belong to synchronized global growth three hours to go, we'll all make it somehow, you're watching "squawk box," and it starts right now. ♪ live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. the last day before the holidays i'm becky quick along with joe kernen andrew is out today. >> early christmas >> for the next two hours, steve grasso, a fast money trader, great to see you >> great to see you guys >> we will talk about a lot of things, let's look at the u.s. equity futures we did see the markets, the major averages see some gains

yesterday, they were off the highs of the session this morning green arrows are indicated once again, but modest advances the doi ww was up by 10 1/2 poi, the nasdaq up by 3, the s&p up by 3 the gains have been significant this year. have we seen 71 days for the dow? >> 71 records. but 22,000 on the point 2,000 p before we got to the new year. >> i think i heard president trump say 85 >> that could have been from the election to the first of the year that's probably what it was. bitcoin today, did you see it? >> yes we should probably show that we show it every time. we will show it after the ten-year >> ten-year is back under 2.50 >> but it was above 2.50 at one point yesterday. the highest we've seen since

june or earlier. maybe april. you look at the ten-year note, yielding 2.486%. looking at bitcoin -- >> actually it's coming up a bit. some of the dbig stories -- >> there's bitcoin >> okay. it's not so we got our first christmas vacation vignette out of the way on the opening there will be a few of those >> a great movie how many times did you watch that over the holidays >> i think we'll watch it again. that was the apex of chevy chase. and cousin eddie >> he was around for independence day, too. >> but as cousin eddie >> randy quaid, he lost his mind now he has the beard, looks like david letterman. both those guys should start a cult somewhere we'll do a lot of that we have the norad people on. >> yeah. to tell us where santa is.

>> that's one of the great lines, clark says, hey kids, an airplane just spotted santa coming across -- >> cousin eddie goes, are you serious? i saw it a couple other times. >> crazy the way cousin eddie brought his boss in like that. a couple people watching the show probably could use a cousin eddie this holiday season. lawmakers striking a last-minute dole to aveeal to aa government shutdown. the measure will keep the government funded through january 19th that's when it will really get nasty. a live report in a couple minutes. president trump could sign the new tax bill today, here ret

theoretical theoretically. in january, schumer says we'll be okay this time with this funding, wait until january 19th, we'll squeeze you like a lemon. >> everybody wanted to get out of there >> daca, all kinds of stuff on january 19th nike reporting profits -- that's no way to run a government month to month. >> that's no different than what we've been doing >> nike beat forecasts, but gross margins dipped nike shares, as you can see, down about a point speaking of sports news, dick endberg passed away sudden, our sympathies to his family he was 82. play by play, he was as good as any. oh my. oh my. that's what he used to say >> eloquent without being pretentious. >> that's right. you never thought of him that way. nice man

elsewhere, this is -- i don't know alphabet executive chairman eric schmidt will step down he will be transitioning to a technical adviser role schmidt first joined google back in 2001 as a ceo schmidt saying i believe the time is right in alphabet's evolution for this transition. shares not moving much but he has a big foundation. also he can be more technical in transitioning to ai. the post delves right into the wait a second, is there anything going on here with -- because it points out, he had this reputation as a womanizer for 37 years or whatever. an understanding or something with his wife. they stayed married, but he always had a girlfriend or something.

his wife said i've -- she was going to file or something, but then said i feel like a -- did you read it in the post? i felt like a luggage, following him around the world that raised eyebrows, but they say there's nothing there. they would have fired him outright >> that's what i thought when i first read it, you can't stay at a company or stay on the board if those are the things you're being taken out for. the idea he's there and staying there -- >> this is the wrong year if you have to resign or retire or move on >> for any reason. >> there's always going to be speculation. >> especially if it's well known, there was an alternate lifestyle type arrangement or whatever however you want to view that. i don't know it's christmas let's move on -- >> merry christmas, another cheery story if you own bitcoin. the cryptocurrency losing a quarter of its value overnight there was no clear reason for the selloff. you can see right now it's trading at 13,805. joe, you said it was down to

12,000 and change. that drop triggered temporary trading halts on the bitcoin futures. you can see even the difference between those two prices, still $100 both down by over 9% we will continue to watch this throughout the show. stocks to watch. roche is striking a deal to buy u.s. cancer drugmaker ignyta roche will pay 27 bucks a share, a 74% premium to yesterday's closing price. ignyta has several drugs in development that use gene therapy to kill the understand lying diseases of the growth of cancer tumors. novartis said the fda granted priority review status to its combo therapy treatment for stage three melanoma priority review expedites drugs that are expected to have a significant impact on the

treatment of a disease back to today's top washington story congress passing a spending bill keeping the government open and setting the stage for a tax cut signing. kayla tausche joins us from capitol hill with the latest it looks like everybody will get to go home for the holidays. >> and they may already have it was the last major move of the session when both chambers last night rushed to pass this short-term spending fix. it keeps the government running for a month. all the lawmakers were able to head home for the holidays the bill heads to president trump for a signature. we'll wait for that and the tax bill signature as well rand paul voiced concern about the package because it lifts the spending caps to fund the bill he spoke last night on the floor wanting not to lift those spending caps and chastised his colleagues for supporting a move that would continue to keep debt limbs unchecked. >> spend more on interest than national defense, more on interest than welfare and everything else. so those who say we have to have

more money for military, we have to have more money for welfare, you will have none of that if you keep spending money at this rate >> the senate didn't even consider an $81 billion disaster relief package that the house passed for wildfires in california and continued hurricane recovery because of disagreements over its size and allocation instead it will consider that in the new year as well so add that to an already crowded legislative calendar before the year even begins. congress is now facing this january 19th deadline to reach long-term spending deals and a compromise with democrats over raising caps on defense spending leader mcconnell has also promised senators he will prioritize bills to stabilize healthcare markets and get a sustainable policy for dreamers. on top of that, the house wants to begin work reshaping entitlement spending and the white house will unveil its

infrastructure spending program in january the white house will be working with fewer key people in the new year with departures reported of the deputy chief of staff as well as gary cohn's number two, jeremy katz. no doubt it's shaping up to be a busy and potentially grueling january in washington. >> let's talk about some issues you brought up i heard an interview with mitch mcconnell this morning, he thinks that 2018 will have to be a more bipartisan year he knows the house and paul ryan is looking to cut entitlements he said he doesn't know of entitlement cuts that could possibly work if it wasn't bipartisan in the senate maybe that's a nonstarter, unless they can find another way around it. joe mentioned the idea that the democrats, chuck schumer saying forget about it, we'll hold their feet to the fire in the house it could be the republicans and some of their own caucuses that they have trouble with next year >> yeah. in the house, that's been an issue for the last several years. i wanted to talk about this, the

chuck schumer remarks. a couple days ago when he signaled he would be open to getting democrats to vote for this short-term deal, which by the way only had a handful of democrats last night that helped waive it to passage, he said he wants a global deal, a comprehensive deal he wants all his priorities. if it doesn't happen this week he will push for it in january expect some heat to be put on leadership if they don't get what they want in that form. the entitlement question is an interesting one. i heard lawmakers on the hill and people in the white house who are saying that the only way to actually cut entitlements is to use this special vehicle that republicans used for tax reform, where you only need republican votes because they don't think the type of cuts and the type of reform they want to enact will get any democratic support so the fact that mitch mcconnell is throwing cold water on it means that he doesn't think the

senate can actually pass that. the path for the house and the white house so far would have been to use that 2018 vehicle that they call reconciliation. once they pass a budget next year, to do this entitlement reform if mitch mcconnell doesn't think it's feasible, perhaps it's not. >> all right >> kayla, thank you. let's switch gears and go back to prospects for what the economy looks like after all this political stuff joining us for more on the markets, let's bring in mark vitner, and our guest host, steve grasso it's $15 an hour now, right? is that wells fargo or is that fifth third? are you -- >> i think both banks instituted that same policy >> that's good i was trying to remember, i'm getting you mixed up with bruce kasman with jpmorgan he has not been optimistic, i don't think. you have not been pessimistic,

have you gotten more optimistic? you're at 2.7 for the gdp now for 018? >> we are definitely more optimistic >> than you were or than other people >> well, we were on the low side of consensus for most of the last eight years >> that's what i thought >> we had been looking for stronger growth in 2018. we were expecting the tax cut, and throughout the past year we've been optimistic that the roll back in regulation would unleash stronger business fixed investment, which it has i feel like i'm more optimistic on the tax cut than the general consensus now. i think we're freeing up a lot of capital that's been on the sidelines that has been misallocated when you allow capital to find its highest adjusted rate of return, good things happen to the economy. >> that's what's left out of a lot of the half empty thinking that's one thing i saw in your notes, that i was hoping you

would highlight. when you're at zero on interest rates, it seems like you don't need to take any risk, and so you do buybacks, you do things like that. as it starts moving up, you have a chance, a stronger economy to expand or to -- if you anticipate demand picking up, then you might actually use it to hire. you might use it for wage gains. you might use it for the things that the naysayer companies won't do it may just happen because of the way market forces work >> that's what we expect to happen if you look back at the last eight years, we had low returns, a highly regulated economy, a lot of people were buying real assets they were not buying productive assets that's one reason that productivity growth has been slow that's one reason we have been stuck with 2% gdp growth if we get more business fixed

investment, he can with get productivity growth higher there's also provisions in the tax code that make it a bit easier or create a path for folks to come back off of disability and come back into the work force so hopefully we'll get stronger labor force growth out of this i don't want to get too optimistic about that. i think it's a tough road. but i think the potential gdp growth, this tax reform will boost potential gdp growth and it pains me every time i hear people say we'll have stock buybacks, people will increase dividends. that's how capital finds its highest risk adjusted rate return >> a lot of people don't want it to work. they don't for whatever reason. any way, 2.7 is below the 3.2 that we found out yesterday. it's below whatever it was in the quarter before that. so -- you still feel like you're out and over your skis being too optimistic

that's weird you have the same -- you have the same conditioning everybody has had over the past eight years. just go for three. say we'll do three >> i wish we could i'm worried about supply come straights. i think home building is set for great things, but builders don't have enough lots they don't show up they don't show up overnight or in a year's time they don't have enough workers we don't have enough building materials capacity to ramp production up all that much. so we probably get a 10%, 12% increase in single family starts that's pretty good that will be meaningful for sfo folks, but it's hard to get up to 3% growth for an entire year. >> you said you're concentrating on the tax cuts. if you look at it, this had to be a shock for you when you saw at&t boeing, comcast come out we're not even waiting for the infrastructure from the government comcast is doing their own

infrastructure doesn't that make you more confident that it's this early in the cycle to see that spending >> i was glad to see that happen i think we'll see more of that the attitude shift in washington has been 180 degrees eight years ago we were talking about perp walks, and this year we're saying i'll give you some homework, come back with three regulations that we can knock out so you can grow faster that's a huge change that attitude change is very much alive today >> you did not build that. hillary said don't let anyone tell you that companies don't create jobs. remember that? >> we have gone from you didn't build that to -- >> did you see the disney thing

with hillary clinton's face and trump's air? >> people say it looks like angelina jolie's father. join voigt >> when you go out for christmas morning, do you see a long box, oh, suspenders what about this one? suspenders is that all? is it a bunch of long, thip boxes under the tree is that what i get do you get anything else >> occasionally i get some suspenders >> you have so many different pair it's like -- your family knows what to get you. >> these are my tax cut suspenders they have cut tax on them right there. >> wow >> he will get more now. >> i wonder what that could be under the tree doesn't even help to wrap things for you. thanks, mark >> good to see you

coming up, there are only three days left until christmas. if you have not finished or maybe have not started, don't worry. we can help you. don't panic. we have last-minute shopping gift ideas for you after this. the futures thisa little bit higher. dow futures up by 10 nasdaq and s&p up by 3 we'll be right back. 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?

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find your awesome, and change the way you wifi. ♪ welcome back three days until christmas if you're looking for easy last-minute gifts, we have a few ideas. joining us is style director lori bergamotto. thank you for joining us >> thank you very much for having me. >> i will take this out of order. there's something here i love and i haven't seen before. what is this this is the hasbro fur real tiger. >> he's a good boy >> you like him, joe >> i do. who's a good boy you are. this is one of the hottest toys

now for kids, but also for becky, apparently. and we actually tested this in our good housekeeping institute toy test this was so highly rated we can see that right now it's flying off the shelves so you guys are petting it you can see how it's interacting with you >> it's only acting like this because we're petting it >> if you get close to it and give it a roar get close and roar at it see what happens usually it roars back. [ roaring there it goes. kids love that interactivity i have two small kids, they want a puppy, they're getting this instead. easier upkeep. it's a great gift. you can get it on sale, if you can find it, it is a hot gift, for under $100 >> this is like much better ai

than siri from what i can tell >> it's actually reacting to everything we're doing >> no smell. >> no. >> i know what i'm getting the two of you for the holiday let's talk about this hp sprocket 2 in 1. have you seen this hp sprocket before >> no. >> it came out two years ago this is the new version. you can print photos right from your phone you always say i have to go to this store, this site. i will take a picture of you two. >> ready >> get in there. >> try to get one of my chins. >> wait a minute maybe it's not on. while i'm turning it on, i will tell you, what's neat about it, you can still print from your phone, or you can take a picture. as long as you have turned it on, which i clearly had not done yet. it's compact it's $160. do we need to let tyler the tiger -- maybe we'll turn him

off. >> leave him on. i love him >> he'll be parts of the segment. this is available at best buy. this is a great gift for teens, tweens, even my parents who are over 50 and they have a hard time printing photos from their phone. this is a convenient gift. it's so compact. >> it works with the iphone or what >> it works via bluetooth it works with any smartphone. you can just click on the photo, and it prints out or you can take the picture really fun and easy. >> what are these crazy looking glasses. >> if you wouldn't mind doing me the favor of passing that along. these will make you a little dizzy. try those on joe. >> yeah. >> if you look at me, we'll do a demo look up at the ceiling are they making you dizzy? >> no, they're making me look at your legs. >> that's why i said look up at the ceiling. >> these are from -- >> have you not seen anything

that's been -- >> this took a horrible left turn >> i put them on -- oh, my god >> that's why you need to look up at the ceiling. up at the ceiling. i will hold up some numbers. how many fingers >> 3 >> the reason i'm doing that, when you're laying in bed and you want to watch tv or you want to read a book, you can leave these on they are called the lazy bed glasses. i like joe is into this. these are only $10 they're a great stocking stuffer. it does make you feel lazy >> no, it makes me feel dizzy. >> that's why they're great for bedtime. you're just laying in your bed >> hasta lavista >> if anybody is watching "squawk box," they're bleary eyed, they can lay in their bed, recline, see becky and joe >> you have just shown me three

gifts i want already >> i love it >> what else do you have >> this is the nintendo switch were you a big anyone tend to player >> no, but my kids are >> this is the hot gift right now. it is a little bit pricier, it's at $300. what's cool about it, you can play it -- do you remember -- i feel like our generation was the game boy >> thank you for saying our -- >> joe, come on. >> thank you for saying our. >> i had to make up for the whole leg thing. >> i'm still a little bit -- you just fixated -- >> moving on >> so the nintendo switch has these two controllers that you can pop out. so that you can play with it as a handheld device. of course i'm having trouble you can play with it as a handheld device or take these controllers, plug it into your home console and it becomes an entertainment system so you can play it here.

>> this is the actual controller >> exactly you can play here, on the handheld, take the switches off, and then have it at home and play big video games on your big tv joe is just into the tiger, i think. >> me, too i'm totally obsessed with it >> joe keeps giving it looks >> i have three dogs >> how would your dogs react >> they might eat him. >> they're german shepherds, they have the greatest head thing, with the ears up. they would love this >> it's a great gift for the whole family as is the switch, because with the switch, you can play it, like i said, just by yourself or pop out the controllers and play with the whole family. >> lori, thank you i thought i was done with my christmas shopping, now i i i'm not. last you for the last minute gift ideas >> thank you coming up, the top stories plus the fate of the dollar. we'll get one currency expert's

take on the greenback as we wrap up 2017. first here's a look at yesterday's s&p 500 whippers and lose er winners and losers ♪

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in times square. good morning u.s. equity futures at this hour are quiet, up about 10, well up 17 now improved a little. dow up almost 18 s&p indicated up 4 nasdaq indicated up 4. we should be winding things up at some point. the next week is never usually that action packed bitcoin we're looking at bitcoin whenever we look at futures. i wonder how long we'll be doing that maybe forever, maybe not >> it's a good thing we're doing it today, if not, people would only say we're putting it up when it's going up >> for a moment it lost 25% of its value, since yesterday >> break it out a couple months, it's a different story >> it started the month at 12,000, then went to 20,000.

then back to 12,000. any way, making headlines, apple is being sued after the tech giant admitted to slowing down older iphone models to keep them running longer two california residents who own the iphone 7 have filed a class action lawsuit they argue apple never requested consent from them to slow down their phones boo-hoo. >> not getting much sympathy from you >> class action suit i don't know >> a little over the top >> seems like it the dollar's performance against a basket of currencies bouncing around in the fourth quarter, that's after a steady decline the first eight months of the year. for a look at what we can expect for the greenback in 201, we are joined by alessio delonges this has been an interesting year i was shocked at how much pressure the dollar was under at the beginning of the year, especially when you look at our central bank and think they'll

raise rates faster than everybody else what do you think plays out in 2018? >> that's the most interesting point of 2017, we're seeing the largest disconnect in history between relative interest rates, relative monetary push and what happened to the dollar the dollar weakened pretty much against any currency in the globe, with the exception of the turkish lira and the euro has been the strongest currency around. the key for 201 is how mu8 is hf this disconnect will continue? i think with respect to the euro, we need to continue watching the potential for continued equity inflows in the eurozone it's the first time in a decade that in the eurozone we see stronger growth than in the u.s. the acceleration is powerful you have an enormous account surpl surplus, so the trade flows that drive currencies are in favor of the euro that is expected to continue

against that back drop, you are going to see some potential dollar strength due to repatriation flows as a result of tax reform. by in large i think there will be short-term volatility and short-term dollar strength that we would be selling into so our expectation is for another weak dollar year, but not as straight line of dollar weakening as we've seen in 2017. more range bound, more volatile, but overall some dollar weakening in the cards for 2018. >> you know, i had not thought about the repatriation and what that will mean again, i'm shocked, even thinking of it as another weak year for the dollar. what happens if the fed surprises and raises four times as some people think they might do >> it is a possibility we are not leaning in that camp. >> are you looking for two rate hikes or three >> two for sure. three is a close call. mostly it is priced in if you go beyond that, the

situation changes. it's also because you start dealing with an inverted yield curve, you have to see where the ecb is and it will likely be close to the beginning of raising interest rates or clearly into exit strategy mode. >> when youlook at this year, where all correlations have been off, when we can't look at monetary policy as a driving force behind currencies, does inflation come in there or lack thereof? people that trade currencies what is their benchmark they should be looking at if they can't look at inflation and it's not reliable, you can't look at central banks, how do you trade currencies now >> that's a good point inflation has been not a factor. the lack of inflation has been more the theme we've been looking at other things i think inflation will remain a critical component in assessing emerging market currencies lack of inflation and inflation surprises there will be one of

the first and most important building blocks to continue to have an overweight exposure to em classes including em currencies. that's important to keep in mind >> thank you very much for joining us >> thank you coming up, we'll look at some stocks to watch for this morning. plus hit the road, jack. qualcomm looking to get a piece of the self-driving auto market. details when we return you're watching "squawk box" on cnbc ♪ ♪ ♪

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but look, we'll get through this together. and remember... we at the imaginary friends society always have your back! welcome back it's time for the executive edge qualcomm getting a permit to test self-driving cars in california the company introduced a chip set in october which lets cars talk to other vehicles at things like traffic lights. qualcomm is testing ford vehicles that contain its chips. nvidia and samsung are also competing in the self-driving auto space >> it will be like the movie "cars" they're all talking to each other >> i don't think they're actually talking it's not like lhey.

nice hub caps. >> they'll be wearing those glasses. >> yeah. there's a lot of things you can't say, i won't say them. different car -- it would be misconstrued a senior member of the house financial services committee calling for a hearing on ubs bonds sold in puerto rico. this following a cnbc investigation report by leslie picker that found that the wall street firm was not forthcoming about the risks associated with this proprietary bond fund sold to residents on the island >> papa john's founder is stepping down as ceo that change is effective january 1st. john schnatter made controversial comments saying that the protests by nfl players were hurting his company's sales. papa john's is a major advertiser during nfl games, and schnatter is the public face in those ads.

white supremacists were praising him online he will stay on as the company's chairman >> at the end of his commercials, he always says better ingredients, better pizza. that was after ten takes that was the best one they got with him he always looked -- not that everybody is great in front of -- >> as opposed to us who are so suave. >> some people are better spokespeople some people are better ceos. he has these weird expressions john, one more time here okay take 12. then finally the 28th take, that's the best one they got any way. sad news we talked about it earlier legendary hall of fame broadcaster dick enberg has

died he was known for his familiar "oh my" calls. he worked for nbc, cbs, espn before lending his legendary career just recently as voice of the san diego padres i love when he did the rose bowl or college bowls he's great at football he's a friend of the show. friend of mine a nice, genuine guy. nice guy our condolences to his family. he has some young kids still he had a son, i was talking about that with you, his -- he was an old father at one point that is something you think about. because you want to -- i'm glad he lived to 82 i think his son is in his mid 20s. that's one of the concerns he expressed. >> 82 does not sound old to me >> it doesn't. it was sudden. he was all dressed and ready to go on a plane. >> waiting for a car to take him

to the airport we'll miss him terribly. when we come back, 'tis the season for shopping. courtney reagan will join us from a new york mall with a snapshot from the ground courtney, what do you have >> we were at a ship facility, then talking same day, now you're running out of time, if you have things you have to check off your list, you have to go to the mall i'll tell you what to expect this weekend it's going to be a busy one. when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and.

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♪ welcome back to "squawk box. it is the final countdown to christmas. in the retail world that means big business super saturday is considered the second busiest shopping day of the holiday season courtney reagan joins us live from the queens center mall in new york with the pulse of the last-minute shopper. >> hi, becky good morning that's right so this christmas season is different because of the way the calendar is playing out. it's already been pretty good by almost all estimates we heard so far. because christmas falls on a monday, that means you have this earlier cutoff times for package delivery, but it also gives you an extra weekend to get to the stores for last-minute shopping.

this weekend shopper track expects tomorrow to be the second busiest day of the season behind black friday with 126 million americans. that's more than half of the u.s. consumer population planning to shop according to the national

it opens toemt morning at 8:00 a.m. i mean, it's opening today too, but it opens tomorrow morning at 8:00 a.m. and then it's going to stay open until 7:00 p.m. christmas eve. back over to you, guys >> all right, courtney i don't know i don't know if you have seen this i need you here for this because i don't know what i'm talking about here, but bots may have helped -- may have helped you buy this holiday season. retailers are using more emerging technology to win over your wallet. joining us now to discuss the latest retail tech trends -- you got to work with me. pretend you're talking to a small child.

she's a consultant -- same with steve. she's a consultant at bain and company. all i know bots do are call me and try to sell me solar panels on my phone. they do other things too >> yes, retailers are using them there's been an increase in bots in chat that retailers will implement through a facebook messenger bot functionality or an on site chat bot functionality that actually tries to interact with the consumer, very much like a customer service representative using sort of artificial intelligence to try to predict what a consumer might need >> in a store? on site? becky, have you seen this? >> you've seen a bot interacting with you -- >> they've had bots around since

1999 >> what? snoo you lo you lost me on the facebook and -- have you seen this? >> i can't say for a fact. maybe it was a bot >> you don't know if it's a bot or a real. >> you mean on facebook? >> on facebook or on a consumer's website >> on a website. in a store you would know, wouldn't you you know that tiger wasn't real, right? or did you >> we've done a package -- somebody did a story about -- oh, it was -- who did it it was eric. eric chemmey did a package >> how do you know that eric wasn't a bot >> well, he was a person >> other than this, that's bizarre what i'm hearing right now. five years from now what's it going to be like when you are doing these things it's amazing the technology advances for retail. >> yeah, absolutely. >> i think retailers are making more and more advances in ek it nolg retailer that is have traditionally tried to break down the barrier for consumers who are making purchases and they can't visualize that

purchase, they can't visualize what it would look like on their body or in their home, so using augmented reality. >> that i understand okay >> you would be looking on your device, and you could see it from different angles. desk, chair, couch okay got that all right. check on that one. chat bots, you lost me a little bit. >> in order to make a search on a website, you would have to know if you wanted a rug, you might have to know the brand of the rug, you know, some sort of descriptor to look for it text-based image base changes the game because if you have just a photograph of something, you can upload that into a website, and you can get a couple of things you might actually get the exact item you might not get the exact item, but you might get something similar. i think it allows retailers to just capture a whole set of search for consumers where they may not know exactly what

they're looking for. >> that's really quite hard. >> now i'm getting it. this really -- a.i. powered stylus that will look at your fashion choices, your mix and matches. if they looked at grasso's outfit told they would go -- no, no >> that was a good noise that you just made. >> they will look at selections of outfits and whether they match or whether they're stylish for you or -- >> that's part of it i think part of it is helping you make the choice if you are buying a number of pieces together another part of it that could be predictive might be if the site or retailer has information about everything that you have bought in the past they might be able to say you liked this tie or you might like this other tie >> an approach to what they would show you you don't see things that you know -- i haven't thought of anything bain -- you people sit up there just sitting around thinking of this stuff like that yeah then do retailers come to you and you consult with them on how to do these things >> yeah.

i think we look across a lot of what retailers are doing we've had the opportunity to work with a lot of retailers as they are both thinking about what might solve the customers' need but also testing a lot of things in their stores >> that's part of consulting, right? >> yeah. >> pretty cool do you know any of this, grasso? >> i did >> you didn't. really >> yeah. i mean, it's not that in the weeds. this is stuff that's been going on for a while, but i think the social aspect and picking your pockets and taking pictures and learning about your living room, i think that's going to be a conflict for a lot of people once they start to think about privacy. >> all right thank you. bain is in boston too, isn't it? you got an office in this new york as well >> exactly right down the street. >> all right >> thanks a lot. >> when we come back, this morning's top stories including washington taking steps -- wait a second are you leaving? >> no. i'm here >> good, good, good. keep the government open for business in washington we're going to talk all about that plus, just do it we will tell you why shares of nike are under pressure today.

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lawmakers strike a last minute deal to prevent a government shutdown. nike's stock takes a tumble. what the dow component is saying about future sales is coming up this morning with the individual mandate repealed, how will health care landscape change we're going to hear from health care disruptor oscar hill on what they're expecting in 2018 the second hour of "squawk box" begins right now ♪ it's friday, i'm in love ♪ monday, you could fall apart >> live from the beating heart of business, new york city, this

is "squawk box." good morning welcome back to "squawk box" live from the nasdaq market site in times square. i'm here with becky quick. andrew has the day off last time we checked dow was up 17 up 13 now. the s&p up four. nasdaq indicated up just under five here's what's making headlines at this hour congress is going home for the holidays after passing a short-term spending bill, and that bill, which president trump is expected to sign today, avoids a government shutdown and provides funding through january 19th nbc's kristen welker is reporting that the president is likely to sign the tax reform bill into law today, which we expected once we got this other thing done according to a senior administration official. the final trading day, final trading day of the week, is also the busiest for economic data. we'll be getting the latest numbers on durable goods, personal income, and consumer

spending at 8:30 eastern then, later this morning new reads on new home sales and consumer sentiment switzerland's roche is making a u.s. acquisition it's buying san diego-based ignita for $1 .7 billion in an effort to boost its cancer drug portfolio. the deal is worth $27 a share, and that is a 74% premium over the stock than where it closed yesterday. there you can see it >> wow >> pretty nice for anyone that bought ignita. rxdx that's kind of interesting symbol for that stock, right >> it is rx doctor? does that mean medical doctor? something along those lines. we are on bitcoin watch this morning. the crypto currency losing one-quarter of its value overnight. there was no clear reason for the sell-off, but then again, there was no clear reason for the run-up either. take a look at this. you can see this morning it's down by about 10%. that's a decline of $1,500 obviously, it's been an

incredibly volatile price to be watching trading right now just under $14,000. that drop that we saw triggered temporary trading halts in the bitcoin futures that are traded on the cme and cboe, and we will continue to watch this today shipping companies are delivering a deluge of holiday packages ahead of christmas. let's get a peek on the season report card from morgan brennan. >> i feel like there are trucks at my house every single day >> rental trucks >> rental trucks as well, and definitely the companies bring those on as well as extra workers. combined ups and fedex expected to deliver over $1.1 billion packages between thanksgiving and year's end historically, this is the week that's the busiest now, add in the u.s. postal services 850 million packages, the numbers were really eye-popping when you put your head around it how is this going? based on third party shipmate riks data pretty well. on time performance for fedex ground 98% last week

ups ground over 97%. after some early service hiccups. early results for this week show that both are performing even better ups saying demand for its services "remains very strong. we have rusheturned to our peak plan and -- that exceeded operating plans. as for fedex ceo fred smith saying earlier this week that fed six -- fedex is on track they say it is the best peak shipping season ever as for the postal service, last mile delivery, which is what amazon uses heavily, which has been 99% on time, and the postal service just telling me moments ago that each of their sundays was forecast to have six million package deliveries this past sunday they had 10.5 million package deliveries all of the indicators right now that we are seeing an even bigger than expected surge of packages this holiday season overall we don't know the cost we won't know those until

earnings, but operations do seem to be going as planned, and it's pretty incredible when you think about it >> that's what i have been stunned by is the actual ontime deliveries they've had on these things, successful deliveries. it just -- the idea of trying to get your head around how you handle that many packages even more than you expect them coming in, what do they do? i asked an analyst this yesterday. >> it is it's pretty amazing. it's not to say that you don't have porch piracy because that's an issue, and it's been sort of on the uptick. there's also been some stories about people going on-line and seeing that their postal service packages were delivered and that they hadn't been delivered you still get some of those stories, lost packages overall when you think about the fact that ups and fedex, they are networks that are handling more than double the average daily package volumes -- >> everyone thinks that they are not even in the game anymore you think of it as ups you think of it as fedex you know, i would assume that the sheer amount of bulk that they are still doing some

numbers there still. >> they are frenemies with ups and fedex. they have really sort of doubled down on package deliveries as we've seen first class mail volumes drop in recent years >> morgan, thank you >> sure. one of the reasons the dow has done so well is nike shares have been on a red hot rally. up over 20% just in the last two months the sports apparel giant recently released quarterly results and beat on the top and bottom lines however, the company's forecast was not as bullish as i guess people were hoping joining us now on the squawk newsline, susan anderson, retail analyst at b. reilly the stock isn't really down that much given the run-up it's had do we conclude that there was some disappointment, or is this just normal, do you think,

susan? >> yeah. i agree. so even though on the surface they beat bottom line and a little on the top line, but the north american numbers were really disappointing north america was down 5%. we were expecting it to be down 1% it got worse from last quarter where it was down 3%, and that's the area where i think people are really focussing on and hoping for improvement >> what's going on to be down at all was obviously expected, but what is the company dealing with currently >> yeah, so we did have a glut of inventory out there in the market all this year basically it does look like that's getting cleaned up that's good news inventory looks much cleaner than what we have seen earlier in the year. the next problem is really just innovation in the marketplace. even though nike did ramp up their innovation pipeline, it does take the time to get the products to market and get them in the market in a bigger way to really make an impact on the

numbers. they do have nike react coming out this february. they have nike shocks coming out in january you know, we're hopeful that we'll see some better product out there. as those new products ramp, hopefully that will start to drive sales and turn them around in north america >> susan, when you look at these sneaker plays, when you look at them in a vacuum, it's usually nike, adidas, and underarmour, and you see the performance level. nike up 27%. adidas up roughly 12% year-to-date and underarmour got slammed. how much does the tax policy go in with effective tax rates with under armour and nike being much lower. is this an opportunity for underarmour in a rotation? >> well, yeah. underarmour should benefit more given the fact that they have less international exposure. they are almost 20% whereas nike is almost 6 positivers approximate. that alone will give them a better benefit however, you know, i do -- i would expect nike to be repatriate some cash

that would be a benefit for them i think underarmour in a worse position they don't really have a huge footwear business. the apparel business has started to become very commo dot ized, and consumers have started to move away from athletic wear that's going to be tougher to turn around. also, under armour trades at a much higher multiple than nike i think investors continue to invest in nike because it's much more stable. it does have the international exposure, which has allowed it to diversify away from north america, whereas underarmour is exposed to the market that has been struggling. >> great, susan. thank you. we appreciate you joining us this morning >> thanks. >> k on. >> thanks, susan happy holidays to you too. joining us right now for a broader check on the markets is steven reece he is investment specialist at jp morgan private bank also, jason pride, director of investment strategy at glen immediate. our guest host is steve grasso of stewart frankel, who is also

a cnbc contributor guys, let's just talk about expectations for next year because there's been so many things that have changed with the passage of the tax reform. people trying to rerun those numbers. steve, you're looking pretty optimistic >> we're pretty optimistic expectations are high. i don't think they're high enough we think earnings next year can be at least 20% for the s&p 500. of course, this year was a great year next year will be even better. beyond that, we are focus says on 19, and it's going to be a more normal year you are looking at 170 to 175 in earnings by 19 on that basis today the market is up at 15 multiple on 19 a low 16th multiple on 18. i think all of this concern that the market is in a bubble or over valued i think is unfounded. clearly, you want to be more thoughtful in terms of how you get exposure next year and try to barbell a bit and look for strategies that might be a bit less directional if you are fully invested, but overall we're looking for a good year next year. >> you are looking for double digit gains. >> double digit to mid teens, including the dividend, and that might be ontario mystic, but it really comes down to the tax reform and the earnings that we're seeing as well as the

underlying economic improvement. we haven't seen the global recovery this strong in over ten years. i think people don't really know what to do because we haven't seen every country looking for better growth next year in the recent past. it's going to be an exciting year you could have some bouts of profit taking, of course, after a great year like this, and we want to be prepared to take advantage of the pullbacks and reposition portfolios. >> what do you consider a pullback 5% or more than that >> i think people have pullback being 5% to 10%. we should consider 2%, 3% pullback that's worth buying >> any pullback at all, you would say jump right in? >> the fundamentals are there, the earnings are there, and i think people are generally still under invested, and i think as the tax cuts come through, companies either pay their people more or buy back their stock or pay a higher dividend i think it's all quite good. >> are you looking that optimistically >> i don't know if we're seeing quite a optimistic we've been saying this is a long-term kind of long expansion. we're going to continue going into it in the next year that should be supportive for

most risk assets the down side to that is i think where we partly disagree is that valuations are sitting on the upper end of the stretch, and at some point in time that actually causes a little bit of a head wind the federal reserve is probably going to be acting a little bit more aggressively next year. i think three rate hikes is right in the bag that should taper some expectations on both where bond yields end up and markets, and then generally, both of those two things combined could actually be an offset to a lot of this other good news. it's not to say that the fundamental story isn't good, that the tax rate is not good for u.s. equities in the bottom line profits, but valuations are high as a starting point, and we just went through a really strong year. i think the odds are that the skeptics may actually win the day next year instead. >> steve grasso, you're an active trader on a daily basis, and, you know, steve is right. when you see pullbacks, we've been waiting for this 5%, 10% pullback, and you've had to watch prices climb, climb, climb. how do you deal with that? >> when you look at it, i not a

pullback where people look to sell they are selling one thing, but they're looking for an opportunity to buy something else we've seen it late in the year we've seen it with retail names. we've seen it with energy names. it's not let me liquidate my portfolio. it's let me see what other opportunities there are shorter term and then i'll wait to get back into those high growth names at a valuation that's reasonable >> i think there's a rotation to value that could happen. value has underperformed by 14 points it hasn't done well as the overall market and the value sectors will benefit more from tax reform >> what are you talking about? financials, industrials to start the year still looking compelling to us >> they are going to be the ones that get the biggest beneficiaries. >> we're going to talk more about infrastructure, and that supports industrials longer term you want to barbell

that you can position portfolios to be long equities, but actually over-right some options on top of that. that basically sells calls against it to cap some of your up side. collect premium along the way. it ends up protecting you on smaller down side moves. that can actually feel pretty good if you do that for a small portion of the portfolio >> what would you say the biggest risk to stocks is as we head into 2018 is it aggressive fed is it some unknown event >> i think the fed we've become -- the fed sees no way around inflation i don't think they're going to be as aggressive to sort of pop this equity bubble because that's where you get returns i think it's always going to be geopolitical, and those seem to be buying opportunities to steve's point for whatever we see. >> i think it's earnings there are expectations that the tax comes through in a smoother way. i think china is always out there, and inflation no one is talking about it, but

tax reform, the end of quantitative easing, wage growth i think it can all be potentially inflationary >> anything to add to that >> i don't know if this is something to worry about this year, but one thing that does bug me about the tax bill that was put in place is this 30% of ebid cap on interest expensing basically it creates a rachet up of tax costs in the situation that earnings actually do slow down for companies that is typically -- that's going to be pro-cyclical in nature >> talk me through that again. >> if headline revenues and pre-interest, pre-depreciation arm ortizati armortization. it's counter cyclical in nature. this is the first time we've chosen to put something in the tax bill that is pro-cyclical in nature i personally think that's a mistake. i like the general thesis of it that you are trying to dame interest expense and push the incentive to capital spending, but by doing it with a cap on interest, i think it's a mistake in terms of how it's structured.

>> all right give us a lot to think about thank you for coming in. great to see you, jason. >> thanks. >> when we come back, the president touting his tax bill as reagan-like we're going to ask former omb director jim miller about how the plan compares and what we can expect in 2018 stay tuned you are watching "squawk box" right here on cnbc

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president trump calling the just passed tax bill massive and historic plenty of comparisons have been made to the reagan tax cuts of the is the 80s joining us now jim miller, former director of the office of management and budget under president reagan and a senior advisor at law firm king and spalding it's goiod to see you. recognize you from those days. i don't know if these guys really remember you, mr. miller, but it's good to see you >> it's not similar because the situation and the time was not similar at all that's the first thing i would remember i mean, the marginal tax rate when reagan did this where we can't even imagine what they were at that point, right?

in that regard they couldn't be the same >> the reductions in marginal tax rates are much greater under reagan, and the overall effects were very, very large, and, of course, the economy is larger now than it was then, but this is a very important initiative it's not a perfect world there are lots of problems in the tax package, but it's a major advance forward. it's going to increase economic activity, and it's going to be good for america >> it was a different thing in the respect that this was not about individual rates this time it wasn't about lowering marginal rates it crept up there like 70 or whatever it was. very difficult to sell especially in this divisive

political arena we're in right now. i mean, the idea of cutting taxes on corporates to people that, you know, half the country probably has a bad view of corporations overall they don't think of them as job createors and engines of the economy. it's hard to, but i agree with you. it could be as transformative and as positive as the reagan tax cut, but for a totally different reason from the corporate side am i right on that >> in the tax package about two-thirds of savingsavings. one-third on the individual side keep in mind on the individual side, the argument from the critics is that it's not a tax cut for middle class in fact, 80% will receive a tax increase that's just dead wrong you will see that 80% of the middle class will get a tax cut on the individual side on the personal side. on the corporate side the importance here is that it will provide incentives for companies

to expand and make u.s. corporations competitive in the world market you will also get a return of much cash from abroad to the u.s. and the expensing of capital will be further insented to expand. they will benefit from the cuts that they will receive on their own personal income tax, but from the increased economic activity that will bring up wages, increase demand for labor, bring people who are in the -- have just given up, and are out of the work force back into the work force, and the economy will expand.

>> the difference between 3.5 and 2 are -- or whatever is -- you do that over 10, 15 years, and you look at the wealth of the average person in the country in gdp and that goes up. you are going to -- you mentioned the critics lump in that two-thirds tax cut that you mentioned to corporations as a tax cut for the rich thernl what they're doing. it's disingenuous. they know better it took a lot of political courage to do this because it could be suicide for 2018. it really could. we'll see. it had been 30 years that corporate rates were too high. mr. miller, i appreciate your time thanks for coming on appreciate it. >> when we come back, the tax plan passed by congress this week repeals the individual mandate. that was an unpopular aspect of the affordable care act. meantime, the individual market is growing for companies like oscar. we'll hear from the company's ceo and chief policy strategist coming up in a bit

right now, though, as we head to a break, take a look at the futures. they're stubborn right now dow futures up by just under ten points thnaaq b3.s upy 5. e sd up by a similar amount squawk will be right back.

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. among the stories front and center, home security provider adt has filed to go public it was just last year that private equity firm apollo global took adt private for just under $7 billion folded it into a group that included two other security companies. protection one in asg securities apollo will continue to hold a majority stake in adt, which was spun off as you might recall from tyco back in 2012 eric schmidt is stepping down as alphabet's executive chairman he is going to become a technical advisor to the google

parent in january. he will continue to serve on the company's board of directors schmidt had served as ceo of google from 2001 to 2011 and he has a big foundation, which, i mean, guys like him -- it spills where do i put this? >> he has been there since google -- >> 13.6.

>> apparently there's nothing untoward going on here, which immediately people were -- i mean, that's -- that's what they're saying you read it everywhere congers up new -- >> you read that, but there's no way that somebody who is staying on with the company -- >> right, but immediately given some of the other -- >> for anybody that stenz awps from a job, we immediately jump through the headlines to try to figure out what it means, what the deeper implications are. >> if you are bringing up, you know, some baggage along with you that is well known to everybody that has ever read a newspaper. >> this is you >> reading >> this is you -- you want me to stop talking about this? >> maybe >> coin base say it's now resolved a technical issue with -- you know, read the new york post. >> this awkward moment is brought to you by -- >> not awkward for me. it's awkward for eric schmidt. a major exchange for bitcoin

related transactions there you go now -- >> all right here's a note from captain obvious. if you are heading to the airport today, leave early today is projected to be one of the busiest holiday air travel days according to the airlines for america trade group. consider switching your flight to december 24th or 25th those are projected to be the lightest days of the hole day period at this point that may be information that is a little too late to help you out good luck. obama care enrollment numbers are out. the cms reporting yesterday that 8.8 million people enrolled for 2018 coverage. that's down slightly from 9.2 million a year ago, but last year's time window to get covered was much longer. oscar health, meantime, announcing it's going to be enrolling more than 250,000 members in the individual market

for 2018 that number is up 150% from their numbers in 2017. right now let's bring in mahero, oscar health and ceo and co-founder and joel cline who is the chief policy and strategy officer. welcome to both of you where. >> thank you for being here. >> great to see you. >> let's just start talking about the numbers that you have for enrollment for next year you are kind of zigging when everybody else is zagging. all of these other health care providers are stepping back from the market or getting out of it entirely when it comes to the affordable care exchanges. what do you see, and why are you beefing up in this area? >> yeah. what we see is a couple of different things one is that we spent the past five years at oscar building a product that people really want. we have aabout one-third of the members joining because of word of mouth friends and family telling them you should go and check out oscar and buy oscar. we simply think we've got something very powerful now that people -- that really has people navigate the health care system more than any other insurance company. >> when you have been with us many times, we've talked about

it, but for anybody who is not familiar with oscar, how are you different? >> health care is too costly, confusing. those are things that are simple problems that the system has we give you a team of four people, one of them is to help you navigate the health care system we schedule appointments for you directly about two-thirds of our routine health care conditions -- members like pink eye, conjunctivitis are handled over tele-medicine. we can schedule directly on-line with physicians. we sort of like package this all into a much better, more easily usable product that really is driven by the dna we have of putting members first. >> you are the policy expert here we've just seen some massive changes under the tax bill that was just passed and will become law next year. it's going to strip out the individual mandate, the thing that required people to buy health care insurance or face a tax hit on the entire issue. how does that change the health care market? what do you guys think

>> i don't think it's a good idea, but i think its impact will be truly modest we've been saying this for a long time. the reason is we've created a market now, and you just said close to nine million people have signed up those people have now become accustomed to the insurance market they're going to continue to participate. a few people may drop out because of the lack of the mandate, but the mandate has never been enforced. it's been in effect from day one. never been enforced. i predict that the future of health care in america will see a movement from the employer market to the individual market. >> there has been a concern, though, by removing the penalty, the tax personality e penalnalt would pay, you will wind up with the sicker people that are left in this bill, and that's why some insurers are saying, forget it, we don't want to do it because it's going to be way too lost costly. >> i don't see that. i think you'll see a few people drop out, but people need health

insurance. need understand that without health insurance they're exposed, and so i think you'll continue to see -- just like when you started, people were predicting this year they cut the enrollment period in half. they took all the money out for advertising. people said this is going to fall through the floor, and it didn't happen. my expense is the strength of the individual market is the fact that we've now got people who look at this and say i can get health insurance at a reasonable price i can get -- >> there are a lot of people that shay they can't, and ask he they've seen premium cases in double digits. >> that will stabilize >> why what will washington do to stabilize that >> well, first of all, there's a bill coming up right now that people support >> you're talking murray alexander? >> exactly the murray alexandrer bill. that will help second of all, any new market -- if you studied medicare when medicare advantage came into effect, you saw exactly the same kind of premium rises in the early years. stabilizati stabilization. we're looking at our numbers our rates are beginning to

stabilize. we've got this deal we announced yesterday with axa, reinsurance deal, that will also help us stabilize our rates, and a point, becky, that i think is really important, and mario deserves enormous credit, is people like axa, one of the leading worldwide insurance companies. they're betting on us in the individual market. they know what's going down. that's that we've got something that the people want, this consumer driven experience that's really quite unique >> there is news that trump -- or the administration, is going to introduce more low cost plans -- i mean, shortly -- that the way it's being characterized is that it can further destabilize the health of the aca, obama care. is there a way that -- you know, one of the criticisms of obama care is that you had to cover too many things that made it unaffordable isn't there a way to do a bare bones, you know, catastrophic coverage is that what oscar can do? or is that -- you know, there's

no way to do it that way under the aca? >> i think that it's -- that's one of the things we really have brought into the markets we, in fact, are the strongest in the catastrophic plans we sell plans with deductibles that are higher, but you then get free telemedicine, and we give you the free ability to navigate the health care system i do think there are more ways -- >> why is that a threat to the affordable care act to do it without the expense of covering everything why didn't they introduce it that way in the first place? why didn't they give you that option >> i do think you need a base level of essential health benefits, and we can talk about what those ought to be >> the ones that they're introducing now are below that baso level >> we have to wait for the regulation to come out we don't know yet. there are ways to build plans that will be consumer-friendly and won't screw the consumer when something does go wrong i think, again, we at the forefront of building something people really want and will tell their friends about, and that also protects them at a high quality of care. >> we have to go, but very quickly, describe the axa deal

from yesterday you'll be paying them half of the money you take in, but they're going to be re-insuring you? >> it's called a re-insurance. they basically put the very big bluechip balance sheet behind our balance sheet, and we take half of the risk in my market that we go into with them. it allows us to basically take our capital and deploy it more towards expansion and go to new markets. people and products, et cetera >> is there a date, an end date, on this, or is this a forever type of deal for as long as you are doing it, they will get half the business >> there's a contract, but clearly, the intent is for this to be the beginning and to roll out this relationship in additional circumstances as joel was saying before, the reason why axa and other players like huma and cleveland clinic are coming to us, we believe, is because we represent, in a sense, the consumerization of health care that many players are looking for, including other -- >> it's a way for you to expand in a lot more markets very rapidly. >> right exactly. >> mario, thank you very much for joining us joel, it's great to see you. >> thank you have a great holiday, guys good to be with you.

>> folks, we should mention on march 28, 2018, cnbc is going to be holding its first ever health care conference here in new york it's called healthy returns and will feature fda commissioner scott gottlieb, leader of hot start-ups like amy aber nat eeaf flat iron health you can go to cnbc.com/healthy returns for tickets and much more information coming up, it's a massive problem on a personal level. for the u.s. health care system. we're talking about opioid addiction. it's reducing life expectancy overall for americans. we'll talk about the data and the growing problem of ooipids after the break. "squawk box" will be right back. 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.

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. >> s&p futures up by 3.5 the nasdaq up by two >> opioids killed more people in 2016 than car crashes or breast cancer that's according do a new cdc report let's bring in gary. chairman and ceo of chatter proof, a nonprofit organization dedicated to ending addiction. gary, thanks for joining us.

you have info today. i read it. i think it was yesterday on one of the web sites you know, we don't like to see, you know, how long we're going to live, be it go down in this day and age. we have money and science and everything once you realize why, then it's like, oh, opioids. the life expectancy went down in the u.s. >> for two years in a row. >> first time in our history that's happened. every other major developed country, the number is going up. people are living longer and we're living a little less it's been driven primarily by the opioid epidemic. the numbers were just announced. also, convince three days apart people died of an overdose in 2016 63,000 that's 20% more than the year before, but related to opioids,

almost 30% higher than the year before >> we haven't seen life expectancy in the united states decline for two years in a row since the early 1960s. it's a stunning idea to think that this is something we could be doing more about. >> well, that's the whole tragedy of this. this is not -- this is so preventible. it's preventible of so many people becoming addicted, and even worse, those who are addicted aren't getting treatment based on proven research >> can you find documentaries about this there are health professionals and law professionals -- they're overwhelmed. that's all they do the phone, you know -- you could just put the phone there, and it's going to ring a certain amount of times in any given day, and it's going to be the same people that have to rush out to try to bring whatever that is that they can -- >> what's it called --

>> you get a shot immediately that can neutralize the overdose, and you can bring these people back, but -- it's like political sometimes they don't want to give them money to staff all of the emergency responders with that because they think that that's going to -- >> it's enabling >> yeah, enabling. it's like -- it's unbelievable >> well, there's two pieces of it one is reviving someone, which you just have been referring to, which is reviving someone when they've had an overdose. >> right >> and that -- we're doing more, but we can do so much more >> right >> if you think about it, if this were ebola spreading across this country and we had a vaccine that we knew if you developed x, y, z symptom, a pipal on yopi pimple on your arm, and you knew that was dangerous, and we had a vaccine to reverse that, the federal government would immediately ship that vaccine to every household in the united

states you get that pimple, take the vaccine. we have the vaccine for this it's called narcan or neloxone it's out there, but it's not near as prevalent. you could simply say tomorrow everywhere in the united states where there's a fire extinguisher or a defibrillator, there should be neloxone with it >> what is the knowledge base across the country is that the biggest thing you have to battle is that not only can you not get funding for certain aspects of it, but the perception and do people understand that this is as prevalent as it is >> that's a great question, and there are pieces of that no, i don't think they understand how prevalent it is, but there are two other pieces to that. one is the treatment put aside neloxone for a second. treatment based on research. you go to ten doctors for heart disease, you'll be treated the same way based on research, science 75% of treatment programs in the united states or more do not practice treatment that's based on proven research

we talked about that last time i was here we have an initiative that's changing that. the other piece, which we didn't talk about last time or we just touched upon briefly is the shame and the stigma the last time mile an hour son dame home for a visit four months before he died we were sitting on the back porch talking about his recovery, and he looked at me and said, dad, someday i wish that people would understand i'm not a bad person i just have a bad disease, and i'm trying my best if it we think about that as we go into the holiday season here, the holiday week, says if we can create an environment around this country where it's safe and open to talk about i'm struggling with this disease no different than if i were struggling with heart disease, diabetes, or cancer. the shame that brian spoke about would go away. it would evaporate more people would seek

treatment. six million -- people don't seek treatment because they don't want their friends or co-workers and family to know or my son who took his life, he is not in that 63,000. he is in the 50,000 who died of suicide last year. how many of those 50,000 suicides are related to this because of the shame >> the treatment of choice is -- the one that is backed by research, is that methadone? >> there's through there's three. all three they have a little bit of variances of how they affect a person, how they treat the person everyone is different, so each person may adapt at one of the three. >> the end is that you try to not even be using those, or do you have to -- >> not necessarily if you have diabetes, you are

talking insulin for the rest of your life. >> right >> i'm not saying that every person should be on one of these three. it doesn't matter what i say the science doesn't show that every person should be on one who is addicted to opioids for the rest of their lives, but if that is what works for them, whether it's five years, seven years, ten years, three years, or their whole life, that's fine whatever works for that person based on the care of a doctor who is trained in addiction medicine >> right >> like any other disease. >> there is still research into something that might block the receptors in the brain would that be too horrific withdrawal if you blocked receptors in the brain for where opioids work >> the third, naltrextone is a blocker, and you do go through withdrawals for ten days >> it's tough. >> it's tough. once you finish that ten days, research shows that -- a trial just came out a month ago.

research shows that your probability of less relapse is no different -- is no different than any other major chronic disease like diabetes or heart disease. it has same probability of success as the other two >> okay. thanks for being with us this morning. >> thank you thank you for having me again. >> great to see you. >> thank you when we come back, your market playbook for 2018 and some final prediction from our guest host steve grasso. here with the futures. dow hauz turned negative down five points. s&p 500 and the nasdaq still barely hanging on in positive. we'll be right back.

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>> we want to thank steve grasso for being here >> merry christmas to both of you. enjoy your families. good luck with the hasbro fur reals. >> they have two hours nobody else on -- >> unbelievable. i'm grateful for it. >> you on halftime >> no. >> 5:00 p.m. tonight >> you are on fast money >> you know he does this on purpose. he has been razzing you. you are with wapner? >> melissa lee >> coming up, it's crunch time we're going to get you up to

speed on what you can expect when you do your last minute shopping then, congressman john yarmouth will join us to talk taxes and the bill to avd gooia vernment shutdown "squawk box" will be right back. 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.

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>> andrew is off, but no reason to fear. we've got you covered. joe and becky are here and reed from read code is here to talk media, tech, and lend us his brain power. trading in bitcoin has reached fever pitch, but will it lose value or make you quite rich the stock market rising to break elevation. did you miss the trading and get left at the station? >> you should not invest in the stock market particularly >> i am just suggesting that -- >> what caused the rise? trump? earnings or both? or does credit along to synchronize global growth? just one hour left we'll all make it somehow. the third hour of "squawk box" begins right now

>> live from the most powerful city in the world, new york. this is "squawk box." ♪ >> 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. andrew, as you just saw in that clever opening that we applaud, we like that, is off today, sitting in with us, though, this hour recode managing editor and cnbc contributor ed lee. i guess you got a good start on paying for all those christmas presents just by showing up today because of that contributor salary >> it's huge >> massive >> exactly >> you can buy, like, maybe these glasses. >> $9.99 >> it's $9.99. >> you can buy maybe two pair. let's get a check on the markets right now. futures have been up for most of

the session. right now actually the dow is down it's turned negative down seven points. s&p indicated up about two and a quarter while the nasdaq is basically unchanged. it's up one-third of a point the ten-year -- check out the shares not the shares >> i keep checking out the price -- >> the price of bitcoin. >> yeah. >> dropping in the last 24 hours. it got quite volatile. as you can see it's under 12,000 it's now down 12% at about 14,680 it began december at 12,000 and made the round trip. >> it's up 18. >> yeah. >>. >> there's no reason for the drop there's nothing. >> there was no reason for -- >> no reason for it to go up either >> it's purely -- >> speculative play. >> it's a purely sent meant play, right? >> how are you feeling this

morning? i'm going to take some profit off my bitcoin >> i don't know what it really is analogous too block chain. people say that the internet -- we know what happened in 1999, but it wasn't the internet's fault. it was the players in. >> you don't know that bitcoin is necessarily going to be the way that it goes it could be. >> maybe i mean, the thing is back in 1999 with the internet, you know, people were -- now with the internet there's plenty of profit >> bitcoin is not that there's no lever there's no fundamental there's no, you know -- >> it's a great story, though, that you can stay away and circumvent central bankers, and you can circumvent human nature,

and you can circumvent debasing of the currency and can just be based on -- >> it can be, but what are they trading it for >> we're evaluating it on, and it's not entirely -- >> they want the dollar. >> let's talk about what else is happening at this hour nbc news reporting that president trump is likely to sign the tax reform bill into law today. president trump tweeting this morning our big and very popular tax cut and reform bill has taken on an unexpected new source of love that is big companies and corporations showering their workers with bonuses this is a phenomenon that nobody even thought of, and now it is the rage merry christmas. all right. let's check out shares of nike today. that stock under pressure after the athletic retailer beat on both the top and bottom line it did have a drop in gross margins. that was a byproduct of intense price competition. also, if you listen p to the conference call, it was also about how their costs are going up it's costing a little bit more in terms of their sourcing and where they're making some of

these things that is giving investors some pause, but probably not surprising given the rally we've seen in nike shares this year. stocks down by 2.4% at 6,320, but it started out the year just above $50. shares of a small cap pharma company higher thork as well the fda approving the use of la jolla pharmaceuticals. it's a drug for use in treating dangerously low blood pressure it is the final stretch now of christmas that's just two days away. amazon sent this e-mail to prime members this morning today is the last day for two-day shipping if you want to get it by christmas. if you haven't seen it, there it is kind of cute there's your little tiger there. which we now have lots of where. >> you got plenty of those little tigers. better hope some of your kids go to princeton right? malls are -- >> in the last hour -- >> we moved to detroit malls are bracing for a last minute shopping rush, and

courtney reagan joins us. >> the small is opening in about an hour or so from now workers are just starting to come in, and by most accounts, it's already been a pretty strong holiday shopping season, but retailers get one final weekend. they get one more shot to get you to spend a little bit more money, and actually, the rep expects 126 million americans will be shopping this weekend. that's about a half of the country. believe it or not, though, that is lower than last year because shopping started earlier and shoppers finished earlier. that's according to most accounts you still have to check on the off your list. retailers have the buy in line pickup store options there's a lot of them. they say shoppers use them a lot more going into the final hours and days before christmas. for target you can order on-line

until 6:00 p.m. christmas eve, pick it up in store. they say half of the shoppers ordering on-line in the final days are choosing to pick it up in store macy's has 180,000 items in a typical store available for same day pickup, they also see shoppers using this option a little more as the hours get closer and closer. kohl's increased its on-line pickup options by 75% this year, and they say four in ten items bought on-line are bought inside of kohl's stores it's faster for a lot of shoppers across the country. first data also coming out with some new information about total transactions point of sale transactions from 1.3 million merchants show that holiday sales from november 1st to december 18th, so all the way up to monday, up 6.6% for the season that's about three times as strong as the entire season the first data saw last year so far so good with christmas falling on a monday, retailers do get a nice final shot to get the foot traffic in stores because you are really, really cutting it close for shipping even if you try to expedite it,

even if you try amazon just a warning be careful, guys back to you. >> courtney, thank you >> i forgot -- lsu >> see, there are all kinds. >> clemson clemson tigers clemson is number one. how could i forget clemson >> you know what, it isn't in the northeast. >> i'm an ivy league parent. you know, i think tigers i think -- i've been one for a week >> trying on this new -- >> >> i've been one for, like, a week milking this god. anyway, president trump just tweeting at some point and for the good of the country i predict we will start working with the democrats in a bipartisan fashion. infrastructure wob a perfect place to start after foolishly -- after having foolishly spent $7 trillion in the middle east. it's time to start rebuilding our country.

tweeted earlier about the tax plan that's tweet number two. we'll keep an eye out. making headlines facebook is scrapping its system of flagging fake news. the social media site initially put the word disputed next to what it deemed to be misleading information, but now facebook says stopping people from reading fake news is proving to be tougher than expected facebook will still use other tactics that it was testing, including fact checkers to determine the accuracy of articles reducing the distribution of fake news and sending alerts to people who have shared disputed stories. all right. let's get to our guest host, ed lee, managing editor at recode and cnbc contributor looked like you left for a second did you see -- >> yeah. >> did you see that? >> that's not ed ed is here he is here he is doing his -- holding up your end of the bargain. right off the start, ed, can we

make it objectively? can they do it objectively, fake news i don't want mark zuckerberg deciding for me what's fake and what's not i really don't >> he doesn't want to either facebook doesn't want to make any determinations >> how do you do it? >> >> here's the thing. there are these well respected news organizations that have existed for decades and decades. >> wait a second i know -- i know who you are talking about. there's a couple of them that i would definitely not say that they are immune to fake news i waufrpd ttched the last two ys >> people can not read them if they don't want to read them that's the key thing >> we're talking about not allowing you to read them. deciding what is real and what's not. in this divided age that we're in right now, i mean, let me ask you. 2017, great year or the worst year in history? which was it what's real news and what's fake taylor swift -- >> in ermz terms of what's reald what's fake? >> taylor swift got hammered because she said it was a great year market was up 35%.

we're growing at 3% a year >> it was a great year for a lot of people. not for everybody. some people it was a pretty terrible year. >> overall as a news organization, the characterization of it >> how would you do it >> i don't know. i don't know how you do it. >> i think facebook is getting away from the news he feed what was facebook originally just connecting with your friends and family it was a great way to do that. >> can you make money -- as much money that away i? >> as long as people are still there, says you can still sell them advertising right? that's the main thing. i think what facebook did -- here's the nuance muof the argument its not just saying this is real and this is fake what has happened in facebook is they've aesthetically sort of put these news organizations on the same plain a "new york times" article with

a crazy blogger, whatever, with conspiracy theories appears the same when it's being shared with you and you're not looking at that carefully, it just seems like news >> by the way, the reason it's there is because they are trying to get people what they want to engage with. that's why it's -- >> if people are reading this, they must like it or they must think it's valuable. not necessarily. they might be reading it to scrutinize and say, oh, this is not good or this is false information. using the alga rhythm is not a great way to gauge it. just because you're touching an article doesn't mean you like it i think facebook is starting to realize that they just want to get out of the news business altogether >> are you afraid of technology stocks next year i mean, what a roll they've been on >> they've been driving, you know, a lot of the indexes for the last few years, and i think they're going to continue to drive it no, i don't think you should be scared of it the thing to be scared -- >> big market caps >> the risk factor would be government saying, hey, guess what, guys, the way you have been doing it this is not right. he we're going to take a closer look and regulate this you know, i think that's their

biggest fear right now more than anything else. as a business in terms of their growth, i think they're feeling pretty good about it it's government regulation that they're worried about. which i think you, joe, would probably say is a bad idea, right? >> i was looking at -- no. i was looking at google. i was looking at google -- or alphabet and reading the way the "wall street journal" characterized the story, and they actually at the very end he is leaving he says he has deep political ties he has deep political ties, but his influence in washington was weakened significantly by the election of donald trump we know. >> so eric schmidt -- >> if you google deciding what was real and what wasn't for the last eight years, and now you have got -- the guy leaves the company because he is so out of favor right now. he was at the -- he was at the campaign event for hillary clinton and controlling google.

>> are you the chairman of google >> that's the problem. >> you would like that, wouldn't you? >> i think you would like it too. >> you have to leave your cnbc contributor salary might be okay for some stock >> all right we'll talk to you more thank you. when we come back, shopping malls have taken a hit thanks to the rise of e-commerce, but europe's leading commercial property company is making a big bet on brick and mortar. we will talk to the cfo after this break stay tuned you're watching "squk x" ghhe ocnbcawbo

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joining us right now with more on the deal and brick and mortar confidence in general is the chief financial officer for univail redamco. thank you for being here >> let's talk about this because here in the united states people have been in a panic mode about what's been happening with retail, but you look around, and

you see value and you see -- in fact, encouraging growth in some areas. let's talk about your view overall. >> the overall view is that those knee jerk reactions to what's been deemed the retail -- it's been way overdone the driver has been primarily the forms of department stores the department store is such that fashion this year has been bad, and that's been leading to a lot of articles about the death of retail. we think that's way overdone, and we are seeing actually pretty supportive evidence to show that there is actually life in retail. is it only certain areas, certain malls that you would be interested in? >> very much so. i think there is someone in the u.s., ceo of general growth who said that we're under demolished, and it's absolutely the case retail in the u.s. primarily has been done through the shopping

centers. there's lots of cheap money. the key survivors in all of this are going to be the destination shopping centers that offer people more than just a place to get stuff. stuff you get on-line. >> stuff you get on-line, which means what are you talking about malls that no longer have big department stores as anchor tenants, or are you talking about just malls that offer eating, shopping and -- >> it's the destination and the experience people want more than just a place to get stuff they want an experience, have a meal, go shopping, see a movie, hang out with friends. it's become the new marketplace, if will you. >> what you are buying with westfield, is this an area where you feel like you need to make a significant amount of investment, or you think the malls that you are getting here are already premiered? >> one of the things that actually led us to this transaction was westfield just like univeil aramco. we both independently decided

th that. >> if are you selective about the retailers that you put in your shopping centers, the and he retailer opened the store at every street corner, it makes it more appealing to the business as well. >> you said earlier that some retailers are doing well, and others haven't been doing well it's not sort of entirely all or nothing thing. what do retailers need to do now to kind of get people to come back in? is it a merchandizing thing, or are there other factors that thief missed >> there's something about the experience of the brand. why do people buy particular skill? it's about the brand it's about the value that's added. if you don't differentiate the in store experience -- this is why you see zaro's, h & m's, and amazon's opening flagship stores it's where the people interact it's actually being driven sometime back by steve jobs and opening the apple stores yet another example of a perfectly fine on-line, but the adoption of apple products has

been significantly enhanced by having the physical locations. >> are you -- is your appetite sated in terms of what you want to buy in the united states, or are there other properties that you look around and say i want that too >> i think we have to walk before we can run. we have to first close the transaction, execute and show that we can do this job, and then we'll take a look and see what else, if anything -- don't forget, you have a couple of great retail landlords here in the united states already. >> simon's >> simon's is a terrific one >> thank you for coming in we appreciate your time. >> apple is like an aenchor tenant >> it's fantastic. it drives foot traffic like you wouldn't believe you can see that in the west world trade center it's fantastic >> i go there simply for the apple -- >> you don't go there on sunday? >> no. it doesn't matter. on tuesday at 11:00 it's jammed. >> sunday is blue laws, right?

>> blue laws it's closed >> saturday. >> there's work to be done on that >> trust me. it's crazy, though, because it's like they do the blue law so there won't be traffic on sunday, but once you do the blue laws, there are -- no one is going anywhere because there's nowhere to go. santa claus is coming, and you can track his flight around the world. remember in "vacation" clark does that. we'll show you and talk to the agency whose job it is to watch the sky for threats and make sure he is okay and doesn't get intercepted. the fantasy father christmas we'll be right back. needing oth. then we are told it's braver to go it alone. ♪ that independence is the way to accomplish. ♪ but there is another way to live. ♪

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sfo hey, kids, i heard on the news that an airline pilot spotted santa's sleigh on its way in from new york >> you serious, clark? >> cousin eddie. god. i pulled that, and i'm going to -- we're going to watch it. we're going to watch the whole thing. cousin eddie is probably half of that so great, randy quaid. our next two guests we'll be tracking, i don't know why i'm laughing eddie was right. tracking santa's mission from the air. joining us now canadian army major andrew hinesi, u.s. air force captain lauryn hill both are spokes people for norad.

it's a great anecdote the way it started. it was -- since you have been doing this, a child -- i can't tell from reading about was it a little girl or a little boy that dialed the wrong number trying to reach santa and got norad ever since you've been tracking the real santa in his journey err since who knows about that major hennesy or captain hill? >> you are right we've been doing this for 60 years. 1955 the young boy here in colorado springs responding to a sears ad mistakenly dialled the number that put him into the operation center >> i thought it was simulated too until i read that you actually do have -- you get photographs of santa, and i

initially was a little cynical and said what the hell are you taking pictures of, but what are you taking photographs of? was randy quaid right? is this really happening every year i guess it is. >> right so we strategically placed -- we've strategically placed santa cams all around the world to catch santa just in those right moments so that you can see him traveling, and you can check december 24th all throughout the night. you can go on our website and call our number and we'll tell you where santa is >> we have a hard break. i wish we had more time. cousin eddie, we laugh at him, but they are taking pictures of the actual santa i want to thank you for what you do and thank you for your service and have a great merry christmas and happy new year thanks 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.

welcome back to "squawk box. a littany of breaking news today. let's start out with our november read on personal income up .3. a little shy of expectations spending, wow, is on the north side of expectations up .6. double the income rate now, we can think about the inherent issues with that, but

spending is a good thing personal spending now. if you look at the deflator, the deflate iter month-over-month up .2 that's .1 hotter than last look. .1 wider than we were expecting. on a year-over-year bays it's 1.5. on core it's 1.8 excuse me. excuse me. it's up .1 month-over-month on the core, and it's up 1.5 your-over-year you're expecting a number close to 2%. there's a preliminary number with lots of changes data collection period it is only up 1.3. we are expecting two last month down .4 that's half the down . 8 originally reported. transportation down .1 you can see transportation that had a big affect on the top line, and my favorite, goods orders and -- business spending. that's a key area, and that was

actually down .1 that's pretty depressing last time we were up .3, but here's the good news .3 now stands at up .8 the dow .1 is a disappointment we made up a lot of tenth on that upward revision if we look at shipments versus orders, it's up .3, and that's versus 1.3 last look it doesn't end there, folks. we still have new home sales we still have the final read on university of michigan sentiment. of course, i look up on the board. we're still three basis points hot on a ten-year note, based on what we said last year a condition we haven't experienced much since march and, of course, the dollar index is up .1 of a cent it is certainly not having a terrific year, you know, down about, what, 7% for the year that is causing a lot of debate. especially with regard to the direction our central bank policy versus the rest of the globe. becky, back to you >> yeah, rick. we talked about that a little bit earlier. why the dollar has had such a difficult year even though our central bank is raising rates

when everybody else is continuing to flood the market with liquidity you think that turns around in 2018 >> i personally do not i don't think it does. as a matter of fact, i think even if the economy shows more heat than expected, i am -- who doesn't want to agree with art that's probably less is more when it comes to the federal reserve, and i don't think that's a function of bad or good economy. i just don't think that the dollar is going to have a lot more impetus than it has this yea year,. it's kind of counter-frequency to the way central banks were worrying, you know, three years ago. the dollar is going to get too strong, and, yet, that strength has been more towards europe where they're dragging their feet >> rick, i love your holiday tie. merry christmas.

have a wonderful holiday i am off after today, so i'll see you in the new year, right >> happy new year to you, and the whole gang as well thank you so much. >> thank you, dear let's get over to jane welsh. she has a look at the impact much tax reform on the state of california jane, good morning >> hey, becky. you know, most californians do not itemize, and so the tax plan is probably going to be good for them th this. >> there are earners who do itemize, and this plan is probably going to be bad for them this could accelerate what i call california leafing or tax-afornia. more than 105,000 moved out than in according to the california association of realtors. three times the number for five years ago as home prices jump 9% in a year. the median price for a house in san francisco is $1.5 million. we have high sales tax we just got a huge jump in the

gas tax. that is it, says 61-year-old sandy fitch, retired executive who lives in long beach. she's had enough so has her 26-year-old michael, a market associate in l.a. where, they're planning a move next year to either texas or florida. >> living here was always midlife-long dream i love this state. i have seen it go downhill it just isn't the same as when i moved here back in the 1970s >> i could get a two-bedroom, one bed house in tampa for $120,000 my mortgage is less than my rent was in van nuys. >> no state income tax wait a minute. they're cutting the corporate tax. this should be great, right? all these tech companies here are going to invest and expand well, public policy expert joe hawkins says that's true, but not here >> if you take a look at where apple and google are growing, outside of the bay area, it's not in the rest of california. it's to boulder. it's to austin

it's to salt lake city all those places have become more attractive with the tax bill than california >> now, california's growth rate is outperforming the rest of the nation since the recession, but economic forecast says that growth premium is now narrowing, and, guys, they say it will becomable negligentable by 2019. lawmakers striking a last minute deal to avert a government shutdown. both the house and senate passing a spending measure that will keep the government funded until january 19th joining us now house budget committee ranking member congressman john yarmuth there were a couple of democrats that voted for this, didn't they, congressman? what happened there? did they check the wrong box off or or something >> i think a lot of democrats or at least a substantial number said that they didn't want to be accused of trying to shut the government down. of course, there are a lot of reasons to vote against the continued resolution than really take a position on whether you wanted to shut the government down

i don't think anybody did. there was some real flaws in this legislation, and like i did, i voted against it because i wanted to express my concern about the way it was done and some of the provisions in it you know, the really frustrating thing is that we passed a continuing resolution at the end of september, so we had three months to actually negotiate a reasonable funding measure for the rest of the year, and the republicans were so obsessed with passing their tax bill that they just ignored that possibility. we had a hodge podge at the end. >> do you think that -- is it wrong to think that you're laying in wait for the republicans in this next january 19th there's going to be a lot you asked for then it's sort of what minority leader schumer basically said. we're not going to do anything here, but you guys got a world of hurt coming in january. >> well, it's not just that we have a world of hurt coming.

there's some real crisis out there. the chip funding, which we extended for four months, is a band-aid approach, and, you know, that's no way to create security and stability in that important insurance market for kids the dreamers are out there the republicans have said, well, we have until march. well, in january 19th they will have a little over a month, and the fact is that dreamers are losing their status every day. 122 a day on average by that time, you know, you have really dramatically affected some of the dreamers' lives. they have to decide whether to go back to school. they have to decide whether they're going to be able to keep their jobs there's going to be a lot of pressure on everybody to do something about that >> congressman, if daca and border security can be linked together, will that work for democrats? are they absolutely opposed to securing borders no i don't understand

that seems like -- if you are going to run in 2018, got to run on higher taxes and open borders. i don't understand those seem to be the two most important things that the far left -- you are in kentucky. you must be -- i'm from cincinnati you must be looking around saying what's -- where did my party go, right? >> actually, i was on the gang of eight back in 2013 working on comprehensive immigration reform democrats absolutely believe in border security. what we're not for is a stupid waste of money in building a wall there are all sorts of ways you secure the border that don't involve the wall >> that's kind of a term for just securing, whether it's electronic or -- >> right we are totally open.

>> we want to talk about border security and if that's the way that the republicans will insist on to get -- we'll do it we're fine with that let's just get it done yeah, we're going to put a lot of pressure on between now and january 19th >> you're not in a position now, are you, congressman, of -- i mean, you want the economy to grow at 3% this next year. what if this works what will democrats do if there actually is a positive affect from cutting corporate taxes what -- how will they react to that nobody voted for it. >> you know, well, what i would say is what the republican plan depends on is sustained growth at that rate, right? we can have -- well, you won't know by next year whether you have sustained >> lucky for guys in 18. >> we might have a couple of

quarters you very well could, but -- >> there was a couple. >> we had a couple, but that doesn't mean you're going to have it over ten years >> so there's -- hope springs eternal that we won't. maybe you guys will be right we go back to 1% if everything goes right >> it's not whether we're right. it's virtually everybody from goldman sachs to cbo to everybody else >> let's hope. come on. for christmas let's get up to 3% or 4%. let's hope for that. >> that would solve -- >> let's all be on the same page here let's hope for 3% or 4%. >> 4% or 5% would solve so many problems >> exactly exactly. >> i might even reconsider my party affiliation. >> see i knew it. i knew i could get you i know kentucky. i know that area happy holidays merry christmas. >> same with you >> you are a frequent guest, and we love seeing you play along and everything thanks for putting up with me. >> you got it. merry christmas to you >> see you up next, a chance to learn almost anything from a pro six-time world chess champion garry kasparov is giving a master class

we'll have details after this.

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

our next guest views his next project as sharing inspiration, not information let's bring in garry former world chess champion and russian pro-democracy leader who is now a chess instructor with on-line education platform master class garry, thanks for being here what is master class, and how can somebody get lessons from you?

>> people want to learn from the pros, and while i understand that it's impossible to teach people to play chess in seven hours or so, i thought it would be a good opportunity to share my passion, my love, my enthusiasm for the game because at the end of the day today if you are engaged, if you like this game and if you want to learn, there are so many ways of doing it now with computers, with all the databases, and, first, you have to get this passion from a professional. i think i did it it was more like a dialogue between the professor and hopefully, you know, thousands and millions of students, and i believe more people will look at chess as the great pastime >> when did you first get your passion for chess? who introduced it to you >> nobody was there to twitter or report about it that was in winter night in the city in the deep south of the soviet union i was probably 5 1/2 it was the winter of 1968, 1969. i was lucky because i looked at

the chess board. at the board i didn't know it was chess my parents tried to solve chess problem, and i immediately got caught with that that was a match made in heaven. >> do you know kevin rogoff. >> of course, i do >> have you played him >> no. he left professional chess >> but he was pretty -- he was a grandmaster, yes he was a strong player, and i know him well, and he keeps telling me that it's very -- he is afraid actually to play the game of chess because, you know, it consumes him. >> i know that because, you know, he has guest hosted on this show for, like, two hours, and just out of the blue i asked him sense you have been sitting here have you thought of any chess moves in your head while we're talking? he didn't want to admit it, but he was he was over there sitting there thinking about chess moves >> because he was bored with our conversation, so he was jumping out. >> yeah. >> he was one of the top professional players in this country. >> you aren't thinking about chess right now, are you

have you thought about any moves now? >> why should i? my best response to your questions. >> let's talk the world right now because -- >> you are talking about geopolitical chess board >> yes, yes. i thought about how the question is asked, and we don't have enough time to get into a deep discussion because i know you are worried about the attack on some democratic institutions in the united states. >> yes >> i was going to tell you that i'm more worried about -- i'm still more worried -- i'm a worry wart, but i'm worried about external things a lot more than internal that this democracy has survived for 240 years. i think it's going to survive donald trump i don't think he is going to be the putin of the united states >> it will survive because it's the -- these -- >> you are worried about it. it's a democratic party strong enough from the virus of trump i'm sure eventually -- >> but you were worried about press freedom, about fbi >> because i saw the patterns. if you see the leader of the

country attacking not individuals, but institutions like free press, law enforcement, our political system in general, i mean, remember my background >> that is your background your background -- >> right away i know what is kgb. >> i know. >> to me that tells me that -- >> two days ago the current head of fsb -- just said that it was nothing to be ashamed of >> but if i had your background, i would be worried too we're all colored by auerbaour background there's been attacks >> it's my experience. >> and attempts on your life >> you take everything for granted. >> that's somewhat true. >> it has to be reviewed with every generation >> you know, there's not a former soviet kgb agent behind every tree here. there might be one over in russia >> kgb is always kgb i call it vladimir putin that's why once kgb, always kgb, and they are not hiding their

intentions >> if i grew up in the former soviet union, i would be scared to death of the talk of an ou t autocratic ruler and of government in general. >> that's why i live in new york >> i think we have ae better system here than you had over there. >> you have the best system. the problem is that, you know, they know we have the best system, and they do absolutely everything in their power to undermine this best system unfortunately, now they are -- i won't say they're succeeding, but they have found some cracks in the system. >> my first move is pawn to king four what are you going to do >> i have many options, but i don't think it would make sense. >> how many moves -- >> pawn to king four you got an answer to that? >> pawn to king five >> how many moves would it take you to beat him? >> i don't think it would take long >> how many licks to the center of a tootsie roll. >> you cannot do that. >> after i try to -- >> if trump stays in office too

long -- >> thank you for being here. happy holidays >> when we return, it was a tasty year for the fast food industry chockfull of value wars and a few takeovers. what's ahead for 2018? a year ahead playbook is next. a year ahead playbook is next. here the inland futures blan -- ho i think we're getting close! make a u-turn... u-turn? recalculating... man, we are never gonna breed. just give it a second. you will arrive in 92 days. >> king five you know who i'm go? my instincts. as long as gps can still get you lost, you can count on geico saving folks money. i'm breeding, man. fifteen minutes could save you fifteen percent or more on car insurance. right in the heart of the was in his 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.

as we count down to 2018, cnbc is rolling out sector plaubooks and we're focusing on the restaurant industry. kate rogers has a look at what to watch >> reporter: 2017 was a big year for acquisitions and fastfood and even faster ordering 2018 continue this pattern here's what to watch in the year ahead private equity had a big appetite for acquiring restaurants with nearly 20 deals this year including rork capital's buying of buffalo wild wings, expect nor buying in the new year second, price wars and promotion will dominate. mcdonald's and taco bell have already started promoting deeper values for the new year.

expect price wars to continue even steeper for consumer's wallets. >> mobile gets even hotter, getting food quickly and easily has never been more important. fast food names like mcdonald's have seen major growths. starbucks and duncan doughnuts and more are gearing up for expansion of roemobile orderingn rewards and delivery options in 2018 we saw yet another deal this week with jack in the box. apollo global management for $305 million analysts say more of the deelsz are heading in 2013. sometimes more of the smaller restaurants are really looking appetizing sorry for the pun. they can get them as they are moving into their second and third markets. we saw a deal earlier in the season with tpg buying mendocino farms. we may see more of that in 2018 as well.

>> i have a question, casual dining really took a hit this year what can be done to turn the sector around? will this trend continue in 2018 >> you're a pro. >> who wrote these did you do this? >> we were told to write questions. >> by whom. >> who's that? >> i'm not ever going to do that on the air >> obviously for people who don't have faith in our ability -- >> no kidding. >> while he's busy thinking about -- >> you know what i was thinking about, when you mentioned fast food i think about individual places i'd like to have -- >> i thought taco bell i thought arby's and thought about when you said jack in the box. i thought about the stuff i used to get, tacos, are you going to answer that question >> i can't even think right now. casual is in big trouble fast food was amazing this year. >> the question is in the

prompter if they can't trust me -- >> going after these deals, actual con solid dags happening across. >> there could be consolidation because we've seen a ton of pe buying that sfpeaks to what we can see -- >> he's not even up, it's fine >> you pass with flying colors. >> what brexit mea fnsor passports, we'll bring you that story next ♪ ♪ ♪ what we do every night is like something out of a strange dream.

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ed cannot believe -- >> yeah, you are, you should watch red every day. but meanwhile, christmas is monday and he's like -- did you court me your red -- >> no, but it's christmas. what are you wearing >> i don't have a red tie at home. >> blue is a color for the season. >> give me something >> all right blue state guy anyway, welcome back we are deep blue, we are in the chairs that one side effect of brexit, the color of british passports no more printed in burgundy after brexit. they revert back to 1920s era

blue i actually saw that he's glad they are doing that. redesigning passport and will have updated super strength carbonate material ed, thanks for being here today. >> it's always fun >> i took the jacket off like i did. >> you've got to do that. >> did you know we were going to in chairs? >> i didn't know about this. >> you look pretty good in them jeans. jeans, yes, you know -- >> happy holidays. merry christmas and happy new year >> good friday morning, welcome to "squawk on the street." mike santoli at the new york stock exchange cramer i