Minute right now what we really want to do is talk about the hp xerox. Did we move that up well talk about that now because hp board unanimously rejected that bid from xerox to take over that company its weird it was like a reverse pacman a much Smaller Company buying a much bigger one. 22 a share is not in the best interest of its shareholders and undervalue hp. Letter to xerox ceo they sited the potential impact of outsized debt levels at the combined companys stock. They left the door open with the possibility of acquiring xerox. Looks like it would be a good deal but well take over you it was strange either way combined company same debt . Potentially it was odd when i was reading through the letters. Xerox saying they lined up what they thought could be financing that citi group could eventually get for them that seem like a couple stretches. We havent got the highly confident letter from the drexel days from citi on that. In the meantime, new this morning, fedex ceo fred smith is firing back at the New York Times. They published an expose yesterday. The paper reporting that between 2017 and 2018 fedex managed to cut its tax bill from 1. 5 million to 0 Financial Filings show that fedex paid 2 billion in federal income taxes over the previous decade the times said this all came after fedex and ceo fred smith in particular lobbied heart for the Trump Administration tax cuts the times said that fedex spent less in 2018 than it did in 2017 passing most of the savings on to shareholders through buyback and dividends. Smith challenges the publisher and Business Editor of the times to a public debate the times has yet to respond to smiths challenge. It was very lengthy piece. Read through the entire thing. It was put on the front page and it kind of looked at whats happened with corporations overall but used fred smith and fedex as their vehicle. To me, i dont know the history of the piece, the interesting part was less about fedex actually but about the larger issue i think the piece was effectively illustrating which was that what the authors of article did was look back at every company that had lobbied not just lobbied but every company that had gotten a big tax break and what they did with the money to me what was so interesting the companies that had the biggest tax break oddly enough spent less money on new Capital Investments they hedge that i read through very carefully. Never said what the company spent less than, more than what they spent in 2017, spent less than they had projected in december of 2016 right before it passed they never said what it was versus 2015 and the less there were numbers missing. Not in the oped pages . No. Was the point of view, in your view, a fair description of the state of things . Because the last one which was in the oped section, that was totally this piece was trying to was the point of view anticorporation, greedy no. I think the point was we should expect that, right . No. Its like you can discount it i think the larger point whats freds problem with it then the larger point of the piece you keep saying that. Go and use on Capital Spending was the point of the tax cuts. If the demand warrants additional Capital Spending. Correct. And its in the companys interest companys decision its their decision, only their decision, not people that decide they should be doing it. But the reason why fred smith i believe was called out in particular was because the number got to zero because you can depreciate they did spend. You can spend the first year and did spend a lot on capx. He was one of the most vocal proponents of the tax cut and specifically said if, in fact, we got the tax cut, everybody, across the country would spend a lot of money on Capital Spending. Well see. I think it worked for a couple quarters. Thats what the article pointed out. There was a global slow down obviously. There was a manufacturing slow down the piece also brought up that the Trump Trade War might be part of it. And we see that there was a specter of a recession that now has faded a little bit so all these things factor into what a company does. You cant get blood from a turnip if its time to spend on capital you do it. Just because you say you do things because things change sure. Thats the counterargument then the tax cuts maybe didnt do what they were supposed to do. If it goes into buy backs at least its not staying abroad where it was at least some of it is being repatrioted. No ceo was running around washington saying please give me a tax cut so i can go buy back my shares. Nobody was doing that. I would love to see a debate with fred smith. It would be interesting to watch weigh out. Just in general, you didnt have a problem you wanted a cut to like you want to go to 28 instead of 22 or whatever it was. Right. We needed to be more competitive. We had higher rates. I would have gone with lower tax cuts on corporates 100 . But not this low. You would have paid for it i heard it all before. The point i just know i would have been anowed with the point of view. Without even going into it if you read the piece. Exactly i wont read that paper. I told you that. Andy, i wont read that paper. And i will default to fred smiths position on it against the New York Times. 99 of the time. I have deep respect for fred smith. Im not going to take a position on this particular i thought it was interesting but thought ill tell you that youre missing out. Youre missing out. Maybe the style section as you can tell. I will go back to the point that there were numbers missing. I read the entire piece looking for the numbers missing. They werent in there. I would have liked to see them. I was too busy winning four out of five games. On draft kings . Yes almost back up to 600. Big roller. Four out of five, dude. Separate i want to talk about kaepernick with you. In the meantime, we have other Business News to get to. I really dont want to talk about it. The kap story is a business story. Wework in a bid to become financially stable planning a massive layoffs. The company could announce 4,000 job cuts as early as this week the times saying that number could eventually jump. We knew this was coming. We knew this was coming really this is now just magnitude. Is it 4,000 . Is it 6,000 . 2,000 jobs, ahead of the holidays meaningful. Separately saudi aramco saying its aiming for an evaluation up to 1. 7 trillion, that falling short of the initial 2 trillion targeted by the Saudi Crown PrinceMohammed Bin Salman but it would still be the worlds biggest ipo by valuation and of course theres still the sense that because its going to be a small offering that if the valuation at least stays where it is or goes higher they would be able to sell more on the open market in the u. S. Or london. Fords officially unveiled its latest entry into the electric auto sector with the mustang. Mache they transformed the classic muscle car into a performance suv. Its weird its not a mustang i guess it is if you call it that that doesnt look like a mustang. Bid to redefine the auto makers lineup, ford automotives president will join us live in the 8 00 a. M. Hour to talk about this i was trying to find the said were going to keep talking about the New York Times. We need to talk about the New York Post with Prince Andrew i cant remember what the headline was, but it was about the claim that it couldnt be me because i dont sweat. He had some type of issue with having been in a situation where he was traumatized he was no longer able to sweat so, hes been trying for years thats your defense hes been trying for years to regain his ability to sweat and only now been finally been able to sweat a little bit. So any of those pictures of him, they claim that he was sweating, one of the accusers talked about. Couldnt be true because at that point in his lifehe was not, in fact, able to sweat. You didnt see any of that you just read i didnt see the post cover it had the way they phrase it his interview did not go over well. No. There were some other things Jeffrey Epsteins behavior was unsomething the only thing he admitted to making a mistake was staying there. There was a huge piece. It crashed into a million pieces. It didnt go over well. He took a chance and gave this interview. It was a total p. R. Move actually but he still cant explain the pictures. No, cant explain the pictures he says hes not sure theyre real some of the photos could be photo shopped. Meanwhile, some violence in hong kong escalating over the weekend as activists armed threw molotov cocktails and the ban at Wearing Masks is unconstitutional matt bradley joining us live right now from hong kong his evening, our morning ill say good evening to you, matt reporter good evening to you. This siege lasted well into the evening. There were hundreds of protesters still holed upped in this university which is just beyond this buildings here theres a police line here theyre not letting us get any closer its our understanding that some of these protests are gradually being let out being treated for injuries and illnesses some complained from hypothermia from the Water Cannons employed yesterday against the protesters all came to a head very early this morning when a police launched a predawn raid trying to retake this university. We saw some really dramatic images from these hundreds of protesters who use this university as kind of a citadel or a fortress. They built up walls around the university and made homemade catapults and bows and arrows. One arrow went through one of the Police Officers legs and then just today police have said that they consider this and other acts at the police to be murderous acts thats why its unclear whether these protesters who are being let out of the university what theyre going to be charged with, if at all. A lot of these protesters have been charged with rioting which is a very serious crime in hong kong and carries a sentence of up to ten years in jail. Imagine that against some of the people who are really just teenagers. This will continue on. Were seeing that these hundreds of people are not able to leave the campus its unclear whether the University Officials are going to succeed in their negotiations with the police to create some kind of deal, some kind of amnesty to finally bring one of the most violent chapters of now nearly sixmonth long crisis in hong kong to a close guys matt, thank you for that report appreciate it very much. Looking forward to seeing you or not seeing you but hopefully that would mean the chaos has ended. The chaos is taking a toll on Business Hotel vacancy rates hit a record high so if you want to make your way to hong kong, there are discounts to be had. His royal dryness was the big headline on the saturday post clever. With markets trading near alltime highs, well talk about one of the biggest catalysts for stock. T china trade in the talks negative trade buzz from officials. Eunice yoon will live us live from beijing does your broker offer more than just free trades . Fidelity has zero commissions for online u. S. Equity trades and etfs, plus zero minimums to open a brokerage account. With value like this, there are zero reasons to invest anywhere else. Fidelity. Stocks pushing to new highs the dow topping 28,000 in fridays session we have an update now on one big market catalyst, the china trade talks over the weekend chinese vice premier lu said he spoke on the phone with treasury secretary Stephen Mnuchin and robert lighthizer. Chinese state media say they discussed a phase 1 trade deal and the discussions were constructive eunice yoon with how chinese officials are viewing the impeachment hearings larry kudlow said were getting close. I heard that youre hearing that maybe theres we always go three steps forward, two steps back. What is your insight here . Well, actually i spoke to a government source who is familiar with the trade talks and there appears to be growing pes schism within the Chinese Government that a trade deal can be done, especially by this year and the source had told me that there were a couple of events recently that have really soured the mood within the government they said that President Trump a week ago appeared to say that a phasing out of tariffs would not happen and thats something thats really important to the chinese and was one of the reasons why the Commerce Ministry had announced it that the chinese felt that they had a deal at least in principle on a phasing out of the tariffs then a few days later they were put off again the source said when President Trump had said at the Economic Club in new york some harsh words about the chinese. He said them before that the chinese are cheaters, those types of things but just really didnt go over well. Nis this is still dits disagreement one of them is the agricultural purchasings. The u. S. Wants china to commit to specific targets. From the chinese perspective the concern or at least one of them, is that this can be off putting to some of their other trading partners in their conversations with multilateral events and conferences, one of the complaints has been about the number of purchases that would have to be bought by the chinese from the United States so, all of that is adding to a very negative picture over here and then he did say that the chinese now are looking very carefully at the political issue in the nits. He said theres a lot of dpis cushion about the election thats coming up only a year away and all of that raises questions whether or not President Trump is even going to be in office the next couple months theres a lot of questions that the chinese have thats adding to the idea that the chinese should wait it out its better to keep talking and they want to keep talking but at the end of the day, the focus now is more on propping up if domestic economy and in fact just today the central bank announced that it was trimming its shortterm funding rate. This would be for the first time in four year guys eunice, thanks. Thats obviously both of our guests have china in their sights to some extent but really more with the overall economy. Lets talk about the overall economies. And im going to start with you, jason. You think that were still not overly bullish in terms of sentiment right now. And it looks like clear sailing to higher levels from here technically. Yeah. For right now the sentiment levels are at the extreme levels you expect with the markets at all time high. Were thinking 3,200 is a good target for the first half of next year. For the first half. Its onlied my november. Ryan, i was thinking you said this is one of the begs years at 23 . Were not done yet if it continues to go higher and i dont know but this could be 25 and above when its all said and done since we have another month and half left of trading. You know, joe, unlike our 010 cincinnati bengals, i think the future looks a lot bright rt for the market s p up for 20 on the year the month of november has been higher 7 out of 7 times, december up 6 out of 7 you cant have a chase into the end of the year. Bigger picture, a, b, c a lot of countries are making alltime highs. Brazil, canada, United States, sweden, 52week highs all over europe greece is outperforming. This is a global story, this isnt just a u. S. Story, with a lot of participation Bigger Picture into next year, that is a really good sign we all know what happened last december were not seeing that now. This is a goodlooking market overall. Jason, all the recession talk, the inverted yield curve, the trading in august got everyone very defensive. Thats right. You could see it in the equity market basically the momentum trade in equities were proxy fixed income trades people got Long Duration in anticipation for the slowing economy. It slowed a little, but theres a difference between a solid economy and recession. Thats exactly right. We have seen two out of the last three periods leading into the recession where the economy positions or the market positions that way and then you see a rapid repositioning back towards cyclicals late in the cycle. So ryan, just in closing, you think are you with jason, 3,200 and bullish next year as well we are, joe also the cyclical theme, saying we like this market. We like those groups those areas were overweight as we head into next year. Yeah. I didnt touch your bengals yesterday. I think they covered, though i think you should have betd on them for once. They only lost by seven points, i think. They tried. Thats all we can say. Ravens. That quarterback. Any way, thank you thank. You bewent to xavier and miami thats right. Theyre good but they havent covered. I missed that trayvon bluitt guy. You look at everything differently now. Their good, they won but they didnt cover they barely won yeah they should be beating these teams by a lot more. Theyre 23rd i think they are ranked in the top rutgers never mind. Ohio state, it wasnt that bad. Got points on the board. So you paid attention to that. I did. This is with your mart, not your wallet. My cousin is at ohio state. When we come back, huaweis chairman talking about the east north tech china summit after this geico makes it easy to get help when i need it. 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