Cutting back production of the 737 max. Could announce a decision as soon as today. The board began a regularlyscheduled meeting yesterday that is set to continue today just last week the head of the faa told us right here on squawk box that the 737 max wouldnt be cleared to fly before the end of the year u. S. Regulars then warned boeing that it had been setting Unrealistic Expectations for the jet to return to service further Production Cuts would inflate boeings costs and take a toll on Financial Results as fixed expenses would be split among fewer planes the ability to effectively amoretize all of those costs and would also be a real pushback on the company and on the companys ceo. To me, if there really is a production halt, then theres going to be a succession story that i think we havent had yet. The Ripple Effects of what that means not only for boeing but all their suppliers along the way. Thats a much the reason you halt it, i mean, youre just blowing money if you keep making them and not sending them out, right . Right and its also a recognition that their time line that boeing had been hoping for is not the timeline that the faa is working on we heard that loud and clear from the faa administrator on this show last week. And this is the Ripple Effect of what happens from that. So this is a stealth rally in the dow then today up 65. Relative to a 12point gain youre looking at for the s p 500 and the futures this morning. Thats why its holding it back. Boeing is down almost 8, 8 times 7 is 56 points 56 or whatever plus 65, we would be up 120 or 130 gain of 12 poimpbt points fft s p future is a much bigger move. However many points that is eight times 60 points being taken off just from boeing so we would be much higher in the dow. The trade story were talking about Robert Lighthizer saying the phase 1 deal with china is, in his words, totally done it will nearly double u. S. Exports, he says, to china over the next two years we dont have a date. We have to 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 is going to be determined also by how we implement phase 1 phase 1 is going to be implemented right down to every detail it really is a remarkable agreement. But its not going to solve all the problems questions still remain obviously about some of the details of the deal and the time line for beginning phase 2 talks, which could actually saying start immediately and now they could come in stages. So thats what im excited about is the stage 2 may have three or four stages that we can agonize over the details of. Thats my question, has anything changed i know we put off the tariffs for now. Cease fire. Remember he said 20 we get just a little bitty thing or, no, that was 50 the 20 was that we have some earth shattering change in the relationship this is about exactly what he thought. Right this is what the market thought, too. This was the good Case Scenario from the markets perspective. We dont know the details of the i. T. Stuff. Thats the thing. They keep saying this is a finalized deal show us the details. Some of the things that china agreed to in recent years in terms of shuffling them around. Here it is. Change the language a little bit, put it up here and down here and other stuff down here back up here. Right. I dont know. Markets like it any way. Eunice yoon joins us now with the latest on the deal the other thing, eunice, that people keep questioning is whether theres the demand in china for twice as much grain as or ag products as we had been exporting in the past is there demand for that is that pie in the sky, do you think . There is a lot of demand for u. S. Soy beans as well as pork, especially right now, because the government here is trying to sure up the pig population after the african swine fever had ravaged the pig herd here. And then because Lunar New Year is coming up in january, this is a time when everybody likes to buy pork and there has been a serious concern on the part of the government here that there isnt going to be enough pork on the dinner tables during this multiday traditional holiday. And the concern there is that people could get pretty angry about it and then that could fall on the lap of the government so, there is definitely a big push for that. But what you guys were talking about, one of the things that i think is interesting is that the chinese and the u. S. Do both agree that this truce is good for the markets because the National Statistics bureau released the november data and as part of that they said the phase 1 trade agreement would help to improve Market Expectations so that is the official line that weve been hearing quite a lot. There are, though, questions and concerns as you guys were talking about that some of these key points have been lost in translation. So, the hard targets, as you guys were talking about, lighthizer had said could be 40 to 50 billion dollars that china promised the chinese have not confirmed that number. The chinese have said that the u. S. Agreed that they would roll back tariffs and there would be a phase out step by step lighthizer has said we have not made such a promise. And then on the phase 2 negotiation, as you guys were discussing, President Trump had said this was going to happen immediately, but then the chinese said that this phase 2 negotiation is going to be dependent on the phase 1 implementation so, still a lot of question marks. I got on the phone ive been talking to a lot of people today and most of the people i talked to are either governmentlinked or are close to the negotiations but a bit outside. And they all think that in terms of the tariff roll back, there is no real disagreement. And that the u. S. Understanding is that there would be removals of tariffs but its based on conditions where as the chinese believe we are going to meet those conditions so, therefore at some point there will be a phase out. Thats not a real concern. The other area, though, that might be a little bit more challenging is with those hard targets because the way it was explained to me is that the Chinese Government doesnt want to publicly acknowledge these hard targets because of the possible backlash they could have with their citizens so there is not going to be any discussion about the hard targets, but most people do believe even the one source i have who is pretty close in the government that is that china did agree to those 40 to 50 billion of Agricultural Products the question, though, or one of the things that people have also been saying, though, is that they think that this is the soft target and its what was described to me as a best endeavor target. That the u. S. Would accept if the chinese make a best effort to get as close as possible to this target, but it was just exactly what you were talking about, joe, the number and the math might not work for china. As long as theyre buying a lot of american stuff they can kind of get away with it. Right okay eunice, just to put a finer point on this, all the sources that you talked to are on the chinese side of the negotiating table because the idea of those roll backs yeah, yeah, yeah, yeah. Im guessing, we havent heard anything about the roll back of the additional tariffs im guessing that might be one of the things that might have gotten lost in translation in this. Yeah. No, that was one of the points and so, again, i was talking to a lot of people on the chinese side and so their understanding was its kind of linguistic that when you say phase out that the reason why the chinese officials when they said there was going to be a phase out, its going to be step by step and then later lighthizer had said, no, actually we have not agreed to a future roll back that again its all based on conditions. So that the u. S. Would allow for removal of tariffs but only if the chinese meet conditions. Its not really so different in their understanding of whats going to happen. So do you think its really lost in translation or do you think they really understand the translation they just want it to be one way and the other side wants to be another way . Agree to disagree we may not see eye to eye on things but were not going to continue to ratchet things up at the moment. We talk about the rationalization of the language and you think it this way. Is it that they dont understand or they dont want to understand or we dont want to understand, or whatever it is. Gray area in there personally i think thats what keeps things moving ahead. Youre not introed yet. I couldnt help myself. I want to ask eunice one more thing. So eunice, the second major sort of teteatete with a soccer or with a Sports League is happening over there now yeah, thats right. After the nba and these are told a big game, arsenal against Manchester City, the marquee matchup of the week. Did you talk to wolf . Yeah. Im channelling him. And so this player actually just mentioned the uighurs. Hes muslim. So they immediately pulled that off the air waves, right theyre pulling us off the air waves right now . He is german of turkish origin he is muslim and he is a midfielder for arsenal. And he has a massive population on twitter so he tweeted in turkish that his support for the uighurs and criticizing beijing for the crackdown on this Muslim Minority population and also criticizing muslims at large for the silence, the collective silence. So that has that just got a very strong reaction from beijing. The state, as you were talking about, the state tv, the broadcaster cctv dropped the game so there were a lot of people as you know, just with the nba, there are a lot of football fans here people were looking forward to it the signal, the decision was that the broadcast wouldnt happen and then the Chinese Football Association came out and said they were outraged. There was a lot of discussion online state media was putting out several different editorials one of them said that if hes bad mouthing xinjuang this is very foolish they meant if hes bad mouthing beijing. But its still got a very strong reaction i think what was also kind of comical, though, about this, that there was such strong reaction and online there were a lot of people wondering what he actually said because it was in turkish and the government was trying to figure out if they should translate it and put it online to show it or not so, a lot of people left wondering what is going on here when it comes to arsenal. I had quite a bit of money on that arsenal Manchester City 5 . Im not betting on soccer yet. Womens ncaa. You did almost. Almost because theres some big the good teams win cover. I saw it i wonder if i had a lick in that because i had such a bad day yesterday. Any way, thanks, eunice. I dont want to talk about it. Below. 600 . No, no, no no, but from above 800 down to the mid 600s horrible. Joining us now to talk about what the phase 1 trade deal means for the markets, ryan payne, president of Payne Capital management you like the colts tonight, do you know and jeff sau chief investment strategist ap Capital Wealth Planning jeff, after 25 gain, you point out typically you get at least 9 or 10 the next year and people are still talking about very muted 3, 4 . So once again we still havent convinced anyone that this is a good market. Thats right. Theres not many people left around that have seen a secular bull market. The phase 1 trade deal, the people i talked to d. C. And i used to live there have a hard time believing that the president is going to sign a phase 1 trade deal that has a snapback clause in it. So, i think beckys questions are right. Theres a lot of questions about whats going to go on with this phase 1 deal. Nearby we have a pullback or next year we get 9 or 10 in your view or its unlikely after a big gain like that you point out historically to have a 10 loss or more, that thats not usually in the cards i think how many years did that not happen where we had a 25 gain well, typically after a 20 plus gain you get an 11 gain the next year. And i think youre going to get that again in 2020 joe, theres a lot of people that still do not believe this rally. The economy is reaccelerating. Earnings continue to come in better than people think and the investing public, the individual investor is scared to death. Thats not the way bull markets end. Actually, ryan, you feel the same way im 100 with jeff on this. Jeff is one of the only strategists that was really bullish last year or this year on wall street jeff, im a big fan. Just wanted to say that. Thank you thats what we see here with our clients. They come in you have perspective clients come in, sitting with so much cash right now you look at we had a quarter trillion dollars come out of the market this year Retail Investors are not invested in this market. You were actually, ryan, pointed out about barrens, i guess, the barrens being in the low z i like to make fun of strategists. Theyre saying up maybe 4 , very muted as they were this year and if you look at most strategists they have been dead wrong because we have been in a booming bull market this year. So its still a p irinot mar, theres not a lot going on there is no alternative to and actually the journal has an interesting piece today they finally noticed investors are pulling back from safe havens as worries have eased about global slow down, right yeah, exactly right you look at were in a yield starve world and if you look at bond yields you know the world has to be crazy when you have yields like that on a place thats defaulted only in the last couple years. Where as stock yield, look at globally right now, buy Global Portfolio paying over 4 and those yields are increasing. There is no alternative if youre trying to informs your money to grow over inflation. At this point you dont see Interest Rates headed up at all, but you Like International you think we ought to go all around the planet, why, because valuation, stocks are cheaper elsewhere. Valuation matters get is same growth rates overseas. You cant. No look at earnings specifically, earnings look just as good overseas as they do here and get a valuation thats cheaper. Some valuations we could be jumping out of the basement window theyre so low. Very low risk and yields just not getting into other aset classes. Are you content here, jeff . Plenty to pick from in the United States . Yeah, thats right, joe we have a head strategy at Capital Wealth Planning were up online with the Dow Jones Industrial average this year and generating roughly 5 taxable distribution for the baby boomers, which i am certainly one of them, its like the ideal investment okay. Yeah we know that youre not you might be the m word, arent you im more with andrew. I think were generation x on the younger side ill take that. Millennial x. S. Millennial s. So you identify with them but youre a little older, is that what thats a fair assessment. How do you feel, andrew . Oh, he is hes millennial s. Straight up x. Straight up triple x, baby. Jeff, thank you. Whats wrong thank you. When we come back, senator Elizabeth Warren speaking to cnbc about her wealth tax plan thats part of the problem is government listens disproportionately to rich guys who dont want to pay taxes. Much more from that interview next, including her call to break up Big Companies squawk box will be right back. [ dramatic music ] this holiday. Ahhhhh ahhhhh a distant friend returns. Elliott. You came back and while lots of things have changed. Wooooah woah its called the internet. Some things havent. Get ready for a reunion 3 million light years in the making. Woohoo yeah senator Elizabeth Warren speaking to john harwood here is what she said about taxing billionaires. You would have to ask them. Butly say this, a lot of them just dont want to pay the taxes. You know, and thats part of the problem weve got here is government listens disproportionately to rich guys who dont want to pay taxes. Remember, for everybody who says that this government is caught in gridlock, remember, that when the question was cutting taxes for the richest and for the biggest corporations, it took the republicans about five weeks in order to call everybody in and do a trillion and a half dollars in tax breaks, tax breaks that went mostly to those at the top senator warren also outlining the reason that shes calling for the breakup of some Big Companies. I see this as whats the best way to grow our economy Going Forward . So you talk about lets break up big ag, lets break up the big banks. Thats enforcing antitrust laws that have been around for more than 100 years, and unfortunately for decade now have been underenforced. And let these giants come in who not only scoop up all of the profits, they also undercut wage growth, they undercut innovation in our economy, they stamp out little businesses in small towns. We need some enforcement of our antitrust laws. But youre not worried that the scale of all of this is going to have big unintended consequences i think the intended consequences here are pretty clear that when you dont have just one place or two places that you can buy seed from, theres more competition in the industry you can see the full speak easy interview right now at cnbc. Com. Just one comment about the last part of that. You know, i know a lot breaking up the big banks. Breaking up Big Companies because i think shes referring to amazon and facebook and everybody else there are people, democrats who often say that they dont sort of what i call wall street democrats who say i dont really like Elizabeth Warrens policies but i really dont like President Trump and im happy to vote for Elizabeth Warren because i so