tax triumph. wall street cheers sweeping tax reform the latest market reaction straight ahead >> sharing the wealth. several big name companies are raising wages and handing out bonuses in the wake of the tax overhaul. and bed bath & beyond shares are in the red we'll tell you why it's thursday, december 21, 2017 happy winter solstice. "worldwide exchange" begins right now. ♪

>> this is the song. >> if they're going to pick a song, i'm glad it's mariah ca y carey. >> my wife would agree welcome in to "worldwide exchange." >> good morning, everyone. >> it's throwback thursday, we're taking you back with some holiday classics, like mariah carey's "all i want for christmas is you." a quick check on futures we are seeing at least a bit of market stability for now if you look at futures picture, the s&p indicated to open up by two points dow jones up by 2.5, the nasdaq off by 5 or 6. we've seen a run up over the last couple of days on the hopes of tax legislation passing through congress everything going on there. a big deal for the markets for this morning, a bit of a pause after that bullish action. >> we'll see what happens. on that note, let's look at our

top story. tax reform and congress giving final approval for a 1$1.5 trillion tax cut tracie potts is live in washington with the latest good morning >> reporter: good morning, everyone it looks like that may be short-lived, the victory lap that republicans are taking over this tax reform bill, because now they're facing another critical deadline, the budget tomorrow >> it's always fun when you win. >> reporter: president trump and republicans taking a victory lap on tax cuts. >> the message to the hard working taxpayers of america is your tax relief is on its way. >> reporter: their celebration could be short-lived congress has less than 48 hours to come up with a budget and avoid a government shutdown. democrats say since republicans are in charge, they have to fix it >> they have the votes, they have the signature, so they have the power. >> reporter: no budget leaves

children's health insurance up in the air a new report says 2 million kids could lose funding in january if congress doesn't act now >> for us it's keeping him alive. >> the parents of 9 million children are counting on us to renew the program's funding. >> reporter: also up in the air, disaster relief, domestic surveillance, lo subsidies and protection for immigrants >> how many kids will be protected? more than 800,000? how many more? how long will it take to achieve a status where they can become citizens. >> reporter: the senate cannot pass a budget without a few democrats on board >> picking and choosing what you want to get done and telling us to do it, that won't work this time. >> reporter: a budget showdown just before christmas. it looks like lawmakers are going to do what they did last time, which is look into a short-term budget, keep the

lights on, government paychecks running before christmas and that would push a lot of those decisions into mid-january that would be really tough for children's health insurance. >> another band-aid came down the road, you pick your cliche, it's owl there. corporate america is sharing the wealth after that landmark tax reform bill. landon dowdy has more on the details about who is doing what. >> good morning. corporate america reacting to the biggest overhaul of the u.s. tax code in 30 years promising more pay for workers or more investment in training at&t saying it will pay $1,000 bonuses to more than 200,000 employees and invest in $1 billion in the united states once the tax bill is signed into law. cnbc parent company comcast also sharing the wealth saying it will give $1,000 bonuses to more than 100,000 employees and invest 50 billion over the next five years in its infrastructure we also heard from boeing, the

aerospace giant says it will invest 300 million in work forc training and facility enhancements for employees the banking world is reacting. wells fargo and fifth third bank are raising minimum wage to $15 an hour. fifth third is also handing out bonuses to its employees we'll see if this trend continues throughout the day back over to you guys. >> thank you let's talk more about this with ben white, chief economic correspondent and author of the morning money column at politico good morning to you. there was an assumption the tax bill would only be used towards buybacks, but these announcements that we're seeing, is that a suggestion that the president is putting more pressure on the corporations to use the money not just on buybacks but wages and employees? >> i'm certain he's putting pressure on them, and the white house enjoying these announcements from corporate america on bonuses and

investments. this is a long-term big macro play on the tax reform bill. i don't read a whole lot into the initial announcements from the companies, it's good pr, but what happens long-term there will be a lot of buybacks, dividend payments and will they use more cash than they would have otherwise i don't know that answer we watch this play out over years, not a couple days worth of corporate pr. >> so there's no doubt that the timing was made to tie in to the idea of tax reform there's no doubt there's a pr stunt element to many of these announcements. however it's hard to say to people that we're giving you $1,000 and we're not telling you we'll pay you more money is there something positive to be said for this are people going to end up making more money because of these things are corporations lying when they say tax reform will help them pay people more or help them invest more in infrastructure? >> i don't know that they're lying. i think they believe that's the case if you have a lower corporate

tax rate, you have more money on the balance sheet, you're paying less to the government, so you can theoretically pay your people more and invest more in the u.s. they don't make their decisions based on the tax rate, they make decisions on is there demand for the market, is there a broader market to sell into. this is one piece that could be beneficial for them. i think the long-term bet is that if we have a more competitive corporate tax system, there is more incentive to grow in the u.s. versus abroad and spend your money on your workers and investments. but this is a play that they're looking at several years worth before we know the extent to which it's really led to higher wages, higher worker productivity and whether the bet republicans are making pays off. >> with this legislative win behind him, does this help president trump focus more on infrastructure and healthcare, other economic reforms, or will

2018 be dominated with trying to defend the tax bill saying it's not just for corporations that will benefit but middle america as well. >> there will be a lot of defending the tax bill in 2018 for republicans. they will take this to the voters and say we did something big in washington which is one thing voters wanted to see they want to see actual legislation passed people at this point are not super psyched on this tax bill as we look at the polls, so republicans will say look at what corporations are doing already. you're making more money maybe you got a big bonus. and people will see slightly less withheld from the government in february does it mean they can move on to infrastructure they would love to do that democrats ordinarily would buy in, but they have different views on how you do a infrastructure project probably not a big infrastructure bill in 2018. >> we're at the time of year when we talk about what will happen next year what is, in your mind, the democratic playbook for how you take what's happened over the past couple of weeks and then go

towards those midterm elections? we'll start that real ramp up towards campaigning everything else in the early part of next year what will they do what will the democrats do to capitalize on this moment? >> they'll say what republicans did is cut taxes for corporations and the wealthy i think they'll paint donald trump, the president, as a big beneficiary of this. we have estate taxes, the alternative minimum tax, a lot of these benefits accrue to wealthier taxpayers. broadly they'll say this is not great for you. they're trying to take your healthcare away on obamacare they're cutting taxes for the rich, not the middle class they'll run hard against the tax plan before it shows real big long-term results, they'll have the ability to do that republicans won't be able to say we're growing a lot faster, more jobs, more wages that takes more time within the time frame of the 2018 midterms, democrats can hammer away at this.

>> the positive narrative surrounding tax reform, does that give republicans enough clout to move forward with the election of 2018 >> absolutely. it would have been a disaster for them had they not gotten this stuff they have a big thing to point to and to say we did a big fundamental tax reform that has eluded washington for decades. they'll fight back against the democratic narrative that it's a give away to the rich. they have something to present but they have to change voter attitudes towards this bill. they can communicate that, that there will be more money in your paycheck, better job and more pay long-term. there's going to be a fight between the narratives for the tax reform bill. republicans are starting from a good place they can say we did this big thing. this is why it's good for you. >> the market sitting near record highs, that's something they'll always tout. >> i think you will see a lot of president trump pointing to the stock market reaction and the rest of the administration

markets go up and down if we get a selloff, they take the blame. >> the key is earnings growth, if we see that increase, with tax reform behind it >> there's good stuff to happen for republicans if it plays out the way they want it to. >> ben white of politico, thanks for joining us. there's a trio of economic reports, weekly jobless claims, the monthly philadelphia fed index and the final estimate on third quarter gross domestic product, that's all out at 8:30 a.m. eastern time. as for the earnings side of things, you have carmax, pay checks before the opening bell, nike reports after the close we are following a developing story out of australia. more than a dozen people are being treated for injuries after a car plowed into a crowd of pedestrians in melbourne the driver of the vehicle is in police custody authorities believe this was a deliberate act

we'll continue to keep an eye on this story and bring you more as we get it. still ahead on "worldwide exchange," a round up of the global markets plus a look at what's in store for currencies in the new year. stick around orwi ehae"il"wlddexcng wl be right back let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists?

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welcome back to "worldwide exchange." i'm dominic chu along with seema mody let's check out the futures

picture. showing signs of stability after a two-day bull run for the stocks s&p 500 up by 2 points dow jones up by 5 1/2. and the nasdaq off by 6 or serve 7 points a bit of calmness after optimism going into the markets the ten-year yield, around that psychologically important 2.5% mark 2.49%, the last trade there for the ten-year trade note. yields have been rising a bit, allaying some fears of the flattening yield curve we'll see if that plays out more medium to longer term. as for everywhere else in the market, everyone is keeping a close eye to the dollar and interest rates >> a lot to digest in the last two weeks of 2017. let's look at what's happening in asia. markets there closing overnight mostly higher. hang seng up by a half percent

let's look at the nikkei, closing down the bank of japan finished up its two-day policy meeting where they kept rates unchanged. during the conference, the japanese deputy governor, kuroda, saying bitcoin is functioning not as a means of payment but as a target of speculation. central bankers not just in the u.s. but around the world asked about this new emerging asset class. >> his country is responsible for a lot to of the trafficking of the cryptocurrencies. >> they recognize bitcoin as a means of payment one country out there receptive to this idea of not just bitcoin but cryptocurrencies in general. let's look at europe early trade there. the big talker will be catalonia elections. citizens going to the polls in a closely watched regional election this follows the controversial referendum the spanish index holding flat up 0.7%.

the italian ftse mib, up 0.2%. in france, business sentiment came in below expectations macro big picture here on the commodity side of things looking at the energy markets. the last trade for wti crude, $58 per barrel that's off 0.2%. as for the brent crude futures, they're up almost 2 %. $64.42 bigger picture global factors playing into that. the pipeline in the north sea and tensions in the middle east. as for the gold price chart. we have been seeing a bit of action on the currency commodity side of thing, people have been talking about the crypto $1,269 the last trade. just about flat so far on the day. the dollar, despite tax reform, has not been on the move to the upside. dollar here in today's trade higher against the yen at 113

113.43 the pound is higher against the green back the key economic data is the uk gdp print due tomorrow let's look at bitcoin and where it is trading. there has been a lot of talk about bitcoin getting diluted by other alternative tokens or coins, if you will, like bitcoin cash, ethereum, litecoin futures down 300 points here bitcoin futures on the cboe market down 90. let's talk more about the currency market. eric valoria from wells fargo securities thanks for joining us. let's talk about the dollar. we have stocks at highs on the back of tax reform and the economy improving. why hasn't the dollar moved with it >> the dollar has been in a

downwards trend since the end of last year. so december 2016 is when we believed there was a peak in the u.s. dollar's long-term cycle. the reason why the dollar has been weakening, it's not been more a reflection of what's happening in the u.s., it's more of what's going on outside the u.s. global growth picking up, other central banks starting to move towards normal or more normal monetary policy settings, that helped to boost foreign currencies as foreign currencies strengthen, that will weigh on the u.s. dollar. >> somebody tweeted in, it's been eight years, the dollar has not done anything. it's where it was eight, nine years ago in terms of the actual value or purchasing power. whether or not that's the case, it doesn't change the fact that the story is not as much about the dollar as it is about the international markets. where are the hot spots? why is it that we are seeing emerging markets or other developed economies showing maybe better signs of life with regard to their economy, thereby driving the value to the upside?

>> for emerging markets, you have a benign global market backdrop global volatility is low, you're seeing more global growth. i would say if you look across the major currencies, the developed markets, we would say that the currencies of central banks who are more active, such as bank of canada, we saw a couple rate hikes last year or the european central bank who has taken gradual steps to announce further reductions in quantitative easing should have seen and should continue to see currencies improve depending on the activity of those central banks and movement or evolution of monetary policy in a less accommodative direction, that's lifting those currencies we saw it with the u.s. dollar when the fed was tapering throughout 2014 and then the rate hike in 2015. >> does the global currency market have a lot to worry about with the rise of bitcoin and

more people embracing this virtual currency >> i would say at this point no. not much to worry about at this point. we tend to focus more on the traditional currencies and the economic factors and the monetary policy factors, those underlying trends tend to influence the traditional. >> really quickly, what's your hottest trade in 2018? >> in 2018, we see a mix of performance for the u.s. dollar versus foreign currencies. in the earlier part of the year, the canadian dollar could be a stronger performing currency because the bank of canada is more likely to continue it's tightening program towards the later part of the year, when you get to an end of the ecb quantitative easing problem, the euro could perform well >> eric, thank you great to have you on the show. still ahead on "worldwide exchange," stocks to watch including why shares of bed bath & beyond are deep in the red i know we'll have the time >> and as we head to break,

here's the national weather forecast from nbc's bill karins. good thursday morning to you. we are watching a storm in the middle of the country. it will cause travel issues. right now a bit of snow in utah, colorado and snow breaking out in the midwest today is not a horrible travel day. we'll have minor problems in areas like denver's airport. chick ago could be okay. i i-80 with a bit of snow. heavy rain on thursday, thursday night in the gulf of mexico. on friday, we will watch rain in nashville to memphis snow and ice in new england during the day on friday continuing into friday night on saturday, heavier rain along the i-95 corridor. if we're going to watch out for the snow and ice, the worst of the snow today in the mountainous areas. we'll have to watch this friday night into saturday in areas of northern new england that's your business tveral forecast more "worldwide exchange" when

we come back 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

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shares of pg&e are falling after the company announced it is suspend dividend payments the company cites uncertainty surrounding liability in the deadly california wildfires earlier this year. bed bath & beyond posting better than expected earnings, revenues and same-store sales, but shares are under pressure. analysts point to higher overhead costs shares down 4% the fda approved a new drug from merck and pfizer to treat type ii diabetes the oral drug is part of a group known as sglt-2 inhibitors, which work by causing patients to expel extra glucose in their bodies bombardier says it is confident the u.s. international trade commission will reach the right conclusion in its dispute with boeing. the commerce department announced yesterday it would impose steep duties on the

companies c-series jets after boeing complained they had been unfairly subsidized by the canadian government. the penalty will only take effect if the itc rules in boeing's favor the bombardier's ceo will join "squawk box" today live at 7:30 a.m. eastern don't miss it. shares of nokia are at a two-month high after the company signed a multi-year patent licensing deal with huawei nokia says the details are confidential but it will started recognizing revenues from the deal in the fourth quarter still ahead on "worldwide exchange," the top stories and a round up of the global market picture. plus don't blink, meghan markle's house has already been snapped up the hefty price tag for that raht ahead you're watching "worldwide exchange" on cnbc.

corporate america boosting wages and handing out bonuses after congress passes a landmark tax reform bill. we have the latest straight ahead. countdown to 2018. one market pro's take on what to expect in the new year. and battery gate what apple just admitted that has many conspiracy theorists saying i told you so it's thursday, december 21, 2017 you're watching "worldwide exchange" on cnbc.

good morning welcome to "worldwide exchange" on cnbc. i'm seema mody >> i'm dominic chu it's throwback thursday, this week we're taking you back with holiday classics a lot of the -- little known fact about me, i love christmas music. >> shocker >> i have sirius xm holly on since the day after thanksgiving >> i'm not a fan hate to be a grinch here >> the most wonderful time of year >> definitely a festive time let's get straight to the global market action. yesterday the big talker was tax reform congress finally giving approval to that 1$1.5 trillion tax cut. markets have been moving higher in anticipation of the tax reform bill being passed yesterday major indices closed lower. here in early trade the dow is up 10 points in the premarket. nasdaq off by 4. s&p 500 up by 2.

so far week to date, 7 out of 11 sectors are positive for the week, led by energy, the worst performing sector in 2017. it's up 2% this week utilities the worst performer down about 4%. keep an eye on technology and healthcare, two sectors that have been highly taxed to see whether that will be a place investors look for more opportunity now that we have the tax reform bill on our radar looking at treasuries, yields have been moving higher. that's the growing trend the yield now at 2.48% we did see a selloff in the treasury market yesterday following that passage from the senate >> that breather that u.s. stocks are taking now has kind of translated into other markets. we'll check out what's happening with asia. they closed. the nikkei off by 0.1% hang seng and hong kong up by a half percent as for europe, mixed as well

with the german dax off by 0.1%. the cac in france off by similar amounts. the ftse 100 up by a quarter of a percent. a lot of eyes on spain and catalonia. >> yeah. let's pivot the discussion to commodities. let's check where oil is trading. wti crude at 58.04 ice brent crude at 64.50 up by 2% nat gas prices are at $2.64. gold, that's where we have seen some action. yesterday gold hit its highest level in two weeks posting its fifth positive session in four we're flat right now but trading at 1,269 for gold. checking in on currencies, the dollar story is mixed but stable if you look at what's happening overall with the euro. strength in the euro, 1.1881 dollar/yen, 113.44 the last trade there.

for cable, pound sterling, whoever you want to call it, 1.3379 we have to talk about cryptocurrencies bitcoin futures, regulated futures off by 2.5%. 16,645 and bitcoin futures on the cboe, off two-thirds of a percent. 16,590 >> it's interesting. the launch of the bitcoin futures contract on the regulated and the cboe was supposed to open more for exposure to bitcoin, but bitcoin has been down 17% over the last two weeks. >> not just that we have to keep an eye on trading volumes. it's not like these things are flooding the market. there's a limited amount just a few thousand on some exchanges. those regulated units are five points per contract. >> mike numura trading is

expecting bitcoin to reach $1 trillion >> a lot of people might be skeptical. >> i think you're right, especially when more cash and capital is going to other cryptocurrencies, litecoin, ethereum all of those companies have a market cap of over 1 billion some dig name compabig comp sharing the wealth after congress passed a landmark tax reform bill. landon dowdy has more. >> reporter: corporate america reacting to the biggest overhaul of the u.s. tax code in 30 years, promising more pay for workers or more investment in training at&t will pay $1,000 bonuses to 200,000 employees, and invest an additional $1 billion in the united states. cnbc parent company comcast also sharing the wealth saying it will give $1,000 bonuses to more than 100,000 employees

invest $50 billion over the nex five years in its infrastructure we heard from boeing, they will invest 3$300 million in work force training and facilities enhancements for threes. the banking world is reacting. wells fargo and fifth third bank are raising their minimum wage to $15 an hour fifth third is handing out bonuses to more than 13,000 employees. we'll see if this trend continues throughout the day as corporate america continues to digest this massive tax overhaul back over to you let's talk more about tax reform and the market impact we'll bring in mike holland, chairman of holland and company. mike agreed to stick around for the rest of the hour to talk about what's happening with the markets. as we talk about tax reform -- >> i get paid overtime >> time and a half, it's the holidays and apparently everyone is handing out bonuses. >> the roberts family supports this i want to know whether i'm one

of the thousands of employees that comcast will give a bonus to >> you're not an executive >> let's talk about the fact that the markets have been rallying towards record highs. we had this run up as we got -- the markets have been handicapping the progress of tax legislation. we got it. it looks like it will become law very soon. what's the impact for markets? do we still have a runway for a bull market hire this tax cut could pave the way. what's the buy the rumor sell the news situation >> we heard buy the rummer sell the news for the last several wee wee weeks. what we didn't hear before is the corporate announcements, how many people sat here with the two of you and talked about these bonus pools that would be coming up, the infrastructure spending all of the comcast news, the at&t news, wells fargo news from yesterday. people were not talking about

it these are new things this is cash going into the economy. this is real stuff, not political stuff. >> could the tax cut usher in a change in sector leadership, industrials and energy, which are the higher taxed sectors, could that provide relief? >> for sure. i think that one possible beneficiary in the change in the atmosphere and reality is the financial sector and the banks i think there's going to be a number of sectors positively affected here. i don't want to say people have not paid attention, but things that happened yesterday, those are major changes from corporations >> one thing i've been made aware of through viewer interaction, through tweets, everything else, is that some of these moves by these large corporations amount to what they call drops in the bucket with regard to actually improving the lives of american workers. raising wages. i would say more money in the

pockets of consumers is a great thing no matter what how do you respond as a shareholder, how do you feel about some of these wage gains that we could see? is it a drop in the bucket or do you think this will be a meaningful way of getting the american consumer more purchasing power, more fuel for the economy in the u.s.? >> a lot of the first cynical and skeptical reactions over the last 24 hours are a reflect of where we are today with the polarized society in politics. it's a political reaction in part for some people other people are saying this doesn't sound like much money. if you think about what we heard yesterday, something approaching a billion dollars. it's the marginal and the marginal decision that a lot of people this christmas, comcast fl employees will feel better when they're spending if they have a decision to make of go or no go, they'll say go i think it helps the economy on

the margin is it huge nobody knows any economist who comes in here talking to you all and says this will add 0.27 to the gdp, crazy stuff. it's never been done nobody knows it looks like from the numbers, the infrastructure spending and capital spending, these look to be big numbers i think there's going to be a measurable effect. >> the other part of the conversation is not just growth, but the impact on inflation. some say this will drastically move inflation up, so rates could move higher in 2018. what about earnings growth barclays put out a note saying we should see a lift into the 2018 earnings per share around 6% that's astounding. what are you anticipating? >> that's what i'm talking about. i think the numbers are going to be higher. we simply don't know how much higher but i think that direction is correct. it's going to be larger than we expect right now

but i think your early point, that's probably the place to watch out. that is on the rate side i think inflation is now becoming something that we could talk about it's -- because of technology the last several years, it has not been now we have the past several days in the markets, look at the ten-year, the five-day move in the ten-year this is interesting stuff. for the first time the s&p is yielding more than the ten-year treasury >> it is certainly notable >> that's the one thing to watch out for. the whole pricing mechanism goes up treasuries and that, that will be something to watch for. >> average hourly earnings have been stubborn. stick around we'll talk about some of these top trending stories >> it is time for our top trending stories we will talk about the kardashians. it's the instagram post everyone has been waiting for chlkhloe kardashian confirming pregnancy with this photo. the announcement comes months

after tmz first reported the news in september. her post has 6 million likes just nine hours after posting it this means that kris jenner will now have six grandchildren apple is feeling the heat over a discovery about older iphone models. as batteries age, apple's software does, in fact, start slowing them down. but apple says it is all in the customer's best interest the tech giant says it purposely slows down the devices to prevent older phones from actually shutting down unexpectedly i have an iphone 6, which some people consider to be an ancient device >> i would say >> my younger brother has an iphone 4s. >> it's working? >> he says he needs to upgrade soon none of the software is compatible with his device >> i feel how clumsy i am, i always drop my phone

i can only keep it one year. i need an upgrade every year. in london, meghan markle's toronto home is already off the market page six reporting the two-story home, decked out like a california bungalow was put up for sale around 1$1.1 million ad sold in less than a week the three-bedroom home has an eat-in kitchen, landscaped garden, finished basement and two-car garage she's getting rid of some of her assets as she looks to move to london >> looks like an upgrade >> certainly so. coming up, our must-reads. >> as we head out to break, check out the futures. stable for now firming up a bit stick around "worldwide exchange" will be right back

welcome back to "worldwide exchange." i'm seema mody alongside dominic c chu. time for our must-reads. my pick is titled populism is failing, but it is too soon to cheer. many expected 2017 to be the year when the populous swept away before them in the event they were mostly held at the gates. the nativist wilders failed in the netherlands, and marine la pen w le pen was beaten by emanuel

macron in the presidential poll, when the glass is half full, is it worth saying so do you think populism, the risk is largely dissipated? >> it doesn't look like it i think it's here for a while. the globe is rife with people kind of unhappy. it's here. >> still something to watch in 2018 >> my pick is in the "new york times. away in a manger or under a palm tree this is a turkish scholar. jesus of nazareth must rather have been an amazing man who captured the hearts and minds of not just his contemporaries but many more to come. his legacy is so great two of the world's greatest religions, christianity and islam sing his praises, even if they disagree on his theological nature or his exact birthplace so this christmas say glory be to him as christians say or peace be upon him as we muslims

do and either way, merry christmas to us all. it's this idea that different religions or different accounts, even in christianity with regard to the story of jesus birth, yet we can all come together this time of year and talk about the spirit of christmas and the holidays perhaps a good story i will go around and wish people merry christmas to you, and i hope people in turn will say happy hanukkah >> very nice following on that populism downturn. >> i want to remain positive >> we're approaching the top of the hour the team at "squawk box" is getting ready. becky quick is in new york, times square, with a look at what's coming up happy holidays, merry christmas, happy new year to you.

>> happy holidays, merry christmas, all of those things good morning we have a lot of things to talk about this morning front and center is the tax plan we know that the republicans are taking their victory laps now. we're hearing from businesses about the changes that this might mean you guys have been talking about this we'll see what's to come and it may take a while for the average taxpayer, to see how this affects them out to april of 2019. we'll see what this means for republicans between now and then it's an unpopular tax plan, but we'll see what businesses are going to do with this. we have a full lineup of people coming to us from washington to talk about not only what they're doing with the tax bill, what this means, but a lot of business has to be finished between now and the end of the year, including making sure they can continue to fund the government we'll be joined by a host of speakers paul ryan will be joining us

that's at 8:00 a.m. eastern time kevin brady, the house ways and means chairman, responsible of putting so much of this together will be with us today. senator bob corker who voted no the first time around but yes the second time around, we'll talk to him about what changed his mind and what he thinks the bill will mean plus we have house minority whip steny hoyer who will be joining us from the hopposition to talk about what he would like to see. a full morning from the business reaction, the market reaction, and then the politicians kind of weighing in. >> sure. good show coming up. >> a who's who list of primary sources in washington. >> becky quick, thank you very much still ahead on "worldwide exchange," the countdown to 2018 r ur mtell you what's in store foyooney in the new year stick around, you're watching cnbc

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welcome back to "worldwide exchange." with us is linda bakshin, portfolio manager from federated investors, and mike holland is still with us. do you see now that we have the passage of the tax bill, the market discussion moving towards other economic policies that could come to fruition in 2018, like healthcare reform, infrastructure, or will we try to understand whether this tax reform bill will help the economy? >> i think the tax reform or the tax cuts will add about 25 to 50 basis points to gdp growth in 2018 more importantly the discussion is really going to be about these companies increasing their capital expenditure and the multiplier effect it will have on the overall economy these companies have not been investing in their capital structure for the last ten years. so the next five years is going to be key. we're seeing a number of companies already announce

capital expenditure, wage increases, and charitable donations and increasing wages and bonuses. politics is never far from discussions and healthcare and infrastructure spending is something we'll be talking about and creating volatility through 2018 >> let's talk about the playbook for 2018 we heard about some of the industries that could benefit because they're higher taxed now. how are you positioning your portfolios over at federated for what will happen with this anticipated effect of taxes, are certain sectors or industries going to be better off than others >> sure. at federated we have an s&p target of 3,000 by the end of 2018 we are overweight equities we do think the u.s. will have strong economic growth as well as global growth continuing to be pretty strong as well the fed is going to continue to remain accommodative throughout the whole 2018, in addition to

tax cuts helping the overall economy as well. for us we are -- we have a balanced approach with a tilt towards value investing, since that's where we see the greatest investment opportunities areas like financials, where they are seeing deregulation, not for themselves but also for customers. in addition to rate increases helping net interest margin and hopefully economic growth spurring loan activities, that will be positive for financials. tax cuts are another area where it will touch industrials as well as capital expenditure, and light indust ram trials as well we're not abandoning growth either, technology is an area where we will be focused valuations are not cheap but not expensive either they won't be a huge beneficiary of the tax cut but their growth rate will continue based on the capital

expenditure that these companies will do. >> mike, your quick thoughts, repatriation, is that a big boost for tech companies in 2018 >> it's another boost for the tech companies in the coming year i think we'll have surprises on the upside from the tech companies directly resulting from what we saw yesterday i think the overall economy will be the surprising to the upside, that will be an offset to your referenced upswing in the yield growth >> that's something we'll have to watch of course bitcoin, which i was just checking, down $400 on the day. you have to wonder whether the bullish excitement, all the optimism around cryptocurrencies is now starting to fade, or is this a one-time thing. >> thanks to linda and mike for being here we'll watch a lot of things. earnings, big nike earnings after the closing bell a big day ahead for markets this

day after tax reform legislation passes >> that does it for us on "worldwide exchange. thanks for joining us. sqwk box" is coming up next 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.

good morning it's a done deal tax reform a live report from washington, we'll bring you a full rundown of the reaction in the markets, including all these companies with the bonuses, the capital spending sharing the wealth several big companies are raising wages and handing out bonuses in the wake of that tax overhaul how much more is yet to come the ones who didn't do it are probably scrambling. the commerce department announcing duties of nearly 300% on a bombardier jet. now the company is responding. it is winter solstice, the

shortest day of the year i think my sign moved back into something with saturn. one place said it was good another place said don't make plans. i don't know what to do, it's thursday, december 21, 2017, "squawk box" 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. let's look at the u.s. equity futures. yesterday the markets ended lower despite the passage of the tax bill you can see now that it looks as if the dow would open up by 17 points the s&p up by 3 a1/2 and the nasdaq down 4 1/2. let's look at what happened overnight in asia. the nikk