♪ live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and melissa lee andrew is off today. we've been watching the u.s. equity futures there's been some concern about what we saw yesterday here, but then what happened overnight in asia you can see now it looks like the dow is indicated down by 55 points, this comes after a day when the dow lost triple digits. decline of 109 points. s&p down by 5.5. nasdaq off by 30 a rally fizzling yesterday as stocks erased some early gains and faded throughout the afternoon, closing around session lows look at what happened overnight in asia. you will see that the nikkei

closed down by about 2%. the losses were more severe by the hang seng. down 2.1%. the shanghai off by 0.3% the nikkei down by 441 points. that will get your attention let's look at early trading in europe again, some declines there not as severe as we saw in asia, but the dax is off by 1% lesser losses for the cac and the ftse declines in italy and spain. yesterday the ten-year yield was 2.35%, this morning at 2.34%. we are watching the price of bitcoin surging past $12,000 towards a new record high. the currency got a boost on friday when regulators announced it would allow the cme group and cboe to allow bitcoin future

contracts. there's a few economic reports on the wall street agenda the november adp employment report is out at 8:15 eastern followed by revised third quarter productivity and labor costs at 8:30. on the earnings front, brown-forman, h & r block, american eagle outfitters are set to report before the opening bell broadcom and lululemon are out after the close. we mentioned this, they are following a developing story out of southern california a massive wildfire continues to burn out of control. it's in the santa clarita area officials say the blaze is 5% contained at this point. more than 1,000 homes have been evacuated. schools in the area have been closed already the fire destroyed at least 150 structures, scorched roughly 11,000 acres of land no injuries have been reported at this point. >> president trump is expected to announce today that the united states will recognize jerusalem as the capital of israel and will move the embassy there. the president informed arab leaders yesterday that he

intends to move the embassy from tel aviv palestinian leaders along with the leaders of jordan, egypt and saudi arabia all warned the president that unilateral steps on jerusalem will derail the u.s.-led peace effort. all of the state department is on heightened alert in that region. new details on the house gop wish list for that reconciled tax reform bill. ylan mui joins us with more. good morning what's new now >> good morning. in the house, republican members of the conference committee are hashing out priorities kevin brady told reporters yesterday that he's looking at new compromises on the state and local tax deduction including possibly allowing the income and sales tax as well as property taxes to go towards that $10,000 limit. brady sharpened his tone on the alternative minimum tax. he said the house feels strongly

that it should be permanently repealed for individuals and corporations house republicans are also unhappy about the first in first out provision in the senate bill that would limit investors flexibility to package stock sales. kayla tausche has reported that about 40 republicans are sending a letter to leadership today urging them to axe this provision in conference. it's also worth remembering that the senate has not actually voted to go to conference yet. that move could come as soon as today. we still don't know which senators will be part of that final negotiation. so the danger here for republicans is that these discussions could get tangled up in the talks over the spending deal senate leadership promised to pass two spending bills in order to garner support from susan collins. we have not seen movement on that yet either. >> all right thanks i don't know markets kind of -- yesterday, we were waiting for the sell on the

news getting close. i think people now think this is probably going to happen you wonder when does that stop >> you see the white house looking for an expedited version. december 22nd is longer than they want. they don't want to give lobbyists time to go through the details. >> it is interesting to see rotations within the markets on the surface, things look quiet. the rotation out of technology we saw debate in yesterday's session. it focuses around the amt. so certain small things will determine how sectors move >> it's interesting that until recently we didn't realize that technology companies were the ones paying 20%. we knew industrials were paying 35, manufacturing were paying 35, in some cases 36 and 37. but the idea that technology companies in general who complained so loudly about not being able to bring money back

from overseas didn't have a lot to complain about because they were paying 20%, 25% >> people were wondering what is going on, they will stand to benefit from repatriation, bringing back more money, so now they will be sacked with a bigger tax rate. >> individual investors could sell the securities you choose not the first ones in, first ones out >> there's a poll, 29% like it 54% -- >> think it's bad. they believe it benefits the rich massively >> it's good to know we're not rich right? >> right >> i can tell you it's not benefiting us. >> you will be less close to rich next year >> if it helps, know, if it helps the growth of the country,

which eventually if you have three or four jobs to choose from, some have higher wages because the job market is tighter, the economy is growing, you know, we all say we want income inequality to -- >> sure. maybe i want corker ecorker, if doesn't work, what's the reset button >> if someone calls them rich, really i'm supposed to be doing well here it's not happening >> back to the markets all of this is affecting those markets. joining us now is david joy. lou breen also joining us. gentlemen, we'll put this to you. lou, what do you think the tax bill will mean for the markets and the economy. >> i think it has meant good things for the market. we've been trading to the rhythm

of the tax drama the market benefited from it. can you get a sell on the fact thing? that happens a lot i think the tax legislation like a lot of other things are sort of the latest news thekom mr come lately of the news the tax legislation will pass away to another item that will be either friendly or negative to the market. >> i hope this is not going to be a sell on the rumor sort of situation. if we have already seen the good news from this, and it's all downhill from here, that could be a concern, no >> over the short or the medium term, you could get a sell on the news the markets have sort of trended the last couple of years, but you can get a market where people bought in overweight for the anticipation of it and getting out now. i don't know that that's

possible without calling a top in the market. >> david, i don't want to sound alarmist about these things, but two days in a row we have seen the markets reverse. have big rallies in the morning, give those away. we are really talking about modest losses here the s&p yesterday down 0.2%. you were talking about the -- the s&p down by a third of a percent, we have seen the longest losing streaks since august i know it sounds ridiculous. is this a disturbing trend >> well, you do point out the fact that this has been one of the least volatile markets in history. certainly this feels a bit unnerving. i think at least for now it's still in the realm of profit taking you pointed out also about sector rotation.

i think it's evidence of a lot of profit taking in the tech sector and just repositioning into some of these laggard groups like financials and industrials the question for the market is what happens if and when technology stabilizes? does it mean that all of these sectors can participate in the upside is it an either/or market? our view is that technology will eventually stabilize the outlook for tech, financials and industrials is pretty good we think the tax bill will add 0.4% of gdp, raising our forecast from 2.4 to 2. for the year there is still some good news to be seen as a result of the tax bill particularly in the earnings side >> so you would tell people if there is a pullback or stall, you would buy into the major averages >> one thing we've been recommending is that look at your exposures by the asset

class by also by sector, make sure they rebalanced at year end. we had a big run up in equities worldwide, in technology in particular just pair those back to maybe where you want your risk exposure to be don't get out of the market. >> why are you at 2.4 for next year right now if we're already -- we have a couple quarte erers above 3% 3.3 with the hurricanes. it have been 3.9 why are you so smart you know next year is 22.4. why is growth slowing to 2.4 next year? >> we're already seeing slow down in the u.s. in the last couple of months if you look at the purchasing managers indices, they're expanding but at a decelerating pace we think growth will be good next year. probably better overseas in places like the eurozone and japan. at least relative to their own

potential. u.s. will be fine. and our modeling tells us 2.4 is the right number if we get tax reform, 2.8. that's a good year maybe the best overall single year on the calendar basis >> it still would be but a slowdown from the last six months what's causing the slowdown? >> well, i think, you know, consumers will be okay i don't think you'll see a big burst of capital spending like some have anticipated. a lot of this benefit on the corporate side will be redistributed to shareholders that will help the economy but not a direct one for one >> i'm curious if the trade in bitcoin tells us anything about the psych of the investor at this point in time we've seen a resurgence in retail stocks, money going into industrials, money into the beaten down sectors, money also going into the holly volatile bitcoin. does this tell us investors are

willing to take on more risk as markets are stalling overall >> i don't know how much you can read into the rally and bitcoin and associate it with other things i think the idea that the risk has been taken on by investors and in part they have taken on more risk in the stock market than they normally would have simply because the volatility has been so low. and that's created the assumption that there's also low risk so, without many alternatives, the market is looking for other things as well but the stock market has built up risk because of the low volatility not low volatility in the bitcoin. i think that's a trade i don't know how long that continues. i don't know if it turns into a viable currency or anything like that i don't know how much you can associate the one with the other. >> in terms of what you would be telling people to do now, lou what do you think?

i would just sort of look for the risks in the market. i don't see anything wrong with the s&p now. but i think that some things that have been the generator of the rally for the last couple of years in particular, the last eight years in general, they are things that -- such as low volatility that can ssh sshgsow seeds of risk. in 1998 the market fell 20% because people were lulled to sleep that low volatility meant low risk >> i heard somebody raise a concern yesterday that there's no new leadership, we keep shifting in terms of which group is leading, but all the groups have gotten tired. there's no group that can necessarily step in and be the next leg of an up market what would you say to that

>> i would disagree to some extent financials have further to run here with powell taking over at fed, it's going to be a slightly lighter touch in terms of regulation i also think that the fed is going to raise rates next year as they intend we priced in three rate hikes next year. we think that will hech the financial sector and so i think that's leadership we could also see some leadershleader ship based on accelerating growth i don't think it's anything like we witnessed in technology in 2017, but it could mean decent market leadership and maybe a broadening out of the sector leadership with more groups participating on the upside next year the one problem i have with all of this is that we've expanded multiples to such an extent i don't think we're going to get any of that next year. maybe a bit of compression on top of earnings growth that results in what we think to be high single digit type returns

>> what did you think of the beginning of this year >> same thing. in the middle of the year -- >> so you had high single digits so why should we listen to you next year? >> because most -- we have the direction right, and the client's position correctly to participate. >> is that all you have to do every year and say -- did you see bob dall's notes market's been up, but it will keep going, but the possibility of a correction is getting greater. that's what we get any way, all right anybody can say high single digits people have been saying that for the last ten years every year. get out on a limb some day what if the market goes down say it's going down or up 30 give me something that's not so pat, so -- lou at least says i

don't have any idea. i'm just trying to look for where risks are. >> we think the market is going up >> mid to high single digits we got it. great. >> 2865 on the s&p 500 >> 2865? all right that sounds more than high single digits coming up, bitcoin has been on a tear, one of the biggest criticisms is that it's largely unregulated. we have an interview with an official from the cftc, the regulatory body that approved the listing of bitcoin futures when can you buy one >> december 10th or 18th. >> okay. let's watch that date. we'll be right back.

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unprecedented shipping volumes the company confirming they have added one to two days to transit time and shifted other employees and resources to the markets most impacted by this huge crush. u.p.s. expects to have resolved all these issues by midweek. it tells you a bit about the success of cybermonday massively popular. i know how often they're coming to my door i'm realizing i'm having strangers come to my door eight times a day. >> five boxes a day, easy. >> i see it. i have dogs. i know when they're there. >> loud. >> yeah. i keep telling them, they're allowed to be here they're packages, they're coming to us. >> it won't stop for the next two weeks. >> they don't care they're on our property. you don't seem to understand >> they most love coming to your house. >> the poor mailman. he tries to sneak up and set it down, and they do -- my mail lem

jumps up to get through the door. >> that's a big dog. >> he is >> i would be a little scared. bitcoin emerged in the aftermath of the financial crisis in 2008 the currency allows you to purchase goods and services without going through banks or traditional payment processes. the chicago mercantile exchange announced plans to list bitcoin future futures and that helped propel the price of bitcoin to new heights. it gained more than 1,000 percent in the past 12 months. joining us to discuss this is andy bush from the cftc. great to see you >> nice to see you again terms of the notion that there's a regulateder now th re regulatl

oversee bitcoin, will this provide legitimacy for bitcoin >> this is an exciting time with all the technology going on, whether it's in agriculture with driverless tractors, in energy with shale, of course battery technology to financial technology, algorithms, etfs and that led to the development of a virtual currency world of which we are now involved with i think it's really important for people to understand that the process by which a new contract gets created by the cme and other exchanges, there's two paths to go down a self-certification process and a written approval process most of these guys come through with self certification. we look at things. because bitcoin is so unusual, and the chairman said, our chairman said this is a unique animal unlike any commodity we've looked at before, we got

involved with them earlier in the process. we modified or encouraged them to modify parts of the contract. the margin is much higher than what they originally -- >> will it be safer? we have limited time but does this make it safer? >> i think the thing is that what we're trying to do is show people that the exchanges, they're the ones looking at the underlying cash contract to make sure it's not manipulated. our role as a derivatives regulator is to make sure the futures contract is not manipulated. we'll do that for sure we'll continue to work with the exchanges to make sure bitcoin is not manipulated in its use on the exchanges. i will tell you this, this is important for people to understand looking at bitcoin, the underlying cash market is not regulateded at this point. it's important for investors and everybody else looking at

bitcoin and other currencies to keep that in mind when making a decision on what to do with it >> has this ever happened? it's interesting you invoked the words of your chairman saying this is a commodity unlike any modity we've se i commodity we've seen before. the definition of commodity means something common, out there, not unique. how does it work when you have the commodity itself in an unregulated market but you have the futures contract in a highly regulated market is there a disconnect there? does that in itself present a risk bitcoin trades down 25% in one session, and the limit down on a contract is 20%. >> i think it's a greenfield for sure we talk to anybody within the agencies, they say what are the biggest challenges price volatility there's other financial products that have similar characterists. if you look at the vix, the

volatility associated there, it moves in quite an exaggerated way at times, or a high percentage change. there's lots of examples out there that you could use we have when we have run internally looking at these contracts, we have run stress tests on them. we're moving ahead with it the exchanges are comfortable with it as well. >> 35% margin means what exactly on a bitcoin future? >> the s&p has a 5% margin bitcoin, that's representative of the volatility associated with it. so it's not going to be easy in the sense of, you know, putting up that margin but for those exchanges, they feel comfortable that's the right way to go that that will make it a smooth, functioning contract >> i've seen speculation this will actually put pressure on bitcoin prices because people

will be easily able to bet against it hedge funds are salivating about that do you worry about that? >> we're aware there's some unique krashgicharacteristics to bitcoin. there's a lot of things that have to continue to be evolved and involved with the underlying cash contract. as you provide more people looking at t as you provide more access to it, i think it's such a nascent commodity, if we can use that term, that i think it will -- as it matures, you will work out some of these issues. far be it from us to make a decision on which technological -- >> why allow it so early if it's so greenfield, why allow futures trading so early you look at bitcoin and how it trades around the world? there's a huge discrepancy in

price itself you can look at where it trades in zimbabwe, luxembourg, it's all over the map in terms of thousands of dollars at times. >> it's a fragmented market, but i would say as you add people into it, i was thinking as far as hedge funds are concerned, i'm sure they're excited about the opportunities out there. that's how you start to get a market to mature when you have other actors come in >> try to corner it and take advantage of it? >> go after it so, i think it's part of the process of a new contract. >> all right andy, thank you very much for joining us andy busch of the cftc. coming up, the squawk ceo call is in session scott wine from polaris will join us to talk about the stock run and the cool things the company makes. he will talk about tax reform, deregulation and other things that helped the stock surge.

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welcome back you're watching "squawk box" live from the nasdaq market site in times square. ♪ >> good morning. welcome back to "squawk box" on cnbc let's look at the u.s. equity futures. there are some red arrows. we've been seeing some rallies in the morning the last several sessions, only to see the rallies give back by the end of the day. the dow down about 40 points s s&p off by 4 points. now to a sports and major decision that could impact the medal stand at the winter olympics

the international olympic committee banned the russian delegation from the game in south korea. the move following an investigation into a program of orchestrated doping by russia at the 2014 games in sochi. the ioc says some russians will be allowed to compete if they meet several requirements. they would be designated olympic athlete from russia, but without the national flag or anthe played if they win any medals. a spokesman for vladimir putin says the kremlin will analyze the ioc ban before taking steps. they are arguing saying this was some bad apples, but there's 25 athletes who have been -- since -- who had their wins taken away from the so chi olympics >> it's a bad story. >> russians are saying without us in the olympics this is basically a european competition. >> you want the best athletes, but not because of -- >> state sponsored doping. >> we didn't go to one because of afghanistan if the whole world is not there, what's the point

all right. regulation rollback and now potentially tax reform could end up as the two business related themes of president trump's first year in office on the schedule for year two renegotiating nafta. joining us is scott wein from polaris industries you from minnesota originally? >> i'm from virginia not too far from brian sullivan's area. >> we can't do the fargo -- you don't have those little quirks >> not a true minunesotan yet. >> everybody knows the cool, pleasure things you make you do service industrial sectors of the economy oil and gas, agriculture >> what we sell, we have commercial and government defense business, about 4$400 million. it sells things into government is, and entities

the oil and gas business is not sellingerators themselves if you're an oil company, the customers are great purchasers of our products. we didn't realize through 2014 all of the fracking, all of the service providers in the region, they were wonderful customers. >> you have know snsnowmobiles,t mostly pleasure. to 85% pleasure, 15% work you think? >> a lot of our customers would buy a polaris ranger the best product we probably ever built they would use that for work around their small acreage or farm, but also for hunting, fishing. >> you point out using your equipment -- i'm getting to the national park controversy that we have seen

a lot of deregulation that you wouldn't think that helped polaris. deregulation in oil and gas. more people are allowed to go and ride atvs -- >> it's been helpful to protect riding areas there was encroachment on riding areas for customers over the years. that's been helpful. but mostly the industries where our customers work as regulate laions come down, pe are more interested in coming into our dealerships >> harley, i don't think, is in the golden age they had some issues recently. i don't know why >> how do you keep people -- young people coming back >> you have something different than harley. >> really, this is an inno investigati innovation sector. we invest over 2$200 million in

new products >> what's your tax rate? >> we'll pay effectively about 29% this year. >> that would help you, too. >> tremendously. >> tax reform, deregulation, these things make a difference to polaris >> significantly beneficial to us what do you do with the money you save >> we would -- we have -- the first thing we would do is invest it back in the business we get paid so much for r & d dollars. we potentially could lose the tax credit for r & d, i'll take that as we get a lower tax rate, if you take the 20% rate, 50 million to $60 million to us next year. so the domestic motorcycle business manufacturing, you have harley, what did you say -- >> we had the victory. we started the victory brand 1 years ago. >> you got rid of that. >> shut that down january of this year.

wonderful bikes. we couldn't make money >> you are selling how much in indian >> almost a 5$500 million business >> compared to harley? >> incredibly small. who is your customer versus harley >> one thing we've done with our innovation is bring an exciting new brand but wonderful bikes at the mid size market. we bring in a younger demographic there. but still the -- most people who ride motorcycles are in the 40 to 50 range. the polaris slingshot we launched a few years ago gives people who are older the opportunity to ride. >> you are also trying to attract new customers through polaris adventure. >> where to go where to ride. >> there's more emphasis on experiences than themes. >> the best way for us to sell new products is to give people the opportunity to ride them we have about two dozen places

from maine to maui it gives people the opportunity to experience the products without having to make the initial purchase >> have you thought about flying any type of -- any type of atv drones eventually, theoretically you could be in a -- being able to fly is it anything you would think of ten years from now? >> i started my career out of the navy with allied signal. i'm sure we'll never be in the -- >> i'm scared of it, too gravity. we have to figure out of a wi of getting around gravity not only you, but people on the ground, if you're dropping stuff, things are falling off. >> we have figured out how to create almost a 5$5.5 billion business where people have fun on the ground. we'll stick with that. >> someone will figure out a drone -- you see, i saw this

helicopter that crashed yesterday. it was a little -- it was like a hobby thing. a two-seater, but something that anybody could own and fly around people are starting to do some of these things, experimental aircraft you see people flying around in. i wonder if polaris -- >> probably another company. >> okay. good if you can move packages, a person could be sitting there, couldn't they? >> well stick to the ground. >> that's a no >> talking to the wrong guy. >> that's no thank you. coming up, the best places to work revealed we have the new ranking by glassdoor including newcomers to the list from telecom, hospit hospitality and the video game arena. plus rob portman will join us. we have the highlights from the net-net dinner last night, including a name drop from kevin hazlett. >> one of them is the gdp release came out, and i've been

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cnbc hosted executives and political leaders at the net-net dinner last night. kayla tausche, you were on the invite list? >> i got the honor to sit down with two of the night's guests one of them was david rubenst n rubenstein, he runs the carlyle group, but also a major player in politics and philanthropy our conversation ranged from president trump to tax reform to his decision to step down in january from the company he cofounded nearly three decades ago. since they have 1$174 billion a carlyle under management with 1700 police investors, i asked him what he makes of markets that continue to notch new highs. here's what he said. >> we have recessions every

seven years on average, since world war ii sometimes we have gone as far as 9 1/2 years without a recession. but i would have thought by now we would have had more of a slowdown the only thing we have to worry about in 2018 or 2019 is unanticipated geopolitical event. the so-called black swan if i told you tomorrow north korea launched a missle into south korea that would have an effect on the economy. if there was a 9/11 event or something like that somewhere that would have an effect. short of those things, i think the economy is in reasonably good shape and will be spurred on a bit by the tax bill >> we talked about that tax bill he said he expects carlyle's companies to benefit from the growth that would be spurred by that but that no one knows how the ten-year growth projections will pan out. not ceos or the jct or politicians. i asked specifically about the decision to preserve the carried interest provision that hedge funds and private equity firms

benefit from i asked whether that was a tax cut for middle america a package that included that as preserved as it is he said it's a relatively small position in a comprehensive package. he answered that in his characteristic humor and went into a long history of carried interest several centuries ago he said the business community's response to the tax reform as reasonably pleased, but it sounds like he has variables they're solving for. >> he's a good guy every time you look at the washington monument you think david rubenstein very generous. >> and he bought the magna carter, restored monacello and teased there's one museum he has his eye on to restore or fund, but he wouldn't say which one. >> has to be one of the smithsonians >> tbd >> gives a lot to to his alma

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zbloousz cronews just crossg the wire davita previously expanded its biz by buying health care partners it's one of the biggest doctor

groups you can see there both stocks up on this news davita hired by 5.9% for the year it had been down 5%. really getting back to even here >> i guess now it's the dyalysis centers. that's what's left >> yeah. they've added that by buying that it looks like they're -- >> makes sense after what we heard from aetna everybody is looking to offer new services >> ask scale for less. glass door out with its list of the 100 best places to work in 2018. joining us right now is roger, the ceo of glass door. >> thanks for having me. >> first of all, the ten companies that were the best it looks like facebook came in at number one this year. >> they did. so, first off, what's interesting about this list is

glass door has become one of the largest jobsites in the world at this point, and as part of searching for jobs well, ask job seekers what it's like to work at their company the best parts and the parts they wish could be improved. then we look back at everything that people said the only way for people to get on this list is for their own employees to voluntarily tell what they like about working there. >> if you have a great company that nobody ever leaves, they're never going to get on your radar? >> no, because we also have salaries we have information on interviews or benefits people when they come to check out bonuses that are being paid every year, we have this constant kind of community of people that are looking at workplaces the workplace is so fluid right now. whether you are -- almost everybody that starts a job is thinking about their next job or their next bonus or what they should be paid that's fair they're on our site looking at

that >> people have been on our show for 20 years, and you can't -- >> we should look. you would be surprised >> how do you kind of rate all these things what's the algarith that you ha have. >> we ask what's great about your company, what could be improved work-life balance. senior leadership. how much the company invests in their development. then we rank based on a combination of those factors for example -- >> very quickly, though, facebook, boston consulting group, google, lululemon those are the top six. what do these have in common >> they have mission-driven cultures we see that year after year. people now want a culture in a workplace that alines with purpose. they want to know that the work that they're doing has tremendous impact. facebook is a classic example. what they'll talk about is their

work is to impact two billion people every day >> in and out burger has a lot more impact as far as i'm concerned. >> it's true in and out people love the fact this they do get to basically make people happy every day. they really do >> that's my point i don't get happy from facebook. people get sad from facebook because everybody else has a better life than them. you get an in and out burger, you radio writ there where you want to be at the moment >> you are right there and more importantly, in and out invests in helping their employees grow it's a fair way. they pay above minimum wage in every market they're in, and employee development is a really big deal that's the other theme we see. because people are changing jobs so much more frequently, when a company invests in their growth, they know that something is going to be with them forever. >> robert, thanks. thanks for playing along too although i'm not kidding we went recently the line goes all the way around it's unbelievable. every meal it's like that coming up, white hseou

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good morning it's been rare recently, and that is wall street pointing to a lower opening after it happened overseas really is what's causing it overnight. doesn't mean we'll end lower today, but the futures are weak. we'll get you set up for what could be a volatile trading day ahead. tax reform continues front and center in washington as lawmakers continue to put their plans together the white house director of lej legislative affairs mark short joins us to discuss. thousands of people are forced this their homes as a massive wildfire tears through southern california. we'll have the latest on this developing story and hear from

the ceo of a winery, and you probably -- even if you are a neophite you have heard of silver oak winery. even i've heard of it. it's well known and we'll talk about them with the wildfires that have ripped through the valley to the north. second hour of "squawk box" begins right now >> live from egt beating heart of business, this is "squawk box" good morning, everybody. welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernan and melissa lee we've been watching the futures this morning, and they have been under pressure, although it looks like they have paired their losses by about half dow futures now down by just 26 points below fair value. s&p futures down by 3.5. the nasdaq down by 18. here's what's making headlines at this hour first up, the price of bitcoin surging past 12,000 to a new

record overnight the currency got a boost on friday when regulators cftc announced it would be allowing the cme group and cboe to list bitcoin futures contracts. on today's wall street agenda the november adp employment report hits at 8:15 eastern time private payrolls are forecast to have risen by 175,000. that would be down from the october reading of 235,000, but this all gets us into the area of what we think is going to be happening with friday's jobs report also, ups experiencing some sore a snag following what they are calling unprecedented shipping volumes. the company confirming it has added one to two days for time and transit on some deliveries ups says it expects to have that issue resolved by the middle of the week >> a spat between google and amazon is escalating google announcing it will block its youtube app from two devices. google criticizing amazon for not selling its hardware both companies said they hope to resolve their issues soon.

joe. a developing story out of southern california. wildfires continuing to burn out of control tearing through the santa clarita area, if you know that fifl officials say the blaze is 5% contained. more than 1,000 homes have been evacuated. schools in the area have been closed the fires destroyed at least 150 structures and scorched roughly 11,000 acres of land luckily, no injuries have been reported the ceo, meanwhile, the silver oak winery, david duncan, will join us at 7:50 this morning to discuss how napa is recovering from the wildfires that tore through that part of california back in october. a few stocks on the move this morning, shares of dave and busters moving higher on better than expected third quarter profit topping the street's projections tv 24 cents. revenue missing slightly at $250 million. the company announced that the smaller store format can meet demand in up to 40 small markets. that stock is up almost 9% right

now. u.s. government has urged a first lady judge to reject the february court date over the proposed merger of at&t and time warner the companies are rushing to meet a closing deadline. at&t ceo randall stevenson called the deadline reasonable general electric reporting to cut about 4,500 jobs in europe it has reviewing assets that it bought in 2015 a french financial newspaper reports that the cuts would take place in switzerland, germany, and the united kingdom in a statement, ge says that it's reviewing the operations to insure that it is best positioned to respond to market realities. let's talk about the markets and the economic -- in the occasions of the proposed tax bill here with us is bob, senior portfolio manager. and joshua fineman, global chief economist -- you srkled it bob dahl, december of 2016 markets going up, but not

straight up. >> what's the subcaption >> the market went straight up that is not true okay let's look at a chart. >> good to see you, joe. >> subcaption. >> fully invested, no cash. good for you that's not straight up to you? 33%. >> it's been a lot better than -- >> you said not straight up. so it has been straight up >> i see a little squiggle >> did the market do better than anybody thought? >> still fully invested. no cash. >> markets are volatile. it might still go up, but it's subject to a correction at any time that's what you are bringing us today? >> it's always the case. >> right >> obviously tell me something of value >> we still have incredible earnings growth.

we still have the s&p 500 yield is not much different than a ten-year treasury. we still have central banks around the world that are accommodative. layer on top of that a pro-growth tax bill. we could have crafted a better one, but it's not all bad. >> wait a second, are you doing things to shift where you put your money we have seen some shifts in the leadership we have seen some stocks that are going down low and going up. >> do we own a few more financials than we did yes. do we own less tech? i'm not saying tech is over. i think tech will come back on it's not just going to be the only leader. >> what i really want to know, bob, is that once tax reform is signed by president trump, is that a sell on the news event since there's so much built into the market already based on that >> we've obviously had some sell-off you know, people expect we're going to -- >> these rounding errors do you have any idea about the pullback >> as long as earnings are okay, we're not going to get -- >> you need to get in when one

of the networks decided there was collusion when they made that error thaf that was your only chance it was pretty quick that day is there going to be an opportunity, a 5% opportunity, a 10% opportunity in the next three noz some. >> five robably. i don't think we're going to have a ten because the earnings are too powerfully strong. >> you're saying things. you are. i'm pulling things out of you. i'm glad we got you we got you okay so, josh, i would love to ask you about the stock market th that would be unfair we had a guy on earlier that i also had not really a problem with, but he says next year the basal case for gdp is 2.4. that may be true, and there may be a lot of reasons to predict that, but wouldn't that be a sharp slowdown from the last two quarters it seems like people are stuck in the past with what they're predicting for gdp they're so used to 2% to 2.5% or enunder 2% that they can't

rachet it up is it possible we're now in the 3% world since the last two quarters were 3% even with the hurricane? should 2.4 be the level for next year >> it's possible, but i would be hesitant to do that. to go up to three. somewhere around that 2.5, 2.25, yes. >> everybody there doesn't make you uncomfortable? >> well, it does, but -- it's true you're right we've been living in that world now for eight, ten years >> is it population growth >> that's part of it that is part of it the labor force growth is slower than it used to be in past cycles that's the demographics of it. also, you know, in the last eight years, we were starting at a 10% unemployment rate. we're at 4% now. it's going to be harder to draw more people in i mean, there are some people still on the outs who may be able to be drawn back in, but we don't have this huge pool of under utilized labor that we had. >> what about the millennials? what if some of them start getting jobs >> that would be great again, you got to look at the numbers of those folks and there

are more baby boomers leaving. >> i was actually kidding, right? we kind of needle them they don't want to be called millennial because it is a pajority the way i say it >> it's not i'm jealous or that youth is wasted on the young wisdom -- does not wisdom come with age, bob? >> that and a loss of memory both accide accident. >> i think technology or anything else -- the internet is so -- >> i don't think it's higher than it is sometimes we feel it's higher. i think we internalize the increases in prices that hurts us more than we kind of

acknowledge the prices that are coming down. that's only human nature i think inflation is where it is moerlts. i do think it will likely edge up some. i think some of the transtory factors that push it down will dissipate. >> were you surprised? we got to go, but were you surprised that hurricane was going to -- the hurricanes were going to put us below 3? >> yeah. >> after the hurricane what would it have been it would have been almost 4% last quarter >> it's hard to say. we got a little bounce back already. you know, wufrt things that's historically when you get these natural disasters, these hurricanes, it becomes -- it's very hard to see them in the economic data. >> right >> you know, it's a big -- >> eventually it can be a positive >> you know, you must be excited about another first quarter gdp because every first quarter has -- >> has been low. >> we've had a seasonal adjustment problem they keep trying to fix it and sort of they're behind the curve on that. >> you know it's coming up >> maybe >> no, the first quarter is coming up. >> you're right about that

>> and we'll see again don't you laugh at me, all right? >> i caution about those 3%. some of that is payback for the weak seasonal q1 >> all the funds, are these all yours? >> yep yeah >> and bts -- it's not 30% it's just the most of them you're half of what the dow did. i mean, is it that great >> that's a five-year number okay we're two points above our benchmark. generally speaking >> did you set a low benchmark all right. those look good. thank you. it's like analysts with expectations of the company. >> benchmark is the bench mark >> i know. i know i think he set his own >> hedge fund managers could be handing out bonuses earlier than normal thanks to the push to get tax reform done before the new year leslie has more.

>> this could be the year that christmas bonuses are actually handed out around christmas in the hedge fund industry, given what we're seeing with tax reform most hedge funds would traditionally dole out bonuses in the first two months of 2018, but those that expect tax reform to pass are currently considering a move to pay out bonuses early to dodge the elimination of state and local tax deduction. at least while they still can. that's according to several tax advisors, including eisner amber which has about 1,400 hedge fund krients. the advisors declined to name specific firms that are considering the move, but hedge funds tend to be clustered in states that are favored by the deduction. about 51% of hedge fund assets are managed by hedge funds in new york that's followed by 13% in connecticut, 8% in new york -- or in illinois and 5% in california combined, those four states represent about 40% of the value of the deduction nationwide according to the tax foundation.

bonuses will be likely more sizable for 2017 than in recent years because they're typically tied to performance, and the industry is on track to post the best returns since 2013, although still trailing the s&p 500, guys. >> great thank you. good to see you. see you, bob all right. you too, josh. diversity in the boardroom deloitte out with a new survey about building a group of directors for success. deloitte chairman will join us after the break to discuss that. plus, the white house director of legislative affairs and assistant to the president mark short will join us and we're going to talk, again, more tax reform napa valley, meanwhile, trying to recover from the terrible wildfires in october we're going to find out how wine country is planning its comeback when we speak to the ceo of silver oak winery. stay tuned you're watching "squawk box" on cnbc [vo] when it comes to investing,

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can disrupt the cycle of uniformity, mike, u.s. deloitte chairman increasingly there's an awans of meeting on the board, and now there's numbers behind the benefits, right, to having diversity, whether it be minorities or females on a board. >> right in fact, one of the things that the study showed, which i was really excited about, was that over 90% of companies believe that this is an important business imperative. >> right companies in the top quarterile for racial and ethnic diversity, 35% more likely to have financial returns above the respective national industry means. basically they're doing better because they've got diversity on the board. >> absolutely. and in addition to gender and ethnic diversity, there's also the concept of diversity and getting just a more wider range of skills on the courtroom >> what does that mean diversity of thought is it different backgrounds, different industries on your board? >> exactly when i use the term cycle of uniformity, what we meant by

that is there are still a lot of white men on boards, and when they look to replace board members, they look for people that have similar skills to themselves since the number, there's a low turnover on boards only 5% per year we need to do something different to get the pool bigger so you can add more women and people of ethnic diversity and just diversity of thought on to boards >> i've seen complaints recently about a couple of companies that haven't been performing that well, and the move to try and shift the board. some of the complaints that have come out are that the board members don't have enough experience in the industry that that company is operating in they are from far flung industries or academia and that they don't understand things how do you kind of match up what you are hearing with what we hear on those? >> i looked at over 90% of companies actually do believe that this is the right thing i think every now and then there may be people that look for one particular item to highlight that is not consistent with the

reen reasons -- >> should a board member have experience in the industries that the company is working in, or should they be from other industries from outside? how do you match up what percentage you want from each of those? >> i look at it this way a board is a team, and so the answer is clearly you have to have expertise in the company in the area that you work on. there are more members than one, so you can have people that have different skill sets in addition to that. it's really a combination of the two. i think as we go forward, a lot of companies are looking at that as being something that they're moving forward, which is more diversity, and it could be different industries it could be different perspectives >> how are companies finding these diverse members of the board? i would imagine that it's very difficult to do that >> it actually is very difficult, and one of the things that the survey did show was that even though people thought it was really important to have more diversity on the board, they haven't really changed how they recruit for board members that's one of the dichotomies that we did see here was that the fact that people see it, but

they haven't been able to change their protocol fre for instance, i think if more boards put in term limits, you have a bigger pool, and you can pick from a whole different amount >> yes, but when you have term limits, the one thing -- i always go back and forth with term limits because there is a certain expertise. it takes a while to figure out how an industry runs, to find out the in's and out's, and a board is probably where i would want some of the most experienced people who have institutional knowledge. if you have new management that keeps come through, oh, yeah, we didn't do that ten years ago because of x, y, and z or we try this and it happened >> there needs to be a staying ar -- staggered approach >> to bring in new blood, have you to force out the old you have to prioritize >> i think having more diverse perspectives on boards right now is more important. we have to do it in a thoughtful way. you have to look at it as a five or ten year plan most boards do not have an actual succession plan

they don't have a formal way to think about how they're going replace people you have to start that earlier in the career and get the board ready. >> we talk about mandatory retirement ages too. >> potentially, yes. term limits senator mandatory retirement ages. >> thank you >> thank you coming up, he is making a list and checking it twice when it comes to lawmakers and the president's tax plan marc short discusses the tax bill push. then co-founder of revolution and aol steve case joins us. his rise of the rest campaign getting his own fund to invest in start-ups we'll ask him about that plus, all of that media deal buzz "squawk box" will be right back. aflac! and reach, toes blossoming... not that great at yoga ya but when i slipped a disc, he paid my claim in just one day.

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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. welcome back to "squawk box. a major decision that could impact the metal stand to say the least at the winter olympics the ioc has banned the russian delegation from the games in south korea. the move follows a month-long -- months-long investigation into a program of orchestrated doping by russia at the last games. the 2014 games in sochi. the ioc says that some russians will be allowed to compete, but really not for russia. they need to meet several

requirements, and they would be designated an olympic athlete from russia, but without their national flag or anthem. >> they get the olympic flag if they win what do he this play the olympic theme? what do they play if you win has this happened before >> a neutral athlete >> a spokesman for russian president vladimir putin says the kremlin will analyze the ioc ban before it takes any steps. >> they were saying this was the united states as a way of fighting at them also, he vladimir putin said this is a way to hurt him in the elections happening there. director of legislative affairs mark short will join us after the break to talk about the president's tax plan and where lawmakers stand on the

issue. right now, though, as we head to a break, take a look at the u.s. equity futures a little under pressure. dow futures down by 40 s&p off by 4.5 the nasdaq off by 23

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zbliefrmt good morning welcome back to "squawk box. we're live at the nasdaq market site in teaimes square. ceo tim cook says he is hopeful some apps blocked by china's tight internet laws will be restored he made those comments at a business forum in china. google announcing it will block its youtube app from two amazon devices, the echo show and the ecco fire tv google criticized amazon for want selling its hardware. both companies said they hope to resolve their issues soon. senate panel approved lejs lake that could help smaller banks and credit unions. the bill raises the threshold that determines which companies were considered too big to fail. this should lighten some regulatory burden for many regional and midsized banks.

as house and senate lawmakers get ready to merge their tax plans together, let's bring in marc short, white house director of legislative affairs and assistant to the president welcome. great to have you here, marc i don't know if you have been on "squawk box" before. must be a real thrill for you. >> joe, it's a great honor thanks for having me this morning. >> you are welcome we want the latest i know it's only 7:30. have you heard anything today that -- in terms of reconciling these two different versions and which way it goes at this point? because we're kind of interested in every detail. as you can imagine >> i imagine so. joe, thanks for having me. i think the reality is today that the senate will name -- the house named theirs a couple of days ago the president is ken couraged. both speaker ryan and speaker mcconnell. we're anxious to get a bill on the president's desk before christmas. there are a couple of small

issues that need to get tightened up one has to do with the pass-throughs. that was a debate on the senate floor. ron johnson and senator daines was concerned about pass-throughs being with c-corp.s there were changes made and brought become to amt tax. a lot of us want to see the amt tax gotten rid of. that will be one of the issues dealt with in conference we don't expect it's going to be a contentious conference or a long conference. we expect this will be done very rapidly. again, we hope to have a bill on the president's desk before christmas. >> are there seven or four in the final bill, do you think, in terms of brackets? >> i think one of the president's priorities was to simplify the tax code and so i think that we do have a preference of trying to get it down to a smaller number i don't know that we'll get it down to four, joe, but we do think that it's better to be a more simple tax code that's one of the arguments all along. >> on that point, though, the

top tax rate is different in those two bills. are you looking at 39.6% being the top rate, or 38.5% >> i think the president is more comfortable with a little bit lower, becky, because i think as you know and you have covered on your network, one of the ways we're paying for the significant corporate relief, family relief, is that we are eliminating the deduction for state and local taxes. those are the beneficiaries of those deductions typically aren't tare at the higher income level removing that deduction, we would like to lower the top rate a little bit >> it's interesting you would say that because i have a friend as we live in this area, new york, new jersey, and i have some friends that do pretty well they are kind of blown away when they actually do the numbers, marc, and when reagan did things or when conservatives talk about tax cuts, they usually don't -- i remember president obama

always used to say, you know, these folks can afford to pay a little bit more. that's what's happening here for a corporate -- for these corporate rates to get to where they are, there's people on the high end many of whom are basically subsidyizing the lower corporate tax rates. >> well, joe, we don't want to have tax increases >> well, there are i mean -- >> now, let's finish this. >> large tax increases this friend of mine. >> i don't know about your friends in particular, joe, but the reality is that the president said all along he was going to focus on providing corporate tax relief because our tax system had become outdated you covered as well how many countries have reduced their corporate rate below 20% that's why corporations are moving overseas. we need to bring those jobs back he also said he wanted to focus on middle income tax relief. you can't have it both ways. we can't have -- >> no. >> democratic senators saying, hey, this is only a tax for the rich the rich are getting hurt. >> everybody complains about income inequality, and i understand i honestly believe that lower corporate tax rates

are what we need to make our corporates more competitive, tighten up the labor market, people can, you know, choose from three or four different jobs that some of which pay higher i mean, we've tried, you know, manually doing it in the last eight years. you know, you increase the minimum wage we see how dividing up a small -- the same sides pie works. that's never going to work we need the growth the president out of the blue seemed to move off the 20% requirement. if you did do 22%, your pass-through issue gets easier to deal with the salt issue gets easier to deal with in terms of whether you modify it a little everything becomes a little bit easier to do if you go to 22%. is that something that could finally be -- you could do the

amt and not -- you could maybe make -- some things wouldn't be temporary like they are now. there's a lot you could do at 22 >> your math is right, joe we like 20%. we think 20% is the right number >> i like zero >> you know, i don't think that's practical i think that we do have the votes to get 20% that's what we're trying to do i think as we've covered, other nations have actually gone below 20%. that is a priority for us. >> mark, the president surprised everyone after the senate voted on this bill last weekend, and he said he would be okay with 22%. why did he do that what is the extra -- >> i don't think he was saying -- i don't think he was saying that's where he wanted to go, becky. he knows that other senators have said exactly the point that joe is making about one way to make it more equitable for pass-throughs and c-corp. is that scenario. his preference is to keep it at 20%. we like it at 20%. >> how about that thing,

suddenly everybody noticed that. >> how could anything go wrong i still worry. you got exactly 51 votes you could lose one more, and, you know, do you trust every senator that went with it? isn't there some way you could screw this up and lose a couple of the wafflers that are hearing from -- you know, we saw a public opinion poll. it's still not popular, marc it's 29% popular 54% negative on the tax plan itself you know, they look at polls like that. some of these people in purple states >> i think that the reality is that you have seen gdp hit 3% or higher the last couple of quarters simply because the regulatory impact this administration has had in

pulling back donors regulations and the obama administration has saddled the economy with were anxious to get tax reform done when you see the economy continue to go, gang busters, i think that the popular tax reform package will continue to increase the reality is that there's been millions and millions of dollars spent by left-leaning organizations and attacking the tax plan without dollars in behind to support it i think over time you'll see that equal out, and i think as people see more dollars in their paychecks and more dollars coming home, the popularity of the plan will continue to increase

>> fifo, you think is not going to be a big issue. what is the number one issue for the confeares to deal with, and is president trump active in that issue in terms of calling conf conferees and will roll up his sleeves and lobby on those issues >> we're yol in communication more than one time a day with leadership i think that we're looking for guidance from senator mcconnell and speaker ryan as to where the white house can be most helpful. i think they they've got a good handle on this, and the president is in constant communication with each of them as to where we can be most helpful. >> i think you can coast now marc what's next on welfare -- >> no, no, i don't advise. i don't advise that. do you look ahead as a legislative affairs director do you have other things down the road >> there's a lot on the president's agenda he has a very ambitious agenda and welfare reform and infrastructure are certainly two of the top priorities for 2018

joe, we're not looking ahead >> no. >> we finish this deal, and this would be great for the economy >> sign it >> that's where our focus is >> got to be signed. >> yes >> i have one of these iphones where i have the little alarm, but what should i set this for for the next thing for us to watch where there could be something wrong? what's going to happen today what's going to happen tomorrow? >> well, this is washington d.c. something can go wrong any minute, any day. it's hard for me to give you that estimate. we would, again, hope that looks as if congress would likely leave around december 22nd we would hope a bill would be on the president's desk by that time to sign >> k on. just wondering this -- this week things have to happen, right >> keep in mind, the staff is already talking about ways to reconcile two bills. they're not stopping they haven't stopped since last friday night when 2:00 a.m. when the bill passed. they've been continuing to work through these issues they think progress is being made, and we think the raelt reality is that there's not a lot of issues to wrap up everybody understands the urgency. we need to deliver on this for the american people so they can

begin seeing the impact next year i think that we're set to get it done by the 22nd where. >> i'm hearing from my presenfrd he is on board, but not sure why he has to shoulder all of the -- >> i sympathize with your friend, and i think that for those that are paying such high state and local taxes in new york and new jersey, they should contact trenton and albany and help encourage them to reduce those tax burdens. >> or contact the boroker down i miami and maybe move anyway -- yeah, look he says, yeah, sure. >> if they're willing to sell their house at a discount, right? they get dinged on that side, your friend would. >> you know what, it's whack-a-mole everybody has to be mad to do something good, i think, marc. >> we're reducing it at the federal level. let them work on the state level. >> thanks for being with us. we hope you come back soon be. >> thanks for having me on >> coming up, steve case's rise.

>> mission accomplished. >> he is just -- my friend steve case's rise of the rest campaign to promote entrepreneurship outside of silicon valley is getting its own fund steve will join us after the break to discuss then, later, the ceo of silver oak wineries here to discuss nap why's recovery after those wildfires from a few months back ripped through just in, time announcing its person of the year it's one of those persons of the year >> this is what you predict? >> yeah. >> i thought it might go the other way. you know, the people that did the -- it's better probably to do it in a positive way. the silence makers, the people that have broken their silence on sexual assault and harassment we'll speak to an itedor at "time. we return after the break. the things you own?

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>> now down 37 points on the dow, and the s&p indicated down four the nasdaq weak this morning it's diverging a little yesterday, but diverging a little recently. down 17, almost 18 points on the session this morning three dozen of america's most respected investors and entrepreneurs have invetsed in a new fund aimed at supporting start-up where's, joining us now to talk about it is steve indicates, the co-founder of aol and chairman and ceo of revolution, the organization behind the rides of the rest seed fund. >> tell us about how this fund came about >> it's really the next logical step we've not visited 33 cities,

8,000 miles by bus and trying to celebrate entrepreneurship, create stronger start-up ecosystems in those cities and attract more media attention >> the list goes on and on how do you pull these people together was this just an outreach? >> an outreach some talked in our team about this effort. they're intrigued and wondering in some way if they could be helpful and get connect to it. we had more discussion in the summer really started talking to people

in a more formal way in september, and i was gratified that the interest was so strong. initially we were talking about doing $100 million fund. maybe it was going to be 15 people it ended up being three dozen people, and we had to raise the cap to -- obviously there's a lot bigger funds it's the caliber of the individuals basically saying they believe in the idea in the rise, and they believe in companies in the next third wave of the internet will be all over the country. not just in places like silicon valley or new york city. some of the lp's may end up making direct investment down the road as well as joining us and being part of the movement to try to get more capital going to more entrepreneurs in more places we're grateful by the outpouring really of support from people we reached out to we got a lot of people that said yes pretty quickly we thought it would take longer

to raise the fund and have it relatively quickly >> how does the fund work? what's the criteria for who you invest in? who makes those decisions? >> we have a dedicated team now at revolution focused on -- the managing partner is j.d. vance he was working in silicon valley for a team called metro capital and that's now focused on rise, and automation and david hall are also part of that team >> our idea here is to partner with them. we don't want to leave rounds. we'll do 10%, maybe 20% of these rounds we want to be a catalyst investor, and in addition to writing a check, try to create more visibility for the company and create a network across the entire country we have a great network density in places like silicon valley. it's more siloed and fragmented around the country we want to be able to rise the rest network it's not just the checks we write. the entrepreneurs we back and the venture capitalists we co-invest with will be part of this rise of the rest network

and look at ways to partner so the deal creates and even tries to attract talent from the coast to come back, boomerang back to where they grew up or went to school it's not just about the check we write. it's about the broader kind of rise of the rest platform and network we're trying to build here >> let's talk about the media environment at this point. you were behind the aol-time warner deal to put those two companies together now we're seeing at&t go after time warner. regulators kind of pushing back on this. there's a lot of change happening right now. what do you think of what you see? >> netflix or facebook or amazon or somebody else they're trying to create more of

a direct pipe looirn different people have different strategies to do that, but that is where the battle is being fought, and that's the same battle that was being fought 10, 20, 30 years ago sometimes people focus the on their industries where we're not understanding the broader context of what's happening and it's clear now unless you have that direct link to consumers, there is a risk you can be kind of marginalized and kind of some of your margins can be hollowed out. >> you think the department of justice is wrong if your idea that consumer is king, why do you think they need to protect consumers from at&t and time warner? why would the ration l abe that they would need to protect consumers from at&t and time warner matching up >> i'm not sure they do. most of the folks i talk to that focus on anti-trust law thought that the merger would get approved, so i don't know all the details. obviously i haven't seen any of the documents. i don't know exactly what's going on i think some of that consolidation is inevitable, but it's not as we found with aol and time warner, it's one thing to do it, but it's another thing to manage it, and part of the reason aol-time warner are that

did bring together content distribution and aol to time had over half of the internet traffic in the united states it was really well positioned company. the execution is hallucination it's one thing to pull these companies together and have all these assets under one roof, but it is hard to manage it is hard to drive that synergy and integration. that's where the challenge is. not so much strategically figuring out what you want to do it's really more having the people and priorities in place so you can make it happen. >> okay. steve, it's great to see you today. thank you for joining us >> thank you >> when we come back this morning, we're going to talk about the state of the wine industry and which vineyards will be back up and running in napa valley with the ceo of silver oak in the meantime, check out the futures at this hour they've been under pressure all morning long dow down by 37 the nasdaq off by 14

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. northern california is rebuilding after a devastating summer joining us now silver oak winery president and ceo david duncan david, it's always a pleasure to see you. give us a status check on what's going on in napa and surrounding area >> of course, we went through the devastating fires in october, but really the region has rebounded from that super well, and, you know, i have been kind of telling people, we've had seven inches of rain since the fires and all the grass is growing. if you don't -- if you haven't

been there and you didn't know, you can barely tell other than in the communities which, of course, is very devastating, you know, with the homes burning down and people dying. we're i think from a farming standpoint, we're back on track. >> are there some wineries that were completely knocked off-line for production it will we look back and think 2017 was that year, and that's why there are fewer bottles out on the market, et cetera >> you know, there were some wineries that suffered significant damage from a wine quality standpoint, i don't think the fires will have any impact on the vintage over 90ers approxima% of the fr out before the fires at our winery, we were 1 00% picked out that really had no impact on us at all we're really pleased with the 17 vintage and looking forward to having that in the market. >> how good is it? >> it's good >> you say that with a smile >> why is it good? everybody knows so -- i just don't know why silver oak is -- it's smooth. i mean, i didn't know -- i am a

neophyte >> we have a pretty unique way of approaching our wine for silver oak in that we pick fruit from throughout a fairly wide geography, and each year we only put the best stuff in the bottle whatever mother nature throws at us if it's a cool year like 10 or 11 or a relatively warm year like 17 was, you know, each vineyard responds a little differently. then we can pick and choose. >> nice bottles too. a classy a lot of them are, like, hand carved i have been to one of these golf tournaments where it's a silver oak -- people go, oh, my god i guess because it's pretty expensive too. what's a bottle of cab usually go for >> the alexander valley is $75 a bottle it's an attainable luxury. >> md 2020 is what i did. >> mad dog >> boones farm apple wine, this is a big treat no

>> we've done a lot of really great work on making that approachable and the wolf huffed and puffed...

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>> breaking news, the employment report minutes away. we count down to friday's big jobs number. >> merging of the tax bills. a vote for the senate to go conference could come as soon as today. >> the ceo perspective on tax overhaul a cnbc exclusive interview with sun trust chief bill rogers as the final hour of "squawk box" begins right now

i'm joe kernan along with becky quick and melissa lee. have you been on this set? >> this is my first time >> and >> it's beautiful. >> it is >> are you still up there at that antiquated -- >> that set is about almost a year old now, joe. it's the "fast money" set we got a year ago for our anniversary >> the technology, the lighting. you see that -- i mean, it's really nice to be -- >> you are such a troublemaker stirring things up >> this is her first -- do you like it? >> it's wonderful. i'm veryhappy for you guys >> the future is right now here are the futures thank you for letting us use your set for a year. >> that was very nice of you >> probably glad to have us off the set. >> those little coffee stains and, you know, straws left

behind >> the nasdaq indicated down about 14 in europe quick check on the boards there there's some red really because of what happened in asia. it started there, but you can see that there's -- germany is down almost a point. percentage point check out the price of bitcoin rising above 12,000 for the first time now up 1,000, almost 9% on the session. we should mention time magazine naming the silence breakers as person or persons of the year. a tribute to the women who exposed the prevalence of sexual harassment and drove the me too movement coming in at number two, president trump. we will talk to a time magazine editor later in the show that was a water shed moment "time magazine," did they have adolf hitler you don't need to be a positive

person to be -- you could be stalin or something like that, i guess. >> if you take the flip side, the converse and do it in -- >> the feel good way of looking at the same story. >> it's just better to -- it's not -- some of them in the past -- i don't know that we had the crappy mirror when i was time magazine looking at the mere looking at myself what was that? that's because we were all person of the year >> you were not person of the year >> i was that year we all -- then the pc wasn't the pc a person of the year once >> this composite i actually like this is -- >> yeah. >> in corporate news, home depot announcing a $15 billion share buy-back program ahead of the home improvement company's analyst meeting today. ceo greg said the retail landscape is changing at unprecedented rates, and the company will invest in its supply chain and delivery

capabilities it's also reporting its sales and earnings targets expect sales between 114.7 and 119.8 billion in 2020. see the stock down about 2.4%. that spend means that operating margins will be below consensus by as much as 1% that's why the stock is moving lower right now. >> deal news this morning. union i'd health news is buying davita's physicians group. davita previously expanded its core kidney care business by buying health care partners back in 2012. the physician group is one of the nation's biggest doctor groups you can see shares of davita now up by 9.4% unh up just barely now to politics. the newly formed conference committee is set to meet later this week to start reconciliation of the house and senate tax bills joining us now ohio senator rob portman. senator, wow wonder never cease did you get -- did you get light-headed when you got to 51 that day where you -- did you know that was going to happen?

are you privy to all the back room dealing >> well, you know, you never know what's going to happen until it does with a 52 vote majority, and we needed 50 to get this done. it was always going to be close. it's a good bill i mean, it's good in substance, and also in process. we went through the committee structure. we had about 70 hearings in the finance committee. we had the bipartisan working groups a couple of years ago in every aspect of the tax code in my view, you know, we did this right, and better than we did on health care, frankly, to bring in everybody and get their input and, i think that's why we were successful. >> just had marc short on. >> it's hard to get everything

squeezed into thisle little package and the president opened -- for the first time there was a crack. about 20 to 22 over the weekend with that tweet. 22 would allow for a lot of things to -- that are problematic to be sort of rectified. you wouldn't have to get so -- the pass-through wouldn't be as hard to get it down to the seed corporation rate the amt for corporations could theoretically go away. you might be able to make it more palettable in some other areas if you did that. is it possible it goes to 22, or will it stay at 20 >> we'll see i mean, there are some differences as you indicate. snoo they've had a higher top rate than we do, which is a difference that has consequences in terms of the revenue, but the structure is remarkably similar. it's the same as both have

middle tax cut both make american workers more competitive, and that's the 20%, the repatriation stuff we've talked a hot will about on the air. >> i hope we don't make big changes in terms of the economic growth structure, which includes having our tax rate be slightly below the average much the industrialized countries, which is 20% the average is about 22.3. i don't want to go much above that because you end up having the united states again not being competitive. already the u. k. as an example is going below 20% they're above it now just in the next year or so. my prediction, is that that 20% is important, and a couple of years from now we'll find out that we're at or below -- at or above the average of the tax rate around the world if we don't keep it at 20. we could find ourselves above the average in a matter of months i hope we won't change the basic structure of this too much

>> do you think the issues in the senate, things were a little stingier in terms of what they gave away in the house a little more generous because the senate had to be held to these certain rules. if the bill that is merged in conference comes back and looks more like the house bill, what does that mean can senators vote on that even though it may not meet up with the deficit concerns that it had to begin with? >> you're right. that does give the senate bill, you know, a little more of an opportunity to be heard because we have to come back with something that meets those

requirements >> that still meets those. the conference bill can't come back and say forget about everything this was just a handful of stuff we voted on. the math still has to work >> i think that's an important point. we also have a type of majority in the senate. having said that, i do think there are some things that are good in the house bill that we ought to be taking a look at we've had good conversations already with the house >> that's something we've all talked about for years in fact, for a decade now we've been talking about the fact that american companies, american workers can't compete. last year three times as many american companies were taken over by foreign companies as

u.s. companies purchasing foreign entities that's because of our tax code we've lost a lot of businesses, a lot of jobs, a lot of investments. we have to do that both bills do it we just they'd to be sure we can come together, as you say, under the rules we've got in the senate and get this passioned and get it to the president's desk for signature >> kevin o'leary from "shark tank" wrote in and is zg that i ask you a question about the estate tax which plan are we going to get the one that reduces estate taxes or is it the one that actually eliminates the tax cuts >> we double the exemption you don't have to worry about the estate tax, and it's been a lot of money trying to figure out how to avoid having to lose the business because you got to pay uncle sam so much at a time

of an owner's death. we do a good job of racesing that it goes from 5 to 10 for an individual, and actually about -- >> 11. >> 11 to 22 for a family there's the issue of whether you do zep up in basis, which changes the numbers. i think they do a pretty good job of small businesses and small farnz every farms, you know, family farms, you know, we want to be able to take care of you and not have you have to worry about this issue it's a simple fiction. >> i just wonder if anything happens in conference that, you know, you can't lose anyone in the senate, obviously. >> that's -- that's one of the issues we have a small margin, and it's a matter of a couple of votes in the senate >> we saw the shoot-out, i guess. well, xavier just man-handled -- >> that's -- that happens every year now

>> facing the trojans. like another -- all right. thanks >> they're a good match. >> thanks. take care. >> excellent thanks, becky and melissa. >> up next, november adp about to cross the tape. we'll bring you those numbers straight ahead

>> a little closer to the nonfarm -- that's 195,000. right around there the good sector up 36. the service sector up 155,000. it is typically doing the heavy lifting there. october payroll 235. a little step down

that october number might have been flatter by a kind of revision from the hurricane september numbers. let's take a look at where the jobs were. small business up 50 medium business up nearly 100,000. large business up by 41. where were the jobs? well, education, health services manufacturing, though, that is a very strong number up by 40,000 trade and transport, 36,000. leisure, hospitality had been doing and has been doing and is doing well 25,000 construction taking a pause. down by 4,000. >> especially considering all the rebuilding that needs to be done >> not surprised to see it take a little pause here. you know what, i don't have to answer that question >> because we have someone else. >> because we have someone else who can. joining us now mark zandi at moody's analytics. let's go right after becky's question there construction

given what's happening this may be a theme. it just occurs to me that is it a matter of finding workers to fill these jobs? >> it's part of it it's an underlying weight on job growth and the construction trades for sure. i think last month was just volatility created by the hurricane. you saw a big pop and now is a pullback fundamentals there are very good the housing construction continues to improve i would expect more gains in construction you are right. i mean, the builders are having a hard time finding workers, and that's going to start constraining job growth. that's evident in construction that will be more evident in other sector as we go forward and unemployment continues to decline. >> becky, the numbers were 21,000, 32,000, 62,000 we just took a little minus 4,000 break here i apologize. should have looked that up mark, give us the overall state of the job market here again, we continue to run at a level that is above the level that most people think is the

sustainable level or with a contribution of -- to the work force by population growth >> this is the job market feels like it might overheat believe it or not. you know, it's been ten years since the last time i probably said those words overheating, and i don't think we're there yet, but we're certainly headed in that direction. you know, at the current rate of job growth,ing 200,000 per month, that's more than double the rate of growth in the labor force. unemployment, under employment we're going sub4% by this time next year, and that's an economy that could overheat. particularly if you have deficit finance tax cuts if you throw that juice on to the kind of an economy overheating becomes more of a risk

>> we haven't seen a big change here or any change at all in the participation rate, but this group seems to have a pool of workers that can come back to the work force without the economy overheating. there's some sense, you know what, why don't we just apply those depths of 3% unemployment and see if we can get americans back to work and worry about the inflation problem later if that's really an issue >> yeah. that's not a bad idea. they can't afford to move to the cities that could happen down the road, but that's not going to bail us out from -- we're creating 200,000 jobs per month, right? 200,000. labor force is growing no more than 100,000

you're not going to get 100,000 prime age men coming in every month. that's just not going to happen. this unemployment rate will be lower. >> next time we'll have you back on gdp, which our rapt update is running in the 2.5 area,which is good. we're coming off the 3's staying at 2.5 and not going back down and giving back the gains is good progress >> steve, thank you. >> pleasure. when we come back, time magazine announcing the person of the year. this time it is the silence breakers we're going to go inside that decision making process with an editor of th magazine next my experience with usaa has been excellent.

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time magazine revealing the person of the year the silence breakers this year taking the top spot. these are the women who spoke out about their experiences with sexual harassment and assault leading to a water shed moment in our culture >> thanks for being here >> good to be with you i think i know the reason why, but why was this the cover >> because this is one of the most rapidly changing cultural shifts that i've seen in my lifetime and perhaps in many, many generations this is something that has existed for years, even centuries. for way too long it was tolerated. what's happened in the span of a year is that it has gone from something that was whispered about to something that is now yelled over megaphones and the consequences have been fast,

furious, and long overdue. >> i mean, joe brought up the point we've been talking about this a few weeks ago who you might consider for this, and he brought up the point that maybe it would be the sexual harasser, harvey weinstein or a composite of that. how did you get to the positive side of the story? >> for a host of reasons one of which is that we spoke out -- the women that spoke out about harvey weinstein -- >> it really is just one component. it's one that even in the course of this year began long before weinstein in october >> what was the tipping point from time magazine's perspective. not many people are even aware it existed back then, and somehow this year something happened along the way it wasn't just bill o'reilly and roger ales it wasn't just weinstein what happened? >> it's a great point. toronto burke, the activist who came up with me, said she was shocked. she never thought that anyone

would take this up alissa milano didn't even know it existed when she tweeted it out. it's a number of factors people we spoke to cited a host of reasons certainly one of which is the election of donald trump, given the accusations against him and the ""access hollywood"" tape. it isn't just that nor is this inherently political. this touches a whole host of industries, experiences. the kindling had been there. it took the match to light the spark. >> you mentioned president trump. >> i was thinking about the re--evaluation of the clinton years too. that was a weird time where the victims openly discredited bimbos trailer trash. completely -- i mean, you got trump. we almost elected someone on the other side that was fully involved with discrediting and enabling a person. >> absolutely.

>> i mean, and that's all in a new light, and now it's 20 years too late, but even the left is starting to say, wow, maybe we should have? >> obviously there was so much news about saying you all had contacted him and he was going to be person of the year, and he declined because he didn't want to do the interview. sit down what happened? >> plainly, right after his tweet, his tweet was incorrect we did contact the president and requested an interview in a photo shoot, which is something we do with numerous candidates for person of the year >> what did he say did he say no? >> in no way did we in any way set any conditions on that

interview or imply that he would be person the year in any way, nor is an interview or photo shoot a requirement to be person of the year. in recent years we named angela merkel and the pope as person of the year without that. >> i think you can make a really y a on ase for almost everyone onourelist, and there's a reason, in fact, that they are just seven people or - ♪ ♪ ♪

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and when storm events arise our forecast get crews out ahead of the storm to minimize any outages. during storm season we want our customers to be ready and stay safe. learn how you can be prepared at pge.com/beprepared. together, we're building a better california. >> breaking news we have our third quarterfinal read on productivity unit labor costs. we're expecting a bump from 3% to slightly higher, but it remains the same the last look at 3% is now the final look, and if we look at unit labor costs, we're expecting a slight positive number we ended up with down .2 .5 ends up down .2 labor costs going down, of course not a bad thing unless you try to paint it into the bigger tapestry of we need higher

wages, but all in all productivity is always a good thing, and any way you can lower expenses for business, which is the other side of the wage ledger, that's a good thing. 232, the yield on the tens, they drifted lower. in large part because lots of rates around the globe are drifting lower equity markets are having a bit of a pick-up as well, and those two things together are pushing more buyers into treasuries than sellers at this point. now, we don't have any more big data points today, but many traders we are continuing to watch this 227 to 232 area because it's always seen to be a holding portion of the bottom of the range. let's see, joe, becky, melissa lee. what's up, joe >> how are you doing, rick it good to have you on today when you said higher, it's like music to my ears when i hear the rick santelli higher thank you. >> thank you cvs nountsing a deal to buy

aetna for $69 billion. united health -- for more on the future of health care let's bring in long-time pharma executive fred hassen. a special limited partner of washer pinkus and sits on the board -- he is also a cnbc contributor. fred, it's always good to see you. >> great to be mere with you >> you like this deal, the aetna-cvs deal it's value-based medicine. what does that mean? >> clearly, we need to bend the cost curve 85% of health care is -- value-based health care means measurable health care, accountable health care, and accountable -- and health care that really bend the cost curve. if you are measuring it, you'll be able to reduce the cost if you're not measuring it, the costs will go the way they're going. this merger helps us go in that direction. >> we've also heard from pharmaceutical biotech companies about sort of a money back

guarantee. if a drug doesn't work novartis announced with its drug $475,000 if it doesn't work, then they will cover the costs is this the direction that we're going in that you need proof that something is working, whether it be the system or the drugs that we're paying for? >> oh, absolutely. especially the drugs that become very expensive when there's a failure there should be accountability for it, and the manufacturer should be doing something to pay back in some way or the other. these value-based contracts are growing everywhere, and more importantly, value-based partnerships, which is a longer term conversation with managed care is the way to go. then everybody works on population health and tries to reduce the overall health care cost, which is where this merger is hopefully going g to. >> right in the discussion, though, about high drug prices for one is that after so much political attention as well as just mainstream attention, it really focused on the pbm's

pbm's don't exist in this sort of equation really, though >> pbm's have a very good role to play. i think the industry has been fighting the pbm's unnecessarily. i think the pbm's are part of the system >> pbm's, some people will say they are the hmo's of today. they are the ones that are telling you that they're going to get between you and your doctor, and you have a regimen that you think is working. the pbm's will say we have a different plan that's cheaper, and you should use that instead. >> well, the pbm's -- >> the doctors say the pbm's are the problem, not just consumers. >> the pbm's are in the middle it's true. ideally the pbm's should be tied in with the insurers that's integrated health care with which the entire spectrum of care as opposed to just managing the 10%, which is the drug cost. if there's a siloed drug cost focused pbm, that's not as good as an overall integrated entity where the pbm -- >> they have to figure out how they can get on the same side of the consumer if you can find ways to stay out

of the hospital and not go back for riyadh missions and do things that help me over time that may help on your cost too, as long as our interests are aligned, that's fine it's when they aren't aligned that you see an asset problem. >> i think pbm's are -- they need to get closer to the consumers. no question about it they didn't need to also show that those rebates that they are getting, they need to make a connection with the consumer >> instead of just going to fill the pockets of yet another plilg middle man >> they also need to do a better job of their messaging because these rebates do help the premiums, but you need to get that point across. >> so are we at a point now where we're going to see more -- is there going to be a tremendous shake-up in the industry that pbm's could be acquired by insurance companies? is this going to be sort of paving the way for that kind of merger especially as the doj or ftc looks at this? >> this is the direction it's going, and it's good for health care integrated you're not just managing the silo, which is the drug.

right now the only large pbm that's going to be independent after this would be express scripps. in some ways this thing is happening on its own

>> cvs already -- morgan brennan has an update on what's happening. morgan, good morning >> good morning. up st has been experiencing some service snags as an already bigger than expected crush of packages has flooded its network. now, that's thanks to those unprecedented shipping volumes that ups confirming it added one to two days of time in transit for some deliveries and that it's shifted more employees in maryland there was a fire monday night. that reportedly damaged vehicles, loading docks, and undisclosed number of packages ups saying that facility already is back on track, but it all speaks to the high stakes of peak season when delivery giants like ups also rival fedex handle staggering volumes under tight deadlines. third party service tracker shipmate riks reporting that ups's ontime delivery for the cyber monday week, 89% for

express. 84% for deferred fedex, 99% on time delivery rate for express. 98% for deferred ups and fedex are not commenting on that data, but fedex does say it's "proud of its service so far and that it's well positioned to meet anticipated record demand. fedex is the outperformer up 26%. ups really rallying in the past month. >> that is a pretty significant difference in on time deliveries 84% versus 99% >> it's when it has to be there. >> has to get there on time. >> i can't imagine i can't imagine trying to do that and it hit 98% it's -- they decided to take on the post office. it's incredible. >> do i get to pick if ups or fedex delivers it? i don't, right >> not necessarily >> it's the retailer who will be deciding which way it's getting there. >> a lot of this is tied around longer term contracts between the customers, the retailers, the e-tailers, and the shipping companies. you know, we've seen this

before >> this is the first year where they've added that for certain weeks during peak season on certain shipments. that is something that is probably going to factor in. especially when you see if they had higher costs this past week. >> to protect their margins. >> yes this is going to be something to watch very closely when we start getting earnings at the beginning of next year >> i mean, i can't imagine that it's going to be magnificently better as you get to the he wanted because there's not really that much of a crush right now. okay, if it's late right now by a few days, it's not going to matter those last things that you are ordering on the 22nd or the 18th or whenever the last day is

you're supposed to be ordering where. >> i think the trend that we've seen is more and more people doing shopping further and further into the season, expecting more and more to show up in that lats minute they've been preparing for it. that's where they've had issue with service in the past the fact that ups is saying they this a bigger than expected sort of tidal wave of packages coming off of black friday, i mean, we've been hearing some of these early readings that maybe the shopping season is going to be even stronger than they expected maybe that's a sign that it is >> you don't -- you don't have numbers for the post office, do you? their express mail >> i don't right now i will see what i can get for you. >> they are required to ship to places >> fedex makes money the stock is -- >> yeah, because they get to cherry pick and pick where they want to drifr things not do they have to take it to the farthest place like alaska it also has to do with their mandate versus where you get to

decide if you are going to deliver or not >> all of this factors in. and shipping rates what the government says you can charge >> thank you, morgan when we come back, sun trust ceo bill rogers on tax reform and banking regulations. we will take you live to the goldman sachs financial conference for that cnbc exclusive interview. stay tuned you are watching "squawk box" right here ocnn bc

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jim cramer joins us now. i'm channelling andrew a little bit. can't believe i'm going to talk about bitcoin, but i read something about dorsey and square and a lot of people are going to start using it. i mean, is it becoming -- it's up another 9% today, jim >> well, i had sarah frye on it's the unbelievable cfo of square, and she downplayed it, and no sooner did they down play it then dorsey said, look, our customers want it. we're going to give it to them whatever they want this has become one of those things that it's monopoly money. we can talk about it

>> vegas is fabulous maybe we get jersey sports betting. i'm not allowed to bet because of my contract, but holy cow, this thing is just a gambling thing. >> the tazarians and the iomegans and the blackbarians. there were only a few of them. i would be afraid too of the bitcoinias where, i don't know what they would call them. you better -- >> you better get on a bus of bitcoin or else you are just left behind. i mean, honestly, what's the difference between bitcoin and trying to figure out the super bowl it's gambling. there is absolutely no one that's been able to come up with anything that tells me this is anything but gambling. you know what, gambling, it's a $50 billion business >> what happened in asia, jim? what's the real worry there? is it anything we need to worry about here >> i don't know. i mean, we saw copper collapse i think japan has been an endless up i think there's -- there's a lot of guys just taking profits.

i mean, look, the market wants to go down right now i think we have to respect that. there's nothing that's really triggering it other than the fact that there's just worldwide profit taking. >> you and i have been through for many years that have very little to do with fundamentals >> is that like pajama boy do you remember him? >> guys are up in the middle of the night. they don't know what to do with each other >> oh. you know i think you know about that. yeah, i didn't know. you are a pajama are you wearing pajamas. >> i think we should just play call of duty honestly why not play call of duty and hit the reset button at the end of the day

we can try to justify. home bepo being down big on what on that they're going to spend a little more to beat lowe's i like that. >> well -- >> i'm old-fashioned more of this that's a great preview for what you can see at 9:00. it's very worth it anyway, thank you, jim >> i'm going to casino and betting on red awarded with bitcoin >> don't forget the one thing that is not black or red >> that's a black swan zhoo that >> that's what always used to get me >> that's a term that came from left filed we call it a black swan because it sounds so much smarter. very rigorous. you know, it's something that we understand as being rigorous >> exactly we'll see you at the top of the hour, jim. 12 1/2 minutes we have sun trust ceo bill rogers check out the futures right now. they are near where they've been most of the morning. a little worse down almost 54 points on the dow. are the

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banks could benefit from tax reform joining us right now with a special guest. >> thanks very much. joined by bill rogers, ceo of sun trust. good morning. >> good morning. >> tax reform, on days when people feel there's progress, banks have benefited and smaller medium size companies have benefited because they tend to pay higher tax that applies to sun trust, presumably you're excited about the bill to pass >> i'm a fundamental believal that there's commerce still on the sidelines and tax reform is one of those uncertainties that can turn into a certainty. we hear that from our clients and see that in the surveys. i don't know how to translate that into gdp growth but i'm fundamentally a believer -- >> there's a debate whether a company like you, 31% is your effective tax rate, goes down to 20% does that lead to a boost in

earnings you invest in capex or competed a way, superficial boost but nothing meaningful in the long term. >> you're about right. it starts with investing in our businesses we start with what are the opportunities and places we can invest and how does that benefit clients and communities and benefit individuals. and i don't -- the competing away term is really benefits that's more capital deploy that's more capital put into the system it's hard to determine that but it's going to start with investing things that benefit clients. >> the senate banking yesterday, advancing this legislation that could ease various bits of regulation on smaller size banks. one of them was the too big to fail designation, whether you're systemically important institution. the barrier for the qualification goes up to $250 billion in asset $210 billion in assets, that something that could be meaningful to sun trust going forward? >> i think the whole concept of

tailerred regulation has been something that's been talked about and i think we're all aligned around we want to have a safe and sound financial system but we want to have regulation that's tailorred to a bank's particular risk profile. we're under the 250 designation, so presumably that would give us more capacity to deploy our capital and grow in the economy. >> 210 where you are to 250 is kind of close. >> it is. >> people have thought one of the benefits of potential deregulation for small or medium size banks is consolidation. does that mean you can't take part in that if you want to maintain the under 250 barrier >> we have no reason to think we can't do something from a con solid dags profile those are strict lines of demark arks they are really not we're not going to stop or slow down because there's an artificial or line of 250

billion, we're going to continue to grow and invest in businesses when we exceed that, we'll be ready and have the capital and technology and the systems deployed to respond from regulatory standpoint. >> focusing on the consumer, your deposit growth has been strong if we look at potential for rate hikes next year, most forecasts expect that to be three or possibly four. in order to continue deposit growth, you'll have to do the rates more meaningful than other customers. >> what about with deposit betas do they increase we're in a low absolute rate and the pace of change has not been that fast relative to other increases. and the technology is changed. we have huge mobile adoption and great digital relationship with our clients. i think deposit will lag the increase and we'll have to see the pace. >> finally, in terms of the technology, what makes you stand out to the rest. everyone talks about it at this

conference, what makes you stand out? >> you look at our mobile adoption in our client base is really high, clients are speaking by how they use our facilities and app rating is really high. we have a consumer lending franchise called light stream, we fund it and which is an online application. it's evidence of the fact of how our consumers interact with us. >> thanks for joining us. >> bill rogers of sun trust, i'll send it back to you. >> thank you very much >> folks, when we return, a list of words that you might be too embarrassed to say when you're at a rtaanesurt. possibilities are endless, right after this

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welcome back, we are in the chairs and mentioned this earlier, square is expanding the bitcoin feature to more users. cash app announcing more active customers will be able to buy and sell bitcoin on the platform. shares of square have been on a monsterous run until recently until it was said people are overestimating the impact this will have on square in terms of total revenues, but big run. >> that is up. looks like a little dip but went

from 50 back down to high 30s. >> yeah. >> here's a story that might make andrew ross sorkin panic. language learning app babble compiled a list of the most mispronounced foods, that includes many italian dishes such as brushetta and other food names that might get butchered, if faj fajitas. >> acai. >> it's a super antioxidant. i only recently learned that it was -- if you have a party of crudites. >> i heard it's bruscetta -- >> convinced my mom for a while

it was ki tea not chai. >> i thought the worst thing was can i get a check, which i don't pronounce very well. >> embarrassing, alligator, i can't -- short arms. >> we'll see everybody tomorrow. right now it's time for "squawk on the street. ♪ >> good wednesday morning, welcome to "squawk on the street" i'm carl quintanilla with david faber and jim cramer. japan was down about 2%, worst day in eight months as they watch the tax bill negotiations and expected decision to use the u.s. embassy to jerusalem. adp right in line, 190 k