will the feds roll will the bulls bounce back on the two week losing streak since august developing story europe's largest economy in doubt after talks break down. but let's make a deal. marvell technology is reportedly ready to announce a $6 billion acquisition today. it's monday, november 20th, 2017 "worldwide exchange" begins right now. good morning and a very warm welcome to

"worldwide exchange. >> good morning on this holiday week. >> let's get to the market picture. as we said, we did have declines for the dow and the s&p last week the nasdaq was able to hold on to a 0.4% gains came on slight losses on friday as we said for the week it's held slight declines, two in a row for the dow. this morning we are pointing low. a little bit of weakness and that's fed into futures markets. dow is down 13 yields slipped again last week ending at 2.35 on the ten ear. we've slipped a little further over the week end. 2.34 at the yield on the ten year, short end of the curve they have seen yields rising so that flattening. it's a bearish signal. >> it's been one of the biggest stories over the past week we turn to asian equities, really a mixed session there today.

we saw the japanese nikkei close lower again today down .6 of a percent. man, talk about a reversal of the chinese stocks the hong kong hang seng is up .2 of a percent shanghai composite up .3 of a percent. that's after starting the section lower on concerns of new financial regulations in china if we turn now as well to europe we've seen red arrows across the board there in this section as well the german dax down. "the biggest loser" today, that's down .2 of a percent. marginally lower today the big headlines there, the fact that coalition talks in germany are breaking down. so that's why we're seeing that there. >> we are. we're going to come to that story in more detail given that we've had this huge global rally of late, both germany, france, china, and japan all down more than 1% last week it was profit taking across the board, not just in the u.s let's have a look at other asset classes. oil prices did enjoy a nice

bounce on friday wasn't enough to put them into positive territory it was the first negative week in six all happening on a great run. down a fraction this morning, 56 point be point 5 wti dollar board, we did see the dollar slip last week. the broader index down 0.8%. most of that was against the euro the euro up 1.3% last week interesting that there's not a move in the euro not too much of a move in the german dax based on the coalition talks breaking down. 11794 the price of the euro. the pound enjoying a little bit of a bounce. the chancellor will present his budget to parliament on wednesday. gold prices just to round things off up on friday up maybe 2% last week. today not doing too much slipping to 1291. >> it may be a holiday shortened week, but there's plenty of data

on the agenda. look forexisting home sales on wednesday. weekly jobless claims, durable goods and consumer sentiment the markets are closed on thanksgiving and are only open for a half day on friday but it is black friday. there are about a dozen companies in the s&p 500 reporting earnings this week notable names, lowe's, campbell soup, sales force and both hp ink and hewlett-packard enterprise reporting this week as well. >> the graphic there very nice. in corporate news marvell technology is with a deal to buy the chip maker >> marvell technology is going to announce a deal to buy chip maker cavium for about $6 billion. they'll rival giants like intel and broadcom 50% cash and 50% stock valuing cavium at $80 or more than a 17%

premium before the deal was announced in november. they have talked about producing semiconductors and cavium is in networking and communication a combination would reap significant cost savings following years of cost saving the deal is another move towards chip maker consolidation earlier this month broadcom, shares of marvell have jumped 45%. cavium up .2 of a percent. it's completing its $38 billion purchase of chip maker and xp reuters says they're going to win antitrust approval it may get the approval at the end of the year with a few tweaks to its concessions. buying nxp could help them fend off the $100 billion bid from

broadcom it is peak chip consolidation right now. i almost can't keep track of everybody who's trying to merge with everybody else. >> the attraction is even brighter for broadcom if the nxp goes through there's the ability they have to fight off any potential bills. peak consolidation continues. in other corporate news general electric is preparing to undergo a major board shakeup. last week ge ceo john flannery told investors he wanted a smaller board with new members with key skills relative to where the company is going nine of the current 18 directors will lose their seats and three new names will be added. front page story suggest two of ge's longest serving word members will go. a lot of focus on ge. >> absolutely. if you look at the dow and the

s&p both closing the week lower last week, both led lower by ge. stock plunged about 11%. so hasn't baker hughes that hasn't been discussed much. ge has said they're going to exit that investment if you want to get an idea who potentially stays on the board, they've dug through the insider activity for this stock. over the summer as we were getting this management shift a number of board directors actually bought into ge. some names that haven't purchased in the past or hadn't purchased in a couple of years jack brennan, which you just mentioned who purchased but james tisch, he bought 100,000 shares back in august. james rohr, james beaty, names of some board members all in on ge. >> all committed and they'll keep their seats because of that >> i think it's a strong possibility. they're also relatively new compared to some of the folks like andrea young. >> i'll bet they waited to buy

until now. would have been be a better price. moving on. some other stocks to watch. >> other stocks to watch, we have alibaba investing $2.9 billion in china's top grocer, sun art retail group it gives them a 36% steak. making them the second largest shareholder. sun art operates stores across china. sun art is down 4% checking shares of toshiba, the shares fell nearly 6% in japan the company raiannouncing it wil raise $5.4 billion it will boost toshiba's assets back above the liabilities and help it avoid being delisted in japan. those shares down 6% right there on that board. boeing has secured an order for 75 737 max jets from avalon with an option for 20 more. the deal could be worth up to $11 million.

avalon is an aircraft leasing company leased in dublin it's owned by china's hna. shares of boeing about flat in premarket but this stock, boy oh, boy, has been on a tear this ye year. >> it has indeed roche announcing a double dose of trial news. it says the immunotherapy in combination with other drugs cuts the risk of lung cancer getting worst. the hemophilia drug stops the risk of bleeding looks like that's the german stock listing. the main listing is in switzerland. >> etsy is launching a $100 million stock buy back program it's down 4%. verizon has been upgraded by wells fargo to outperform. the target is $50 a share up from $48 a share citing several factors including

valuation is up 1%. now back to the global markets. joining us from london, gina sanchez, ceo of cantaco global she's also a cnbc contributor. thank you for joining us today. >> thank you. >> really, let's actually start with the bond market right now we've seen a flattening of the yield curve. >> right. >> we saw high yield debt selling off last week. what is that signaling and how should we look at that as it crosses over into entities as well >> i think that that is the market fretting over whether the debt markets are going to experience any kind of problems. most people say that defaults come at first very slowly and then all of a sudden and i think that the market to some degree started pricing in more of that all of a sudden, however, italready was slightl overblown right now. if you look at the state of the high yield market, we are very overly indebted in the corporate sector most of these companies have

really bought themselves anywhere from 12 to 18 months. even if you do have a rising rate environment or flattening curve, it really isn't going to impact them for sort of immediately. so i do think that this move in the markets is well ahead of what could possibly really be happening right now. >> gina, what about corporate debt situations and credit spreads in europe and what are we learning from those spreads >> well, you know, i think corporate spreads generally are tight. they have been tight around the world and in europe you have a situation where you have a ticking time bomb in the form of negative interest rates. you know, you have actually negative interest rate corporate bonds in europe that at some point will become problematic for investors. i do, however, think that because the equity markets are actually pretty healthy in europe, you know, i think that that is the -- the recovery in europe has more legs in our

opinion and it's slow and steady but we do think that that -- that slow and steady is probably going to win the race so we do actually like corporate debt in europe >> gina, looking at equities here in the u.s., whether it's the nasdaq, dow, s&p, they're all within 1% of their record highs. where do you see those going from here? >> look, i think we're very highly valued. you're talking about a situation where you have -- you know, you have a very, very, very belated economic cycle it took us years and years of stimulus to get to the recovery that we've gotten now. you finally have earnings finally starting to tick up at a time when we're really more or less late cycle in the economy we need to start raising rates and that's part of the reason that you're having that flattening it's bare flattening and, you know, we have priced in i think more than we're going to get out of this recovery the recovery is probably going to be shallow and we're priced in for more than that so i think that there's room for

disappointment maybe not immediately but at least within the next three to six months the end of year expectations priced into the s&p 500 i think are high. >> well, gina, thank you for giving us your breakdown gina sanchez of chantico global. coming up, washington watch. the senate is prepared to take up tax reform. will the repeal of omarebaca come with it we'll head to d.c. and hear from senator lamar alexander. that's next. ♪ what we do every night is like something out of a strange dream. except that the next morning it all makes sense. to power global e-commerce fedex networks are massive, far-reaching and, yes... a little magical. fedex.com slash dream whuuuuuat?rtgage offer from the bank today. you never just get one offer. go to lendingtree.com and shop multiple loan offers for free!

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in washington news the senate tax plan will reportedly let mutual funds skip a change that hurts individual investors. the provision would force investors to sell off the oldest shares first originally change was designed to both fund firms and individuals. the senate finance committee decided the proposal will no longer apply to mutual funds this comes after a large firm such as vanguard and eaton vance complained sticking on the theme of tax reform let's head to washington and check in with john harwood john, good morning good to see you. >> good morning, morgan. the tax reform bill has got a few days for public reaction to sink in. reaction to provisions like the one you were just discussing as well as the who benefits from the tax bill and what the benefits for the economy would be one of the issues that has swirled around the tax reform debate is obamacare. you have the bill in the senate which would eliminate the individual mandate with the idea of raising additional money and

achieving senate republicans health care goals. you also have some push back from moderate republicans who say they want to see a bipartisan bill passed that would stabilize the obamacare marketplaces the key sponsor of that is lamar alexander of tennessee very serious legislator who's trying to navigate the trump era in washington and get that bill passed i asked him how he was going to navigate that through the end of the process and get the approval of donald trump. >> lamar alexander isn't president. i tried to be and the people chose donald trump at a different time so the president called me in this case and he said, i think we need a bipartisan solution on health care so people aren't hurt for the next couple of years. why don't you work with senator murray and see if you can do one. we've done our job, it's sitting there at the white house wrapped up in a nice package. >> what about fellow republicans in the house and senate? >> i think if the president supports it it will be a part of the end of the year package. would he see premiums going

through the roof for the next two years we ought to be able to agree that we're going to stabilize that. we're sitting here in the blue bird cafe. most songwriters don't have health insurance because they can't afford it. if they do have it, in tennessee their premiums went up 176% in the last four years and 58% this next year. so what this little bill would do is take those premiums down, not up >> so does that mean the entire game for you in particular, not so much senator murray, is to be the last person to talk to president trump to get him to go like this instead of go like that >> we're going to say, mr. president, you asked us to do this you don't want chaos, neither do we sign it, take some credit for it and give the american people a bipartisan win i think they'll like it. >> so there's still significant uncertainty over whether this is going to happen. lisa murkowski, senator from

alaska, one of the wavering votes in the senate on tax reform says she wants to see that bill passed but she said late last week it's not a precondition to her support for the tax bill we're going to wait and see after thanksgiving whether that bill passes as well as tax reform, guys >> john, just on that. we're not expecting any major developments. >> no. >> late november though we could see some movement? >> yeah. the bill has cleared the senate finance committee. now it goes to the senate floor and what happens is when senators go home and take the temperature in their states, gauge the public reaction, see how much heat they're getting, see how much praise they're getting, that informs their reaction as they saw it during the debate over getting rid of obamacare. so we're looking for a debate beginning on the senate floor just at the beginning of december they hope to get it done before the new senator from alabama takes place, that controversial seat where roy moore is the republican nominee

he might lose that seat which would narrow their margin for error. if they could get it done before that becomes effective and with luther strange interim senator still there, they'll be better off. >> okay. john, great to see you as ever. >> you bet. >> still to come, coalition in chaos. why global investors need to pay attention to what's happening in germany right now. first as we head to break, here's today's national weather forecast from nbc's bonnie schneider. >> good morning, wilfred and morgan we are looking at windy weather persisting through monday morning and even into monday afternoon. so that could slow you down a little bit if you're traveling or heading to the airport. we're also looking at the cold really cold air coming in behind the system and that's going to make for a brisk chilly morning whether you're in the northeast or the southeast now keep in mind though in the south your temperatures will warm up so business travel takes you to atlanta well, there's a wind chill of 28 degrees this morning hooking at high temperatures into the 60s big change ahead

very mild across the nation's mid section and areas to the west looking at warm weather there. overall quite a change as we get closer and closer to thanksgiving that's your business travelers forecast more "worldwide exchange" when we come back [bell rings] every year we take a girl's trip. remember nashville? kimchi bbq. amazing honky tonk? i can't believe you got us tickets. i did. i didn't pay for anything. you never do. send me what i owe. i got it. i mean, you did find money to buy those boots. are you serious? is that why you don't like them?

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welcome back in global news happening now, a noon deadline has passed for zimbabwe's long-time president robert mugabe to resign or face impeachment.

the army seized power last week. mugabe defied expectations last night. righters says the 93-year-old has agreed to step down. his ruling body department want him to quit in front of the military which would have made its intervention look like a coup that 12 p.m. local time deadline passed some 20 minutes ago or so and he hasn't yet stepped down we'll continue to watch for what any reactions might be. emlsewhere in global news, german chancellor angela merkel has canceled a press conference today. germany is thrust into somewhat of a political crisis. she failed to win a majority been in coalition talks ever since. those just broke down. let's speak with peter spiegel of financial times good morning to you. i guess given what is a significant development here, it's a little bit of a surprise not to see either the euro or german dax selling off more

meaningfully. >> no, we saw a real dip in asia trading, particularly the euro and german ten year buns they recovered in european trading so far most people expect germany to eventually have a coalition where even if they go through elections, the german economy will be fine i think the risk is much more on the political side not just in germany but you have brexit talks going on. if we have to go to new elections those will get held up we have the ambitions by emmanuel macron. that will be put on hold so stuff we're looking at for the markets to watch is much more medium or long term immediately people don't think the eurozone growth story which has picked up speed over the last six months, i don't think this political shakeup is going to have any impact on them >> peter, i guess more broadly in the e.u. people sort of framed president macron's victory as drawing a line under

the moves across europe for the anti-eu forces following brexit, et cetera. is this breakdown of coal licks tal -- coalition talks that that has not finished and focused on the outcoming italian elections? >> in many ways the french election was the high water mark not only the german elections, the far right party got in the austrian elections as well we have a coalition between the center right and the far right party where the far right did very, very well. even in the netherlands where the far right didn't get into the government, they have been influencing the political debate on the netherlands as you mentioned italy where we've seen not only the five star movement do well, but suddenly lega spgs nord, it has moved into tuscany and other parts of italy the governing party of the center left looks like it's going to get voted out i think the macron victory was seen by brussels as a change in

the story. actually, we've gone back to it. as you say, this failure to form a coalition because we have far left and far right pushing the senate together and that hasn't worked out well has a real signal that this is going to continue throughout next year. >> peter, great stuff. financial times. still ahead on "worldwide exchange", today's top stories and a roundup of the global markets plus trending today, boy band n sync getting into the fashion business in a big way. we'll tell you why fans are lashing out on social dia ismeth morning. stay tuned you're watching "worldwide exchange" on cnbc.

under pressure futures pointing to a lower week shortened trading week. $6 billion chip deal marvelltechnology reportedly ready to announce an acquisition today. and headed for the skies elon musk teasing an epic upgrade for tesla's new roads to the super car. monday, november 20th, 2017. you're watching "worldwide exchange" on cnbc. ♪ ♪ good morning a very warm welcome to "worldwide exchange" on cnbc i'm wilfred frost. >> i'm morgan brennan. let's go straight to the global market picture this morning. >> take a look at u.s. futures, they are lower this morning. we've got the dow indicated to open lower by 30 points today.

the s&p indicated to open down by four points even the nasdaq poised to open ten points lower this comes after two straight weeks of losses for both the dow and the s&p. both of those averages dragged lower by general electric last week it was a big week for ge last week nasdaq was higher last week. if we take a look as well at treasury notes, if we move to that board right now, what we've seen is a flattening of the yield curve over the past week or so. right now the ten year is trading lower, moving lower. it's down at 2.345%. >> if we look at equities around the rest of the world, we've got a mixed session in asia. japan slightly lower hong kong higher worth noting last week we did see shanghai and japan down more than 1%. in terms of european trade last week, saw more than 1% of declines for germany and france. in general a positive session as you can see.

germany and u.k. slightly lower. germany before the break reacting to the breakdown of coalition discussions following the german coalition two months ago. both the euro and german dax not declining. they had done overnight in the futures markets but flat at the moment for the german dax. as we turn to the broader markets starting with the currency picture, we see the dollar stronger. the euro weakening in light of the coalition talks breaking down in germany. the u.s. dollar is also stronger against the yen but it is weaker against the pound. if we turn now to oil, we are seeing oil pare back from the rebound we saw in both wti and brent last week. so oil is lower. wti is at 56.46 and turning now to -- >> let's discuss that a bit further. we're going to be joined with some news on why oil prices have

been moving latest of all. jackie. >> morgan, wilfred, good morning. rumors have been floating about the king passing the throne, the reins over to his son crown prince mohamed bin sal mad also known as mbs there's a speculation that a shift of power could come as early as this week mbs has been shaping policy. he is aetd the architect of the saudi 2030 vision. at 32 years old he's the driving force behind modernization in the kingdom. no secret that mbs has this ambition getting this title gives him power. as king mbs's impact on geopolitics would be more pronounced he would be tasked with setting the agenda with foreign nations. he's already viewed as aligned with president trump it seems like the saudis could potentially partner with israel in a unified fight against iran

and hezbollah. business interests include oil and of course the aramco ipo consensus that king mbs would be bullish for oil prices or at least keep them in the high end of the range also remember the saudis are the biggest opec producer. the new energy minister has been very strategic about the country's role within the cartel that's likely to continue ahead of the -- >> we think this could come as soon as this week, this handover >> they have been talking about it since this summer the rumors are heating up a little bit they're talking about an announcement this week the current king is in his 80s there are also rumors that he has dementia it could be time to pass those reins on the fact that the new king is 32 years old, very young and tender age to lead such an important nation within the global scheme of things. this could be a massive change if the announcement does come. >> yakky, thank you very much. 32 is a very wise age if you ask

me. let's get back to discussing the broader markets. scott emmons at brown brothers harriman scott, good morning to you. >> lots of wisdom joining us now. let's touch off on oil prices first of all clearly there's a lot of geopolitical factors all in all this opec deal continues to seem to hold. that's really the biggest support in terms of supply side. >> it's the biggest guy geopolitical support the demand side, that's the ultimate driver. that's the global economic picture. it seems to be brightening a little bit that's not a statement about the states but abroad as well. i think the demand side of the oil picture is beginning to be a little brighter as well. don't take your eye off of that. >> certainly it would seem that saudi's new potential king here is really kind of signaling that above and beyond oil moving beyond it and saudi is open for business in terms of this global picture, what is your take going into 2018 where would you be putting your money right now? >> i think as i said to wilfred,

the global economic picture is brightening. that has implications. as a capital allocator, what i spend most of my time doing, we're finding more attractive valuations outside of the united states than inside the united states that may not be surprising in the eighth or ninth year of a bull market here, but valuations in europe, valuations in emerging markets in particular are more attractive than they have been in 20 years so we're shifting some assets here. >> talking about developed world markets outside of the u.s clearly those markets have had a great run and they've played catchup over the course of this year to what extent is ongoing investment reliant on loose policy remaining and to what extent is the structural growth being delivered? >> monetary policy certainly factors into the picture i think the important thing about monetary policy is the expectation of it and the transparency of it i think the federal reserve under janet yellen and soon to be chairman jay powell will

continue to use communication. the transparence sli enable tighter monetary policy. no one is talking about tight policy, just tighter policy to be digested by the markets in due course it's more of a fundamental story than it is a policy story. >> if we don't get tax reform do you think the fed hikes two times next year or three times or something else? >> morgan, my guess would be three times because i think the fed has every underlying fundamental reason to do so. what i mean by that is evidence of strength and strengthening labor market conditions coupled with the lack, as of yet, of any inflationary pressure. they've got time on their side i think they'd like to see interest rates rise independent of whether a tax package is passed. >> talk about what you're seeing in the u.s where you do see value, what sectors? >> certainly not technology. we're not seeing a lot of value there. we're seeing technology in the more consumer-related sectors

driven in large part that the consumer of the united states remains in relatively good health we'll get a little bit more good data wednesday we'll get another consumer sentiment report. an important one before the holiday shopping season. i think the consumer related sectors are poised to do well. >> the fact that it is black friday and the move higher we saw in the xrt and the retail stocks, do you think they've hit a bottom are these value plays right now? >> i think they've got a lot of opportunity. again, because of the strength in the labor market, the strength of the housing market what that implies for the ability of consumers to spend money and perhaps more importantly the willingness to spend money. >> great stuff scott clemons of background brothers in corporate news, marvell technology is nearing a deal to buy chip maker cavium for $6 billion. it's made up of 50% stock and

50% cash a deal is expected as early as today. not significant move in those share prices this morning. and a disappointing weekend at the box office. "justice league" taking the top spot garnering a lower than expected $281.5 million for its opening weekend. that's according to com score. warner brothers and d.c. entertainment film only saw 96 million in u.s. seals. disney's "thor" coming in a solid second place that film bringing in $20 million. murder on the orient express sliding in as the third best box office performer the mystery movie brought in $34.5 million. that tells you how long it's been since i actually went to a movie theater, which speaks to the slide we've seen. >> well, i go quite a lot. we make up for it. "murder on the orient express"

good cast but very disappointing i've heard. other news out of hollywood, the weinstein company is getting a surprise bidder. submitting an offer to acquire the company. she served as the head of president obama's small business administration she hopes to be a chair woman heading the company which would be renamed she wants to set up a fund for victims of alleged sexual misconduct from harvey weinstein in the past. taking it to the top internet headlines of the day. jeffrey temble quitting his show "transparent" after being accused of sexual harassment he continues to deny the accusations. he doesn't want to continue working on the amazon series because of the politicized atmosphere on the set. notorious murder remember charles manson has died at the age of 83. he passed from natural causes in hospital the cult leader served nine life terms in california prisons and

was denied parole 12 times elon musk teasing a special upgrade to tesla's new roads to super cars hinting the car may be capable of briefly flying. the roadster is supposed to arrive in 2020 with a price tag of $250,000. it's not really flying though, it's just that it's so fast and light that it could at times take off and fly pretty impressive. >> first of all, let's see if he actually hits the deadline he's been known to have aggressive deadlines second of all, this is probably one of the most underreported stories from a broader perspective. all of these tech billionaires that are involved in things like tesla with elon musk or jeff bezos that have their own space startups all of that technology they're able to transfer to the more consumer-facing companies. >> absolutely. >> i would expect him to do it. >> cross poly -- poll lynn

nation that's a long way off a rocket ship. >> well, yes something else that is rocketing my world nsync's holiday merchandise is selling out. this makes me feel old it included sweaters, pins, shoes, hats, a mug and even a stocking are you an nsync fan, back street boys fan or i bet you're a one direction fan. >> i'm not a one direction fan i take that. british boy bands. i'm a big fan of boy bands and i like nsync or back street boys if the boys would take that and decided to release that, i would be picking that up. >> win the holiday competition. >> you don't understand. sara has had to learn who they are so i can forgive you. still to come, has cnahi's growth miracle run out of steam? the must reads coming up

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welcome back to "worldwide exchange." time for must reads. my picks in the financial times titled china's growth miracle has run out of steam a bearish take on the long term outlike. writing historical precedence suggests the potential magnitude of the current growth overstatement. japan resembled those as

china's. they suffered from a very low consumption share of gdp and an over reliance on investment that by the 1980s had veered into substantial miss allocation. i bring it up last week we did see shanghai down over 1% in the smaller index and shenzhen down 5% just a little reminder of the challenges facing the chinese. >> two quick thoughts on this, be bearish industrial metals. i wonder about iphone sales if that's reflecting this argument as well? >> china's been a factor in apple sales. approaching the top of the hour. that means steve is getting ready for "squawk box. joe is joining us. good morning, joe. >> good morning, wilf. a lot of sports. something going on with the spurs? what is that >> we beat them 2-0. crucial game

bad season so far. this was a joyous game for arsenal. >> san antonio -- what -- i don't understand is this a -- what is this? the spurs? >> tottenham hotspur. >> say that again. say that again for me. >> it's a british word, joe. you cake take it for that one. >> but spurs is like -- that's what you put on like when you are going to ride a horse or something, right >> i wouldn't know i don't ride a horse they scare me. >> even the -- like even the ones that i see over there we went to a great place in london where all the -- >> the ones that you see over there, what like touring the queen in the carriage? what are you talking about >> you are not a tourist you don't go to all the places where we went to the royal something or other anyway, you know, the markets are important obviously. it's a shortened week, but we're going to talk to mark grant. he's a regular that will be good. becky is going to interview him.

katie stockton is going to be on, too. she recently thought we might have a little bit of that consolidation. i thought maybe we had already done it. it seems like she still thinks there might be a little bit more work to do we have super grover coming on not the sesame street guy, grover norquist. we have kevin hasset who is the chairman of the president's council of economic advisers we're going to hear the administration line on a lot of these issues and it's a shortened week we'll see. you don't have the anti-thanksgiving, do you, over there, wilf where you're mad we came over here and became the greatest country in the world after we got rid of you guys it's not like an anti thing. >> definitely, definitely is not. we are thankful to be a part of it and to be here as a britt, very nice indeed. >> i saw, you know, 70 years 70 years i mean, your royal family, they

are -- they're pretty magnificent. did you see those shots? >> i have, indeed. congratulations to her majesty and the duke of edinboro 70 years is nuts. >> what's that >> fantastic. >> it's unbelievable i'm going to do that i've got a little problem since i got married at 43. what would that be 70 years that's -- >> god help zblu god help me. >> i want to be married 70 years. i would be 120 that's possible. >> 70 years is looking unlikely for me, too, joe i haven't even gotten to day one. >> you've got to get started you're not even on dating. >> looking forward to "squawk box" coming up orwi ehal coming up on "wlddexcnge," your week ahead and plenty of data we'll be back in a couple of minutes.

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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." i'm wilfred frost with morgan brennan. the dao dawn 23 points

s&p down 3 points. it comes off of a week of declines the nasdaq managed to eke out a 0.4% gain. joining us is the chief u.s. economist at morgan stanley. good morning. >> good morning. >> bearish signals come from the market that flattening of the curve has that been justified by the data or is the data still pretty impressive >> no, the data is good on the u.s. this flattening is not because we've been getting bad data on the u.s. i think as we continue to price in, you're going to continue to see a flattening of that curve >> and what is your take in terms of how many times the fed raises rates coming into 2018 and beyond >> in december they resume that gradual pace they had been on trier. that's the hike at every other meeting.

december three more times in 2018 we do have inflation inching up over that time i think that's enough for them given that growth is about potential. unemployment is so low financial conditions are easy. that's going to keep faith alive that inflation will eventually reach that so we expect march, june, september they keep marching on in 2018. however, we have been stopping in september and taking stock. at that time you're above a 2% nominal interest rate. you are going to see a very flat yield curve then and it's time to take stock and see how much further they want to push it. >> when do you consider your gdp forecast for next year firstly, when is that? to what extent have you factored in a tax rate cut. >> we're in the 2% camp and that includes the fiscal policy what we're calling tax relief to be delivered in the march/april time frame we'll start to hit more towards

the second half of the year which fits into fiscal year 2019 but on the economic impact of it, it comes more from the personal side. from the corporate side i have very little impact built into the numbers because, one, repatriation, you don't know what that money will go towards. i would argue that corp rates are investing today because it makes sense to invest and they're sitting on plenty of cash they're not -- they haven't been investing because the cash has been trapped over seas i think there's also a lot of misunderstanding about how much cash is over seas, actual cash, not bonds that would be brought back and so i see it as a good thing for a small/medium domestic focused businesses we see them making that in small and midcap stocks. overall i think the impact we get is more on the personal side. >> as we come out of earnings it's been one of if not the worst quarter for hurricanes on record in the u.s. how much is the hurricane sort of rebuilding story factoring

into your numbers for next year? >> so we're just now getting underway in the rebuilding efforts for housing. the replacement of moitor vehicles, that happens in the week after the hurricane passes. on the home building side, not only do we have an industry facing supply constraints for materials and labor, think of how long it takes to claim money and just have insurance adjusters go out and give you an estimate and so oftentimes the home building catchup is lagged and we're just starting to see that start in the october numbers and if you think after -- look back after hurricane katrina, it was eight months of catchup of overbuilding so that can start to stretch residential investment boom from this from q4 across q1 possibly into q2. >> when we consider the global growth outlook, clearly there's been a benefit to the u.s.

economy. does that run out of steam a little bit next year or are you optimistic that there's more to come >> we're still very optimistic on the global cycle. you still have economies that are at different points in their business expansion with central banks. yes, they're starting to ease off the peddle or at least kind of back towards the door with their face still looking at you as they gingerly back towards the door the -- taking very small steps globally and global central bank balance sheets are still rising. in fact, even as the feds have begun to roll off. so we still see impetus for global growth or that impulse coming through and in the u.s. we have started to see this virtuous cycle finally take place. it's an enduring feature of every business expansion that c capex cycles kick in we're seeing that in the u.s. and we're starting to get the better productivity numbers on

the back end of it that is a keenum. >> great stuff lovely to see you. were a pointing to a slightly lower open on wall street this morning. that's it for "worldwide exchange." "squawk box" when we come back

good morning under pressure this morning. futures pointing to a lower opening on wall street we will get you set up for the shortened trading week ahead developing story, talks to former coalition government in germany breaking down putting angela merkel's future in question where is our friend today? plus, let's make a deal. marvell technology reportedly ready to announce a $6 billion acquisition today. the chip market is hot, isn't it it's monday, november 20th, 2017, and "squawk box" begins right now. ♪ ♪

live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq markets set in times square. i'm becky quick with andrew ross sorkin the markets were mixed between major averages this morning some red arrows these aren't hugely significant declines dow futures down s&p off by under 4 points. the nasdaq did end with a positive gainfor the week. overnight in asia let's take a look at this point the market's closed the nikkei ended down by .6 of a percent. hang seng and shanghai were slightly higher. in europe this morning in some of the early trading as we look at the story of the german coalition bid failing, you still see some green arrows