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good morning i am jon fortt with david faber and morgan brennan carl has the morning off we begin at the g20 summit robert lighthizer expects the meeting with china's xi to be a success this weekend eamon javers is there live now, joins us with the latest eamon? >> reporter: good morning, john. the question with that statement from lighthizer, what's the definition of success? that's what everybody here and around the world wants to know if the u.s. china trade kiss putin is at center -- dispute is at center stage. it kicked into high gear, all the leaders are in one place

twunat one time this is putin greeting the crown prince of saudi arabia look at this greeting. is this a bro hand slap, a low five instead of a high five, but it is a friendly, warm greeting between the two leaders if you can see it play out. clearly they're happy to see one another, even though there are others in the room with them not necessarily happy to see them or to appear in pictures next to them there's a lot of diplomatic dancing going on here, but we're waiting now to see more diplomatic occurrences the official g20 summit is in closed session for what they call working lunch and removed all cameras from the room. the next thing we see is likely to be president trump and japanese prime minister shinzo abe who had a good working relationship in the past couple of years, we expect to see them on camera at some point in the

afternoon. we'll keep you up to speed on the developments that we have from here. >> eamon javers, thank you i'm sure we'll see you soon again. with markets largely flat, our next guest not expecting big developments out of g20. with us now, professor siegel. great to see with you today. >> happy to be here. >> in terms of the u.s., china meeting tomorrow night from a market standpoint, what would be the definition of success? >> well, clearly the market wants resolution of this chinese problem. i don't think it's going to happen at this meeting i think the history is honestly trump doesn't like multi lateral meetings or conferences. he is like a one on one guy and likes to announce things like that it is also he is more of a

brinksman, in other words, let's go close to the january 1st deadline rather than a month earlier. that being said, if president xi and president trump exchange just kind words, we're working on the problem, i mean, that's encouraging certainly to the market, but i would be surprised, and listen, i'm prepared to be surprised when president trump is entering into any negotiation, i wouldn't be surprised if we got anything definitive between china and the u.s. out of this meeting >> professor, how should investors be prepared to be surprised, how should they be positioned given how big this weekend is potentially >> i think what's interesting is that the words of jay powell, fed chairman on wednesday, have sort of taken that worry of fed overtightening down a number of notches. what's next on the agenda? it is the tariff war or

potential tariff war with china. clearly any sort of resolution there is going to be positive. let me also say the market expects it it's not a slam dunk but i think it is probably 80 to 90% baked in so any adverse developments, and i don't expect any particularly to come out of the meeting would be a great disappointment, certainly if it isn't solved by the end of the year. if it isn't solved by end of the year, the market will tolerate extension of current levels without the ramping up, but it certainly would be getting nervous if it didn't see progress there >> given that, if we don't get any definitive statement or movement in trade from g20 over the weekend, what matters more

small signals or bullish signals out of growth stocks, including workday, vmware. there have been some questions about how long lived that would be, but thus far a lot of the stocks are showing increasingly positive signals about what they expect for 2019. >> yeah. you know, we saw trump this morning with mexico and canada and being very conciliatory, very positive, which is a good sign, and i think the market is hoping for that same sort of conciliation with president xi, saying we're working on problems, and he has those words, we will reach a solution, that's going to pump up the market clearly, but certainly i would be surprised if we saw that definitive solution

actually reached at this point i mean, they were miles away on so many things in the original set of negotiations. but clearly the market is hopeful for a positive tone coming out of the interactions >> professor, let's assume we get what some expect you seem to be pointing to, assume we go to 25% on the 200 billion and don't go anywhere on other imports from china and we got powell this week. where do you stand on the market given that scenario heading into next year? >> i mean, there's a lot of uncertainties facing the markets. political uncertainty when the democrats take over the house, so there's a lot of -- what

agenda can be passed now there are going to be investigations, trump is going to be on the defensive what about his program going into 2020. first of all, that's a little bit longer term certainly. we have a mature business cycle here, you know. >> investors like political gridlock, a lot of times they prefer it, don't they? >> well, it likes a gridlock but listen, if you take the betting markets, there's a real strong problemability democrats take the -- probability that the democrats take the senate and the house. now you get to unraveling of the corporate tax cuts which i believe are a major source of the rally that we have seen over the last 12, 18 months in the market, so it is a concern going forward. again, it is two years in the

future i think trump's position, now that he can't blame powell, we'll see december 19th at the meeting, but can't blame powell for a bad stock market because if the fed has taken the food on the accelerator, everyone is looking at him and tariffs and he doesn't want to be the cause of a bear market in 2019 either. i think the pressure is on him more than ever to come to an agreement with china on the trade from a political standpoint, too. >> professor, before we let you go then, given a lot of uncertainty, do you think we have a santa claus rally where are you on stocks short term >> i mean, we talked about the tech sector, they were beaten down, all stocks were beaten down things are not what i would call wildly undervalued but they're

not overvalued, they're fair valued for long term investors, and if we get continued good signals, even without definitive agreement in g20, if we get good signals through the end of the year on getting an agreement, i think that might be trump's christmas present to the stock market this year, and that would be positive obviously. >> jeremy siegel, thanks for joining us today >> thank you coming up, shares of vmware are up the ceo trpaick gelsinger joins us in a few minutes. stay with us "squawk alley" continues eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable.

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welcome back marriott shares are down 5% after they disclosed a hack of the starwood reservation desk, reservation and payment information at risk. aditi roy has more on the breach >> hi, jon the hotel chain announces up to 500 million guests with reservations could have had data compromised, including passport information and that it has been going on for four years

potentially. the company says for 327 million of the guests, the hackers had access to a combination of names, mailing and e-mail addresses, phone numbers, passport numbers, spg account information, dates of birth and details about reservations some also have payment card information stolen, but it is unclear whether they have the encryption information needed to use the cards. marriott says they received an internal alert about possible breach of reservation database on september 8th the hotel chain says hackers copied and encrypted information and tried to delete it marriott was able to decrypt it, and learned guest data was breached it turned out the unauthorized access began in 2014 marriott acquired starwood in 2016 in a statement, the president and ceo saying we fell short of what our guests deserve and what we expect of ourselves

the statement says the company is phasing out the starwood systems and improving network security upon news, the attorneys general for new york and maryland are launching investigations back to you. >> all right i think a lot of analysts are trying to figure out what the financial implications would be. too early to say at this point i don't think we heard anything from the company on that front >> reporter: yeah, we are hearing about analysts coming out with short notes now, and in a nutshell, most of them are saying it is too early to tell and that history shows other data breaches at big companies, while there are short term effects to stock price and things, that long term usually those companies end up being unscathed. >> yeah. yahoo or target or others. thank you. "new york times" out with another development in its investigation of facebook.

julia boorstin is in l.a. following the story. >> reporter: this is the latest criticism of facebook's management "new york times" reporting that coo sheryl sandberg asked facebook's communication staff to dig into the financial interest of george soros, following his public criticism of the company soros called facebook and google a menace to society in a speech at the world economic forum in january. sandberg reportedly sent an e-mail to staff asking if soros had shorted facebook stock this comes after facebook was criticized for using controversial d.c. research firm definers she said she was not responsible for hiring the firm which circulated information about soros groups, and acknowledged some of the work for facebook crossed her desk facebook responding to the latest "new york times" article. mr. soros is a prominent

investor shall we looked into his investments and trading activity related to facebook sheryl never directed research on freedom from facebook but as she said she takes full responsibility for any activity that happened on her watch the drip of negative headlines is drawing attacks scott stringer tweeting that facebook's board should establish independent leadership now and it is worth noting facebook shares are up today, but they are down nearly 35% from the july peak you see their shares are up nearly 1%. back to you. >> julia, on its face, seems not surprising a company might ask if somebody is criticizing that company whether they have a short position in it, but i guess this goes to an overall narrative of how facebook has responded to both criticism and

perhaps vulnerabilities, too, not by addressing the issue perhaps but by defending itself. >> reporter: absolutely, i think jon, you're right. he is a prominent short seller makes sense when you hear him attacking the company, for her to say is he attacking because he is going to profit on the attacks. i think the issue is the handling of this the fact there's been a slow drip of news, seems every week another headline about management and how they're responding to things, especially when it comes to things like definers when exactly did facebook management, specifically sandberg and zuckerberg, know that definers was doing things, sending outcritical informatio about soros to journalists, and how it all went down it seems like what "new york times" is really criticizing is

management and handling of the issue and questioning the time line in whether sandberg should have come out earlier and mentioned she sent that e-mail a couple weeks ago >> julia, thank you. as we head to break, it is the last trading day of november look at the biggest gainers on the nasdaq 100 this month symantec and starbucks leading the way. and pat gelsinger sits down with us lling foowthe company's earnings more "squawk alley" straight ahead. who says our bank isn't tech enough? everyone, look at your phones. the design thinking, the digital engineering, security, blockchain, and we will be first to market! yes. when we do we launch? unfortunately, in 2 or 3,

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shares of vmware higher by 1.5% after posting a top and bottom line beat, and raising the full year outlook to the surprise of some analysts on the

stree street joining us, the ceo, pat gelsinger. >> good morning. thanks for having me on the show today. >> glad to have you with us. i want to dig into the cloud week aws and other things between the innovation around these aggressive moves in hybrid cloud, it seems a big theme this year is flexibility. hybrid for you guys is more than 10% of revenue now, growing at 35%. what advantage do you see in having been telling the hybrid story earlier than a lot of other names? >> clearly we have been on the same position that there will be a hybrid future. whether it is latency or cost driven that will remain on premise. the right answer for customers not just near term but long term is hybrid cloud, bringing the best of private and public

together in a seamless environment. as we have been on that journey for a number of years, our technology is well positioned, over 4,000 cloud partners. expanded a partnership with ibm at our vm world in barcelona the partnership with re-invent, with outpost the idea that amazon now has the same hardware, same operational model on premise gives us another position of strength in the hybrid strategy. i think you were at re-invent as well, the energy and momentum of the partnership was evident everywhere you were. >> yeah. i mean, first amazon seems to be telling us that brick and mortar is dead, then they seem to tell us you don't need to own servers, now they're selling servers. you mention long term with hybrid some initial messaging about the

cloud is hybrid cloud is a half measure, temporary solution for people not comfortable jumping all in to the cloud. the narrative seems to have shifted. hybrid is growing fast now how long will that extend? do you think it becomes a permanent part of the cloud story and can grow as long as cloud in general grows >> i do believe that, jon. i call it three laws, laws of physics. it takes time to get there and back if you have low latency work loads, they must be near where data and operations are. laws of economics. just costs associated with going back and forth, often you have the need economically to be closer to where data or usage is finally laws of the land, where certain geography and certain countries demand things to be closer or domicile in a certain

way. with new areas like edge and iot which brings new data closer to the edge, we see this idea of a hybrid world being a long term, decades into the future. that's why we said it is not a weigh station to the future, it is the future. as you have seen major announcements by every one of the cloud partners, many of them being our partners vmware and amazon taking a strong position this week with the outpost announcement, i think everybody is seeing that's right. it is a hybrid world into the future vmware is uniquely positioned to enable that for customers at scale. as you said, business results this week clearly demonstrated that. >> can there be that many switzerlands you positioned yourselves and partners with everybody. ibm trying to do the same with red hat. so many people trying to tell that story can all of them maintain that?

i wonder if you can maintain that i remember michael dell said that dell had a plan to let customers rent pardon wear on premise and connect to the cloud. now amazon is doingthe same. can you and others remain so neutral long term? >> well, i think it is a good question, jon. and with the vmware position, we have such a high market share and penetration into on premise data centers, we now have over 4,000 public cloud partners, the unique relationship that we have with ibm and this week with amazon, we announced with alibaba early this quarter, we think vmware is uniquely positioned then you add cloud health for multi cloud management, clear leader in that area, gives us the pull position where they see it as the next big thing

with that technology in place, we think vmware is in the front and in position to be sustainably so in the future. >> one of the big new stories is the database security breach at marriott obviously a lot of details and questions to be answered it is a high profile security situation that thrust us into the spotlight. as we become a more digitized world, more data is collected and scored security is ever more important. how are you thinking about that? >> i think we're sorry to hear about the latest breach with marriott fundamentally your question is exactly right. i call it tech super powers, cloud, mobility, ai, they're changing every aspect of society and business as that occurs, more of our personal life, business data, personal data is coming online

we as a tech industry must do a better job at creating secure infrastructure vmware strategy, we laid it out in two pillars one is intrinsic security where we have to build the security mechanisms directly into the platform, can't be add ons or figuring out how to bolt it together we must intrinsically build insecurity and second, most of security is chasing bad. finding that packet and running it down. we need to build ensuring good, using ai, that the systems learn what good behavior is and guarantees it and detects deviations from good with that we announced several major products, one just released that follows those principles i am out to disrupt the entire security industry. we fundamentally failed customers. i think the breach of today is

further evidence we must do a dramatically better job. >> real quickly, stock that tracks the performance of vmware is going away, dell class b shares is that good, neutral? what's your opinion? >> first, it is pat. >> we try to keep it formal. >> as we think about the dell relationship, we are thrilled to see this next step in their evolution. we have been a supporter of this transition now it appears we're on track for a positive vote on december 11 for dell to go public we believe the capital structure in a simpler model and one we're supportive of, has dell more aligned with vmware, we see good success for them, being a great partner of ours, giving us

independence, like the amazon partnership, and accelerating our growth we talked about the synergy benefit. we are excited about the next step in the relationship and think we're well positioned with them and broad ecosystem for a unique strategy in the industry. >> finally a question on air watch. as smart phone penetration reaches pretty much saturation in a lot of markets, i wonder the impact of that on your businesses that are about mobile device management. how do you either up sell or continue growth when hardware growth isn't what it used to be. >> what we're seeing there, jon, this is a category, we call it work space one, integration of managing every device, whether it is mobile device, pc moving to windows 10, chrome books, that that is our strategy to be the unique platform that manages all of them. we're also extending that to the

edge even as human connected machines are moderating in growth, we see machine connected smart devices to accelerate growth, so we're extending the management solutions to cover more of these rugged eyes than edge use cases and see that to be explosive growth, maybe five years from now estimates say we go from 5 billion things and 8 billion human connected devices, but the 5 billion becomes 25 billion in the next five years. that's a huge incremental market and they all need to be secured, managed, connected, patched, upgraded, automated. that's where vmware's strategy is going >> emphasis on secured this friday morning >> yes. >> thank you pat gelsinger from vmware. >> thank you so much. dom chu has a look at the

action >> european stocks are closing mostly lower the g20 talks in argentina the stock 600 has the second consecutive month of declines. auto and financials lead the way to the down side deutsche bank shares under pressure as the police raids at the temperature headquarters continue this is all part of an investigation into some alleged money-laundering activities. that stock hitting a new all-time low, down more than 90% from the all-time highs in may of 2007. another weak spot, auto stocks, sliding 1% or so today shares of big german automakers under pressure amid reports that president trump could look to impose tariffs up to 25% on certain eu auto imports. traders will be looking for new developments or rhetoric on that this weekend

and italian budget concerns in focus for european investors. conte is working on a plan to reduce the deficit target for 2019 in a bid to lower tensions with the overall european commission. still, down 20% from recent highs going back to early may. back to you guys >> dom chu thank you. let's get to sue herera for a news update. hey, sue. >> good morning, morgan. good morning, everyone here is what's happening at this hour president trump joining leaders of mexico and canada to sign a revised north american trade deal on the sidelines of the g20 summit the president praised the new pact >> this changes the trade landscape forever and this is an agreement that first and foremost benefits working people, something of great importance to all three of us

here today ukranian officials announcing a travel ban, and searching the home of an influential cleric of russian orthodox church. they say the cleric is suspected of inciting hatred. in california, first the wildfires, now the flooding. evacuation orders issued for northern california region devastated by the camp fire. they fear it will loosen vegetation and cause mud slides. >> our hearts and thoughts out to those folks. >> absolutely. it is terrible >> thank you. when we return, microsoft versus apple facebook buying opportunity and when to get in on nvidia we have aswath damodaran

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you. facebook up today, a lot of people say it is cheap, but it is hard to navigate when you're in a swarm of potential regulation and situation they're in now >> i think facebook's biggest problems are political at this point in time, they have no friends on either side of the spectrum, and that's a dangerous place to be if you're a big company. i think facebook has shown it is inept at dealing with politicians and i think it's got to get better. fundamentally, if you look at the business, it is a solid one. it will be able to deliver advertising revenues but politics will get in the way in the near term >> and you don't believe all of this criticism will contribute to people leaving the platform in numbers that start to actually add up to be a concern for advertisers? >> i don't think so. i mean, i think people talk about leaving. but you look at the actual numbers of people leaving or becoming inactive, those numbers are small. it is not as if the competition

is kicking up. not as if there's some other social media company offering privacy and subscription account that's taking off. until you see something like that happening, i think the fundamental business would remain a profitable one. >> the worst performer in the dow is apple, down 19% is that a buy or steer clear given all of the concerns on shipments? >> you know what, apple is a company that for the last six years, the story remained the same it is a slow growth cash machine that gets most of its money from smart phone. unfortunately, the market seems to be manic depressive, getting overoptimistic after iphone release or overpessimistic if something happens. we're in a pessimistic phase now. i would buy apple. to me, cash flows are there, i can see it continuing to go back to the steady stake. i sold short on apple at 230 i would buy at 175, 180.

i think it is a good buy. >> you did buy it at 175 i wonder how you look at this horse race in at least stock terms between apple and microsoft for market cap crown not saying you bought microsoft, but it is an interesting contrast in businesses what do you think of microsoft given it hasn't had the manic depressive reaction from investors you described apple investors as having. >> i think you have to give credit for what he has done at microsoft. he took a company seemed to be past its prime and found new life by going onto cloud i think what you're seeing with microsoft is rediscovery of growth opportunities outside the windows office space where they were making almost all their money. i think the fact that microsoft has caught up with apple is another piece of evidence that markets go through cycles. the company is caught in a good cycle and can get pushed out

this is a race that's long term. not one company forever. >> what do you think of the valuation? >> i think i owned microsoft a long time. i bought it in 2013. it has been in my portfolio. it is not a company i jumped on last month, last year. it has been a solid investment because it is a company that while it is experimenting continues to deliver earnings from the cash cows and those are still windows and office >> back to apple, what is a fair multiple for that stock? >> i think to get to a fair multiple of microsoft and apple, you have to strip the cash out of the companies because the cash creates this cue. looking at p/e, you may think you're paying 20 times earnings rate but you're really not you've got 25% to 30% of the

company trapped in cash. and that earns 1, 1.5% rate of return you have to keep that cash separate from the rest of the company. take cash out of the equation. apple looks incredibly cheap the question with apple is how long can earnings from the iphone keep going. that's really the risk you face. it is not that you're not getting a great deal now with earnings, it is whether the earnings are sustainable and that's a long term discussion to be had as an apple investor >> professor, i have to get thoughts on former dow component ge down 6% you had the price target cut over at deutsche bank, the report in "the wall street journal" that was critical about the insurance charges there and the sec investigation under way. where do you stand on this now >> i own the stock, but i have to tell you, ge capital is an anchor dragging this stock down. i value ge as the sum of its

parts. when i did ge capital, it is minus 16 to minus 20 billion it is reducing the value somebody walked up to ge and said we'll take it off your hands for nothing, that would be a great bargain. i think the key for ge is it has to navigate that ge capital exit that's not easy. it is embedded in every one of their other businesses the aviation and power business, ge capital is embedded in those. it is difficult to extricate from those businesses. but if you look at the businesses themselves, it is three very good businesses, if you take the aviation business as prime three very average business in power and one horrible which is ge capital you look at the collection of businesses, i think it is a buy, but requires strong stomach for

six months or maybe a year ge capital continues to give it trouble. >> it is a buy on some parts, a lot of people say not on the ability to generate cash flow ordeal with the significant debt level. >> and that's my concern is that debt has to be and a hanavigate. it has enough valuable parts to be able to use to cover that debt, but it is a clear and present danger now >> aswath, thank you appreciate your time >> thank you >> aswath damodaran. after the break, president trump set to participate in a bilateral with shinzo abe. we go back to buenes aires next. well, with your finances that is. we had nothing to do with that tie. voya. helping you to and through retirement.

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there's brushing...and there's oral-b power brushing. oral-b just cleans better. even my hygienist said going electric could lead to way cleaner teeth. and unlike sonicare, oral-b is the first electric toothbrush brand accepted by the ada. oral-b. brush like a pro. welcome back to "squawk alley. the president is set to meet with shinzo abe in buenes aires. let's check back with eamon javers for more. hey, eamon >> reporter: this would be a fascinating moment between the president and shinzo abe they've gotten along in the past two years, but we haven't seen a major trade negotiating break through. they agreed earlier this fall to begin bilateral negotiations on a trade partnership. the united states pulled out of the tpp. japan set up its own agreement multi laterally with countries

that were otherwise in that, the comprehensive and progressive agreement for partnership is an agreement is tpp minus the united states. they're moving ahead with the multi lateral approach president trump preferring a bilateral approach, and he would like to start negotiations on goods and services in terms of trade with the japanese side as soon as he can so we'll wait and see where abe strikes a balance between multi lateralism on one hand that he has been moving forward with and the bilateral approach that president trump wants. sure to push him on that in the session we'll see in a few moments' time. >> a lot of moving parts, eamon. stick with us. we're going to bring in more guests scott clemens, and matt gold, former deputy assistant u.s. trade representative, gentlemen, good morning scott, i'll start with you how do you think it plays out for the markets? do we get a cease-fire

what happens if we do, what happens if we don't? >> all eyes are on buenes aires. if i had to handicap the outcome of the weekend, i am not expecting a big reveal, maybe big deal maybe kick the can down the road, talk a little bit more >> i want to stop you there for one second we have president trump here you can see him standing next to shinzo abe they're going to start to potentially do a little bit of talking here prior to their -- let's listen in. >> -- he won by a massive amount >> i'm not surprised at all.

i just want to say we have many things we'll be talking about, in particular protection, military type, also trade. we're doing a lot of business with japan in trade. it's a massive deficit between japan and the united states. it's coming down [ speaking in foreign language ] >> japan is buying large amounts of our fighter jets and we appreciate it very much. they are really working with me on trying to balance our deficit. it's substantial with japan.

we hope we'll be balancing it very quickly [ speaking in foreign language ] >> just in finishing, we're two countries that are doing very well in many different ways. our military working together having to do with north korea and other factors has been strong our partnership has been quite extraordinary. we will be together for a long time i think probably there's no time in our history we're closer and i'll be going to a tremendous event in japan i was honored to be invited.

[ speaking in foreign language ] [ speaking in foreign language ] >> so, once again, i'd like to congratulate you on your historic victory in the midterm election in the united states. [ speaking in foreign language ]

>> and as of now as you rightly mentioned the alliance between japan and the united states has become more robust than ever also this mere fact we are having another round of summit meeting on the margins of this g20 summit is actually the symbol of the robustness of our alliance [ speaking in foreign language ] >> translator: so every time we see each other we always have a very candid discussion and today i look forward to having another candid discussion with you on north korea as well as jap

japan/u.s. economic relations. >> thank you very much thank you. thank you all very much. i appreciate it, thank you thank you very much. ukraine. we don't like what happened. we're not happy about it nobody is. hopefully they'll be able to settle it out soon we look forward to meeting with president putin. on the basis of what took place with respect to the ships and the sailors that was the reason. thank you very much, everybody we'll be meeting with china as you know, yes, tomorrow. we've spoken and we're working very hard. we'll be meeting with president xi in a little while for the most part tomorrow i

would say would be our big meeting. our staff is working and a lot of talented people working larry kudlow's representatives are dealing with them on a constant basis we'll see what happens thank you. good questions thank you very much, everybody >> the president likes to take those questions sometimes at the last minute. you saw larry kudlow there he said good signs when it came to at least the idea of what they will be talking about tomorrow eamon javers, i believe you're still with us at the g20, came at the end of this back and forth of pleasantries between the president and prime minister abe of japan >> reporter: that's right. you heard the president responding to questions from the

pool reporters in the room i believe he was asked why it was he canceled the meeting with vladimir putin the president going on to saying because of the incident in ukraine. there's this dispute going on between the white house side and the kremlin side the white house side saying that's why the president canceled the meeting officials for the kremlin suggesting, no, no, no, they don't believe that's the reason at all they believe it was because of domestic political weakness in the wake of the robert mueller action involving michael cohen yesterday and that guilty plea we saw that made so many headlines. the russian side suggesting they are too weak to meet with president putin. you saw him responding today just saying, no, the only reason was because of the ukrainian incident clearly the president not happy here we don't know if we'll see a

handshake between the two. the president did say he thinks there are some good things happening on the trade negotiations with china. he praised larry kudlow and his team he was in the room watching. >> along with secretary of state pompeo, chief of staff kelly, and others eamon, we'll be checking in with you shortly. eamon javers, of course, in argentina for us >> let's bring our guests back in scott, expectation this is weekend and implications for the market >> my expectations is no big grand deal we delay the onset of tariffs, at the end of the day there is a middle ground i think will be clishd in the trade dispute will cease to be real volatility enhancement come the new year. >> matt, how would you expect this to play out in terms of a potential deal and what that would look like in the near

term >> nothing is really going to change we knew in september it was unlikely the trade war between the u.s. and china would not get any deeper i was saying as early as september when president trump announced the third round of $200 billion, the tariffs on $200 bill that would be the deepest the trade war would get. president trump understood that raising and reraising, reraising like a club scout playing poker with two sticks was not going to work with a superpower like china. president trump started trying to figure out how to dig out of the hole when they announce today or tomorrow probably they're not going to dig the hole any deeper, that won't be news t they've been in talks daily. that won't be a change either. there will be a handshake, the

theater of success, but nothing will have changed. >> gentlemen, thanks for joining us >> and with the dow near flat and the s&p up slightly, the nasdaq as well, that will do it for "squawk alley. time to go to scott wapner and "the half. we'll continue with our breaking news coverage of the g20, and we will discuss the markets right now with our panel of experts brenda is with us today, the cio of sand hill global advisers, tony dwyer is with us, chief market strategist. of course josh, jim and jon najarian as well let's get right into it, jon, and look forward to this meeting between president trump and president xi there he was with shinzo abe what do you think the market needs to get out of the weekend to make that determining factor whether we'll have that run into the end of the year? >> we just need to not have a negative