a developing story the justice department calling at&t's deal for time warner illegal and harmful to consumers. fighting back, at&t's ceo randall stevenson is not mincing words, responding to the government's lawsuit >> this defies logic, and it is unprecedented. i've done a lot of deals in my career, but i've never done one where we disagreed with the department of justice so much even on the most basic of facts. >> it's tuesday, november 21, 2017, "worldwide exchange" begins now

♪ good morning welcome to "worldwide exchange." i'm wilfred frost. let's get to the markets quickly. we are higher in the premarket 16 points or so on the dow about 10 or 11 points on the nasdaq s&p up 2 yesterday we did see the s&p and nasdaq up about 0.1% the dow led the charge it was up about 0.3% in terms of trade in europe, broadly mixed. asia is first. sorry. strong seconds ssion in asia. no real data or catalyst, but we are nicely higher. 1.9% for hong kong european trade not as impressive it's a mixed session it's improved, as you can see in the last 20 minutes or so. the dax ended higher yesterday despite angela merkel saying she prefers fresh elections to

governing as a minority leader, which feels like a gamble. the tax is higher today. the markets in general shrugging off the german political developments of the past couple of days. back to the top story. the u.s. justice department filing a lawsuit challenging at&t's proposed acquisition of time warner. leslie picker has the details. good morning >> good morning. the doj officially filing a lawsuit seeking to block at&t's acquisition of time warner the justice department argues this deal would harm competition and thwart innovation. the complaint says the deal would hinder rivals by forcing them to pay hundreds of millions of dollars per year for the right to distribute time warner's networks, which include tbs, tnt and cnn yesterday at&t's ceo, rand tall stevenson declined to say whether the move was politically motivated or not

>> there's been a lot of reporting and speculation about whether this is all about cnn. frankly i don't know nobody should be surprised that the question keeps coming up because we've witnessed such an abrupt change in the application of antitrust law here. but the bottom line is that we cannot and we will not be party to any agreement that would even give the perception of compromising the first amendment protections to the press >> now, challenges to vertical mergers, which involve purchases along the supply chain as opposed to competitors are rare. since 1979, the government has only challenged 23 vertical mergers. three were abandoned by the parties, while the rest were approved the government has never won a single case. if this deal is blocked, it would represent a huge change in the way mergers are treated. >> it is that aspect that it's a vertical merger rather than a horizontal one that i think

leads to randall stevenson's strong response. in the past the justices antitrust chief, he seemed to suggest that because it was a vertical merger this wouldn't be a problem. >> exactly he did say that. he said that in an interview in october of 2016. that's something that at&t is using to beef up his case, that he made his public comments saying that this deal in particular should not face antitrust problems the question is what has changed in a year? for one, he's become sworn in as the anti trust chief but also, you know, he gave a speech last week to the aba where he talked about horizontal versus vertical mergers. and vertical mergers in particular, the behavioral remedies that often come with them to satisfy the government he believes those are not sufficient, that only structural remedies that you see more commonly, those can truly

present anti-competitive behavior >> the other big change has been trump became president people thought that would make this easier to approve that's not the case. thank you very much for that let's continue talking about this topic of the government's anti trust suit against at&t and time warner and the wider ramificati ramifications. joining us is matthew harrigan from buckingham research i guess this particular clash had been reported from various sources in the last couple of weeks. what's your reaction now that we know it's happening? >> it certainly is a degree of politicalzation, but tin the nbc/comcast deal there were questions about how the behavioral remedies worked out over time this would be a seismic shift. this is where the government has

moved -- they blocked this type of deal. deals li but it seems like randall stevenson thinks he can win in front of district court. does this hurt m&a in the broader sector, given the talk we've had recently of the possibility of fox selling assets to sony, verizon, disney or comcast >> i think it certainly does when you inject uncertainty, it's a major distraction running a business these businesses are fragile you have to be sympathetic as large media companies try to compete with these tech companies to have a global reach like a facebook. it's very dampening. anything that has caused

uncertain uncertainty. you have to worry about behavioral considerations. this is something that is fundamental and i thought there was a very good chance this would happen politically nonetheless, it's afodampener fr activity >> how much is priced into this deal already, if it fell away in full could we see significant moves in the stock prices? >> i think the market is jau jaundiced towards media. if it fell apart, would see more pressure certainly the spread now, the market thinks this is in trouble. >> matthew, thank you very much for joining me this morning. >> fcc chairman ajit pye will unveil his plans to roll back

net neutrality rules he will drop rules that prohibit internet service providers from blocking or slowing internet traffic. this would be a big win for the telecom industry and a loss for companies like netflix. back to the broader markets. slight positives for europe and the futures board. let's look at the ten-year treasury note. we saw a pick up in yields yesterday. not so much a change in the shape of the curve, just a broad pick up in yields across the line 2.356 on the ten-year today. yields slipping back the other direction. >> broader markets, oil prices are down about 0.8% yesterday. it was the fourth negative session in five for wti. bouncing back today by 0.6%. 56.8 is the price of wti dollar board, up 0.4%

yesterday. the euro is the real one to watch following the news that german coalition talks have broke down it did end the session down. it yo yoed back and forth. did end down a half percent or so, which allowed the dax and the cac to rally yesterday today it's flat. 117.25 is the price of the euro. not much movement elsewhere on the dollar boards. some stocks to watch shares of urban outfitters are rising in extended trading landon has the details ur beban outfitters posting better than expected results they posted earnings of 41 cents a share compared to 33 cents forecast revenue beating coming in at 893 million. same-store sales a key metric for the industry rising 1% versus the 4.5% decline the street was expecting the ceo attributing the beat to

improve apparel execution across allchannels and brands all three of the firm's brands exceeded by expectations in its free people and anthropology divisions. this as apparel retailers are relying on dichfferent brands t pull them out of the retail slump. abercrombie & fitch fitch posting a rise in its same-store sales for the first time in seven quarters thanks to growth in the hollister brand gap unchanged. aber crop by up slightly ur been outfban outfitters down% in earlytrading. intuit is backing its forecasts for the year and its guidance is in line with estimates. shares of zto express are

slumping today they reported earnings and revenue that fell short of forecasts. agilent technologies with results topping estimates. but the current quarter profit is lower than expected still to come a round up of the global market picture and shares of palo alto networks popping in the premarket, we'll explain why. you're watching "worldwide exchange" on cnbc. [vo] when it comes to investing,

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welcome back october existing home sales are out at 10:00 a.m. eastern. janet yellen will take part in the conversation with mer ving king this evening at nyu. loezwe's, medtronic and campbells soup will be out before the bell. joining me is paul sheers from standard & poors. let's talk about europe. coalition discussions on germany have broken down how long does the government need to be rudder-less as people are describing it before you download your forecast >> i don't think we're looking at a downgrade because of the politics the german economy is part of

the eurozone, and the primary tool for managing the macro economy is ecb monetary policy and that will continue to be supportive of growth so i don't think the issue is so much an immediate knock to growth but i think the big questions are about the future of europe >> on that point, clearly translotran chancellor merkel said she would prefer fresh elections that feels like a gamble does it not? >> well, i don't think there's a lot of good options here politically. you know, germany wants and needs a stable government. at the moment they are having trouble putting that coalition together not a lot of good options, but the bigger point that i would sort of focus on here is this is really putting on hold not just in politics in germany, but the whole process of a deeper european integration and that was supposed to be the story for europe in 2018, we're

still locked into this cycle of more domestic politics >> let's talk about asia, and a resounding sort of recent election, if you want it call it that in china president xi cementing his policy there's been some economic policy changes since then. caused some volatility in the markets. are these good changes for the long-term growth in china? >> one good thing is to have that party congress behind us. that had been a little bit of a wall of uncertainty about what would happen at that party congress now we do see president xi jinping starting off his second term now does the government tilt towards economic reforms and maybe sacrifice on the growth front? i think to the extent that we see the government getting more relaxed about growth may be dipping down a bit, it's not showing signs of doing that at the moment, but to the extent we see signs of the government prioritizing reform process,

looking at some of the debt issues in the economy over the focus on keeping growth in the high sixes, that would be taken quite well by the markets. >> if we switch back to the u.s., we learned last night that janet yellen won't see out her term as a governor it gives the president a chance to fill four of the seven governor spots extraordinary influence on shaping the fed for the future do you think some of the next appointments might be more wildcard than jay powell was for chair? >> i think it is, you're right to focus on this historic opportunity. a lot ofpeople focus on the ability of the president to remake or put his or her stamp on the supreme court for economists, it's the stamp president trump has been able to put on the federal reserve that is the story here. the surprising thing about jay powell was that it was not really surprising. an incumbent, someone seen as a

safe pair of hands will president trump use the owe appointments to make a wilder appointment? possibly very difficult to say. can't look into that crystal ball, but they won't matter as much as the chair appointment did. >> your best case in terms of the shorter term next year for rate hikes is what >> pencilling in three rate hikes next year. >> including one in december >> not including one in december so looking for four and a cumulative total that would depend on the economic trajectory. >> paul, thank you very much for joining us great to see you some more stocks to watch, palo alto networks reporting better than expected results on its strong demand for cybersecurity products, they also raised their full-year guidance. cbs has blacked out its channels for dish network customers. the companies are locked in a dispute over programming fees. dish says cbs rejected its offer to extend current contracts

while negotiations continue. easyjet reported a 17% rise in pretax full-year profits. the low cost airline expects pricing trends to be positive in the first quarter. it's jumped 6% in london trade. still ahead on "worldwide exchange," washington watch. sure there's tax reforms to sell, but president trump will also pardon a turkey this afternoon. we have details on that annual tradition to come. first, here is today's national weather forecast from bonnie schneider. good morning watching out for late effect snow today if you're in upstate new york many of you traveling for business or thanksgiving, one spot to watch is florida wet weather may cause slowdowns or delays from miami to tampa. across the country, we're looking at warmer air for the northeast and the mid-atlantic today. temperatures much milder than

yesterday. we're still having some cold weather to deal with that's in minneapolis and into the northern plains. highs will be in the 20s and 30s. well, that's a look at your business travelers fect.oras more "worldwide exchange" when we come back this is not a cloud. this is a tomato tracked from farm to table on a blockchain, helping keep shoppers safe. this is a financial transaction secure from hacks and threats others can't see. this is a skyscraper whose elevators use iot data and ai to help thousands get to work safely and efficiently.

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it's so much easier so now we're ready, bring on the orders. shipstation. the number one choice of online sellers. go to shipstation.com/tv and get two months free. we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley. welcome back to "worldwide exchange." let's get up to speed on the market action. futures pointing higher. gains yesterday, 0.1% for the nasdaq and -- sorry, the nasdaq

and the s&p. and the dow was up 0.3%. today we're higher, the dow up 30 points. the nasdaq 16. the s&p four points. we did see the dollar off about 0.4% yesterday that came against the euro which started down, recovered, then ended down a half percent based on developments in german politics no clear government being formed coalition talked have broken down chancellor merkel saying she would prefer fresh elections than governing with a minority government the euro calm today as it the broader euro pairings. oil prices slipped 0.8% yesterday. the fourth negative session in five bouncing back today. cbs has suspended charlie rose and pbs is pulling his show this comes after the "washington post" reported eight women accused the tv host of sexual

harassment rose apologized for his behavior while maintaining that some of the allegations are inaccurate to washington news, there will be some light moments at the white house today when two turkeys will receive president trump's thanksgiving pardon. it's the 70th anniversary of this tradition tracie potts has a look at today's agenda, but not with either of the turkeys. good morning the president prepares do his ceremonial duties today, we also got word this morning that tomorrow he'll be speaking with russian president vladimir putin about syria, a country that the u.s. calls a state sponsor of terror the president wants to add another country to that list >> the turkeys have arrived, staying in a luxury d.c. hotel, awaiting a presidential pardon today. but first a major shift in u.s. policy on north korea. >> the united states is designating north korea as a

state sponsor of terrorism should have happened a long time ago. this move makes it easier to impose sanctions >> north korea has repeatedly supported acts of international terrorism including assassinations on foreign soil >> the secretary of state insists it's part of a peaceful pressure campaign. >> we still hope for diplomacy the timing of this is just one of us concluding the process >> before leaving for mar-a-lag for the holiday, president trump is laying out his agenda healthcare, infrastructure e. infrastructu and welfare reform first, taxes senators are concerned that the biggest tax cut in history could swell the deficit and put small businesses at a disadvantage and raise health premiums if the plan gets rid of the mandate to buy insurance. it's all up for discussion with the next vote scheduled after

thanksgiving after thanksgiving they really don't have a lot of time the goal is to try to get that tax bill done by christmas >> has the administration itself made comments about the doj drama with at&t and time warner? are they attempting to stay well clear of that? colorly there l clearly there's implications that this had become politicized. >> we heard some talk about it yesterday, that's something we'll have to follow up on after the break. >> thank you very much for that. still ahead, that at&t decision, the doj decision that the government officially finding a way to block at&t's acquisition of time warnerment. >> and ihop rolling out a new program to bring a hot breakfast right to your door all of that coming up on "worldwide exchange.

the doj filing a lawsuit to block at&t's takeover of time warner we'll have all the details coming up. at&t's ceo randall stevenson is fighting back responding to the government's move. >> this lawsuit has the whole world questioning what they will, can, and cannot do this throws a huge degree of uncertainty to anybody contemplating joint ventures, anybody contemplating m&a.

that's one key concern about this to take suddenly without notice and just upturn 50 years of precedent on a transaction like this can have nothing but a freezing effect on commerce in general. it is tuesday, november 21, 2017, you're watching "worldwide exchange" on cnbc. ♪ good morning warm welcome to "worldwide exchange" on cnbc. much more on that at&t time warner story in a moment first, let's have a quick look at what the markets are doing. they're higher, not too resoundingly 42 points or so for the dow. the nasdaq 21 points the s&p about 6 points yesterday, slight gains for the s&p and nasdaq the dow led the way higher up 0.3% we did see yields tick up fractionally yesterday just ticking down today. ten-year treasury note at

2.356% a strong session in asia no real data to speak of we're up for the hong kong market and decent gains for shanghai and japan european trade which was mixzed about mixed an hour or so a go, has improved we had that development out of germany that coalition talks broke down, but part of the reason for the gains is that did manifest itself with a slightly weaker euro and the exporters are gaining off of that overall markets shrugging off that political development in germany. back to the top story, the u.s. justice department filing a lawsuit challenging at&t's proposed acquisition of time warner leslie picker has the details. good morning >> good morning. the justice department writing in its complaint that at&t and time warner, the deal would harm consumers by lessening

competition. that's largely what the government's argument is about, competition and that warding innovation challenges to vertical mergers are rare vertical mergers are those transacted across the supply chain. in at least four decades the government has not won a single case in blocking a vertical merger at&t's ceo, randall stevenson and his legal team gave an impassioned press conference yesterday. >> the rule of law is at issue here con sis tense in t con ssistency is critical, and confidence that the government will fairly ajude date tdjudica matters before them. when the government discards decades of legal precedent, businesses large and small are left with no guide post. every business combination or

significant investment becomes subject to the whim of a regulator, and as we see here that tends to be the roll of the dice >> at&t said they're prepared to go to trial as quickly as possible >> thank you very much for that. we will continue that discussion the government's antitrust case against at&t-time warner joining us is harry rshfirst frm the nyu school of law. thank you very much for joining me this morning. what is your take on this, particularly with respect to the fact this is a vertical takeover and we have not seen these sorts of challenges for quite some time >> yes, it is vertical we have not seen challenges that have been litigated in court for a while. but that's not to say we have not seen these challenges. the government has challenged

vertical mergers they've been doing it for a little while including comcast's efforts to take over time warner cable. so the difference is those other cases have settled and this one is not settling so, that's a big difference. but it's not just something out of the blue. >> so, if it's not out of the blue, is it something that you think is reasonable to have expected clearly there are accu saig satf politicalization in this case. what's your take on that the politicalization is a problem. in looking at the complaint, you want to first set that aside and see if there's a plausible complaint that the justice department is filing and i think the answer to that is yes the complaint is relatively straightforward and plausible. in some ways that's

conservative it's very much focused on the traditional concerns for antitrust, which is in the end effect on pricing and competition. so, they set out a theory, a theory that if they can prove it should entitle them to win under the law, which is section 7 of the clayton act. >> what does this recent development mean in your eyes for possible further challenges to any other kind of media potential buyouts? lots of talk of fox selling assets do you think this makes those types of sales less likely now >> that's going to be something that fox and whatever buyer there is will have to figure out with their antitrust lawyers the answer is that it shows this administration for whatever reason, and that is a separate question, is willing to challenge vertical mergers and to go through litigation with them. the obama administration was willing to challenge them as

well will been ready to file litigation, as i mentioned comcast's deal which fell apart when litigation was threatened so they were about to go to court it tells parties that section seven of the clayton act is alive and well and they have to think about the competitive effects of their mergers, and they may not have the green lights that they thought they would. >> and just to confirm, the anti trust chief at justice, who there's a sound bite out there of him saying this deal would not be too much of a problem to go through before he was confirmed in his position, who ultimately does he answer to >> well, ultimate we answer to our makers in this case they have to answer to a court if theycan convince

the judge the effects on pricing competition, they will win if they can't, they won't. there are other chances. manufactu he is part of the department of justice, that is part of the trump administration and i have no idea what goes on internally there but immediately they have to answer to a court. and at&t will have to defend its merger in a court of law >> harry, thank you very much for joining us >> thank you let's get back to the broader markets. joining us now is mike holland, chair of holland and company let's not go to the broader markets yet. let's get your view on this particular development last night. which i guess had been expected from various source reporting. but now it's been confirmed. what's your take >> listening to professor first, i'm reminded other people have a lot of knowledge of this area who disagree with him that this is a vertical merger, that it's

unusual that the government is doing what it's doing. we'll know fairly soon the court also decide fairly soon it's in at&t's interests to get this done quickly as possible. i agree with your question of him, the question for the markets, for the media stocks and for the broader market itself we had a big spurt in m&a recently in the month of november should that have a chill from the markets here that would stop this >> i do think there's an imbalance in the market? whether we talk specifically on a dodge case versus a regulator's interest, is there an imbalance what's facing the media companies and the internet companies in terms of the ability toe have to control their broader markets? >> that's interesting. i think the question includes a lot of the m&a activity is caused by the f.a.n.g. stocks.

amazon in particular, they may be scaring the rest of the corporate world it used to be simply the technology area, now everything else. healthcare, retail, so on. so i think your question is the one where the market is grappling with that is will we actually see any kind of lie yehiatus with this activity i don't think we will. this is a force that is moving through the world. whether it's alibaba, tencent, amazon, net flick. so you have the big companies stram scrambling to do things to survive. >> do you like the broader media sector, telecom companies, broader media companies, or is it better to steer clear >> i think you have to be really precise in your analysis i own disney things are changing so rapidly within the companystratosphere,

wherever they're going in different businesses whether it's sports or movies. you have to be -- you get paid to be right. if you're wrong, you lose a lot of money >> wo yuld you like disney to by some of those fox assets >> iger is so smart. so the answer is yes >> if it went the other way and comcast was able to buy some of those assets, including the 33% stake in hulu, would that then threaten your buy case for disney give than they're launching their own online platform, or do you like disney either way >> i like your question because i own comcast. brian roberts is like iger, the reason i own those two is because of the people running them i'm delighted to have them joust

it out >> comcast, of course, the parent company of cnbc more broadly, your view on general markets and valuations at this stage? >> we know and we've talked about it, that valuations are very high. but interest rates are low to the extent we continue to have -- just yesterday we had the new york fed talk about increasing its gdp forecast frofro from 3.2 to 3.6 or 3.7 things are still looking strong corporate-wise and economically. until that changes dramatically, these evaluations probably will stick. >> in terms of your allocation, domestic to international, how is that balance? >> interesting stuff, but things going on in europe now with merkel and i still like europe i have not changed that. i like the u.s. and europe but i like asia too. >> very good, mike mike holland still to come on "worldwide

exchange," the top trending stories including the obama/biden breaux man in the spotlight again. this time it's in honor of the former vp's 75th birthday.

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guidance. shares of urban outfitters are under pressure posting better than expected revenue, sales, but the price is falling this morning down 4%. shares of zto express are slumping today the chinese package delivery company reported earnings and revenues that fell short of forecasts. that's down 6% bitcoin hit another new high the price approached $8,200s before pulling back. the market value of all cryptocurrencies climbed to 24 it billion yesterday look at the rise year-to-date, you can see it's up 745% so that 70 basis point slump today is not too hard to take. landon joins me for the top trending stories >> we have some good ones this morning.

the bromance continues barack obama's birthday wish for joe biden going viral. the former u.s. president celebrating his vice president's 75th birthday with an original people he posted this twitter to photo. me, joe, about halfway through the speech, i will wish you happy birthday biden, it's my birthday! obama, joe he called biden my brother and the best vice president anybody could have this has over 1.3 million likes. >> that relationship is still going on >> the hugging, hand holding >> and he knows his birthday is the point of this? >> yes >> it wouldn't be thanksgiving week without food news ihop is rolling out a new delivery program it will allow users to place to go orders online and add

delivery for now it's only being tested in select cities >> international house of pan cac panwapa pancakes is what i understand it means. >> yes have you been? >> no. >> it's 24 hours >> there we go. >> now we can order delivery for breakfast. >> this is a good point. very nice. >> they're doing this in response to cash ral diual dinig struggling ever go shopping and forget where you parked one man took that to a whole new level. 20 years ago a german man misplaced his volkswagen he assumed it had been stolen but really he forgot where he parked the reportedly stolen car was reported to police back in 1997, and it was found in an industrial building about to be demolished >> wow 20 years >> that's basically my entire

life what do you think happened he was disappointed about the fact that coalition talks broke down and thought i have to go out and look for my old car and he found it? >> police actually contacted him. b but -- >> i was trying to report it to today's news >> and it was not drivable okay don't miss a new episode of "the profit" premiering tonight in tonight's episode we find out what happened after the cameras stopped rolling. here's a preview >> i definitely get choked up when i talk about this business. not because of the money that we're going to make. what i think is crazier for me is they want to take that money

and start an adoption foundation for them, they tell me every single day, every day, this is not an exaggeration, i get a text from geo, i want you to know how grateful. >> thank you you have no idea how much this helped our family. >> that's a big deal for me. >> don't miss "the profit" tonight at 10:00 eastern time and pacific time separately we're approaching the top of the hour, the team is getting ready for"squawk box." joe kernen has a look at what's coming up in new york. >> wilf, what's happening? where is your -- are you solo, my friend? >> you get to have two partners and i'm on my own. >> you want me to stay with you -- >> you have leslie picker there. you have everyone. what have i done wrong >> i don't know. but there's an idea, i mean are we getting -- it's working well, i think. maybe save some money here you want me to stay with you

until 6:00 a.m.? >> i would like that a lot would like me to stay with you throughout three hours of "squawk box. >> no, i got plenty, believe me. i got plenty >> what else is coming up, joe >> what -- this -- what made me feel bad, i know you said you celebrate thanksgiving, but little buddy, you have anywhere to go? is it going to be like this on thanksgiving on thursday night? >> it's not. >> i see you alone now you're not going to long john silver's fish and chips or something alone. what are you -- >> i have plans. i have plans, thank you. >> you do. >> i do. you sure >> i am. >> you look very lonely. okay wilf, we got two big media deals here if you think about it, one is not a deal, but it's all about scale, isn't it? these guys are under a lot of

pressu pressure at&t and time warner would like to do it, you look at fox and everybody circling around those assets one force pushing the things together for scale and perhaps the justice department doing something it really hasn't done before. that's trying to get in between a vertical merger. a lot will be talked about if you're not interested in media, you may have a problem today. unless you want to watch general news, as the -- all the tabloids here are calling it pervnato the pervnato continues to swirl around unbelievable these big names. >> it is thank you very much. we look forward to "squawk box" in nine minutes time. rngscoming up, the fed data and eain taking center taj tode inie

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welcome back to "worldwide exchange." joining me now is the equity strategist from open h n oppenh funds. we learned that janet yellen will not be staying on to see her time as governor what is you'r take on that and the ability it gives the president to shapethe future o the fed. >> i don't think we're staring at monetary policy regime change, which is encouraging as investors, and offering stability for markets. but the idea that yellen is stepping down and not staying on, i think, is nothing major to read into. it's just a matter of tradition that most past fed heads have done >> let's ask about the time warner-at&t department of justice developments does this

worry you about the broader deregulatory environments that we are in? that no more m&as will take place and companies will be put off? >> perhaps that is one example of a risk to deregulation tone in markets look, i think the broader question is does a healthy market environment set the pace or tone for m&a or does m&a set the pace or tone for markets i think it's the former not the latter i think things are looking good her here >> are you concerned about the lack of the german government forming a strong coalition in terms of the buy case for europe >> that's potentially a near-term setback for europe as a macro fundamentalist i like to think given above expected economic outcomes in europe that merkel will again win if she

does choose to hold another round of federal elections >> in terms of your preference for international exposure versus u.s. exposure, somewhere your balance >> we're still very much embracing international equities over domestic equities, it's all predicated on these pre-existing conditions of strong global growth, low inflation, and a very clear monetary policy outlook as well as attractive valuations >> stateside, sector preference is where >> i think in the u.s. you have to have more of a cyclical bias to minimize your exposure to subpar economic outcomes at home, and better than expected outcomes abroad. >> tally, thank you very much for joining me this morning. futures are pointing to a slightly positive open coming off gains yesterday. slight gains yesterday and slight gains in the futures market we have big gains in asia and an

improving picture in europe. half a percent of gains for the dax and the cac in france. that's it for "worldwide exchange." squ "squawk box" is coming up 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

the justice department calling at&t's deal for time warner illegal and harmful to consumers. at&t's ceo randall stevenson is fighting back. >> this defies logic, and it is unprecedented. >> full analysis straight ahead. lowe's set to report we'll brick you the numbers and reaction from wall street. plus flying private for the holidays we'll talk travel trends for the 1% i would say 0.1% is more

accurate with the chairman of vista jet, it's tuesday, november 21, 2017, "squawk box" begins right now ♪ live from new york where business never sleeps, this is "squawk box. ♪ >> good morning. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. let's look at the u.s. equity futures. yesterday the markets closed higher this morning there are green arrows indicating a higher open again. dow up by 50 points. s&p up by 26 1/2 and the nasdaq up by 25 in japan, the nikkei gained about 150