washington front and center today as president trump names his pick for fed chair and how republicans unveil their new tax plan. facebook beats again the social media company reporting better than expected results for the third quarter. and houston strong the astros are making history last night with their first world series win it's thursday november 2, 2017 "worldwide exchange" begins right now. ♪

congrats to houston. well deserved. coming at a time they needed it, went a full seven games. i heard an amazing series. >> amazing series. they all finish a little too late for us, but outstanding performance. welcome to "worldwide exchange" on cnbc. i'm sara eisen >> i'm wilfred frost good morning to you from me as well let's get to the market picture. slight gains yesterday for the dow and s&p. slight declines for the nasdaq no major moves, not of the size we saw around the rest of the world yesterday. this morning we are seeing the dow slide about 28 points, nasdaq 15. s&p 5 points or so ten-year treasury note for you, which has seen yields slip this week versus last week. last week mid 2.4, this week,

2 2.37 >> japan was strong again overnight. honda earnings were good the japanese yen is stronger didn't quite see the gains we've seen in other recent sessions. hong kong down a quarter of a percent. shanghai down 0.4% early action in europe all eyes on the ftse 100 in the uk where are expecting an interest rate increase >> we are, which is described as moment to us and inconsequential. the first in a decade to change monetary policy, but viewed as a one and done reversing that one off cut we got after the brexit vote last year inflation is rising. >> currency issues as well overall mixed picture. not the strength we've seen in recent days, but nothing sharp in terms of pullback mode. the dax is down fractionally >> gained almost 2% yesterday. oil prices yesterday did for

once fall a bit. they still stand at $54 for wti. 60 for brent crude >> near the highs of the year. wti surged yesterday energy stocks came alive brent to the highest level since last year. >> yesterday >> brent was at 61 a couple days ago. any way. a look at the dollar board as well, which, as we said, the pound is in focus today, but not doing much this morning. the dollar softer fractionally against the yen. down more than that earlier. the euro slightly higher against the dollar bitcoin, another record high up another 3%, 6.942 >> doesn't matter what the yen is doing or global stocks, bitcoin keeps going higher. president trump expected to tap jay powell to be the next fed chair. the president will make the announcement this afternoon in the rose garden.

let's bring in steve liesman to discuss that that's what the reports are indicating i know people are talking about monetary policy. he seems market friendly i want to know why president trump is breaking with what decades long tradition and not reappointing janet yellen. >> maybe we'll get a chance to ask him that question in the rose garden today. it's a good one and one people are asking two other questions are what is the jay powell chair meaning for monetary policy and bank regulation on regulation, many think he'll bring a lighter touch to the table. here is he in june in which he generally supports the post-crisis framework but calls for adjustments. the post-crisis reform program has been mostly completed and has been mostly successful i think it's our obligation now as we reach completion of it to look back over it and ask what aspects of it may be redundant or inefficient but there's going to be some adjustments

that's different from what president trump said who said he will do a big number on dodd-frank on monetary policy, powell looks set to generally follow the framework laid out by the existing committee when it comes to gradual hikes if he has a different idea about monetary policy, he has not let it been known. he has broken with republican critics calling the fed's easing policy in the wake of the crisis a success. here is he from june the economy is now close to full employment and price accommodative policy helped restore full employment and return inflation closer to the 2% goal. he's a low-rate guy who favors some changes to dodd-frank that might help answer your question a bit in the sense that trump was never going to go just with janet yellen. he wants changes to regulation when it comes to the banks, and also probably wants a person

sitting in that seat when it comes to congressional testimony when asked about tax cuts who will be at least somewhat more favorable to the idea of their impacted on growth than yellen might have been. >> steve, if it is jay powell, and if he is someone that turns out to be more of the same in terms of his own voting and his own intentions with creates, are we extrapolating too thatch that means the fed will be like that? all sorts of other positions need to get filled, possibly even janet yellen's herself? will she stay on as a deputy >> i guess i tend to doubt that she'll stay on >> which then means there's four places to fill >> there would be four places to fill right. there would still be four places to fill. think about it you sort of answered your own question, you know the bank presidents have five seats and five votes they'll play a bigger role until those four seats are full.

i think the question i have is in the absence of an economist like yellen or like bernanke, who is going to be the sort of thought leader when it comes to monetary policy? it's not clear powell may be okay following the existing framework, but it may not be too long before we need a new framework. where that framework will come from there's been some talk about whether john taylor might take a vice chair position, but what we do know is there will be a single announcement not two. >> beyond monetary policy and deregulation, one big question is how does the fed retain its independence in this environment where president trump has four slots, where he is breaking with predecessors tradition about reappointing other fed chairmen that were appointed from different parties and different presidents does the market -- do people have to worry about the fed not being so independent under this

president? >> it's well to remember how the system is set up the system is set up to be essentially political in the appointment process. there's no getting around that a political president is going to appoint somebody to fill the job. that person will be approved by a political senate the way the independence is set up by insulating that person in the tenure and in the making of monetary policy from the political process. a bit like the supreme court, you can take a person who you think will vote one way and put them in that job where they're insulated from the political process, that's where the independence comes from. >> okay. that's a relief. >> we'll see >> we await that announcement. good writeup on cnbc from steve steve's --

>> that's my must read the house republicans will unveil the new tax plan today. kevin brady telling reporters on capitol hill last night everything isin his words on target for today we'll get full details of that plan later this morning. it was sort of forecast for 9:00 a.m., we'll see if it comes out at that time >> we'll see what it looks like, what the pay fors look like, and how they'll appease the republicans in new york and new jersey by also find some way to raise revenue. the top corporate story is facebook shares are slipping despite an earnings report that was better than expected. on the call, mark zuckerberg condemned russian attempts to i flu influence the 2016 election and will ramp up spending to confront the problem and add 10,000 additional employees to review the network's content >> i'm dead serious about this

the reason i'm talking about this on our earnings call is that i've directed our teams to invest so much in security on top of the other investments we're making that it will significantly impact our profitabilities going forward. >> facebook says expenses are expected to grow by 45% to 60% next year sending the stock lower this morning down less than a percent in the premarket reversing that pop we got off of another stellar earnings report. joining us now is victor anthony, managing director at aegis capital. does it make sense that the stock should be lower. yes, a jump in expenses but where else are you getting 50% revenue growth >> exactly by all measures this beat our estimates by 8%, revenues by 16% on ebita so their impressive streak of performance continues. so, it was an impressive quarter for facebook, the facebook and

instagram platform combined together and user growth as you stated in your intro, mark zuckerberg came out and said he would invest incremental dollars to address the security issues on the platform and also invest in video koccontent, wher it's short-form video or sports. to frame that, you're looking at essentially an increase of combined operating expenses and capex of roughly $18 billion. that's versus an increase of 8 billion expected for 2017 and of course 6 billion for 2016. so, it's a significant jump in expenses for 2018. we were not expecting that you're looking at a significant contraction in only rating margins over the coming year but with that said, you are looking at incremental revenues of 13 billion to $14 billion of revenues coming on to the platform next year they continue to take

significant share of advertising dollars. that's moving in the right direction. incremental revenues will come from messenger, possibly from whatsapp towards the back half of '18 the fundamentals of the business are still solid and strong so we still like the stock here we do acknowledge that there will be operating margin pressures because of this. one more point, every single year over the past three, four years, facebook has guided for a significant investment year and they have always come in below the costs. i expect the same to happen again for 2018 >> victor, we have to leave it there. thank you very much for joining us facebook down 1% this morning. the other thing to think about, we discuss a lot the impact of extra costs, will it keep lawmakers off their backs in terms of a bigger regulatory cost that will hit them, the facebook numbers themselves in terms of the top line users is starting to mature that's something that you have to think about clearly within that, they're monetizing the platform so well that revenue is growing fast

in terms of actual engagement and users, facebook itself is starting to mature instagram growth is still fantastic. they got that and they have messenger to monetize, but facebook itself -- >> when you have 2 billion users, you just have to count the number of people with internet on this planet. they still showed 16% growth, which is impressive. >> which is impressive in terms of their ability to monetize that's another headline picture to this growth at some point will mature no signs of that yet. >> it's interesting that the stock pulled back on the extra spending on the margin pressure around the politics. we talk to analyst after analyst after analyst whoyes, executives are on capitol hill, they will face heat, but it won't affect the stock or earnings i wonder if that will be questioned again today >> i'm sure it will be in terms of relative costs, it's

better they have to spend more on more staff than they face advertising law or something like that that slams them much harder it's a clever way to go. coming up, tim cook talking privacy, politics and the new iphone x an exclusive coming up. and apple will report earnings after the bell today. the stock is a little changed in the premarket. it has been on an answer lubsutl in recent weeks over perceived demand for the x ♪

[vo] progress is an unstoppable force. the season of audi sales event is here. audi will cover your first month's lease payment on select models during the season of audi sales event.

welcome back to "worldwide exchange." slight gains for the s&p and the dow yesterday. slight fall for the nasdaq this morning we are looking at red across the screen. just slight. the dow down 28 points nasdaq down 17 s&p down about 6 points. oil prices have been on a tear eventually they were up intraday yesterday, nicely above 55. you can see we've come back off that late yesterday, and this morning to 54.1 for wti crude. down 0.3% today. brent which had been up above $61 now down a bit today again, a bit last night. 60.25. sara >> busy day today. we'll get two important pieces of data. initial jobless claims and third quarter productivity they'll be released at 8:30 eastern. as for earnings, results from

alibaba, aig, starbucks and dow dupont the big one to watch is apple. the tech giant reporting results after the bell not to mention the expected republican tax proposal set to be released this morning and the announcement officially of the next fed chairman >> which we look forward to. those apple earnings you mentioned. speaking of that, tim cook sat down with lester holt. cook addressed a wide range of topics from the new iphone x to social media's impact on the election and also spoke about tax reform >> tax reform is sorely needed in this country. we don't focus on the individual side, but for corporations, we think we have a pretty deep perspective on this. the biggest issue with corporations in this country is that if you earn money outside the united states, which most companies increasingly will, the only way you can -- and it's

taxed in those countries, by the way. the only way that you can bring it into the u.s. and invest is if you pay 40% this is kind of a crazy thing to do so what do people do they don't bring it to the united states. well, this isn't good for the u.s. there's no tax receipts there. and it's not good for investment in the u.s so this needs to be fixed. in my view, it should have been fixed years ago. but let's get it done now. >> more on that interview throughout the day i think he's being disingenuous there. apple is a company with a huge amount of capital off shore, they have already been building andexpanding this new big site investing as much as they would any way and they can borrow here at low rates is he trying to imply if that changed they would build another massive plant? >> i think what he's trying to

suggest is that apple faced tax scrutiny from overseas regulators, a tax grab $14 billion in back taxes from the european commission. >> that's a separate issue to what the u.s. tax code is. >> it isn't, because he believes tax revenues, the monies should be brought into the u.s. to benefit the u.s. economy, not just to benefit apple, but so many of these tech giants are holding so much money overseas, it's just sitting there because it's going to be taxed at such a higher rate -- >> but he's implying if that changed, he would bring it back and invest a large chunk of it it remains to be seen if that's the case, because they already invest here. the europe issue is unrelated. the eu is going after cash that ireland didn't make them pay at all giving them tax incentives that wouldn't change whether the u.s. tax law changes or not. >> i think if there's a one-time

repatriation rate, the money comes here >> sure. >> countries are fighting for that overseas cash, it's leading to a bit of protectionist moves and moves to try and sure up that cash while the u.s. does not have this one-time repatriation rate. either way republicans are on board with this idea it's not a new idea. it's something we heard from cook and others so many times. we are expecting that to be a part of the plan today we just don't know at what rate it will have to be repate yatdeyatd repatriated. >> we'll see up next, two more top executives are leaving under armour details coming up. and why fireeye shares are so deep in the red this morning first, as we head to break, here's the national weather forecast from bill karins. >> good thursday morning to you. a soggy start. a soggy overnight throughout

michigan, pennsylvania and upstate new york we'll watch this improving during the day this is 7:00 a.m., rain in burlington,syracuse, buffalo a few showers this afternoon in michigan not too much travel trouble, but umbrella weather not a lot of wet weather along the i-95 corridor tomorrow today this sticks out like a sore thumb 70s and near 90 degrees in dallas if we hit 90 in dallas, that's the first time dallas ever recorded 90 in the month of november that would be impressive more "worldwide exchange" when we come back ave been talking about you for years. sorry about that. they're all about me saving for a house, or starting a college fund for my son. actually, i want to know what you're thinking. have a seat.

knowing that the most important goals are yours. multiplied by 14,000 financial advisors, it's a big deal. and it's how edward jones makes sense of investing.

is now a good time to refinance? yes! mortgage rates are historically low. 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. hi, i'm the internet! you know what's dtj! get a job!ting... hi, guys. i'm back. time to slay! heals, heals, heals! yes! youuuu! no, i have a long time girlfriend. mom! i need my macaroni!!! you know what's easy? building your website with godaddy. pick a domain name. choose a design.

you can build a website in under an hour. yeah! whoo! yes! get your domain today and get a free trial of gocentral. build a better website in under an hour. welcome back credit suisse says third quarter profit soared driven by strong growth in the wealth management business revenue fell 8%. this is the first time credit suisse has reported three straight profitable quarters under the new ceo. shares are up 3.5% swiss re swung into a loss in the first nine months of the year the company previously said charges from hurricanes harvey, irma and maria and the two earthquakes in mexico cost 3$3.6 billion. shell's third quarter profit rose beating forecasts

they had gains in refining cost cutting measures kicked in fractionally higher in london trade. understand armor sha armoure ranks again. duncan will be leaving he was seen as a big hire. on tuesday, under armour reported its first quarterly sales drop as a public company the stock has been suffering since. it's going through restructuring and framing the departures in that way. kraft heinz beat forecasts but missed estimates the company warned that sales will be hampered this quarter as many u.s. consumers work through goods they stocked up on before the hurricanes fireeye reporting a narrower third quarter loss, they are

likely to post an adjusted loss this quarter hurt by shorter contracts. fireeye expects lower billings indicating a weaker revenue forecasts. shares of tesla are down big after the company reported its biggest quarterly loss more on that story coming up after the break. >> getting slammed down 6%. the shine coming off of tesla. a round up of the top stories including the latest on the gop's new tax plan, which we expect this morning. we're live in washington with the latest plus a historic night for houston as the astros win their first world series ever. "worldwide exchange" will be right back looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country.

discover how we can help find your unlock. 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.

wall street on washington watch today as the president names his pick for fed chair talking taxes. house republicans expected to roll out their new plan later this morning and houston, we have a winner the astros crown world series champs after an epic game seven. all the highlights it's thursday, november 2, 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 markets this morning u.s. equity futures coming off

another mini rally day on wall street intraday highs for the s&p, dow and nasdaq yesterday closed off of those highs. dow down 17. s&p futures down 4 nasdaq futures down 11 ten-year treasury note yield off the recent highs, continuing to move lower some buying of treasuries. 2.37 is your yield on the ten-year federal reserve came out no change on rates didn't deter a case for a rate hike in december which is where the market is now. the big one is the announcement of the new fed chairman, even though all reports indicate jay powell will get it and the market seems comfortable with that decision. always interesting to hear what the president says about the fed. >> and if he says anything about the other four slots or three slots potentially depending on what yellen does going forward >> powell does seem like a fit

for donald trump he has shown an appetite for appointments that are -- despite him coming in as a wrecking ball kind of president, in terms of tearing down some of the actions of the last administration, which we've seen, a lot of his appointments have been establishment republican, everybody -- >> more of the same. and he gets to anoint him. the nikkei still grinding out gains, up a half percent european trade, another big day yesterday for the dax. the rest of europe was up slightly it was really germany that yu outperformed yesterday today flat across the board. as for the broader market picture. oil was the story yesterday surging to the highest level since january. energy stocks lit up the market but closing a bit lower.

pulling back this morning. wti, 54.24 brent above 60 but weaker this morning. as for the currency market it's been a story of dollar strength lately. this morning that's reversing a bit against the euro and the yen, hovering around the 114 level. the pound is firmer ahead of the bank of england announcement where we expect higher interest rates. one and down, as wilfred said, just to deal with the inflation they're getting as a result of weaker currencies, brexit uncertainty. >> two factors were the extra cut coming in after the brexit vote as you say, inflation up to 3% but not seen as transforming the future path of the boe >> not like we're going into a cycle. bitcoin, new highs today well above that $6500 mark that we saw yesterday in the session.

now $6900. just charging ahead towards 7,000. for all the haters calling it a fraud out there. >> that poor ex-boyfriend of yours that didn't buy it >> didn't buy it at a dollar the only call i ever told anybody to make actually i'm careful not to do that >> should have done it yourself. >> can't top that. in this idea that the cme will open a futures market adds legitimacy, i think. the price of bitcoin is impossible to tell what it's valued at, whether it's a good buy or terrible buy or if it will collapse and end in tears, or just keep going up to the moon the underlying technology has people interested. >> still can't really use it, though >> a little bit. >> you can't go in and exchange gold >> people can't figure out is it a currency, a commodity.

it doesn't have government backing, so it's not a currency. but it can be viewed as a commodity. >> busy day today. we'll get two important pieces of data. initial jobless claims and third quarter productivity they'll be released at 8:30 eastern. as for earnings, results from alibaba, aig, starbucks and dow dupont the big one to watch is apple. the tech giant reporting results after the bell >> the key is the forecast for the holiday season the x wasn't released in time, but the 8 was. >> three weeks of the 8 he will be talking about but his commentary regarding the ten will be key. >> house republicans are expected to roll out the new tax plan later this morning. let's get to ylan mui on the details. do we expect this to happen today? >> we do expect to get this today. the reduction in the corporate

rate will be temporary the rate will go down to 20% but expire within ten years, perhaps as soon as eight years according to one source that i spoke to. getting to 20% is one of president trump's red lines, but to keep the cost of this tax plan to the 1$1.5 trillion thats required by the rules republicans want to use to pass this bill, they have to make some tradeoffs, and this is one of them. privately theinitial reaction i'm hearing from the business community is they are holding fire for now, and letting this process play out kevin brady told reporters last night that he wants to make this corporate rate cut permanent but that it could take several steps to get there now some other provisions that are in this bill, the u.s. would move to a territorial tax system and nbc news reporting there will be a 12% repatriation rate on cash and 5% on other assets there would also be a 15% men

mum tax on foreign income. now, for pass-through businesses, only 30% of their income would be able to qualify for that new 25% rate. again, according to nbc. those full details are expected to come out midmorning with debate beginning in committee next week. so there is time for changes, but this is just a taste of system of the tough choices that republicans are going to have to make if they want to do comprehensive tax reform >> in terms of the comments from the business community, the key thing on the corporate rate tax, that will benefit existing companies. but if foreign companies are thinking this cut, should i move my headquarters to the united states will they be put off at the prospect that it could go back up again any day soon? >> that's right. one of the things that we don't know is what it would go back up to would there be a phase-out would there be a snap back one thing that political analysts say is that actually having a cliff is a good thing

for lawmakers, because it creates a sense of urgency if you wanted to increase your chances of ensuring that the corporate tax cut is permanent, you have it snap back to 35% in year nine, ten, 11, create that cliff to force lawmakers to act and extend the previous rate cut. we'll see where lawmakers land on this. and if they have to play those political games to get the rate they want. >> i can't tell, based on what you're reporting at this point, is this a tax cut for the wealthy or is this a tax increase for the wealthy depends on what happens with state and local. >> that's right. the big hold up yesterday was because dissent among the ranks on howe that state and local tax reduction. it's unclear what the compromise

was. the other part of this that is still being negotiated that we still are unclear on is what income levels are associated with what tax brackets on the individual side? we understand the top tax bracket will remain at 39.6%, but does that apply to people who earn $750,000 a year a million dollars a year or some other number that's tshtbd. >> and what about scrapping the estate tax >> we heard that the estate tax would be gradually phased out. not happen immediately but it would go away. >> ylan, thank you very much hopefully tomorrow you will be reporting on the details, not another preview. the estate tax, the easiest things for the opposition to attack saying it is a cut for the wealthy. >> which is probably why they

have gone to the gradual side of things it's interesting to see how it is scored. the democrats are painting this as a tax cut for the wealthy only with the pass-throughs, but if they do get state and local income tax that affects everyone in new jersey, new york, california in earnings news, tesla shares are down big after the company reported a bigger than expected loss for the third quarter and gave production updates. landon dowdy has more. good morning >> good morning. shares of tesla shifting into low gear following the worst quarterly loss in the firm's history. the carmaker losing $2.92 a share versus the expected loss of $2.29 cents a share revenue beating just slightly at 2.98 billion tesla spent heavily to ramp up production of the newer model 3 sedan. tesla saying it would cut production of the model s and x vehicles to deploy resources towards the model 3 to help with

the bottlenecks in production. it's an issue that elon musk described as deep in production hell >> let's say level nine is the worst. we were at level nine. we're now at level eighth. i think we're close to exiting level eight. i thought we would probably be more in level seven by now it's obvious what we need to do. it's work to get there working seven days a week to do it we have it covered it will take us a few months longer than expected >> musk also touched on the reports of the tesla layoffs, saying the firings were based on performance reviews and only 2% of people did not make the cut shares of tesla have risen more than 50% since the start of the year stock off 6% in early trading. >> landon, thank you very much for that now to sports. the astros are the new world series champions they beat the l.a. dodgers 5-1

in game seven last night houston was helped bay big home run by george springer who was named world series mvp it's the first title for the astros in franchise history. the team started in 1962, and fans took to the streets outside astros stadium in houston this morning. they rallied around the team since hurricane harvey devastated the city. the parade will be held tomorrow congratulations again to the astros >> that brings us to today's top trending stories nice side story. one of the astros players, carlos correa taking his world series winning moments to new heights. during the teen seam celebratioe got down on one knee and proposed to his girlfriend on the field. so cute. >> will be a way to take the sell break out if she said no. >> would he have done this in they lost? >> upset the happiness >> all worked out for them it was fantastic

congratulations to them and the astros this trending story. the cast of the new lion king film has been released the remake will feature beyonce as the voice of narla and donald glover as simba. john oliver will be the voice of zazu, and seth rogen takes on the role of pumbaa james earl jones will reprise his lead role for mufasa >> how did they get this cast together >> how could they? it's the lion king of course they'll do it. i can't wait i was nervous about the remake with this cast, with james earl jones -- >> are you a big lion king fan >> yeah. it's the best. >> we have to wait until 2019. >> that's fine, as long as it comes through and it's strong.

with that cast, it will be some good elton john tracks in there. >> beyonce getting the headlines. >> james earl jones is the key. coming up a short-term fix that will hurt long-term savings. that's what one op sed wri-ed w calling president trump's tax plans. first, as we head to break, let's look at what treasuries are doing this morning we're at 2.37 on the t-yenear. for your heart...

your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember. 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. somesend you and your family overwhelrunning. y can... introducing febreze one for fabric and air. no aerosols. no dyes. no heavy perfumes. it cleans away odors for a pure light freshness... so you can spray and stay. febreze one, breathe happy.

welcome back to "worldwide exchange." i'm sara eisen here with wilfred frost. time for some must-read stories. my pick is trump's tax plan budget gimmick is a short-term fix that will hurt long-term savings. this is back to the 401(k) debate while president trump said the shot it down, but it's still out there. roger ferguson jr. writing this may make it easier to fit together the pieces of the tax reform puzzle this year, ie raising revenue, but it will make americans retirement security and our nation's fiscal security more precarious it's a budget gimmick

masquerading as fiscal prudence. we hit this hard when this was floated out about by republicans. it's worth noting again how they treat those 401(k) deductions. it's an incentive for americans to put away money especially when they have 401(k)s through their work >> i think it would be a surprise if it was still included it was floated out there and slot down quickly by all sides >> and the president on twitter. >> it would be a surprise if it's still in there, but there's a chance and they could adjust it my must-read is titled watch fed governor jay powell in his own words on monetary policy bitcoin. we have pulled together all the various quotes he might have on all topics various video clips. he's expected to be confirmed at some point today as the president's pick we don't know that for sure, but

some good key comments from him in the past couple of days >> on everything the dollar bitcoin he spoke about monetary policy. you know what he said about the dollar he said it's an exogoneous event that we don't target >> what all central bankers claim, and then they get into the seat and say we have to consider it. >> it's the quickest way to make monetary policy. the quickest adjustment of an economy based on the policy they set. i'm sure jay powell knows that we're approaching the top of the hour the team is getting ready for "squawk box. becky quick has a look at what's coming up on a busy news day for all of us. >> we have a lot going on. primarily that fed decision. not the typical fed decision we get aftder the fomc meetings, bu

who is the next head of the fed. we're anticipating that it's going to be powell we don't know for sure that's why this morning we'll watch the president's twitter handle closely we'll find out what he will do anticipation is he will name jerome powell. we have guests on to talk about those issues we'll find out what it means for the fed decision, fed policy and the markets. the other round of news is we're going to get a look at the tax plan, see some details we have several congressmen on to talk about this including jeb hen hensarling and we will talk about the details are, whether they have the votes for this where the push back may be and when they think if something

might actually get passed. we'll talk about all of those issues today we also have the head of the fda on this morning. we will talk about that war on opioids, try to find out what the fda can do to help with that also talk about drug prices. is that something that he thinks the fda can play into. and our guest host is mike jackson who is the ceo of auto makes. he' autonation he'll be on with us starting at 7:00 a.m. eastern time >> we look forward to that in about nine minutes time on "squawk box." washington front and center. house republicans expected to roll out a new tax plan. and the president will announce his new pick for fed chair you're watching "worldwide exchange" on cnbc.

welcome back to "worldwide exchange." futures at this hour pointing lower. they have improved

down, but not by much. 14 points down for the dow joining us is anthony chan, chief economist from chase all eyes on tax reform plans and jay powell's potential appointment. let's start with the latter. if it does mean more of the same, is that a good thing for the u.s. economy >> i think it is jay powell represents sort of a janet-light in terms of whether he's supporting more monetary easing or more interest rate hikes. to that extent, it's more continuity at the same time it also will make financial markets very calm that it's not going to mean super surge in interest rates. i looked at what would happen if interest rates went up suddenly. the taylor rule suggests interest rates would be 1.8%

higher i found if you raised the fed funds rate by 2% or more in a given year, you have the s&p 500 going up by 3 points as opposed to if you raise the fed funds rate by 0% to 1%, guess what happens you get an 8.2% rate of return 3% under 2% or more, and 8.2% when you raise interest rates less same thing for the risk of recession. if you raise interest rates by 0% to 1%, the probability since the 1950s has been only 14%. that's what you normally find in a given year if you raise interest rates 2% or more, the probability goes up to 49% >> let's put the two stories together let's say the republicans put out a tax reform plan that's pal latible enough to get the votes, and it does pass at the same time we are undergoing this fed transition in february is jay powell's first job as fed

chair going to be a major inflation problem? >> i don't think so. first of all, even if the house does release the tax, which i think is likely this morning, we're still in the fourth inning of a baseball game here that could very well go into extra innings before it's over we still have to get it passed in the house, the senate, and then the two bills have to be merged and the president has to sign it it's a long process but something that will give reassurance to markets that we're on the right track inflation the last five years has been below the federal reserve target and likely to stay that way this year and likely into next year. i don't think you have an inflation problem, and the federal reserve is continuing to raise rates gradually. i don't think inflation will be a real problem for the federal reserve for quite some time. >> anthony, thank you very much for that

anthony chan of chase. so much on the docket today. also apple earnings. >> apple earnings after the bell will be huge economic data to chew on aadhe of jobs day torp >> "squawk box" coming up next

good morning washington front and center today as president trump names his pick for fed chair and house republicans unveil their new tax bill cut, cut, cut. not really called that, i don't think. we'll start with a rundown of what we know. and facebook posting an earnings beat but the stock under pressure we'll tell you why and houston strong the astros winning their first ever world series last night i don't know where the dodger bats were. a little disappointing it's thursday, november 2, 2017,

"squawk box" begins right now. ♪ live from the nasdaq market site where business never sleeps, this is "squawk box. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square, i'm glad the astros one. that's who i was rooting for >> were you? >> yeah. >> i like the astros i'm glad for houston >> in light of the hurricane >> i settled in. had a couple of beers on a week night. >> yeah? wow. living large >> yeah. >> watched the first inning. bases loaded two guys on i thought puig would do something. you think a walk is great. then the next guy has to deliver. when you have bases loaded after they already scored -- i went to bed. >> my gosh >> i didn't --