Into whether its time for investors to cash out or ride this bull wave for another year. And the house of mouse, yes, disney, do it again, adding a sixth movie to its 2019 billion box Office Machine as Worldwide Exchange begins right now good morning im dominic chu in for Brian Sullivan its monday, december 16th, 2019 more than stock futures in the green after another recordsetting session on friday. The s p coming off its 28th record close of the year the nasdaq coming off its 23rd as you can see here, the dow would open up another 55 points if these gains hold into the opening bell the s p up by 12 and the nasdaq up by around 36 points if you take a look at the bond market, we are seeing slight movements there as well. The tenyear note yield 1. 3837 . Twoyear note yield 1. 624 lets go worldwide in the asian trade. It was positive, although a little more muted. You can see there the nikkei in japan, off hang seng off by half a percent. Shanghai, stocks rising to a sixyear high. Data helping markets outperform. Industrial production at the strongest reading since june. In european trading, it is strongly positive here today, in fact, the euro stock 600, that broad measure of stocks there hitting a record intraday high today. The german dax up 1 half of 1 and the ftse 100 in the uk still optimism over that big vote in parliament this past week, up 2 for the ftse 100 but we begin this morning with trade. U. S. Trade representative Robert Lighthizer saying the phase 1 deal with china is, quote, totally done and will nearly double u. S. Exports to china over the next two years. But details and a timeline remain murky at best we dont have a date now. What we have to do is get this we have to get the final translations worked out the formalities. Were going to sign this agreement, but ill tell you this, the second phase 2 will be determined by how we implement phase 1. Phase 1 will be implemented right down to every detail it really is a remarkable agreement, but its not going to solve all the problems all right ambassador lighthizers comments conflicting with the president s tweet friday saying, phase 2 talks will begin immediately so lets now head out to our own eunice yoon, live in beijing with the latest here eunice, what can policymakers in china glean from this kind of conflict are we going to see phase 2 kicking off already given what we have seen this past week . Well, i think that there are a lot of conflicting statements. And where the officials do seem to be on the same page is that a phase 1 trade deal, at least is good for the markets that is one of the key points that was reiterated again today by the National Statistics bureau when it released the november data. The officials there had said that this phase 1 trade deal helped to improve and would help to improve Market Expectations and just to recap the deal, the december 15th tariffs that were supposed to apply to 160 billion worth of goods were cancelled. It never came into effect over the weekend. 120 billion worth of goods will have their tariffs cut from 15 in half. And then the chinese are going to be stepping up efforts to buy american products. So, all of those things were seen as positive developments. However, there are indications that some of these key points have been lost in translation. The main one is over the hard targets. The u. S. Says that the chinese have promised to buy as much as 40 billion worth of goods could maybe go up to 50 billion when it comes to Agricultural Products the chinese have not confirmed that number. The chinese have said that the u. S. Wourld agree had agreed to a tariff roll back and that would come step by step. The u. S. Says no promises. There is no promise of a future tariff roll back and then on the phase 2 negotiations, President Trump had said that this would come immediately. Lighthizer, as you had pointed out, dom, said no date, but the chinese have said that a phase 2 negotiation would be dependent on the execution of phase 1. And i spoke to a couple of people here just to kind of get a better sense and they said that the tariff roll back part probably is just linguistics, that from the u. S. Side, the u. S. Believes that this is conditional. The chinese believe they can meet the conditions. So at least that is one area thats more or less the same eunice, the big crux of these phase 1 trade talks were about those agricultural purchases there is some skepticism among analysts, not just on wall street but elsewhere in the investing community, that those agricultural targets are going to be perhaps either difficult to meet or perhaps a little more anomalous at best. Take us through what exactly how important are the farm goods to this particular leg of the discussions . Theyre very important. I mean the chinese think that they do need Agricultural Products, especially because of domestic issues. Theyre having problems with their pig population, rebuilding it, so they want to have soy beans. They want pork, especially ahead of the Lunar New Year holiday. There is an interest in buying these Agricultural Products, but i think what was interesting in my conversations with people here is that there are a lot of people here who have been saying, you know, the chinese officially say that we will be doing our buying based on market needs. And they said that the chinese wouldnt want to embrace these types of hard targets, but that is publicly. So they are saying to me that publicly china wouldnt want to say that 40 to 50 billion because it could make them accountable to the chinese publicly, but most people here believe that the chinese negotiators have agreed to that 40 to 50 billion number, though the way its been explained to me is that its probably not a hard target but a soft target and that the chinese would be able to kind of get away with what was described to me as a best endeavor target, as long as they make their best endeavor to reach the target, kind of sort of that the u. S. Would find that acceptable. Hard, soft, best endeavor, its all very, very tricky right now. Eunice yoon, live in beijing with the latest. Thank you very much for that. Joining me now from irvine, california, live, chief investment officer, john rut ledge. You just heard eunices report here that there are so many details about this u. S. china trade discussion that are still up for debate, discussion, clarificati clarification, is this enough now to continue the bull run in markets that we have seen, not just in the u. S. , but in europe as well and other parts of the world into 20201234. Well, for a little while. We have seen a lot of this baked in already and we arent going to get any more drops in the Interest Rates and earnings next year are going to grow about minus 0. 3 so i dont think we should get too excited about that but i do think we should be very happy that they have an agreement of some kind whether it gets worked out in words or not, its important to understand that these two languages, each side gets to release its own press release and say whatever it wants without the other guy being able to read it were so lucky to have eunice in beijing helping us with the inside scoop on this i do think that people should keep in mind that we have a 20 trillion gdp, actually more than that, which means 1 of it is 200 billion this trade war for two years probably cost us half a percent a year, thats somethinglike 200 billion worth of output so, 16 billion of more soy beans doesnt exactly make up for it its also cost the rest of the world about half a percent of growth over that time. But im very glad we have a phase 1 agreement. Whatever they call it. Theyll buy a lot of soy beans theyll boy a lot of bacon and we can get on with business for a while. Lets get on with business. The thing i heard over the course of the past maybe few days here in the wake of the parliamentary vote in the United Kingdom and also this phase 1 trade deal being agreed to is that uncertainty has been taken off the table. Is it really true uncertainty has been taken off the table i heard the trade negotiations between the eu and uk and u. S. And china phase 2 agreements are anything but clear how much uncertainty has raerl been removed from the market at this point my table is still plenty full of uncertainty, dom. And i think its definitely better than it was a week ago. We have some clarity on the uk and brexit we have some clarity on trade Going Forward. We have we had the aramco ipo which i think is very good for oil prices and so, it ought to be a little better, but basically until you get a clear path ahead for the trade policy, its going to be tough for ceos to do a lot of Capital Spending and Capital Spending is really been what took the hit from the trade war here, uk and especially in europe all right john, before we let you go here because it is our weeklong series on whether there is room to run for this market, in 2020, how bullish or bearish are you does the bull run continue i think no. I think that we have had it on the Interest Rates and weve had up on the trade. So, i think Going Forward were looking at a single digit year at best on the u. S. Indexes. Like many people, i think the emerging markets ought to do better because chinas trade surplus is actually higher than it was a year ago because their exports to asia have increased more than their exports to the u. S. Have fallen so, asia, thailand, malaysia, singapore and vietnam and the like ought to have a very strong year and those markets tugt do quiou quite a bit better. Its 2 00 a. M. Pacific time we appreciate you staying up late or waking up very early thank you very much, john. My pleasure, dom. Trouble for boeing as it takes a hard look at the future of its grounded 737 max jet fleet. Plus, why uber is waiving the white flag in india. And then later on, disneys billion dollar box Office Machine kicks into sixth gear. A very busy hour still ahead when Worldwide Exchange returns after this as a principal i can tell you this. When one student gets left behind, we all get left behind. This is a problem that affects each and every one of us. Together with ibm, we created a whole new kind of School Called ptech. Within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. You know whats going up today . My poster. Today, there are more than a hundred thousand ptech students around the world. Its a game changer. New this morning, boeing could be close to a decision on whether to make further cuts to production of its embattled model 737 max jet. Rahel solomon joins us with the latest there good morning. Good morning. Boeings board is reportedly discussing whether to cut back or temporarily halt 737 max. The max has been grounded worldwide since march and boeings time line of when it may return to service has been repeat lid pushed back in april, boeing cut production by 20 from 52 to 42 planes a month. Taking a 5 billion charge in the Second Quarter and that was to compensate airlines hit by the grounding. Last week, the company acknowledged that the faa and also some over Global Regulators arent likely to recertify the max by the end of the year appearing before congress, faa administrator steve dixon expressed concerns that boeing was pursuing an unrealistic schedule boeing has been forced to ground 383 planes already in service and another 400 jets are waiting to be delivered to customers it also has a sevenyear backlog of 4,500 orders for the max. Boeing shares are down more than 2 year to date still up 3. 4 dom, back to you. Thank you very much for that update on boeing, rahel. Still on deck for the show, 26 billion deal breaking overnight to create a new consumer goods power house. Plus, the first install of this weeks Worldwide Exchange series room to run as we look at the sectors that matter over the last ten years and ask the question, is it time to cash out or is there still room to run . Announcer todays big number 4. 5 billion thats the net assets of the fxi, the largest etf to track ngheese stocks traded on t ho Kong Stock Exchange my mom washes the dishes. Before she puts them in the dishwasher. So what does the dishwasher do . Cascade platinum does the work for you, prewashing and removing stuckon foods, the first time. Wow, thats clean cascade platinum. Welcome back to the show get a check on some of the big stocks on the move this morning. Dupont will merge its Nutrition Business with International Flavors and fragrances to become a top supplier of ingredients to food makers. The deal values the new division at 26 billion with 11 billion in annual revenues the iff shares down about 6 in premarket trading. Dont miss a first on cnbc interview with dupont executive chairman ed breen and international ceo Andreas Fibig today. Squawk on the street 9 00 a. M. Eastern time. Uber is in talks to sell its food Delivery Business in india to a local rival the wall street journal reports a deal could be announced as soon as this week analysts say uber eats is a distant third in the indian market those uber shares up fractionally in the premarket trade. Novartis is dropping what it hoped would be a billion dollar asthma drug from development after it failed a number of key trials theyre hopeful they have two other potential block buster drugs in its pipeline. Novartis shares down in swiss trading. Still to come on the show, the how Judiciary Committee releasing its full report on the impeachment of President Trump over night we are live in washington, d. C. With those details and theyre coming up next to say two wordsim about that will make washington insiders very uncomfortable term limits. You and i both know we need term limits, that congress shouldnt be a lifetime appointment. But members of congress, and the corporations whove bought our democracy hate term limits. Too bad. Im tom steyer and i approve this message because the only way we get universal healthcare, address Climate Change and make our economy more fair is to change business as usual in washington. Its 5 23 a. M. Eastern time. Thats what time it is in washington, d. C. Youre seeing a live shot of the Capitol Building in washington the house Judiciary Committee releasing its full report on the impeachment of President Trump overnight. It comes as the full house prepares to take up the two articles of impeachment against him this week. Nbcs tracie potts joins us live from washington, d. C good morning, tracie. Hey there, dom. So we really sort of know how this is going to go. There are few democrats expected to defect but not for the most part the house of representatives now poised to do something theyve only done twice before in history. Impeach a president. No president is supposed to be a dictator. Reporter accusations and evidence the house Judiciary Committee 658 page report released overnight articles two outlines of impeachment against President Trump, abuse of power with holding aid to ukraine while pressuring the country to investigate political rival joe biden and obstruction of congress for blocking white house staff from testifying about it the final Impeachment Vote is expected wednesday theres not going to be any republicans in the house in fact, there will be a handful of democrats who will vote against impeachment in the house. Reporter including new jersey democrat Jeff Van Drew who report lid switching parties to vote no while most democrats vote yes. We cannot take the risk that the next election will be corrupted through foreign interference solicited by the president. Reporter after wednesday the focus moves to the senate where democrats are asking for a trial to begin january 9th, with acting white house chief of staff Mick Mulvaney and former National Security adviser john bolton as witnesses. Get this thing over with. I am clearly made up my mind i dont need any witnesses reporter President Trump wants to call his personal lawyer, rudy giuliani, just back from ukraine democrats worry republicans in charge will rush to clear the president in a quick trial. The majority leader in the senate saying were going to get this over with we dont we know hes not going to be convicted. Reporter but the process must play out, beginning with a likely Impeachment Vote this week now, that is going to be setting up for the next step, which of course is the trial in the senate and, dom, they are still trying to wrk out details of what that trial might look like. So, tracie, there is the prevailing kind of thought process here is that there is not going to be an impeachment that is ratified by the senate, even if they take up their own trial. As we take us through the steps here, what exactly are we going to be looking for, and will it be a failure if President Trump does not get impeached in terms of how the House Democrats and Senate Democrats view the current state of affairs well, if he doesnt get impeached, dom, this is going to be a huge story to figure out why because democrats have the numbers to do just that, even with the handful of democrats who are either not voting or voting no or in one case switching parties to vote n