tv Worldwide Exchange CNBC November 6, 2017 5:00am-6:00am EST
a developing story billionaire saudi prince al waleed bin talil has been arrested in riyadh. deal or no deal. unsolicited offer for qualcomm meantime, sprint and t-mobile are ending merger talks. plus, president trump begins a major five country tour in asia we'll bring you the highlights it's monday, november 6th, 2017. "worldwide exchange" begins right now. ♪ ♪ good morning and welcome to
"worldwide exchange" here on a monday on cnbc i'm sara eisen. >> i'm wilfred frost >> let's go to the markets and show you how the markets are shaping up especially the nasdaq. that was a standout. up a full percent after the dow and the s&p also closed higher futures are under a slight bit of pressure. s&p down 3, nasdaq down 3 as well as for the 10-year treasury note yield we come off a week with a pretty solid jobs report though wages weren't moving higher enough and an announcement of a new fed chairman and the ten-year yield still low. >> the ten-year yield went down. it ended from 2.43 to 2.33. >> better data on the u.s. economy. >> that's why financials were the worst performing sector. tech was the best. let's have a look at markets around the world asian markets this morning are a little bit mixed performance as
you can see hong kong slightly lower. shanghai and japan doing well. european trade for you, another great week for the dax both france and germany ended at record closes on friday. germany particularly outperforming. it was up 2% as you can see this morning, right across the screen nothing too significant. >> oil was strong last week. let's check in on the broader market there we saw 3% moves for wti and brent oil. you're seeing those prices higher again this morning. 55.89 wti is up half a percent brent up half a percent, 62.39 as for the u.s. dollar, watching this one has basically been tracking yields although displaying a bit of strength especially against the japanese yen. 114.13 that pair is stronger but fractional news. against the euro, 116. staying above that key level
the pound is firmer up almost a quarter of a percent on the flip side, maybe the stronger u.s. dollar are a bit higher 12.71. now to corporate news. qualcomm is going to have an offer today. >> according to cnbc's david favor broadcom is preparing to make an offer for qualcomm up to $70 a share. it would be comprised of 75% in cash it will combine two of the largest makers of wireless communications chips creating a $200 billion company that's the biggest technology acquisition ever broadcom says it plans to move its headquarters from singapore to the u.s. encouraged by republican tax efforts qualcomm is trying to close the
pending $38 billion acquisition of semiconductors. something that would have to be approved they're both major chip suppliers to phone makers such as apple, lg and this would give them a much more lucrative line of business and help them compete with the other major supplier in the market, intel. qualcomm up 2.7%, broadcom down .3 of a percent, guys >> raises some questions about the return of the hostile deal landon, thank you. also antitrust concerns whether this would fly by the regulators qualcomm itself has been locked in a long-running battle with apple and that's helped broadcom especially last week. >> it's not something apple would like to see happen either i would imagine.
>> gives them more power. sprint and t-mobile have ended merger talks this is the latest attempt by the two to combine meantime, softbank is going to increase its stake sprint and altice introducing a new multi-year deal. >> a good move they closed early and then they did rally on friday. >> there were rumors that it was falling apart, coming together. >> now we're back down again q2 operating profits softbank's financials came out after it closed in the regular session in japanese trades it was down 2.6%. in global news billionaire saudi prince has been arrested in a corruption crackdown. story of the weekend hadley gamble joins us from riyadh with an update and any
possible explanation to all of this, hadley >> reporter: good morning, guys. essentially what we know right now is his royal highness has been charged with corruption, money laundering and abuse of power. the saudi authorities do stress this is an ongoing investigation and that all of the parties involved have access to legal counsel, they have said that they are freezing all of the funds that they suspect may have been involved in any wrongdoing. now of course it is all part of a broader picture for the crown prince the son of the king. he's sending a clear message that this type of behavior will not be tolerated going forward and no one is above the law. guys >> hadley, is his ability to carry out this kind of purge enhanced or hurt by the fact he is so young? >> i think you have to look at this as a broader picture.
what we've been seeing coming from the king and mbs is a clear message that he will be leading the country forward in terms of the economic vision, national defense and foreign policy as well this seems to further solidify the power base and the willingness of the king to get behind what he wants to do what we saw with the major investment conference in riyadh. he knows he has to get foreign investment in the country if he wants to turn this around. doing that it does require that the country becomes transparent and they have to take on corruption because saudi society is a top down society, he's going to have to do that. >> we've seen this sort of renewed friendship between the trump administration and the saudis there's this unannounced trip from jared kushner what do we know about the relationship here and what it means for the u.s. >> reporter: well, absolutely, sara what we know is from the crown
prince himself he's a very big fan of the trump administration he understands he needs the united states. much more significant relationship than the one he had under alt years with barack obama. this is a relationship that doesn't have to do with oil and investment, it has to do with for policy, foreign policy narratives saudis versus iran in this is something the saudis have been quite pleased with they're happy to work with the u.s. on national policy. at the same time we've also seen them reaching out to new partners with russia, for example. they understand the economic investments that they can work that relationship to their advantage, not when it just comes to oil but also when it comes to what happens next for the situation in syria this is a saudi foreign policy and a saudi foreign government that's quite savvy and has moved forward in the last two years alone not just with social and
economic policies but also with their move to have a stronger foreign policy. >> i'll be interested in hearing from andrew l. sorkin who was interviewed president al alid. >> the economy minister one of the ones being purged. what happens to kingdom holdings, stakes in twitter. will they be moved or sold. >> he's known for his huge stakes in citigroup and twitter. >> up half a percent
still to come this morning, stocks to watch including reports cvs and aetna working to strike a group rrcyhicuen ts morning, not much going on back in a couple minutes cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. the markets change... at t. rowe price... our disciplined approach remains.
good morning, kayla. >> reporter: good morning, wilfred. the president's five country 12-day tour of asia is underway. he's been rallying the troops, strat guid guising on the golf links. on trade, japan is just the latest mark in this ongoing attack over trade deficits the u.s. goods deficit with japan was $69 billion last year. that's how the administration is measuring its success here the rebalancing strategy has laid out pretty clear by the president. he wants his asian counterparts to buy more u.s. goods he praised companies like toyota and denso that have pledged new american factories he stressed the need for japan to buy more cars that are manufactured in the u.s. at an afternoon summit with prime minister shinzo abe he talked about purchases of military equipment also. >> the prime minister of japan
is going to be purchasing massive amounts of military equipment, as he should. and we make the best military equipment by far he'll be purchasing it from the u. states. whether it's the f-35, total stealth or missiles of many different kinds. it's a lot of jobs for us and a lot of safety for japan. >> the safety in question, of course, is that when it comes to north korea and the continued missile tests out of pyongyang to that effect here's what the u.s. has been doing. the u.s. treasury department cut off a chinese bank because of processing of financial transactions related to north korea. a couple weeks ago the state department put sanctions on a hand full of north korean diplomats and agencies the president said that a decision will come from the white house about potentially
naming north korea as an official state sponsor of terror, quote, soon. that is according to the president over the weekend people here in south korea where we are and where the president will arrive in the morning, they're nervous. they want assurances from the president not only about the situation in north korea, which is just about an hour away from where we're standing right here, but also about trade and economic security in this country. senior administration officials say that the strategy isn't to comingle those two but that's what we've seen the president do. >> what's been the reaction, kayla? it's one thing to taut america first all through the hartland of america, but how do they react to him in japan, korea, and later in china they're very proud of the fact that they're major marketing hubs and selling to the u.s. without having to produce everything there >> reporter: well, sara, a lot of these countries have become experts in trump public relations. you saw in japan today, talking
up some of the investments it has made the toyota and mazda factories the president said, let me shake your hand. that's greatstuff. in south korea you're going to hear them talk about how they financed the majority of u.s. camp humphries he's going to visit. he's been criticizing the south koreans about that you've seen eye rolls and shrugs, but generally they know if they can do some of these one-off deals, some procurements, then maybe they can keep tariffs or longer term, more permanent strategies at bay. >> what about the personal relationship between president trump and shinzo abe that's closely watched it's a preview for what we might see between the president and xi jinping to come. >> reporter: yes, certainly that is right two administrations that have consolidated power just in recent weeks
the president of the united states and prime minister abe have a good relationship it's something that both countries talk about they have met on the sidelines of multiple summits. prime minister abe came to mar-a-lago and they've had a number of phone calls. people have described it as a bromance they have a close relationship the relationship with president xi is a little tougher and the relationship with president moon is a nascent one he is the last of those three leaders to come into power we'll see how it all plays out. >> kayla, thank you very much for that report and of course the trade deficit with china also significantly larger. >> bigger. the biggest. >> another topic which will come up. we're also following the developing story for you out of sutherland springs, texas. a shooting at a rural texas church leaving at least 26 people dead yesterday. officials say about 20 others are inyurd this morning. nbc's jay gray joins us live
from the scene with an update. jay, good morning. what can you tell us >> reporter: hey, good morning, sara the investigation continuing through the night. police still looking for a motive we know that they've searched the suspect's car and his home to this point they've said nothing publicly about how and why this was carried out carried out by devin patrick kelley, a 26-year-old who was discharged from the air force after being convicted of abusing his wife and child his wife at the time he's since divorced. we know that he was met by return gunfire by a resident who lived near the church behind me, chased down and eventually died inside his car president trump, of course, spoke about this during his stop in japan let's listen to what he had to say. >> we join hands we lock arms and through the tears and through the sadness we
stand strong, oh, so strong. >> reporter: when pushed whether this would up the anti about gun control, the president said he did not believe this was a gun issue. he talked about the resident returning fire and saving lives, he said this was more of a mental health issue. >> did he haevastating tragedy. jay gray, thank you so much. wilbur ross is in london this morngni he'll be joining us live to answer some questions next i love you, basement guest bathroom.
welcome back to "worldwide exchange." u.s. commerce secretary is wilbur ross is sitting down with jeff cut more. over to you. >> reporter: wilfred, thank you very much for that mr. secretary, thank you so much for giving cnbc this time. >> glad to be on. >> let me start off straightaway by asking you to deal with these allegations that you concealed your position in navigator from the u.s. committee that had to ratify you as commerce secretary. >> right well, that's totally wrong it was disclosed on the form 278, which is the financial disclosure form in my case three times, 10.14.1.3, 10.15.1.3 and
22.214.171.124 as well as on the public website of the office of government ethics, namely oge.gov so it's totally incorrect. >> so when senator blumenthal said you misled the committee by not revealing navigator's relationship with the russian company sibur, you completely reject that allegation >> well, that's a different question my obligation is to disclose companies in which i'm an officer, a director or an investor i am neither an officer, nor a director nor an investor in sibur. in fact, i've never met them, don't know the people, have nothing to do with the negotiation of the charter
arrangement. the only commercial arrangement between navigator and sibur is a charter arrangement. that charter arrangement was madewhen sibur was not under sanctions and, frankly, sibur is not under sanctions to this very day. so, in fact, there's nothing wrong with navigator having a commercial relationship with sibur. >> are you concerned, mr. secretary, that in people's minds they may conflate the ongoing mueller investigation into links with russia so this revelation that you had holdings in a company that has dealings with a russian business and they weren't disclosed until only now with the release of the paradise papers. >> but that's not true the sibur relationship was known before there's nothing in the paradise papers that's unique about the charter arrangement with sibur
>> do you think it looks good though there will be those who say president trump campaigned on a clean the swamp campaign -- >> right. >> -- in washington and now we're seeing revelations about a member of the administration that on the face of it don't prove you did anything wrong but may suggest they don't look too good >> i don't think they should suggest anything a company not under sanction is just like any other company, period it was a normal commercial relationship and one that i had nothing to do with the creation of it. i had nothing to do with the negotiations and do not know the shareholders that were apparently sanctioned at some later point in time. >> reporter: mr. bloom men that will, senator bloom men that will suggested there should be a more widespread investigation
into your other holdings would you be happy to see that take place is there anything else that you feel you should be disclosing at this stage that may come out subsequently >> well, you say anything else there is nothing that wasn't disclosed so the idea that i might add something new is a false premise. these holdings in navigator was disclosed. >> reporter: you feel there was nothing remiss in terms of your approval process in the senate commerce committee >> i don't think so. i felt quite thoroughly x-rayed. >> the other issue i think that this story throws up in some way is the role of off shore tax centers and the use of them. again, these papers have revealed a number of high profile names, including the queen who have been involved with these tax shelters.
given that you are yo' pushing through or the administration is pushing through a tax package that continues to allow these shelters to exist but will seek to reduce taxation in some areas of the corporate landscape, would it perhaps be better for the administration now to go after some of these tax shelters and the way that they're used by companies and then maybe we could all pay less tax >> well, several things. cutting the corporate tax rate and cutting the flow through tax rates will reduce people's motivation to use any of these other devices, but as long as that situation is totally permissible, you'll notice even in these papers there was no suggestion there was any violation of any u.s. law. well, i think a taxpayer's obligation is to obey the law,
not to invent strictures beyond it. >> you've been a beneficiary of these off shore structures in the past you now wear a different hat given where you sit now, would it be in the best interests of the american people and others around the world that we did look at a way of reforming the use of these structures where they allow companies to avoid tax? >> well, that's certainly -- well, it isn't so much avoiding tax. eventually you pay tax when you sell things anyway, i believe, so it isn't that it's a question of timing and formality. but the main thing is that should be part of overall tax policy consideration i don't think we've seen enough detail of what came out of the republican caucus, at least i have not, to know whether they deal with that topic or they don't. >> just to underline this, and i don't want to spend too much more time on it because i know you've got a trip to china coming up that i'd like to ask you about.
did you ever as this news overnight was released on the paradise papers, did you ever consider your position in the administration and ask yourself whether you would continue in this role? >> no. that's a silly question. there was nothing wrong with anything that was done >> you don't feel there was any issue of perception and people's understanding of what your role might be >> no, i don't think so, because the navigator holdings were disclosed. the oge considered them, the office of government ethics, and declared that they were not something that had to be divested. >> and you've made it clear you do not know ginardi, kim ch henko or karen shankoff. >> no, i have no idea of any of them >> reporter: you head off here to china what are you seeking to gain from this trip >> well, the trip is not only a trade trip i happen to be heading the trade
mission of some 29 american companies going over there, and we hope that at least some of them will get good, finite economic deliverables as a result of the trip there are also a myriad of other discussions the two presidents will be having, not the least of which is north korea this is a trip that intends to cover not just trade, although that's my part of it, but all sorts of other issues. >> japan is a friend and yet we saw in the press conference between prime minister abe and the president some tough language around the trading relationship, perhaps putting japan on the back foot somewhat. is the language only going to get tougher as the president continues his tour to other asian countries, including china, which the u.s. believes it has an unfair trading relationship with? >> well, we have deficits with
many of those countries, particularly with japan and with china. the president has made no secret that he intends to reduce our trade deficits with those parties. our preference is to have a combination of two things. one is increase our sales to them, our export sales to them and, second, to have them stop violative practices. we have brought a very large number of trade cases against 35 countries around the world that are in effect right now. enforcement is a very important part of the administration strategy we think that even our friendly nations should live by the rules, and if they don't we will intend to enforce things against them we brought 61% more trade cases so far this year than the prior
administration had in the year to date the year before. >> is there any risk that the chinese seek to trade off assistance on north korea for a lighter touch in terms of these trade issues >> well, i can't read what's in the chinese mind so i don't know, but they know very well that both topics are of great importance to the united states. >> why is it important now for you to get progress on these areas with asian countries >> it's not just asian countries, it's with the whole world. we don't think it's inherent in a global trading system that one country, namely the u.s., absorbs in its deficit the cumulative trade surplus of the entire rest of the world and we especially don't think that to the degree that that's due to subsidies and other illicit practices, that's not a good reason to have a deficit
nor is it a good reason to have a deficit because other countries are so protectionist your eu, china, and japan all talk free trade and they all practice protectionism let me givean example. automotive is the largest product category of our trade deficit. our tariff on autos is 2 1/2%. 2.5% eu's is 10% and china is 25% and in some cases a bit more that's not a level playing field. and it's not a necessary playing field and it's the kind of thing that we feel needs to be rethought. >> mr. secretary, there were developments in saudi arabia through the last 24 hours. we've seen significant arrests of key princes, including prince
al waleed who has significant stakes in american companies are you concerned that this process may lead to destabilization in the saudi regime and the markets as we fixate on what happens to prince al waleed in that process. >> i'm not intimate enough in the details to have a very well-informed opinion. i do think that saudi arabia has become a very good friend of the united states. they've been very -- we've been very much supportive mutually. i was part of the big trip that went over there some weeks ago with very good results and it helped unify much of the muslim world with our campaign against parties who would do us harm so anything that interferes with that wouldn't be good, but i
can't comment on their internal affairs. >> but at this stage you are not concerned and the administration is not concerned about the developments they see? >> i'm not the administration spokesperson on saudi arabia that's much more the department of state and defense >> you have a lot of balls in the air at the moment, if i might put it in that way you're juggling the nafta negotiations as an administration you're focused on tax you are now heading to asia to see if you can get movement on the trading relationships there. and yet i think some are concerned that this government is taking on too many issues at the same time and failing to resolve the ones that it goes into battle over i mean, when do we get a tax deal when do we get a nafta deal? when do we get better relations with china, japan, and other countries with an imbalance to the u.s. >> first of all, i think we already have improved relationships with japan and
with china china the last two sanctions against north korea voted in favor of them in the u.n they could have vetoed them. we believe that china is enforcing the sanctions much better than they had been so i don't think it's a correct statement that our trade -- that our relations haven't gotten better i just don't think that's correct. meanwhi meanwhile, the president has canceled over 800 rules that have been implemented by the obama administration there's barely a ceo who comes to my office that isn't thrilled with the regulatory relief i believe a good portion of the ee c reason the economy has gotten better is because of regulatory relief there's more to come in the way
of regulatory relief those are things and that's a promise he was able to deliver on through executive orders and he did things that require cooperation of the congress he obviously does not have total control over so i don't think you can blame him when congress fails to act on something. >> mr. secretary, my last question, and i just want to circle back to where we started here because there will be people watching who will have some doubts in their mind still as they read new hampshire headlines saying wilbur ross has connections to president putin that need investigating. here's an opportunity just to send a message to those people who see this story in that light. >> well, it's a very unfair characterization of it i don't know the people that were shareholders in sibur sibur was never subject to sanctions to this very ay. there's nothing wrong with a
company that made the decision to enter into charters with them before i was even on the board there was nothing wrong with it at all i think it's just an example of the press trying to find anything they can however remote or silly to attack the president and somehow link him to russia this is nonsense >> mr. secretary, thank you very much for joining us on cnbc and we'll wrap it up there let me send it back to you guys in new york. >> jeff, thank you very muchfo that wide ranging conversation thank you also to the secretary. a resolute response from secretary ross there. >> and the first that we've heard since this is on all the front pages or at least in the a sections of the newspaper this morning saying it was fully disclosed, my stake in navigator holdings, and i did nothing wrong. >> extended that and said if navigator had dealt with sibur and sibur wasnever on a
sanctions list anyway. interesting response from questions on when we might get a nafta renegotiation, when we might see tax reform, he was very clear saying, look, regulatory relief has started. tax reform rests on congress that's not the president's fault if it hasn't arrived yet. >> he accused the e.u. of practicing trade protectionism totally different tone from this administration they've made it very clear about how they feel about trade deficits and the united states. >> indeed. as kayla pointed out earlier, the comments came earlier. secretary ross will be joining the president on that leg of the asia tour. still ahead on the show, today's top stories including reports of a possible $100 billion hostile takeover u.s. equity futures this morning pointing to a softer start dow futures down 16. it's early, s&p down 4, nasdaq down 5 after another strong week for the markets. sd finished up another
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good morning welcome back to "worldwide exchange." some big stories we're following for you. broadcom reportedly making an offer to qualcomm as early as today. david favor reporting the bid could be as much as $70 a share in cash and stocks that would equal more than $103 billion. >> we'll be watching that one for sure. >> and what qualcomm says to it. from what we've heard, they're
not interested. in our deal news, sprint and t-mobile have ended talks. they couldn't come to a mutually agreeable term this was the latest attempt. meantime softbank says it intends to increase its stake in sprint sprint and altice are announcing a multi-year agreement. and in political news this morning, president trump is in tokyo for the start of his asia trip meantime, washington is buzzing about the paradise papers. we just heard from the commerce secretary wilber ross, ama aman javers. >> secretary. >> i'm not on any front pages this morning i'm on your guys's show this morning. we're talking about wilbur ross how just heard from live in london responding to the paradise papers reporting. let me give you a briefing of what it was he was responding
to we'll walk through the details laid out here in the documents that pertain to wilbur ross. these are called the paradise papers another document trove in this case about 7 million documents from a bermuda based law firm called appleby. these documents were sent to a german newspaper they were shared with the international consortium of investigative journalists, also shared some of the documents with nbc news. they provide rare insights into global off shore financial world. more than 120 politicians and royal rulers have been identified in the documents so far. this just broke over the weekend. there is certainly more to come here how it pertains to wilbur ross is this, nbc news reporting yesterday that wilbur ross shares business interests with vladimir putin's immediate family and that ross failed to disclose those interests when being confirmed. ross retains interest in a shipping company called navigator holdings and
navigator, that shipping company, has a business relationship with a russian energy firm, the firm sibur you heard wilbur ross talking about controlled by putin's son-in-law ross said a company not under sanction, simply a normal company. this was a normal commercial relationship he also says he does not know the shareholders involved here, that is the russians who are the key to this story. and he said that these holdings were disclosed and there was nothing wrong with any of this at all so wilbur ross, as you guys just heard, giving a full throated response here to this recording over the weekend that involves his assets and his apparent relationship with a russian company. now the kremlin and social media also in focus. investments in twitter and facebook yuri milner received money from russian government
backed entities. an investor in milner's facebook received money from gas prom we'll have statements from facebook and twitter later in the hour here. it's clear that there's a lot of tentacles in this as investigators start to go through the documents. which rulers and politicians are involved and in business with each other in ways you didn't expect. >> in secretary ross's rebuff there, he listed three forms he disclosed. does that, therefore, absolve him if there was any relationship between navigator and sibur given he did declare that stake he has and puts up to the next round of scrutiny for someone else to investigate that
or does it not >> reporter: i think this is a complicated story. i haven't had a chance to dive into the documents myself yet. i think during the course of the day today people will match up the reporting that was done, the documents themselves and what we just heard moments ago from wilbur ross and see if all of that is in harmony or not. >> yeah. i still think any of these members of the administration are going to be pressed with why they're doing so much business with russian oligarcs. >> you heard wilbur ross there say in his view this is very much just the press -- >> sure. >> -- looking to make any connection they can to russia in order to splash a little mud at the president. you know, this administration feels that this entire russia investigation is unfair, unfounded, unwarranted and should come to a very swift conclusion we'll see whether that happens as well because we also saw some reporting over the weekend from nbc news that apparently mr.
mueller has enough information at this point to file charges if he so chose against mike flynn, the former national security adviser, for activities that he understood if he did do that, that would be the first time we've seen a current or former trump official implicated in this that could be another dramatic step we could see this week. >> eamon, thank you very much. still to come here, your trading day set up as we head to break, let's check on your european markets a little bit of red across the screen down .1 or .2%
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coming up on "worldwide exchange", the heaviest part of earnings season behind us but there are still 40 companies in the s&p 500 reporting this week. we'll get you all the big names you need to be watching after the break. don't go away, "worldwide exchange" will be back what's critical thinking like?
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ee. welcome back to "worldwide exchange." dao futures down 18. joining us is michael bell, global market strategist with jpmorgan coming off of this hot streak in the markets. more record highs day after day and wondering if some of the global developments this weekend do anything to shake confidence. thinking of saudi arabia, some of the tougher talk on trade
from president trump in asia and anything else that might bother you. >> i don't think so, really. i think we need to look through all of the political noise and focus on the strong economic fundamentals the survey data still looks very good whether it's in the u.s. where you have strong consumer confidence, look at the eurozone service pmi is out this morning showed a slight fall but still consistent with pretty broad based and healthy growth in the eurozone we think the fundamental economics are where they should be focused. >> have the valuations caught up with that optimism >> yeah, i think that the growth that you're going to get from european equities is not going to come from valuation expansion. i think the p.e. is going to stay where it is it's going to be driven by greater earnings growth. you've seen that in this earnings season. we've seen for eurozone stocks,
about 16% earnings growth year on year. if you strip out energy, it's more like 11 so that growth picture combined with a continuing fall in the unemployment rate, if you look at the unemployment rate it's been falling pretty rapidly in a straight line. you continue to see the declines of the unemployment rate which we think is possible and you could see unemployment in the eurozone get down to the sort of levels we saw prior to the crisis by about the middle of 2019 if that continues to be the case that you get falling unemployment, it should continue to boost consumer confidence we think it can take equities higher even though valuations don't expand much further. >> i wonder if you would use the same explanation from the united states, the rise in consumer confidence, business and investor confidence if that's fueling gains in the stock market and if so, what's fueling gains in confidence? how do you explain that if you're tuning out the political
noise? >> that's definitely the case. just as in the eurozone you see the strong historic correlation between the european stock market the same is the case in the .s so historically turning points for the s&p 500 have been at least coincident with and sometimes led by the consumer confidence indicator so given that we're not seeing any cause for concern from consumer confidence in the u.s., that leaves us positives still on the outlook for the u.s. equities we see in recent data further improvement in u.s. confidence where that's coming from is continued improvement in the u.s. labor market. you've now got the under employment rate falling very sharply as well and back close to levels we saw prior to the financial crisis so whichever measure you look at, the labor market in the u.s. is pretty tight now and that i think is leading consumers to feel a lot more confident about the outlook and with it is driving equities higher.
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good morning developing story billionaire saudi prince arrested in a corruption crackdown. details straight ahead deal or no deal? broadcom is preparing to make an unsolicited offer for qualcomm that would be the biggest chip deal ever. sprint and t-mobile are ending talks. plus, commerce secretary wilbur ross refuting allegations that he tried to conceal an investment in a company with ties to russia we'll show you what he says this morning right here on cnbc it's monday, november 6th, 2017,
and "squawk box" begins right now. live from new york where business never sleeps, this is "squawk box. 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. everybody is here and back together the u.s. equities markets this morning, we have seen strong gains from all of these markets. the dow, the s&p 500 and the nasdaq closing at record highs once again on friday the dow and the s&p have now racked up eight straight weekly gains in a row guys, any ventures as to how many record closes we've seen for the dow so far this year. >> this year in. >> yeah, this year. >> how many days has there been? >> we're getting towards the end of the year. we must be close to 300 days not quite. >> weekdays. >>ow