when asked ton conference call asked about the subsidies. he said they will be phased out. >> and they will be talking to her about that thanks for watching. you know what's coming up next >> it's closing bell >> hey, guys >> hey how are you doing? welcome back how are you doing? congrats on the new show >> thank you >> sarah has been giving me a lot of pointers saying it is going to get better. it will be okay. congrats to you guys as well have a great show. >> thank you very much we will see you again tomorrow from power lunch welcome to the closing bell everyone >> great to be fully reunited. >> i love the show and it's good to be reunited with my former partner and cohost despite all of the grief i give him.

>> there is an admiration. >> if you don't watch worldwide exchange there's wung thione tho know we are up a percent and more on the nasdaq coming up mark mobius is telling us whether he is buying into the rally. you'll hear from fed president for his take on the fed's rate hike and the president's recent comments on the feds let's get more we have details of the weekend trade truce. let's start with you these gains which are not as big as they were at the open >> holding onto about a 1% gain.

this three-month time out between the united states and china is welcomed news for investors. we saw that strong market reaction overseas as well. a strong close for europe and with a weaker dollar immerging markets aftergaining in the month of november. growth driven sectors training to the upside. kind of the opposite of what we saw last month names like caterpillar, the chip suppliers all posting gains. check out the move in amazon and microsoft also participating in this trade induced rally it is worth noting commodities are surging as well but strategists are exercising a certain level of caution referencing the april 2017

summit which initially diffused trade tensions others they 90 days simply can't enough time to produce a meaningful trade agreement trading below 3% throughout the day and oil holding onto $61 a barrel we'll keep a close eye on what the fed says later this week >> thank you very much for that. let's turn to the latest developments in the u.s. china trade war as they agree to hold off on escalating tariffs for 90 days we are there d.c. with the latest eamon. >> yes we are learning more detail on exactly what was there that deal that the two leaders made on saturday night the first thing that we learned is that 90 day clock that you're talking about does not start on saturday night according to larry. it actually starts on june 1st it gives us about another month more than some assumed in the

first 24 hours we are learning lighthizer will be the lead negotiator here. they are saying he will be taking the lead here it is committed to lifting tariffs immediately and he expects ultimately the tariffs on u.s. cars to go to zero for cars from the united states going into klichina. not sure when but they expect the number will end up being zero a few more clarifications as go through the afternoon. >> anything on what the chinese are saying is there any significance to that >> yeah. it is the middle of the night there. that might explain that. was on this morning explaining

some of the chinese take away here they didn't talk at all about the 90 day period of time. they put out aheadline that wasn't confirmed about the u.s. agreeing to allow clie thehinese students to continue to come in. it is something they put on this side of the ocean either both talking past each other a little bit we are having the opportunity to pin down specifics i imagine as soon as the chinese wake up for business on tuesday reporters will continue to do the same on that side. >> everybody has to look like a winner when they present it as well let's talk about the market impact discussing whether investors should chase this valley matthew here and rick is joining us always in chicago are you surprised at the

magnitude of the gains that it wasn't bigger? they said if we got a trade truce the market would rally so much i guess we are coming off of a good week. >> yeah. let's take this 1% gain and consolidation of that move it is kind of a positive sign. we didn't get anything substantive out of this. we got to see if it sticks over the next four months if we can get something maybe we see a little bit of a rally. >> two big positive impacts on the market over the last two weeks. chairman powell's and of course this trade truce over the weekend, does either have an impact once get through the middle of december and next year >> i think we start today see that sentiment come through already. last week was a result of powell speaking at the economic club. they saw the tone that powell gave really giving i guess --

giving some claim to the fact that we were going to have -- i'm sore rhode island thry, tha rates than anticipated you put it and we have the two things together. i'm not so sure we'll hit highs in december. we see momentum continuing to move into the first quarter of 2019 we would look there when you tax rae bates coming into play we kicked the road so we will readdress that again at the first quarter. we would be waiting to see if we hit highs. it is from now until the end of the year >> so it looks like the big trade boosts has already faded what's behind the action in bonds today? >> i think you have to go back to the equity markets to really answer that. what we did was reprove a bit of uncertainty maybe on tariffs but

generally speaking most market participants i talked to never believed that it was going to actually come to a full trade war. i think that explains why the equity markets had a lot of steam. ultimately the secret sauce here is cap x and how planning by those involved in a world of trade with china has to do a certain amount of planning and spending post tax reform i think that clap thapter is yeo be written the next thing is we have some birthing here. they are about three quarters of a basis point. it will be interesting where they close you have all of this bottled up within a basis point of each other. they are covering at levels around 16. it sets us back to mid-2007.

those are important issues i think the notion of a nice correction off the double top just shy of three ant a quarter isn't necessarily speaking about the growth rate but the context abdomen information we have and many participants on the wrong side thinking it's closer to 3.5. it's certainly a horse race whether it would close above three at all >> what did you make of the fact that we have all sectors here today? some have outperformed but to see certain companies like proctor and gamble who is down so much on good news day what does that say about the we vailuation of the broad market >> there was so much destruction in some of the other names you know, oil being strong today with a lot more coming this week as far as oil news expected. you may see people running from

some of those and getting ahead could be big news in oil >> what are you doing in all of this are you buying the rally >> we are not but we are not fading it either we are fully invested right now in our products. we are looking for opportunities. if we see companies that have take an hit over the last month or so we see momentum there. we don't have a lot of cash that's sitting on the sidelines waiting to be invested we would look to fade names towards next year when we have to revisit the issues with chien f china and the trade tariffs. so right now looking for opportunities where we can find them and enjoy it until the end of the year. >> okay. we'll leave you there. thank you very much. still ahead here on the closing bell, tech stocks falling news of the trade truce we'll speak with the founder

about the biggest concerns plus the december fed meeting looms charge we discuss how trade developments could impact the next trade decision. reach out to the show on twitter, facebook or e-mail. we areacwi t bk thhe dow up 270 points

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welcome back to the closing bell we are up about 280 points ton dow there. the individual winners for you very much related to china trade. apple up 3%. boeing up nearly 4% and nike doing well we'll dive into that >> that's my stock number of the day. >> you may proceed exnike. >> tech stock is higher. what happens if no deal is made in the # 0 day period. joining us now is cofounder of

cypress semi-conductor thanks for joining us. >> hi. >> what do you take away from this truce over the weekend? is it more of a pause of the increasing negativity as opposed to an outright positive? >> first of all a disclaimer i thought ronald reagan was going to get iceland to do a deal it was a big disappointment for me and all americans i'm very hopeful think we'll end up getting the best case. we'll go to free trade again or close to it which is important to everybody on both sides that's fundamental we'll go back with a better deal from america that's a good deal too >> it is also a good deal potentially and a big relief for semi conductor industry, your normal former business how much does it help whose stock has gotten hammered? >> i'm not sure that the decline

in semiconductor which is down in the dumps is due this yes. obviously chien fna is one of te biggest in the world and not having a war going on with them would be important also one more comment i would like to point out that they need the chips badly. they -- i never was really worried that we wouldn't be able to sell to them because they need our chips you can't get them any where else it wouldn't be competitive >> clearly in terms of a full trade ray greemt being reached ip is high on the list of u.s. concerns to what extent is that ever going to be enforceable? >> it is enforceable if the company is big enough and tough enough to take the time to enforce it

in orders how do you rip somebody off you make something and it violates a patent. the company has to find it out that takes money and time. they have to get a lawyer, find out how to sue you and find out how to block your imports. it's hard but when it's important it can get done. when the law is on your side typically the threat of a lawsuit means they will negotiate rather than continue to rip you off >> one other interesting side story that came out of the weekend meeting and cease fire was that, you know, according to to white house he opened which qualcomm is looking at >> i think they know they can't get the deal anymore and therefore there's no leverage for holding it up for

themselves they have a five-year plan it says directly they want to become number one semiconductor supplier in the world. this is not going to happen. the point is they can buy stuff as opposed to building it from scratch. i think they know buying companying containing secrets and using that ip is not going to work for them think it's been proving to them so they don't care anymore about qualcomm >> do you think it puts any other deals in play? >> i don't think so because most of the deals that would surprise you would be china buying somebody and those are the deals that have been pushed back on. >> what about -- whif we take

apple for example or when you hear analysts lowering their sales do you think something more secular is take place that it is in that technological super cycle? >> i think we have been in the tech cycle for a long time i think tech stocks have worked their way up to a very high level. i don't see anything fundamentally wrong. if you want to talk about cell phones we are about to go to g5. you're about to get a gig bit per second a significant fraction of the world is going to redo their cell phone that's a striving force. we are looking at seasonality. you add a little nervousness with potential trade war and people wait to see how they settle out before they get back in >> so if i'm reading your comments collectly it sounds like your not too right now.

nvidia was down from the october 1st high are you saying this industry is there correction >> well, it is in a correction kind of but the correction happens almost every year. you guys want to do a little work go back and grab semiconductor stocks in april and may and october and november and you'll see there was money to be made almost every year when people get out and get back there in the spring. so no. i think the eknology is fundamentally there. i think it is important. it hasn't lost importance. the internet will connect everything in the world. i'm working on a company right now that is connecting farm equipment to the internet so that we can track and water properly based on measuring water. so with all that's going on these fend mental forces and the industry, you know, the stocks

up or down if it goes dune little bit farther don't worry about it >> thanks very much for joining us we'll leave you there. the former ceo and founder of cypress semiconductor. >> we have seen little lift in the last few moments the dow is up over 300 points. you it in the lead there we go. 310. shares of tribune media jumping after nexstar said it would acquire the company. we have the latest in los angeles and the latest on how it all came together. >> that will make it the biggest u.s. television station company. nexstar with the assumption of tribune's debt the deal is valued at $6.4 billion tribune shares jumping more than

11%. nexstar up 5.5% today. it is 31% stake in the food network at to the 175 tv stations this makes nexstar than sinclair it fell apart after they had el -- sinclair filed a counter suit this deal requires regulatory and shareholder approval they expect it to close in the next quarter of next year. it is expected to add $160 million in the first year back over to you

>> thank you very much for running through that deal. george h.w. bush's body arriving right now. his remains will be transported to the u.s. capital. let's bring in john with more. as the nation says farewell to president bush and he makes his final trip where leaders from around the world will pay their respect. >> that's right. >> what's the mood like there? >> we will have an extraordinary seen there because traveling to the white house is not only the remains of president bush, his entire family, former president george w. bush his daughter and a bunch of other family members and at the u.s. capital it is going to be a raid it is lead by his close friend james baker who was his secretary of state and late in his white house chief of staff as well.

others, andy card, powell, dick cheney will be there the entire range of cab in tinet members. they will be there to pay their respects and he is going to lie in state throughout the day on tuesday. we have the state funeral in which president trump and former presidents will be in attendance and the former president is going to be eulogize by a number of speakers. >> and john mendez of the house and senate will be able to pay respects this evening to the former president he was a former president who really embodied particularly after he lost president clinton becoming close friends with president clinton. >> that's right. he came of age where there was a

lot more cross party cooperation. he came from a liberal republican tradition if he were growing up now as the son of president bush he would be a democrat. at that time you had the yankee republicans. he was one of them he was a transitional figure within the republican party. because you had conserve tifr democrats there was a lot more working for us party lines you saw the president george h.w. bush receiving a number of thing thes, a budget deal, clean up of the snl crisis the americans with disabilities act as well as winning authorization for the war to repel iraqi forces this is somebody who has -- inspires deep affection. there are a significant number of members, not a huge number

but especially people in leadership who served with president bush in the congress while he was president a few who served in congress when he was there. this is something that is going to be a moment for reflection for the entire capital and the entire country >> yeah. a moment of reflection and a chance to look back. we have all been reading so many in the last 48 hours are so. the achievements are many, the collapse of the cold war the signing of nafta what stands out to you and many of them ringing true today what should we be thinking about? >> it is the successful navigation of the end of the cold war, the fall of berlin wall between the president, jim baker, his secretary of state, his national security adviser

they handled that transition you -- is successful prosecution of the war to repel the iraqi forces from kuwait and the decision not to proceed to baghdad and to oust saddam maybe some think he should have done that. it is to go on and launch that war and housed him from power. he was trying to avoid the very complications and costs, terrible burdens and casualties we encountered in that situation. that is foremost on the economic front i think you can't overestimate the significance of that budgetdea in 1990 that he struck with democratic leaders in congress

he raised the tax rate that began the bring the massive deficits down. itcame down still further unde bill clinton that was george h.w. bush who renounced the pledge and set the stage for that happening [ no audio ] >> oh my goodness. i'm watching these things too. i'm in the holding room in the capital waiting for the arrival. they will take us outside for that i can tell you that i knew -- i first knew him when he was ambassador to the u.n. and

barbara bush i was a young white house staffer. he exshow-- showed quality of character and strength of character. when i washonored to be his secretary of commerce some 20 years later i would say i saw the very same qualities as a boss he could be gracious and tough minded all at the sametime he was gracio [ no audio ] >> you served in president bush's administration but gerald

ford and ron nals reagan it is quite a front row seat to presidential policy. what can you tell us about those some of those leaders? >> i think he was a very consequential time in history it could have ban time of great bloodshed had it not been handled that way i was serving at the u.n. general assembly as the public delegate during that time. i just remember those that said we will never have german reunify dags

-- reunification. it was another of, i think, president bush's accomplishments. it happened quietly, peacefully and it would not have happened had he not facilitated it. so the courage he showed when he decided to go into kuwait and get rid of that there. >> would you agree that successfully ending the cold war was one of if not the greatst achievement of his presidency? >> yes i think it was >> yes i think from the perspective of the united states and the entire world that is the number one a i chiefment. -- achievement. i remember when she became the commerce secretary to reflect on the irony of president bush who ran for reelection and we defeated at a time when the mood

was that the economy was bad. this t economy he last recession and growing in the fall of 1992. as i mentioned a few moments ago he cut that budget deal that laid the ground work for the boom in the 1990s. how do you think he processed that at the time being put out of office in a general public mood of negativism not appreciating the things he had done to help right the ship. >> i think he always took a longer view and thought that history would take care of this and how he was viewed. he was courageous to break his no new taxes pledges they have no question about it i did look up from my own yesterday the gdp growth in 1991 and for i think several quarters it was negative.

we were in a recession but by time we got into 1992 and certainly by the third quarter it turned positive between 3 and 4% nobody felt that it was really the problem. i think it was a factor. at the time there were some people that accused me of cooking the books. you really can't cook the books if you're the congress secretary. that's all done by professionals. it was that no one really felt that recession had come to an end. i felt we gave or he gave a great presence to the new incoming administration. >> he also helped. >> i think he believed history will take care of how he is viewed >> he also helped clean up the savings and loan crisis and much of his first year in office economically speaking was

consumed with working with democrats there congress to bail out that industry or resolve those institutions through the resolution trust corporation that i think is something that he has not gotten sufficient credit for >> i completely agree. >> i just want today bring up chien fla. it is so in the news today the market is sort of celebrating this cease fire between president trump and president xi president xi said he was saddened by president bush's passing. he said he made important contributions to the china u.s. frip can you describe some of those contributions and how he might have seen this trade war >> yes i can tell you first you know, he served as the liaison officer. so this would be the mid- -- i'm sorry, 72. this would be the mid-70s when

he and barbara bush were there but then when we were there office, when he was president that was a time in 1989 that the crisis, the crackdown happened the u.s. was very unhappy about that he as president struck a very delicate balance we placed sanctions on china he did this and managed it in such a way so that the u.s. was showing its displeasure about what happened but was not trying to just crater the entire relationship and that was -- that took a great deal of skill. a lot of it behind the scenes. he did do it and then before we left office -- actually it was after he lost the election he called me and said he wanted me to go to beijing and he wanted me to restart the economic relationship which of course had

stalled. i was to do it before we left office in january. and so we put a mission together, a presidential mission very quickly, went to beijing in december of 1992 and i convened with pmy counter part which had the effect of restarting the economic relationship, giving the green light to american companies that wanted to go to china. we know what happened after which they did and china delivered on this trip we came back with a billion dollars the other thing he wanted was removal of a sanction he wanted that gone and my trip took it away, of course, that he wanted it gone so that the new administration could continue its engagement with china.

i think that's the kind of thing that he is remembering, all of that about president bush. he did contribute to the bilateral relationship that has stood the test of time and i'm hopeful now that this truce has been called that we will make some progress in improving the bilateral trading relationship >> george h.w. bush handed it off to president clinton who then got it ratified this is an enduring legacy that now sort of in a back handed way president trump has affirmed with his new version of the deal that preserved most of the

origin original one >> i'll update you when family members step off the plane there will be joint chiefs of staff to welcome them. although you had a professional working relationship with the former president were you aware well >> i considered him a friend my husband and i considered both bushes friends we visited them any number of times and in texas at the library and houston. we are really in a very close touch over all of these years. i have a wonderful election of his handwritten notes. one of the most precious ones goes back 20 years when he said character kounl character counts it's one of the big things i learned from him, leadership kounl

koun counts and i think i will have to sign off. i think they are pulling me inside right now >> your stories have been very valuable to us we are very lucky to have had you on the phone >> thank you >> we mourn the loss of the 41st president. john is still with us. we are just awaiting this guard of honor as you can see and the family members to step off the plane. your take on that other side of the president, john, that he talked as did his great late wife so much about the family side >> well, he was a huge proponent of not only family relationships but personal relationships he was a very human guy. many politicians are distant, reserved he showed his emotions one of my favorite pictures i

ever saw was him in bed with barbara bush and their grand children scattered all around the room i forget what the holiday was but it's a joyful picture of two grandparents enjoying their grandchildren. let me tell you a story you saw from the new york times story the other day. baker related one of the things at the end of his wife me was singing with irish tenor the words to silent night. he was plouting the words shortly before he passed away. my most personal memory of the president was 1991 at a white house christmas party when we were in the east room and the marine group and they were right beside me and we were singing off the same song sheet. it was a kind of intimacy and a friendliness that you don't

really see anymore from democrats or republicans they are more distant from the press now. this is somebody who also had an extremely deep connection with the people who protected him in the secret service you seen that in the tributes that they have offered him they were the honorary pa pallbearers. it is something that enlisted before he went to college, became theyoungest naval aviator, was shot down and survived and a war hero before he ever went to college. and the deep feeling that he had for family, for country the something that we'll never forget >> as we await the family we await hail to the chief with the 21 gun salute. president trump, the current president hasn't always had the

friendliest relationship with the bush family. when it comes to this he is doing all of the protocol and declared wednesday that the national day of mourning the markets will be shut down. what else can you tell us about national ceremonies preparations and presidential traditions upon death. >> i do think that the trump white house is aware of the affection within the country totally apart from politics from george h.w. bush everyone though he criticized the president and recently mocked him and said and a half the was the worst deal ever. of course he was the one whose administration negotiated that deal he is recognizing it is a moment to honor that national sentiment. she going to the state funeral

tomorrow which is something that president george h.w. bush wanted to happen it for respect for the office. he will not -- president trump will not speak at the funeral. as you said, most of the family does not feel kindly towards president trump at all nevertheless we are going to have that state funeral. i think that is exactly how george h.w. bush wanted it to happen >> and all of the former presidents will be on his son on the 43rd president the late president bush 41, one of only two to see that occur. >> he jokingly would refer to his son george w. bush as quincy he was the only to be elected to

that high office there was another tradition that george h.w. bush shattered it was not since the early part of the 19th century had a sitti sitting vice president become president. it became another gag line for george h.w. bush one of the gifts that he had in addition to being very kind on personal basis, he was also -- he loved to make fun of himself, make fun of the fact that he didn't like to eat broccoli or make fun of his inarticulate some times he did that very effectively in some of his political speeches this is somebody who was real and he showed it and people felt it >> what is the bush brand of conser conservatives? where does it stand? a lot being written about that it is changing

>> there's no question it is changing you remember george h.w. bush was not really a conserve tifr he was a republican. his father was a senator he grew up as -- in a family that advocated abortion rights before that was so popular as it is now on the democratic party but he ended up altering his views to accommodate the republican party he grew up in as it changed from an old school eisenhower republican power to a ronald reagan party. he turned his position on abortion he became anti abortion. he adopted reagan's reference but not to firmly he couldn't make the budget deal he would completely have rejected the protectionism that the current president's practicing, that sort of narrow

america first doctrine it was not for him his son, george w. bush continued the transition to a more conservative brand. he cast himself as more reagan than his father in political terms. now, jeb bush was quite a conserve tifr governor of the state of florida he believed more than his father had in reducing the size of government given the way the party has clanged that place where jeb bush ended up ended up being on the left hand side of the party from donald trump and others seeking that 2016 republican nomination so right now this is a donald trump party and the one thing we know for sure despite the idealology by different generations of the bushes, none of them would cast themselves as part of a donald trump party >> we are watching president

george w. bush they are all being escorted off of air force one where they will take part in a little ceremony here before president h.w. bush's body is brought to the rotunda, the capitol hill where mourning and visitation will start. >> there will be a hail to the chief and 21 gun salute and we'll take that live i guess at times some people framed a slight competitiveness which was resolutely and correctly put to bed as an idea in the years following bush's 434 43rd presidency. >> people would lead for example to launch the second iraq war as a desire to full phil the unfulfilled ageneral ka of his

father or be tougher than his father or more aggress ifr than his father they were extremely close as a family they both resented attempts to drive wedges in between them i must say it's striking to watch both george w. bush and neil bush walk off of the tarmac you could see the facial features of their father in both of them. i don't see jeb bush arriving so far. no that is one extraordinary and extraordinarily close family >> yeah. and to that point president george w. bush will be eulogizing his father and there are others you mentioned canada it looks like the former i prime

minister will be one of those. u.s. senator allen simpson as well as john, what does it tell you about thousand funeral will go >> well, allen simpson was very personally close to george h.w. bush those of us covering the administration at capitol hill at the time knew he always had special incite into what george h.w. bush were thinking. i think with brian we are seeing the embrace of the kpinternatioa legacy of the president. he was part of the coalition that george h.w. bush put together to oust iraqi forces. he helped him negotiate nafta

and i think he became very close to him in writing his masterful biography. >> we'll listen now to the band and the gun salute ♪ [ gunshots ]

[ gunshots ] [ gunshots ] [ gunshots ] ♪ ♪

♪ ♪ ♪ ♪

♪ ♪ ♪ ♪ ♪ ♪

just seeing the 21-gun salute and family members making their way out following the president's body which will be transport today capitol hill where it will sit in the east capital plaza for the next 36 hours. >> there will be a ceremony there with have the quail and other members of president george h.w. bush's administration including barbara franklin who will be participating in this before the viewing is set up to open up around 7:30 eastern. if you're just joining us the body of george h.w. bush arriving at joint base andrews there. it will be days of tributes in washington to the president with

the funeral on wednesday at the national cathedral >> before we paused to listen to the music we were talking about sol of t -- some of the other foreign. will he be in attendance >> i'm not sure he is well enough to travel i have not seen a definitive world. i know he is ailing at the moment i don't know if he is going to make it. he certainly remembers the fo forbarns the president resisted the urge to celebrate, to taunt, to move overthe american -- the victory of america and democratic capitalism over the soviet communist system to try to avoid

h humiliating and perhaps the soviets to do things that would have been unwelcomed and harmful to the world so they developed a close relationship the other thing i wanted to mention, guys, i think we are seeing an extraordinary of outpouring around the country for this president george h.w. bush offered something for everyone democrats appreciated his humanity, his kindness, so did republicans. republicans of course also have the celebration and the fact that he was a republican president. because of the contrast between his style and the era in which he served and how he served with what we are experiencing now, which was so bitter and so polarizing and so devicive i think everyone is reaching for that good feeling that he brings

out in people. i think you can expect to country to saber these feel good moments over the next couple of days we are going to ask is there going to be any lasting impact of that? >> i doubt it. you know, we have had a series of events in our country over the last couple of decades that beginning with 9/11 when his son george w. bush was president and there was a tremendous burst of national unity after that horrific attack on the united states but the half-life of that given the way our politics and the combination works right now it's hard to sustain that. maybe at some point in the future it won't be right now it is very difficult i think the best you can hope for is a few days of good feelings, reflections and appreciation for qualities that

are politics some of our leaders are not displaying right now the prospects for lasting change is something we'll have to keep waiting and hoping for >> thank you very much for that. we'll leave these live pictures from joint base andrews as president bush's body leaves to go to the capitol building it is expected in about 40 to 45 minutes time >> the closing bell, 50 seconds left of trade. let's dive in. you can see the dow is up 290 points the high of the day was 400 plus points it is on the positivity between china and the united states. if we look at the sector performance you can see how the trade trace has. it is because of trade tensions

are top performers [ bell ringing ] welcome back everyone to the closing bell i'm here with wilfred frost. let's take a look at how we finished up the day on wall street it was a rally day after a big week on wall street. the rally continued off of that trade truce that was declared in argentina between president trump and xi the dow closing higher by just under 300 points

s & p 500 rose up and it was broad as well. the nasdaq gained 1.5% russell 2000 up 1% not quite as bilge as gains we saw overflight still, a worldwide celebration of that cease fire coming up you'll hear and get his take on the feds rate hike time line. oil prices climbing sharply higher a big clang out of opec. we'll discuss that there hoping oil prices will stay low. he'll tell us where he is placing bets on the show advanced my koe devices and discovery was the laggard there. joining us to talk about the

market day managing direct to have nice to see you. >> we did get a big rally last week more than 4% for the s & p 500 did that take away the headlines? >> i think we used up some of the fuel you had people leading very negative we had the big air pockets around thanksgiving. i do think today represented a little more of a conuation of that kind of relaxation it makes sense i think what you now have is the market enjoying the removal of trade as some kind of eminent threat it is the removal that any would be determined to raise rates at all cost you oil prices you have all of these different strands of the correction that are working now and you had seasonals too which means, you know, we have a better shot of

getting above those levels from a month or two ago if they can't make anything of it what does it say? that's the kind of moment we are approaching. >> and is it act chuually a tra deal >> remember, a few weeks ago i said hey, let's remember that this is just a negotiation when there are fruits of that e negotiation the market is going to rally they are indeed some signs of some progress. does it make a difference whether we actually send cards from the united states to china? no it does not. do i think bob lighthizer would be driving a tough bargain i do do i think it's good for the u.s. economy negotiating stance? i do >> but one more, do you think china contains rules in 90 days?

>> no. but as the gdp continues to rise and a per capita level it will have to play by the rules which it has not done over the last 17 years. >> we had a decent week last week when we consider the fed has changed its tone the market wanted it back that oil has stabilized. would we not have expected a more decisive rally today? >> i don't know about expected certainly you had the makings for something better i think it was in the an overwhelmingly bullish day it is perfectly fine you had 2-1. all of those signs you look forward to saying was it a renewed urgent buying? no it was getting stocks marked up to levels that seemed to match up with where we are fundamentally. i do think the credit markets were okay today. that's one element of what's been bothering the markets

it has not confirmed the recovery >> and he said the spreed between three and five year yields going down to-.6. it is the first time since 2007 are you worried about it -- worried about it? >> that's something to pay attention to then again, we are at a period where the fed has been raising rates at a healthy clip. it doesn't seem out of bounds. it may not be directly reflected. we were coming out of such a period and we might -- >> it is also not the -- >> yes it is not the most widely watched -- >> yeah. it did fall below 30 basis points for the first time since 2007 let's talk tech stocks chls

getting a reprieve after they reached a trade truce. i'll also point out that amazon overtook apple the three of them fighting it out to be the biggest. understandable to get a bounce but quite a big bounce when you look at there. >> i think it makes sense in terms of the velocity. it is particularly apple i mean it certainly wasn't down mainly on trade fears but you would have maybe even expected a better bounce there am two ways to look at it is it a place for them to buy the high quality companies that are trading some what on sale but it's not from amazon which has the tail wind of what will be a strong holiday shopping season >> and it went up 11

>> and it is right front and center of what is going to be a big victim of the trade flows. that's not the case right now. >> is tech where you want to be? >> let's just talk about facebook for a moment. speaking generally if you look at the earnings is that too rich for a company that grew last year it is not that rate in 2019 but keep on growing. i think it's worthy of looking when you look at so many multiples across the s & p 500 it is not by any stretch you'll get that trading 70s or 80 times ford earnings so a lot of questions but i don't think they have been defin tifrly flock out at this point >> facebook has been quietly creeping up a little bit here. >> auto stocks had a big move following the trade crews.

president trump said china agreed to reduce and remove tariffs. we have a little more contacts around this announcement, phil >> it is announcement from us not from the chinese it has a lot of people saying what did china agree to? here is what happened over the last 24 hours. president trump sent out a tweet saying china agreeing it is reducing auto tariffs and exports china. currently it's at 40%. all other auto imports, if you send one in the tariff is 15%. this is the most important point. no confirmation this is an agreement that china said, yeah, we are signing off on this he thinks it is china doing down we'll show you the parents of

m mercedes benz. they are the largest exporters built in the united states also take a look at shares of tesla. tesla is a big beneficiary because china is the number one electric vehicle market in the world. tesla needs to increase sales there. if you have a 15% tariff as opposed to a 40% tariff it is a lot better to get them to sign off on that deal couple of other things, we got the november auto sales in sit a pace stronger than expected it is expected to be close to 17.4 or 17.5 as a paceover sales. >> i was going to mention the two german autooh makers if they change tariffs it does have to do it for everyone >> well, you would think

remember, they raised it they dropped everybody down to 15%. we said anything built in kline tha -- china they will be tariffed. they said we'll bump it up to 40% which is where we are at right now. i have heard this discussion saying if you're dropping it for the u.s. you to drop it for everybody it would bring it back down larry said he thinks that we could ultimately see zero tariffs between the u.s. and china. >> okay. thanks very much for that. treasury secretary earlier today. here is what he had to say about the speech last week >> i will tell you he liked the speech i would also just say i think as you know, jay powell has a difficult job. he was lift with a gigantic portfolio that was increased over 4 trillion in the previous administration we had interest rates at zero to

try to help the obama economy. it didn't do much. he was left with the hard work to try to normalize rates and stabilize a portfolio so that he has the fire power if the economy slows down to just the economy. >> joining us now to discuss is former minneapolis fed president. thank you very much for joining us so it sounds like according to the tremendous ri secretary the president has now pleased last week there was not even a little bit that he said he liked about powell how is all of this reasonating inside the fed which is saying much thanks for having me on. i think it is probably working the opposite direction of what he tinds if the fed feels on the market that maybe it is better to go a little slower because of kplik conditions they have to worry

that doing so is going to make them seem like they are operating against the president. that's bad news because it could lead to increases there inflation expectations that they don't want to see. they could be -- the problem with the president's comments is it puts a fed in a little bit of a box. they have to keep being -- going on with planned rate hikes if they don't do that then they risk seeming soft under the control of the president that's a message they don't want to be sending. >> listen, if we step away to what the president is saying and whether or not it might be working against his intentions what should the fed be doing in your opinion earlier you were concerned and like the president you did want the fed to slow down is that still your view? >>. >> it pretty much is

the president's comments in my mind right on the economics. i think that the -- i see a lot of downside risk out there, soft global growth and softening in housing in our own country so i think those should make the feds very hesitant about raising rates. the problem is that he's a president. i get to say what i want and he doesn't. that's i think the challenge he doesn't seem to sort it out yet for himself. >> i want to help your comments. you a super dove you always advocated for lower rates, more easy policy than the center of the federal reserve. is that accurate >> i think i am famous for swic switching sides. more recently, you know, i continue to see -- since i

became a dove -- i'll put it this way it's been over six years now i have felt that my reading of the economy has not been off in fact i have always been concerned i have ended up being too hawkish. so i -- i continue to work with those downside risks frankly, as i say there's nothing in the economy that's made me regret pushing fora more accommodative policy >> what do you make that it is inverted today and that it is to low, a steepness since it has been less than 30 basis points >> i think it is very difficult to know what to make of that i'm sure it will be a cause fo concerns for some people to be clear. i think we don't have, there's

this that it forecasted a recession not at a fixed ver e verizon. we don't understand what that linkage is and we are starring at a treasury portfolio. it is quite different than we have seen historically it would be creating readings from the yield curve then about the future of the economy. so i personally don't know what to make of that. i am not paying much attention when i think about the source of future policy. >> so clearly you, like all of us have been listening to chairman powell. do you think last week's speech was a huge shift, was a game changing in the way he is thinking and he is now more flexible and coming around more to your view that there may be some weakness and they don't have to raise policy, raise rates? >> i would love if that were

true i doubt if it is true. i think that the chairman has a difficult job in terms of communication. he doesn't want to seem too hawkish. dount wa doesn't want to seem too dovish. he seemed to be arguing well we kucould stay accommodative so i think he has gone, you know, it's a difficult job in terms of kplun kating. we'll learn a lot when the fed meets and then from the press conference it allows him to be more responsive and he has the backdrop of the projects from the committee to help him communicate more effectively >> okay. what happens -- just quickly, did you levave twitter? it was so interesting.

>> i appreciate you say that, but i got really exciting and absorbed by research twitter was a drag on that i walked away far while. >> second your thoughts direct to sarah that will be ideal she can be your exclusive link to break it to the market. >> thank you for joining us. >> thank you let's get a final thought in terms of what the fed is likely to be on the markets over the next year. what would scare the markets >> what would scare the markets for 2019 >> uh-huh. >> i would put over under three. >> so if it's just a couple of november that's fine >> i would think what he said is quite important. this is why the president traditionally does not get involved what they do does not want to be seen as a political reaction

that's the danger of the zone we are now is that it is seen as a politically motivated decision >> you think it could ugh is jest three rate hikes in the over-under, if they get to two it is probably something they could digest >> i think all three could be in the second half of the year. you could pause and is have three in 2450er ri >> depending >> okay we'll leave it there thanks for joining us. investors cheering a temporary cease fire in the u.s. trade war with china the largest independent steel pipe manufacturer will join us next and mark mobius says it presents growth opportunities for immerging markets. he joins us next

we have an earnings report >> that's right. a big move up right now. i think it was about 19%

decent earnings on the revenue side but bigger on the eps side. raisi raising guidance going forward they say both their brand and net revenues welcome impacted due to slower from china due to tariff related shipping congestions. back to you. >> all right thanks very much for that. up 18% this weekend's g20 meeting, a trade truce between china and the u.s. as well as to replace nafta. we have more on what's next for trade. >> there is new momentum to rain there the president's power over trade. the incoming finance committee chairman wants to impose tariffs. it could effect future tariffs on autos or existing on steel and aluminum

i'm told it will be a priority the sleeper issue out of the g20 could be the u.s. mca. it is going to be up to lawmakers to approve this deal the president threatened to withdraw in hopes of forcing to force the agreement. larry kudlow said it is trump trying to light oo fire under congress basically create a deadline and negotiate in crisis. it is not clear trump can withdraw without the pleblessino lawmakers. if trump tries to pull out it could end up before the supreme court. at least one key senator is not reacting kindly. here is ron from oregon. if he is so great why does he need to support through congress he should address the concerns that lawmakers have. he needs to give written notices six months before he pulls out

of any deal. we will let you know if we do. back over to you >> okay. thank you very much for that, ylan for more on what it means the largest steel pipe manufacturer. thank you for joining us do you think it's a major development over the weekend >> i think it's a start. we want to frad with china we have got to bring them to the table. that's what the president is doing. we'll see where negotiations go from there that's lot of heavy lifting to be done here >> can you just recap your position for us? as a steel company you have obviously got a lot of stake you're also canadian company i think you have been in favor of the president's tariffs why is that? >> two things. we have a plant in canada. we are a u.s. based company. most are in the u.s. 16 plants now in the u.s most of our employees.

you know, the real thing with china is it only imports about 3% of the steel imported into the u.s. so as a raw importer they are not that big because we blocked them out with tariffs. china has an indirect steel importer immaterial ports about 27% accounting for approximately 15 million tons so they are the single large ets importer of steel and steel products into the u.s. the tariffs largely are there, you know, to force them to act in a proper way trading product with our country and stop dumping the product in here and really taking the job. you know, i'm in favor of the tariffs. i'm more in favor of quotas so that we actually bring back production here. you know, we don't want to cost the consumer more money. we don't want to do that largely these tariffs in most part have been absorbed by the

exporting country. we have seen that on the tube side it certainly curbed imports. we have hired approximately 500 people in the last 18 months it has been very good for our industry we have doubled our cap x. in 2019 we'll invest over $100 million where typical would have been 55 to 60 >> it was also signed by the leaders of mexico, canada and the u.s. is that important in your eyes as a company that operates >> absolutely. i think it's very important. canada, mexico and the u.s. should act as one trading block. mexico was into the automotive industry and trading with the u.s. as is canada. to hone that agreement into more modern day terms and needs needed to be done. so i think they have done a lot

of good things in that agreement. i think there will be more to come in the future but certainly it's a great start i think it will be great for north american workers american workers, canadian workers and workers in mexico and all of the companies that operate if n those three countries. >> we'll see if congress passes it first thank you for weighing in on some of the new negotiations >> thank you whole foods could be going high-tech. walter rob will be joining us to discuss that coming up >> and mark mobius sees more on the horizon. he'll join us next

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stocks rallied after the truce was reached between president trump and xi over the week at g20 on trade the dow closed up by about 287 points at one point it got up to 440 but lost some of the gains throughout the day saw a 1% gain building on last week's more than 1% rise the nasdaq hired by 1.5% time for a cnbc news update. >> sheer whathere is what's hapg welcoming his indian counter part mattis saying he had not yet

signed to extend the doe employment of the 4,000 troops of the mexican border. they say macron postponed his visit after the worst urban riots in years he was to arrive on wednesday f for a two-day visit. a range of economic issues against macron's government. >> carrying 64 small satellites with the first stage that has been used twice before spacex founder has made it a mayor goal michelle obama says she was moved, touched inspired with when she returned to the school. she talked about her struggles at princeton university. that's a c flrks bc news update. back over to you >> thank you very much now, merging markets getting

a boost after president trump and kpt xi agreed to a truce on trade holding off on tariff increases for the next 90 days thanks for joining us. what is your take as to whether there can allow immerging markets as china's market to rally into next year >> i don't think it's over i think if there was a little bit of a truce looking at where i am in brazil. think the immernling markets outside of china will probably benefit from this trade war. the chiez these will establish more manufacturing it is interesting here in brazil the chinese purchased three banks and buying up land

you can see their expansion in other parts of the world as it needs to get entry into the u.s. in an indirect way >> you're saying it is have been an impact on global supply clans? which markets would you be betting on and how are you making the bets? >> brazil is in the same time zone as the u.s. they have pretty good manufacturing capabilities here. that would be one. you to go to countries where there's been an incredible decline in currency. turkey is the first one that comes to mind. turkey needs to exchange very badly. you bangladesh and then you vietnam for shoes. a lot of countries i think would be able to benefit from this >> mark, one of the main ways investors seem to have focused

their concern is just worrying about a hard landing in china what is your read on the current state of the economy and how did you recall or fragile the growth is there >> there is no question that the private sector is heavily in debt if you look at the numbers and private side is not equal to the u.s. and as you know the u.s. has got a big private debt sum up compared to gdp china is right up there as well. the chinese will have to do a lot of reforms particularly in these companies that piled on incredible amounts of debt >> mark, which em is most set to benefit from the pull back we have seen in oil prices? >> probably india is going to benefit. you know, they are heavily dependent. of course they are a big

processer. they bring in crude and then process it and export the products so that also will help them. so i think it's a combination of things india is of course probably the most to benefit. china will also benefit. >> okay. thanks very much for joining us. mark is here shares of amazon rallying as tech gets a boost. it is also reportedly cashing out it shall sheerless technology we'll weigh in on that and other ways amazon impacted the grocery train next e all sorts of resear, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here,

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unstopand it's strengthenedting place, the by xfi pods,gateway. which plug in to extend the wifi even farther, past anything that stands in its way. ...well almost anything. leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today. >> welcome back. shares of amazon testing the cashierless stores it is unclear you ho they will use the tech but saying that whole foods is the most likely application. >> joinings to talk about how it could clang the game for

groceries. >> welcome nice to see you >> how should they feel about the move to go cashierless >> i think it is happening in food in general. the customers are having more and more options amazon go which is up to 13 stores already has us deployed in a smaller store format. most have about 35 units >> do you think it will start to come pete are deliveries of groceries or make it more efficient? >> yeah. i think, you know, we are just seeing this massive wave of disruption in general. i think what this does is if you call the grocery building what you're seeing is new ways which

customers can get your food. physical retail really matters think it's so it contrasts with the online experience. i think you see the choices. we never could have imagined five years ago >> it would sort of jump start that process were there any concerns upon doing the deal that you had for 2 whole foods brand or their approach or relationship with customers and how is it playing out do you think >> it is still early the companies have different cultures and different styles. think that amazon very smart and capable people if you think about what we

dwayn gained we got first best in class technologies they have the knowledge on the physical stores which is a digital world and they have proximity to about 85% it was a win-win-win combination. people forget it is probably the largest sector in the economy. >> all right thank you. we have breaking news out of washington we have former whole foods ceo there is your live shot of washington the hearse carrying the body and casket has just arrived at the

capital. we will likely see the family procession follow as they are exiting their cars there will be a little ceremony of some of the former members. >>absolutely it is very much understandable given the military service in the second world war >> no question about it. it was an important and defines part of his life and part of his legacy as well as sarah just mentioned we are going to be seeing the cabinet from bush 41 vice president dan quail, we

will see james baker all of them have been a reunion and a celebration for the country and people within the political world in washington that he served for so long and members congress as well >> we are joined to talk more about the legacy former chairman of the economic adviser. thank you very much for joining us on the topic of legacy i have read so many different so many oh pit - he didn't like talking about it is this a sign of how gracious he was despite being a president? >> abslaolutely. he was very grateful

he could be very tough when necessary. he never confused being tough with being me. >> it is a greatgreat -- how wod you describe his economic legacy >> we had a recession, an oil shock. we had to clean up two financial crises we had to savings and loans. we had to deal with all of these things there had been a variety of other talks. he did so in an environ. where he had very very small

minorities in the house and senate the democrats had the 90 seat advantage in the south and many of the republicans were not conservative they came from northeastern states he manage add fairy conservative as part of a budget agreement that got good spending controls and importantly for him an underreported story is it defected the budget for several years. >> that budget deal came at a high cost but was it worth it in the long term? >> well, i think in the long run it mostly did good it helped splinter the republican party which was starting to happen in any event.

it didn't help at the time when an economy was week. setting a pattern, many of the controls that were continued through 1998 and they were one of several reasons and an agreement between republicans and control in congress and president clinton. >> we talked a lot today especially given the news flow about his contributions to nafta and negotiating it and opening up china for diplomatic and economic ties under reagan and then as president. how would you describe views on globalization? >> well, he certainly believed in an international order based not only in american interest and values but that brought in coalitions he built a coalition of three dozen countries including syria which is under the previous

dictator then. it did not cost americans one cent he was a big believer in getting it together on various issues. he understood that some times our interests were not aligned well with oethers. he said no to bailing out gorbachev. he said no under other types of pressure it was not just the high yield market but where capitalism would go. he could be tough. i think he was more conservative the things he wound up compromising with democrats on he wound up putting in as much restrictions and as much as market oriented and lost costs as was possible at the time so i

think it was how he handled that situation. it is not often remembered it wasn't sure that the congress would go along with the first gulf war i think he did a masterful job in assembling that we all had a wonderful experience working with him and for him and i think for the most part he was able to achieve that i think you should judge him by what he accomplished under the situation that he was -- the hand he was dealt and how he dealt with it and what he left for the future which i think was a big improvement in many dimensions rather than the fact that he lost reelection. it was interesting to see his character reflected for example

in his close friendship with bill clinton he served on the armed services committee. >> hi. >> hi. >> you clearly had a lot of interaction with his national security team maybe his international team can you give us some with the former president? >> i think one thing that michael said that was certainly true is that there was no gar ante it would approve the use of force in response. it was no small task for the president and his security team to get the votes in congress to approve military action. the president himself was very knowledgeable and persuasive

the national security team that he built around him was just fabulous starting with secretary of state james baker, secretary of defense dick when you consider foreign policy, was president bush as qualified given his own military service, liaison to china. was he as qualified as any president's been in the modern era? >> i'm certainly of that opinion and i think we've heard over the last couple of days that opinion expressed by people a lot more knowledgeable than i on foreign affairs, but i don't think there's any question that george

h.w. bush was perhaps the most prepared individual to be president of the united states at the time he was elected >> michael boskin, your thoughts on his qualifications and just some of the other accomplishments? actually, never mind we're going to listen in ♪ ♪ ♪ ♪

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president george h.w. bush, 41st president now inside the capitol building just coming up the rotunda building john harwood is with us as well. john, remind us what is taking place in the hour ahead an