Holds, ten year yield, getting in the area of 9 the road map begins with the trade rally. Future points to new record, china says it has agreed to hold back tariffs plus, takeover offer, getting my latest reporting on xeroxs bear hug of hp. Warren proposes a sitdown with the microsoft founder we will begin with futures fresh hopes of a trade agreement, giving stocks a boost. Chinas commerce says the u. S. Have agree ed to phase out the tariffs imposed during the trade war. They dont actually say a deal has been reached multiple reports from this one on qualcomm. Yeah, i dont trust them. Yesterday, they said the talks were elayed. Honestly, these people were members of the peoples republic it might as well be run by the 8th army can i tell you what might matter they signed a death warrant for someone who pushed fentanyl to us and two life sentences for their colleagues they did a twoyear stay of execution on the leader of this. But this is what President Trump is waiting for far more important than any nonsense about tariffs this is what they want they want a signal that someone will be executed for fentanyl. They got it. That is be ig. Why is that that is clearly not focus of the reporting this morning no, because everybody is wrong, except for me carl did i really say that . I actually said that you didnt just think it, jim. Lets understand each other that the only thing at the con they immediately came out. I absolutely love it they said it has nothing to do with trade talks they have not been tolerant on drug dealers this the a guy hugh high bing and the United States limited itself the United Nations has done everything it can to try to find these guys it is completely involved with the trade talks. The Chinese Government has had total tolerance for selling fentanyl when i deal with my sources in the white house, they have been waiting for this not roll back tax. Its an epidemic. Right this is what President Trump cares about. Obviously not just fentanyl but its making its way into all sorts of things. This was the Pre Condition to talks. Thats what matters. And for the other things, when everything actually happens. I meant took as air gone as i was. I didnt mean to be ar gant in that no my contacts at the white house say, at last because President Trump cares passionately about overdose and passionately about drug use. And he didnt want to sit down until this of the seven deadly since was agreed to. He wanted to see these kind of prosecutions now we can go forward and the president will play ball he was not going to play ball. By play ball o, you mean. Willing to talk about, not rolling off, staying not rolling off. So december 15th doesnt come off but we dont add anymore new york the president does not want to have the chinese control the narrative because it will break down, but he was, i understand, very happy about the National Archives control commission not just being involved with sending us bad fentanyl, which is causing, as david said, a huge number of deaths in this country it was a very good Pre Condition an this was important. So now there can be a real discussion its interesting it came after yesterdays leak that there may not be or there will be a delay. You know, this has been something that the president has been saying over and over and over again and pe tore navarro said over and over and over again. When are they going to crack down on fentanyl when they do, well cooperate. You think we will get a signing in december, whether in sweden or yes, it can now go forward, because this was what the white house was really waiting for i know its under played in this country. When you seek with them, this fentanyl epidemic is something that both parties share. And a hospital of people know where that fentanyl comes from, which is china, the military knows. Everybody knows, so this is very positive. Well see if this warnings run a new record its justified, david. Yeah, i want to follow up on our stories from yesterday, followed by xerox. Actually we can now give you terms involved of what the letter contained with the offer that was sent to hp on tuesday we did get a statement from hp yesterday, which ill share in a minute but lets get to the offer, itself because people posted the situation indicate it was for 22 for each hpq share 17 of which would be in cash. And. 1 learn the xerox shares for the remaining. So you are talking roughly a 77 of cash, the remainder in examinxerox stock, contrasted with hpq which was lows billion in this potential bid made its way into the marketplace. They are expecting cost synergies, by the way, given the cash and stock component, what you would end up with at the end is a new company that would be 48 owned by current Hewlett Packard shareholders, 52 by examin xerox. They will play up the fact they are the right ones to deliver in expected cost synergies and would have the effect. By the way, their Management Team is comprised by a lot exhp erz, including ceo johnballan teen that i John Ballentine they believed it would be Investment Grade it would be five times leverage given, of course, the death they would be adding to buy what would be roughly 23 billion or so in stock. These 77 component that is cash, perhaps a bit more than that the price, itself, 22, although, interesting, these examinxerox by all shareholder bases by the way, there is a decent overlap in the shareholder bases of both companies. Not to be overlooked or is it in part some people find xerox can find itself on the takeover bid from hp despite the huge relative size unclear, they were both up that obviously, does have the impact of rising the actual price being offered given. 137 xerox shares with the exchange of 23 of hp they do expect to delever very quickly. Talking about the cash flow, generating characteristics of this combined company, being able to take leverage down from what would be five times at close to as little as three times within 24 months so we can tell you at this point that is according to my sources the offer delivered id to hp. What did hp say about it they put out a weird statement. It wasnt weird i worked on this. It was weird . Yes, i worked on it it was a heisman what i will say, it was out of character in a typical takeover situation it was not. There was no animosity being written by a philosopher major rather than somebody focused on business i never took philosophy. That said, they said most recently they received a proposal transmitted from the company. They went on to say they have a record of taking action. If there is a better path forward, they will continue with discipline and an eye toward what is in the interest of all their shareholders january 28 they made a bid, it look liked like a it looked like a fung ible bid. My sources indicate while they are certainly opened to anything share holder, they put together a plan, i dont know if you got a chance at the big analyst meeting. He wants a chance to be able to put the plan through i dont blame him one bit. The plan, by the way, is much more getting away from printers than it is to go deeper into printers much more digitization play. Hardware digitization. That is not what you get if you merge with xerox they are kind of dont want to do in terms of strategy. Yoeb nobody denies there wouldnt be substantial synergies. No, there would be substantial certainly ifs, this is a company that most recently at its lows. They are talking about that price at 22 rowley at 29 premium for the shares over you know repeat fairly recent periods. So not an insignificant premium was was indicated to me yesterday, real significant. We can debate whether its enough certainly to move the ball here. What i will tell you is i do sense, jim, that there is great fervor on the xerox side to try to make this happen. January t january 24th is the close for the directors. All of them are up will they move to a proxy fight . I cant dismiss it as a possibility. Though there are shareholders and deep forget there is overlap. That does prove to be an important part of the strategic merits of these kind of deals and how they will be considered. Whether or not the shareholders would agree at 22. Very much unclear. The statement and things ive learned indicate to me there is zero animosity, therefore would surprise me for a proxy fight. I think they want to have a shot here. You think hewlett pack orlando would say, just let us buy you . Yes i think at a certain point its not in the plan, though. We ought to give mr. Lawyuris he took over because of a Family Health issue i think if they had not weighed out the plan david, if they had done this right wendy on said hes done or is going to leave. But will lauris has a fine plan. They do have a highly confident letter from citi to finance the deal it wouldnt be a lot of debt as we said. Although the cash flow combination. Theyre not an elliot kind of nielsen thing. I still say that was a weird statement. It was weird. You agree now it was weird . No, its not weird in the context. Ive covered about a million mna situations ive covered when we return, this one, temperatures not as weird once you start realizing they were trying not to be angry. Oh, thats a good point. We should take a break and make some money. We have a podcast, too when we come back, cramers mad dash and the opening bell. Plus, well get the big movers of the morning there is a lot as we said earlier, qualcomm, roku, look for record highs as the s p industrials have posted their first record high in more than a year dow futures up 141 when you look at the world, what do you see . We see patterns. Relationships. When you use location technology, you can see where things happen, before they happen. With esri location technology, you can see what others cant. All right. 15 minutes before we get started with trading at the Stock Exchange time to fit in a mad dash. We will have a lot of earnings to cover in terms of at least the way stocks perform lets get to qualcomm early here it is going to be a stellar performance. The analysts are not ready for the quarter we expected three or four quarters from now. You got 230 5g of devices. Remember our friend christiano among the scientists engineer at qualcomm, hes talking about the idea that this is, please dont think of this as a cell phone, think about this as everything qualcomm owns this, david they violated the first rule of fight club they talked about apple. They did . They talked about apple i did sit down a couple months ago with hans vesberg from verizon and we spoke as you know, jim, about the idea of 5g in the enterprise, even though thats not necessarily a 2020 event. Right. Its coming its programs much more substantial than everybodys cell phone to be able to get video downloads real quick. I worry about a cable company. The internet is already talking about this were seeing it. This is something so amazing. They brought back 22 of the company, the basis 65. 65 now, thats how you do a buy back right when everyone was giving up, they were in there buying because they had conviction, like john fort has an interview with steve mullencaugh hauwei is not included in the numbers. Wouldnt you see if they were allowed . That would be amaze zplg we do have important business in china. They made good deals with the chinese. China is moving quickly very fast faster than us yes, they are we are way behind. Were not way behind. Career leapfrogging quick. They can say were putting this here. Oh, ototalitarian dictatorship that executes people because they push fentanyl here. No rule of law there. There is a rule of law. Just like there was when stalin ran the soviet union lets see what they say all right. We got a lot more on squawk on the street as we get down to the opening bell whether its dish, fox, discovery. Those are all ours. I know. What do you got . Ralph lauren. There you go, ralph lauren, too. Roku. I got roku roku we are back after there new york state is building for the future of your business. This we are back after this to infrastructure, were creating state of the art, 21st century transportation hubs, constructing new bridges, bringing highspeed internet to every corner of the state, and committing to lowcost clean energy. With infrastructure built for the future, the companies of tomorrow can thrive here today. See your future at esd. Ny. Gov. Or trips to mars. No commission. Delivery drones, or the latest phones. No commission. No matter what you trade, at fidelity youll pay no commission for online u. S. Equity trades. High protein. Low sugar. Tastes great high protein. Low sugar. So good high protein. Low sugar. Mmmm, birthday cake pure protein bars. Try lemon cake. Futures suggest record highs across the board as the s p is on track for a fifth weekly gain on these headlines that the chinese, at least, say the u. S. And china have agreed to remove tariffs in phases. The opening bell less than ten minutes away more exciting than than getting a lexus. Giving one. This is unbelievable it really is. The lexus december to rembember sales event lease the 2020 rx 350 all wheel drive for 419 a month for 27 months. Experience amazing at your lexus dealer. You are watching the opening bell and sixandahalf minutes busy thursday morning. An interesting day, dealbook yesterday, sorkin had so much news, bill gates really got everyones attention when he talked about senator Elizabeth Warrens wealth tax. Ive paid over 10 billion in taxes. Ive paid more than anyone in taxes. But i, you know, im glad to have if i had to pay 20 billion, its fine but, you know when you say i should pa i 100 billion, then im starting to do a little math about what i have left over. Sorry. Im just kidding so you really want the incentive system to be there you can go a long ways without threatening that have you ever ever talked to Elizabeth Warren about this before i have not. Would you would you want to . Im not sure how open minded she is or that shed even be willing to sit down with somebody you know who has large amounts of money senator warren then offered to sit down with gates tweeting quote, im always happy to meet with people. Even if we have different views. Bill gate, if we get the chance, id thereof to explain exactly how much youd pay under my wealth tax i promise its not 100 million. Didnt commit to supporting her or the president interesting conversation he was trending open twitter last night. You know what this kind of reminds me of a johnny cashson debate Johnny Carson was the highest paid person in america 70 bracket. Often questioned what the he was working so hard for he was in a 70 bracket obvious, thats income tax well would say this is wealth tax. There is a level people get to where they debate what they are doing. Elizabeth warren yesterday one time only maybe. Look, i think its worth discussing now, there has been tremendous research about whether it really works and im going to go back to Lee Cooperman who has done in a very rigorous fashion whether it really produces more for the government than traditional taxes. Yeah. I just think that theres got to be a level of where its not. I always feel senator warren is a little too much antipathy. She is. There is nothing wrong with being more gentle. What would the tax be oempb other than assessing peoples wealth, you are talking things far beyond their income or their savings. Right you are talking about their planes, their wine, their boats, houses and paintings, their art. It seems virtually impossible to sort of figure out without getting into every sing him the irs would become your best friend, they would be living in your house you can go back to Capital Gains and dividend tax. Larry kudlow, capital adviser, you want a low hanging fruit, you double both meanwhile. Rich people has been the single most Charitable Organization the world has ever seen period. Look, these billionaires, bloomberg. She should be going over the billionaires who havent given a sometime shaming bezos for spending money on space, where gates said he can have it, malnutrition is more important heels got his priorities. I dont know, its about time, it can be the best for the human race for all i know. Climate is really, really important. Really important. Mark benoff has been talking about the tree, if we planted a trillion trees, we would be able to reverse global warming. Thats true how many a trillion . Just a trillion to do it. Dont laugh 30 cents per tree. 300 Million Trees in nigeria in a very short amount of time. Im giving a lot of mo into plant trees. The numbers sound daunting. You can do it. The priorities lets move on here. Is someone . Your ear saying move on . They are. We will have plenty of time after Dimon Cooperman lazry this week on our air. Washington post reports that a sources close to her Campaign Love it. Love that people are coming on our cnbc and weeping over her she has a soft spot for dimon, who by the way hired more veterans than anyone in our country other than starbucks and Elizabeth Warren has never been that interested in the technical breakout of 130, but i am. Its always worth pointing out that at this point in 2004 or 3, iowa, this number oh god, you are doing that again. It was polling at 4 and howard dean. David, its called a horse race. Four years ago it was kristis tee, john kasich, ben carson, Carley Fiorina i used to love tponies, its the first term. How you will address income and equality in this country, its an enormous issue whether or not Elizabeth Warren will be the nominee, its i may have to have senator warren debate jamie dimon in my conference. That would be good. At my conference, a mythical conference at my alma mater, id like to have a whole day on capitalism jamie dimon went there okay done hes a proud jumbo. Done. Lets do roku here. Shires getting hammered. The beat on the top and bottom lime losses nearly tripled that of a year ago sending more efforts to get more subs we will talk to anthony wood on squawk alley later on this morning. This got hit pretty hard. He said look, point blank, he used, this was all in the square by the way he said look, 2020 growth rates are liable to be lower than 2019 you cant have a stock that has that, expected to go up. He, by the way, is so under stated that he will not reverse the direction of roku stock. I am