. you'll get the clear answers in january. you will get at least an inbeingling. >> tobias, you just got back from hong kong

what's your sense of investors in asia in terms of their view on the u.s. or not so i think generally speaking they have been a bit more of the buyers you can see foreigners buying u.s. equities juch as much as u.s. investors are buying foreign equities the grass is greener on the other side of the septic tank. but i think the bigger story here is the still little focus on the fed and on earnings stories and in particular they worry about currency that's why they're so focused on the fed. how will the currency shift based on the fed policy. they're not as concerned about economic trends or valuation like they were earlier in the year are you participating in everyone's favorite parlor game? who do you think will be the next fed chair >> i don't play parlor games i always think speculation is a bad thing. any time i go to vegas i lose money. i think it's -- >> is it a crucial swing factor

for markets though >> i think the policy issues i mean, people are trying to think about if this occurs, is that more bullish, bearish more hawkish or dovish my take is essentially whoever gets picked will be widely regarded as serious economists with great credentials behind them think about the names that are out there. all of them have particularly well regarded credentials. so i'm really not that focused on it for that reason. >> what is your view on the dollar you said foreign investors are thinking about it. where do we go for this year. >> i'm not an fx expert. i want to put that out people have been too bullish about the dollar that's too consensusy. now it's more consistent the dollar will slip in our sense it's probably flat i shall. >> tobias, thank you for joining us 15 seconds ago i guess the key thing to watch is "squawk box"

with great coverage from saudi arabia and the rest of the day. >> of course. >> anyway, lots more to come throughout the day here on cnbc. "squawk box" comes next. the time to refinance your home is right now. get started at lendingtree.com. the only place you can compare up to five real offers, side by side, for free. our average customer can significantly lower their monthly bills. quick. beat the fed's next rate hike. do not miss this window. are you sure you have the best rate? it only takes 3 minutes to find out. go to lendingtree.com right now.

or a little internet machine? it makes you wonder: shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. so all you pay for is data. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com.

good morning, a record rally. the dow and s&p are riding six week winning streaks u.s. equity futures pointing more green at the open today in global politics, in europe, spain takes steps to seize control in catalonia in asia japan's prime minister promising changes to the country's constitution after a big election win live reports from both regions straight ahead cnbc exclusive, saudi aramco ceo sounds off in a rare interview as the company prepares to go public. andrew ross sorkin brings us

that interview from saudi arabia it's monday, october 23rd, 2017. "squawk box" begins right now. ♪ ♪ live from new york, the city that never sleeps. this is "squawk box. good monday morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen andrew is in saudi arabia this morning. he got unprecedented access to saudi's aramco we'll have an exclusive interview with the ceo in a moment then at 7:00 a.m. eastern principles alwaleed, the prince of the king done holding company will be joining us for an entire hour. take a look at this, the u.s. equity futures indicated higher once again. in all the records we've