that's all happening. and another record cybermonday being the biggest in u.s. history us tuesday, november 28, 2017, "squawk box" begins now. ♪ ♪ live from new york where business never sleeps, this is "squawk box. that's a way of doing things good morning welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. let's look at the u.s. equity futures. so far things are pointed in a positive direction with the dow futures indicated to open up by 35 points. s&p up by 3. the nasdaq up by 7 yesterday we saw the dow, the s&p 500, the nasdaq setting record intraday highs before they faded as we got to the close. the s&p 500 was down for the second time in three sessions the nasdaq lower for the first time in five sessions.

let's see what happened overnight in asia. the flnikkeiclosed down. hang seng down by 5 points the shanghai composite up by a third of a percentage point. in europe in some early trading, looks like the dax is up by a third of a percentage point. the cac is up bay half py a half percentage point finally check out crude oil prices crude oil yesterday down by 1.4% on some questions about u.s. supply and also doubts about whether russia is going to be cutting output whether it will stick with that. this morning down 1% >> couple big stories we're watching japan's softbank offering to purchase shares of uber at a valuation of only $28 billio 4$. that's a huge drop of the most

recent valuation of $68 billion. uber's board approved the investment in october. it would expand the board and cut the influence of founder travis kalanick. big question about whether people will tend near this offer. the consortium is led by softbank, and they plan to take a stake of 14% in uber if they don't get it at this price, they could walk there's been a threat they'll invest in lyft instead what was the last valuation? was it 70 billion? >> 68 billion. so 30% discount. so a lot of questions about whether people will -- >> will tender their shares. >> by the way, if uber doesn't get this money, then it raises all sorts of other questions >> about the valuation any way, right? >> not just about the valuation, but they use this capital to

operate the business still a money losing business. they need this capital it will raise additional questions >> about where the funding will come from. >> you're an uber, too what are you >> like a #metoo >> no. you don't watch curb your enthusiasm he says he's uber 2. >> i wasn't blaming myself i'm -- >> your kids >> nosh, i wasn't proud of it i think i was 4.2. where do you find it in settings? >> i don't have the app. >> i think it was 4.2. >> i'm amazed. there's an uber wherever you are. it's cool. i'm just getting into the lingo. >> i've been playing on lyft recently >> because you got a 2 rating on uber >> er in certain instances

sometimes you can arbitrage the cars >> that's wh lower rating >> canceling a car does not lower your rating. the state of illinois and chicago filed a joint lawsuit against uber alleging consumer fraud and deceptive business practices. the suit is related to uber's failure to release information on a data breach about drivers and riders several u.s. senators wrote a letter to uber's ceo yesterday calling for him to answer questions about the company's handling of that data breach. wells fargo reportedly overcharged hundreds of business customers on currency trades "wall street journal" reporting an internal review that found out about 300 fee arrangements, and only 35 companies paid the price they were quoted

wells fargo employees got bonuses based on how much money they generated the scheme relied on customers not double checking how much they were charged. federal prosecutors reportedly opened an investigation and four employees were fired >> there's no end to the disclosures. >> the idea that the culture of wells fargo was ever somehow this, you know, beautiful bastion of anything has been completely undone and upended by all of this. >> i think as buffet pointed out, there's never one cockroach in the kitchen we're seeing more and more of these issues >> i wonder if there is -- never has that happened? maybe just one sneaks in i don't know cybermonday was the biggest in u.s. history. the numbers that we talk about in terms of gains, it would be the envy of any business according to adobe, online sales

topped 6$6.5 billion, that was u 17% from last year, which was up from the previous year the big sellers, the nintendo switch, hatchables, sounds like animals that might hatch >> very cool >> you know what they are. >> we may have some. >> lol surprise. >> that i don't know >> were among the top selling cyb cybermonday sales. >> next year it might be rotflmao >> in washington news, the fight over control for the consumer financial protection bureau intenseified yesterday.

mick mulvaney imposed a hiring freeze, and he is being sued by leandra english. the president has the right to nominate a permanent director, but there are dueling claims over who gets to name the acting director a couple of pieces in the journal, both are funny. william mcgern says william mulvaney is the true pope. and the lead editorial is lee understand dra costanza. democrats pretend the cfpb is its own branch of government >> it was set up to be like that >> they made a tactical mistake yesterday, sorkin. that is -- >> not showing up with doughnuts? >> exactly if you want sorkin to back you,

you will bring in -- please listen don't lock at thaok at that if you are bringing in a big thing of dunkin' donuts, you know who you get >> you know i can be sold for doughnuts. >> even though it's a republican, you would be with mulvaney >> the alt mat viernate viewpoi the democrats have won by raising the fight to this level, that they would never have the full-time director any way, that trump could come in and appoint the full time director, but by raising the stakes and getting their base fired up about this, they have won. >> you remember george would be there. the guy that fired him they would be having this meeting in the conference room, there he would be. what are you doing you're fired that's what is happening i can't believe i didn't think about that yesterday everything is relatable to a

certain extent -- it's ridiculous >> the reason i was looking at the phone. >> yeah. >> i undersold myself. >> you're a 4.4 -- >> 4.42. >> not bad out of 5. >> i'm surprised you're has high i am i rank you lower than that as a co-anchor. >> yes >> can we rate each other every day? that would be something. >> that's fine >> okay. >> dueling ban joeanjos. >> you want to do that you already skipped khosrowshahi's name. >> dara's name >> you already skipped it. >> you want to do that >> we can. >> republican leaders in the senate are hoping for a vote on tax reform by thursday, some key holdouts are trying to get some

key last-minute things added to the bill >> senator ron onsjohnson told c news yesterday that he thinks republicans want to get to yes >> there's a lot of activity, a lot of discussions i'm encouraged by how open everybody is we need more information we need to pass pro growth tax reform >> steve daines said they need to make sure small businesses are not at a disadvantage. and corker said he needs to make sure there's not a raise in the deficit. president trump will head to capitol hill today for lunch with the senators.

this comes before a preliminary vote in the budget committee this afternoon which would officially bring the tax bill to the floor of the senate. both ron johnson and bob corker are on that committee, and both say they're willing to block the bill if they're not satisfied with the negotiations so far i will be on the hill all day. we'll keep you guys posted on what happens >> thank you we will be talking to senator bob corker at 8:40 a.m at 9:40 a.m., kevin brady will join the gang on "squawk on the street." on the wall street agenda the s&p case-shiller home price index is out at 9:00 a.m. eastern time followed by november consumer confidence at 10:00 a.m. in washington, the senate banking committee will hold a hearing on the nomination of jay powell to be the next fed chair. for more on the markets, joining us is andres garcia maya, and

covering the economic angle is ian shepherdson. gentlemen, welcome let's start off talking about the tax bill that is what businesses are watching so closely, what we're watching in washington today what do you think the market is anticipating here? we could see a quick vote that goes through the senate committee today and then potentially passing by the end of the week but we might not. >> if you look at what the market is telling you, i look at the dollar when i think about tax reform we have not seen a rally in the dally. to a certain extent the optimism has died down. there's some baked in possibility of this going through. now there would be more of an upside surprise if it goes through. >> not necessarily a selloff, particularly if things don't move quickly >> every day that goes by that things don't happen, the more the market is expecting something not to occur

the dollar is telling us that and the ten-year yield is telling us that. >> ian, in terms of what you anticipate happening, what you would like to see, what would you like to see? >> not in the u.s. house or senate i'm not sure the u.s. needs any tax cuts now with the budget deficit adding 1.5 trillion and cutting taxes when unemployment is where it is, i think the timing is all wrong. if this was three years ago, with unemployment at 6%, 7%, i would say go for it, do something. i'm not sure we need anything. >> what about the corporate side both sides of the aisle have been saying our tax system is out of whack with the rest of the globe. we need to make our businesses more competitive >> if you look at the tack rates companies pay, u.s. corporate taxes are less than 20%. the headline rate is very high, but some deductions, so many

loopholes. >> do you have business paying 32%, 34% if you could find a way of broadening that out and maybe making it fairer across the board. >> absolutely. there's always things that can be improved. no business should be paying that high of a rate when the average is the low 20s or below. it's like a sledgehammer to crack a nut. there's an issue, but it's not business taxes across the board. the average rate that u.s. business pay is not higher >> what do you think ultimately happens? do you think this will get passed >> i think there will be something. i would be surprised if the whole lot goes through i think there's something. i would be amazed if we're sitting here in january saying they couldn't get anything done. isn't that amazing that would be surprising to me the details, how the bills get reconcil reconciled, it's like predicting the outcome of herding cattle, you don't know it makes them throw their hands up and say we'll raise rates

faster we don't want more down award pressure on the unemployment rate heading to 3 now. >> if the fed raises rates faster than anticipated, the market seems like it's pricing in action this year and next year >> that is my biggest fear in the sense of offset surprise to rates, the result of inflation not just here, but global inflation is starting to pick up if you look at europe, asia, to a certain extent here. if that were to occur, i don't think it's only the fed that might have to become more hawkish but also the ecb the ecb is what is basically forcing global rates to -- >> down. >> to have downward pressure that, i think, would be a pretty big shift in rates around the world, which would have unintended consequences. what would that mean for our markets, if it's not just us raising rates, if everybody starts to raise rates, are we

still the best house in the neighborhood >> it depends if they're raising rates because both inflation and global economic growth are picking up, i think equities could still do okay here and potentially better abroad. if they're raising rates because inflation is moving up, economic growth starts to stall that would not be the most ideal scenario i believe that if inflation does continue to pick up is because global economy, that momentum we've seen continues and that would be positive for equities, not necessarily positive for rates. >> you're telling people to buy equities here. >> i prefer international, especially emerging markets from a relative valuation they're no longer cheap, but from a relative valuation standpoint, they look more attractive than the u.s. markets. >> coming up, a bold call on bitcoin from a well known hedge fund manager another analyst raising a red flag on the cryptocurrency details next cannot live without it.

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former fortress hedge fund manager michael novogratz making a bold call on bitcoin >> bitcoin could be at 40,000 at end of 2018. easily could and i think ethereum which just touched 500 or getting close could be triple where it is. >> novogratz is starting a 5$500 million fund to invest in cryptocurrency bitcoin coming up on 10,000. $9,882.51. >> i think the dow hit 10,000 when those two guys said 40,000, remember that? >> yes >> who were those two guys one was jim glassman >> yeah. >> i can't remember the other guy. we had a great run that was not to be then.

maybe 23,000 now >> if you're starting a fund now. great time to be bullish >> can i get in? is it too late if it's going to 40,000, i want to buy some of his stuff >> that sounds like a good idea. >> crazy not idea. >> it would have been a better idea if they started two years ago or nine months ago >> you got $25 worth did you check into that? >> it's coin base somewhere. coin base is the app i have it on >> you can't find it. >> i haven't spent a lot of time trying to find it. >> that worries me have you done more research on putting out a hit on someone where it can't be traced back to you? >> no. that's in a book >> you told me about that. there's no way to trace it back. >> people are trading hit lists and things with this >> they get paid, there's no way to trace it back

>> there's no information that anyone has done this yet >> you can't truck it. >> i have people start my car when i leave here now. >> do you? >> yeah. tasting my food, everything else >> interesting you're looking at me >> i am looking at you i know you own bitcoin >> you keep giving me lower star ratings for my performance >> that's not me, that's uber. one researcher sounding the alarm on bitcoin the search term buy bitcoin with credit card is at a historic peak he takes the use of leverage to get in on bitcoin as a cautious note it accounts for 3% of all google searches the entire cast of "jersey shore" is being reunited minus sami sweetheart. this is for jersey shore family

vacation the new series will premiere next year. i never really -- i never got into that. >> no. >> you would be hampton shore. that would be your -- >> i loved the real world. remember that. >> on mtv? >> yeah. >> i still think -- >> that was a great show real world seattle anyone remember that years ago >> no. >> i think big brother -- >> i never got into big brother. >> she's married to les, isn't she? that show may never be canceled. do they keep -- julie chen >> host of the show. >> it's on cbs so -- like "survivor" 400. still eating worms >> no, that is gone. the eating worms one not on "survivor." >> what was the one we did >> fear factor >> that's the one. >> i don't know. >> it looks like you can now actually turn water into wine.

soda stream debuting a sparkling gold drink mix, an alcoholic concentrate, you can add it to your bottle. each bottle of the mix makes 12 glasses of wine. so you could use it to make three glasses. >> so upsetting. i had a friend who had an idea about trying to create a company like this. we had a whole dinner over it. creating a dinner-lisoda streame thing for alcohol. >> do you think they overheard that people say that all the time can you believe i had this idea. and now they're making it. >> there's a seinfeld about that that i came up with the -- i invented the turkey salad, or the term mother of all that was mine. you know that, right >> mother of all >> mother of all whatever. that was mine. >> yeah. >> not really. >> no. when we come back, black friday and cybermonday are over.

we have a report card of the biggest winners and losers in that sector. we will take you inside the u.p.s. world port husbab in louisville, kentucky as those gifts begin to ship. and scott earnest will join us first on cnbc first a quick look at yesterday's s&p 500 winners and losers us. it's what this country is made of. but right now,

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♪ welcome back you're watching "squawk box" live from the nasdaq market site in times square. good morning u.s. equity futures are up again this morning last we looked, 35, 40 points. 42 now that was weird, did you see it the board was skewed a bit i saw it quickly took it down up about 42 points on the dow. stocks to watch, united health issued guidance for 2018 ahead of its analysts day. the company expects earnings growth of 8.5%, consistent with united health's warning about the impact of the health insurance tax that is set to return next year that's hurting the dow today if we're up 45 or 42, with that down 3, there's other stocks that are picking up the slack in the dow. royal dutch shell will start paying its dividend only in

cash they are scrapping a program that gives share holders the option to receive dividends in the form of discounted stock or what's known as a scrip. toyota named the new chief financial officer. the prove sus evious executive t seven months in the organization toyota expects a modest increase in profit next year due to a weaker yen. >> black friday and cybermonday are in the books joining us now is courtney reg within a retail report card. it's been a busy few days. >> it has been a busy few days we don't have the final numbers yet for cybermonday. it looks like it's going down in the history books. adobe projects u.s. online sales hit 6.59 billion, a 16.8% increase over last year, making

it the biggest online sales day in u.s. history. adoeb expected the last three hours in the time zone to be peak time. the cybermonday record is in addition to a record $13 billio over the weekend online from thanksgiving to sunday that's 14% higher than last year some best sellers on cybermonday were google chromecast, ipads, sony play station vr, hatchables we have not heard much from retailers, throughout the day on cybermonday consumers were researching the most for amazon followed by target and walmart third or fourth in those search results. much like the rest of the year's two retail race, dan ives thinks amazon and walmart likely won the day. >> we expect to see big numbers.

i guess the question becomes when do you see the dim finiinig returns. >> it's mind boggling to think 15%, maybe 20% during the holiday are sales online that's where you see huge growth numbers online over the weekend the shopper track numbers said, you know what, traffic was down about 1%. the year before it was flat. maybe we're starting for that holiday weekend to find an equilibrium between what is appropriate spending online versus going to stores >> a lot more on mobile, too >> you still only have about a third of consumers checking out on mobile. there's some browsing, pre-shopping, still a bit of hesitation when it comes to following through. >> it's harder it's harder to read. >> it is harder. forrester's says watch out, make

sure you're maximizing your desktop experience a decent amount are checking out there. >> the reason everyone uses prime, it has your credit card and everyone in it because my phone has my credit card and i have this face i.d. thing, i would not every store i go to, can i not be like boom >> you have to type in your address. >> this is what i'm saying if it's already in the phone -- >> like with the apple pay >> the apple pay should pay for everything in a cab now, you can go boom, boom. i'm off. >> in a what >> i'm off, i'm in a cab i go click, click, i walk out of cabs >> you're in cabs? uber, lyft and cabs? >> can you believe that? >> a renaissance man >> and you have a driver and a car now. >> all of these things >> thanks, courtney.

>> that's really blue. >> it is really blue becky is also blue >> i have a blue tie is that blue >> some blue in there. >> good job today. when those billions of dollars of retail orders are filled, they will be shipped out all over the company u.p.s. is kicking into high gear for the peak holiday season. morgan brennan joins us from world port u.p.s that's the largest air hub, it's in louisville. louisville louisville, kentucky, right? >> yes >> have you practiced that >> you said that so well >> louisville. so look at this. this is a boeing 747 400 this is on stand-by. it's ready to be deployed as the peak shipping season ramps up. u.p.s. has 18 planes, jets on stand-by ready at a moment's notice that are located here at

world port and other locations around the world those are crucial, especially during this time of year since there's little room of delay with a network already pushing to capacity, getting holiday gifts under the tree u.p.s. expects another record peak season. 750 million packages delivered between now and year's end 5% more than last year and 42% more than just five years ago. u.p.s. has been investing billions of dollars to expand its network. this year it rolled out saturday delivery and it has hired 90,000 seasonal workers it has taken delivery of two new boeing 747 eight jumbo jets. a third is on its way. meteorologists are monitoring weather 24/7 monday through friday there's a con ttingency group working around-the-clock in case more planes need to be brought in or packages rerouted. u.p.s. says it has been

preparing for these couple of weeks all year long and it is betting that all of those investment also pay off. >> yeah. thanks, morgan morgan brennan in louisville louisville, kentucky what's coming up, sorkin this is you. >> a prize winning economist you know who's coming? >> i do. >> you have to be exciteded about this >> he's not a big euro fan >> joseph stiglitz will be here. he'll release a new edition to two of his books we'll spend some time with him maybe some fireworks at the table. >> i'm tired and tom friedman will spend some time with us. he'll join us at 8:00 a.m. eastern time, talking foreign policy and politics. he just got back from saudi arabia we'll talk about what's going on over there. and a key vote on tax reform senator bob corker will talk to us about whether changes to the

bill will be enough to guarantee his support. you'll get all of that here on q "squawk box" on cnbc i' right. so who sent you? new guy. what new guy? watson. my analysis of sensor and maintenance data indicates elevator 3 will malfunction in 2 days. there you go. you still need a pass. there you go. i just finished months of chemo. but i don't want to talk about months. i want to talk about years. treatments have gotten better, so... i'm hoping for good years ahead. that's thanks to research funded by the american cancer society. the same folks giving me free rides to treatment, insurance advice,and a place to stay during chemo. i need that stuff like you don't know.

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fedex is investing in a new transportation fleet the company recently signed on as the launch customer for an order of up to 100 new aircraft developed by textron aviation. joining us now to discuss the new model and the future of express transportation, scott earnest, ceo of textron aviation this new plane is a turboprop. we call turboprops jets? not specifically >> not specifically. we designate turboprops specifically to their fuel efficiency and the jets are a bit faster and have the -- >> jets are. the turboprop will go maximum number of miles normally is under 1,000 nautical miles, isn't it >> yeah. somewhere, 1200.

yeah >> we know about turboprops because the king air you make and one of our friends of the show, kenny dichter who has wheelsup, he is trying to bring aviation to kipeople by using t kingair. >> it is a large twin utility it can handle three large containers when you think about the whole supply chain of distribution of packages, with cybermonday yesterday, those packages have to get to each home and fedex is going to use this product as the ability to kind of connect their large jets to their distribution networks with this sky courier that we developed. >> and there's also a passenger version. you said it holds up to 19 people >> right >> that would be for short hauls

for -- >> all over the world. we're seeing great demand for our smaller version of the caravan, and obviously we look at this as just another opportunity. >> this is going to what size airport? >> so, the sky courier can land on a grass field we can go to any type of airport, anywhere in the world >> you think hamptons for the summer you have a grass field >> there's a very short runway, at st. bart's, for example >> right >> the aspen airport is complicated. >> you can't help yourself that's a new jet this is our newest -- >> i hope people know i'm joking some people may not appreciate the humor. >> in every joke, as you know, there's a grain of -- any way. that's a -- this is a longitude. >> that's a longitude. >> you also make a latitude cessna >> netjets purchased 50 of them so far they are looking to add another.

>> those are more fuel efficient? >> absolutely. it's flat floor, stand up cabin. this is the new variant of the latitude it goes further, faster, and quietest cabin in the industry >> let's get back to the idea of fedex buying these and the demand you must be seeing with so many people shopping online, so many more pack canages gettig delivered. is that a boom for your industry >> we see the freight industry doubling in the next 15 years. we are investing in that market. we have not only the new sky courier, but also a single engine turboprop called a denali that will be available to do freight. >> we know amazon tried to build up some of it's own infrastructure, doing a lot of that last mile i don't know they're doing this type of stuff yet. do you see them as a potential put picture customer as well >> absolutely.

anybody moving freight, this sky courier we designed is set up for freight at the most economical per mile basis. >> so, third quarter with all the positive things happening, there's some issues. can you go into that you missed expectations, textron aviation did for third quarter revenue and earnings per share where are the headwinds? there's a lot to of pstiositive things, but these are very specific details that caused this what happened? >> i would say we're continuing to reinvest back into the products specifically to textron aviation, we have been focused on a new military jet we're working on a scorpion. we're self-funding that so we're investing several million dollars into this product to be able to offer that to the u.s. military >> that's part of it there's something here about --

okay lower used aircraft inventories at this point have not resulted in a firming of used aircraft pricing. that would help for -- does that affect results the use aircraft affects how much you sell the new aircraft which is it? you do both? >> we sell used aircraft typically we will purchase an aircraft from a customer, upgrade them to a fnew aircraft as those residual values go up, the difference between that and the new aircraft is good for them >> so, you do sell used aircraft >> that's what i'm thinking. we should get a squawk plane >> i agree maybe -- i don't think we can do more than a turboprop though but that's a fantasy we're dreaming we love talking about it >> something about aviation. what is it >> it is so a used king air turboprop,

could you get one for $2 million? >> absolutely. >> you could >> yeah. >> but then you need two pilots. >> you need two pilots probably three how many pilots do you need to keep on staff to keep this whole thing rolling? >> i think you could easily handle it with two pilots. >> yeah. >> three of us, $2 million, two pilots >>ky provide the pilots. >> i'm out what do you mean you're out? we can't do it >> do we want somebody to do, like, food service and other things on the plane? >> i don't think we're going to have food. we can have booth roocan have a. is there a bathroom? >> oh, yes >> we're dreaming. all these guys in. >> they're in from teterboro >> and we're not >> i can help you. >> hope springs eternal. >> i'm precheck on tsa >> you are that's as good as it is going to get for any of us. you have the global thing,

right, when you come in? >> global entry. >> global entry. >> that's as good as it gets >> thank you when we come back, today is giving tuesday but charities across the country are keenly focused on washington today, specifically the tax reform proposals that could have a chilling effect on giving. more on that story next. right now as we head to break, a quick check of what's happening no the european markets w. ye grown a green arrows across the board. who could possibly be against that? well, the national debt is $20 trillion. as we keep adding to it, guess who pays the bill? him. and her. and her. congress, we should grow the economy. not the debt. ♪

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zbliefrmgt today marks giving tuesday. this one matters one of the biggest days of the year for charitable donations. the average charitable gift today has been $142, but the gop tax reform bill will slash the number of people that itemize their deductions, and that will have a chilling affect on giving some estimates say the charitable giving could drop by $13 billion. joining us to talk about that and so much more national council of nonprofits president and ceo tim delanie. good morning to you. >> good morning to you thanks for having me >> happy giving tuesday. i hope we all give today let's talk about the tax bill and the implications how worried are you about it >> extremely worried what is being proposed is drastic in terms of the impact on the work of charitable nonprofits across the country.

>> and when you think about the giving issue writ large, how much do you think -- when people donate money and at what level do you think that the tax piece of it, the deductibility piece of it comes into play for people >> well, it's huge certainly americans want to give, and they've been generous, and they've been generous, in part, because of the incentive that is created in the tax code 100 years ago this year. a century old public policy is encouraged giving. that's allowed us to have this fabric in america of giving to support our local communities. it's been a fantastic policy it's proven to work. the challenge right now is the proposals in congress that are going through at break neck speed and some would say even recklessly, will have a debilitating effect it would take a network of so many individuals that itemize

and that are incentiveized to give more to their local communities. >> if you think about the -- if the average gift is $142 -- i don't know if i'm speaking out by saying this -- i'm not sure at that price point -- i don't know i don't know how much of a tax piece from a psychological perspective enters into the decision making on the donation. am i wrong on that >> actually, studies show that it does have a very large impact certainly people want to give, but they are incentiveized through the charitable giving deduction. if you look, while the average, actually the average on giving tuesday is $142. if you look at the average contribution the last two days of the year, it's over $220. that shows us that there is an incentive, and also having that window or that hard stop of

december 31st, it helps those who are procrastinators to go ahead and give what is being proposed right now, though, is place the charitable giving incentive out of reach of 95% of americans 95% of americans would no longer have an incentive to give, and as you said, the experts are projecting that that will take anywhere from $13 billion to $20 billion away from the work of charitable nonprofits. they are also predicting that it will take away 220,000 to 240,000 nonprofit jobs this is supposed to be a jobs bill to create jobs. they're going to be taking away almost a quarter of a million jobs from nonprofits >> while i have you heerks i want to ask you, i find it concerning, but i don't know if it's a philosophical issue if you looked at corporate giving over the past decade, it has come down remarkably company matching programs have been eliminated, and i was

curious, given the role that you have, what you think that's a function of and, the reason i say this, it's a fif sof cal question there's some people that believe a company is there to make profits, and the individual is one who should be giving the money away there are others who think that companies should also -- should be doing corporate giving, though some people think of that as marketing. >> markedly so there are many generous companies in the local communities who support their local united way or their local y or their local food bank we need to praise them less than 1% of all of our revenue comes from corporate foundations and corporate gifts. it's real important to have those gifts coming into the nonprofits to get the work done because without that money, the services that so many people

rely upon cannot be delivered. >> we want to thank you. we want to encourage everybody to give a little bit on this giving tuesday, and we thank you for your time. >> thank you very much appreciate it. >> you bet coming up, nobel prize winning economist joseph stiglets joins us next he is releasing new editions of two of his books this morning. later, we'll talk about the prospects of tax reform with republican senator bob corker. also, that gentleman right there will be on tom friedman

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take your shot at the hamilton pose, donate to help us find a cure, and lastly, share it on social media. this is our shot to take. learn more at: myshotatepilepsy.org >> today is the day. big one in washington as the

president talks tax reform and jake powell heads to the hill. >> japan's soft bank wants to share sells of uber at a 30% discount the move would put limits on power and expand the board full details are straight ahead. a new study showing signs of promises the second hour of "squawk box" begins right now welcome back to "squawk box" here on cnbc we are live from the nasdaq

market site? times square i'm becky quick along with joe kernan and andrew ross sorkin. yesterday we saw the major averages hit new highs during the trading session and give back some at the close you can see right now there are green arrows indicating a higher open once again this morning dow futures indicated up by 47 points looks like the s&p would open up by about 4.5 points here, and the nasdaq up by just about 10.5 points here's what's making headlines at this hour fed governor jay powell will be heading to capitol hill this morning. powell, who is prurp's nominee to succeed janet yellen as the fed chair, will have a confirmation hearing before the senate banking company when powell was confirmed to serve on the fed back in 2012, he received broad bipartisan support. an official announced is expected today, and then we'll

see if shareholders actually tender their shares for that also, buffalo wild wings is reportedly on the receiving end of an approved takeover offer. roaric capital is said to have sweeterned its $150 bid a share bid to $157 a share. that would make the deal worth about $2.4 billion rork already owns restaurant chain arby's emerson electric, officially withdrawal its bid to buy' '''''''''''''' rockwell automation they had been resisting the bid. emerson says it has now decided withdraw the proposal entirely because rockwell had refused to engage in discussions about that offer. you're looking at rockwell now down 2% in the market this morning. the expectation had been, of course, if there wasn't a transaction to be had, at least at that price, but we will see whether this is part of a larger dance, negotiation, or perhaps this really is the end of this saga at least for now.

united health 2018 ahead of its analyst day today. the earnings growth up to 8.5% analysts say that's consistent with united health care's warning on its third quarter earnings call about the impact of health insurance, tax, that's set to. >> yesterday former fortress hedge fund manager michael novogratz whol just started a crypto currency fund making this bold call about it >> bitcoin could be at $40,000 at the end of 2018 easily it could. i think ethereum is getting close. could be triple as well.

>> prince all walid -- jaime dimen said it's similar, a fraud. then people on the other side, there's an argument to make. people were talking about their book in different cases, but we should tell you we're going to be speaking to the c ceo much circle about the price of bitcoin and the rise of crypto currencies the company is a provider of peer to peer lending in that space station. >> what does that even mean? >> peer to peer lending in the bitcoin space? >> there's a whole lending phenomenon that's taking place among crypto currencies and that's what circle -- we'll talk more about it in a little bit. >> yeah. >> i read your little -- i was not sure i understood. >> he is a great entrepreneur, by the way he has done some really interesting things we'll talk to him in a little bit. cyber monday was historic. biggest ever adobe reports that on-line sales topped $6.5 billion yesterday. it was up nearly 17% from last year the big items, the nintendo switch i know what that is. hatchimals, which becky knows

what that is >> they are mixed animals that break out -- they actually hatch out of a shell >> okay. >> like a giraffe and a dragon a diraffe. >> i believe that giraffes are live born, aren't they they're not hactched. >> every animal is mixed with a bird, which is why they hatch out of an egg. >> mixed with birds. interesting. like dinosaurs >> yes >> what's an lol surprise? >> no idea >> that was the top selling cyber -- those three top selling seeber monday items. lol surprise >> i don't know. if i got an e-mail that said that, i wouldn't click on it >> because it could be -- >> like a virus. >> okay. let's bring in our special guest this morning columbia university professor and nobel laureate joseph stiglets he has a revisited version of globalization and its discontents, and the paperback

version of the euro, and professor, thank you for being here today >> nice to be here >> two book out in one day a lot has changed since you wrote the first book "globalization and its discontents" back in 2001. "the euro" was just out in the months after brexit. why new versions of the book right now be, and what's changed since? >> the big book is "globalization and its discontents revisited. i wrote the original version back in 2002 i thought it was unfair to the developing countries, particularly the poorest developing country, and here comes along president trump and says globalization is unfair to the united states. you know, how do you reconcile these two views? another thing that i was sort of

concerned with is he has been very critical of our trade agreements he said nafta is the worst deal ever, and our trade negotiators got snookered. i have watched these trade agreements for 30 years, and the idea that our trade negotiators got snook ered by some trade minister from mexico or uganda is absurd. >> let's talk about some of these issues because you definitely have feelings in the united states among a certain class of workers that they have, indeed, been snookered, they've lost their jobs, and it's because of these trade deals, and that's, in part, why president trump was elected. >> that's right. the question was were we snookeed or did our trade negotiators get what they wanted, but what they wanted was the wrong thing?

>> we wanted a deal that benefitted the associations. we wanted a deal that drove down wages. that's why workers are unhappy we wanted to make it easier for corporations to invest their broad and then bring the goods back to the united states, weakening bargaining power of workers, and part of the process by which wages get driven down when i say we, the corporations were driving these trade deals and wanted exactly what happened now we've got -- >> that's not entirely different from what donald trump was saying when he was stumping and going -- if you listen to some of the trade negotiators or the commerce secretary, wilbur ross, they'll say they don't think some corporations got a fair shake on some of the things. if you listen to donald trump himself, he has said all along that he doesn't think the american worker has gotern a fair deal. >> the real question is how would these trade deals and other aspects of our economic policy determine like now we're talking about a

tax "so-called" reform same deal. it is a deal which will lower taxes of corporations and increase taxes of americans under $5,000 >> you're talking about over the ten-year life span when things sunset in the senate bill? is. >> that's not a tax reform that's addressing america's major problem, which is global inequality the fact that people in the median income has been stagnated. these are the people whose taxes are going up the people -- this small group of people doing well, their taxes are going down our economic agenda, more broadly, that's really what the thesis is, our economic agenda, has been driven by corporations, and if you look at the trump economic agenda, taking away health insurance from 20 million americans and that's buried.

a lot of this is buried in the tax bill, by the way, that they are taking away the -- >> they're taking away the individual mandate that requires people to go ahead and pay for that and as a result, they will save the federal subsidies >> that will start unraveling the whole health care system because it depends on healthy people buying insurance. without that subsidy, they won't buy it then the whole health insurance system starts unraveling if we look at the long-term effects of the tax bill, what it's done is to throw a hand grenade into our economic system out of which we know who is going to come out well the corporations >> are you a believer that lowering corporate taxes at all is going to have any impact on wage growth in this country? >> no, no. >> no? >> i don't want to say zero, but -- >> look, i know people who could argue it may not pay for itself directly, but i do think there's

got to be a clear economic impact that if you do lower taxes, the money is going to go somewhere. you are saying it's not going to go to the workers at all >> it's not going to go to workers. >> is that a function of technology, or is that a function of something else >> yeah. the interest on that debt is tax deductible when you look at the two they exactly balance off so that there is not a significant investment in fact, people have looked for it it's not there >> it will be about 7,000 jobs >> they're sitting on -- the corporate sector as a whole is sitting on over $2 trillion in

cash, and there is no evidence that making that pile of cash 2.2 trillion or 2.5 trillion is going to incentivize a lot of investment the other point is very clear. this is a big change in our economy over the last 25 years one of the big ways they go is ceo pay. another big way they go is to sheer buybacks sometimes they've been in sheer buybacks i don't want to see -- >> ceo pay is, like, a drop in the ocean in terms of -- >> no. >> yes, it is. >> in terms of a corporate expense, it's not -- >> not a ceo the whole management >> is there anything with the notion that if u.s. corporations become more competitive

globally, that's not a good thing. even share buybacks or dividend increases. there's a lot of people that own stocks with their 401ks, and you have the money left abroad right now, and people argue if it's brought back, maybe it doesn't go into new hires. you hear buybacks and di dends are better than leaving it abroad right now right? >> we did this experiment back under bush >> we actually invest it, and then i would support lower taxes for creating jobs and investment >> right >> we are making that lirng, and we didn't make it under bush,

and we know what happens if you don't make that link very strong it doesn't lead to more investment it's not like they're cap constrained. by the way, their profits are very, very high. it's not like there's a lack of profits. it's not like there's a lot of cash >> profits can always be higher, obviously, and it's not -- that's not a negative thing if u.s. companies have increasing profits, but jobs do come from the private sector, right? you can at least acknowledge that the government jobs, you need to pay for government jobs and the tax receipts so you do want the private sector and -- it's not bad when they do well >> no. i think it's very good you have to incentivize them to do this, and you will have to make their markets more competitive. >> what does the free market cause them to do pay ceo's more >> pay dividends and share buy-backs and work to create more market power, more monday

oply power our companies use that money to try to buy each other rather than investing we have one of the shoddiest telecom infrastructures in the world. it's not for a lack of resources. it's for lack of competition those are the kinds of things that we ought to be focussing on how do we get more incentives to invest, and that's where i would like the tax system to really be focused. how do we get more incentives to make it more competitive >> you don't seem like a person that it really in jern likes market forces. wouldn't market -- >> i do. >> you do. >> when i say competitive market forces, i don't like monopolies. >> how does -- what's wrong with the telecom industry

>> two firms that's not a competitive -- >> look at all the disruptive firms in telecom right now that are coming >> they still -- >> fighting yesterday's battle >> i don't want to say there's no competition, but it's not enough competition they're paying much higher prices than citizens in other countries. >> but, joe, for something like telecom, it requires billions and billions of dollars in had spending every year. how can we get that amongst start-ups? >> why we invented the technology we -- our companies are sitting in trillions of dollars of cash. >> why are we charging more? on the east coast we're charging more in a dents population, we should have lower prices, but we fail to create a competitive economyt

president trump, and you could argue that he to some degree is against globalization. you may be on the same side. >> i am in favor of globalization well managed i think opening up is a good thing. it has to be well managed. closing our borders, which is what trump said, is going to lower standards of living, and that's one of the things i argue in the book. his agenda is going to lead american workers even worse off. what we have to do is keep our

borders open, but in ways that protect those who -- >> do you believe in universal income potentially in the future. >> no. >> you don't >> the reason i don't is that i think it's the responsibility of government to make sure that everybody who wants a job can get one. ubi is a cop-out it says we're going to give you some money, and you can sit at home my view is that meaningful work is an important part of individuals' sense of self-worth i want us to try to get our economic system to work in such a way that everybody who wants a job -- >> can get one >> -- can get one. >> that's growth while we're talking about mergers and you are talking about all these -- arby's and buffalo wild wings are merging just as you were talking i mean, i love arby's. i love chicken wings too, but

now they're going to get together, and god knows what's going to happen once they do we're going to be paying through the nose >> it's also worth noting that the restaurant group that owns arby's is the one that's doing it he this also own my favorite company, cinnabon. i love cinnabon. let's just tell everybody with what the deal is arby's buying buffalo wild wings. that deal total value dlashs 2.9 billion. arby's parent, rork capital, that's the company and previously offered $150 a share. if you remember, you talked about it on the show before. it was rejected. arby's and buffalo wild wings will share management, but continue to operate separate and work on cinnabons, that's separate too >> didn't you think that there would be some arby's sandwiches coming our way we made a close appeal, did we not? >> what if -- what about cinnabon for you >> i don't know. that's a lot of sugar. and butter >> one interesting thing about

cinnabon, they did a lot of research to figure out what gets your brain ticking >> the smell they have a scent that puts out. >> from the airport. and get you addicted it's like addiction. >> it's a pavlonian. you start watering >> cinnamon supposedly helps kill fat cells cinnamon the whole -- >> cinnamon is good. >> cinnamon is good. i can't imagine -- >> keep telling yourself that. >> you're an enig ma i never know what the hell you're going to say. other times i think you're just out of your gorurd. the euro, that was never going to work, right >> that's right. >> you are an enigma wrapped in a riddle >> u that. >> thank you coming up, it's the busiest shipping time of the year, but shoppers, beware those packages could be slapped

with surcharges by shippers like ups and fedex. that report is next. later, bitcoin approaching $10,000. we're going to discuss the surge in crypto currencies with the ceo of circle where i do all of my peer to peer lending through block chain technology and crypto currency. stay tuned you're watching "squawk box" on cnbc ow. well wait. what did you think about her? it's definitely a new idea, but there's no business track record. well, have you seen her work? no. is it good? good? at cognizant, we're helping today's leading banks make better lending decisions with new sources of data- so, multiply that by her followers, speaking engagements, work experience... credit history. that more accurately assess a business' chances of success. this is a good investment. she's a good investment. get ready, because we're helping leading companies see it- and see it through-with digital. your bbut as you get older,ing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain

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>> ups and fedex have both said it's time to be better compensated for the vast investments they've been making to keep pace with gang buster e-commerce growth which we saw again today. both have raised rates both are slapping charges on bigger overweight packages ups, though, is taking it even one step further morgan brennan joins us now with this good morning again, morgan >> good morning, joe from louisville. so you probably have been inside a boeing 747 plane as a passenger. well, this is what it looks like when it's fitted for cargo this plane goes back and forth to asia and can carry up to 2567,000 pounds of packages and other cargo, and this is part of the push for what's expected to be another record peak season for ups. as you mentioned, both ups and fedex have said they're looking to get better compensated for what's been a dramatic surge in package volumes in recent years, and that dynamic is all the more

in focus this holiday season because ups is adding for the first time ever peak surcharges. now, fedex is adding some extra fees to larger oversized packages as well, but ups's surcharges are the most extennive. they're adding 27 cents to ground packages in the days around thanksgiving, and the week leading up to christmas also extra charges on -- surcharges on next day and second day air in that final week as well yesterday on cnbc i asked ceo david abny whey the company is doing this, and he said ups should get compensated and the extra cost associated with peak season there's more to it than that as well this is also about changing shipping behavior. that is playing out with ups customers. customers like macy's that are offering consumers the option of delayed shipping in return for store credit that is a direct result of the surcharges now, ups says the hope is that this will help smooth out volume spikes, package volume, demand spikes, and that it will

incentivize a more even flow of packages through its network a network that is going to show volumes that are nearly double a normal average day back over to you >> okay. thank you for that very cool to be inside the plane like that. in the meantime, when we return, nfl and owners are in new york today to discuss a number of issues in the league, including the controversial kneeling during the national anthem we'll talk about it. later, can digital pills help in the battle against opioid addiction the results of a new study and what it can mean for dtoocrs straight ahead squawk returns in a moment ♪ ♪

♪ what we do every night is like something out of a strange dream. except that the next morning... it all makes sense. fedex powers global commerce with vast, far-reaching networks... deep knowledge of industries... and, yes... maybe a little magic. ♪

. ♪ santa claus is coming to town ♪ zbliefrmt among the stories front and center this morning, one deal done. another one ending today buffalo wild wings has agreed to be acquired by arby's restaurant group for $137 a share, or about

$2.4 billion excludeing assumed debt emerson electric has withdrawn its bid to buy rockwell automation it turned down several offers. emerson said it took its bid off the table because of rockwell's refusal to engage in talks about a possible combination, and as a result, rockwell now down by about $4.53. we'll be getting some fresh data on home prielsz later this morning. that report is due out at 9:00 a.m. eastern time. nfl owners are in new york this week to discuss several key issues, like the national anthem debate and commissioner goodell's contract extension eric joins us about the game plan

hey, eric. >> how are you doing, joe? that's right right behind me today here at league headquarters they're going to meet. several groups of owners in committee meetings today and tomorrow this is not the big ownership meeting where they're all in one room together. that's next month in dallas. two things we can look forward to this week number one, some progress and whether or not there's going to be a rule enforced for next year that will make all players stay in the locker room for the national anthem. we saw what happened this year with players kneeling. they're trying to avoid that by putting them in the locker room. they're going to work on that in the committee. then the second thing we should expect the compensation committee led by arthur blank, they are trying to get a deal done to extend commissioner roger goodell's contract they do not need to take it back to the full ownership for i afinal approval. they already have the final approval, so they're going to try as soon as possible after tomorrow to get that deal finalized because if it's not done, then they're going to have to meet in front of all the owners next month in dallas where cowboys owner jerry jones will try one last time to derail the process. those are the two things to

watch out for. the national anthem locker room rule, and the exextension of the commissioner's contract. back to you, guys. >> you have done all the work on this, i know, eric the players used to stay in the locker room until, was it, 1998 or something, and then there was a rule put in that they need to be on the field on some -- in one of the rules you would have to change that. it's not like -- they haven't always been there, which i didn't realize >> right it has not been the same thing for 60 years you go back 20 years ago, it was a different story than it is today. there is some precedent. if they want to put it back the way it was a generation ago, this wouldn't be the first time they stayed in the locker room >> all right that doesn't -- that's going to -- >> yes >> we had a gentleman on yesterday that, you know, is a billionaire, so he understands dollars and cents, and he is talking about some labor negotiations that are coming up and that the owners and goodell

and everybody just want, you know, almost kicking the can down the road. didn't want to be too, you know, do anything. this would just sort of do a long-term view of how to handle this instead of saying, all right, you all got to stand because they're worried about these negotiations when are those and is that irrelevant you think that is what's happening here it's about money >> exactly that's the big strength that commissioner goodell has that's why they want to extend his contract the next agreement is about four years away when you look at league, the owners, and the players union. they want to make sure commissioner goodell is on board for that next negotiation. then after that he probably wouldn't be around anymore this would be his final contract that's his big strength. that's what they're trying to get done the national anthem thing can't help them. it can only hurt them. it's neutral at best obviously, most of the money comes from television and getting the bigger share of the

pie if they can keep it and not give it to players that's why the owners like commissioner goodell despite all the problems we've seen this year >> just wonder how -- now it's not. now it's like, you know, there's like eight guys that are still -- it's not like -- it's not entire teams anymore, but people, you know, everybody is watching you know every single game they're looking all the way down the sideline to pick out the guy that -- even though it's only seven or eight people, it's still front and center every sunday >> exactly we think about colin kaepernick. he was just one person and think how much trauma that caused. if you have seven or eight guys every weekend, that's a lot of people as long as it's not zero, that's a lot. >> exactly all right, eric. thank you. >> thanks. >> we'll see you when we return, circle, one of the most heavily funded digital currency start-ups, has benefitted from bitcoin's amazing run. can it continue? where does it end?

we're going to talk crypto currency prices and the battle for block chain technology next. right now, though, as we head to a break, take a look at the u.s. equity futures. they've been higher all morning long dow futures looking to open up by almost 50 points. s&p futures up by almost five. the nasdaq up by jusovt er 11. stick around "squawk box" will be right back. november is epilepsy awareness month.

i am the proud father of a very strong little girl named adelaide who was diagnosed with infantile spasms an incurable and debilitating form of epilepsy. it's been a devastating journey that has robbed my baby girl of normal development. that's why i have launched the my shot at epilepsy campaign and i'm asking you to join me. take your shot at the hamilton pose, donate to help us find a cure, and lastly, share it on social media. this is our shot to take. learn more at: myshotatepilepsy.org wifiso if you can't live without it...t it. why aren't you using this guy? it makes your wifi awesomely fast. no... still nope. now we're talking! it gets you wifi here, here, and here. it even lets you take a time out. no! no! yes! yes, indeed. amazing speed, coverage and control. all with an xfi gateway. find your awesome, and change the way you wifi.

welcome back bitcoin's surge has $9,000 to a new high over the weekend. we're coming up on $10,000 crypto currency, you can see it there, $9,875. hit the $10,000 mark very soon here to discuss what's really driving the rally and the fundamentals that investors should be looking at, social payment app circle ceo is here, and wave bee've been trying to e sense of this now for basically all year michael novogratz that's starting his own fund, just went on television last night and said he thinks it could go to $40,000 in a year. now, some people say he is talking his book and starting a fund to do this, but others say, you know, maybe there's something to this. where do you land on all of this >> i think the analogy a lot of people like to use is that we're still in the early days of this technology adoption and it's

similar to the early days of the commercialization of the internet, and i think it's pretty accurate. i think in some ways if it was 1998 and we were saying, you know, hey, this web thing is really going to drive a lot of value, but some people are saying, well, it's over-hyped and not going to deliver, and then it may have been a bubble then in fact, there was a bubble. if you had invested in the key infrastructure or companies, platform companies, at that time, it would have realized enormous gains >> now are you talking your own book >> no, no. in part of what sishle does -- we should probably explain what circle does. >> sure. absolutely >> on the currency piece alone, which is to say is there -- is this the tulips of our age >> yeah, i don't think so. this is a fundamental breakthrough in how recordkeeping and the settlement of transactions happens in the world. it is going to touch every fiduciary industry that exists in the world and improve it and automate it, drive value, and it's tokenized, meaning there are assets that power these

platforms. i think the question is how broadly do these platforms get used to replace fudiciary trust. as they grow -- >> for those of us that don't understand, it i want you to take it down literally to, like, first grade level here, okay, because honestly there's a lot of people in the world, including myself, on some of these issues that still don't get it >> yeah. >> what is -- let's just do what does circle do first >> yeah. so circle has a few things that we do. the primary thing that we have is a free payment app. if you want to pay someone anywhere in the world instantly without fees, without fx margin, you can do that. it's a global open alternative to a -- it uses crypto currency technology, and it works with cross-currencies >> how do you make money on that >> we don't make money on that any more than google makes money on providing a search engine or e-mail services or facebook

makes money -- >> the way you make money is doing what >> the strategy we've always had is how do we drive a lot of adoption in the free products, and by building on top of crypto, there are other products that we can offer to consumers that are based on crypto, but other financial products we make money by trading in crypto itself, and so we make considerable amount of money doing that providing liquidity to the market in crypto, and we're working on a new product, the next major consumer product, which is a way for the average retail investor to invest in crypto assets. >> but it's got to be a lot trickier when you have seen these skyrocketing prices for bitcoin and then the plummet that goes through. in fact, you have -- you're not doing what you used to do about it, right? >> we never created a model that depended on the price, right it was never a critical piece to it what's important is that there is a marketplace and that there is liquidity, and that it is a tradeable system >> how much liquidity is there people say all the time, yes, you can buy in, but if you

actually were one of the people that envested and now you want to get out tomorrow and you want to sell a lot, that is complicated. >> that's why folks like novo and others that are moving large blocks come to liquidity provider circle is a liquidity provider drw is another one the market is maturing obviously, other traditional broker dealers are getting into this space >> we're hearing about the goldman sachss and jp morgans are going into this space. again, go first grade level again, if if you could the difference between bitcoin and ethereal just so everyone understands it. >> so, of course, bitcoin was the first crypto currency that gained some widespread awareness and adoption people like to refer to it as a digital gold it is a system to store and transmit and keep records of bitcoin. etherium emerged out of frustration with the pace of development of the bitcoin

technology engineers were frustrated and wanted to see some new capabilities in crypto in particular, the ability to not just have one token, but to have a system that could have lots of different tokens you could have a cryptographic asset for a house, a stock, or a bond or a house or a fiat and have those exchangeable on a block chain. they also made it possible to write software or business rules, contracts, that were connected to these assets. you could build, say, a bond with the rules of the bond expressed in code and treatable and liquid and exchangeable on these platforms. etherium is a much more sophisticated infrastructure the next generation, we're actually building on etherium. >> thank you i want to have -- we should do an hour and just explain all these one day. >> no, no, we should >> i think a lot of viewers want to bet into this, but don't really understand all the

mechanics of it. >> we'll tell both of them when we're going to do that, the viewers, and we'll tell them we'll have them come in for that app. >> thank you >> the streaming thing maybe >> on-line >> you think that's where the tens of thousands of -- this is a huge -- look, you see what the price is huge market. huge audience. >> coming up, can digital pills help debt the open oid epidemic. the study after the break. a check of the futures this hour up 46 now with united health care evened out. the rest of the dow is looking -- we'll be right back most etfs only track a benchmark. flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income.

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welcome back open oids kill more than 30,000 people a year in the united states, according to the cdc, and nearly half of all opioid overdose deaths -- once a patient leaves the office, there's no way for the physician to know how the pills are being used meg terrell is going to tell us about how digital pills may change all of that meg, good morning. >> good morning. public health researchers say that a big part of making a dent

in the-- they contain a sensor that can notify doctors or care gives that a medicine has been taken. doctors in boston did a small study using the technology and found that patients prescribed seven days of oxy codone only actually took six of those pills on average >> we were able to identify that patients don't really need nearly as many opioids as doctors think that they do >> now, the digital technology used in this study made by a company called e tech rx isn't yet fda approved, but the first digital pill was approved two weeks ago for the schizophrenia drug abilify

it could be an area of new investment for the pharmaceutical industry. coming this march, the crossroads of health, innovation, and investment comes to cnbc. it's the inaugural healthy returns conference a cnbc special event featuring top ceos, newsmakers, investors, and entrepreneurs about the business of health care. march 28, 2018, wednesday, in in city go to cnbc.com/healthy returns zbloog t >> the point is to eventually get doctors to prescribe fewer pills or to go after the people who aren't using all their pills and get the rest of them back? >> there could be multiple uses. it's really now to understand how the pills are being used >> monitoring your recommended -- and being followed by patients how expensive arethe little sensors? >> they could be in terms of the one that's approved, the abilify one, i have to check on the price that one for you. >> people worry about prescription drug costs already. >> that's a good point

>> then you need the infrastructure to -- >> monitoring. >> this is really the -- >> there are a lot of questions about monitoring absolutely >> they say they're definitely -- >> in other words, it's gone in a couple of days >> that's the intention. >> meg, thank you. >> it's going to pass. >> right >>. >> monitoring the fish >> monitoring fish >> all right when we come back, it is giving tuesday. that's a day dedicated to encourage charities, families, and businesses to celebrate their generosity the president of shelter box on international disaster relief organization joins us after the break to discuss giving and their goals. shelter. there we go. check out the futures at this hour. they've been trending higher dow up by 47 s&p up by four the nasdaq up by 10.5. we'll be right back. cannot live without it.

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shelter box has -- in natural disaster and conflict situations the basic needs that people have are food and water and shelter this has been a year of record emergencies that have devastated both our nation as well as our world. really what we do we go in and bring emergency shelter, and the basic premise at shelter box are what are the things that you need to really sustain your life if you have lost everything in a disaster the center of gravity is the tent it's a family emergency shelter. it's made for really the loss of a home it's the house that will really house people for the emergency aftermath of a disaster. the thing that you will see in emergencies and natural disaster, you see widespread devastation that results in loss of power we include solar lights, water purification units you have blankets, ground mats, mosquito nets. in disasters you often see people literally digging out with their bare hands, so a tool

kit to help people with the essential repairs of starting to rebuild their lives again. the essential thing about shelter box is we try to keep communities literally and physically together so we can get those people going again, help that economy get back together >> how long is it taken that you would live inside one of these shelters >> a shelter box is for the immediate aftermath, and so it's weeks to months. this is not permanent shelter. it's a temporary shelter when you have been displaced from your home. >> you are worldwide >> we are. we've worked in about 95 d countries, including here in the u.s. this is a big year we worked in houston after the hurricane. what we were doing there is providing a shelter within a shelter, and so you saw it at grb, there were about 10,000 people sheltering in a shelter meant for 5,000 people there's not a lot of privacy in these very kong gated settings >> you'll go to syria, where you'll go to bangladesh.

>> we actually have partners we work in syria, so it's been our largest response to date we work with local partners, relief aid go hand in hand we provide physical goods. in syria it's everything from plastic sheeting for people who live in those bombed out buildings to basic things like children's coats, heaters, where people are caught in the worst humanitarian conflict of our generation it's what are the things that these families need. it's even school kids. you see this is a generation of kids in syria. they haven't gone to school. >> it's been going on for years. >> it's been going on for years. we've been responding since 2012 both to this conflict within syria to help internally displaced people and then refugees is there some way people can help >> i believe everyone has something to contribute, and this is giving tuesday whether it's your time, your talent, your resources -- >> how do they give to shelter

box? zblo zbloog. >> shelter box usa.org coming up tom friedman will join us at the top of the hour to talk foreign policy and politics just got back from saudi arabia with the first interview with nbs, the crowned prince there. also, a huge day in d.c. the president talking tax reform senator bob corker is going to tell us how he is voting on all of it. big hour of "squawk box." we return in a moment. 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.

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pruch pitches his plan, but a few republican leaders are voicing concern. we'll ask senator bob corker how he is voting breaking news. a fast food tie-up arby's buys buffalo wild wings in a deal worth $2.4 billion plus, inside the saudi purj. pulitzer prize winner tom friedman speaks out on the royal kingdom crackdown. he is on the set as the final hour have "squawk box" begins right now.

our special guest this hour, fresh off the champions tour on the -- almost. >> you might not think so. it's such a -- >> unlikely. >> it's such a contradition sport. >> there you are >> you played because you're good let's check on the markets at this hour. >> other 29 dow components are better the nasdaq indicated up 11 or so the s&p up four. let's check the price of

bitcoin. we're not going to although, is that coming >> we have been talking about it for weeks if not months now. i told i had gotten bitcoin, and i couldn't find it >> yeah. >> i did find it i have good and bad news the bad news was i wasn't given $25 of bitcoin i was given $5 of bitcoin. >> you would think -- >> coin based. it's $5. i didn't get a bitcoin i got $5 worth of bitcoin at the time >> you need a lot more >> i did -- you just it. i did hear a squeal of the light. even though it was only $79.

>> it's giving tuesday >> you can nominate a charity. what's your charity? >> the brain -- >> i just got $79.95 >> the charitable deduction might be gone next year, so you're going to do this quickly. >> it's not right away not if you are itemizing charitable deduction is not on the chopping block >> just want to make sure just in case. >> let's tell you about some breaking news. arby's restaurant group is buying buffalo wild wings for $127 a share in cash the deal has a total value of about $2.4 billion when you exclude debt they'll continue to be operated as separate brands, and buffalo wild wings up $155.91.

also new this morning, emerson electric has withdrawn its bid to buy rockwell automation that bid had been worth $225 a share, but rockwell had been resisting the bid. emerson says it now has decided to withdraw the proposal because rockwell had refused to engage in talks about that offer. rockwell now down by about 3%. emerson electric up by 1.25% japan's soft bank is reportedly offering the purchase shares of uber at a valuation of $48 billion. that would be a 30% discount to the most recent valuation that we saw, and that was about $68 billion. uber board approved the investment in october. the deal would trigger a string of corporate governor's changes that would limit some early shareholders voting power. it would also expand the board and cut the influence of founder travis kallinic -- it helps to get a soft bank investment

couldn't "squawk box" use some type of investment to expand something or -- >> couldn't you -- >> they invest everywhere. >> we're going to talk about this, though, with tom friedman, because he is just back from saudi arabia there is skittishness, want only about the uber transaction itself, but now in the value about doing business with soft bank because 45% of the vision fund is from saudi and given the questions of what -- anyway, we'll have a conversation about it in just a minute let's have that conversation our special guest tom friedman is here. he recently was out with an op ed it's called saudi arabia's arab spring at last details in the interview with saudi crowned prince the "new york times" foreign affairs columnist,of course. tom friedman is here and the author look at him. look at him. the author of the best selling book thank you for being late, which i'm laid off in times. released in paperback late last month. tom has never been late. tell us about this >> it's number one this year

>> paperback >> who is counting >> congratulations >> now i'll talk about anything. >> congratulations on that you did have the sitdown with nbs, the first interview with him. just tell us about it. >> well, i put what he had to say, andrew, in three bucks. okay the first bucket was about what's going on domestically inside saudi arabia. you've got this anti-corruption campaign you have the consolidation of more power in his hands. second bucket is foreign affairs. the unresignation to -- we saw him lead the effort to isolate qatar and generally he is adopting a much more aggressive foreign policy towards iran. listen to that bucket over here. to me, andrew, the central thing he is doing, the truly

potentially historic thick he is doing is reversing a trend that began in 1979 in the middle east by coincidence, i showed up in beirut as a reporter for upi in 1979 the first story i covered was the take-over of the grand mosque in mecca by radical saudi fundamentalists who for fwo weeks were in that mosque. they couldn't get them out for two weeks they broadcast that the saudi ruling family is westernizing, secularizing and reverting to islam it then coincided with the iranian resolution in 1979 and the soef invasion of afghanistan in 1979 that they launched saudi arabia on a right turn exporting islamic fundamentals around the world and imposing a much more severe reign of religious control at home that fundamentally changed the muslim world from morocco to the border of india what's going on right now -- this is truly the potentially historic thing is mohammed bin

solmon has begun a process of reversing what started in 1979 >> can you put the toothpaste back in the tube like that >> that's a very good question you know, on the one hand, it is -- it's hugely important. i don't think you can put it back in the tube overnight i know this. the only way it can even begin to go back in the tube -- it can in saudi arabia. the most important thing, one of my big complaints after 9/11 was we were going to say bad cleric. arrest him bad terrorists arrest them. what they never did is took them on idealogical and religious -- they were always afraid to what he is doing, during the interview he said to my do not say that i am reforming islam. i am restoring islam let's go back to the time of the prophet. we dealt with christians and jews there was inclusion there. women had positions of power, and the potential because what he is doing is also -- he is giving permission to everyone who feels that to now come out

and say it as well and what you feel when you are in saudi arabia, he is not just leading this from the tom down whoa it is exploding from the bottom up >> can we just unpack? i want to unpack the anti-corruption piece first and then unpam what's happening regionally this is richard parsons. former chairman of citigroup >> right >> prince all walid was a huge in citigroup he was the ceo of tom warner he says nobody understands what's going on. it is unclear why or what the rationale was. this is for the arrest of alwalid. if you are an investor or big person, you are going to take a step back from the starting line and say i'm going to keep my money in my pocket that means -- >> it's a really important quote, andrew, because i think he is exactly right. that's why in this column i pointed out, this is a pivotal moment for i think the crowned prince if this process of arresting these people in the ritz carlton, these on 200 people if it ends with some form of

transparency and is done in the context of a rule of law, i think it strengthens him if it doesn't, i think it will weaken him and affect both saudi investors and global investors >> when you say transparency, you mean, okay, here's what we have on this presence. here's what we have on this prince here's why he paid it back, ask here's a formula for -- >> that is not going on now, and i think it's hugely important. >> it isn't going on now we've heard of clerics and other officials. there was one who seemed to be killed in a helicopter accident. i don't know if you heard about this literally days after the arrest.

>> let me ask you the other piece, and this relates to isis and to islam and everything else, which is to say that some critics have said all of this is window dressing. wr actually had a guest on recently who said one of the largest sort of isis social media proponents is in saudi arabiay. everybody knows who this individual is. yet, he is not on the list in terms of people who are being arrested and picked off. >> i have no idea.

>> women are being allowed to drive. it may be two steps forward, one step back. these are two steps. they have not taken these since 1979 >> it's like something that you have mentioned again and again and again was that to change the hearts and minds of people that are drawn to radical islam, you need moderate islamists speaking out. >> joe, had to come out of saudi arabia they are the legitimate keepers of the two >> you for a while said i think when other people were saying it's 1% of islam, it's radical, you said there's a bigger problem with -- >> this came from the court. unless the core -- the way we've presented it, joe, and often in this country and other areas, people say that's not islam. even isis's ideas were connected to the core.

>> unbelievably wealthy royal family that's running. that can actually help change the hearts and minds of the average? >> joe, it's important it starts to infuse changes to the education system it changes where money goes to mosques around the world again, please underline potentially all these things this is something we have nen e never seen before. >> it is not true that -- islam itself is the end result is not a new calafate that is not necessarily -- >> one of the differences of islam is there's no pope there's no pope today. the closest thing you have to a pope that can actually have it in cyclical and really changes how believers think is what comes out of saudi arabia. that's why it's so important it's so frail. the thing i really saw there, joe, it's really impressive is how much when i talk to young saudis, this was coming from the bottom up. he is as much leading this as reflecting people will -- >> meaning it's okay to make these changes that they couldn't make in 1979 >> i have saudi bankers say,

look, my life was hijacked in 1979 i know one thing with mohammed -- my daughter's life is not going to be hijacked. zplee has big public wins, and then the second he leaves, then the qatar situation. he has a big win he has a big win with all the big investors going over there about a month ago. the second they leave, i was there. he does these arrests, and so it's -- it is this one step forward -- >> i just nabbed space in the paper.

>> sit your royal ass down here. that's what's really missing >> right >> and so i think there's these kind of impulses and you have a mess in qatar and lebanon in a mess he is missing i feel as an american -- >> we'll talk more about this. thank you. coming up, fed chair nominee joy powell heading to the hill for his confirmation hearing it steve pleaseman will have everything you need to know about that i mean everything. we're talking about steve. and then the fed hearing just one of them on the d.c. agenda this week. the senate set to vote on a tax bill in just two days. we'll get senator bob corker to see what it will take to get him on board we'll ask him at 8:40 m.a. eastern time opportunities aren't always obvious.

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>> the fed chair nominee will face tough questions for the senate at his confirmation hearing. cnbc senior economics reporter steve liesman joins us now >> are you taking notes? are you ready? >> that's not what i thought i thought he is not going to face much resistance or tough questions at all i mean -- >> he is going to be confirmed, and it might be one of the more bipartisan confirmations, but the trajectory, the current debate over fed policy is interesting. i can tell you that in his testimony for his confirmation, fed chairman nominee powell won't be telling his critics or the fed critics in congress all they want to hear, despite some republican criticism of an overactive fed in the wake of the financial crisis powell, now a fed governor, will tell the committee, "we must be prepared to respond decisively and with appropriate force to new and unexpected threats to our nation's financial stability and economic prosperity. while president trump is strongly criticized the dodd frank financial reforms, powell says the financial system is

stronger than it was a decade ago, and he adds, "we will continue to consider appropriate ways to ease regulatory burdens while preserving korea forms pul also pushing back on those in congress who want the fed to make monetary policy according to rules saying the fed "must retain flexibility to adjust policy." on monetary policy powell sticks to the status quo set by fed chair janet yellen saying he believes rates will rise somewhat further, and the balance sheet will gradually shrink his predecessors, by the way, have declined to comment >> crazy to wade into that >> he is going to be asked it's a test. the chair -- the fed chair serves as the nation's chief economist. the things that the congress wants to pass or they want to score points on, they have him up they say what to you think of this or that is this a good judged? >> he is trying to dodge and weave today. >> he will try and dodge and

weave. >> senators are going to get their points in. >> my point is that the white house took -- you know, they went pretty far. it's a pretty drastic thing to not reappoint the fed chair, right? and they know that, by the way, because they've told me that they know what they did that that's a nod to the critics of the current regime or the current fed chair, and also, if you look at how much status quo powell represents, i don't think there's going to be drastic change what's interesting to me is he is not an economist. the last two fed chairs have been economists. they've had to create unconventional policy on the fly. the question for me is powell either up to it himself or something he have the people around him if, naf every for example, where he get into a place where we pretty much are now. what if it's low unemployment or lower inflation than they want what is the fed doing in that situation? who thinks that up how do you guide policy? >> do you think he is worried about this tax bill, that this is something he is going to be having to wrestle with

>> i think yes, he definitely -- i don't know about worried, but he definitely knows it's something. you have to have a trillion and a half of stimulus coming down at a time when he is pretty sure that we were at maximum employment they're going to wait and see. there's a question out there as to sort of conservative monetary policy folks versus liberal monetary policy folks. the conservative folks, it's believed, would let a supply side tax cut run and not be viewed as inflationary why? because you are expanding the resources of the economy, and, therefore, you can grow more in a less inflationary way. the question is whether or not powell would abide that, let it run, see if supply actually increases, and, therefore, the economy will be stronger >> if you have wage gains in 20 years, and you are at full employment and then you do that, and you have the benefit of rates being so low that even if they do double, it's still historically low rates we tried eight years of just

physically trying to move things down the chain to low wage earners. why not give this a shot what if it results in a tighter labor market that causes wage gains. you're always telling me about income inequality. isn't this a way to help with that can't we -- we've tried everything else. >> my whole thing with this tax cut is going too far if are you going down to 25 -- >> wouldn't you like -- >> he should be going to 25. >> isn't that something you want isn't inequality a problem >> it is a problem, and it could help >> with rates at zero -- >> it's so extreme, joe, in terms of what else they have to lop off to get there i wish them luck i hope it works. >> steve, thank you. >> my pleasure >> by the way, we're going to be talking much more not only about jay powell's confirmation, but also about the tax plan itself with a man who will be in the room today for all of these discussions, and that's senator bob corker he is joining us at 8:40 a.m. ern time stick around "squawk box" will be right back.

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♪ >> good morning, everybody welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square. among the stories that are front and center, the u.s. wealth management unit of ubs is withdrawn from a 13-year-old agreement in which financial firms have agreed not to sue to jump to competing companies. this comes after a similar move by morgan stanley last month ubs says its priority continues to be investing in existing personnel rather than recruiting from competitors, but a source told the "wall street journal" that morgan stanley's move was the catalyst for the ubs decision in an expected move, at&t has extended the day for its time warner acquisition to be completed to april 22nd of 2018. that follows the justice department's lawsuit to try and prevent the deal in an s.e.c. filing, they -- to

vigorously contest the challenge. some well known internet businesses are banding together to try to urge the fcc to not scrap the rules. they have urged him to reverse his current position good luck with that. among the companies signing on, twitter, air bnb, redit, etsy, and tumble nike's stock is down 1%. analysts say the valuation relative to growth is not connell pe compelling the at current price levels >> i came up with that in this trial. >> yes, you remembered let's get back to "new york times" foreign affairs columnist and author of "thank you for being late." there's the book tom friedman number one this week, right? >> congratulations >> tom, i want to go back to saudi arabia usually we jump all over the

globe with you, but there's so much happening right now you made an incredibly important point that the broader move afoot of trying to quash radical islam is what's happening in saudi arabia under nbs right now. mohammed bin solomon if you look at what's been happening on a very specific front with the sheikh shakedown, that is what has investors so incredibly concerned >> again, you know, how this ends i think is so important in going forward. if it does end with people feeling that there was some kind of legal process and there was some kind of transparency, so as a foreign investor or i as a foreign investor with a saudi partner know what the future looks like at a time when they need private capital the oil wealth is not going to be able to sustain it. i think it's so important how he ends it, and how he ends it is not --

>> the saudis get closer to even israel where does iran -- the weapons that they don't have, if they ever get them, where do they point them they point them at saudi arabia or israel now? it's a great -- >> basically, you know, what he is basically saying is my elders, my father's generation, kind of blew it. they let the iranians even -- the feeling is they let the iranians basically extend their influence allover the arab world, and now we're kind of surrounding. yemen, syria, iraq, et cetera. they want to extend their influence. now they control capitals, damascus, and suna what's really scary, joe, they're controlling them wholesale, not retail.

sfla there's a real asymmetry there. i don't know how they're going to get that challenge. >> it's like fighting guerrillas >> they don't have that muscle you saw the hand-fisted way they -- the qatar thing. at the same time, you know, what really -- if i'm an investor, if you said to me, okay, this is a business what should worry investors? what should worry investors is that between tehran and tel aviv today, it's only -- the iranians are pushing, pushing, pushing. they already have their rev guards, their people in the -- sooner or later, the israelis are going to say no farther. there's been a lot of stories of iran building bases in syria if that happens, the israelis are going to go after it, and there's one thing that the iranians maybe underestimate

they think think can fight this whole war through hezbollah and on israel's ground follow what they've been doing over the last decade they've been buying submarines they've been buying submarines, and i guarantee you the submarines are in the persian gulf right now, and they have cruise missiles on them. anyone that thinks this war is going to be the in exwar between iran and israel is going to be in the golan or in south lebanon, i think is fooling themselves i think it's one of the most dangerous feeders in the world >> that's like end of days type of discussion. >> it's really scary if you go on, the israel papers are publishing satellite photography of bases in syria being built. they haven't been occupied yet, but they appear to be being built by iranians. we've been counting on putin to restrain them, but i don't think -- i think that's a bad bet. what putin is saying i'm providing the airport and hezbollah and -- they're providing reply ground troops. he has extended into this wholesale also this has enormous implications >> iran doesn't have the same bottoms up potential >> it does, actually the regime has much more control

there. >> isn't it more secular >> yes absolutely it is definitely more open women are in parliament. shia have always been -- >> there's no one coming to iran >> they've really kept the lid on there >> they've always been very pro-american the regime has a tight lid on it, where the lifting of sakes has given them more resources, but they've also -- they need an enemy, the iranians, and we in israel are providing it. watch that dynamic of there's nothing but butter between tehran and tel aviv. >> the alliances you wouldn't say are shifting with this latest move in -- they're just -- >> oh, no, you alluded to it

earlier. israel, saudi arabia -- >> there's intelligence there. >> absolutely. they're -- i think the israelis have to be very careful, joe, that it's still saudi arabia still an arab country. the palestinian issue is still important. you don't want to be shoving it in their face, we're with the saudis it has to be done very, very subtly there is a tacit israeli sort of sunni-arab alliance versus the iranian shia >> when you talk about what mohammed bin salamon is doing in terms of trying to shut down radical islam, does that mean funding from any place in saudi is going to get shout down too >> that i think had already started, but now i think it will be much more serious the most important thing, since 9/11, i have been very critical of the saudis for never fighting the war of ideas within islam. we don't have a war with islam there's a war within islam, okay no one was fighting it

>> one of his aides goes in the other room and starts showing my pictures of saudi arabia in 1950, 1960 women in dresses men and women walking together >> he was assassinated because he started -- >> who is russia who are they friends with? they banded together in saudi arabia for oil, right, but -- >> part of me says with the russians, you know, they won

syria. sfloolt if i'm wreaking my event risk, north korea is number one, but iran versus syria versus israel in the sort of syria lebanon theater, that is definitely high up there people better pay attention to that that one can come out of nowhere. >> am to, i want to thank you so much for spending time with us it's always a pleasure >> always a pleasure thanks >> congratulations on being number one in paperback. keep it there. >> thank you for being late. that's the book. >> don't show it on air.

>> before this really goes off the rails -- >> it's a picture of the book, and it had "thank you for being late" and it's got -- >> he was literally lake the key for tax reform, senator bob corker still on the fence. which way will he vote we're going tosk h aim >> oh, my gosh that's after the break there he is.

>> senator bob corker. you know, senator, that we've talked about that. i know a lot about you, and you know i know a lot about you, and i know you -- i know you are thinking on all of this, and i'll remind you of a couple of things that you told me in the past that was that everybody is going to have something that they got to swallow very hard on in this bill you said you just hope everybody is steadfast and not, you know -- and won't destroy this thing, the perfect, you know, sacrifice the good for the perfect or something like that

my question about -- to you is you're worried about whether this finally, the revenues come in that we're hoping for the growth to cover at 1.5 trillion. is there a way for you to get there in terms of -- >> yeah. >> how can you be sure the revenue is going to come in where you are able to say yes? >> yes >> what we have been working on throughout the last 13 days with the administration is a trigger. we're skipping a process here, joe. i mean, what was to happen, you know, we laid out this $1.5 trillion figure. we were going to have a joint tax score. dynamic score. well, we're kind of skipping that process we wanted to go directly to the floor with the bill. in the event we don't -- sense we're not going to score it, that we have a backstop. that's what we've been working on throughout the weekend and

feverishly today i hope we'll get there i know it's important not just to me, but numbers of members who want to make sure that for some reason these projections are off, we don't have the growth, it doesn't generate revenue, that we'ren passing on increased debt to generations. >> what you want to do, is that similar to what ron johnson wants? >> no. >> the more you get, it's not the less he gets or the more he gets, the less you get >> actually, ron supports what i've i'm doing they have about $80 billion in reserve, the finance committee, that they've left on the side to try to figure out. you know, i haven't asked for anything in this bill. nothing. okay look, you know, you talk about swallowing something if we could take the entire individual side of this, throw it in the trash can and take it directly to the incinerator, i would be thrilled if we werable dealing with the business side as it's turned out, as you look at the policies on the individual side, but i'm willing to swallow the individual side which to me is not what it needs

to be to get the business side as long as we're not increasing deficit. no, what ron is working on with pass-throughs in no way works against what i'm working on. >> bob, what would it look like? if there's a backstop that raises taxes, who does it raise taxes on individuals? or on the companies? if we get what's promised from the companies, is that where taxes go up? >> becky, what you have got to do, and we think we've devised a way to did this you have to make sure you're not doing anything to take away from the certainty that businesses want to do the investments that they're taking. you know, obviously there's -- >> in other words, taxes go up on individuals if the tax cuts to businesses don't pay off in the way we expect economically >> on both and -- but not in a way that is anti-pro-growth. i'm meeting with, you know, the main players of the finance committee today at 9:00. again, we've been -- we're getting a proposal this week

from the white house on this this is not -- people are working with us in a constructive manner, but, again, especially since we're skipping the step of having any official scoring on this bill, we're just going straight to florida. this is a way to resolve that. >> correct me if i'm wrong, if what happens is we're expecting lots of economic growth because we are giving corporations a tax cut, if we don't get that growth and it doesn't pay off, and the deficit goes up, we're going to raise taxes at least in part on individuals to make up for them. >> and businesses. we'll see. well, we don't know, becky, what we're going to raise it on we're working through that right now. all of us who are working on this understand that it's certainty that's necessary for business investment. i don't think people really focus so much on how this is going to work, but for the next two or three years we're going to generate substantial deficits, substantial deficits more than what would have taken place over current policy, and

that's when businesses are investing. especially with the expensing mechanisms we have in here then you look at the years four, five, and six. that's when the growth is to take place, and so, becky, the triggers would be -- would give enough time for that to have taken place. there shouldn't be alarms in the business world about this. >> senator -- >> what about individuals? >> well, you know, just let it play out okay i don't think anybody is going to feel like this is -- >> senator, we had professor stiglets on earlier this morning. he said if you look at where the economy is today and how it is growing and where the unemployment rate is and you look at how -- what's happened historically when taxes have fallen and when repatriation has happened, he said are look, it doesn't pay for itself it comes down. do you have any reply to his

thought that actually you will not see meaningful wage growth as a function of all of this >> look, i mean, andrew, that's the reason that we're having this very conversation as far as the wage growth goes, i know the white house has put out numbers of $4,000. i don't know how you come up with numbers like that typically when the labor market gets tight and you have got growth, there is wage increases. sometimes it doesn't happen, but, again, the piece that i am focused on is making sure that in doing this and we've got many economists on both sides that are giving very different projections, but in doing what we're doing, we're not doing something that damages our nation over the long haul. we're in an environment where no republican ever is going to vote for generally speaking, of course, is going to ever vote for a tax increase i mean, this is not the party of reagan anymore where back in the 1980s when things were missed, you know, they were a couple of increases to make up for what was happening. that's not going to happen again, and so you need a backstop

>> senator, i want to get you to weigh in on two big headlines also cfpb and also just curious, since you do care about decorum in this country, the president's comments about senator warren, referring to his poke haunt yas during that navajo president's comments about poke hon tas -- >> i'm going to stay out of editorializing -- andrew, i'm sorry. i'm going to stay out of that. >> so you know what people want to hear, theywant to know whether you're going to vote against -- you've seen the articles, you and flake and mccain got all would like to stick it to trump. that's what people say, and you don't -- you're not up for re-election, flake is not up for re-election, is there anything to that that that's going to dictate how any of you vote? you need to deny there's going to be anything personal. i'll let you do it again. >> that is -- look, i've been

working with the administration at almost every level throughout this entire episode. i've been in the senate for 11 years, i've been a deficit hawk for 11 years, i was one of two senators that voted against a very, very popular veterans bill because it was unpaid for. very painful vote. and this has been -- look, i laid the groundwork for this bill to begin and the budget committee, as you well know. that's a ridiculous thing to think a senator is going to vote against something that's good policy because of some riff that's occurring it's absolutely untrue there's not a person in the administration by the way, i think -- general kelly called me this weekend to thank me for the way i'm working with them, so i just -- it's a ridiculous statement to think on a policy this big, somehow that's going to affect what you might do. >> i didn't ask any hyper partisan questions but i will, do you agree with rubio, did

senator franken -- it's bizarre listening to that. i don't remember anything but i learned from what i did. did that satisfy you >> you know, i'm a policy guy, joe, i kind of stay out of all of that. but i did enjoy -- i did enjoy how you all made foreign policy so funny the last time if i had known you were going to do that, i would have been on a long -- >> thank you when we return, jim cramer in a moment

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let's fwget down to the new york stock exchange. jim, i've seen you tweeting about bitcoin, i know you're going to be talking about rate later. can you give us a tease what you think of this? >> it's motivate by people who are happy to have their money out of a country for not a lot of sacrifice and a lot of anonymity, i also think it's a way for ransomware to be paid, not from me, from the cyber security guys, to stop the information from being

publicized and it's being traded i'm sure a lot of people are shorted now. that's why square was down seven. it's not all bitcoin and i think that the idea of trying to find something that is bitcoin that's a stock has driven stocks up to levels that are dangerous. >> that's a perfect tease. people have to fun in at the top of the show to get more of this. thank you very much. we'll see you in a few minutes when we come back, elon musk responding to rumors he's the ear bco crtoofitin most etfs only track a benchmark. flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. ♪

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look who's here. fabio is here, we'll tell you about that in a little bit elon musk may be a lot of things but he is not -- not the creator of bitcoin rumors have been circulating on twitter that he is the anonymous father of the crypto currency after a spacex intern wrote a blog post. musk is denying the story. not true, a friend sent me part of af bitcoin but i don't know where it is. >> just like you just like me until this morning when i found my bitcoin worth $79.95. on this giving tuesday, your

favorite charity will be getting a little bit of gift i'm thinking i'm just going to -- the sorekin family will make the contribution -- >> whoa. >> just hold on because it's a flyer, right maybe it will go up. >> and fun to track, anyway. that does it for us today, make sure you join us tomorrow. time for "squawk on the street." ♪ this is how we do it ♪ this is how we do it >> good morning. i'm carl quintanilla with david faber. jim cramer is back another run at the record after the major indexes failed to hold interday highs on monday it's a big morning for us, jerome powell heads for the confirmation hearing oil is down a bit and case