Transcripts For CNBC Squawk On The Street 20240713 : compare

Expected to move to trial, the phase one china trade deal expected to be signed at the white house this morning top trump economic adviser larry kudlow joins us first cnbc this hour. And financials are in focus, bank of america beats for the quarter, goldman hampered by litigation charges target shares are plunging. Holiday sales miss on estimates on weakness and toys and electronics. The u. S. china phase one trade deal said to be signed this morning this is what secretary mnuchin said about the agreement earlier this morning on squawk. We need to put together very significant laws to change rules and regulations and made strong commitments to our companies there will not be forced Technology Going forward thats a big win for our technology companies, businesses and American Workers we look forward to learning more in the wake of this signing. Jim, mnuchins appearance this morning brought us something new, the notion of phase 2a, phase 2b, phase 2c, so stories evolving rapidly i think the takeaway for me is the tariffs worked. If you go back in time, people said listen, tariffs wont work, wont change them. The chinese are all powerful tariff also hurt our consumer, the consumer is going to see a lot of inflation at the producer level and the consumer level ultimately which is going to hurt the u. S. Economy. Oa caved and china will continue to cave because we didnt take the tariffs off. It is historic tariffs did succeed. They werent supposed to work. The chinese are supposed to get around them. It didnt happen we deal with senior management, a lot of Multinational Companies and talk to a lot of these ceos regularly. I dont really sense that they care that much about the numbers and when i say the numbers, i mean the increased purchases by china, whether its Agricultural Products or the xhicommitments n manufacturing. They care about forced technology transfers, about the continued stealing of intellectual property via Cyber Espionage and state support for those enterprises in china there is progress. The question how enforceable is it going to be the first thing secretary mnuchin said this is going to try to stop technology transfer. Youre absolutely right, david that market has been lets just say open only in name. And too much stealing. Id love to hear they admit theyve been stealing, not to denigrate what we got and i do think we dont manufacture that much, if we manufactured more than they buy more it sounds like this could be good for boeing, maybe a reason why boeing stock hasnt gone done with the new bad news david, youre right. There is a lot of companies that would love to be there cisco great example. If youre going to steal everything its not worth it maybe that will change i dont know your point is a good one, jim. This commitment not to do something that theyve never admitted doing in the past thats going to be key to see whether theyre going to be more candid than they have in the past as for the tariffs, there had been this notion for the markets that as we got closer to the election, it would be a very powerful lever rolled some of the tariffs off if we got milestones of progress, but these latest reports indicate that no, theyre going to stay in place until the election. Should the market be disappointed by that no. The market should recognize they double crossed us repeatedly with obama, were not going down in the South China Sea immediately they did it, general mattis talked about that, former defense secretary. Theyve gone back on so many things after they pledged it that you have to keep the tariffs in place to see like what Ronald Reagan did with trust and verify, if they change their ways they have to start if were root and branch, we have been stealing, were not going to steal anymore, not going to have joint ventures that allow us to steal. They have to renounce their ways not just spend money and i think the tariffs in place could force them to do that. I think their economy is growing at 2 to 3 . I think their economy hasnt grown anywhere near 5 , 6 jim, when i listen to you, as i have for years now, you are a hawk without a doubt on this issue. Right i listen to steve bannon, my old friend kyle bass or navarro. You wonder whether well decouple, that there will be two systems decoupled from the chinese, theres no real way to bridge the gaps as we did get a phase one if we move forward from that. Ive been questioned by highlevel people when i do my reporting with administration, do you want to decouple. Secretary mnuchin does not want to decouple at all he wants our companies to have a fair deal. I bet you larry kudlow, National Economic adviser, hell say the same thing, which is we just want to have a level Playing Field. If we have a level Playing Field, we can actually do well, but youre absolutely right, david. I think its time for people to stand up and say do you want to do two systems, which think is very bad for the world, and bad for the u. S. , or do you want to engage in equal terms. Thats where i am. If you want to be listen we cant deal with china, thats a big mistake. You hear bannon say that huawei is an instrument of the pla and they need to be put out of business just completely put out of business, thats not something you could imagine the chinese allowing to occur. And a lot of it 5g, starts in separate technology, a lot of it starts with their advancements theyre making and our unwillingness to allow them to do that and i dont know how you end up with one system i think its ridiculous were not doing everything we can to help ericsson and nokia. Business to huawei is a mistake. Its an instrument of the pla, of the country they spend so much money why are we not doing more to unite everybody who has got something going against huawei these countries themselves where the companies are in, they use huawei its time to rally the countries and recognize that there are alternatives japan is working on alternatives on 5g. Why dont we embrace them. Thats awareness the administration has got to get more aware there are companies that can stop huawei you cant say we dont want to do business with huawei. Not all of them are u. S i think the guns are trained on europe. Lets see what happens but i do feel that nokia and ericsson cannot be given up on. They are the only way were going to be able to not stop huawei but have a competitive offering ericsson and nokia are not as good technologically and more expensive. David, you have some great too is in japan. Japan is trying to work on a Software Package that makes it so you can have your towers do, software and be ahead of huawei. Were get willing headlines from xinhua the chinese agency, theyll follow through on the deal to obtain tangible results, one of the first thorough readthroughs on that front from the chinese side obviously a lot more to be learned as we get closer to the signings b of a better than expected Quarterly Results helped by a 25 jump in fic, goldman a revenue beat and the litigation charge shaved a bit off of their reported number of 469 we were looking for 547. We dont know whether the street was taking that into account 1. 24 billion in regulatory proceedin proceedings, diluted eps by 316 in the release here and return on equity by 1. 5 , 150 basis points as well a Strong Quarter for fic, Investment Banking net revenue 7. 6 billion, obviously consumer is still very small but we watch it closely it is growing at this point, but well see what they say on the call as you heard wilfred when he came on at the end there of squawk box, maybe well get a little bit more information around the litigation charge, around where things stand in terms of potential settlement here in the United States, and with malaysia over the 1mdb scandal. Maybe, jim, they give a little more information around a few other things as well, but the 29th looms, when theyll have this big investor day and were going to learn a lot more and get a lot more in terms of targets from the company, i believe, on return on equity that they hope from the various divisions as the way theyre apportioning things. Yes, thats the key meaning we cant talk about what goldman is doing yet talk about what goldman is doing in the future you have to wait until the meeting. I hate earnings season for the cadence. You start with jpmorgan, bank of america stocks goes up, goldman stock goes up and bank of america is a cash machine. David, 12 times earnings 12 times earnings. How is that possible a consistent Company Versus a kellogg, a company that gets a double mull tipple i dont understand how the markets valuing these companies. Weve had rates go down. I thought it was bad for these companies. Theyre killing it the charges, the chargeoffs, nothing. The loan growth terrific the deposit base oh my god, theyre adding a big bank every quarter. So i think these companies were set up by jpmorgan, people are going to say bankful america was bad, its down 60 cents. No its just bank of america was up a lot and has been a good stock. Yes, although credit loss provisions at goldman up five, which was above estimates, jim, some are suggesting maybe this is just the result of building up markets well look, i think that i want to know how much is his credit card by the way remember, credit card is doing much, much better than expected. Who knows what the chargeoffs are there. I also think that when we get the line items, maybe well be more sure. Goldmans murky right now. And if youre going to go buy the stock at these levels, you must know something about what theyre going to talk about at the end of january and that is so locked down i know ive been working endlessly to try to get it and i cant get it yeah, would they repurchase over the year, 25. 8 million shares of common, 5. 43 billion they spent on that, too. Woo, citi repurchase, bank of america repurchased, these companies are rolling in it. Jim well get your mad dash in a few moments larry kudlow is going to join us to talk about the signing of phase one, later on to morning plenty to get to, including initiations of peloton, a downgrade of beyond meat underweight on aramco. A lot to get to this morning well get to cramers mad dash and the opening bell in a few moments. We see a healthy consumer environment, strong labor environment. Percentage of consumers in the workforce continues to grow. Wages are Rising Consumer confidence is strong and all the indicators right now would say this is going to be a very solid Holiday Season. That was targets ceo back in november, as you saw, discussing what he was expecting for the Holiday Season, as we get to a mad dash now jim were going to focus on target because the Company Reported comp. Store sales of 1. 4 for the novemberdecember period, which was far below what had been anticipated, specific to weakness in electronics, toys, and portions of their home assortment does this mean, jim, that the huge turnaround we saw in target is in or just a blip maybe it is a holiday that is filled with buying and electronics and filled with buying and toys maybe it was an apple christmas, maybe you cant afford anything other than an apple. You dont think to buy them at target apparel is okay. Its a mystery why they were doing so well before they got into the season. How did costco get 9 . I think costco is where people buy these things and obviously i do believe apple was a formidable purchase including the air pods this christmas. Enough to be able to move the needle the companys maintaining its previous guidance for the Fourth Quarter in terms of earnings per share, jim given that, are you surprised the stock is down perhaps as much as 7 when we open 13 minutes from now well, i think only because when we saw macys, which was okay, and we saw kohls, which was bad, we figured okay, that means business goes to target, and i dont think it did we got to find out how amazon did. That takes a lot of work i know you have a lot of sources but maybe it was, again, for those hard goods you want them delivered to your house. You got to buy them in ham zone. Amazon doesnt tell you specifics as their typical way to go about it walmart doesnt report these things any longer, jim i guess they report february 19th i think im not sure towards the end of february. So its going to be a little bit there as well before we get any clarity. We felt target had to be the most consistent and when you see that number, 1. 4 , that is out and out anemic Brian Cornell admits this is a shocking number. I dont think the decline is all that much. I dont. All right, yes. Of course were talking about a stock that had an incredible 2019 after a number of quarters that far exceeded expectations as they really seemed to get it together on all fronts, of course right i dont know, electronic toys could be amazon, too hasbro had a decent quarter. Jim, stay there coming up on first on cnbc your old friend, chief white house economic adviser larry kudlow, aahead of the u. S. china phase one trade deal signing watch us live on the go, the cnbc app is where you find us. A lot more squawk on the street coming straight at you we made usaa insurance for members like martin. An air force veteran made of doing whats right, not whats easy. So when a hailstorm hit, usaa reached out before he could even inspect the damage. Thats how you do it right. Usaa insurance is made just the way martins family needs it with hasslefree claims, he got paid before his neighbor even got started. Because doing right by our members, thats whats right. Usaa. What youre made of, were made for. Usaa you leave it to me. Ill get your taxes in an ok place. What . Just as soon as my audits over, this gets my undivided attention. You take a lot of trips to the islands, phil . Pretty great, right . Oh phils legally dead. Fell off a boat. Going by denis now. Celery. Long story. What do we got here. Oh. Not going to want to see this. I dont think this is going to work. Just ok is not ok. At t has americas best network, now with our best plans, at our best prices, starting at 35 a line for 4 lines. New from at t. And when you open a new brokerage account, your cash is automatically invested at a great rate. Thats why fidelity leads the industry in value while our competition continues to talk. Talk, talk high protein low sugar tastes great high protein low sugar so good high protein low sugar mmmm, birthday cake and try pure protein delicious protein shakes futures getting back a little bit here. Well see what the day brings. A lot to be learned upon signing of this phase one agreement. In the meantime, watching earnings season roll on with goldman, b of a, target guide an, unh well get to and larry kudlow, National Economic counsel, with us around 9 35 eastern. Were back in a minute thats what happens in golf nothiand in life. Ily. Im very fortunate i can lean on people, and that for me is what teamwork is all about. You cant do everything yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley team. Im justin rose. We are Morgan Stanley. The opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. Youre watching cnbcs squawk on the street live from the Financial Capital of the world, opening bell in just under five minutes on an important wednesday morning, with the signing of the phase one agreement around 11 30 a. M. Eastern time lots of earnings to get to jim, the price target increases continue Guggenheim Facebook 275, apple 355. Bernstein takes beyond back to market perform after a 55 runup since their upgrade im glad you mentioned that i thought that was the most important analyst call today, which is a recognition, all right, weve had some really unbelievable gains and its all based onthe same information beyond meat doing better look, i think facebook is a Terrific Company should it go up every day because price targets bumped its doing that. I think it sets facebook up to fail apple same thing, sets it up to fail these are analysts playing catchup its not a good game if youre doing, its momentum, its the multiple expansion. Thats not what i like to see because its quicksand people coming in now, quicksand facebook, quicksand apple. Wait until they report which they will in the coming days by the way, beyond does sign a multiyear agreement to get supplied with p protein, a key concern for investors whether or not they can continue to meet the demand right thats a key ingredient, its a p slurry, p related slurry i think. Sounds delicious. Sounds fabulous, doesnt it ive had the tyson ones with the dip, i think theyre sensational but theyre behind beyond worked on this stuff for years. I thought the tyson pbased tenders were dynamite but i feel like im the only one who had them that doesnt work. Its only growing as a category, we know that it does i come back to yesterdays announcement from black rock in terms of esg jim, you cant just ignore the power of that Investor Base now that finds these kinds of names alluring in part just because of the way that they are at least viewed as being better for the planet oh, yeah. Robin hood, which is the apple with 10 million accounts, most of the young people, they want to know esg. As soon as they buy a stock, sustainability, they love the stock of beyond meat because beyond meat is anticap and its pro protein. It is considered to be faux meat that the planet needs, and it tastes good. I do like it ive had it as meatballs ive had it as steak the stuffs dynamite ethan, the ceo, he was whipping stuff up for me. The millenials are driving this stock and i think that this downgrade is to the institutions please take profits. I think downgrade works. Its not really anticow. The cows are probably in favor because it means they stay alive. Like the eat more chicken, the chickfila campaign methane, david. Methane, i know, its a big issue. It is. Morgan stanley underrate aramco they say, jim, given geopolitical risk, Technology Going<\/a> forward thats a big win for our technology companies, businesses and American Workers<\/a> we look forward to learning more in the wake of this signing. Jim, mnuchins appearance this morning brought us something new, the notion of phase 2a, phase 2b, phase 2c, so stories evolving rapidly i think the takeaway for me is the tariffs worked. If you go back in time, people said listen, tariffs wont work, wont change them. The chinese are all powerful tariff also hurt our consumer, the consumer is going to see a lot of inflation at the producer level and the consumer level ultimately which is going to hurt the u. S. Economy. Oa caved and china will continue to cave because we didnt take the tariffs off. It is historic tariffs did succeed. They werent supposed to work. The chinese are supposed to get around them. It didnt happen we deal with senior management, a lot of Multinational Companies<\/a> and talk to a lot of these ceos regularly. I dont really sense that they care that much about the numbers and when i say the numbers, i mean the increased purchases by china, whether its Agricultural Products<\/a> or the xhicommitments n manufacturing. They care about forced technology transfers, about the continued stealing of intellectual property via Cyber Espionage<\/a> and state support for those enterprises in china there is progress. The question how enforceable is it going to be the first thing secretary mnuchin said this is going to try to stop technology transfer. Youre absolutely right, david that market has been lets just say open only in name. And too much stealing. Id love to hear they admit theyve been stealing, not to denigrate what we got and i do think we dont manufacture that much, if we manufactured more than they buy more it sounds like this could be good for boeing, maybe a reason why boeing stock hasnt gone done with the new bad news david, youre right. There is a lot of companies that would love to be there cisco great example. If youre going to steal everything its not worth it maybe that will change i dont know your point is a good one, jim. This commitment not to do something that theyve never admitted doing in the past thats going to be key to see whether theyre going to be more candid than they have in the past as for the tariffs, there had been this notion for the markets that as we got closer to the election, it would be a very powerful lever rolled some of the tariffs off if we got milestones of progress, but these latest reports indicate that no, theyre going to stay in place until the election. Should the market be disappointed by that no. The market should recognize they double crossed us repeatedly with obama, were not going down in the South China Sea<\/a> immediately they did it, general mattis talked about that, former defense secretary. Theyve gone back on so many things after they pledged it that you have to keep the tariffs in place to see like what Ronald Reagan<\/a> did with trust and verify, if they change their ways they have to start if were root and branch, we have been stealing, were not going to steal anymore, not going to have joint ventures that allow us to steal. They have to renounce their ways not just spend money and i think the tariffs in place could force them to do that. I think their economy is growing at 2 to 3 . I think their economy hasnt grown anywhere near 5 , 6 jim, when i listen to you, as i have for years now, you are a hawk without a doubt on this issue. Right i listen to steve bannon, my old friend kyle bass or navarro. You wonder whether well decouple, that there will be two systems decoupled from the chinese, theres no real way to bridge the gaps as we did get a phase one if we move forward from that. Ive been questioned by highlevel people when i do my reporting with administration, do you want to decouple. Secretary mnuchin does not want to decouple at all he wants our companies to have a fair deal. I bet you larry kudlow, National Economic<\/a> adviser, hell say the same thing, which is we just want to have a level Playing Field<\/a>. If we have a level Playing Field<\/a>, we can actually do well, but youre absolutely right, david. I think its time for people to stand up and say do you want to do two systems, which think is very bad for the world, and bad for the u. S. , or do you want to engage in equal terms. Thats where i am. If you want to be listen we cant deal with china, thats a big mistake. You hear bannon say that huawei is an instrument of the pla and they need to be put out of business just completely put out of business, thats not something you could imagine the chinese allowing to occur. And a lot of it 5g, starts in separate technology, a lot of it starts with their advancements theyre making and our unwillingness to allow them to do that and i dont know how you end up with one system i think its ridiculous were not doing everything we can to help ericsson and nokia. Business to huawei is a mistake. Its an instrument of the pla, of the country they spend so much money why are we not doing more to unite everybody who has got something going against huawei these countries themselves where the companies are in, they use huawei its time to rally the countries and recognize that there are alternatives japan is working on alternatives on 5g. Why dont we embrace them. Thats awareness the administration has got to get more aware there are companies that can stop huawei you cant say we dont want to do business with huawei. Not all of them are u. S i think the guns are trained on europe. Lets see what happens but i do feel that nokia and ericsson cannot be given up on. They are the only way were going to be able to not stop huawei but have a competitive offering ericsson and nokia are not as good technologically and more expensive. David, you have some great too is in japan. Japan is trying to work on a Software Package<\/a> that makes it so you can have your towers do, software and be ahead of huawei. Were get willing headlines from xinhua the chinese agency, theyll follow through on the deal to obtain tangible results, one of the first thorough readthroughs on that front from the chinese side obviously a lot more to be learned as we get closer to the signings b of a better than expected Quarterly Results<\/a> helped by a 25 jump in fic, goldman a revenue beat and the litigation charge shaved a bit off of their reported number of 469 we were looking for 547. We dont know whether the street was taking that into account 1. 24 billion in regulatory proceedin proceedings, diluted eps by 316 in the release here and return on equity by 1. 5 , 150 basis points as well a Strong Quarter<\/a> for fic, Investment Banking<\/a> net revenue 7. 6 billion, obviously consumer is still very small but we watch it closely it is growing at this point, but well see what they say on the call as you heard wilfred when he came on at the end there of squawk box, maybe well get a little bit more information around the litigation charge, around where things stand in terms of potential settlement here in the United States<\/a>, and with malaysia over the 1mdb scandal. Maybe, jim, they give a little more information around a few other things as well, but the 29th looms, when theyll have this big investor day and were going to learn a lot more and get a lot more in terms of targets from the company, i believe, on return on equity that they hope from the various divisions as the way theyre apportioning things. Yes, thats the key meaning we cant talk about what goldman is doing yet talk about what goldman is doing in the future you have to wait until the meeting. I hate earnings season for the cadence. You start with jpmorgan, bank of america stocks goes up, goldman stock goes up and bank of america is a cash machine. David, 12 times earnings 12 times earnings. How is that possible a consistent Company Versus<\/a> a kellogg, a company that gets a double mull tipple i dont understand how the markets valuing these companies. Weve had rates go down. I thought it was bad for these companies. Theyre killing it the charges, the chargeoffs, nothing. The loan growth terrific the deposit base oh my god, theyre adding a big bank every quarter. So i think these companies were set up by jpmorgan, people are going to say bankful america was bad, its down 60 cents. No its just bank of america was up a lot and has been a good stock. Yes, although credit loss provisions at goldman up five, which was above estimates, jim, some are suggesting maybe this is just the result of building up markets well look, i think that i want to know how much is his credit card by the way remember, credit card is doing much, much better than expected. Who knows what the chargeoffs are there. I also think that when we get the line items, maybe well be more sure. Goldmans murky right now. And if youre going to go buy the stock at these levels, you must know something about what theyre going to talk about at the end of january and that is so locked down i know ive been working endlessly to try to get it and i cant get it yeah, would they repurchase over the year, 25. 8 million shares of common, 5. 43 billion they spent on that, too. Woo, citi repurchase, bank of america repurchased, these companies are rolling in it. Jim well get your mad dash in a few moments larry kudlow is going to join us to talk about the signing of phase one, later on to morning plenty to get to, including initiations of peloton, a downgrade of beyond meat underweight on aramco. A lot to get to this morning well get to cramers mad dash and the opening bell in a few moments. We see a healthy consumer environment, strong labor environment. Percentage of consumers in the workforce continues to grow. Wages are Rising Consumer<\/a> confidence is strong and all the indicators right now would say this is going to be a very solid Holiday Season<\/a>. That was targets ceo back in november, as you saw, discussing what he was expecting for the Holiday Season<\/a>, as we get to a mad dash now jim were going to focus on target because the Company Reported<\/a> comp. Store sales of 1. 4 for the novemberdecember period, which was far below what had been anticipated, specific to weakness in electronics, toys, and portions of their home assortment does this mean, jim, that the huge turnaround we saw in target is in or just a blip maybe it is a holiday that is filled with buying and electronics and filled with buying and toys maybe it was an apple christmas, maybe you cant afford anything other than an apple. You dont think to buy them at target apparel is okay. Its a mystery why they were doing so well before they got into the season. How did costco get 9 . I think costco is where people buy these things and obviously i do believe apple was a formidable purchase including the air pods this christmas. Enough to be able to move the needle the companys maintaining its previous guidance for the Fourth Quarter<\/a> in terms of earnings per share, jim given that, are you surprised the stock is down perhaps as much as 7 when we open 13 minutes from now well, i think only because when we saw macys, which was okay, and we saw kohls, which was bad, we figured okay, that means business goes to target, and i dont think it did we got to find out how amazon did. That takes a lot of work i know you have a lot of sources but maybe it was, again, for those hard goods you want them delivered to your house. You got to buy them in ham zone. Amazon doesnt tell you specifics as their typical way to go about it walmart doesnt report these things any longer, jim i guess they report february 19th i think im not sure towards the end of february. So its going to be a little bit there as well before we get any clarity. We felt target had to be the most consistent and when you see that number, 1. 4 , that is out and out anemic Brian Cornell<\/a> admits this is a shocking number. I dont think the decline is all that much. I dont. All right, yes. Of course were talking about a stock that had an incredible 2019 after a number of quarters that far exceeded expectations as they really seemed to get it together on all fronts, of course right i dont know, electronic toys could be amazon, too hasbro had a decent quarter. Jim, stay there coming up on first on cnbc your old friend, chief white house economic adviser larry kudlow, aahead of the u. S. china phase one trade deal signing watch us live on the go, the cnbc app is where you find us. A lot more squawk on the street coming straight at you we made usaa insurance for members like martin. An air force veteran made of doing whats right, not whats easy. So when a hailstorm hit, usaa reached out before he could even inspect the damage. Thats how you do it right. Usaa insurance is made just the way martins family needs it with hasslefree claims, he got paid before his neighbor even got started. Because doing right by our members, thats whats right. Usaa. What youre made of, were made for. Usaa you leave it to me. Ill get your taxes in an ok place. What . Just as soon as my audits over, this gets my undivided attention. You take a lot of trips to the islands, phil . Pretty great, right . Oh phils legally dead. Fell off a boat. Going by denis now. Celery. Long story. What do we got here. Oh. Not going to want to see this. I dont think this is going to work. Just ok is not ok. At t has americas best network, now with our best plans, at our best prices, starting at 35 a line for 4 lines. New from at t. And when you open a new brokerage account, your cash is automatically invested at a great rate. Thats why fidelity leads the industry in value while our competition continues to talk. Talk, talk high protein low sugar tastes great high protein low sugar so good high protein low sugar mmmm, birthday cake and try pure protein delicious protein shakes futures getting back a little bit here. Well see what the day brings. A lot to be learned upon signing of this phase one agreement. In the meantime, watching earnings season roll on with goldman, b of a, target guide an, unh well get to and larry kudlow, National Economic<\/a> counsel, with us around 9 35 eastern. Were back in a minute thats what happens in golf nothiand in life. Ily. Im very fortunate i can lean on people, and that for me is what teamwork is all about. You cant do everything yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley<\/a>. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley<\/a> team. Im justin rose. We are Morgan Stanley<\/a>. The opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. Youre watching cnbcs squawk on the street live from the Financial Capital<\/a> of the world, opening bell in just under five minutes on an important wednesday morning, with the signing of the phase one agreement around 11 30 a. M. Eastern time lots of earnings to get to jim, the price target increases continue Guggenheim Facebook<\/a> 275, apple 355. Bernstein takes beyond back to market perform after a 55 runup since their upgrade im glad you mentioned that i thought that was the most important analyst call today, which is a recognition, all right, weve had some really unbelievable gains and its all based onthe same information beyond meat doing better look, i think facebook is a Terrific Company<\/a> should it go up every day because price targets bumped its doing that. I think it sets facebook up to fail apple same thing, sets it up to fail these are analysts playing catchup its not a good game if youre doing, its momentum, its the multiple expansion. Thats not what i like to see because its quicksand people coming in now, quicksand facebook, quicksand apple. Wait until they report which they will in the coming days by the way, beyond does sign a multiyear agreement to get supplied with p protein, a key concern for investors whether or not they can continue to meet the demand right thats a key ingredient, its a p slurry, p related slurry i think. Sounds delicious. Sounds fabulous, doesnt it ive had the tyson ones with the dip, i think theyre sensational but theyre behind beyond worked on this stuff for years. I thought the tyson pbased tenders were dynamite but i feel like im the only one who had them that doesnt work. Its only growing as a category, we know that it does i come back to yesterdays announcement from black rock in terms of esg jim, you cant just ignore the power of that Investor Base<\/a> now that finds these kinds of names alluring in part just because of the way that they are at least viewed as being better for the planet oh, yeah. Robin hood, which is the apple with 10 million accounts, most of the young people, they want to know esg. As soon as they buy a stock, sustainability, they love the stock of beyond meat because beyond meat is anticap and its pro protein. It is considered to be faux meat that the planet needs, and it tastes good. I do like it ive had it as meatballs ive had it as steak the stuffs dynamite ethan, the ceo, he was whipping stuff up for me. The millenials are driving this stock and i think that this downgrade is to the institutions please take profits. I think downgrade works. Its not really anticow. The cows are probably in favor because it means they stay alive. Like the eat more chicken, the chickfila campaign methane, david. Methane, i know, its a big issue. It is. Morgan stanley underrate aramco they say, jim, given geopolitical risk, High Oil Price<\/a> sensitivity, limited impact for minority investors, they would have to offer 5 to be competitive with other majors oh, yeah, definitely. Look, who wants to own that . If you want a spoiler of the environment, go for bp, a 6 yield. These are per se spoilers. Larry said coal no go. Virtually no coal stocks are these next going to be targeted are we going to decide these cant do esg, no matter what they say and therefore they should be a smaller part of the s p . I think thats going to happen interesting i think youre probably going to be right i dont know where the constituency comes from. At some point, one of them is going to really seize the moment and say we are all about being Carbon Neutral<\/a>, if we can be and all about new ways to generate energy and theyll move in that direction and find a new Shareholder Base<\/a> [ applause ] how do you become Carbon Neutral<\/a> when you sell carbon plant a lot of trees who knows mo to solar, become a giant. [ cheers and applause yes, but they say well plant a billion trees. [ bell ringing ] i dont know how else you offset being carbon producing i did notice today pepsi is going to achieve 100 renewable electricity for its u. S. Direct operations this year, 100 renewable electricity out of pepsi. Well see a big decline in electric use the Carbon Footprint<\/a> stuff is showing up now as one of the leading things you see when these companies do their investor days. And give you the deck. I mentioned it yesterday with Takeda Pharmaceuticals<\/a> which you wouldnt expect. Youre right carl, Carbon Neutral<\/a> and Energy Efficiency<\/a> are figuring prominently into the way they describe their companies along with eps and growth rate and everything else. Its not feel good stuff anymore. Er that going to force the utilities to drop coal coal should not be part of the menu the president is procoal. I think thats an illadvised position the big board guys, reeves Asset Management<\/a> and etf solutions, celebrating the anniversary and nasdaq tivo doing the honors amazon lifted the band on fedex ground for third party prime but bezos going to spend 1 billion to help small and medium sized businesses in india get online he thinks the 21st century will be the indian century. Well, i think that, geez, tim cook would agree i think thats the market. Its a market that is not necessarily open to us on a level Playing Field<\/a> but also a fractured market thats a smart move by bezos how many smart moves can you make hes empowering customers. Hes empowering infrastructure indias just i think really white board. Its clean slate its up for grabs but you have to really be part of the culture there. Bay zoez billiezos billion doll decent start india has demographics that are positive we dont talk about this a lot but forget japan, which is losing people at a rapid rate, 864,000 fewer people last year, but china also has a demographic issue, no doubt about it 1. 3 billion people but nonetheless, india is certainly, looks very different in that way. Although, jim, they have some serious issues right now on the ground there in terms of i guess politically, but whats going on in terms of the Muslim Population<\/a> thats not to be overlooked. No, i think its sad. Look, this worldwide nationalism, i think nationalism is often a code for worldwide discrimination, is a terrible thing. I think that people dont talk about that enough because they use the term nationalism as if it is something that is powerful, but they tried it in the 30s and it was a disaster i dont really know whether india itself is going to be the market so fast youre absolutely right, david, its a Young Persons<\/a> economy. They are like uber millenials. You have that level of millenial population, wow. Theyre up for grabs you mentioned goldman t is down about 2. 5 or so after the numbers 6 theres uber all the banks are down bank of america also actually, jim, after what certainly seemed to be a solid quarter, but selling off this morning again, theyve all rallied a great deal over the last year. Thats it i mean come on six months. What are you going to do . Youre getting terrific numbers. This is my theory for the whole quarter, what i worry about. Youre getting terrific numbers and the stocks have had terrific moves. What happens next . Eh, that was terrific. Goldman bought back a ton of stock. The window opens for partners to sell, big retirements, usually a couple days after the quarter is not good, it is all the january conference call. Bank of america was a great quarter. Theres no flies in that quarter. People say its Net Interest Income<\/a> oh, please one outlier, wells fargo, guys, Charlie Scharf<\/a> was setting the barlow for expectations on that call, yesterday, stock is down 10 this year the interview with the cfo yesterday with wilf was eyeopening. Somehow seemed to think it was a good quarter, at least theres one person who thinks its a good quarter i found that interview to be, well, lets just say suboptimal on the part of wells fargo everything that wilf said, no matter what he said maybe this was bad, that was bad, the guy was in total denial but Charlie Scharf<\/a> was not in denial he was saying listen, maybe this culture is broken. When you say great numbers on the banks, jim, when fic is up 86 at jpmorgan, 63 at goldman, 25 at b of a, how much of this is just leaning on fic and what happens when that swings the other way, which it ultimately will one day well, i look at the positive growth and taking share. Jpmorgan is taking a lot of share. Bank of america is taking a lot of share you get the deposit growth, i know they dont have 7 trillion the way larry fink was say bank of america has 4 trillion they open a gigantic number of Checking Account<\/a>s. You know a Checking Account<\/a> is just a huge feebased business i like the fees that bank of america generated. All right, jim, as you know the u. S. china phase one trade deal set to be signed later this morning. Joining us to talk about it is larry kudlow good to have you back. Good morning thank you, good morning appreciate it. Big day, something the markets been looking forward to for a long time as sort of the pieces start to fill in here what is most important to the market is it the commitment on these purchases . Im seeing a headline now, the treasury secretary saying that there will be 100 ownership of Chinese Companies<\/a> for americans in china financial whats key . Financial companies, 100 ownership of financial companies, which is great progress on the whole issue of tech transfers and ip, but ownership is very important. Look, i think that, first thing i want to say is, for both teams, for both sides, this is a progrowth deal. In fact, we think its going to add to the growth of our economy by at least a half a percentage point in 2020, and 21 china state orgs are putting that out chinese Consumers Want<\/a> american imports, things that America Sells<\/a> to china, its a big step forward on that front, and we will fill in a lot of details and im happy to tell you everything i can tell you. I just want to make this point between the two great nations, nothing like this has ever happened before, and in fact, as weve talked over the past two years, a lot of times didnt look like wed get to the finish line, but this is such an important deal, president ial leadership, trump, lighthizer, mnuchin. It shows cooperation is possible, a more balanced trading relation is possible and also shows that america is ready, we are so competitive in this country with productivity and more people working and growing faster than before, it just shows you, if you give us open door, okay, lower trade barriers, let us sell you our great goods, services, manufacturing, energy, we will take thatopportunity so this is progrowth, more balanced relationship, and general terms, i think those are the key points larry, specific to the purchases an larry sorry, jim, ill let you go in a sec sure. Height of chinese purchases was in 2017, the deal requires them to increase by an additional 200 billion over the next two years, roughly a 30 growth rate including an additional 80 billion of manufactured goods you have the confidence theyre going to be there with those kinds of purchases, just given the ultimate increase that is demanded of them well, these are good numbers. Youre right look, it can only be what the market bears but the china side believes their economy both needs and can absorb those kind of increases so it gets better balance. On the numbers, it sounds like youre right we will publish this today in the general categories, but agriculture exports 40 billion to 50 billion per year, manufacturing 75 billion increase, not enough attention has been paid to that manufacturing number, that is a very large number, and as you know, weve had a little softening in manufacturing, so thats going to be a good thing. Overall, Services Plus<\/a> 40 billion and energy plus 50 billion, not enough attention has been paid to that, as you know, america has become energy power, were independent number one in the world china, look, if you read the chinese newspapers in various staterun organizations today, what theyre saying is, better balance, but theyre basically saying chinese consumers and the chinese economy needs these American Products<\/a>, and so this deal will codify that, and create this agreement for the first time ever, and i think of course we can meet it. I think the supply side, the production by the United States<\/a>, im not going to say its unlimited but ill say weve got plenty of capacity to open up the throttle, and thats why this things going to be so progrowth larry, congratulations. It is a deal that i think is not, lets just say, would never have even dreamed of just a couple years ago one thing i want to know is, you and i have often disagreed on fair versus free trade, but since you came into the administration, i think youve seen that there is definitely a problem with china, because they did not level the Playing Field<\/a>. Larry, tariffs worked. They didnt produce any inflation. Tariffs worked they made it so that the chinese had to play more fair. Are you shocked that tariffs just in your history of all your, what i regard as brilliant thinking about the economy, are you surprised that tariffs were so effective well i think, you know, ive said this before i think President Trump<\/a> has shown all of us that you know, you have a policy to defend the American Economy<\/a> and the american worker, and china had generated a very unbalanced trading relationship they were breaking rules left and right, whether it was ip theft, whether it was forced tech transfer, whether it was market closings, and so forth and so on. So we had to deal with these socalled structural problems. President trump, who ultimately i believe is a free trader, and wants barriers lowered to enhance American Economic<\/a> growth and exports, thats the best way to get your trade deficit down, hes shown us that tough negotiation as a means to the end works, and tough negotiation includes tariff and you know, going back almost two years, ive been here nearly two years, i have signed on to that mission, and i have signed on to those strategies and tactics he has shown that tariffs are part of tough negotiating, in pursuit of market openings, you know, more balance, stop the unfairness, stop the theft and so forth and so on so yes, i will say im proud to have been part of this, because again, this kind of deal and this kind of cooperation did not seem possible two years ago. Larry, i i think that, you know, this is a i talked to lighthizer about this, jimmy. Lighthizer was such a driving force, such a driving force through this lighthizer will say dont tell me we just got the lowhanging fruit. The toughest thing to get in this whole argument, arrangement, negotiation, the toughest thing, jimmy, was the first deal, phase one. You know why weve never had a phase one before, and yes, tariffs have been a crucial part of this. President trump was right. Larry, i totally agree with you on everything you said have the chinese ever said to lighthizer, you know what . We have been stealing. We have not been a good actor. We are going to change our ways, and you know what . Well let you keep the tariffs on, well sign this, because we are going to change. Have they ever admitted to the terrible things theyve been doing to our country well, look, i would simply say, if you look at the agreements here, whether its intellectual property theft or forced transfer, or ownership of joint ventures, or trade barriers, either tariffs or nontariff barriers, if you look at whats changed in all these details will be published in an hour or two, if you look at whats changed, jimmy, you see that their side is in effect acknowledging to have a more balanced relationship, they have to provide these kinds of remedies all right, now, im not here to beat up china. Im here to praise this arrangement, and im here to praise chinese cooperation, along with america im just saying the remedies were broadbased and weve talked about this for two years now, so the fact that china came to the negotiating table, yes, with tariffs, they came to the negotiating table with an enforceable agreement, and we can talk about the enforcement if you like in a moment or two that shows that they understand they had to make reforms, and changes. That shows that. And now hopefully if they accommodate and abide by this agreement and the rules, we had a very good dinner last night with their team, and talked about these matters, if they abide by the agreement, were opening up a new chapter its a new chapter for better trading and more open markets, and for american exports, its also hopefully a new chapter for better Economic Growth<\/a> look, their economy has been very, very weak, as you report all the time, and they need help i think from American Products<\/a> and services and so forth. So you know, the fact that they came to the table, the fact that they agreed to the agreement, the fact that they agreed to the remedies, all ill say is what does that tell you larry, but for those who say tariffs are largely still in place, the purchases get us back basically above 2017 levels. Xi is not even here to sign this today, that people still wonder the impact on corporate confidence, on capex that weve been through for the past year and a half and people ask was it worth it you think it was i do. I mean, you know, look, carl, dont go there, please dont make this little this is not little this is huge, and by the way, the stock market has been rallying im not going to make it any way, larry, not going to make it big or small okay, im going to make it big, because again, nothing like this has ever happened before in history. Look, regarding the stock market, youve had tremendous rallies in the stock market. 2019 was an amazing year,but i think besides an easier Federal Reserve<\/a>, i think the progress on the china trade talks as it was revealed, and ive been out here talking and ma xnuchin and othe has been a big boost to the stock market and the stock market is an important scorecard here, not only saying this is for real but improve confidence, investment, and Economic Growth<\/a> between the two countries, and you know, last night vice premier and i were talking about this, not only for the u. S. And china, its going to improve for the rest of the world. Does it inspire more confidence . I think it does. We pulled back, we made adjustments, pulled back the december tariffs, about whatever, 150 billion we lowered the tariff rate on the september tariffs, i think it was 120 billion from 15 to 7, but, and this is an important but, we maintained tariffs on the original 250 billion at 25 . Yep that is, if you will, our statement that we want to wait and see, number one, how does enforcement of phase one go, and number two, what sort of progress will we make on phase two. If the enforcement does not occur, if we dont have adequate dispute resolutions, then we will take proportionate actions and responses and china knows that, and they dont have the reciprocal agreement to counter it so weve gone further than weve ever gone. Larry, i want to, you know, in the world that i report on, that you know well, of course, given your many years here at cnbc, a lot of the ceos, Senior Executive<\/a>less and multinationals dont care that much about the purchases numbers. They care a lot more about forced technology transfers, the endless Cyber Espionage<\/a> theyve been subjected to, where the chinese try to steal their corporate secrets and the state supported enterprises that competes unfairly with them in markets around the world what is in this agreement that addresses that, and specific to what you keep mentioning, what are the compliance mechanisms that we really have here that we can rely on to make sure whatever we got we actually get . Those are very good points, david. Some of the industries are very, very happy with the export increases, but i think youre right about the structural problems so let me just suggest here, number one, on the theft of intellectual property, intellectual property, which is technological inventions, advances and innovations, is the kind of creativity and freedom that makes america the greatest economy in the world its like you cannot steal our freedom or our inventiveness and creativity now, numerous changes, david, are in the agreement youll see it when its published later, if you havent already. Importantly, in china, the definition of criminal offenses regarding theft of ip and retel ingredient in this furthermore, a number of regulatory changes are being made, and we have this appeals process, this dispute resolution process, so with regard to counterfeiting and stolen goods and stolen ideas, there are a number of very important reforms in here that can be easily monitored. So thats probably the single biggest area, the ip theft now, there have been some important ownership changes as was mentioned before, i think by carl mr. Mnuchin negotiated 100 u. S. Ownership of Financial Service<\/a> companies, thats been in the works for a long time, its very, very important hopefully that idea of 100 ownership will spread into other areas, that will be left for phase two. But again, regarding the ip, i will also say in general terms, the socalled forced transfer of technology technology, which is an ownership interest number one, and a lightning issue, number two. There will be heavy lifting on that, the more comprehensive lifting on that will be done in phase two and will probably be the central aspect of phase two. I will say this, of all of the companies we talked to, all of the wonderful ceos ive met so many ceos in this job. People are extremely happy, not just that we put this stuff on the table. Lets take ip theft. I mean, that is the family jewels, isnt it what technological inonovatioin we must protect that at all costs and ceos we talked to, all kinds of executives, are very happy with the progress that we have made, and, again, remember in china this may be a side bar but its very important. I was told this almost two years ago. One of the biggest problems in china is Chinese Companies<\/a> steal ip from each other they hope to use trade reform as a way to stop domestic problems. They changed their regulations and changed their criminal law codes and there will be more coming if you want to make a complaint now, an American Company<\/a> operating in china can make a complaint directly to the u. S. Before they were only going to china. We set up a bilateral process of resolution dispute to make sure different layers will have courts, will have testimony, staff level, deputies level, and if need be principles level. If the enforcement fails, if the complai complaintaplainants are not haph u. S. Remedies, we will take proportional actions larry, you are talking about a lot of goodwill. To me that goodwill would have translated to more of a decline in tariffs whats a demonstration on their side of goodwill were going to let goldman and apple do their own credit card is this about jpmorgan coming in saying we wont demand they have a partner. What can they do can they buy something can they let companies in. I want to know what concrete is going to change because it does seem you left tariffs in because you may not expect theres something concrete that could occur. Step by step, brick by brick, the most important part of your point is 100 ownership provision. As far as i know, almost all versions of Financial Service<\/a>s, banking, investing, distressed loans, money management, as of this year, i believe its april 1st, i might be wrong, but i believe april 1st, 2020, these things will go into effect 100 ownership for United States<\/a> companies. Thats really important breakthrough stuff you know, to your other question, i just want to read this im not smart enough to remember every legal detail i want to say this regarding the intellectual property structural issues which is so important to protecting our creative freedoms, changes to chinas criminal and civil procedures. Changes to chinas criminal and civil procedures with appropriate penalties if that is broken Chinese Government<\/a> agencies cannot force their companies to disclose information from our companies, nor can they force our companies from disclosing information. These are fundamental High Standard<\/a> provisions. Weve never had anything like it before and, again, if theyre not enforced, we will take appropriate action proportionate response action. Larry, real quick, im going to get in trouble for this but the tape has white house mulling payroll tax reduction and increased in earned income tax credit for this year, true im still wondering a process of tax cuts 2. 0. Were many months away it will come out sometime later during the campaign. No discussion of specifics tax cuts 2. 0 to help middle class Economic Growth<\/a> is still our goal i had a tremendous meeting with my friend, kevin brady, but we will unveil this perhaps sometimes later in the summer. All right larry, always helpful. Appreciate it very much. Well see you soon thank you dow session highs up here 105. S p, 3,293 jim, your thoughts on whats on mad tonight . I continue to believe theres a good feeling in the banks. I got to tell you, this shrug off of target is extraordinary you would expect retail down i just see the market is strong. Its just strong its target specific what can i say people want to own stocks really badly no matter what i think any amount of caution is proving you wrong right here i dont like that. Its true. Amazon is up big if the consumer is really hurt and slow because of target, it looks like target just lost share. I got to believe they just lost share. When toys are flat and electronics are down six at target, something is going on on a share basis. Amazon is lagging apple, facebook dramatic so far this year. No doubt about that i would have thought someone would have said target is a great company. Maybe the consumer was much worse than we thought. That would not be a job with what jpmorgan and bank of america said jim, on tonight and tomorrow . We have stitch fix. We have xpologistics and tomorrow we have saty Satya Nadella<\/a> from microsoft tomorrow worked hard to get him whats going on there with as your cloud david, when you talk about amazon not moving up, how about why . Well find out thats a great interview. Looking forward to that one tomorrow jim, well see you soon were counting down to the rba ia ra dl. Tdeea wee ckn minute but natures by has innovative ways to help you maintain balance and help keep you active and wellrested. Because hey, tomorrows coming up fast. Natures bounty. Because youre better off healthy. sensethe lack of control when iover my businessai, made me a little intense. But now quickbooks helps me get paid, manage cash flow, and run payroll. And now im back on top. With koala kai. vo save over 40 hours a month with intuit quickbooks. Good wednesday morning welcome back to squawk on the street. Morgan is in for sarah dow up 117 s p closing in on 3,300 now as we have an historic day in washington phase one of the china trade deal set to be signed at the white house this morning well bring you full coverage including from china Kayla Tausche<\/a> is at the white house getting the latest details of this agreement. Well tell you what the signing means for yothe markets and your money. And Speaker Pelosi<\/a> is holding a press conference well go there live when it begins lets get to beijing the centerpiece of the phase one trade agreement is the big purchase targets for china 200 billion over two years. 80 billion is for manufactured goods like cars, medical devices and aircraft made by boeing. Ag plays heavily in this deal. 32 billion in purchases that means stocks like tyson 53 billion for u. S. Energy watch chevron, dow chemical and exxon. Worth watching are Asset Management<\/a>, brokerages and insurers keep an eye on jpmorgan, goldman, blackrock mastercard and visa. The deals tougher protections will be welcome by the companies with brands that have been counterfeited quite a lot here in china so that doesnt necessarily translate into real business but watch new balance, nike, pvh one word of caution, its unclear how much china is going to buy these are aggressive targets and some here have said unrealistic targets. Another thing to note is that china has traditionally opened up its markets sometimes though without really opening up its markets and those types of barriers have not been addressed in this phase one trade deal guys has the president in china made comments about this are you expected to hear from him once this deal is signed today . So far he has not made any comments at all. However, they say that this trade deal was a winwin for china and the u. S. As well as the rest of the world. Very positive comments so far about the phase one trade deal thank you for bringing us the latest from on the ground in china. We continue to bring you all of the details of the signing of this phase one trade agreement between the u. S. And china last hour we spoke with National Economic<\/a> Council Director<\/a> larry kudlow about the deal. Take a listen. Nothing like this in history has ever happened before it shows cooperation is possible it shows a more balanced trading relation is possible and it also shows that america is ready we are so competitive in this country with productivity and more people working and growing faster than before, it just shows you if you give us open door, lower trade barriers, let us sell you our great goods, services, manufacturing, energy, we will take that opportunity. Joining us now with his insight on the deal is former u. S. Ambassador to china ambassador, thanks for joining us today i want to get your reaction to larry kudlow right there have we ever seen anything like this in history between the u. S. And china . I hope larry kudlow is right. The proof of the pudding is in the eating well see the details. I served for years in china. Weve seen lots of agreements by the chinese and the chinese dont really live up to them there is supposed to be an enforcement provision in this agreement. Maybe a snapback on tariffs. Theres no independent thirdparty world tribunal and if china isnt living up to their end or they think were not, theres no arbiter so its back to where we were before and all of this really comes down to in my judgment based on many years dealing with china, we have to develop strength in america so china respects us and we need a longterm Strategic Plan<\/a> toward china which we dont have its ad hoc. If china thinks longterm, china takes advantage of us. They didnt use tariffs in previous negotiations. You didnt see the curving of cross border deals i could go down the line here. Arent we in unchartered territory as far as the possibility of enforcement does actually go . The United States<\/a> has tightened up i think thats good. But the bottom line here is that china is becoming the largest country in the world and the United States<\/a> is the second largest they have to get along together. Theres deepening tension between the two. Part of it is security concerns. Part of it is trade. Part of it is china is proud of itself it has the wind to its back. It thinks its a big deal now we have to figure out how to work together. This deal we talked about frankly is very much on the surface. It doesnt get to fundamentals to get to the fundamentals, you would have to have a president who really understands this and thinks longterm and puts together a Strategic Plan<\/a> and even more important works with our allies we cannot where we want to be with china alone you cannot do it alone china will divide and conquer. Theyre good at it we have to work with our allies if were going to make progress. Z you know, agreement on new subsidy rules looking to basically reform the wto and the way state subsidies are enacted and what looks like on a global basis. Its not terribly relevant to todays world. It will take a lot of work to reform it. Second, as a consequence, countries are going to go their own way. Japan, though a western country, will pursue policies much more similar to those we have china, however, will go even more its own way it feels it can. Thats its culture its not a democracy theres no elections they think longterm theyre going to go where they want to be and that is one of the strongest countries in the world next 10 or 15 years. Ambassador, i wonder what the American Farmer<\/a> should be thinking right now after a rough couple of years here regarding exports. Do they plan aggressively on the who e hopes that china lives on these or with tariffs in place, chinese retaliation is there a danger they could plant and still have nowhere to sell it there. American farmers have to do the best they can like anyone else if were talking about iowa soybean farmers, it looks like china will buy a lot more soybeans and maybe 20, 30, 80 billion worth. If i was an iowa farmer, i would say i didnt like what trump was doing. I dont like these tariffs because theyre hurting me but it looks like he was okay. Maybe well get a deal here. I think probably a lot of iowa farmers are thinking well see well find out what happens here its looking kind of good. Maybe ill stick with trump in the next election because he looks to be making progress. A couple years ago we were selling more soybeans to china than we may be under this agreement. Senator, china is only getting more powerful when it comes to their development of new technology 5g for example in wireless and a number of other areas as well. Despite todays phase one there are those that believe we are going to decouple let me hold it there for a second. I want to go to a press conference i believe majority leader pelosi is having as articles of impeachment are about to be sent to the senate. Lets listen in. Have used over time to place us in time to emphasize the importance of time because everything is about time how we use it, how we mark it, and today is an important day because today is the day that we name the managers, we go to the floor to pass the resolution to transmit the articles of impeachment to the senate and later in the day when we have our engrossment, that we march those articles of impeachment to the United States<\/a> senate as ive said, its always been our founders when they started, when in the course of human events it becomes necessary when abraham lincoln, thomas payne, these are the times that try mens souls. The times have found us. Even our poets, longfellow, listen my children and you will hear the Midnight Ride<\/a> of its about marking history and using time on december 18th, the house of representatives impeached the president of the United States<\/a> an impeachment that will last forever. Since december 18th, there have been comments about when are we going to send the articles over. Well, we had hoped that the courtesy would be extended that we would have seen what the process would be in the senate short of that, the time has revealed many things since then. Time has been our friend in all of this because it has yielded incriminating evidence, more truth into the Public Domain<\/a> since we passed the articles on december 20th, two days later, new emails showed that a top office of management and budget aide asked the department of defense to hold off on the ukraine aid. On december 29th, revel laations about a role in the delay of the effort by lawyers in the administration to justify the delay and the alarm this is very important that the alarm that the delay, time, caused within the administration. On january 2nd, newly unredacted pentagon emails which the president blocked raised serious concerns by the Trump Administration<\/a> officials by Trump Administration<\/a> official, they were the legality john bolton said he would comply with a subpoena to testify and that he has new relevant information. On january 13th, reports emerged the russian government hacked a recurring gas company as part of their ongoing effort to influence u. S. Elections in support of President Trump<\/a> and just yesterday the house committee, two of our chairmen here, the chairman of judiciary and intelligence and Foreign Affairs<\/a> and government reform, they released new evidence pursuant to a house subpoena that further proves the president was a central player in the scheme to pressure ukraine for his own benefit in the 2020 election. This is about the constitution of the United States<\/a> its important for the president to know and putin to know the american voter, voters in america should decide who our president is, not Vladimir Putin<\/a> in russia. So today im very proud to present the managers well bring the case, which we have great confidence in in terms of impeaching the president in his removal but this further evidence insists that there be witnesses and that we see documentation and now you see some of that change happening on the senate side i hope it does for the good of our country and to honor our constitution so today on the floor well pass a resolution naming the managers, as i mentioned, appropriating the funds for the trial, and transmitting the articles of impeachment of the president of the United States<\/a> for trying to influence a Foreign Government<\/a> for his own personal and political benefit chair adam schiff of california, as you know, chairman of the committee on intelligence, is serving his tenth term in Congress Excuse<\/a> me. Before congress mr. Schiff was a california state senator and served as a federal prosecutor in the u. S. Attorneys office in los angeles for six years most notably prosecuting the first fbi agent ever to be indicted for espionage. Chairman jerry nadler is serving his 15th term in congress. Mr. Nadler served as the top democrat on constitution, civil rights and Civil Liberties<\/a> for 13 years before congress, mr. Nadler served in the senator kerry sta served in the new york assembly. And the chairman is a Senior Member<\/a> of the house judiciary member serving her 13th term in congress this is the chairwomans third impeachment as a Judiciary Committee<\/a> staffer in the nixon impeachment, as a member of the Judiciary Committee<\/a> in the clinton impeachment and now as a manager in this impeachment of President Trump<\/a>. Chair jeffries of new york is the chair of the House Democratic<\/a> caucus and serving his fourth term in congress. Hes a member of the house Judiciary Committee<\/a>. Before congress, served in the assembly of new york for six years. An accomplished litigator in private practice before running for elected office mr. Jeffries clerked for howard baird jr. For the Southern District<\/a> of new york the congresswoman from florida is a member of both the House Permanent Select Committee<\/a> on intelligence and the house Judiciary Committee<\/a>. Serving her second term in congress before congress, she served as Orlando Police<\/a> department for 27 years part of that time as the First Woman Police<\/a> chief in orlando. Congressman jason crow of colorado is a member of the House Armed Services<\/a> committee mr. Crow served his country our country bravely as an army ranger in iraq and afghanistan before running for congress. Mr. Crow was a respected litigator in private practice in colorado congresswoman garcia is a member of the house Judiciary Committee<\/a>. Before congress, ms. Garcia served in Texas State Senate<\/a> previously she was the director and presiding judge of the houston municipal system and was elected city controller. Ms. Garcia was elected the first hispanic and first woman to be elected in her own right to the Harris County<\/a> commissioners court. As you can see from these descriptions, the emphasis is on litigato litigators the emphasis is on comfort in the courtroom and to make the strongest case to defend our constitution and to seek the truth for the american people. Im very proud and honored that these seven members, distinguished members, have accepted this serious responsibility again, to protect and defend for the people defending our democracy. When we leave here at noon, well go to the floor and pass a resolution naming the managers officials. I wanted to say more about that is Speaker Pelosi<\/a> naming the impeachment managers led by intel chair adam schiff. That comes just a few hours before the house is scheduled to vote on a resolution formally transmitting the articles of impeachment to the senate where we think a trial will begin on tuesday. I think well talk about what we just heard from pelosi and what it means for the weeks ahead what you see before you or pictures during that press conference were seven impeachment managers, three of them were women. That is a very stark contrast from the roster of 13 white males that prosecuted the case against president clinton and pelosi said all along she wanted the managers to reflect the diversity and experience of the members in her caucus. She also used her press conference to defend her strategy of holding on to the articles for the past month. She said that time has been our friend she had hoped that by holding onto the articles and waiting to name these managers, she could receive some leverage in the negotiations with the senate over what the trial would look like she said today that she expects that managers will forcefully make the case for witnesses during the senate trial even though we know that House Democrats<\/a> have already lost round one of that battle however, last night democrats did release a nnew documents tht there was an effort to remove the ambassador to ukraine in exchange for political dirt on the bidens thats information democrats hope will put pressure on moderate gop senators who may want to see more information, hear from more witnesses over the course of the next two weeks when they make that decision about how the rest of the trial will go forward. As we heard the speaker say, the house will vote on transmitting those articles at around 12 30 today and then formally walk them over to the senate later on this evening and that means that the trial can begin in earnest next week. Guys thank you we heard from Speaker Pelosi<\/a> at that press conference introducing those impeachment managers we still have the former senator with us. You were there during the impeachment trial of president clinton. Final thoughts from you, senator, not on china trade but on this. We seem to know what the outcome is going to be if we listen to majority leader mcconnell. Well, this is a very grave and profound moment in american history. The impeachment and trial of a president. I know the senators will take their responsibility very earnestly and responsibly. I must say when i sat on the senate floor and we all had to sit on the senate floor during the entire proceeding although a couple times some got up and left and wandered back again i did not learn anything during that argument by the house in defense of the president that i did not know before that i read in newspapers or saw on television we sat there we listened. I took copious notes i have no idea where those notes are these days its clear that the dye was cast even then that all democrats would vote to acquit president clinton or republicans would vote to convict him. It was clear that will happen here. There are two issues here. The degree to which the speaker is strengthening her case with new evidence i think shes done a pretty good job doing that the second question is will there be additional witnesses called in the senate i tend to think that will not happen why . Because the more the democrats want to hear from bolton or giuliani and so forth, the more the republicans are going to say, well, we want to hear from hunter biden we want to hear from maybe even the Vice President<\/a> and thats going to get all messed up and stuck and nothing is going to happen i expect a stalemate there where new witnesses are not called it was great to get your insight on two very big stories. Ambassador, thank you for joining us looking at the markets right now, despite these developments and comments from the house speak are, dow is up 127 points and s p is up nine or. 3 percent. Not really affecting the markets as we await the signing of the phase one trade deal one sector down this morning is the big banks after the break, goldman and bank of america and blackrock also the big asset manager reported earnings this morning well get a check on those financials lets give you a quick reminder you can watch us live on the go wn the cnbc app. Doload it today. Squawk on the street will be right back legendary terrain in telluride, the unparalleled landscape of park city, or the famed peaks of whistler, youve faced the hassle of lugging your gear through the airport. With ship skis, youre just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. With unrivaled pricing, real time tracking ship skis delivers, hassle free. Ship ahead and go catch those first tracks on fresh snow. Ship skis. Your skis. Delivered. Stocks are down this morning after goldman and bank of america reported earnings before the bell we get the latest from those calls. Bank stocks selling off this morning despite another set of earnings beats albeit with a few qualifications bank of america had a slight beat on both lines but showed that Interest Rate<\/a> sensitivity more than yesterdays banks. That interest margin declined seven basis points to 2. 34 percent. Jpmorgan fell 2 the stocks started slipping saying we would expect Net Interest Income<\/a> in the first two quarters of 2020 to be a bit lower than q4 2019 and expect it to rise in the second half of the year Goldman Sachs<\/a> had a big beat if you strip out a litigation charge of 1. 1 billion based on various conversations with sources, i get the feeling theyre close to all jurisdictions global settlement on the scandal but until they do, theres, of course, no finality to the buildup of provisions like this. The main part of their revenue beat came in newly formed equity subdivision of Asset Management<\/a>. This was a bounceback in Companies Like<\/a> we work, trade web and uber which they had to mark down the previous quarter a source told me they sold out of uber in full. Goldman sachs took part in that bumper Fourth Quarter<\/a> for fixed income trading bank of america call took wind out of 2020 expectations Goldman Sachs<\/a> had the best run of late. Had the hardest set up coming into earning season. If you look at the chart, you see how Earnings Call<\/a> encouraged investors since the opening earlier today. Thank you as we note, goldman now flat on the session as you were speaking hard to imagine what they could possibly have written up thats not essential what is overall banks. Lets get a look at todays numbers. Were joined by Gerard Cassidy<\/a> what stood out to you this morning from b of a and goldman . There was more sensitivity in the bank of America Numbers<\/a> on the margin that we didnt see from the banks that reported and in terms of Goldman Sachs<\/a>, they have enormous Equity Investment<\/a> number which pushed their numbers up generally speaking, the Capital Market<\/a> numbers have been good depending on the Capital Market<\/a>s player but generally speaking they have been good for all of the banks reported and bank of america is more of that asset sensitivity that caught them in this quarter goldman, you along with many other analysts, getting ready for that big investor day toward the end of the month the possibility they will have a worldwide settlement will that be important is that an important thing to note yes, it is. I think what the company has expressed to us is that thats what they would like is a worldwide settlement i think the u. S. Part of it is probably locked up from the reports that have been released. Its really the malaysian part of it. Heres the key question weve been raising we dont believe that the dollar amount will be anything that they cannot handle theyll possibly sign a deferred prosecution agreement with the department of justice, which is not uncommon in these situations for banks. They are a Federal Reserve<\/a> bank holding company. What will the Bank Regulators<\/a> do we believe that we dont think Bank Regulators<\/a> will sit by the side if theres going to be an enforcement action they have to handle, that will be announced at the same time i want to go back to bank of america and fact that shares are down down 2 today. Do you think it would be like this if it hadnt had a runup in the months before hand . What do you think of valuations here the stock has had a great run. Theres some profit taking and one of the things that were seeing and this could benefit the custody banks such as bank of new york or state street reporting later on, the wholesale deposit funding companies, they soaw costs fall faster than consumer deposits and bank of america is a strong consumer deposited orientated company. Thats why they suffered more than jpmorgan yesterday. And so to us the stock has run up nicely. This company is still, you know, longterm one of the investments that people should know because of the strength of their franchise in the United States<\/a> and there will be ups and down the other thing is if we see a steeper yield curve toward the end of the year, which bank of america is not factoring in, but if we get to see that by the end of the year, that would be favorable to all of the Banks Including Bank<\/a> of america. If being the key word there gerard, thank you as always. Appreciate your time Gerard Cassidy<\/a> time for our etf spotlight. Looki sector under pressure because of target which posted slower than expected holiday sale growth down about 6. 5 . Courtney reagan is at hq with a look at spdr this is disappointed with regard to targets recent momentum that weve seen sales falling short of expectations targets comparable sales grew 1. 4 over last holiday period. For the quarter, they were in that street expected closer to 4 growth but target says full quarter will be closer to 1. 4 holiday result Digital Sales<\/a> is part of the total. That was also well short of recent growth rates for that metric what happened . The retailer isnt entirely able to pinpoint it exactly some categories were strong. Apparel was up 5 . Essentials and beauty up 6 . Key holiday categories were weak toys were flat electronic sales fell 6 hope was flsplit. Home trimmings, lights, those things were good Small Appliances<\/a> like instant pots werent together, homes, toys, electronic makes up onethird of the Holiday Season<\/a> sales so the stronger categories like apparel and particularly the private label brands, those are higher margin goods which is in part why the retailer is able to reaffirm its earning forecast. Same day fulfillment grew over 50 and its much less expensive between 40 and 90 less than if its fulfilled from a Fulfillment Center<\/a> that helped with that forecast target announced the retirement of its stores manager. David . Thank you courtney reagan. Time now for a news update lets get to sue herrera back at our headquarters heres whats happening at this hour. A key moment from last nights democratic debate involves a dispute between Bernie Sanders<\/a> and Elizabeth Warren<\/a> who claims sanders told her a woman couldnt win the presidency in 2018 sanders used his time to deny the allegation anybody who knows me knows that its incomprehensible that i would think a woman couldnt be president of the United States<\/a> warren said the male candidates on stage had lost ten elections but the women, none. The faa is investigating what led a delta flight to dump fuel over a densely populated area Near Los Angeles International Airport<\/a> just prior to an emergency landing. Vapors from the fuel caused minor skin and lung irritation to 56 children and adults. Residents of the philippines lined up to receive relief supplies after a volcano eruption near the capital. Tens of thousands have fled their homes. So far no injuries have been reported youre up to date. Carl, back downtown to you sue, thank you very much. After the break this morning, what todays phase one deal means for your portfolio we will check in with byron wie when squawk on the street comes back with a nationleading 150 billion commitment 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. The socalled forced technology, there will be heavy lifting on mothat will be done n phase 2. Dow and s p record highs once again as we await the signing of phase 1 in about an hours time. Joining us this morning, tbyron wien on what today means good to have you back. Good morning always good to be here with you, carl. One of your surprises for the year, the list of surprises that you publish every year is that there is no phase 2 although d kudlow argues negotiation wills beg begin as soon as this signing happens. Anything change for you today . No. Im sticking with that surprise. Phase 2 is very complicated. The chin eaese would have to stp confiscating intellectual property maybe well have a phase 2 after the election i dont think well have one for most of this year. Have you been impressed by any of the details that are filling in ahead of this signing . No. I think phase 1 is coming in pretty much as i expected. Its basically a transactional deal, a deal where pork and soybeans are traded for the suspension of tariffs, so i dont think there are any surprises in phase 1 we are looking at things like purchases of manufactured goods as you said, Financial Service<\/a>s, energy, ag, 100 ownership in financials is important. Kudlow thinks it will add half a point to gdp and maybe that offsets the damage we get from boeing 737 max what would have made it more important . Optically would it have been better if there was a signing of the president s or Something Else<\/a> that you think was reasonable, possible to attain, but is not in there today the big issue is confiscation of intellectual property china has to agree to suspend any efforts to do that thats part of phase 2 and that isnt in phase 1 theres an illusion to it. Basically phase 1 is a deal, a trade deal it is not a policy deal. And some of the policy measures that need to be taken arent in it so, byron, weve had officials on our air and we havent seen this 86page in the translation yet. We dont have those details. Theres been a lot of commentary that there are ip theft protections that are within this phase 1 deal you dont think that will go far enough yeah. I mean, china is determined to be the leader in Digital Technology<\/a> by 2025 and i dont think they can do that with Indigenous Development<\/a> on their own so, therefore, my belief is that theyre going to hold back on the agreement of not to confiscate or steal intellectual property maybe im going to be wrong about that but i dont think in phase 1 from what i know about it and we havent seen the language yet. In phase 1, i dont think theyll deal directly with that issue. So does that mean we continue to see this decoupling within tech were getting reports simultaneously that there will be greater crackdowns on the supply chains. What does that mean for tech in this country look, i think decoupling is going to be discussed more and more as the year goes on i think right now were headed to a situation where there are going to be two different 5g systems. I think thats not good. I think i think decoupling is a dangerous concept. My belief is that the world is an interdependent place. Interconnection is important i wish china and the United States<\/a> could cooperate on technology instead of being adversaries. Lets talk markets for a minute here. We started the year with the biggest Cap Companies<\/a> just aggregating more capital all up over 7 the nasdaq very, very strong some see some analogies to 20 years ago or a little more than that are you worried at all am i worried . Im always worried i know youre always worried but multiples are higher than theyve been in a long time. We do have a momentum market here thats developed. Is it more concerning to you perhaps than it otherwise would be given youre always worried no. I would say not. I think theres going to be a year my target for the year is 3,500 on the s p 500. I think you have to look at where the multiple is in relation to Interest Rate<\/a>s with tenyear treasury around 2 , i think the market can definitely sustain a 20 multiple and get to 3,500. And when it comes to whether its stocks, earnings, exports, confidence, does the fact that we have this signing today if you want to call it a truce that maybe doesnt address the longer term issues, do you think those things like confidence and exports and earnings can improve based on this . Look, i think the phase 1 deal is without question a positive theres no doubt in my mind about that and the fact that were not going to war with iran, at least not immediately, is another positive and the fact that earnings will probably come in generally on target or a little better than expected, thats another positive so so far the year is playing out in a favorable way and thats consistent with my view all right you have been pretty resolute, stubborn on that front, byron. Playing out well for you well check in with you soon thanks nice to be with you, carl all right wanted to check in on a case weve been watching for quite some time. Its closing arguments today in the state ags led by the state of new york and california versus tmobile and sprint you can see the ceo of tmobile and a man who has catapulted to a position of strength in the market theres the Senior Executive<\/a> at softbank one of the architecting behind this deal as they walked into Court Earlier<\/a> this morning were not going hear from the judge for some time. Unclear whether it will be a number of weeks or perhaps more than a month, month and a half before he issues his decision. Going into this trial, i would say most of the belief was that the states would conceivably prevail. Not sure how much thats changed. It has changed a bit at least based on unscientific survey of those watching this closely that i speak to they were encouraged and hope the judge will approve the deal by the fact he was thoughtful in terms of the questions he asked. They were happy with the performance of the ceo of dish who was a key witness for the idea of creating a fourth nationwide competitor in 5g wireless around the country with money being spent by dish on that wireless product. They were encouraged by the fact that the judge dispensed with posttrial motions none of it means its an easy road here or that anybody puts it more than 5050 that the state ags dont prevail. Important to keep in mind when you look at this, even when we hear from the judge its going to still require if you were to say yes, the California Public<\/a> Utilities Commission<\/a> to actually approve the deal. They still havent done that and are likely to wait until they see what the court does because why even bother if, in fact, the court says no. If they do say yes, you have renegotiation of the price that ive been talking about. Well have to get through that we have a ways to go, morgan regardless of whether they even get the decision they certainly hope for after arguments are done whats so incredible is two men that orchestrated this deal are both either out of their positions or poised to leave their positions and depending on how the court does rule here, i imagine that leaves a lot of question marks too it does as you point out, no longer the ceo at sprint. Ledger will step down in the spring tmobile far bettered positions if they dont go ahead with the merger sprint will be the key question as to just how damaged that is and what it will mean for that company and for softbank its 80 owner lets look at whats coming up on squawk alley. Thats serious because john ledger is in a suit and tie. You dont see that every day well continue to countdown to the signing of this phase 1 trade agreement with china well vealofhengs cor l t ale coming up. I wish my Trading Platform<\/a> worked like that. Well have you tried thinkorswim . This is totally customizable, so you focus only on what you want. Okay, its got screeners and watchlists. And you can even see how your predictions might affect the value of the stocks youre interested in. Now this is what im talking about. Yeah, itll free up more time for your. Uh, true crime shows . British baking competitions. Hm. Didnt peg you for a crumpet guy. Focus on what matters to you with thinkorswim. To take care of yourself. But natures bounty has innovative ways to help you maintain balance and help keep you active and wellrested. Because hey, tomorrows coming up fast. Natures bounty. Because youre better off healthy. Is beyond meats major rally beyond believe one chart says it might hit a wall find out more on cnbc. Com. More squawk on the street coming up. janine i used to be a little cranky. Dealing with our finances really haunted me. Thankfully, i got quickbooks, and a live bookkeepers helping customize it for our business. live bookkeeper youre all set up janine great vo get set up right with a live bookkeeper with intuit quickbooks. Welcome back to squawk on the street. Lets head over to Rick Santelli<\/a> for the santelli exchange. Chris . Good morning and thank you. I would like to welcome my guest, jerome schneider, shortterm analyst at pimco. Leg lets get to the main topic as we see the president sign phase one. What do you think . A lot of market has positive inertia and we have to see the patterns, Industrial Production<\/a> getting 2 billion of actual forces coming back into the economy and that will be a focus point for investor sentiment, not just the quarter or so but over the next two years as it felters back into the economy in the form of cap x and other things growth focusing on growth. Bringing money back in for investment i will go with the simple answer, larry kudlow, i agree with you to me i think the fact we were able to put them in the penalty box for close to two years like the aggressive hockey player that commits a lot of fouls, just doing that. Lets get to the repo market thats the restory for 2020. Fed is trying to come up with ideas because they know what theyre doing is not a fix, its just some salve they put on it to get the market through, satisfy the hedge funds addicted need for overnight liquidity. Where is this going to go . Overnight we have to look at the liquidity in the market. We saw it atrophy in december. Now weve seen additional liquidity, adding 350 million now all of these exotic sponsored repos. But liquidity will be transient and this is a fact investors have to focus on it could be good or go away. Its only transient like hungry village will look at food as transient we have big institutions devouring it and the source of liquidity is distorted due to the aftermath rules of the credit skries. Undoubtedly the structure of the market has to be addressed and the feds will do that. Its also a form of regulation that will happen over the next four years but more importantly the feds purchase of the tbill is going against the saber, its pushing down yields as they push thousands of tbills every month and we have to think about what that does to savers and lowering rate that creates a credit appetite and risk appetite. The big picture is optimism prevails in this marketplace uncertainty is everywhere. So while we simply have this optimism in the market because risk assets continue to grow, we have to be a little more kashs in terms of risktaking were going because of the changing liquidity conditions and nothing sums up what youre saying more, jerome, think about the southern economies of europe and negative rates and the fact italians had an auction and flying sovereigns off the shelf like no tomorrow why. Ultimately you have to look at the risktaking being done. Puts a green light on buying anymore anything because everything is being bought by or chased by more than one investor. Coming back full circle, its a high risk market and the only reason you take risk is you believe it will work otherwise be defensive with a diversified portfolio. Thats how we think about. Jerome, thank you for joining us today back to you. Thank you very much, Rick Santelli<\/a> were waiting for the live china agreement that is scheduled to take place in a little less than an hour s p is trying to close in now at above 3,300 where we finally reached a day where the market we can put to rest a year and a half of trade tensions, even if this agreement doesnt answer some of the harder core concerns about chinese behavior at max baucus has said in the past hour, largely transactional. But they will continue to modify behavior, we hope. And we will be back with live coverage of todays historic day in d. C. In a moment. I can. The two words whispered at the start of every race. Every new job. And attempt to parallel park. electrical current buzzing each new draft of every novel. typing clicks the finishing touch on every masterpiece. newborn cries it is humanitys official twoword war cry. Words that move us all forward. The same two words that Capital Group<\/a> believes have the power to improve lives. And that, for over 85 years, have inspired us to help people achieve their financial goals. Talk to your advisor or consultant for investment risks and information. Good morning, it is midnight in beijing and 11 00 a. M. At the white house and squawk alley is live. Youre in the final throes of a very porn deal, and i guess you can say one of the most important deals in trade ever. Wa very porn deal, and i guess you can say one of the most important deals in trade ever. Ea very porn deal, and i guess you can say one of the most important deals in trade ever. Aa very porn deal, and i guess you can say one of the most important deals in trade ever. Ra very porn deal, and i guess you can say one of the most important deals in trade ever. Very porn deal, and i guess you can say one of the most important deals in trade ever. Very porn deal, and i guess you can say one of the most important deals in trade ever. Aa very porn deal, and i guess you can say one of the most important deals in trade ever. Very porn deal, and i guess you can say one of the most important deals in trade ever. Very porn deal, and i guess you can say one of the most important deals in trade ever. Aa very porn deal, and i guess you can say one of the most important deals in trade ever. Rf a very porn deal, and i guess you can say one of the most important deals in trade ever. Ef a very porn deal, and i guess you can say one of the most important deals in trade ever. No ones ever done this before we never had a u. S. Trade deal of anything like this. We just achieved a breakthrough on the trade deal, and we will be shining it very shortly. This kind of deal and this kind of cooperation did not seem possible two years ago on january 15th, residing monster, a big, beautiful monster. Its wednesday morning, welcome to squawk alley. Im Carl Quintanilla<\/a> at the new york stock exchange. The president is set to sign an Historic Deal<\/a> with china in a few minutes. We will bring it to you live when it begins in the meantime we have every angle covered at the end of that event. Yunus yun has reaction bob pa santi will join us on what","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia902800.us.archive.org\/6\/items\/CNBC_20200115_140000_Squawk_on_the_Street\/CNBC_20200115_140000_Squawk_on_the_Street.thumbs\/CNBC_20200115_140000_Squawk_on_the_Street_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240716T12:35:10+00:00"}