♪ good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. look at the u.s. equity futures at this hour, you will see that things are in the green. dow futures up by 90 and nasdaq up by 32 last week we saw all the major indexes down for the week. for the dow, it had been four weeks in a row of winning streaks and s&p six weeks in a row and nasdaq just ended a seven-week winning streak. the month of november, still looking at pretty decent size gans the best we have seen since the month of june. treasury market, you'll see that at least at this point it looks like the ten year is yielding 1.789% still below 1.8%. a big deal the largest

luxury goods company said it reached a company to buy tiffany. the price tag $135 per share in cash, $16.2 billion total. largest ever in the luxury sector the boards of both companies approving that deal yesterday afternoon and the transaction expected to close the middle of next year. it will mark the end of tiffany's 182-year history as a stand alone brand. the little blue box isn't changing but does reflect the changes to remain independent amid increasing consolidation across retail and adding tiffany's -- adding tiffany to the portfolio will strengthen lvmh's position in atches, jewelry the group acquired bulgaria back in 2011. >> lvmht how much would that cost to figure that out to add a t i think they should add a t. >> you think it's that

important, that valuablvaluable this 135 price tag came up from $120 when they first went after them the question i think we threw out whether they get 130 bucks, could they get 140 they didn't push back. go look at tiffany's stock two or three years ago where it was relative to where it is today. >> we bought stuff there for baby gifts like a little spoon. >> oh, ye. >> in general, i don't know, it's like super retail i think chinese people love in china it's big in chinese tourists come here is big. just me personally, and you go to 47th street i'm sure don't you? i would rather go down there. >> to haggle >> well, just where you don't pay absolute top dollar for stuff that everybody else has. >> we should also bring you -- >> charles schwab corporation is going to be acquiring td

ameritrade this is a story we first reported last week steven boil is the interim president and ceo. they're suspending their ceo search because this will be taken care of with this deal charles schwab will issue 1.0837 trades for every ameritrade out there. toronto dominion bank will hold 13% of a stake in the combined company. you can see right now charles schwab shares which ran up last week on this news are right now down by 22 cents to 47.98. maintaining the gains they had seen last week on this when it was first announced. td ameritrade shares indicated by 2.3% the gain of a 1.13 to 49.26 after they saw big gains last week as well. charles schwab says they see this deal 25% to the adjusted earnings per share in the third year of this deal. >> it's going to be called just

schwab >> lose the branding >> analysts looks at this and said because they have very strong trading platforms you won't see much of the accretion in terms of that keep the charles schwab and td ameritrade trading platforms operating because they don't overlap. there are some things that td ameritrade has for options for insurance is stronger. charles schwab has a lot of things like people who will talk to you and guide you through some of these things because of that, they'll probably see some analysts expecting 40% of the accretion can combine and put these together. >> both platforms need to advertise separately on "squawk box." >> that is expected where you'll see some of the -- >> no, no, no. they have to double down on both platforms. >> breakup fees? >> i don't know. i have not seen that. >> to me the two issues that

will be interesting breakup fee -- >> because you think -- >> trust issue not so much on the consumer side but potentially for all of the investment advisers out there, its really -- i think collectively they have like 60, 70% of the business. >> business networks serious antics. >> they're one and three >> there may be a look at that you care about that issue. the other issue would be about deposits that used to stay at td bank td ameritrade used to run all deposits into toronto dominion that was a huge fee generator for td bank and so if you take those out, i assume schwab will want to keep those deposits into their bank what that does to td long-term i don't think. we'll look >> merger monday >> great deal. >> merge enmonday. also, this is shifting gears, hong kong, the hang seng

index jumping over newt gingrich this is in the city's district council elections. emily tan joins us live from hong kong. emily, good morning. >> good morning to you guys. and this was a big deal at the weekend. we had a landslide victory for the pen democrats. a major win with opposition securing 17 out of 18 district councils this was a completely controlled by the pro-establishment camp, now completely swinging over to the other side and with a big win for the pan democrats. it was a record high turnout of 70.2%. we got close to 3 million people heading to the polls and voting. and that's out of a population of about 7.5 million people. 452 seats being contested across 18 districts and this is the first time that all 18 seats were contested hong kong's chief executive carrie lam in response issued a

statement on the back of the results saying that voters were keen to express their views through election the election was held in a difficult environment, but carried out in a peaceful and orderly manner she said she's going to be respecting the election results and the government will humbly listen to citizen's opinions and seriously reflect on it. on the back of this, hong kong has enjoyed a couple days of peace. we are 25 weeks in into protests here in this past weekend was the first one where it was actually a bit calmer. so the question now remains is this the start of something new where we can have calm return to hong kong? you're looking a the markts and the hang sang index very big spike-up a big cheer on the back of the election results nice rally of 400 points up 1.5% back to you guys. >> emily, thank you very much. joining us right now to talk about the elections and the political unrest in hong kong is robert hormat, the former

undersecretary of state for economic growth. and bob, thanks for being here great to see you. >> great to be here. >> what does this mean >> it means that it's pretty clear that hong kong, the people of hong kong and the way they voted have very strong view of what they want, which is a higher level of participation in the governmental process. >> how does beijing respond? >> well, that's really the interesting question so far i was in china last week for a whole week they have tended to be, i think, very restrained in the way they have dealt with this and i think what they're doing is letting carrie lam and the government of hong kong dieal with the problem they're really letting her carry the ball. >> okay. that may be the case, but -- >> for the moment certainly. >> what happens next they want less of a hand holding from beijing, less oversight is beijing going to say okay or

ask it worried what happens next in taiwan and beyond >> they're looking at a lot of thing. what are the implications for taiwan and implications for the overall economic environment in the region they're certainly looking at the importance of hong kong's markets for china and for the rest of the region, particularly for china. it's a big link, as you know and i suspect what they're trying to do is anticipate that they'll be more pressure but that the pressure will be able to be contained. that is the judgment that i come to and i don't know what their next step will be, but the general view is let this work itself out in hong kong context. >> it hasn't done that to this point. it was calm this past weekend, but that may have been because of the elections you think it calms down from here or do we go back to watching protesters >> i don't know. a, they don't want to intervene is the general mood and, b, over

a period of time not in a perfect way but over a period of time the hong kong authorities will be able to work with this and deal with it without intervention from mainland china. >> it's been half a year. >> i know. the chinese are very patient and very pragmatic i think that if you look at the alternative to letting itself work itself out internally in hong kong and intervening, they certainly would go for the former of the two. and hope it works and hope that she has enough ability to work with the people in hong kong who want more opportunities and more participation to be able to do that it's not an easy calculus to make, but it's the one i think they made. >> it's going to be heightened by any sense of what happens with the trade talks and whether violence picks up again if the americans actually comment on it. how do you think that plays out? >> well, i think so far the trade talks and the developments

in hong kong has been kept largely separate there's not been -- except president made a couple comments yesterday, but generally when you talk to people in washington who are doing trade, they're doing trade. when you talk to people in hong kong and talk to people in taiwan, the general view -- pardon me, in beijing, they general -- >> that may be how everyone wants that to play out, but if the violence escalates from here, it's going to be very difficult to keep it separate and outside. >> i think that's -- i think that is a great dilemma. there are no easy answers here i do think the best i can tell you is that the things i hear and the people who are involved in beijing and washington have a view, let's try to keep this separate and move ahead with the trade talks on their own terms and not have them spill over into hong kong or hong kong spill over. >> did you get any sense being there that phase 1 is actually going to happen? the conventional wisdom is that

we will get there, but even last week we got this real sense that maybe we won't >> andrew, this is really one of the things that's been most disturbing about this is the on again, off again nature and things that go on and said to the press in washington and b beiji beijing, particularly in washington, are things that can change the very next day it's head spinning to hear this. i've given up trying to make predictions on the basis of what i hear in the public press because the people who are actually directly involved in this. >> right what are they telling you? >> they're saying nothing. and i talked to lighthizer a lot and much to his credit in my judgment they are not saying they are not giving out signals right and left a, they know that things can change, their leaders can change and, b, it's very jolting to markets. i do think what we have seen in

beijing recently on intellectual property is a plus for one major reason one of the things we want. but the other reason is there are a lot of chinese who have intellectual property, too they want their intellectual property protected as well that really is an area where it's a possible benefit for both sides and it's something that the president indicated he wants language on in the trade negotiations and the trade outcome. >> bob, thank you. good to see you. >> thanks. good to be here. coming up next on this merger monday, we'll talk about the 9.7 billion pharma deal for cholesterol drugs. the ceo will join us next. plus, uber shares tumbling after london's regulator refused cee.'lnt it an operating lins wel take you live to london in about ten minutes. ♪

>> novartis betting on a drug to treat health disease acquiring medicine company for $9.7 billion

our next guest has a partnership with the medicine's company. he joins us now to talk about the deal and drug pricing. john, ceo pharmaceutical, tell us your relationship in this whole deal it was your drug that was developed that the medicines company license that is really behind this whole deal, john >> that's right, joe we were the inventor of th drug we're a company that develops interference technology. that's what this drug is based on and we license the drug to the medicines company, been working collaboratively with the medicine's company through the phase 3 trials and obviously we're really pleased that we will not be partnering with novartis who will then take on the commercialization of this product and we're very tied into what's going on with the medicine because we own a significant stake up to 20% of this drug. >> you own 20% of the drug what does that mean for -- let's say it gets finally gets

approval and what do you expect eventually the run rate to be globally and what would that mean >> analysts are projecting this medicine to have multibillion dollar potential and obviously will get 20% of that top line or up to 20% of that top line depending on how the sales. >> you already did what you had to do. >> we innovated it we helped get it to the hands of medicine's company they've taken a true clinical trials and now novartis is the commercializing party. >> what's so good about that one? there are -- this lowers ldlc. we understand that and it can stay lowered. it's only administered i guess twice a year is it more efy cay shous -- are there other small molecule rna drugs on the market now or in development? >> there aren't any rna interference drugs for ldl

cholesterol on the market. this will be the first but very importantly this is a twice a year therapy for the treatment which is a major disease with millions of americans, millions of people around the world affected. >> it's expensive. now, how is it differ -- the pcs k-9 drugs already out there. they lower ldlc with a different mechanism? >> yeah. those are antibiotics given twice a month. so the burden is quite high for the patients that have to take them this is the drug that is now going to be commercialized by novartis is given twice a year which is really a transformative difference. >> is it a keeper? >> i think it's too stoon say. obviously these are medicines that are not cheap medicines, but obviously novartis think about the right way to advance this commercially. >> john, let me ask you, rna

interference, obviously it's a new technology and there are a lot of potential uses for it do you have a platform that this could roll out for other medicines, other diseases, other illnesses? >> yeah, we do we have been pioneering this space. we just had our second drug approved last week we also have another drug that was approved last year for another rare disease so, this is a whole platform and it's a whole new way of treating disease and we're really excited about now the potential. we have yet another drug that will have a phase 3 data read out next month it's an exciting time for this technology. >> remember that troied to block rna. that's different >> we're harnessing a natural

pathway in all cells that's really the core difference and the potency of this approach is fundamentally different than other pathways so this is really the future and we've been really happy to be part of it. >> there's one drug that novartis has across $2.1 million a year for a very small population this could be as high as half a million dollars a year, right? >> oh, i don't think so, joe this is for a much more prevalent disease. and it's going to be obviously -- the pricing will be consistent with the value delivered, but it's also going to reflect the prevalence of the disease. >> we know for sure that lowering ldl is the pathway to stopping at least all certain kinds? this works better than stattens or in combination of stattens. >> it works far more potently

than statins >> if you can take ldl cholesterol all the way down, you know, you can essentially remove a substantial amount of risk for heart disease that's what's so exciting about this if we can have two injections a year to take cardiovascular mortality off of our tombstone, that's an amazing accomplishment. >> my quota of injections per year is zero two would not be bad in the arm or somewhere else, john >> in the arm or in the abdomen, either way. >> in the abdomen? >> can be. >> that would be the butt, bob >> the abdomen seems very -- >> that would be the worst for me. >> good luck thank you. >> you can give yourself shots. >> thank you >> i've done it. >> i would get them in the -- >> shots in the abdomen. >> should try where i get them

in the forehead. >> does it look where i get them in the forehead? >> thank you coming up, when we return, a major setback for uber in the uk the stocks tumbling this morning just in the last hour down 5.5%. we'll explain what is happening and what happens next. then later, it's happening michael bloomberg jumping into the presidential race earlier than expected. we wiltel ll you how he is shaking up the field when we return orlando isn't just the theme park capital of the world,

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welcome back to "squawk box. news just breaking this morning. a big setback for uber, sharing are tumbling as we speak after london's transport regulator said the company is not fit and proper to hold a private hire operator license in london willem marx joins thus morning from london. this has happened before, willem, but is this a different situation this morning >> reporter: you're right, andrew back in 2017 they stripped the license. they said that uber at the time was not fit and proper that was because of concerns around background checks for drivers as well as the fact they hadn't been reporting criminal offenses committed by drivers a judge last year said that uber would have a little more time after they made some changes they had a 15-month probationary period that ended today and now we heard from the london regulator, transport for london, they are once again refusing to renew the license for uber they mentioned not fit and proper to operate things and also putting passenger safety

and security at risk this time it's focussed on a vulnerability in the app that allowed uninsured, unlicensed, unauthorized drivers to up load their photos to existing driver's profiles, 14,000 trips across london this happened. that is what they said put passengers at risk uber saying they felt the decision was extraordinary and wrong. they said they'll appeal the last two months they said we audited every driver in london, further strengthening our processes. we have robust systems and checks in place to confirm driver identity. they have 21 days to appeal. in the meantime, 3.5 million people in london use the company and the 45,000 drivers that operate the cars here, they have that 21-day period to continue operating, guys. >> so this is now -- now there's a bitof a race for the next 21 days, is that the idea >> and we saw that last time absolutely so the company will do their best to try to appeal against this process, try to get this

ruling overturned. the ruling they said is extraordinary and wrong. >> but this time feel different given they have now gone through this process before? >> yeah. if you listen to the language of the regulator's statement and the comments from sadiq khan the mayor here, they said going forward they don't think this company is right for london. they put passenger safety as a top priority and they seemingly are incredibly angry these issues haven't been resolved. >> willem, how does this relate to the other ride hailing services still operating in london >> we have seen a lot of competitors jump in the last year or two. uber spending a huge amount of money on advertising billboards all around the city focussed on uber pool, the ride sharing. of course, if you look at the pricing forsome of their competitors, it's not quite at the level of uber. they'll see this as an absolute bonanza opportunity to increase their market share. >> this is uber specifically they don't like uber the

company. it's not like they don't like ride sharing. >> uber specifically they're allowing unauthorized drivers to pick up and up load their photos they said it was like 14,000 rides that took place that was uninsured as a result and in some cases it was people who had their licenses suspended or revoked. it's a problem. >> there's a history of beef here, guys there's a history, a back story. you have that concept of gray bull they were not open to releasing information about how their system worked. there seems to be some really lack of trust when it comes to the regulator here in london the transport for london and the company's executives. >> okay, vwillem marx, great to see you, sir thank you. >> will other regulators take a look at this if this is accurate and this is what's happening other places, what's going on?

when we come back, some good news and bad news for holiday travelers. first the bad news, it is expected to be the second busiest thanksgiving for travel volume ever. the good news, at least gas prices are down. we have the details on that next plus, more details on the brokerage deal that just crossed the wires. charles schwab acquiring td ameritrade we'll be right back. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from finding out what's selling best... to managing your fleet... to collaborating remotely with your teams. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence.

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♪ good morning, everybody. welcome back u.s. equity futures on this monday morning are indicated higher right now dow futures up by 78 points s&p futures up by close to 9 the nasdaq up by 28. charles schwab announced a deal to buy td ameritrade it's an all-stock deal worth about $26 billion.

as you recall, we had reported last week the two sides were in takeover talks looks like right now td ameritrade shares are up by 1.25%. you have to look at the gains and stock last week when it was first reported charles schwab down by 21 cents. this stock was up significantly because analysts look at this and say there's a lot that could make sense in a deal like this we'll talk more about it with analysts later this morning about what it would mean, the cost they may be able to consolidate and the places they would not be doing that. both these stocks -- td ameritrade is up by 1.25%. charles schwab down by less than .5%. gas prices down according to the lumberg survey the drop is likely due to increase in supply now that several refinery repair projects have been completed. also, a word of warning, aaa saying wednesday is the worst day of this holiday week to travel with trips taking as much as four times longer, four times.

40% longer due to congestion we'll get a holiday travel update for those of you who are flying, including the impact of the ground boeing 737 max. >> and some weather issues, too. could make it more difficult wednesday. >> out on the east coast >> it's starting in colorado and coming across. >> the mini van. >> yes, sir. what about it? >> is there a hybrid model >> they make hybrid models. >> that will make it cool. >> i'm just wondering why have a new tesla truck? why aren't you just springing for something electric >> because you need a mini van if you have a bunch of kids. >> there's no electric mini vans >> they're not cheap any ways. mini vans cost 50 grand. >> so unlike -- like so many of you that don't walk the walk when you talk about all this

stuff the vacuum cleaner and the mini van is more important whether it's echo friendly. >> you buy a mini van, it's a safety issue it's a safety issue. >> i want to vacuum cleaner, too. >> why >> because the kids have pretzels and unfortunately we have -- people have snacks they get into the seat. >> is there a car wash in the city >> there are some car washes in the city but to be honest with you, i often go to queens for a car wash. >> have you ever washed a car when you were younger? >> yes in fact more recently. ♪ livongo's mission is to empower people with chronic conditions

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welcome back to "squawk box. it is now official michael bloomberg jumping into the democratic race for president. announcing his candidacy yesterday in a written statement on a campaign website and a tweet that said he is running to defeat donald trump and rebuild america. that's his slogan, rebuild america. bloomberg plans to launch a massive ad campaign in key primary states, something on the order of $35 million joining us to get us up to speed on some of the biggest talkers on the morning, john litman and cnbc contributor ed lee, new york times media reporter and former employee of michael

bloomberg himself. >> worked with mike himself. >> back in the day, right? >> used to call me -- >> when you were -- >> when i was working at bloomberg, he would occasionally call and. >> tell you what >> well, some of those things are a bit of a trade secret. he's an incredibly charming boss. >> interestingly by the way -- i want to get right to the election one of the things that bloomberg the company announced yesterday is that they will not be covering -- they'll cover him but they won't be doing any real investigative -- >> or any of the other candidates in the field. they said they would still continue to cover the president. they would do investigations into the president but not a direct -- >> he's not a direct competitor. >> it is a distinction without a difference to say you're going to not cover the democratic candidates but you will cover the president. they're all rivals right?

and yeah i did not -- >> a big part of bloomberg's appeal or the way he set up his appeal, i'm an actual businessman who work the end times as much. >> what do you think his real chances are? there are a bunch of viewers who worked with the company, admire him and yet there's a whole view and others who don't admire him and then there's a view that that crowd, if you will, maybe it's a crowd that watches our show, is out of touch with the rest of america. >> it's a niche group. he's got a lot of flanks to protect. he's got -- the way i looked at it was he's got i don't know how many of the 63 million deplorables do his way, then take hillary's group that would be fractured. does he get half some of hillary's voters are elizabeth warren supporters probably so he's got a lot of flanks. right the middle he's got elitist new york types that think he's a great mayor, but i

can't imagine a billionaire is the answer to a democratic search. >> i think the really interesting question here is whether he could some how capture the younger voters if you look at his philanthropic activities since leaving office in particular, it's all of the hot button for younger voters. it's climate change. it's guns. it's women's reproductive health so he's kind of hitting every single hot button topic for younger voters. >> he's been doing that for years. it's not something he got on the band wagon. >> what do you make of skipping some of the early primaries? >> it's bizarre to me. i'm curious to see where -- he has great advisers and he's certainly not a -- >> he has a lot of money. >> but he also would not do well in those early states. so it sort of makes sense to

say, okay, let's skip them. >> is he going to do well in texas? >> is there enough money to spend in the early states or in texas where mike bloomberg becomes a favorite is there enough? >> well, he has all of the money that he -- >> i don't know if it's about how much money you spend as it is can he get enough crossover appeal that you feel that -- >> but the democrats want is somebody who can beat donald trump. >> would a.o.c. in your wildest dreams ever warm up to mike bloomberg? >> she hasn't supported elizabeth warren either. >> i think best chance -- >> i think democratic national convention -- >> bigger political -- >> yeah. >> bloomberg is a very practical person ultimately. i think his entering the race at this stage with all of his money i think he presents a formidable force at the same time i

wouldn't be surprised if ultimately what he's trying to do is negotiate a platform for the dems remember, he's running within the democratic party not as an independent and certainly not as a republican. but if he wanted to he could do that he's in it to negotiate whatever he can to either adjust -- >> wall street likes him >> of all the democrats out there, generally wall street likes him. >> and he's a billionaire. >> and we're in an elitist moment, yes, that is a problem but on the other hand, what he's doing here is an interesting strategy, right? he's essentially a third party candidate except he's doing it within the democratic party. >> forces the democrats to come more towards the center. >> he will shift and negotiate because he'll still have that money even if he loses the democratic primaries. >> how do you lose the democratic main flank take money out of influencing our government and billionaires will finally pay their fair share. >> surprising.

>> it will end badly for him i do like him. i see him on the golf course. >> you think it will end badly for him? >> i think it will end badly for him. >> i think he's prepared for that if he loses that, he will use that to his advantage in terms of influencing the democratic platform. >> you could spend all that money to influence the flank i think he wants to be president. >> he's very confident and very accomplished in the ad they showed yesterday, he's not talking that was very interesting. >> but you know something i found really -- what made me think about this was as those of us in the media have all sort of intersected with him and we've seen this sort of change he's very for lack of a better word adaptable, right? before he ran for mayor he was sort of a tough talking, really kind of sexist language kind of guy, cow snapping. when he became mayor, he suddenly was able in his public speeches to have a sense of

humor, self deprecating. >> huge issue. >> especially if you want the younger voters. >> and the black voters. he had stop and frisk which he apologized but he has not come out and apologized for his comments about women. >> thank you for this conversation. >> any time. >> appreciate you. when we come back, the winners and losers of holiday airline travel plus, how the 737 max will be impacting the airlines and the travelers. but first the nuz just crossing from general electric the company naming a new cfo she joins g.e. from app myers. they previously awe nounsed jamie would be leaving the position after a handover. sit tight. yep, sit real tight, speedy. cause you've got to call it in, police officer: radio to dispatch... type it up, hey, dispa... (feedback ringing) deal with that, dispatch. write it up, walk it back, police officer: slow down out there. and call hq-again. (sigh)

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the holiday travel season is here and americans are planning to fly in near record numbers. complicating things this year, the glourounding of the boeing 7 max. hey, phil. >> reporter: becky, it will mean the planes will be as packed as ever because it's tighter capacity out there you mentioned that we're expecting record levels of people traveling it depends who you measure this through. airlines for america expect 31 million people to be traveling that's an extended holiday period they compare that to last year, they say it's up 3.7%. as we mentioned, without the 737 max you are looking at planes and airports, they don't have as many planes flying, as many people you'll see much tighter capacity overall they're limiting the people on the planes

the airlines, southwest, american, united, they've already said how many flights they're canceling. hundreds of flights if you look back at all of 2019. for the airline industry overall what you're looking at is better profit margins, which is one reason why you've seen this airline index improve over the last three months. the profit margins have been improving in the second half of the year as you take a look at shares of boeing, they are expecting the 737 max to be certified by the faa this month or not this month, next month. december let's see if that actually happens. they've got a number of steps that they need to clear, guys, before they actually see this plane certified in terms of commercial service, when people are on it, that's not going to happen until february -- late february, early march here in the united states. >> phil, thank you very much joining us right now for more on how boeing could impact the holiday travel this year is stef kaplan principal of kaplan research

this is an impact. they've been given a lot of time to figure this out what do you think it's going to mean for travelers on the plane? >> with each month that goes by the impact is less chaotic but greater in the aggregate the airlines you mentioned, united, american, southwest, it's now alaska airlines, too. the total impact is not just the maxes grounded back in march, it's all the maxes supposed to be flying right now, which is about twice as many in the world as it would have been. as phil said, more seats than ever because there aren't quite as many seats as there would have been otherwise that does squeeze up ticket prices that defines economics as i can tell you not just looking at aggregate data flying down to florida, it's gotten really expensive we won't know until we have backward looking data for this quarter. likely a record breaking season profit wise for airlines as well as in terms of those volumes. >> which airlines in particular

do you think stands to benefit i guess that would be the airlines that don't have 737 maxes or never had them on their books or never going to be flying them, but they are now the beneficiary of higher prices >> exactly so everybody has the capacity constraints whether you're american or delta, you know, there just aren't as many seats in america as there would have otherwise been you get the unit revenue benefit for that the difference being american has the nightmare of dealing with the max whereas delta does not. jetblue would be the largest other airline really, you've got the big four, american, united, delta, southwest only delta unaffected. alaska and jetblue jetblue unaffected by the max issues >> ticket prices, will they come down in the spring when the 737 max, if it is brought back into service as expected? >> always a moving target because obviously you have so much else going on, but, yeah,

you know, once the max comes back into service, ticket prices we can say at least will be lower than they would otherwise have been. ticket prices, let's be clear, are still even in historical terms, they're near all-time lows adjusted for inflation. undoubtedly higher than if the max were in service. that will flip once the max comes back into service. >> thank you for seeing us deals breaking in retail, pharmaceutical and the online brokerage industry uber shares are down big in early trading avlon done revoked the license. you're watching "squawk box" on cnbc

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the rally returns. stock futures pointing to strong gains after stock snapped a six-week winning streak. it's the merger monday charles schwab making it official and buying t.d. ameritrade the details straight ahead of the tiffany purchase. bloomberg straight ahead where he stands on the issues that affect your money the second hour of "squawk box" begins right now.

good morning welcome to "squawk box" right here on cnbc i'm andrew ross sorkin along with becky quick and joe kernen. take a look at u.s. equity futures at this hour we'll call it on a merger monday no less. so many things taking place. dow up 88 points higher. s&p up a little over 9 points and the nasdaq up about 31 points. >> as andrew mentioned, a lot of deals out today. let's check out the big three deals. lvmh will be acquiring tiffany in a $16.2 billion all cash deal that deal is worth $135 a share. the companies expect to complete the deal by mid 2020 you can see tiffany shares up

this morning by 20%. lvmh up by 1.7%. this had been out there for a while but the actual deal done today. charles schwab is buying rival brokerage t.d. ameritrade. it's valued at $26 million both of the shares down. charles schwab down by 4.4%. t.d. ameritrade down by half a percentage point this deal was a deal we first reported last week that the two sides were in to being and at that point both stocks were up swiss drug maker novardis is buying the medicines co the stock is up by 22% novartis up by .4. developments where a pro democracy candidate planted what's called a stunning election victory bill neely joins us with more.

hello, bill. >> reporter: yes, good morning, joe. this was a landslide for the pro democracy candidates they won nearly 90% of the seats here in hong kong. they now control 17 out of 18 consuls. four were controlled by the pro government, pro beijing party. this was an absolute wipeout the pro democracy candidates had run basically on the platform of the five demands of the protesters so the message is from millions of people here in hong kong, we support the protestors we reject how the government has handled the protests in the last 5 months and with a turnout of 71%, hong kong is saying we want a say in how we are governed a stunning result. the big question is how will

beijing react? and picked beijing chief executive here, carrie lam said, well, i will listen humbly to what has been said by the people, the chinese foreign minister says nothing will change the fact that hong kong is part of china so those seem to be, well, humble but uncompromising responses. and beijing has a dye lem ma does it respond? does it give in? does it give concessions will a protest continue? because once the protestors have gotten over the our for yeah of this victory, they really do have a dye lem ma. do they continue the violence we've seen since august or do they try to negotiate and does beijing concede to them? so i think the election is over but the crisis here and the protests certainly not, guys >> okay. thank you for that report. appreciate it very, very much. meantime, for more on u.s./china

trade tensions, i want to welcome robert spaulding, senior fellow from the hudson institute. good morning to you. i'll tell you what's taking place in hong kong over the weekend. more important, how this plays into the larger trade negotiations and the talks in the world that the united states plays and doesn't play in the hong kong piece of it. as you see it, given some of the reports last week that phase 1 may not be as close as we thought, how does this play into that >> well, i think when you add in the leak of the shin jung papers and the story in "the new york times" and of course the defection of the spy in australia coupled with almost 3 million people coming out and voting in hong kong supporting the protestors and i think you go back to the u.k. tribunal on the forced organ harvesting of prisoners of conscience, you see all of this pressurizing on the

chinese communist party. so i think it's going to make the trade talks all that much more difficult because it's going to put pressure on the u.s. congress to pass a hong kong human rights and democracy act. >> so to the extent that we're still looking at this december 15th deadline, how do you handicap what takes place? >> oh, i think -- i think the tariffs are going to go up because i don't think the chinese communist party is ready to deal. and so the -- we have backed off on the tariffs a number of times and i don't think the president's going to do it again because he's trying to get the chinese communist party to come to the table hopefully the raise in december will actually get them on board but quite frankly they have determined not to deal and if you go to the fourth plenum that they just came out of, they basically said they're going to take hong kong and do with this what they did with the mainlands

after tianamen square. they're doubling down. >> what's baked into the market? i always thought up until the past week or two that we've baked into the market the conventional wisdom was this would get sorted out in some sort of phase 1 deal by december 15th >> i think what robert is talking about is not priced into the market i would say some sort of roll back of tariffs wasn't priced in either, and that's part of what i think led to the up swing in the market over the last couple of weeks but i think it's quite clear that people have discounted a phase 1 deal and also what we were looking for, at least for next year, is some sort of abandonment of these, i would argue artificial deadlines that were put into the trade negotiations this year. >> right >> that really hurt business confidence which hurt capital spending >> we saw that as an article in the journal this morning >> right our trade deficit didn't widen

the real impact on the u.s. economy has been from business confidence. >> you think business confidence is going to regain after phase 1? there's no telling what happens next china has said that they're not interested in a phase 2 until after the election that doesn't mean that president trump won't get aggravated or irritated? >> yeah. becky, maybe on this i'm just making the -- kind of my own assumption that the principle being reelected will be greater than the principle of recasting our trading relationship with china. this is going to be a long term -- a new second cold war. this is going to be a decades long struggle and sometimes you have to do strategic retreats just so that you can stay in the game that's kind of my expectation. >> right >> i think that's an expectation of a lot of market participants as well. >> robert, he's effectively saying that the president's going to have to push now. >> yeah. >> he will have no option.

if he were there in december, that becomes the self-fulfilling prophecy of no deal happening. >> i would ask robert, too i'm certainly no expert. i think most people are guessing on this. it seems to me china has its own political problems and there was some views this morning of them perhaps making some concessions in terms of intellectual property it doesn't seem like it's that much of a lay-up for china to not also come to the table themselves of course, i'm not -- i don't know enough and i'd ask robert, i mean, there are political pressures, they might not be elections but there are political pressures on xi as well is that not true >> well, yeah. there's definitely a struggle going on within the party, that's why i think those shin jung papers were leaked. i think for the president, he has to have leverage if he wants the chinese to deal. they are not going to deal if he continues to back off on tariffs. and so i think for him it's a matter of does he want to get to

a phase 1 deal if he does, he's going to have to put pressure. right now the way to put pressure on the chinese communist party is through tariffs. >> robert, appreciate your time and perspective this morning >> thank you when we come back, the ceo of private aviation company flex jet will talk about holiday travel, how the trade war is affecting clients, business conditions and much more. later, it's all about the bling. lvmh is inking a deal with the little blue box to the tune of $16 billion. what that means to luxury retail 'lha me quk x" when we come back.

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it's the busiest travel time of the year, but not many people could travel in the style that our next guest provides although more, i guess, every year. flying private is his business and this thanksgiving it's expected to be better than ever. here to discuss is michael sylvester, ceo of flex seal. you're sort of analogous to the old mark e jet >> no. >> you're similar to net jet only fractional.

>> we are a fractional leasing business you enter into a long-term agreement with us and we're on the ready to fly you however many hours you need per year. >> what's the long-term agreement? how long does it last? >> only three years. >> three years >> yes very flexible. >> that's why it's called flexyet. >> that's right. over 2/3 of our customers have been with us over five years and almost 40% of our customers have been with us over 15 years so very sustainable model. >> do you think that for lack of a better term these are 1 percenters or above, aren't they .1 percenters, would you say >> you know, it's certainly a point of the 1%. >> what do you think the minimum net worth if you really have to have to play in this. >> if you're not stupid spending all of your money on flying private. >> i would tell you that 60% of our business is corporate. >> right. >> we've moved a lot of our business to supplemental flight departments. ultra high net individuals. >> those are aspirations

watching, i have to get to x before i can even have a conversation about this. >> 10 million. >> 10 million for net worth. >> net worth >> i thought you would give me a number that's 50. >> i think that number has come down i think as -- they're in their 30s and 40s and they're spending their money on private aviation. >> you should be flying private. >> is there' -- do you get some sort of tax benefit? >> you do get depreciation you're allowed to dpreesh yat the undivided interest ours is a very sophisticated, high-level service you actually get the specific aircraft that you contract with and we actually -- you know, you get our pilot. so we have something very unique at flexjet called red label. so we have a dedicated crew for the tail number. the delivery of service ends up

being high. >> you get the same tail number? >> not the same tail number but the same aircraft flown by our flexjet crew. >> short flight you have a $5,000 an hour to take them on two hours or less? >> sure. our fleet ranges from a phenom 300 which is our entry-level jet. >> member air. >> all the way up to the launch with the gulf stream 700. >> someone could get a flexjet g 700. >> what is that an hour? >> that hasn't come out? >> that's probably going to be around 11, 12,000. >> an hour. >> including your fixed fee? >> yes >> that includes everything. >> let me just ask if you are delayed, flight doesn't take off, if you're circling, the flight can't land, does that all go onto the

passenger? >> good question great question >> we help with the other side of that, which is if you're on a long takeoff delay, if you're on a ground hold before you're actually waiting to take off, you're only charged -- >> what if you have to land somewhere else, wait -- >> well, mother nature affects us all >> you've got to eat that? >> we try to do the very best we can. >> i've heard that if you're circling for a lot of these places that's on your dime. >> remember though, becky, we go to over 5,000 airports as opposed to the 500 airports of the commercial airlines so a lot of times we're able to get in a lot quicker. >> are you vulnerable to a big slowdown could you go out of business if -- >> i would tell you that our business has evolved more into a more sophisticated long-term customer so i think we're as positioned for a next slowdown as anybody. >> 5,000 an hour minimum, we're all going to have to get really rich before it becomes --

>> but we've seen a significant trend of corporate flight departments. >> corporate >> utilizing flexjet for supplemental. >> a lot of companies don't want to own >> right. >> pr wise it's cheaper not to own a jet. >> sure. and the confidentiality. so you can't track our tail numbers so it has tremendous -- >> i would also say the load factors for the commercial airlines right now are 85% they're about as tight as they have been and the prices for commercial airline, it doesn't compare but if you're flag with three or four people at a time -- >> it's going up, i know >> -- it could be comparable >> sure. sure i've always thought that there are several factors that affect our business first is are people making money? is there corporate profitability? and the level of airline service. as it gets more difficult to handle our commercial airlines -- >> so it will be four or five times more expensive with four

people as -- >> i looked into t. i looked into it. if you have four people going, let's say it's 1100 to go down to florida, it's peak. >> right. >> $5,000, you might be able to do it for 20 with you, which is four or five times as much. >> well, it's only a couple hours down. >> two and two >> that's $5,000 an hour still 20 versus 5. it's four times as much. >> no. >> starts to get close. >> are you listening, andrew >> i'm listening very carefully. >> i saw you writing things down you have your calculator out >> huh >> we have the whole crew going. i have 12 people over this -- >> so think about that >> plus you can tell them -- >> tell these other people that it costs more than it does and then you can get your -- >> oh, i see now i'm marking it up? >> you're not above doing that i know that. >> mike, thank you >> get his card.

>> yeah. >> coming up when we return, mike bloomberg throwing his hat into the presidential ring a look at the causes that he supports and industries that will affect him straight ahead and we are watching shares of uber this morning that stock getting crushed after the company was stripped with its license and regulators citing a string of failures and security and safety at risk. it'sow dn 3.5% we will talk about that story and so much more when "squawk" returns right after this (vo) the flock blindly falls into formation.

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♪ ♪ welcome back to "squawk box. uber shares under a lot of pressure this morning after the transportation regulator in london stripping the service of its operating license. joining us right now on the phone to discuss the impacts, managing director at web bush. good morning to you. stocks off 3.5%, maybe 4%. that's a little bit better than where it was, dan. if this decision holds, it is a meaningful problem for uber,

dan. >> yeah. this would be a nightmare for uber, especially the fact that it's about 3 to 4 revenue impact you know, if you think about the ramifications here, this has been a back and forth between uber and london, but 3 to 4% could come off the top line. i think companies caught flat footed by this decision. >> so the real question though is are investors caught flat footed on this decision and what does it mean and how do you try to handicap what comes next? they're going to appeal this decision but they've appealed before this feels like it may be different. >> it does and i can tell you from a street perspective, it would be about a less than 10% chance that london tsl would do this and ban uber now uber has to appeal and go through the court system it's something from an investor's perspective quantifying the impact it's the last thing you want to see as an uber investor in light of the news we've seen.

>> becky asked an important question when we were talking about this about a half an hour ago. you can ask if you want, but this idea of whether this is not just a london specific problem, that some of these issues that they are raising, do they apply to the rest of the world and do regulators elsewhere say, you know what, these images are getting uploaded, there's not enough internal self-regulation around all these issues. >> yeah, it's a great point. and i think that's the broader worry here, the ripple impact across other areas this is something that opens up a pandora's box that the company needs to contend with, and that's something you'll see is pressure on stocks in terms of not just london but the ripple impact on this potential decision >> you know, i was a little surprised, dan i didn't realize what was really happening. i thought this was bad blood between the two, but when they said a big part of the problem

was because of this, because you can upload unlicensed uber drivers on to these pictures so it looks like you are a licensed driver, that's a security threat how come the company hasn't fixed that does that exist everywhere in that system? >> it's something in london they've tried to fix but it's been epidemic. it's been something where they've continued to find ways around it. i think that's something that came up here, especially in london, given the back and forth. and this could be a knockout punch. and i think that's the worry it does -- you know, in terms of broader -- it's more of an issue within london, especially within europe given privacy, gdpr, heightened sensitivity to what's going on >> but, dan, what i don't understand technically is if i get into an uber car could it be an unlicensed car driving me as a consumer that's something i want to know. >> that's something in the u.s. that's not been an issue it's something that we've seen in london. we've not seen that issue in the u.s. >> because the computer system

is different or because no regulator here has looked into it >> regulators have looked into it it has not been an issue that's been found in terms of those types of errors. likely seen in london, but i think that's something now as i open the pandora's box, you'll see that not just in the u.s. but elsewhere in terms of peeling away the onion to see if it's a broader issue. >> thank you >> dan, thank you. appreciate it very much. we will continue to monitor uber as you've been talking, by the way, the stock turned around in the worst way -- in a bad way, the opposite way we shall see. still to come on "squawk box" this morning, deals, deals, deals. we'll kick the tires on charles schwab buying t.d. ameritrade. will there be more consolidation in the brokerage trade lvmh and tiffanys tying the knot also later, mike bloomberg is getting into the presidential

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welcome back to "squawk box. lvmh, the world's largest luxury goods company has reached a deal to buy tiffany the price tag $125 per share in cash $16.2 billion. it was the largest ever in the luxury sector. the other big deals we have charles schwab buying rival brokerage t.d. ameritrade. novartis is buying the medicine company in cash. robert frank joins us with more on the big luxury deal of the morning. what do you think of this? >> expected but a little bit more expensive, all luxury than we expected. america's famous jewelry brand will have french owners, lvmh. they have a market cap of over $200 billion is buying tiffany's for $16.2 billion. the price marks a 50% premium

from where tiffany was trading back in october when lvmh first made the bid to buy them for $120 a share this is part of bernard arnault's mission to dominate and be number one in every segment. jewelry is one of the fastest number growing 70% a year to about $20 billion next year. lvmh has a template for this in bul bulgari. they will reduce the store count. looking closely at the ones in the malls, they're probably going to look to improve online sales, launch new designs, better leverage the bridal and engagement business and expand faster in china where tiffany was sort of late to the shift and chinese consumers are buying more luxury in china rather than over seas. for years they relied on the chinese tourists coming to the new york store which they aren't

doing. >> how is one store ableto hav such a huge impact if you rely on tourism in one store, what does that say about your overall strategy? >> well, they weren't still relying on that one store but broadly speaking chinese consumers were purchasing over half of their luxury whether it was europe or the u.s. that has since shifted lvmh was ahead on that shift tiffany was behind chinese consumers now buy 1/3 of all luxury in the world. that's going to move to half by 2025 >> if you have been buying more in china, it means you were ramping up there >> as long as you have the right store but tiffanys didn't until recently they were based on the model that the chinese would all come here, buy the stuff here and bring it back and that's not happening anymore. >> so did -- we saw this deal and someone said, all right, call frank call robert frank. but what about -- were you going to do the flex jet interview,

too? >> you have more experience on private jets than i do so i let you -- >> ooohhh. >> wasn't that normally part of your -- >> you guys did a great job. >> so did you choose -- did they say we have this for you, robert, or we have this or you can do both? how did that -- >> i -- i opted for lvmh. >> i tell you, i'd rather forget cars if you're thinking about me i'd rather have a couple of hours on the flexjet. >> we're still waiting on -- buffet handles that, doesn't he? >> he's given me cards netflix cards. it has my name on it and everything. >> he gave him an acme brick, too. >> the taco bell card that i got from david novak is worth a lot more than the netjet card. >> yeah? >> there's nothing on the netjet card it's got my name let's get a check on the

futures. buffet could afford a couple of hours here and there he likes me, probably. anyway, let's take a look at the futures up 80 now on the dow the nasdaq got to go up a lot more than that for me to start rehan private mo t80 points. 27 on the nasdaq and s&p up 8. "squawk box" is coming right back when you shop small you help support your community - from after school programs to the arts! so become a regular, more regularly. because for every dollar you spend at a small business, an average of 67 cents stays in the community. join me and american express on small business saturday, november 30th, and see how shopping small adds up.

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overseeing more than $5 trillion in assets joining us to talk more about the deal is devin ryan he's financial analyst and mike santoli. our guest host is jason trennert devin, let's talk about what this means for the industry you cover. what happens i know the deal is out today what can you figure might happen >> sure. clearlyyou're putting together two of the best brands in the industry so if schwab kind of the leader in the industry and on the options side, you are putting together a great advice based platform and active trader

platform it looks like a good deal. 15 to 20% accertion. i think on the revenue side, there are not a lot of details in the press release i suspect there's going to be more there probably a little bit under promising, over deliver, is what you're going to see here good deal from the first glance. >> watching t.d. ameritrade, up initially on the deal getting done watching them this morning, they were up 4%, down a few percent, back up 2% what do you think that is? >> i think people are trying to make sense of essentially what the ecretion is. that's part of it. it's going to take a while to get there. i think they're leaving themselves a lot of room to get this right you have two big platforms it's a big deal to execute leave a lot of room. go heavy on expenses in the beginning and don't over promise on revenues. my sense is again if it's only

15 to 20%, i think it's something decently better than that they're trying to leave themselves wiggle room here for pricing action and just to move a little bit slower. >> so the proximate cause of this obviously zero commissions and can you just -- for somebody who runs an institutional brokerage, zero doesn't really -- i can't quite understand how zero works. it's going to cost you something to execute the trades, 30 million. what is it precisely i'm sorry, i should know this. how does that work >> you make it up on volume? >> yeah. what's the -- it's a good question so it's a scale game so you have to have scale to be able to deliver that type of pricing. so you make a little bit of money on payment for order flow from the market makers so they're paying a little bit to the brokerage firms forex caution. then you're making small amounts on margin lending, transaction costs elsewhere in the platform.

getting paid a little bit for third party companies. so you're making a couple basis points here, a couple basis points there but when you have 3 trillion you can make it up. >> is it sustainable is it something where after the consolidation is over will the pricing no longer be zero? >> i don't think so. i think what we're talking about this morning, you might getmor pricing reductions here. if you think about it, schwab, ameritrade, they're operating at 50% margins. trading costs are coming down and they were higher 20 years ago. >> how much are individual trades still the -- >> for schwab it was 7%. >> more like 25 i think for ameritrade so, no, it's kind of like well banks give you free checking, not because it doesn't cost them anything but because the relationship, they earn it elsewhere. so i think it's a move well beyond that. >> what is your sense around the

antitrust around this. they have not mentioned a breakup fee. i have to imagine there is one this is something people are going to look at. >> we talked a lot about it with clients last week. it's a great question. you have two firms over 5 trillion in assets it's very fragmented. >> depends how you're defining the market though. there's multiple ways to define the market by the way, if you look at rias, that's the part where there's the most concentration on paper. it's, what, 75%? >> right right. 75% of that particular business, that custody for independent rias fidelity is a big competitor what's interesting is if you pulled the investment advisors themselves, they'd be like this is great they will be that much bigger, a better flat form, all the rest of it. i wouldn't be surprised if there's some scrutiny there. in general, the overall market for retail investment services is so vast and it's so driven by these cost competitive players

like vanguard and fidelity i don't know if it necessarily, especially under this current regulatory posture, if that's going to be an issue. >> you probably have 10% of the overall market in the deal here so it's not a small number but that's a number i think that can be overcome. and then ultimately a lot of antitrust issues are around what happens with the customer. the customer has been treated very well here in the industry as pricing has come down i think that this is an opportunity where pricing comes down it will also be looked at and the customer whether it's the retail customer or the ria is a winner in this transaction. >> what do you think happens with the rest of this? >> if you have an ea trade, it's smaller. there's a little bit more impetus for another round of potential consolidation. it's more to the point the direction of the business is going to be towards everything is going towards -- as close to zero as you can in terms of actual out of pocket costs

what i think is interesting about ameritrade, schwab, this whole business, they were founded on the premise of undercutting the incumbent, getting cheaper, delivering more, making it more technology oriented that's why it's different to me than when merrill lynch was trying to defend the moat. they live in the world of making it cheaper for the customer and we'll hopefully make it up on the back end when schwab went down more than $30 a trade it was 20 years ago. it was a big deal. >> devin, we have to go. very quickly, who would the buyers be? >> well, you have two of the biggest firms tied up a little bit. they still in some ways make sense. is there any way we'll see how this deal starts to progress whether they could come back around and etrade would still -- the consolidation in this group still makes sense. people look at the big banks, whether it's goldman sachs, morgan stanley, those are the types of names that get thrown out. by the way, trading is free but it's commodity

all the parts of the business that are commoditized in any industry that over time the pricing comes down so the parts of the industry are the advice based non-come non-commoditiz non-commoditized. >> good to see you >> price down to zero. i'll pay a little more for the trading. >> the trades? >> i mean, there's too much of a -- >> good luck with that. >> i don't know how you truly get the prices down. >> too much of a disparate why couldn't that go to a rally, the stupid stock trades. >> the only way it will make sense is if you have a whole lot more kids and you're flying a lot more people at one time. >> it's not going to happen for us. when we come back, mike bloomberg's run for president and what it means for business check out the futures at this hour thhere indicated up this morning wi t dow futures up by 78 points, nasdaq up by 26, the s&p up by 8 points "squawk box" will be right back.

billionaire and former new york city mayor michael bloomberg entering an already crowded race building a campaign staff as we speak. kayla tausche joins us right now. she has more on his announcement and reaction from the white house as well. kayla? >> reporter: good morning, becky. bloomberg becomes number 19 in a crowded democratic field where he's betting his immense health can help not hurt his standing this starts with a $35 million cross-country add list that in

one week dwarfs total spending by any other candidate the 62nd son aims to introduce bloomberg to voters. it focuses on his past record than future policy though it does say on health care he would expand medicare and the affordable care act to achieve universal coverage bloomberg news says it will not publish investigations of any of the democratic contenders. bloomberg himself hasn't said how he'll manage it as a candidate. he suggested in a 2018 interview he would sell the business if he could. he would wish a tech giant take it over. bloomberg faces an uphill battle advisors said he'd skip the early states like iowa and new hampshire and focus on the states coming on super tuesday and afterward even though those early states usually have a very strong sway in the eventual

nominee. guys. >> great, kayla. thanks for more let's bring in our guest, new jersey legislator scott gottheimer an enigma. i'm from new jersey. >> love it. >> you're becky's -- >> and former cke restaurant ceo andy gunther whom i am very fond of as well i love that western bacon cheese berger. >> great. from carl's jr. years ago. josh i'm trying to figure this out. i think a lot of democrats have amy klobuchar's view of this it's like we have all of these very good people running and we've been doing this for a year already. all of us pounding the pavement beings trying to earn the trust and respect of democratic voters and you come in and parachute in now because you're -- in your

view none of us are good enough. i think that's not a great message he's sending, do you, or how do you feel? >> listen, there are a lot of excellent people in the race cory booker. from new jersey. cory's terrific. i believe it does not hurt us to bring more ideas into it. >> if he was an independent candidate i think it would hurt you. >> he's running as a democrat. >> as a democrat if he got the nomination he wouldn't be siphonsing it off of somebody else >> people are hungry and there's a case for class warfare i think bringing in more ideas is not a bad thing. >> you would admit that a lot of the energy and excitement is in the aoc, bernie, elizabeth warren wing of the party so the answer is a billionaire who uses money to buy influence that's what they're running against.

is money buying influence? >> people are running for president. people have certain ideas and there's certain energy there i think there's a lot of hunger for people who are going to be a uniter and really going to be focused on fiscal responsibility >> a lot of people a lot of people. you need 65 million. >> how many of the deplorables, the 63 million, is bloomberg going to get and how many of the 65 million hillary voters are going to be fractured by wanting to be far left of where the excitement is? so where is -- >> you're more of a political pundant than me. >> i'm telling you it's going to end badly for him. andy, what do you think? >> i think bloomberg is going to pull votes away from joe biden i don't think that's good for the party. i think it helps the elizabeth warren and bernie sanders when you're in the party. i think he probably appeals to people who don't want to fall off the far left split i agree with josh that americans don't support class warfare and

i don't think bloomberg brings that class warfare message to people i think that could be helpful. i don't think he gets the nomination he probably hurts the one at least mildly moderate candidate the democrats currently have, joe biden, who could potentially get the nomination we'll see what happens i think it's a gift to sanders and particularly warren. >> i think we need to bring more ideas out there that are more center based, that talk about also uniting things. this is where cory is, this is where mike bloomberg is going to be let's stop attacking each other, right? let's stop deciding who -- attacking success, which i think is a huge mistake. let's talk about broader based opportunity, job training. focus on lifting everyone up to me if we had that message out there it's a much bigger shot winning in november whether that's cory, joe, mike bloomberg. it's the ideas that are going to matter >> in his view biden is so damaged at this point that he decided to step in because he said that all along.

do this. i'll back biden until i think he can't win if i think biden becomes too damaged, then i'll step in. here he is stepping in. >> i think we've got a long way to go and you see how much changes week to week right now i think we've got a long way to go >> you're walking a weird line because it would hurt cory booker's more moderate candidacy too. >> well, no, i think because there's a long road, a lot is going to change between now and then i think there's a lot of good people running and anyone who's deciding this is over is wrong, which is what i think is why mike got in. it's also why i think cory is staying in and fighting. i think there's a lot of opportunity. >> let's say he's okay, i'm known on the east coast. i'm not that well known anywhere else i'm into the going to do 30 million, maybe i'll do 100 million because i can. no problem in fact >> right. >> that's peanuts. >> what's the problem? >> you think the elizabeth -- that doesn't allow them to criticize him? tomorrow steyer. >> get criticized no matter

what. >> go ahead, andy. >> do you honestly think that the democratic base, the base of their party, is looking for an old billionaire white guy to be the candidate of the party to generate the kind of excitement they're going to need to remove a sitting president? i think bloomberg creates -- now i have to say i'm hoping elizabeth warren is the nominee. as a republican i think she would be the best for us so i don't want to talk her down. she's so far to the left she can't win. does bloomberg really help this? does bloomberg energize the base and create the kind of feeling -- >> i think you're right though the great conundrum is as i've said a million times i think he's the most competent, accomplished person around except for the fact that he doesn't inspire people in the sort of traditional sense of being an orator who can sort of own a room on a stage, right that to me is -- you know, that then becomes the enthusiasm

issue. >> i've got it. >> what do you think you know what -- >> right, but i actually think, and this is where i'll go back to people are hungry for good ideas. if you have someone who comes in and says, hey, we're going to make sure we fight to lift everyone up, every candidate at the top is going to have the resources. elizabeth and bernie have resources coming in. this is where it gets back to who is going to best run this country? who's going to bring the taxes together who's going to reinstate salt and get the taxes back down. >> that's not going to feel much in the midwest look, what's not only that, you've got a president who is lifting everybody up we've seen unemployment down we've seen it down for minority groups you have to come in with more than ideas you have to come in with somebody who will inspire the base of the party to show up on election day and i don't see mike bloomberg being that guy. >> you've got your base, that's right, but you need to get your swing voter out. we're seeing what's happening in the suburbs when they're not

coming out it's very, very important that we have somebody who brings the country together this is the difference who is going to be able to unite us everybody is going to say that's somebody i'm okay with being president as well as the democrats. to me that's the answer here and that's our best way forward. >> where is the base of the democratic party did hillary clinton really lose because she wasn't progressive enough is that the lesson >> i don't think that's the lesson at all. >> but it seems to me that seems to be the lesson that a lot of democratic nominees are taking from the 2015 election and as someone who grew up in a democratic household, i would argue very different you know,on f. kennedy would not even be remotely considered -- he would be considered -- >> what i hear about is what are you going to do to make my life more affordable? how are you getting my health care costs down? how are you going to fix my roads and bridges? we need somebody trying to fix those. >> if you don't like what you've heard so far from the leaders at the democratic party.

>> i think the ones leading the list right now, no. >> let me ask you, what will you do if bernie sanders or elizabeth warren are the candidates >> what will i do? >> personally, i will have a party. >> we'll celebrate. >> we have to run. so how are th? great. thank you. thank you, sir. lunch next week? terrific. say hi to the team. will do. call my office, i will. -sounds good. alrighty. servicenow. works for you.

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merger monday. luxury goods businesses and the promise of one new drug revealed you need to know about. the race for the white house. michael bloomberg throwing his hat into the rig. and the biggest ever debut for an animated film frozen 2 warming the hearts of disney investors the final hour of "squawk box" begins right now. good morning and welcome to "squawk box" here on cnbc. live from the nasdaq market site in times square. i'm joe kernen with andrew ross sorkin and becky quick smile, jason trennert.

looking good visiting with jason. u.s. equity futures are green. 80 on the dow. s&p indicated up nasdaq up 27. >> today's top stories, lvmh is buying tiffany for $135 share in cash that's a $16.2 billion deal. this is the french company's largest acquisition ever shares are a little higher this morning. lvmh up by 1%. tiffany up by 5.6% talk of this deal has been out there for a while. this is the first look since i think david faber first started talking about it at what's been happening with the shares. it's official. charles schwab acquiring t.d. ameritrade >> uber shares are down.

the company is not fit and proper to hold the private higher operations. uber immediately said it would appeal and that that process could go on. the stock is down by 4.6%. >> you live in the digital world quite some time. >> there are two interesting trends as the tech economy becomes part of the overall economy, there is scrutiny by government regulators and when i was at snap i had to spend a lot of time with a lot of government organizations and things like that and i think it's a new way of life. >> right can i speculate for a second that as the stock dropped and

continues to drop, we're at 2023 right now. think of where the stock was at the ipo price. where do you think an activist will ultimately emerge uber, unlike virtually every other place in public, because of the travis kalanick situation went to a one share, one vote system right? every other unicorn out there including lyft, everybody else has dual class you can't do anything about this the question is do you think this opens them up to an activi activist if you came in there and said, running for growth, i don't think you're growing fast enough, you have a cash problem. we talk about the reverse, running for cash, i don't know what you get because you don't get the growth >> i spent most of my time operating onion line shopping sites. i'm not the expert. >> the reason i ask is you did spend a lot of time on

governance at snap there was a decision to have a dual class there >> yes i think one of the things that every company has to make their own decision and i think a lot of times the way we make the decisions of structure, our decision was not like, you know, let's vote that we are not hearing for the shareholders we were listening to the shareholders but given that snap's long-term goal, it makes sense to protect the companies to and from short-term thinking. >> right if you were investing -- would you invest in uber right now >> i probably wouldn't i think you asked a very interesting question about uber that it made me think about this i think the problem with activism in a company like uber, i don't think uber can help you with regulation. they can help you with governance it can help you with financial engineering, strategy. in terms of the government, i think it's very, very difficult and i think -- i think you're absolutely right

there is no question in my mind. tech largely was -- i would say largely protected, mainly because it was off the radar but -- as far as government regulation is concerned. it's not true now. the lobbying efforts of technology companies are ramping up very, very quickly. to answer your question directly, uber, i would say it scares me a bit. >> right. >> uber's getting more than lyft though the reason i ask is they're basically in the same business except that uber gets it you continue to persist.

>> that's a new way of doing business 15 years ago you get a lot of free pass and people will not give it to you anymore >> can i switch the topic on you for a second the other big news is at lvmh. we have the td ameritrade with schaab we have this lvmh deal you're in the retail space >> yes >> but the thing that i've been thinking about is, you know, in some ways they were forced into this deal, right forced into this deal because of the margin compression taking place in this space. >> you are absolutely right. one of the most interesting trends i have seen is that we are now seeing a fragmentation of brand it's very similar to what happened in the media industry think about it, 20 years ago you wanted to be content creator, actors, newscaster, you had to go to this big media outlet. >> right. >> then bloggers came along,

youtube, snap chat, instagram fragmented the market. same thing happening in retail if you look on my site, 70% is coming from discovery brand. >> new brands? >> all this brand are really eating up the shares from the big brand. consumer loyalty for this big brand has gone down -- >> give me an example. what are the new brands you're talking about? >> i'll give you a perfect example. two talented executives one names rex cho, he came from loyal. the other is justin luce we built two brands. ghost democracy. check out ghostdemocracy.com and billies off the chshelf.com. >> skin care products? >> yes.

>> couples it's very expensivex. >> the thing is that you have all of these new brands coming up they're building brands. nc >> we can help people. >> you can create a rot lot of brands >> more and more access to capital. it seems hard to get any help.

>> i think the market is incredibly competitive what's happening is that the millennials are very different than my parents' generation. my parents' generation hada very strong brand loyalty. >> 127 million

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it was a record-breaking weekend for disney julia boorstin joins us. she has the details on the rollout of "frozen ii. >> becky, good morning "frozen ii." has brought in $12 million at the north american box office. that's the biggest opening for any animated film.

it's $350 million worldwide take is the number one global animated debut weekend of all time and the biggest opening ever for a walt disney animation studios movie. now the success is also proof of how disney can expand. this is the first time it's done a theatrical release of a princess movie in the company's history. the weekend's numbers show that the demand for product like disney plus, which includes the first "frozen" and will stream the sequel next year, it seems people will turn out for disney movie in theaters despite the fact that so much disney and princess content is available at home for a fraction of the cost. this weekend could also help jump start the box office for the holiday season the annual year to date box office is still down 7% from last year. becky? >> julia, the long-term impact of the box office from streaming services, what do you think?

>> i think it's too soon to tell it is worth noting that the november box office, from the start of november to before this weekend was down 27% i don't think it's a coincidence that disney plus and apple tv plus both launched in that time frame. i think that those streaming services and all the content they offer is going to make the barch higher for going out of the home and paying money to go to a movie theater >> julia, thank you. >> joining us now for more on disney and others is managing editor of fandango and we have ceo and co-founder of verishop and chief content officer of snap. we should get into the business side of things i feel like a siskel and ebert thing when you get in here i think we're going on new year's eve 1970 comes out, i think i have a date.

>> 1970 this comes out christmas -- like limited. >> you say that blew you away more than -- >> it did. it did it's all one shot. it's a fantastic film. directed by sam mendez the cinematographer won an oscar for "blade runner. it's the kind of film you want to see because it's all one shot you're in it from the moment it starts. >> what do you mean one shot >> the way they conceive of it it looks like it's all done in one shot technically there are cuts that are hinted in there but when you're watching it it's almost like you're just following >> living it >> living it >> what was the movie that's like that that goes on and really is one shot the first ten minutes? >> they did it with "bird man" which won best picture, similar content where they hide the cut. i like it because it's more immersive. you're in the film i think this one not a lot of

people know about and it's coming into the holidays. >> did you see mr. rogers yet? >> i did i love that one, too your security man is going to the theater this weekend with his kids trying to figure out what to do, "ford versus ferrari," fantastic film all of them this thanksgiving. so we're talking about streaming, people not going to the movies everyone's going to the movies over the holidays. everyone is getting out of the house. >> there are certain films -- obviously "irish man" is going to be on netflix another one on -- >> that's "the marriage story," that's going to be out. >> that's already out. >> i saw that at the film festival. >> it will be on netflix in early december they gave it a month run in theaters. >> you've got to take over the "frozen" interview >> max dorkin saw "frozen".

>> "frozen ii. >> where are you at? >> i have a 10-year-old daughter she associates "frozen" as being a little girl and now she's too cool for school. >> it's a short story. she saw it with me dad, i'm so surprised at how much i related to the story. >> it's more adult >> more coming of age. more pre-season teenager although they'll still like the songs, olaf and all of that jam. >> did you think that was the idea of trying to take the generation like the first time -- >> very smart. very smart of disney to say, no, we're going to write a story for the audience -- the original audience that saw frozen versus little, little kids. it's more mature. >> how is the industry dealing with "irishman" will it win best picture or will it be frozen out? >> they don't like netflix. >> they're hesitant to give that

to a streamer so i think that's why we may see films like -- >> that was my favorite. >> fantastic 1917 you may see those films sort of emerge as the front-runners for that top oscar that's fantastic i would recommend that. >> you know, you have plenty of time plenty of time for all of the little nuances >> what was the fish why was the fish important it was the funniest part but it meant nothing to anything else, huh? >> it's also interesting, too, because he uses the deaging process. >> it costs a lot. >> that technology we're going to see a lot more in the future and i'm curious to see -- >> you know to never sit in the shotgun -- literally in the shotgun seat they tell you to sit -- they know i'm sitting in the back,

right? >> you read shotgun. >> that's not why i call it that. >> don't give it away. >> the "god father." >> the player opens without -- >> oh, the shot. >> it's one camera >> it's so long. >> was that robert evans >> he got an email to alert. >> robert evans. >> robert altman. >> yeah, the longest single take in 1917, something like nine minutes long. >> i'm looking forward to that i've got to see it >> do i eat it with the fake butter on the popcorn or at home with orville reddenbacher. >> what you eat is up to you i'll go all in on a specific amount of films you have to see on the big screen. 1917 is what you have to. >> what have you seen? you're taking it all in. >> my daughter who is 6 years old went to see "frozen" yesterday with my wife my son didn't want to go so i

stayed home. >> we had one that wanted to go, one that didn't. >> yeah. they're very different >> all right >> see, i like all of that stuff. >> who's the guy that's just so mean rex reed is so mean with stuff he says. >> the way he says it is like, all right, we understand you don't like it. do you have to say it? >> i like the look >> thank you. >> coming up when we return, i don't know, do you guys like elon musk's look taking to twitter. posting this video of tesla's new cyber truck pulling the f-150 uphill you have to see it to belie ev it details on who's buying the vehicle when "squawk" returns after this robinhood believes now is the time to do money.

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welcome back, everybody. phil lebo joins us with the details. >> these are impressive numbers if you look in terms of number of people who say, look, i'm interested in buying the cyber truck. they have collected 200,000 reservations let's be clear here. these are reservations at $100 a pop. 200,000 is an impressive number, but $100 is not a whole lot for somebody to say, yeah, what the heck put me down for one.

if you build it and sell it, i might be interested in it. by the way, it is a refundable deposit. how does it break down in the type of cyber truck? there are three versions the type that people want to buy. the cheapest version, thirty-nine nine is the price they announced, 17%. the remainder either want the forty nine nine version or the sixty nine nine. that's the highest version, the tri motor which will have range of more than 500 miles so when you compare the model three reservations with the cyber truck reservation, 267,000 of the model 3 versus 200,000 for the cyber truck. a key difference, the model 3 when they unveiled it, they said $1,000 was the deposit that's what you had to put down there. that's a big difference from $100 it's not much for somebody to say, what the heck, put 100 down there. it's a big difference when somebody says i'll give them $1,000 to decide whether i go

forward. i will be curious to see what the reaction is from wall street to these numbers remember, the stock had a nice move after the model 3 when the reservation numbers were coming out, but conveniently over time if you ask tesla, if you ask elon musk, what's going on with the reservation backlog, they said we're not talking about reservations it became a source of irritation for analysts who are saying, wait a second. you tauted in the beginning but you don't want to keep us updated on it. let's see what happens for the cyber truck. if they say, yeah, great ideas in terms of people who want to buy this truck at 200,000 right now. let's see if they continue to update it down the road. my guess is they probably do what they do with the model 3 and not update those numbers. >> phil, it's not nothing if you are putting down $100 for a reservation. that's saying i will buy one at some point down the road and put my name on the list. >> you are right about that, becky. on the other hand, it's not $1,000 nor is it $2500 which is

what the deposit is for a model y. i'm not saying there's not significance with 200,000 people putting down $100. what i'm saying is it's not on the same level as what it was for the model 3 back in 2016 nor what it is for the model y by the way, they haven't told us what the reservation levels are on the model y so it's hard to do an apples to apples comparison on each of these reservations what this is is elon musk coming out and saying we see great demand for the cyber truck. >> phil, thank you. when we return, we have this morning's big deal news. we'll be right back. coming up, after a wild week for retail, an update on the state of the american consumer we'll talk about spending and key economic signals ahead of black friday, cyber monday, and the busiest shopping season of the year stay tuned, you're watching "squawk box" on cnbc

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welcome back to "squawk box" this morning is that a little taylor swift who was singing, by the way, at the amas after going after the carlyle group, no less, and scooter braun back and forth she performed some of those older songs. the debate still continues over what happened. meantime, traditional holiday shopping begins this week on black friday steve liesman joins us now for a little check on the health of the consumer steve? >> good morning, andrew. will it be a bah humbug or ho, ho, ho holiday the answer is critical as u.s. economic growth is relying on consumer spending. last year was among the worst christmass since the financial crisis despite all major indicators being in good shape, consumers stunned the retail industry with zero growth in november 2018 and a massive 2.3% decline in

december the decline despite strong indicators might have been linked to fed rate increases maybe a sharp drop and that happened much later. that partly rebounded and the heating up of the trade war. this year optimism high again. the indicators look even better. record low unemployment. very high savings rate decent wage growth low debt service and sentiment last week was good, too. our economist jack klein is there with current economic data and the recent economic data shows we can see a stronger season they predict a 4.2% growth it's worried about the effects of tariffs and yoifr aoverall uncertainty. whether that spills over to the consumer side. optimism at the holiday shopping season, a healthy consumer questions as to whether this year will be better than the last >> steve, what about the idea of what the stock market is betting

on what are they anticipating for the holiday shopping season? >> it's worth while to go back last year and look at the retail index. there was a lot of optimism in august and then the retail index fell along with the market, pretty much coming after the black friday, maybe those reports came in that it wasn't the black friday that people expected this year you can see the optimism level not quite as high as it was this time last year, becky. >> steve, thank you very much. >> sure. let's take a closer look at the state of the consumer as we enter the holiday shopping season for that, we welcome joe abornia. also a cnbc contributor. john briding, chief economic capital and jason trennert thank you all for being here >> you got it right. >> all right gentlemen, let's just talk about where steve left us on this. what do you think just in terms

of the state of the consumer right now. >> steve left out oil. gas. they have a lot of disposable income next year growth could be better unemployment lower these consumer trends look very good in my mind. i wouldn't worry about retail sales. very small piece, becky. services drive the consumer. everything looks pretty good i don't see why it can't continue >> john, let's just talk about this we have people who continue to hold up the economy. you say that's the wrong question what should we be asking >> i think it is the wrong question consumer spends, at least the majority, the high end consumers are spending at tiffanys, the big story of the day, but 80, 90% of consumers spend their income that depends on employment so i think wage growth, employment growth are the keys to consumer spending and the signals there remain quite positive slight opening

i'd watch that we don't have to worry about the health of the consumer as long as the employment situation is in place savings rates are surprisingly high especially given the wealth effect, the level of health rising and equity. i watch the labor market for the holidays, we should be fine. >> that would be my question if we're worried about what happens to the consumer, looking at the underlying trends, both for employment and wages, they look pretty strong. >> they do the variable i watch very close to the yield curve did not get very negative and stay very negative it steepend out. financials and cyclicals are doing very well. i don't see why it can't do well the uncertainty that you hear time and time again, i'm going to make a controversial statement. uncertainty will cause businesses to do some stuff or come off the sidelines. >> how so? >> you can't just sit on the sidelines and do nothing if the consumer does better because unemployment is falling, that's a good environment for

cap ex. >> that's a good thing, jason. >> well, the potential i would say -- you know, the tax cut that was passed is a very supply side tax cut there is some concern depending on who wins from the democratic side, whether the tax cuts would stay in place. there's a chance that it actually pulls capital spending forward. i go back, joe, to something that you said with regard to christmas sales. the two things that we found correlate most highly to holiday sales are prices of gasoline at the pump and the stock market. year over year nationally the prices at the pump are basically unchanged unless you're in california in california they're up meaningfully as far as the stock market is concerned, you have to remember the s&p fell 9% between december 19th, the last fed tightening, and christmas eve day. so that was not a particularly good welcome development i would say for christmas sales, this time around, obviously the fed is on the sideline so it should auger well.

>> pause for one second because we have a little bit of news crossing the tape right now. ebay apparently close to selling stub hub for about $4 billion via go go. ebay had talked about selling stub hub for quite some time and now they're reporting -- >> close to a deal the deal hasn't happened yet >> they say near a deal. this is according to dow jones, not our own reporting. >> near a deal >> could be announced monday. >> what did you say? >> could be announced monday >> back to the employment story. i think one of the strange disconnects about the economy is we have a disconnect between capital spending, which has been soft, and employment growth which given the labor force has been relatively strong and i agree it was a supply side tax cut. we expected companies to respond by boosting capital spending the trade uncertainties hit and capital spending numbers have been very disappointing. if we are going to get celebration in the economy this

year, i think it has to come from the corporate side in capital spending, not from the consumer side. >> i agree with that i think in some ways the trade tensions in some ways sterilize the tax cut. now in an odd way for the president you could say he's given himself some shadow rate cuts for 2020 and you could say, you know, this is a bill belichick type play where you essentially slow things down just enough in 2019 to let them run hot into the election year in 2020 is interesting. >> jason, here's the thing up until last quarter the weakest part of the economy was construction the weakest part that's all rates this trade stuff to me again is totally over played, has been over played the whole time the excuse for everything. s&ps are higher, the economy is still healthy. housing is now returning to some level of positive trend because rates why so high late last year. >> the problem is 3 or 4% of the economy. capital spending is a much

higher percentage. >> there's a big multiplier. >> we need the productivity gains. i still have a main concern that the capital spending story is the one that we need to fall into place if we get too far into next year, it comes in about what happens to the election then, companies -- i disagree with john companies do not like uncertainty and they hold back from deploying capital the key thing you need in uncertain times is liquidity you deploy when animal spirits is higher. >> the equity of markets set a record high. >> guys, thank you. >> the disconnect. >> thanks for coming in. >> thanks, joe. >> you're welcome. >> and you as well and john. coming up, billionaire businessman and former new york city mayor michael bloomberg is running for president. now how he might change the race ua b" merit cos gh back obvious. sometimes, they just drop in.

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michael bloomberg making it official over the weekend joining the 2020 democratic race with a net worth of $50 billion, he has said he will self-fund his campaign and not accept any donations. joining us right now is political strategist joel benninson. he's worked on presidential campaigns for presidents bill clinton and barack obama and hillary clinton. thanks for being here. >> happy to be here. >> how does this shake things up this is not what you would

anticipate in a year when democratic candidates are vilifying billionaires >> on the other hand, he's playing by some unconventional rules. in unchartered waters skipping the early state primaries. you have to go back to 1968 to find when the democratic nominee didn't come in first or second in iowa and new hampshire. one of the things they may be -- >> hubert humphrey, 1968. >> that's because johnson only won new hampshire by 6 points. >> he was vice president, wasn't he >> he wasn't in the race johnson only beat mccarthy in new hampshire by 6 points. that's when johnson a month later said i shall not seek a nomination and humphrey got in. >> a long time ago >> so, you know, these are small states but it says something about retail politics. people want to see you sweat for it, work for their votes on the ground i think they're counting on this

air war where they're skipping the first four states. very unconventional approach. >> the outside states here >> i think it matters because i think having been involved in these campaigns, particularly with president obama in '07 and '08, the retail politics, phone calls, people on the ground, person-to-person contact, knocking on doors, that stuff matters more than before even though we have television, internet, all the ways we can communicate digitally. i think there's something about having real people in your camp campaigning for you. >> if that's the case, which of the democratic candidates has the best base in terms of people on the ground? >> i think you have a few building very good organizations. you're seeing it with elizabeth warren both in new hampshire and iowa buttigieg has an organization in those two states as well you have to go beyond those fairly quickly, but those are the two. bernie sanders has a little bit of a legacy from last time out but he's had some speed bumps. >> can you buy it? meaning can you build that

organization by buying that organization if that makes any sense. >> i don't know that you can >> right. >> i think volunteers matter i think having passionate people arguing for you passionately, you can get paid people to sign petitions to get you on the ballot, but i don't think that gets -- you can get the horse to water but i don't think that's what makes the horse drink. >> i guess what you're saying, i'm just jumping here, you need to have a lot of fairly young people, college kids that are going to work for free and knock on the doors. >> yeah. yeah, but you still have more adults if you look at the enthusiasm in these elections, the turnout in the mid terms in 2018 was only 20 million voters short of what the presidential was in 2016 there was -- i mean, it was 114 million people versus 134. people are highly engaged right now and i think it's a combination of factors i don't think it's all about donald trump i think it's the consumption of our media is just getting more and more ubiquitous and more 24

hours a day for every individual >> joel, thanks for coming in. >> happy to be here. >> good to see you. all right. pull out the cooking book. >> cliche. >> cliche. >> merger monday dom chu. >> are we -- do you wish it were sunday, your fun day that's my run day. >> i did not i tried to my wife put the kibosh on that idea she said -- >> you tried >> i did try saturday was the better day. sunday obviously was a rainout so i didn't do it. >> you still wear pants but that's just symbolic. >> welcome to the club >> yeah. >> all right, guys let's get you through the headlines really quickly because we'll start here with shares of online brokerage t.d. ameritrade up about -- you know, just about maybe 3.5% or so roughly 1 million shares of

pre-market volume. they agreed to be bought by charles schwab nearly a million shares of volume as well that confirms becky quick's scoop. they will get 1.0837 shares of schwab that deal is around 26 billion bucks. now you have shares of tiffany which are higher by 6%, 3.8 million shares of volume the luxury goods for the high end engagement rings in the little blue boxes, agreed to be bout by lvmh for 135 bucks in cash that means lvmh shares are higher $16.2 billion transaction. that deal brings together tiffanys with a brand collection that features lui vuitton, kristin dior the biopharmaceutical company is

agreeing to be bought by novartis 85 bucks a share in cash $9.7 billion that deal gives novartis to new medicine novartis shares off fractionally medicines up 23.2%. thank you for that, the cliches and all of the other ways you can say that word will today's deals push stock higher david baylor is here jason trennert sticks with us as well do you think this is game changing are we now back into deal mode >> i think we are back into deal mode two of the areas that the private bank likes for next year are related to private equity and transactions industry that benefits and they can be acquired by debt. they ecretive.

>> how much of your time are you spending trying to find out who's going to be the next target >> to building portfolios? >> yes >> that's something the stock analysts -- >> that will endanger business >> that's right. there are industries and a couple that make sense health care is one a lot of tech mergers that take place. those are areas where you can't build portfolios. >> you mentioned health care and continued cutting two ways on health care. one that i can see speed up animal spirits, let's get it all done the other is i can see a pencils down, everybody, elizabeth warren is coming who knows what's about to happen next let's just watch this movie play out and call me in 18 months or two years because i have no idea where this is going. >> right i think that may make it a great buying opportunity here's why we've actually seen candidate warren change her structure of what she's thinking about in terms of health care and reimbursement. more important, this is a global game that's why these acquisitions

are going to make sense. this is not going to be the ultimate driver. >> we talk about animal spirits. they're here and now i happen to actually think that some of these transactions that are taking place are what i call pre-thanksgiving, pre-christmas, if they were in the works before you sort of have to get them done now because you want to get them done during this calendar year the question i have is whether you can persist in an election year. i think the financial sponsors, private equity too much money and rates are extraordinarily low. they're going to have absolutely no choice.

they talk about that, they talk about the idea that got to harvest now. we're in the harvesting mode >> the thing i would argue, though, if i can jump in, is the public markets are much cheaper than the private markets and so the -- what i would say next year -- what i see next year is a lot of private equity companies going for public equity targets using lbo to take them private. >> we like that area very much and to your point about the healthcare, we think about it, take a look at abbv, which raised $30 billion, extraordinarily low rates, wouldn't you want to be the acquirer companies have a growth trajectory this is a good time to be public given the valuation. >> smart point about this idea that the public market, relative to the private markets are at a discount. >> yeah. >> the question, though, is really whether the private markets that those valuations are even accurate to begin with, given what we have seen with the

weworks and everything else. >> if anything it would be worse. you know, if anything. i would argue argue that -- we have gotten hate mail on this. if you look on a trailing basis, the whole basis for private equity was the idea of a liquidity premium that you had to pay up for companies because it was listed. right now there is an ill liquidity premium and whether they want to admit or not, the opacity of the product is the biggest selling point. because you don't have to market the market, it helps with the embarrassment. >> isn't that a problem? >> i think eventually it will be a problem. >> by the way, this is your business. >> right >> you're putting your clients' money in a lot of these -- >> i think if you're very selective, you're not going it see the writedowns the whole story a valuation meltdown is not right, for the higher quality companies, you want to own them and keep them what we want our clients to do now is to move, to dividend stocks and dividend growers to

find companies where their payouts will be appreciation and dividends. and a lot of companies you can identify that. >> your high net worth clients these days, what percentage of their portfolio are you suggesting they get into the private market >> the private market -- >> it will be 20%. and at least half of that in private equity it is not the megafunds. it is the niche funds focused on specific areas like healthcare and like international and distribution. >> i'm very skeptical of getting individual investors involved in the privateequity market now i think that would have made it a lot more sense 20 years ago and people on the private equity business are running all around washington to get special exemptions for retail investors. i think -- >> moving in that direction? >> i agree with that i think for ultra high net worth investors, it makes complete sense. for my dad, it would not make that much sense. i agree with that. i think the whole idea it is a blanket over -- too expensive, i think it is a blanket statement,

it is not right. >> dave, thank you. >> pleasure. >> jason will stick around, thank you. >> new york stock exchange, jim cramer joins us now. what are the things that you would talk about to help everybody that listens to you to make money is it the mergers? is it bloomberg's entry into the race, china, what is it today for you? >> i think we have to go back to china. i think right now the chinese press is trying to say, look, maybe there is some give on intellectual property. i think aiwa from that, the white house is toughening its line they're saying, listen, we're not the ones saying there is good planning after phase one. we're not the ones saying there is phase one, that there has to be something done monetarily before you can get to the table to start talking intellectual property we can have all the mergers we want we can certainly have mayor bloomberg getting in the race, but what we don't have is the commitment ahead of time that the president wants before he sits down. the president feels like he has a winning hand right now the mainstream media does not. the mainstream media is not

dealing with the deceleration of the chinese economy and the acceleration of the consumer economy here >> and that doesn't even take into account what happened in hong kong either, jim. we may be, i don't know, are we giving enough importance to what could be a sea change in that -- that affects 1.5 billion people. i don't know, you know >> i do think that what is happening is that the hand of xi keeps weakening. but the mainstream media keeps talk about it getting stronger i think trump knows that that's not the case trade average -- all this trade advocates know it is not the case if you saw mnuchin come out and say i'm finished with these guys, what would happen is we would see a real deal. we have to walk away to get a real deal. that's the only way to do it we have to walk away right now, i've got to tell you, i really don't think china is doing well at all economically and we are but the mainstream media says that xi is a great chinese man, with great democratic leanings,

member of the wto, and we have a mad man as president that's pretty much what i see. >> that happens to the market if president trump does walk away >> i don't think it matters. i think that all it does is strengthen his hand. >> does the market waiver in the meantime, like, whoa, what just happened >> maybe a little bit. but i think with the mainstream media has this thing so wrong that it is just crazy -- look, i don't care it only helps trump's hand too i think that president xi must be with the mainstream media meantime, now you have bloomberg in the race. it is so -- are the democrats in disarray i think that's what they should be thinking about. and they should be thinking about putting up more coal plants and what it means to -- trump can't talk about coal, what it means to the average american, china is the enemy china is the enemy except for the mainstream media this loves xi, like he's

washington the guy say come communist dictator >> jim, thanks we will see you in a couple of minutes. don't miss "mad money" tonight with special guest ilungncdi the ceo of bristol-myers and pvh stay tuned we're coming right back. always three steps ahead. six steps ahead. sixteen. so many steps. you done? a million steps ahead. servicenow. works for you.

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our guest host today is jason trenor quick thoughts on what you do now. >> quick thoughts, in my opinion, this move toward value is real. it is more sustainable and global growth expectations bottomed we like financials in particular. >> thank you that does it for us today. right now it is time for "squawk on the street. ♪ ♪ good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. solid futures to start a holiday shortened week, thanks to china trade headlines, $60 billion in formerly announc