All that and so much more on making money. Charles President Trumps big beautiful monster, phase one of a trade deal with china is officially in the books. It is a big win. We know now there will be big repercussions if beijing doesnt deliver on its promise. Edward lawrence joins us from the white house to lay out more details of the agreement. Edward . Reporter the report right here goes into effect in 30 days now but within 60 days, with a notice from either side this report can be canceled. U. S. Trade representative Robert Lighthizer says this is a very detailed trade agreement. He says that it is a binding one, because every chapter starts with china shall follow through. Now, every chapter again starts with that, key phrase there. Now one of the key point in this, protecting intellectual property. The scope of that section is huge, according to u. S. Trade representative Robert Lighthizer. He says that it deals with breaching of systems to take in intellectual property. It deals with hackers. He says it deals with current and former employees who are trying to steal companys information. It is again a very specific agreement. The agreement outlines Financial Services and how that is going to be expanded market. For instance, Credit Card Companies like visa and mastercard would be allowed to do transactions within china now. A big part of this too is equity. China wouldnt allow u. S. Companies or any company in china unless the equity was enough within china to be able to meet their standards. Well, now, a company can use equity outside of china as example of how they are fully funded there. Can work inside of china. Now the enforcement in this agreement comes to a resolution in 90 days. It give as specific timetable. It is also very specific on steps that are going to happen. This enforcement works both ways for china and u. S. , on agriculture. The president s really happy. Listen to this. They will be spending much more than 200 billion over next few weeks, including 350 on agriculture alone. Some of the numbers i wrote down, on manufacturing they will be spending 75 billion they will be putting into our country, okay . They will be putting into our country, 75 billion on manufacturing. 50 billion worth of energy. That is great or our energy people. We were no the number one people in the world. Now were the Number One Energy group in the world. Were bigger than saudi arabia. Were bigger than russia. Reporter that is a specific timetable there that the u. S. Trade representative can follow to make sure china is following through. In this china will not be labeled a currency manipulator. But it lays out transparency steps china has to take in order to keep that label of currency manipulator off the books. Back to you, charles. Charles edward lawrence, thank you very much. As we move on to phase two i look forward to continued it forge future of greater harmony, prosperity, really commerce and far beyond commerce between the United States and china. This deal is phase one. Well probably conclude it with phase two. We dont expect to have a phase three but, it is something that we all want to get done. And it will be a tremendously big deal. This is something that will be so special, however, to our manufacturers, our farmers, our bankers, our service people. Nobodys ever seen anything like it. This is the biggest deal there is anywhere in the world by far. Charles President Trump saying this Historic Deal will lead to world prosperity and peace, while beijing is pledging to stop i. P. Theft, currency manipulation, a lot of folks warning about other things. In this also chinese counterfeit products continue to pour into the United States. Think about it, folks. Things like guns, drugs, even drivers licenses. So the worlds two largest economies have gotten together, weve signed a monumental watershed trade deal. The guy there from the very beginning from the hudson institute. Senior fellow Michael Pillsbury, by the way got a shoutout from President Trump today. This is your second shoutout. You have been something of a real guiding hand, right you . Never really talked about the thing in superlatives or gave it accolades that were unwarranted. By the same token you said it could be done. Were halfway there. Lets not forget, charles payne, who covered this in great detail over the last two years. Charles no, we wont forget that. The question is will china deliver . Yes the big question is, will china deliver . Will they go straight. Will they stop cheating . Based on the remarks there are three chinese comments from ambassador sway, the hardliner. Then liu he, and then letter from xi xinping. All three made very interesting point, charles. All three said the trade agreement has consequences for Global Growth and global peace. They seem to want to turn this agreement and fact of the cooperation to get to it, into a kind of a message that the u. S. And china are now going to cooperate. I was quite surprised by this. There was no nationalistic harsh language at all from the chinese side today. Charles lets go down that road. President trump said something similar that caught my attention. You know he said it would be dangerous if we continue the relationship the way it was going. Yes. Charles he said we will have stronger world peace. Were we heading towards a place of potential Armed Conflict over our lopsided trade relationship . I think the overall u. S. China relationship is included disasters. Korean war in 1950, happened basically by miscalculation. We didnt think they would intervene to protect north korea. They did. We lost about 30,000 americans in that war. Been a whole series of missed misunderstanding. And what i hope is being headed off today the deterioration might even get into military conflict. The president called us in afterwards for a little Smaller Group session. I think he is very concerned about the growth of Chinese Military power. As you know, charles, there is no arms control agreement between the u. S. And china. President trump now several times proposed that the next time we do an agreement with the russians, the current one expires just a year from now, he wants china to be part of it. The chinese have agreed to talk about the idea, can there be a threeway Nuclear Arms Control agreement. That too would be historic. It takes confidence between the u. S. And china to do that. First the chinese for the last decade said no, well not be a part of any arms control agreement. Their military forces are quite powerful. Theyre 80 of our economy in their strength. The military is roughly half the size of our military. We dont want an arms race with china. That may be what we headed off with this trade agreement. Neil that is powerful point, no one brought up, michael. I have to say with the new weapons or supersonic, subsonic weapons, putin tearing up the constitution in russia. We need all the countries together at a table. The space force is part of this. The president s new space force, no secret is focused on china. China will have more space launches that an america this year. Theyre active in space, military and civilian. We want to head off a space race with china seems to me, china. Charles costs less to fire off a rocket to the moon than making a movie about the moon these days. It really does. Before i let you go, michael, phase two. Yes. Prospects for it. The major hurdles, how can you handicap that for us . The idea of oneonone between xi and trump to get phase two started. That is very important. That will probably succeed. The second part are the subsidies of main target of phase two. We dont know exactly which Chinese Companies are subsidized by the government. We know it is massive. Billions, hundreds of billions even but if you saw the recent fortune 500 listing, china now has more Large Companies than we do. There are 129 Chinese Companies, compared to our 110 on the list. Charles the thing, michael, you and i both remember at one point we thought japan would overtake us because of all those big companies. Some were modern day potempkin villages. I have to let you go. I appreciate you rushing over here. Youve been spot on. We appreciate your wisdom throughout. Well still need you as you walk us through phase two, Michael Pillsbury. I get to come on the show again, charles . Charles you do. All right. Charles dow, nasdaq, s p, hitting alltime highs. Earnings season is ramping up. Right now more than 80 of the names in the s p 500 are trading above the 200day moving average. Big earnings beats for biggest most important industry names, helping to power the market higher. You have a shift in attitude with china trade. It is tough finding bargains. With many stocks priced for perfection it will get real dicey. How do we navigate this . To figure it out, ryan payne, Payne Capital management. Were not affiliated. Brothers from different mothers and ryan. First talk about the impact of the trade thing. It was ceremonial. News was already out to a degree, there has to be sort of a sigh of relief . Absolutely. This is where capex steps in. Companies last year said see how this goes, before they make decisions buying again. This clarity will be huge for gdp. Which will keep the market rocking and rolling, charles. Charles jason . You know, i think the backdrop of all of this, is still a friendly, liquidity providing u. S. Central bank that is kind of the final front ear of this permabullish market or what seems like it. Of course, signing today is clearly a bullish factor and whats even more bullish factor, larry kudlow talking about there will be tax cut a few months from now. Yeah, were talking about phase two. It would seem fundamentally the coast is clear. There are other things we need to look at. Right now, bullish. Charles that is kudlows dream. I dont think the markets believe that will happen this year. We know it es early into earnings season. So far so good. I would like to point tout people, unitedhealthcare, larger than goldman sachs. Significantly larger than target. They had a report today amazing. 61 billion revenue in three months. Five billion in profits. Almost 300 bill dollar market cap. The number three weighting in the dow. The number one weighting in the S P Health Care sector. It is driving up this market all by itself. It underscores economy. Goldman sachs i think botched release of earnings, they didnt explain how the earnings missed. That stock is higher. Revenue is great. They will get through the malaysia thing and charges one time hit. I look at united health, you mentioned it. Trading discount to the market. We look earnings going out. All about earnings in 2020. Earnings are looking pretty good. Charles can we get to 14, 15 yearoveryear earnings by the Fourth Quarter . Almost everyone, on paper everyone says it is consensus, but when you ask every professional on wall street, heck no, that is too much, too much optimistic. That is why i love strategist. They almost never get it right. That is the most bullish expectation for q4, charles payne. I love it. Well see. Charles Weekly Mortgage applications up 30 . Homebuyer demand hitting the highest level in 11 years. Part of my investment thesis, household formation. We seen it with permits. I think people are out there, building apartments, number one rated in long time. All we need for millenials to move out into these houses and apartments. If we get business invests higher to ryans point, we get homebuilder or housing investment, both which have been drags on gdp for a long time, if we turn those around, what kind of potential is that for the economy and markets . You know, i dont think well see another 25, 30 year in the nasdaq or 20 something in the s p in 2020. Mainly because it is an election year. Secondly because we did that in 2019. However, housing is interesting because while the stock market is trouncing its seven, 2018 alltime highs, housing is not. The big fundamental picture that housing is still undervalued massively relative to the overall size of the economy. Charles what is not necessarily undervalued. 80 of the market now above their 200day moving average. We were in a similar position in early 2018. We peaked in late january. Other things are going on. Including President Trump declaring war on global elite at davos but how much more choppiness makes market, how more vulnerable make the market shortterm . S p 19 times forward earnings. It is not cheap anymore. When you break out value from growth, value looks pretty cheap. If you look at financial stocks here, look at energy stocks, all are trading cheaper multiples. Im always provocative you look overseas. Valuations are amazing overseas. Dividend are great. Growth rates are looking pretty solid. Charles ryan, jason, two of my favorite guys, thank you both very much. We appreciate it. Thank you. Charles well follow markets throughout the hour. It is momentous day, whether buybacks be the floor for this rally. A lot more money comes pouring into the from corporate coffers. Speaker pelosi stopped dragging her feet. She sent the articles of impeachment to the senate. Florida congressman matt gaetz is here later in the hour. There is another landmark trade deal you heard from President Trump, usmca. What will finally happen to make that reality . It is huge. It might be bigger than china. It is next. Re prepared for the future. Surprise we renovated the guest room, so you can live with us. Im good at my condo well planned, well invested, well protected. Voya. Be confident to and through retirement. Most people think as a reliable phone company. But to businesses, were a reliable partner. We Keep Companies ready for whats next. man we weave security into their business. second man virtualize their operations. woman and build ai customer experiences. second woman we also keep them ready for the next big opportunity. Like 5g. Almost all of the fortune 500 partner with us. woman when it comes to digital transformation. Verizon keeps business ready. This rounds on me. Eat. Hey, can you spot me . Come on in. Find your place today, with silversneakers. Included in most Medicare Advantage plans. Enroll today by calling the number on your screen or visit getsilversneakers. Com here, it all starts withello hi . How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone wifi up there . Uhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your local xfinity store today. And now for their service to the community, we present limu emu doug with this key to the city. [ applause ] its an honor to tell you that Liberty Mutual customizes your Car Insurance so you only pay for what you need. And now we need to get back to work. [ applause and band playing ] only pay for what you need. Liberty. Liberty. Liberty. Liberty. Charles so with phase one of the china deal in the books, the senate says it will likely approve the u. S. Mexico Canada Agreement by the end of this week. We are, looks like going to be able to process the usmca here in the senate this week. That will be good news for the senate and for the country. And something i think we have broad bipartisan agreement on. Charles joining me now, former Commerce Department deputy director, chris garcia. Usmca keeps flying under the radar. Our trade relationship with mexico and canada got even better this last year. They are number one and number two in terms of partners. Just how big is this . How big is the potential . Charles this is big. It could even be bigger as you said earlier than the china deal. The fact we have north of 700 billion worth of trade each year with canada. North of 670 billion of trade with mexico. What most folks dont understand the linkage between the u. S. Mexico Canada Agreement, usmca and the u. S. China deal. One is designed, the u. S. China deal, really enforce and crack down on the taking advantage of the night by china, that happened over last couple decades. Usmca is designed to increase trade between u. S. , mexico and canada. And were reorienting the supply chain away from china back to north america. That is another key point not being reported enough but of course you got it covered here on your show. Charles we know mexico has been a huge beneficiary of that. Other countries in asia, particularly vietnam on that end. It just feels like wow, these trade deals, one after another. I think japan is still in the works. Overall, i know there were a the lot of naysayers, a lot of doubters out there, it feels like it was worth the effort . Absolutely. You think about, what we, what weve experienced over the last couple decades is systemic gutting of u. S. Manufacturing base. That is something that President Trump recognized coming in, running for president as a businessman, we needed to rebalance the Global Trading structure. That is precisely what he has done with the u. S. Canada mexico agreement, u. S. , mexico, Canada Agreement as well as u. S. China phase one trade deal. As Michael Pillsbury said, there are a couple things that make this specific u. S. Mexico Canada Agreement similar to that of china. They address Structural Reforms and they are fully enforceable. Were expecting americans to be appreciative what happened and bipartisan support led to this place today. Charles maybe not all americans. There is, chris a lot of bipartisanship but not unanimous the usmca got