begins now >> live from new york where business never sleeps, this is "squawk box." good morning welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. it is jobs friday. we'll get the november employment report at 8:30 a.m. eastern time forecasts call for an increase of 195,000 in non-farm payrolls, that compares to 261,000 in october. the unemployment rate it expected to hold steady at 4.1%. check out the u.s. equity futures. you will see right now dow is looking like it would open up by triple digits. s&p up by 12 nasdaq up by 44.

yesterday stocks had steady gains throughout the day the s&p 500 snapped a three-day losing streak and the dow was up for the first time in three sessions overnight in asia, nikkei was up by 1.4%. hang seng positive, up by 1.2% shanghai composite up by a half percentage point breaking news out of europe. uk reached a brexit deal with the european union willem marx has more on that story. good morning >> good morning. this is good news for theresa may, the british prime minister, she can go back to london from brussels and present her cabinet and the country with evidence she's managed to get the conversation moved on to truck being britain's future trading relationship with the european union, a major factor driving that brexit vote last year in terms of the european side, they're happy that some concerns have been addressed, specifically over the irish border neither side wanted to see a hard border between northern ireland and the republic of

ireland. leo varadkar, the irish prime minister, this is what he had to say. >> i'm satisfied sufficient progress has been made on the irish issues the parameters have been set and they're good now we can move on to work out the detail of what has been agreed to talk about the transition phase, free trade, and the new relationship between the eu and the uk. this is not the end. it is the end of the beginning >> the point now, is that they'll be discussing the transition period. the british government requested at least two years so businesses can get their house in order and plan for what the future looks like the uk wanting a free trade agreement with the european union. that was something that was contentious around the irish border issue, the movement of goods and people out of the united kingdom

we spewaw a spike in the pound earlier, and that's now dropped back down into negative territory against the dollar >> willem, thank you very much in the meantime, as we've been talking about, we are watching the price of bitcoin again. we should note that there can be a wide discrepancy in the price on different exchanges so the price climbed now above, yes, $19,000 yesterday on the coinbase exchange before plummeting back to levels hit earlier in the day plummeting, it's at 14,000, 15,000 depending on which exchange you're on >> you bought it at 17,000 -- >> yes >> you're feeling like -- >> you're not feeling great. >> they would actually be having to put in circuit breakers on this in something like 5 out of the last 7 sessions based on the volatility >> someone needs to be buying it where it goes up to.

>> someone it feeling it now >> let's say you paid your mortgage a week and a half ago it's not currency. >> right now this is a true speculation. >> it's supposed to be currency. when does it -- this is always the question about a volatility story. it has to be a relatively volatile-free currency before people accept it that's the issue >> okay. if you think about what a currency is, this is a long way from that. this is an insane speculative -- >> frenzy. >> or a proxy for the amount of money that's sloshed around. still only 300 billion, 400 billion. >> yeah. >> i'm not doing it. >> okay. >> you checked into it >> i already have mine i'm in

i was in at $5 >> so the developing story in california, wildfires have burned nearly 200,000 acres across the southern part of the state. at one point winds were at 60 miles per hour that would spread flames at roughly an acre a second you could consume the entire central park area in about 15 minutes. in san diego, the extent of injuries has not been released, but more than 200,000 people in los angeles and ventura counties have been told to leave their homes. millions of cell phone alerts have warned residents of the extreme danger it's california's largest ever use of a disaster alert system we'll get a live report from california next hour you saw the news that waze supposedly took you into -- >> i did read about that

>> i started using waze a few years ago, as my car almost got stuck between two trees when it took me down this road, it was impossible to get there, i was going through, like, farmland. i was like i think i can squeeze between those two trees. there was no route that way. >> did you see the story about the guy following his gps and it took him off the end of a freeway? >> there was a robot chicken from a few years ago, the guy was dating the voice of the gps system he broke up with her, she steered him off a cliff. her name was linda or something. so ridiculous. late breaking news out of capitol hill congress passing a two-week spending bill that averts a

government shutdown for now. kayla tausche joins us and has more on that story >> good morning. the house and senate yesterday delayed the funding debate for two weeks to buy time to finish tax reform which will begin the conference process next week 14 voted against the bill. the stop gap bill sets up a potential shutdown scenario three days before christmas, and the freedom caucus chair told cnbc he doesn't see much changing >> i'm not real optimistic that the 22nd of december will provid any different kind of outcome than december 8th that provided. we had the december 8th deadline almost three months now, here we are punting again. >> gop leaders are working on a new deal that would extend defense funding through september and all other programs through january.

yet president trump hosting the big four congressional leaders to discuss how to proceed on that, on letting caps on defense spending be raised, and immigration, both parties afterwards called the meeting productive the white house saying that the president, speaker ryan, and leader mcconnell also stressed that negotiations on immigration should be held separately on a different track, and not as part of the government funding bill democrats who are pushing for protections children of undocumented immigrants, said nothing has been agreed to but discussions continued. we'll see what they agree to over the next few weeks. >> what's your betting line? >> my betting line is i should not be taking a vacation day on december 22nd as i had previously planned to. it seems like they will be taking this right up to the wire again. i was joking with aides on the hill yesterday, you guys going to do this on the 20th, the 21st, they said, no, that's not how things work around here. what does appear to be coming

together at least for now is this temporary deal to kick the can yet again through january. and on defense to fund that through september. the worry is if north korea were to do something erratic or another issue on the defense side that you don't want to have uncertainty there, there is this expectation that there could ab potential bipartisan fix on immigration on daca that comes into play by the end of the year it's unclear how democrats will use that as a bargaining chip. >> it sounded like mark meadows is a little inpatient. i guess you have to wonder would the freedom caucus be willing to kick the can down the road once again? >> it's interesting you raise that issue one thing that they have been asking for throughout the process is not the two-week bill put forward yesterday. they wanted something that originally went through january, because they felt like republicans would lose leverage because of the proximity to christmas and the holidays and the end of the year.

they wanted something through january, then said do it through the 30th now they have been -- they have given in to republican leadership to do this for two weeks. it's clear they won't go quietly and they have concerns about this >> kick the can down the road and back >> it's back >> kayla, thank you. we have not used it in a while >> i have that tie which tie? >> the one with the kicking of the can. >> mario draghi kicking the can. >> yes >> throwback thursday, kayla, so you know, i have the business card >> yes andrew found a business card from my very first job when we met at a conference. maybe ten years ago? >> i was looking through a box i sent her a picture of it she asked me not to throw it out. >> i want to see it. can we tweet it? >> we'll find it yes. see you. democratic senator al franken announcing yesterday

that he will resign from the senate is he facing a series of sexual misconduct allegations franken denied some of the allegations against him and questions others separately frent frankstrent fre will be stepping down as well. >> i think the people he was talking to, he was suggesting to be the surrogate >> the headlines were confusing. i thought surrogate who cares, but then it sounded like he was wanting them to be the surrogate. >> it was a bizarre. >> was a pro-life means of doing it, so you weren't throwing away embryos. so that got me thinking have my child naturally. >> this came out of nowhere yesterday. we have $20 million over the last 20 years. there's some guys there that -- any day something could come up. the franken thing is

interesting. i don't remember any of the other ones, and the ones i do remember, i don't remember that way but i'm resigning. my question is, conyers resigned and left i plan on resigning in a few weeks? in a few weeks we will know roy moore we will know whether he gets in or not it's cynical to say that they're trying to get high ground, even your paper, andrew, they do it softly apparent bid for the high ground you can count on the daily news. perversion of justice as saint al left while sickos trump and moore are still in such an obvious move yesterday it was weird >> weird times >> they are. >> thinking through every one of these stories that comes up. you read through the details, trying to read through the lines, trying to figure out why people stepped down, were forced out and understanding what's behind it.

so much of this is happening >> right >> in a shrouded manner. i don't need this al franken thing. it's got to go away. on drudge they keep putting up pictures of him when he was on "saturday night live," he is in these little briefs, he's -- did you see it today ugh. >> stuart pauley stuff >> yeah. i can't not see it leave already. >> stop talking about. >> the issue is this is everywhere on capitol hill and in the media industry. >> do you think the senators -- a lot of them said i talked to him, we agree what he should do. he agreed with me. do you think they talked about, you know, if you fall on your sword, we can really go after moore and trump and everybody else >> no, i think they talked about the moral high ground. >> he doesn't admit he did anything if he remembers the stuff, he remembers, but doesn't think he did it, then he doesn't remember the other stuff, why is he

resoin ir resi resigning? >> i don't know. that's what's confuse being it. white house officials say president trump will move forward with a infrastructure plan in january. democrats signaled it's an area where they would work with the president. a proposal could involve 2$200 billion designed to spur 800 million in private and local sector spending. just couple hours away from the november jobs report joining us is michelle girard, john riding. i was talking to riding off camera in your notes, you're talking about going down through next year, down below 4 % on unemployment >> absolutely. >> you think that things are actually picking up in the economy now? you're looking for a good

number i wonder if you saw this piece, the incredible shrinking work force. the u.s. is 2 million workers short of where it should be. many are on disability or on the couch. is it as tight as we think this is the opioid crisis in part >> you talk about participation rate went down >> yes but the point -- the participation rate is on a secular decline because people are getting older. that's taking these -- a lot of people out of the work force yes there are people who might be working, but they're living in places where there might not be jobs, as research has shown, a lot of these people are actually part of the opioid crisis jay powell talked about it during his confirmation hearings so -- on the other hand, we -- the demographics, we'll be lucky to have 100,000 new ent trrants

month into the new labor force >> that might be good or bad bad if you need a job, good if you want wage gain >> and we'll see those wage gains. >> good. >> we'll see those wage gains. there's nothing unusual about what's happened in the wage numbers. >> he just came in i asked riding if he called it an awful bill. you told me he called it an awful bill did he call it an awful bill or not? >> no. no this is awkward. >> we had conversations. >> you were citing him you said -- >> did i cite him on the record on air >> with me you did >> haven't you learned nothing is off the record? >> you did not call it an awful bill >> no. i think there's a lot of stuff in there i don't like. cutting the corporate tax rate is the jewel in the crown. >> the jewel in the crown. >> it's the jewel in something >> it takes an average rate over seas of below 25%, and makes the

u.s. competitive >> good. i rest my case i'm leading the witness. >> we heard similar things from worker who said you take the entire -- >> corker voted no we know how he feels >> i prefer they did the corporate side now and left the individual side. politically that would have been difficult. >> not only that, but how do you pay for it. >> it's difficult to go down and do individual when you don't have corporate >> we heard that they were looking for kudos for the individual side. >> it's surprising because the bill -- the tax bill is quite unpopular in terms of polling. on one hand the republicans feel -- we talk about this a lot. republicans feel they need to get this done to take something to the voters to the mid terms next ovember >> what happens if you take them something they hate. >> it will be interesting to see how this plays out

i agree with you, i think to get the accelerated appreciation, the corporate side, i think all that is positive >> we all understand or hopefully we understand i'm not calling the public naive, but cutting taxes on corporations by definition can never get a majority you need to understand, it's a global economy here. we're noncompetitive, forcing money overseas, the territorial system we need to change all of these things you can't go to the average person out there working hard and struggling and saying corporations need a tax break, it will help you eventually. but it could it could if corporations did, if they were more competitive -- >> too stupid to understand that >> not saying that do you think we should go to a person on the street and say should we cut --

>> it may not help them on an individual level >> why are we doing it then? >> because people think it's for the greater good >> you don't think that. >> i'd like to see the math and see it work out potentially. >> you don't think our corporate rate here is too high. >> i do. but what do you trade off as a result i think our rate is too high i think we need to be more competitive. >> the corporate revenue side compa compared to the -- >> there are a lot of loopholes that didn't get closed in the bill, that bothers me. >> this is what makes it so difficult. in the end this is why all of these things become -- when you lay out something and promise all sorts of cuts, when you try to do reform where you're trying to -- you're closing loopholes, trying to broaden that base, it's difficult look at the state and local tax deduction to try to pay for it that's what makes it so challenging. >> it's disruptive because you're changing the way things have been done for decades i understand that, but i feel

like -- judd gregg will talk to us about this in a moment. if you're going to close the loopholes, you should close all of them so everybody feels equal. >> if you're looking for growth and you believe a more competitive rate -- >> capitalism requires kap s ca. >> right now there's an argument with millennials on whether we want capitalism or socialism >> that's right but you can put your plant and equipment overseas, the money goes overseas, if you need money you borrow it. that's deductible. >> there's a way to do it. >> you're right. >> why should the u.s. shochoost be uncompetitive >> immediately you think ceo pay will go up it won't help me >> right >> we understand so it takes political courage to do it. the republicans are probably

going to lose -- i don't know whether they -- this helps them retain the house or senate it's tough even if they do these things john ryding, not an awful bill when we come back, the government dropping a proposal that would have required airlines to disclose more information about extra fees details next. plus we are learning about the latest investment from that 1$100 billion softbank vision fund "squawk box" will be right back. we know life can be hectic.

that's why at xfinity we've been working hard to simplify your experiences with us. now with instant text and email updates you'll always be up to date. you can easily add premium channels so you don't miss your favorite show. and with just a single word, find all the answers you're looking for.

because getting what you need should be simple, fast, and easy. download the xfinity my account app or go online today. welcome back the department of transportation dropped an obama era proposal that required bag fees and more information to be disclosed for fees for extra services. the work on the proposals was frozen shortly after president trump took office.

>> i think that's crazy. >> i don't know enough about it. seems like it's bizarre. the idea of just telling people what they're paying. >> yeah. okay recode reporting that softbank is planning a 3$300 million investment in door dash, a food delivery start up and reuters reporting that uber's chinese rival, didi, will launch services in mexico next year that marks didi's first expansion beyond china uber sold its china based business to didi back in 2016. a lot of strange bed fellows in the whole softbank/didi everything world >> confetti is falling >> you have one of those people who clogs up the boarding. i know you do. you put stuff above. >> when i went to china, nothing under. ever >> check the bag >> no check the bags, ever

>> no, because you want to inconvenience mess by c by carrg your stupid thing, jamming it in there. because you can't possibly wait during the -- >> no i walk in -- >> what if you -- >> i say hi to the attendant i hand them my suit bag. no i'm joking >> you're a guy who does not wait -- you bypass the baggage claim. >> i never do either i always have to go but i wesh i was one of those people. >> golf bags, skis, baby -- you know, if i have a wife and two kids, we each have a 50 pound -- >> if i'm going on vacation with the family, it's not the same. if it's a business trip. >> you travel quickly. >> i move. >> i know you do, like o.j remember that commercial >> i do. i'm not sure i wanted to be compared to o.j. >> that's right. yeah subsequently -- >> the athletic person, yes. >> he was not a good

spokesperson after okay >> in hindsight. >> coming up, congress delaying a fight on funding the government now focusing on tax reform negotiations. former senator governor -- governor senator judd gregg will join us on set not that many guys like that ♪ some moments can change everything. you can't always predict them, but you can game plan for them. for 150 years, generations of families have chosen pacific life for retirement and life insurance solutions to help them reach their goals.

being ready for wherever life leads. that's the power of pacific. ask a financial advisor about pacific life.

welcome back you're watching "squawk box" live from the nasdaq market site in times square. ♪ good morning u.s. equity futures at this hour, dow up triple digits last time that we checked 106 now. s&p indicated up 12.

nasdaq strong, up 44 points on the session premarket. congress is kicking the can on a government funding bill post poponing a fight over a government shutdown. here to talk about all of it is u.s. formgovernor senator judd gregg. let's talk about it. >> all at once >> they mash it altogether what's happening behind the scenes >> they're waking a deal they will reach an agreement >> for the government funding or tax bill >> for both. the tax bill will begin in '18, they need the bang that will come from the corporate side for the economy going into the elections. it's real-world politics right now we're in a period called survival politics >> what does that mean >> republicans know they're in deep trouble if they don't do something and

do it fairly quickly and have it be reasonably substantive they will get torched in the next election >> either way. it's not a popular thing >> appears that way. the only option is do something to avoid that. a significant tax reform bill, this is tax reform on within side, the other side it's chaos. on the individual side it's chaos. corporate side it's tax reform >> why not just pass the corporate side why wrap the individual side into it? if the individual side is a mess, there's fighting on t everybody can agree on the corporate side >> then it's not tax reform. it's a corporate tax cut >> and politically it's not viable you have to do something on the individual side, because you're trying to get points going into the next election cycle. there used to be something in the senate where you could divide the question. had i been there, i would have

moved to divide the question and vote for the corporate side and not on the individual side but they need a bill that addresses the individual side so they can posture it as benefiting middle income americans. this bill can be postured that way, but in the end it's just a res reshuffling of cards it's not a significant improvement in the way we tax people it's not tax reform. what if we cut spending and cut everybody's rates more >> that would be great that doesn't happen, though. >> i know. but you need to do the nondiscretionary stuff >> the core of the deficit issue is entitlement spending, specifically the retired population we doubled the retired population the systems are not set up to support that the medicare system, the medicaid system soon and certainly social security are all functioning in massive deficit. you have almost $80 trillion of

unfunded liability in those three accounts that's driving the deficit, not the tax bill >> it wouldn't be hard to fix, but you have to speak the truth. >> we did it -- we're done it. we put forward plans to do that simpson bowles fixed social security for 75 years. it doesn't affect people who are presently on it in a dramatic way. medicare is more difficult healthcare is the driver of the federal budget, federal deficit. it's where all the issues are when it comes to getting spending under control and getting our economy to not have a massive deficit and debt issue. >> where do you think the ultimate rate will be? >> i think 21. >> 21. >> split the difference? >> yeah. >> because >> because they need that -- they probably will need money. and i've -- you listen to the president, you never know where he is. but it appears he's willing to

negotiate. i don't think they'll go to 22%. the house will never go to the senate position. so i think 21. >> interesting i thought it would be nice do what we said first, then you have more leeway with the individual side. they said they'll do this first, paul ryan says -- >> the way do this is go around and step on everybody's toes really hard on the deduction side eliminate a significant amount of deductions and exemptions, so you can bring the rates down dramatically let's say you get the rates to 26%, you still have to have 85% of the taxes being paid by the top 0% of income people. you can do that if you reduce deductions and exemptions. >> what's the problem with the individual side? what's the biggest mess? >> 39% rate means that people in the top brackets will invest to avoid taxes, they won't invest to get the best return

if you're going to do substantive tax reform, you should create a tax law that says to people, go out and invest for return, don't go out and invest in cattle futures to avoid taxes. >> the idea was to get rid of salt and lower the top rate to 35 but you get rid of it and you don't lower the top rate >> it's a huge tax increase for a lot of people. >> yes >> i come from the low tax state. >> but the maple syrup is not as good as vermont. >> they put motor oil in theirs to give it more flavor so, from our viewpoint, it's inexcusable that i'm underwriting the profitness of new york -- >> new york has rich people that pays a lot of federal taxes. >> i heard you yesterday, talking about what wonderful things people of new york do for the rest of the country. we do it in new hampshire as

well >> not really. >> we help out the country >> so you do, but how do you feel about some other states >> this is a country where -- >> we're altogether. >> if some states are not doing well, they get the benefit of states not doing well. there's no reason why i should be paying for the pension system of new york, illinois -- >> where they elect democrats that don't negotiate down benefits to all the state employees. everybody is bought. >> some of the states take money from the federal tax bills, they're doing it because they have low tax rates, so they have to bring in money from other places >> the formulas that drive most of the spending that comes back -- income that comes back to the states from the federal government are built off of low income structures. so states that have a large percentage of people who are in the lower cord will get more those states don't throw a lot of money into the federal

structure. >> if you were paying 39.6%, let's say the highest rate is over $250,000, you are really wealthy in some of these states if you make 250,000. in new york you're not wealthy if you make $250,000 having a progressive tax rate without considering the cost of living also puts -- >> well, move. >> why do you live here? >> the wealthiest people do. >> of course they do but the people trapped in these jobs can't >> entire areas do -- >> the wealthy people do move. >> historically people in this country moved for weather, family, jobs >> but lately it's because of taxes. >> illinois is being tradrainedy texas. >> i hate the heavily local taxes in new jersey where i live, i watch elderly people get forced out of their homes because they can't afford the property taxes i think something needs to get

done every politician has promised to come in and do something about it and failed. >> there's no reason to incentivize state governments. >> is there a way to put this in slowly over time so states can adjust to it, instead of saying january 1st this is what happens, good luck with it if we were going to do the border adjustment tax, people said it would be a problem -- >> i don't think it should be phased in. what do they do when you stop putting -- cold turkey >> tough love is what you're saying >> state politicians won't react to this. new jersey will not change i hate to tell you this. new york will not change illinois will not change it's just the nature of the pliolitical systems in those states which elect these governments which are dedicated to re-electing themselves. >> i would re-elect them, too. >> it's -- i just think the

philosophy of one state having to pay for another state's effective government -- >> we had corzine give a speech, i'll fight for you, for your benefits he was the governor of new jersey talking to the public union saying i will fight for you for -- >> this is the most cockeye conversation you know what i think. states are giving up way more money -- >> new york, has the best sports teams, best schools. >> if you're saying nobody should subsidize anybody, that's saying no state should subsidize other states >> no. >> that's the thing. >> you could carry it to that extreme. >> that's the way you have to go >> no, you don't no, you don't. i don't mind having new hampshire pay into the federal treasury and having the federal treasury redistribute based on need of states i mind that new hampshire is now

being asked to basically underwrite new york, when new york decides to have a pension system for people where they retire after 20 years at full pay -- >> that's like deciding where your money goes for what reason. i understand that by i can understand the approach saying i don't want to subsidize -- >> the whole thing is crazy. >> what she should have done is eliminate all duiodectns and exceptions >> i agree >> when we come back, more we'll talktaxes. see a breakdown of costs. what? it's just....

we were going to ask about it but we weren't sure when. so thanks. being upfront is how edward jones makes sense of investing.

hello there friend! hi! hey there. i'm an imaginary friend of a kid just like you. you're going through a lot right now and i know you're scared. but you're stronger than you know. but look, we'll get through this together. and remember...

we at the imaginary friends society always have your back! welcome back china closing the gap with the u.s. when it comes to a billion dollar startup pdd is one of those unicorns -- what >> was it didi or doo-doo? roll the prompter back >> can i tell but this, please >> pin duo-duo -- >> the way i heard it said when i was in china was doo-doo

it's the mix between an e-commerce platform and a social network. here's the idea. you buy in bulk. so you get your friends -- >> like costco >> to buy with you i asked the co, a former google engineer about the competition, and what seat bets the company t >> all e-commerce outside is competitive. on the over hand i don't see them as competitors, because we created a scenario which is very different than search. it's kind of a soesh social -- t of social elements in it i would rather think we're in a new continent. >> do you plan on bringing this eventually to the united states and other countries? >> i think we will and i'm fairly confident that it will be sort of successful overseas as well >> what was the greatest lesson working at google?

>> well, i think the thing that i learned best from google is that the company culture is important. it will guide you to the right path especially google's experience made you believe that do no evil is a very good proposition what is the difference between the u.s. consumer and the chinese consumer >> well, to be honest, i don't think there's much difference. it's just that in china the offline business is not as mature as in the united states and on the opposite side, the online business is -- at this stage, is actually more advanced, i think, than the united states. the social adps and the mobile payments, i think, at least three years advanced to the u.s. market

>> when you think about going global and all of the other retailers out in the world, who else do you look at as a model >> well, for all people doing e-commerce, we look at amazon. amazon is amazing what it did was inspiring. i don't think there's just one e-commerce site in the u.s. or globally there are other ways which are not search based, and also new models that fits the mobile internet better. also the majority of the goods in the u.s. are manufactured in china. >> pdd already has 200 million users in china what's fascinating, already talked about this company making 10 billion and $20 billion a year in revenue. they're the fastest growing e-commerce company in the world. the idea is if i wanted to buy a toothbrush, instead of me buying it for $3, if i could get my

friends to buy a toothbrush at the same time, we would by it together >> buying in bulk and bring down the price. >> my idea is go to an all-you-can-eat buffet we pool our resources. one of us pays, the other just brings -- keeping bringing stuff out to the table can they stop you? >> in the old days -- >> you thought about it. i can't get over you on anything you already did this when we come back, the big business at breakfast. we'll talk to the cofounder of nosa yogurt, she had no dairy background butispt t druedhe market by full fat yogurt.

what if we could keep more amof what we earn?d. trillions of dollars going back to taxpayers. who could possibly be against that? well, the national debt is $20 trillion. as we keep adding to it, guess who pays the bill? him. and her. and her. congress, we should grow the economy. not the debt. ♪ flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income.

that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. ♪ ♪

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

welcome back to "squawk box."yogurt. joining us right now with what it takes to break into the dairy biz is coelle. >> the australian bird >> we're a big yogurt crowd. at least i'm big yogurt. we like chobani, and i'm into sigis. is that okay >> i know sigis. sigi is a good friend. >> it's 2004

i was going home to visit my family i'm an aussie ex-pat living in colorado in australia introducing my family to my now husband, and we just walked back from the beach. i stopped in at a little local corner shop, picked up some yogurt, and a few minutes later was having my first taste, and it was literally the best thing i had ever eaten that ultimately sparked an obsession. >> with yogurt >> with yogurt >> you had never had yogurt before >> i grew up eating yogurt i was eating yogurt, but this was like unlike anything i had ever tasted. it was just like eating velvet it was sweet it was tart. it had passion fruit puree essentially i went back to colorado, started my own sort of yogurt ph.d. two years later i went back to australia, contacted this australian family, and got a recipe, a license for the recipe came back. i thought i'm going to start a yogurt company partnered with a fourth

generation dairy farmer, and here we are. >> where do you make this? >> on a family farm in colorado. >> in colorado >> uh-huh. >> price point >> where in colorado >> we're an hour north of boulder. >> i'm based in boulder, and the farm is just north of fort collins. >> what's the health story here on yogurt? there's sort of a mixed bag it feels like these days. >> i mean, when we launched noosa in 2010 everything was low fat, no fat, and we stormed on to the stage in this eight ounce tub transparent, whole milk, and so we were -- >> whole milk? >> yeah, whole milk. full fat wrrks we were going for full flavor. we were really bucking all of the trends at that point in time you know, fast forward to 2017 when you look at what is sort of coming into the category, there's a lot of whole milk entrants people are really embracing dairy fat. it's not the bad guy it once was. >> whole milk tastes great the protein levels are high. what concerns me about yogurt in general, though, is the high sugar levels

having been a gestational diabetic, when you are looking at those numbers all the time. >> we understand that. really, i mean, we have always been very transparent about who we are we're about making bloody delicious yogurt, and, you know, when we think about how people are sort of living their lives and sort of -- it's more balance. you know, i think when you look at the category, what is declining is low fat and diet yogurts. >> who is your biggest competitor right now who do you wake up and think about and worry about? >> i wake up and think about noosa and making sure that we are making the best yogurt in the category you know, obviously we think about our competitors. in a friendly nice way you know, i'm an aussie. i'm a good competitor. really for us, you know, we think we're uniquely positioned. we're growing in double digits that's what we're focused on >> can i give you my business idea while i have you here frozen yogurt. i'm not joking

>> and it's on our radar >> it is >> absolutely. >> nobody in yogurt companies do frozen yogurt. seems like an obvious -- >> is this gran oela you put in? what is the one that tastes most like you shouldn't be eating it? >> you are going to have the carmel chocolate pecans. >> perfect thank you. that's what i needed to know where. >> indulge >> first thing you say is i can't believe it's sunny again in boulder because it's every day. >> i know. >> smart great place. there is nothing north of boulder, though. is it along the flat irons there's nothing north of boulder. it's flat. >> we have to go, but can you get this do you love this >> my noosa spoon. >> jobs report countdown coming up while i indulge >> i love this one >> this is really good thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms... again.

and online equity trades are only $4.95... i mean you can't have low cost and be full service. it's impossible. it's like having your cake and eating it too. ask your broker if they offer award-winning full service and low costs. how am i going to explain this? if you don't like their answer, ask again at schwab. schwab, a modern approach to wealth management. it's life insurance and wharetirement solutions toic? help you reach your goals. it's having the confidence to create the future that's most meaningful to you. it's protection for generations of families, and 150 years of strength and stability. and when you're able to harness all of that, that's the power of pacific. ask a financial advisor about pacific life. ♪ for every hour that you're idling in your car, you're sending about half a gallon of gasoline up in the air.

that amounts, over the course of the week, to about 10 pounds of carbon dioxide. growth is good, but when it starts impacting our quality of air and quality of life, that's a problem. so forward-thinking cities like sacramento are investing in streets that are smarter and greener. the solution was right under our feet. asphalt. or to be more precise, intelligent asphalt. by embedding sensors into the pavement, as well as installing cameras on traffic lights, we will be able to analyze the flow of traffic. that data runs across our network and we use it to optimize the timing of lights, so that traffic flows easier and travel times are shorter. who knew asphalt could help save the environment?

we that's why at xfinityic. we've been working hard to simplify your experiences with us. now with instant text and email updates you'll always be up to date. you can easily add premium channels so you don't miss your favorite show. and with just a single word, find all the answers you're looking for. because getting what you need should be simple, fast, and easy.

download the xfinity my account app or go online today. good morning big brexit news. the european union and the u.k. striking a divorce agreement bitcoin on another wild ride this morning this was the woke we saw the crypto currency surge to $15,000 and then $16,000 we'll ask someone who eats, sleeps, and breathes bitcoin about all that volatility. plus, a check of your calendar it is jobs friday. we're about 90 minutes away from the big number and the markets pointing to a higher open ahead of that report it's friday, december 8th, 2017. second hour of "squawk box" begins right now ♪

good morning welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square. i'm joe kernan along with becky quick and andrew ross sorkin did you have your jacket on? >> i did have my jacket on >> that is a first that is a first. because you didn't have time >> stepping out. >> that is a first our guest host this morning -- it's a friday thing. it's kazral friday >> i should have worn my sweater. >> we got to drag those back out. our guest host this morning, i'm telling you, grasso and adami, i don't think they've ever done 7:00 to 8:00 i don't think they've ever done 7:00 to 8:00 you're going 7:00 to 8:00. >> halftime show it's a different show than the 5:00 p.m. show we've gone over this, joe. >> that's not the point. you're from one of those things. fast, half, whatever it is they only get to do 6:00 to 7:00 it was a compliment. they do 6:00 to 7:00 you're going 7:00 to 8:00. >> i appreciate the compliment, and i enjoy being with you

>> 7:00 to 9:00? >> i would be here 6:00 to 9:00 if you wanted me >> that's great. joe terra nova he is a senior managing director at vertis investment partners. he is also a cnbc contributor. let's get a check on the futures this hour. you're on the 5:00 or the noon >> i am on the halftime show with scott wapner, which i know because you have been on the show >> all right all right. all right. >> we've enjoyed you on the show as well. >> thank you >> don't lie >> in europe there's -- we're no longer up triple digits. up 93 on the dow the nasdaq up 38 a little less than what we've seen there there's europe, which is green across the board some nice -- pretty nice gains really the dollar i saw was a little bit stronger up versus the euro, and the ten-year backed up a little in yield. we were saying, wow, it's 32 again, and the ten-year is, i don't know -- earlier i saw 238 more so. >> okay. let's get you caught up on today's top stories. here's what's going on

we are watching the price of bitcoin because that's what we do it is swinging wildly. we'll show you what's going on the bit stamp exchange right now you can buy it for $14,800. it's even just jumped right. there's two different exchanges. there's multiple exchanges on coin base. it's trading for a bit more right now. we're going to talk much more about crypto currencies in the next hour. >> yesterday we put -- i think we may have put a bug up that had a constant bitcoin quota on fast money, did you do it >> the halftime show >> i'm sorry halftime show. the plaza. no, we did not we had leon cooperman on it. >> he said some really interesting things >> the fact that the president asked twice about amazon implies he didn't -- implies he didn't like the first answer because the first answer was no, so the

question was presented again >> now do you think it's monopoly >> right that's fascinating that's a risk. that's a big risk of 2018. >> all right meanwhile, in washington congress passing a spending bill that aveterans a government shutdown at least for now. the house and the senate delaying the funding debate for two weeks to buy some time to finish tax reform which will then begin the conference process next week. also, wal-mart making a last minute holiday push for procrastinator procrastinators. the company announcing it's -- >> it's only december 8th? >> i haven't done anything it will qualify more items than ever for same day in store pickup it's an effort to capitalize on the 90% of americans wholive within ten miles of wal-mart store. the service runs up to 4:00 p.m. on december 23rd with a pick-up cutoff of 6:00 p.m. on christmas eve. >> tell the truth. do you do any of the shopping for christmas presents, or is it all polare >> i -- >> do you buy anything for her >> i always buy something for her. i have some stufr for the kids

i'm not a total scrooge. >> i need to get a tree. >> i was thinking guy, not a grinch >> i didn't get one yet. >> we're doing it this afternoon. >> you either get one early and it goes down after christmas, or you leave it up for a couple of weeks. >> we're going for 4:30 this afternoon. buying the tree. >> you better go today i'm surprised you're not talking about tomorrow because -- >> what is that charlie brown, like, sad looking thing? do you get an actual tree? >> we go eight feet. >> do you really >> we do >> that's awesome. >> high ceilings you should see his place >> i have a 20 footer. >> you do? >> yep >> we got to talk about -- >> the backyard. okay >> this tension between halftime report and fast money, i thought halftime report was like an off shoot of fast money. i thought it was very similar that one came from the other it was like why is all this tension between the two? >> joe, you know we all work together >> that's what i wanted to hear. there's no i in team

>> you totally missed what i said you're not happy you guys aren't upset about tomorrow, six inches of snow, first snowfall coming? >> i'm not ready for it. i don't have my tires -- >> i heard flurries. you sure >> six inches. >> they said four to six >> it depends. we'll see. >> okay. all right. new this morning, the u.k. has reached some kind of deal. this is taking forever, isn't it a brexit deal with the e.u villa marks joins us now he is live in london fill us in >> you may not have done your christmas shopping yet, but theresa may studying for a giveback from brussels to london you can see the pound not reacting so well right now today when the deal was announced with jean claude, the commissioner, a massive spike. we've lost a lot of the gains. we're back into negative territory against the dollar essentially the deal we've had today is an agreement to start talking about trade and transition theresa may very happy politically back here in the u.k. because, of course, she can show some progress here's what she had to say about the agreement so far >> we're a country that honors

our obligations. after some tough conversations, we've now agreed a settlement that is fair to the british taxpayer it means that in future we will be able to invest more in our priorities at home, such as housing, schools, and the nhs. >> so the issue obviously the u.k. still going to be spending tens of billions of euros. spending back over to brussels as part of their commitment to continue funding essentially the european project long into the future they're pushing for a two-year transition deal. that will now be the focus that will allow businesses to try and figure out what their plans are going to be as that new trading relationship is then figured out. of course, the europeans, jean claude here very happy man today he has seen every single issue that he wanted concessions on has been met by the british the british going to the second round of negotiations talking about future trading and that is a real, real challenge for them to try to get what they want given how much leverage they've already lost to the brussels led european commission. >> all right thank you very much. folks, back here in the united

states it is jobs friday we'll be getting the november jobs report in less than 90 minutes. steve liesman joins us right now to tell us what we can expect. steve. >> looking forward to the number we should get the first true reading on the job market in several months as most of the data distortions from the hurricanes wash out. dow jones consensus looking for 195,000 jobs there that's off of 2 61 that 261 was elevated by the really lackluster number we got in the prior month unemployment rate 4.1% unchanged. average hourly earnings should be healthy goldman sachs saying our forecast reflects some additional normalization in hurricane affected regions as well as above trend retail job growth associated with the early thanksgiving the arrival of over 200,000 puerto ricans in florida also boost payroll growth this month. it's kind of an interesting development. now, look at the three-month average of job growth. you can see it's supposed to be the thing that is stable, but it wasn't stable because you had all those hurricane egyrations.

they popped back up with a strong october number. here's the question. what is underlying job growth? closer to 200 or closer to 150 most economy 'tises say the underlying job growth of growth in labor forces near 150 folks, could the unemployment rate slip into the threes in the wake of a couple of quarters of 3% growth? does that mean three or more rate hikes by the fed next year? right now fed funds futures traded with a 60% chance of two rate hikes now and about a 23%, 24% chance of that third rate hike that's where we are right now. >> i mean, i feel like this is really late with these numbers today. >> what do you mean late >> it seems like it's mid-december, and we still don't have these numbers this is the latest you've ever been i would hope -- >> which numbers >> jobs report on december 8th >> i see >> i understand that just really you got behind >> we didn't have time to make them up. >> right i don't expect any revisions from this. you have the right number -- >> do you see jack doing the

numbers now? >> you have the right numbers now. right? you've had until december 8th to do them. hopefully there's not all these revisions and stuff. you are more confident >> that's an interesting question, joe. it's a later jobs report >> we should have a better idea. >> they should have. i don't know i don't know the question is do they button it up at the same time >> they don't need a revision. this is going to be the final. >> this would be it. >> that would be plenty of time. >> that would be good. >> i know poul believes that, and that's a big impact on policy here. >> all right let's bring in a few more voices

on this. steve wood is here he is chief market strategist at russell investments. ryan is deutsche bank senior u.s. economist and joe terra nova is our guest host today what do you think about this just in terms of the number, you have a slightly lower expectation than the consensus >> to your point, it is tis the season, and careers and messengers tend to give you upside around november and december sflu look on the year over year of nonfarm pay roles, and that keeps it in line with 1, 4 you are going to get down to 1% over the next several quarters as the labor market continues to tighten. >> steve, let's talk about what steve brought up, and that is the idea if we actually see the unemployment rate fall into the

threes, does that signal a third rate hike next year and how will the market react >> i think we will -- >> what that means is with all due respect to bitcoin and other, i think the two to ten spread right now is sub 60 basis points the flattening of the yield curve is a robust information. we don't have a recession forecast for the u.s. next year, and we don't necessarily have a correction forecast, but we think when you start ticking up, you know, deceleration and earnings, deceleration in the economy, the flattening of the yield curve is not a bad time to take high valuations in the u.s. and rebalance globally it's not necessarily a negative. it's a rebalancing opportunity

>> everyone sees further flattening why is that occurring when we're talking about corporate tax cut possibility for an infrastructure spend you are seeing a 3% print in gdp and why should we be so concerned about this >> first off, i think the fed is very comfortable tightening into mediocrity they've been in that stance for 2017 i think they'll continue that into 2018. >> only when it gets to zero i'll send you the chart, joe, but it gets down if falls it does not signal >> in japan, again, i looked this morning, and i was, like, trying to do the math. if it it's for -- if it's .05%, how much is that that you get

every year is it a half a cent? is it -- it's .05% >> it may be independent of the data, but it also shows that there's some limitations of what the fed is going to be able to accomplish thus, the flattening >> by the way, japan is at a positively sloped curve in and of itself for the past two decades. >> it's a synchronized global

growth in an environment there's an expectation of inflation because there's all this growth going on we have never tested the new global supply chain, and i think the amount of supply out there is one that makes it very difficult to create inflation. i don't think the fed is on board with this thinking yet i think they're going to go et there if we do 2.5%, 3% growth, and europe is growing and japan is growing we've never asked the chinese to work hard in terms of churning out stuff and really testing the amount of supply that's out there in china, in southeast asia, in the united states, in mexico it's now a new global supply chain. it's very hard to create inflation. >> i would leave that in too when in doubt between the equity market and bond market, let's go to bond market there's more information there i think that the fed right now is looking at this inflationary environment. they want to be ahead of the curve on this, but i think they want to have enough policy, wiggle room in 2019 when we're going to see a likely deceleration

half a cent per dollar i think it's 50 cents. anyway, intensifying in southern california 200,000 residents told to leave their homes. a live report from venturaig rht after the break. stay tuned you're watching "squawk box" on you're watching "squawk box" on cnbc t-mobile covers your netflix subscription... best christmas gift ever! ...so you can binge watch all year long. now you're thinking christmas! and now when you buy any of this season's hot new samsung galaxy phones, you get a second one free to gift. that's one samsung for you. and one to give. t-mobile. holiday twogether. you myour joints...thing for your heart...

or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember.

we that's why at xfinityic. we've been working hard to simplify your experiences with us. now with instant text and email updates you'll always be up to date. you can easily add premium channels so you don't miss your favorite show. and with just a single word, find all the answers you're looking for. because getting what you need should be simple, fast, and easy. download the xfinity my account app or go online today.

a developing story we're watching in southern california. the wildfires are intense. hundreds of thousands of people have been told to leave their homes, and adidi roy is in ventura and joins us now what is the latest >> good morning to you, joe. we are standing in one of the hardest hit neighborhoods in ventura, which has been targeted by the thomas fire that's the largest one burning throughout the state right now, and it's dark right now, so you might not be able to make out what's behind me, but that used to be a home it has turned to rubble. over on this side, though, you can definitely see the burnt out cars the numbers have really swelled overnight. let's see where we stand throughout the state right now there are six wildfires burning throughout the state. major wildfires. they have scorched 141,000 acres. 500 structures have been destroyed. yesterday that number was just 150. that number has really swelled 23,000 homes are threatened, and

they have prompted 190,000 evacuations. those evacuations and the road closures are having a huge impact on commerce business in this state as well yesterday i talked to a local produce guy. there are so many restaurants locally that are shut down he is losing $1,000 a day. what that means for him is half his business every single day. we also stopped by a local pub it's a place where community members gather they have said that half of their staff has been displaced because of the evacuation orders they've also lost a lot of business, and they say because of the boil water restrictions, that's putting some tough restrictions on their kitchen as well >> we can't use our soda machine. everything is canned, bottled, in terms of water, sodas, things like that. we don't have any ice for our cocktail it's warm cocktail weekend >> she also says they have to wash all the dishes with bottled water. obviously, that can get really expensive. they say they're okay with that because they want to be there

for the community. we also want to point out there's another fire that's really blown up down near san diego. that went from 25 acres to 4,000 acres in just a matter of hours, and we'll keep you posted on that as well that prompted the governor to declare a state of emergency for san diego county as well back to you, joe >> all right unbelievable thank you. coming up, real careers and virtual reality. where the jobs are on this jobs friday next, stay tuned that's next. anyway, stay tuned "squawk box" will be right back. take a deeeep breath in... and... exhale... aflac! and a gentle wave-like motion... liberate your spine... 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. so he had your back? yup in just one day, we process, approve and pay. one day pay. only from aflac

now the answer to today's aflac trivia question. what was the first book sold on amazon.com the answer fluid concepts and creative analogies, computer models of fundamental mechanisms

of thought we're looking at virtual and augmented reality. kate rogers joins us now from the bronx this morning good morning to you, kate. >> hey there good morning to you from under the sea. we are talking about virtual and augmented reality. the u.s. is on track to spend some $3 billion on vr and ar this year alone and the industry is seeking talent beyond just video games as this technology gets applied to energy, medicine, transportation, and so much more. >> it's about 11.3 billion that is expected to grow to $215 billion by 2021. >> virtual reality replace your reality, whereas augmented reality bridges the gap between the physical and virtual worlds. >> it will create more immersive

experiences for us as consumers, and it will improve productivity and quality and performance in organizations. >> that growth is creating new career opportunities eon reality in irvine, california, is seeking to hire more than 100 new employees. >> we obviously look at people that know have programming skills, that know how to build this type of rather sophisticated application, and on the other hand, we are looking at people that know modelling, know how to create this sophisticated 3-d environment. >> finding workers with these skills is challenging as the technology is still in its early stages >> i think the most important thing is passion and creativity because you could learn these skills >> it can be tough to find new workers because the technology is still so new, and that's why they've teamed up with different colleges and universities around the country, including legalan college in the bronx where we're live from today to offer these

continuing education programs to hopefully get new workers and would be workers up to speed back to you, guys. >> okay. thank you for that when we come back, we are on crypto currency watch. check this out big differences in the price of bitcoin, depending, though, on which exchange you're looking at if you are confused, don't worry. we will explain everything you need to know when squawk returns in a moment. no matter how the markets change... at t. rowe price... our disciplined approach remains. global markets may be uncertain... but you can feel confident in our investment experience

around the world. call us or your advisor... t. rowe price. invest with confidence. hey. pass please. i'm here to fix the elevator. nothing's wrong with the elevator. right. but you want to fix it. right. so who sent you? new guy. what new guy? watson. my analysis of sensor and maintenance data indicates elevator 3 will malfunction in 2 days. there you go. you still need a pass.

good morning welcome back to "squawk box" on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernan and andrew ross sorkin. among the stories that are front and center this morning, the government's case against the at&t-time warner merger has a trial date it will begin on march 19th with no decision expected before the company's april 22nd deadline. the judge in the case said that he would rule in late april or in may at&t would have time to pay time warner -- would have to pay time warner $500 million if the deal doesn't close by april 22nd,

although it is not unusual for deadlines to be extended white house officials say that president trump will move forward with the infrastructure plan in january. democrats have signalled that it's an air area kir that they could work with the president on a proposal could involve $200 billion in federal spending that is designed to spur as much as $800 billion in state, local, and private sector spending. during his campaign, the president promised a vee vamp of roads, bridges, and airports it's jobs friday we're going done getting a november employment report at 8:30 a.m. eastern time forecasters calling for an increase of $195,000 in nonfarm pay roles versus $261,000 in october. the unemployment rate is expected to hold steady at 4.1%. here to check on the markets right now, check out the futures. if you're up over 100 at one point, and then they backed off a little still sharply higher up 89.5 on the dow the s&p indicated up a little over 10, and the nasdaq up just under 40

all this indicating another strong session for this jobs friday let's talk topic of the day of the week. almost the month at this point take a look at the price of bitcoin right now. there are several different exchanges. here's the important part. they are currently trading bitcoin. dom will join us line with some of the differences between coin-based, bit stamp, crackin and some of the others as those in the audience try and understand how this all works. dom. >> andrew, one of the more confusing parts of the bitcoin market, like you just mentioned, for those current and potential participants is the actual pricing of it. we're not just talking about that roller coaster ride we've seen in the values of bitcoin or other crypto currencies. a lot of it is actually what the price of bitcoin is and the short answer is there are multiple prices at least for the time being one example came yesterday as we saw, prices seemingly take out $1,000 marks at record levels every few hours while prices were, yes, generally higher and trending that way across the board for

bitcoin, that big $19,000 plus print that we really got a lot of headlines actually hoping -- dwul happened only on one platform, and that was coin base compare that to another market piece of data compiled by crypto currency industry site coin desk, which saw a run up over 17,000 at the highs according to its survey of average prices from a list of other major bitcoin platforms. now, what this does is it speaks to the decentralized nature of trading in bitcoin and other digital currencies prices that occur in one location or one platform aren't necessarily indicative of where they trade elsewhere from a platform or geographic perspective. going forward, if you look at our slabs and the graphics you are seeing there, cnbc viewers and cnbc.com users will see bitcoin and other crypto currencies you're also at times going to see prices with the platforms that they are coming from.

the kinds of price discrepancies that we're currently witnessing in crypto currencies are in many ways indicative of markets that are in earlier stage relative to, say, stocks and bonds. where there are centralized exchanges and truer consolidation tapes of record that that really tell us what stocks trade at what prices no matter what the location is. andrew, the bottom line is there is not a lot of price discovery yet with regard to what a bitcoin is actually worth. futures trading, that's going to kick off this weekend. it could be a big step in that direction. of course, if you are going to be trafficking in this stuff, you have to be aware of the different pricing mechanisms, guys >> thank you for that. we're going to continue this conversation joining us right now for more on bitcoin and crypto currency investing, nolan bowerly here is my question. if i could buy bitcoin on any one of these exchanges, which one should i be playing with >> if you could buy it on any exchange try and get the cheapest price

there is quite a bit of -- the previous guest mentioned there wasn't a lot of price discovery. that is bitcoin's price. it is all price discovery. certain jurisdictions have always had a premium particularly jurisdictions where monetary policy was a bit in flux we've seen bitcoin behave as a crisis currency this year for that reason. if you wanted to buy it in zimbabwe or venezuela where. you paid a real premium because of the hyper-inflation we saw there. even on a more institutional level, on a more, you know, economies that are a little more structured in japan, it's always been leading the price japan because of quantitative easing >> you find the cheapest exchange you could possibly find >> yeah. >> and then the question, though, is it easy to transfer >> it is super liquid globally you can get cash for it anywhere in the world >> and then the other question, though, and this was where joe was talking about in the 6:00 hour, do you consider this a currency is it want just a grand

speculation? >> it can behave as a currency as far as grand speculation, we're seeing a powerful tool that's useful for a lot of people >> criminals part of it >> who else? >> it has to be able to be convertible with other currencies you, therefore, have to remove the volatility from it >> so a lot of the exchanges have behaved as many services business they've been self-regulated. they saw themselves as kind of -- like any other in the world. they saw bitcoin just like yen or, you know, dollars or euros those guys have been behaving the same way they've followed the fin cen rules for money laundering that's all there that infrastructure has been developed over the years some of the earlier exchanges, which got into trouble, and were useful to criminals, no longer the case

>> how could you be a market maker for bitcoin? i mean, we would think that the second you're holding it, oours watching and going up 10%, 20%, 30% swings over a course of 24 hours auto something, you're crazy if you are the market maker who says, okay, i'll take it and buy it from you, and i'll make everybody whole instantaneously. >> it's been happening the volatility that we're seeing now is nothing compared to what it was years ago as the infrastructure was just being put in place what we see now is a lot of people that want to hold this. a lot of people who see a lot of utility in these crypto graphic tools. that's what they are, don't forget these are crypto graphic tools that move memory the memory has value for the first time ever something that was natively digital has become property. it's become property because it's not counterfeitable it can't be -- when we think of something that's digital, it's hard to imagine. >> when we talk about this idea of being forked, do you worry about bitcoin ever being forked

with different rules >> no, that's part of it you can think of money that we know today has been forked in a sense. gold used to be used for coins it's survived the end of it being coins. it's survived the rise of paper money, and then it survived the end of the gold standard it is what it is today after all these changes. bitcoin is the same. it resists all of these changes. it resists them from a technological point of view. imagine a system that hasn't been hacked. they spent zero dollars on security, and it hasn't been hacked >> how do you view it being launched on future exchanges >> i think it's really interesting. you have all these infrastructure that have been built over the years, and people talk about bubbles and all this stuff, but this downtown josh brown talks about this, and it's a great point, and it really said something to me this is the first "bubble" that's been done without banks it's been done without margins or credit, and here we are with this new digital asset class of currency it's many things at once

you can see it as a currency, but it can be other things too here it is behaving in this way. >> what are the other things it could be >> a store value store value is a part of it. >> back to that for a second how do we know this is not built on debt? how do you know that people that are buying these coins are not utilizing debt to make the purchases? >> it would be a personal line of credit to that extent the infrastructure is not there. >> it's also debt. >> it's not the kind of margin trades and the kind of infrastructure that's gone in that has fueled other bubbles. you're not seeing institutional money come in in this way. now the infrastructure is there, and we're seeing the opportunity for institutional money to come in >> do we know, by the way, whether even this past week or past two weeks how much of this has been true individuals, the retail investor versus institutions that have sometimes jumped into this that we're not aware of do you have a sense of that? >> we do you know, we hear a lot of chatter and coin desk itself has

a wonderful perch, and we've seen this start from the very beginning. we know in the crypto currency markets that there's been part of a fork that -- a soft fork this summer and started new tools that can plug into bitcoin that will make it useful as a currency it's called segregated witness, and it's allowed for the lightning, the state channel crypto to go inside of it. >> the ownership -- the retail versus investor class who might have been investing or over the past week and a half when we've been on this wild roller coaster, what -- who do you think is driving that? is that a retail investor watching in going, oh, my goodness, the train has left the station. i jumped the train >> i think it has sparked conversations about the nature of money, the nature of trust in money, and that has helped crypto currency people come in >> just basic retail versus -- >> pension >> retail. >> this is pension fund. >> it's a lot of crypto currency people think the institutional money is coming so there probably is a lot of speculation with them saying, okay, i'm going to cash in on them, on this institutional money coming

in >> the retail guys will cash in on the institutions. >> it's usually the opposite way around that's what's new. >> they think that they're going -- they think it's going to drive the price up eventually and they'll be able to reap some profit you have to imagine that a lot of people in crypto currency are never selling. >> store value >> in a zombie apocalypse, in an electromagnetic pulse from north korea that shuts down the internet for hours >> it's being broadcast on short wave radio they've launched satellites into space. you can survive. >> with bitcoin. >> oh, yeah. yeah they're broadcasting >> there's a plan right now to broadcast billions on short wave radio. >> it's short wave radio that allows me to have a store value in bitcoin >> it sure will. >> no one gets -- in the apocalypse no one gets paid. >> we'll have other problems at that point >> last thing because i know we have to go the producers want us to go. are you storing your bitcoin in the cloud on, like, a -- >> absolutely not. >> or are you doing it on a hard

drive yourself >> most people do it on little drives custody is part of the problem here we have to solve that problem. that's what's so new >> that's a big one. >> it's a big one. >> if you lose your flash drive with your codes. >> the key the keys are bare instruments. that's one of the neat things that's happening with institutional money. there is now a way to get exposure without having to solve the custody problem. that's where we're at this week. >> okay. come on back we're going to continue this conversation there's so much more to talk to you about. >> we're going to talk about the singularity and downloading y i brain with another guy i was supposed to lead this guy, and you are going to lead the singularity guy. anything is possible thanks for cinomg in >> "squawk box" will be right back i'm a small business, but i have... big dreams... and big plans. so how do i make the efforts of 8 employees... feel like 50? how can i share new plans virtually?

how can i download an e-file? virtual tours? auto always done... dream more, dream faster, and above all... now, i'll dream gig. now more businesses, in more places, can afford to dream gig. comcast, building america's largest gig-speed network. now more businesses, in more places, can afford to dream gig. we cthen we are toldrld it's braver to go it alone. ♪ that independence is the way to accomplish. ♪ but there is another way to live. ♪ a way that sees the only path to fulfillment- is through others. ♪

that our time here can be deep beyond measure. ♪ no one who chose interdependence ever found despair. ♪ because what the world taught as weakness, is in fact our greatest virtue. ♪ and high-dividend strategies. sure, these are investments. but they're not what people really invest in.

what people really invest in, is what they hope to get out of life. but helping them get there takes a pure focus. because when you invest their money without distraction, hidden agenda or competing interests, something wonderful can happen. they might just get what they wanted out of life, and maybe even more. ♪ auto. that was an easy subject,

bitcoin. now we're really going to go somewhere. the's for immortality, which is neck and neck with the race for immorality, which we seem to be achieving on a daily basis anyway, the race for immortality, i almost missed the t, and wealthy individuals paying for longer lives is the subject of this fascinating book that's a future described in a new book which is fiction, i think, called immortal life, but it's immortal life soon to be a true story by business columnist stanley binge. we should mention that it's a pseudonym for cbs executive bill schwartz the purpose of this segment for this purpose, we will call you stanley. is that good >>. >> kids have a little thing called -- flat stanley you're not flat stanley. you're definitely 3-d. you might want always be if this works. >> absolutely. you know, it does work >> this is fiction, and we are talking off camera because you,

for years, have written about ceos and corporates, not always in the most favorable light. >> while it works for people -- >> google has a longevity project. the idea is not just to achieve longevity at an old age. extreme old age, but to actually renovate yourself and appear as a new person with the same consciousness, with the same personality that you have >> if you believe in neuroscience, you realize a lot of our consciousness is mediated through physiology >> sure. through electronic circuits in your head. >> newerurons, obviously theoretically it would be desirable to design hardware into that in some kind of machine, human hybrid, right >> i think you want to be a

human being in the next iteration of yourself. what's the point if you are a machine, and you're not feeling anything, right? >> you could be like a james cameron movie. you could fly around with a tail >> i think it's a lot more fun to come back as a 30-year-old person with all of his hair. >> that's in your book it's 127-year-old mogul billionaire. >> trillion air, actually. >> and there is greed and evil involved with this too because the person whose body he gets. >> i think they would be able to create people. there are organ being printed. you put it together. there are problems, but in the end you end up with a person it's not a robot it's a person. as long as there's life, there's consciousness in that person his function is to receive the entire consciousness of this 127-year-old mogul who has

extended his life to a certain point, but the machine is not working. he is not comfortable. you're not having fun. you want to be a young person again. >> he takes vitamins he wants to live until 19 or until 2,045 where he things singularity will occur we don't know what's possible after that, right? >> you know, i find it -- i love what he writes, and i like all the things -- >> would you go for it >> i hope -- >> don't you work out every day hoping we make it to 2045? >> i don't intend to work out for another couple of years. >> this happened in the movie "get out," by the way. >> i was asking off camera, can you have a soul and still have this consciousness >> you know, with the -- you see the brain as a computer. >> right >> and you back up the computer.

you put it up in the cloud, and then you download it back -- >> it's an iteraiton of you, though >> it may be everything but what we call the soul, right? that might not be electronic >> it's like the duality of life >> we don't know what we don't know about the soul. some parts could add up to more than what we think >> the whole notion that artificial intelligence is going to be superior to real intelligence, i don't know >> if it's a billion times all the human knowledge cumulative >> it will have the capacity to learn and as long as it has the capacity to learn, it has the capacity to make mistakes. >> the amazing thing is how will it feel about us will it be ambivalent, hostile, or friendly? >> i hope it's more friendly than i am. >> there's scientific -- there's science fiction genre all about what the exact -- >> i think it's a nice world that's created in my book. i don't think it's some grim reality. i think it's a lot like -- >> how do you slam ceos and corporate greed, which you have had a long career of doing to

some extent? is that involved here? i would think if you get a tycoon who for personal reasons is trying to further human innovation to this point, i would hope we try to become immortal someday if the government can't do it, if a tycoon does it, why is that bad? >> it's not necessarily bad, but i do think you'll create two classes of people. >> we already have two classes we have about 100 different classes. >> it's pretty deep here because it will be -- one class that lives forever and one class that still dies that's kind of a big divide. >> it's a digital culture described in a book, and it leads to happiness or better humanity or better people. in many ways it separates us from our humanity. >> all right

what do we -- what stock do we buy based on this? >> anything that -- anything that has to do with -- >> downloaded into your pain bitcoin can be in your brain with you >> the target age. >> guys, everybody is going to wait and just get an actuarial person in here, and they'll go crazy. >> do you know what 6% compounded >> it's still notvery much >> i'm listening to all of this and thinking if we're all living to 120, we've got to fix the health care system in this country. >> that's going to be -- >> on the other hand, if you are able to transport your consciousness to a brand new body, maybe you don't need as much where. >> okay. stanley, thank you >> it's a pleasure >> we can talk more about this >> i have nothing. >> i'm fascinated by it. >> i think it's a great idea we always talk about this. we're hopeful, but we still pray just as kind of a backup you figure that still might be -- >> i think all of this is the backup and praying this kind of thing

>> i agree >> thank you thanks >> okay. coming up, elan musk picking a fight on twitter this time with the coo of boeing that story next. right back in just a moment.

i think that she's a very nice girl... you never got the brakes looked at? oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies see it- and see it through-with digital.

>> elan musk is daring boeing to beat him to mars tesla and the space ex ceo posted a challenge on twitter after boeing's chief said they would be the first to transport humans to mars in a response to an article

about the bold bet, elan musk tweeted, "do it. earlier this year musk laid out his goal of sending large groups to the red planet as soon as the year 2022. when we come back, just about 30 minutes to go until the payroll is released. we have our jobs panel standing by full coverage of the market reaction is coming up. in the meantime, check out the futures. they've been higher all morning long the dow futures are still up by 83 points above fair value s&p futures indicated to open up by 10.5 brsh the nasdaq up by 42 stay tuned you are watching"squawk box" right here on cnbc zar: one of our investors was in his late 50s

right in the heart of the financial crisis, and saw his portfolio drop by double digits. it really scared him out of the markets. his advisor ran the numbers and showed that he wouldn't be able to retire until he was 68. the client realized, "i need to get back into the markets- i need to get back on track with my plan." the financial advisor was able to work with this client. he's now on track to retire when he's 65. having someone coach you through it

is really the value of a financial advisor. flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors.

before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. . breaking news. jobs in america. the november employment report is just minutes away our panel of experts standing by with everything you need to know the numbers, lightning fast analysis, and the instant market reaction a special hour of "squawk box" begins right now ♪

good morning welcome back to "squawk box" here on cnbc i'm joe kernan along with becky quick and andrew ross sorkin, our guest host this morning. joe terranova. he is a cnbc contributor and with vertis. you contribute a lot says too. >> thank you, joe. >> i hope it's reciprocal. >> we had a great week on "halftime. we had a great week. >> all morning long you've been saying you're on "fast money." >> why do you throw me these curve balls? you are on the 5:00 -- >> did you see the interview with scott yesterday my wife's old boss

talking some oils and some bitcoin. >> all have you to do is come back on "squawk on the street. >> yeah, yeah. >> hello >> that's kind of the same thing. that's like joey compared to "friends," and you are kind of like the -- anyway, you are a spinoff. the future -- wapner he is not watching anyway. >> i'm sure he is. >>. >> back to 2.38 on the ten-year, but you are talking earlier, those are like the biggest yields in the world compared to, like -- >> zero. compared to zero >> almost negative even, you know, spain, italy, germany is, like, what below a half 30 basis points. >> the heavy dose of gravity on our -- what's happening around the world. sometimes our rate goes up money from around the globe

pulls in >> like tethered almost. >> all right let's talk about some of the other stories that investors will be talking about this morning. we've been watching the price of bitcoin this morning as you might expect have ft reporting that some of the largest u.s. future brokers including jp morgan and citi won't immediately be clearing bitcoin trades for clients once futures began triegd next week that leaves small brokers like web bush as some of the firms are trades will be executed. the price plummeting today on several major exchanges. down by about 11.5% on the one exchange by almost $2,000 down by 13% or $2,300 on coin base

>> in california today wildfires have burned more than 150,000 acres in the southern part of the state. more than 200,000 people in los angeles and ventura counties have been told to evacuate, and more than 23,000 homes were under threat of destruction. wind gusts of up to 60 mirnds were spreading flames yesterday at a rate of roughly an acre per second we'll get a live update from california later this hour congress passing a two-week spending bill to avert a government shutdown at least for now. kayla joins us with more from washington d.c. this morning kayla. >> good morning, andrew. house and senate leaders yesterday delayed the funding to pay for two weeks to buy time to finish tax reform which will begin the conference process next week.

the stop gap bill sets up a shutdown snar joe just three days before christmas, and freedom caucus chair mark meadows told cnbc he doesn't see much changing between now and then >> i'm not real optimistic that the 22nd of december will provide any different kind of outcome than december 8th has provided we've had them december 8th deadline for almost three months now, and, yet, here we are punting again. >> gop leaders are now working on a deal that boo extend defense funding and fund all other programs through january jsh both parties called a meeting productive white house press secretary sarah sanders said the president, speaker ryan, and leader mcconnell also stressed that negotiations on immigration should be held separately on a different track and not as part of the government funding bill."

democrats who are pushing for protections of children of undocumented immigrants said nothing specific has been agreed to, but discussions continue we'll see how much of this -- they can rectify in the next two weeks or how much, andrew, gets pushed out to january. voluntary. >> we are less than a half hour away it is the last one before an expected fed rate hike, and it's one that should give us a clearer picture of the labor market after the summer hurricanes all of that kind of gets washed through. joining us right now is samantha she is jp morgan asset management's global market strategist former council of economic advisors chairman austin gouldsby and larry kudlow. folks, welcome to all of you we have so many things that we're watching from bitcoin to what's happening with every turn of the tax talks

what is it you're really watching before you try and figure out what direction the market is headed >> we have to focus on inflation. it's a little longer term, and we get it once a month, but we know that's the one thing that could disrupt everything if we get a red hot poker to inflation, that means the fed has to move faster, that means yields go up quicker then that could derail the equity market. that's not the base case >> that's happening in more slices of the economy than i think we realize >> what does that mean overall that sounds like a good thing. >> a good example is energy, right? we figured out how to drill horizontally, and now prices have come down a lot we are seeing it in consumer goods, tech goods, services. that could continue to suggest that maybe a 2% inflation target

is not the right target. maybe we are going to consistently run lower than that >> i want to talk to you about something steve liesman was here on set a little bit ago mentioning he was just talking about how if you eventually get to an unemployment rate that falls back to a three handle with 3% number, that's going to put additional pressure on the fed to go ahead and raise rates too. samantha just mentioned the idea of inflation doing that, but if you fall below a certain level on unemployment, do you think that will force the fed to raise rates an additional time next year >> no. i hope not anyway. i think if this tax cut goes through, it's typically a business investment oriented tax cut. that is not inflationary it actually expands the economy's potential to grow. j. powell in his confirmation hearing, you know, the new fed nominee, new fed chair nominee,

i mean, powell left it wide open janet yellen told us a few weeks ago in his speech that the labor condition and inflation models haven't worked in 20 years my only disagreement with her is i would have said 40 years, and i hope j. powell doesn't move rapidly. that's a big thing you know, let the tax cuts -- you have the fiscal lever with tax cuts you have a monetary lever with reserves in the balance sheet and interest rates i'm in no rush for them to do anything i don't see any inflation. supply side expansion from business and investment is surely not inflationary. let's put the fed aside for a minute, you know let's let the economy flewish. let's hope this tax cut does what we believe it will do >> ustin, your thoughts.

>> i worry about the fed getting out over its skis thinking they can raise six times, four times. i think it would be a mistake. >> that's what -- i love it when i agree with austin. i just love it i think it's fabulous stuff. i agree with him on that point by the way, i might be willing to give obama some credit here i also think businesses have been well run. profits are very strong. that's huge for stocks and the economy. i don't know if you saw the nfib survey, the small business survey they're saying red hot hiring in places like manufacturing and industry that, by the way, may be a global theme i'm just saying, all right, i

don't agree with austin that people are -- i think when the polling is done correctly, they want the tax cut, and everybody is going to benefit, particularly middle income wage earners. the point here is the economy may be entering a boom a boom the likes of which we haven't seen in 20 years that's a possibility >> i don't have any idea what normalcy is, but i will say this, as i have said for about the last three or four decades, economic growth, more people working, more people prospering

does not cause inflation >> no, no. let me ask you this. don't we want to get back to a rate where you have a little more dry powder left so that the next time there's a down turn, the fed can react to it. i guess at this point we don't have a whole lot we can do besides the weird he measures we got into that i don't know we want to revisit. qe for -- >> ed's piece in the "wall street journal" is very interesting. you know, he has taught me down through the years. he is a very prominent labor economist out at stanford. he points out that it's still historically low and that there's a whole problem with the backbone of the labor force 25054. some may be excessive government benefits, for example.

>> if you keep the u.s. dollar steady, that's what i'm asking for. a steady dollar, which, by the way, was a bill clinton, robert ruben policy in the 1990s. greenspan policy keep the dollar steady >> or a china policy are you talking about that stea steady >> well, no. i'm saying robert ruben -- i'm really pointing this to my friend austin. robert ruben was probably the best treasury secretary i've seen in decades. >> again, more growth does not necessarily cause inflation. it's just that that is just not true i would be very reluctant to see the fed if they want to move in december or later this month, fine

>> a lot of that stuff is coming to the united states and so it's not exactly just the choice of a central bank to keep rates low i think the supply and demand conditions for capital are one of the things that's pushing the rates lower, and to me that feels like the steady state "normal rate" is probably going to be a bit below what it was before that. >> i love that i love it. everything austin just said, i absolutely love it >> now i have to reconsider what i said >> all of that -- we're going to have to hold that thought, guys.

hold that thought. we will have more from our panel when we come back in just a moment >> all right coming up, we're counting now down to that 8:30 november jobs report it looks -- let's take a look at a -- that's a clock. like they have these new ones that are digital if you haven't seen one, that's the way it works >> that is actually the labor department clock that's the official. back to our panel for final predictions. first, though, brexit breakthrough negotiators reaching some agreement on key issues. wi wilfred frost explains maybe they'll have another vote. stay tuned you're watching "squawk box" on cnbc powers a booming auto industry. a leap into the digital era draws youthful populations to mobile banking and e-commerce.

trade and travel surge between emerging markets. everyday our 1,100 investment professionals around the world search out opportunities for alpha. partner with pgim, the global investment management businesses of prudential.

breaking news out of europe overnight. the crown, season two, on netflix for downloading as we speak. my entire friday night is already set.

do i need to walk -- let me ask. the u.k. has reached an agreement on some brexit terms i know that's what you are here to talk about. >> you are starving yourself from wonderful content >> i fully expect to see you walk into one of these scenes. i am not sure why. you remind me of the husband, kind of. right? >> he gets a bad rap in season two. >> you're kind of a roguish character yourself >> i don't know about that maybe we should move on. >> rakish. you are pushing for another

referendum best out of three or something >> let me get to the story, joe. >> all right >> the u.k. has reached a first stage agreement with the e.u. on the crucial issues of divorce payment, citizens rights, and the irish boarder. this will allow negotiations to move on to forward-looking trade arrangements, something the u.k. has long since sought. the estimated divorce settle am of 39 billion pounds to -- it's existence at all has bothered so some. the pound initially rallied, and investors have focused on the vague nature of some of the language in the agreement. particularly on the irish border issue, which shows that nothing is finalized yet elsewhere in europe, banks are soaring as the regulatory process was completed last night. banks are rallying because of

the clarity this brings for them, and investors along with a long five-year implementation window not starting even until 2022 the detail also could have been worse with the demands of further capital bds only small many also framing this as the end of the regulatory pendulum swinging against banks in europe, even if it doesn't represent a move towards deregulation as is emerging in the u.s. guys >> all right thank you very much. when we come back, wal-mart making a big push to entice holiday shoppers to shop on wal-mart.com instead of on amazon we have the details right after this then we'll get final predictions ahead of the november jobs report stick around "squawk box" will be right back.

see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st.

hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

>> the countdown so christmas is on, and wal-mart is making a last minute holiday push for procrastinators. we have plenty of time still wal-mart, though, is announcing that it will qualify more items than ever for same day in store pickup it's an effort to try to capitalize on the 90% of americans who live within ten miles of a wall mart store that service runs up to 4:00 p.m. on december 23rd with a pickup cutoff of 6:00 p.m. on christmas eve. coming up, we get the final countdown. we're going to get predictions from our panel next, and then what you have been waiting dpor all morning. big payroll release, and the

market's reaction. as we head to the break, take a look u.s. equity futures at this hour of course, all of this could change in a couple of minutes. the dow looks like it would open about 107 points higher. nasdaq up by 41 points s&p 500 up about 12 points we are back with the big number right after this it's all yours. wow! record time. at cognizant, we're helping today's leading life sciences companies go beyond developing prescriptions to offering subscriptions with personalized, real-time advice for life-long, healthy living. honey? you almost done? nope. get ready, because we're helping leading companies see it- and see it through-with digital. the market.redict but through good times and bad... ...at t. rowe price... ...we've helped our investors stay confident for over 75 years. call us or your advisor. t. rowe price. invest with confidence.

looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock.

we are the driven... the dedicated... the overachievers. we know our best investment is in ourselves. we don't take no for an answer. we fight for what we want. even for the things that were once a given. going to college... buying a home... and not being in debt for it for the rest of our lives. but we're only as strong as our community. who inspires and pushes us to go further than we could ever go alone. sofi. get there sooner.

welcome back to "squawk box" here on cnbc we're live in times square it is jobs friday, and we're only minutes away from the big number we want to get prediction from our panel. let's start with you, sam. what's the number? >> 190,000 >> 190,000 we're marking this down, everybody? you want to do an unemployment rate as well >> 4.0 on the unemployment rate. >> are we playing "price is right" rules meaning you have be to under no joe. >> 231 >> 231 okay larry, mr. kudlow. >> 225 >> 225 you want to throw an unemployment number there there or no? >> i'll say 4.1, but i don't

know what it means >> austin, my friend, chicago. >> well, 179 i guess i'm the low guy. we've been running, as you know, several hundred thousand lower than we did last year at this time >> is the market going to like or not like that number? >> i think they would probably still like that number because they would be thinking that the fed might at least wait a little bit before raising. >> that's my sense as well joe, you say that's wrong? >> not happening >> what's not happening? his number or the fed? >> the fed is -- i said 231. the fed is going the fed is going this month. >> irrespective. >> rickster. >> 233,000 i put my number in the hands --

>> i said 231. >> joe has 231 this is a price is right rules thing where they are trying to get you light on the -- >> i don't know about any of that i just know they ask me long before i heard everybody else's estimate, and on the unemployment rate, i won't even play that game >> he was a supply cider i just want to add that in where. >> the professor is here >> he ate at the same pizza joint as i do. >> we're going to go that washington 30 seconds >> the market doesn't trade price is right rules the market cares about who is closest, right >> it's more fun

>> what it says and portraits is a different story. let's argue later. we'll have that argument in a couple of moments. we're seconds now away from the november jobs report hampton pearson is standing by at the labor department. hampton, got the numbers, sir. >> 228,000 november nonfarm payroll increased by 228,000 jobs. the unemployment rate is 4.1%. 2.5% year-over-year. 221,000. revisions, in essence, for the two previous months, a net increase of 3,000 jobs from what had previously been reported job gains, biggest job gains, professional and business services, plus 46,000. manufacturing up 31,000. construction up 24,000 health care plus 30,000.

no real mention in this report about any hurricane-related effects in the data. 62.7%. same as october. november, 8% job averaging 174,000 per month for the year brsh 170,000 over the last three months. back to you, guys. >> we thaw for that. i think the winner was larry kudlow >> yes yes! yes! yes! yes! >> price is right rules, yes >> he is over. >> what was your number sno. >> >> oh, come on. you got to give me you got to give me credit. it's my best showing in 15 years. >> give him that he deserves it

>> i got to hand it to you, you are consistent. >> they're going to be because of trump's predecessor >> at least you're very -- at least you're very consistent with how that lines up >> i'm consistent on the facts, but, joe, it's the holiday season, and i came here, and i promise i'm not going to get in an argument with you today >> you said something about turkey basting you tweeted something about -- you are a better turkey baster therein i was. i saw that tweet i didn't know how to respond to it because you were using the word turkey. you remember that? what were you talking about? >> i'm going to challenge you to a turkey-off a turkey cook-off. paul volcker can really cook a turkey

i challenge you. >> i have done that interview every year, and you don't want to pack it like -- >> i want to pick up on the holiday theme you guys were talking about. there's some potential holiday information in this report if you look at two categories i want to point out, retail up 18.7,000, and transportation warehousing up 10,500. what's important is that more and more of the retail jobs are in warehousing a lot of them are in transportation these are both better numbers. they're both seasonally adjusted there's an expectation of seasonal hiring. what's happening here is the hiring is beating the expected hiring by the way, temporary help up 14,000 over there they did a pop-up shop at sharper image. that's -- here's the thing prestage what's going to happen with retail sales. why? because the guys with the best information about the forecast

of what's going to happen in the holidays are the people doing the hiring >> the caution with that is the bigger the christmas season when you have a bigger christmas season a lot of times you get a rebound. >> gentlemen, i think you're missing the point here can i just weigh in on this. look, i think if you look at factory orders and ism's, the small business nfib reports, what you are going to, i think, you are on the front end of what looks to be a very, very strong rebound in manufacturing and industry and hard goods, the likes of which we have not had

throughout this recovery again, i think people are starting to pull the trigger because they see a much lower tax burden on all manner of business, large, small, repatriation coming home when look at what harp ton has reported here is manufacturing of 31,000. i agree retail sales look okay, but what's going to give us 3% to 4% growth is a boom in manufacturing. >> the lifting of regulation >> i think it's been a huge factor really the whole year in my judgment

even though the administration haven't gotten through, republicans haven't gotten through the health care bill, what they have been doing is congress has been passing bills to ratify the president's roll-back of regulatory costs. i think that's created a lot of confidence on this, and i think as this tax cut bill winds down and we're going to get a passage in the next week or two, that's going to add to it, and as long as it's due in 2018, i don't want to skip a year, 2018, people are going to be pulling the trigger and we're going to see, again, i repeat myself, possibility of a real investment boom, which, by the way, will help every american and is not inflationary >> so i would just add to that i mean, if we go bah being to the nfib survey which has been mentioned a few times, the top concern for small businesses, forever and always, was government regulation and red tape that has recently been surpassed by quality of labor. i think it's very clear that jobs are plentiful in this country. it's just it's going to come

down to a matter of can companies hire the skills that they need? that's much more of a question mark >> how come we haven't seen companies that can't find skilled workers offer every offering to pay more >> so we only have anecdotal evidence on that, but there's been really good reporting showing that companies are willing to pay less, take someone who didn't have the skills they need, and then train them for six months. >> we're going to see a big pick-up in investment. >> you have to acknowledge that we're in a world today given technological advancements where there becomes a point where you can pay a worker more or you can buy a machine to do the work of the worker

not all technology is that way the jack hammer -- >> 15 million jobs >> i'm just saying that you can have strong employment and yet, not have strong wage growth, austin, because of this technological gain >> the idea that there's going to be a decent holiday season is something i don't know maybe joe knows if the market has got that priced in. >> spending is clearly going to approach $100 billion, and we've already seen from november 1st until december 5th the figures reported at $65 billion. we are clearly on track. i think it's going to be a very strong holiday season. i think you'll see that reflected in the numbers on the

other side >> we with didn't hear from rick can we get rick? >> testing testing. are we on? >> i'm sorry, rick the idea that we've been debating two or three rate hikes next year. some guys are in the four camp what camp are you in >> i'm in the camp that nobody knows i don't think three is in the cards. four is certainly not. i really want to quickly go back you know, this whole notion that robots and automation and all these machines are going to be a horrible violate for jobs. i'm sorry. i don't buy it you know, you read some of the turn of the 20th century issues regarding industrialization. they have to design the machines, maintain the machines, install the machines, and then hire people to -- all of this is

going to create a lot of jobs. i don't buy it i think that it's a false argument, just like we're at peak employment, and we keep growing jobs more than a population somebody's numbers aren't right. >> will we recap the ed lazeer story? i talked about it earlier. >> i think rick is completely right. it's irrationale fear of technological breakthroughs. in this case artificial intelligence look, every time we've had gail of creative discussion every time we've had technological break-throughs, there are losers in the short run, but in the long run rick is exactly right. more jobs are created.

>> file for disability insurance in the wake of the financial crisis and that this population of people in prime working age can come back to the work force, and this is essential because what the fed is wondering about, what markets are wondering about, are job markets so tight we're going to bid up wages, have inflation the fed is going to have to clamp down and start a recession. ed is arguing, and larry pointed out correctly in the last segment. we have frequent guests on this show and rick is out there with an important idea that, by the way, our other preeminent labor economist alan kruger would disagree with. he says they're out, but they ain't coming back. that's the other side of the argument

>> the point that ed is making is the -- the low level of the employment population ratio, his estimate is about two million jobs people have left the work force, and if you go on disability, you never seem to come back to the work force i think what ed's point is here, and i have said this for a long time, these small entitlements, which were reformed during the bill clinton, newt gingrich era, they should be looked at again and we should add some eligibility and we should add some work force discipline >> also, larry -- >> that's a piece of this. also >> i want to pint out that it's to let the market bring them back in. you don't necessarily have to change the conditionality for getting into it. austin, go ahead you were cut out before. >> a, the change in disability

was under ronald reagan. they got rid of a third party government doctrine. you could use your own doctor. nothing has changed about sthoez rules in recent years. >> that's kind of what the economist call an absorbative state. once are you on that, normally you don't come back into the work force >> let's say you are powell and dealing with this issue, my guess is you go halfway. you kind of get your guard up. you are ready to go. you do one or two. what do you think? interest rate hikes. you don't do the two or three or four until you see the whites

much the inflation's eyes. >> i think the first two will be stimulative. >> what was that >> the fist rate hikes for 2018 could be stomach lative. they could get people to lock in those mortgages or get the line of credit that they need after that, i mean, what's the benchmark? it used to be that when the ten-year treasury yield hit five, that would be bad for the equity market. we think it's roer than that now. >> because of the fed staying out, i don't think that's it the 230 has the market up now over 140 points. i think they like -- i think they like the strong number. >> i hope that's true. if they end up inverting the yield curve, then go -- you know, go pack your suitcases because that is usually a very bad sign for the economy >> yeah, but remember this, joe, i just want to make this generic

point. rising wages, average hourly earnings and so forth, are not necessarily inflationary they are not these are market leaning indicators of inflation, and so far we don't see any inflation >> far productivity has been slow >> guys, it's very hard to do a chart with wages on one side and inflation on the other and almost any connection. >> the model didn't work in the first place, and it's dead phillips curve, may he live and die. that's all i have to say

>> i'm not going up against you. you are -- >> why not >> because you are implying you are the master i'm not going to -- i'm not going to try i said that so slowly that there's no doubt about what i'm saying i said it so slowly that there's -- >> there's a certain intended ambigui ambiguity. >> let me say joseph is master of his domain. when we return -- >> he is a master debater. he is a definite master debater. >> this is a serious story thousands of firefighters working to control the spread of several large wildfires. we've got that story and the details straight ahead ckn mite

what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley

win an uncertain world?k predictable income pgim sees alpha in real assets. like agriculture to feed the world. and energy to fuel its growth. real estate such as e-commerce warehouses. and private debt to finance transportation and infrastructure. building blocks of strategies to pursue consistent returns over time from over $120 billion dollars in real assets. partner with pgim. the global investment management businesses of prudential.

>> even those who can see. the number are staggering. they really swelled overnight. let's take a look from above this is a chopper shot of the

thomas fire. it's the biggest one that's burning throughout the state right now. more than 140,000 acres have been burned. 190,000 people evacuated 500 structures have been destroyed. that number yesterday was just 150. so that number has really spiked there. the destruction has been so vast that you can even see it from space very clearly take a look at these pretty striking pictures this is from international space station of the thomas fire snapped by astronauts. one of the crew members was tweeting about it. astronaut andy breaz nick from southern california. today's pass over so california doesn't look any better. these fires are affecting traf here too yesterday union pacific shut

down tracks between santa barbara and los angeles. shut down between ventura and san luis obispo. so we are checking on status insurance companies are bracing for the claims coming in core logic estimates that 86,000 homes in southern california are at risk for some sort of reconstruction with combined reconstruction value of $27 billion. deaf administrati devastation here is palpable joe, back to you. >> thank you when we return, jim cramer will will be here dow jones up 115 s&p. 50 now on the nasdaq

what are the ingredients of a life well lived? is it the places you go? the things you own? or the people that fill it with meaning? for 150 years, generations of families have chosen pacific life for retirement and life insurance solutions. protecting what's most important to you. that's the power of pacific. ask a financial advisor about pacific life.

we are the driven... the dedicated... the overachievers. we know our best investment is in ourselves. we don't take no for an answer. we fight for what we want. even for the things that were once a given. going to college... buying a home... and not being in debt for it for the rest of our lives. but we're only as strong as our community. who inspires and pushes us to go further than we could ever go alone. sofi. get there sooner. jim cramer joins us now. we were talking whether a weak number takes the fed out of the picture perhaps and whether that's what the market is looking for. we like job gains, don't we? >> exactly we like job gains.

obviously for work we want more higher wages didn't get that. but this number is a great number and where we are is good as good not there yet. we are good as bad because of the fed took action. we have a great panel. like rick said, you don't know what they'll do, and maybe that's good, they are very flexible we don't want them to say listen we have four hikes so i struggle to think about why everybody sold nasdaq and why everybody made these big shifts out of growth stocks just a lot of good stuff to like and it's just a good market. it was treacherous for a couple of weeks but back to okay. >> that number is out of the way now. now i guess we have christmas and the holidays coming up. >> it's santa. >> and you do have the tax thing, that's supposed to be done that may take over in terms of

what markets watch don't you think? or will it be bitcoin. >> that's right. that's what we'll talk about if you remember a couple of years ago we talked about government shut down i think tax will be important. i think bitcoin is in ha bay ance until the futures start the head guy with bitcoin said they locked it up and when the future starts they'll bang it down but the people that love bitcoin say that's not possible. >> okay. jim, we will see you very shortly. and coming up on "squawk on the street" don't miss president trump gary cohn. heel be 9:00 a.m. eastern time

your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. ♪i'm living that yacht life, life, life top speed fifty knots life on the caribbean seas it's a champagne and models potpourri on my yacht made of cuban mahogany, gany, gany, gany♪ ♪watch this

don't get mad (bell mnemonic) get e*trade and get invested heal check out this accident on highway in philadelphia. a tractor trailer spilled boxes of vodka caused nearly ten hours of delays. crews worked to unload the boxes of tito and get it up right involvement one was hurt. >> we have two seconds but one point to make. amazon. >> yeah, i think it's a concern that the president asked those questions of lee cocker man. >> asked him twice

first if it was a monopoly came back at him a second round. >> i think it's a risk to the market that technology gets regulated. >> all technology or just amazon did you think it was a "washington post" situation or something else >> that i can't answer. >> great to see you. >> sure make sure you join us on monday have a great weekend everybody "squawk on the street" starts right now. good friday day morning. welcome to "squawk on the street." i'm with jim cramer at the new york stock exchange. wage is up what that means for the markets and fed coming up. europe is higher by 1% bond yields just shy of. starts with bitcoin news, in the red moving