points just for no reason other than the fact there's no sellers above that level terrible coffee, great set up. >> cat, apple, e-bay, mcdonald's, so many big companies reporting. have a great weekend the exchange starts now. >> a make-or-break week for earnings all of that is on tap. we have your game plan >> grounded a temporary halt at some airports today showing how bad the shutdown is getting. could it finally be the tipping point? we begin with breaking news from the white house and eamon javers talking about potential deal to end this shutdown, maybe temporarily and a circus-like atmosphere down in fort lauderdale where roger stone just spoke to reporters. take us through all this >> reporter: very circus-like atmosphere and a confusing situation here at the white

house. roger stone was arrested in the pre-dawn hours this morning hit with seven charges in an unsealed indictment by the special counsel's office he posted bond and then went before cameras in florida to strike a defiant tone about the special counsel's office investigation which he called politically motivated. here's what he said. >> i will plead not guilty to these charges. i will defeat them in court. i believe this is a politically motivated investigation. i am troubled by the political motivations of the prosecutors and as i have said previously, there is no circumstance whatsoever under which i will bear false witness against the president nor will i make up lies to tez pressure on -- easee on myself. >> that's roger stone. white house's reaction to all of

this is to distant the president from roger stone suggesting none of the chags today involve anything that the president did or anything that happened during the campaign the charges are all related to alleged lies and misrepresentations that roger stone made in the course of the investigation itself not during the campaign and pointing out the underlying charges here don't concern conduct involving wikileaks or the russian, it involves how stone handled himself during the investigation. meanwhile, kelly, as you say, there's a swirl of activity here at the white house they are setting up for something in the rose garden, some possible speculation this may have something to do with the government shutdown. we don't know. no official sources confirming i'm getting at least an indication that the president may be preparing make remarks in the oval office at 1:30 this afternoon. it's a very fluid situation so that may not hold. we do expect that it's likely he'll talk about the government shutdown we don't know exactly what he'll say, if there's a deal in place

or what the terms of that deal might be i am getting an indication the president might speak in the oval office at 1:30. again a very fluid situation and this could change at a moment's notice >> just to think through this a little bit, if there is, let's say a temporary agreement of some kind and the government is re-opened but temporarily, you know, what do we say to the government workers if this is a period of just a couple of weeks. will they gothrough this all over again >> that's one concern. the immediate concern for those workers can we get our back pay. you have to imagine that's the first order of business in all those agencies to process those paychecks as quickly as possible to get cash in their hands so they can make mortgage, groceries and the rest the question becomes what happens to the government in two, three, four weeks time however long this extension might last and that's an unknown question that means we're back to the drawing board and the clock starts ticking all over again. >> right now we're just

hypothetically speaking. i assume we'll get some kind of announcement i assume they are in last minute negotiations we'll check back with you in a couple potentially getting us to this point is the shutdown grounded airlines today maybe that was the tipping point for lawmakers to reach a decision about the shutdown. phil lebeau is here. this was first reported at laguardia but not because of staffing problems there. it was florida, washington, d.c. where tsa workers or air traffic control workers called out sick. >> it's an air traffic control issue. and the groundstop was at laguardia. that was the one groundstop earlier this morning take a look at some video from laguardia. we had a crew that's been there. they've seen essentially flights have begun once again, there are delays and you'll see the board showing nothing but long delays. an hour and 26 minutes that's the average delay right now according to the faa and laguardia.

my producer just flagged me they now have hour delays in atlanta due to air traffic management issues so this is what we have been warned about for some time the faa issued a statement saying we have experienceed a slight increase in sick leave at two facilities we're mitigating the impact by augmenting staffing, rerouting traffic and increasing spacing between aircraft when need the flight attendants union, they didn't wait long before saying this is exactly what the afa, the association of flight attendants and other aviation unions have been warning would happen one other note regarding the shutdown and the impact on the airlines delta airlines telling me this morning that it is delaying the start of service for its newest airplane the airbus a 220. it was supposed to start flying next thursday. they are delaying that why? because the faa has furloughed workers who cannot sign off on the paper work so the plane can go into service.

take a look at shares of airline stocks not a huge reaction in regards to the delays and the groundstop, but this is what people have been warning about we talked with doug parker yesterday, everybody in the industry has said, it stressed and close to the breaking point. >> this is just with a slight increase in those workers calling out sick thank you very much. we want to talk more about this in our opening exchange. joining me now bill richardson along with michelle caruso-cabrera welcome to you both. michele, let megyn with you. you made it back from davos. no issues with the plane >> bill is stuck in d.c., is that right, because of this? you wanted to get to new mexico but you couldn't get out, right? >> that's right. i couldn't so i'm staying here to do your show and then i'm going to new mexico >> thank you we appreciate that michele just in terms of the shutdown and negotiating process right now, again if we go back to getting this open for a

couple of weeks on a temporary basis, if there was ever a time of 30 day shutdown we got something out of it shouldn't it be a win for republicans on border security and democrats on the issue of dreamers and everybody is happy >> instead of kicking the can to some point in the future take acstep to get at least a temporary solution is a very good first step because then you have time to try to figure something out. both sides realizing it got to the point it's problematic for everybody involved maybe these situations with the airports was the final tipping point. i think it's a good first step for sure >> bill, do you agree? what happens so workers who have dealt with three or four shouldn't realize this could be like rolling black outs. it keeps happening because of the way the budget process goes. senator warner has tried to fix

this there's republican proposals to end this use of the shutdown as a policy issue is that the only real way out of this >> well, you know, i was in the congress 15 years. we had similar situations like this but not what's been so huge now, 35 days of a shutdown national security, air traffic in peril i had this agreement with the fbi and state department to help with american hostages the state department and fbi came to our meeting, which is every quarter. they were furloughed so in a way we're also hurting american hostages held abroad. if you settle the shutdown issue, regular negotiation will happen and, look, i just think the president has to realize, you know, he's at 34% now, the

lowest he's been you've got his base maybe satisfied, but he's losing voters and you have a situation right now on the hill where there's not just enormous backlash and tension against each other, but people aren't talking to each other. i've never seen it this bad. you might need some outsid mediation. >> or maybe you get to the point where laguardia traffic stopped for a while. the airports are affected in a major way. and that gets us to some kind of an agreement >> you bring up a key point about the rolling black out. so much division expect more down the road. >> eamon javers is in washington where we might get new out of the president. >> reporter: we got a tweet from sarah huckabee sanders white house press secretary confirming the president will make remarks regarding the government shutdown in the rose garden today at 1:30 p.m. about 20 minutes time from now she's saying this will be an open press event and the

significance of that is that there will be a lot of reporters there in the rose garden with the president. you can expect a number of shouted questions about the roger stone arrest and indictment today we'll wait and see whether the president decides to take some of those questions he's been defiant on twitter will he be defiant on television and the rose garden as well. >> michele, it's recently been floated this idea of declaring a national emergency that moment seems to have come and gone >> it may have passed. i think maybe the president would like to hold availability with the press today he would like to talk about the shutdown but he wants to talk about roger stone and this situation there. he loves to be combative with the press on this particular issue. you see the defiance on twitter. he wants to do it in person. >> bill, however that shakes out for the president right now, you mentioned a moment ago his approval rating. his poll numbers have been sliding. pressure is on him pressure also on the democrats

sounds like there's been a lot of heated discussions on both sides to resolve this as michele heard in davos as well of course they are going to say why can't the u.s. get its house in order maybe we get some movement here. >> yes i think speaker pelosi, she's been masterful i know you all guys think i'm a democrat, but she's been -- you know she's been masterful. she's strong i think the president needs to stop jabbing her, you know, this state of the union stuff >> look what he did on that front. it was amazing, how low will this go in terms of her blocking tv cameras or him giving it somewhere else okay fine i'll wait. if we re-open this weekend maybe he still gives it tuesday night. >> yeah. i think tempers need to calm down right now and if this shutdown issue is an announcement, there's some flexibility on the shutdown, i think tempers will cool down you'll see the tsa workers, the

workers around the country, in my state has been hurt very bad because of the huge federal presence i think that opens up a negotiation, a serious negotiation where you deal with the issues that are dividing us, the dreamers issue the wall i don't think the president is and should get his wall. but maybe he declares a triumph. >> the house which is now controlled by the democrats is just getting started this is only the beginning >> you think this weekend is too optimistic >> they may come to a deal this weekend. in terms of a cool down it will only get hotter and hotter maxine waters will bring these bankers to testify for what reason? we don't know. that's a hint how this will be >> guys, thank you governor, we appreciate your time it screwed you up here let's get to the markets now

which are moving off the earlier highs. bob pisani down at the new york stock exchange >> reporter: it's interesting because the question is why do we have the rally to begin with. there's a stew of issues floating around. there's hopes for a government shutdown there next week a high level chinese delegation on wednesday and thursday for trade talks and the market is very optimistic some kind of a deal can be reached despite the very difficult nature of the talks as wilbur ross noted yesterday the central bank attitude in the last few days as been very supportist of the banks. we had the "wall street journal" story that the fed may end their balance sheet normalization that's where the fed may seek an earlier end to that. china has active stimulus measures including overnight once again and draggy implying no rate hikes until 20 all of that very, very supportive for the markets overall. it's interesting we sold off a

little bit as word came out that the president may speak at 1:30. maybe this is a sell on the news maybe reports three weeks a little bit of disappointment there's no permanent solution still in sight back to you. >> fair point. bob pisani coming up a monster week ahead for your money big earnings fed decision news conference. overhauling the housing system the house wants to end control of the two biggest housing lenders. what that could hasn't for the housing market housing market the exchange is back in give md that helps me get clients closer to their goals. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence.two. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information.

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welcome back we're waiting to hear from the president but we also have a busy week for wall street on deck major earnings including apple, amazon and facebook are headed our way and the fed scheduled to meet next tuesday and wednesday wean the recent lack of economic data what will fed chair enginejerome powell say great to see both of you and welcome. so lindsey, earnings so far, the revenue is better than the profits, right >> yeah. so we got over 6% on the revenue line top line. bottom line we're seeing aps growth of 12.5%. both are beating but at historical average rates so 70% on the bottom line while about 55% on the top line. prior quarters the past year or

so we've seen higher beat rates. maybe we're seeing a little bit of a slow down here. you're seeing a lot of these stocks really pop off of mediocre reports and even cuts in guidance. >> next week we get the biggest cap names. are they bellwethers >> tech is a huge component. they lead the market up, they lead the market down they are starting to see a little bit of a bounce can they hold on apple is really key. accounts were 26% of tech sector earnings >> wow nancy, so given what we talked about in term of the stock reactions here being largely positive if there's names you like do you buy them now ahead of earnings season or wait for that confirmation or lack thereof next week? >> boy, kelly -- congratulations. i haven't talked to you since

your new show. it's awesome that's the question that every portfolio manager wrestles with. for example i would not have been a buyer of ibm pre-earnings you have more information and clarity out of earnings so now we're taking a look at do we want to go back in in terms of some of the beaten down stocks it would have been the right strategy take texas instruments it wasn't a particularly fantastic quarter but what you saw was a management team that knows how to manage through the downturn and it is just that it's not a no growth it's just slowing growth so i think it's an opportunity if you have high quality companies that you like and you like these valuation levels. i don't know i would be afraid of buying apple ahead of the take i might. >> congratulations on your new venture too. what are your favorite names right now. your afraid of an economic slow down >> i think an economic slow down is largely priced or mostly

priced into this market. we had huge decline in s&p 500 pe across the board. we had multiple compression. sorry that was awkward multiple compression last year usually that's followed bay stronger year because the expectations have been muted so we like some of the consumer dependent names. we had been buying in december we were buying starbucks we added a position in tiffany, despite the slow down in china from a valuation standpoint those have been good designates. we added a position in morgan stanley. >> lindsey, final question we had a "journal" report how they might not shrink the balance sheet the fed as much as thought. will that overwhelm anything happening with earnings next week >> this week is a good example of how stock picking still works. any news from the fed is a positive for the stock market.

you see these stocks react well. the fed has been a big question mark and concern for the market. >> then the super bowl we that have super bowl before the super bowl guys, thank you. lindsey, nancy, great to see you both appreciate your time straight ahead we're await agnus conference from the president on the government shutdown expected to begin at half past take a look at the sectors energy and materials are leading the market the market utility only ones in the about potential investment opportunities in real time. "the exchange" will be right back gimme two minutes. and i'll tell you some important things to know about medicare. first, it doesn't pay for everything. say this pizza... is your part b medical expenses.

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welcome back we're keeping an eye on the president who is expected to address the press in just a couple of minutes. still waiting to hear if there's an official announcement of re-opening the government. pell milling about and getting ready for that meanwhile mr. cramer is here finally. >> i love the show >> thank you >> it's been terrific. you're doing such a great job. >> you're the one who is about to bring us some news from tim sloan. this interview just happened jim sat down with the wells fargo ceo and asked him about the government shutdown. >> as of november last year you had a direct deposit which was the most recent information we had, we automatically started to waive overdraft fees we reached out to customers to say look, if you're affected and

you got a loan from wells fargo give us a call, we now have 14,400 customers that are in the midst of discussions we'll waive fees we've done that. we'll extend payments. whether it's a credit card, mortgage, you name it. that's what they are asking us for right now and that's what we're doing. >> again that was wells fargo ceo tim sloan. these are sound bites from the future in a way. >> for tonight what i did obviously, i said listen wilbur ross i just read the quote he said this i want you right now to pledge that you will do a loan without any interest and that's exactly what he's doing. it's in the form of overdraft, obviously. he's investigating how many people need it >> jpm doing the same thing. sort of do their part. he said 14,400 customers have asked to waive fees. that's a pretty big number >> any of us do work in our communities, if you do work with

your food bank you're hearing about this these are not people who are beggars. they have job but not a lot of money. i thought that this was good would i like him to make a loan of a thousand dollars. he said this is better than please may i have a thousand >> also being able to do it quickly. >> exactly right >> it takes a little while how to figure out. >> i know we're in a country where it's very, let's say fashionable to bash bankers. i worked at goldman sachs. let's trash them about malaysia. but this is responsive and responsible. >> this is going to sound -- is it savvy because the first thing maxine waters is going to do, financial services committee is have the big banks come testify. we don't know what the agenda is she says we want to look in, to

you know, their oversight to see whether they need to be broken up, if they are abusing their clients. maxine has singled out wells fargo for harming its customers. >> the only thing to be savvy we're war criminals and we're glad to be here. there's every single right by the government to look into what every bank does. their bank charter they make a lot of money we want to know what they do wrong and we want them to improve. wells fargo did a lot of bad things and they've improved and what i don't believe in -- i'm a big believer in self-improvement if you fix things i can't hold you accountable as if you haven't. i think tim sloan -- look tim sloan's biggest problem is that he was at the bank he was at the bank >> now he's in charge. >> those of us who work on wall street when we worked that if you were connected in any way, shape or form you were groomed

he talks about some of the mistakes he's made elizabeth warren wants him fired. >> elizabeth warren also wants a wealth tax over $50 million we'll talk a little bit more about this later on. >> that's a lot of money i would point out the thing that's interesting with warren is personal antipathy. when she says i want you fired other than the president who had a tv show dedicated to that proposition she's gunning for him. that's why i asked at what point is a liability to the bank if you have someone running for president and she says listen i got to tell you first thing i do when i'm elected fire sloan. look if it becomes a point to the board -- >> how much depends on these appearances. if they say one thing. if it doesn't go right if they don't answer a question. they will be out

>> oh, my god. you have to understand even though they put new people on the board and got a lot of new people who are officers there, elizabeth warren just says listen he was a senior executive there. therefore, he failed to supervise, therefore he should be fired that's her m. o. by the way a popular m.o. in the country. >> the banks have let led us since that christmas eve bottom. >> i did something that was completely out of character with wells. i mentioned the stock. i said it might be cheaper i was conscious how off message i was because here's tim sloan and i'm talking about buying the stock at 50. it was almost like a breath of fresh air. you want to talk about the stock that it's an opportunity >> it is "mad money," for hea n heaven's sake. we talk about things he did with the commune. i have to talk about maxine

waters and elizabeth warren. >> does it end with maxine they rallied knowing she's coming in to this committee. they will be called before a ton of antipathy por y toward. >> these stocks have multiples because of the yield curve and because of worried about a recession and because they have such low multiples after they are finished bashing, i can give you the script mr. sloan, have you no decency, mr. sloan which is reference to senator joe mccarthy what ends up happening okay, all right, drawn and quartered next we bring in. next >> that brings us back to what we started off discussing. when you spoke with him he said because of the shutdown he's going waive overdraft fees for workers affected, waive fees on loans. 14,400 customers looking to take

advantage. extend payment terms we don't know what the president will say what happens if this is a temporary solution and a temporary re-opening of the government we're back here in three or four weeks. what will banks do then? workers are back maybe getting a paycheck but then on the sidelines again. >> i don't want to be the ceo of a bank two months from now if this thing is in front of maxine waters we gave forgiveness. enough is enough what we're doing is take their cars i took someone's keys to a house because they missed a margin call i have a conscience but i need the calls. look i just took the keys to someone's house that doesn't fly any more in this country no matter who is the president >> you're right. speaking of which we're about to hear from him. jim, thank you so much we're face-to-face very intense >> don't you like it

i'm face-to-face you get made up in the morning great to see you what a team player you are >> thank you there's much more coming up with jim's discussion with tim sloan tonight on "mad money" 6:00 p.m. eastern right here on cnbc you saw there a shot news conference we're waiting to hear from the president in a couple of minutes. he's expected to address the government shutdown. everyone is still with us standing by to talk about the announcement kay lashing what are we hearing in terms of what to expect at this point >> reporter: the expectation from capitol hill the president will take the podium to nuclear weapons some sort of a break through on the shutdown, a deal he's reached with the democrats to end this impasse. the catch is what had been under discussion was a short term funding bill to re-open the government for just three weeks. that's shorter than the duration of the shutdown itself which has been going on for five weeks during that time they would be debating the funding for the department of homeland security

and potential border wall funding. remember yesterday when two separate bills were brought to the floor of the senate for votes there was a democratic bill that did not include border wall funding there was a republican bill that did include border wall funding and it was that bill without border wall funding that got 52 votes to 50 votes for the republican proposal. there's actually more support in the senate for the route that did not include border wall funding. it does appear that is the contour of what had been discussed behind-the-scenes. although as we've learned covering this administration it's anyone's guess as to what any final dale would consist of and what the president would choose to announce the buck stops with the president when he makes his announcement >> eamon javers, what about you? >> reporter: we don't cho what the president will say one administration official tells me that the president is expected to announce a three week clean cr. that is a continuing resolution

that would fund the government for three weeks. now the president had said and the white house has said the president would not accept any short term funding measure unless it had what they called a down payment for the wall in it. now this one administration official tells me that there is money in the cr for a new wall and $1.3 billion pro rata for a new deal that's from one official this is a very fluid situation we'll wait and see what the exact terms are as the president announces them i'm told this is a very fluid situation. officials did not know whether the president would make these remarks, where he would make these remarks. it was up in the air until the last minute. i'm also told that -- excuse me. i'm literally texting with administration officials as we speak. so this is going to be -- this

funding will go on while negotiations continue on the larger dhs and border security appropriations bill. so the idea that they will continue negotiating and re-open the government so that can happen we'll wait and see >> what were you saying about the new wall money here? >> this is one administration official is telling me that there will be money in the cr for a new wall and that there will be $1.3 billion pro rata for a new wall in this deal. that's from one official and we'll wait for the official word from the number one official here which is the president and he'll be out there in a few minutes. >> that's for sure michelle caruso-cabrera is here with me on set we're talking about a three week extension. is that really going buy enough time to come up with a longer term solution. could you have said this same deal, you could easily have had back in december and avoid a shutdown >> facts have changed since then workers have been out of work

for a long time. hasn't gotten paychecks. maybe workers are happy to be happy at home christmas time thinking this would be a short term thing things are different this time for sure if they can't come to a deal in the next three weeks i wouldn't be surprised about this whole playbook about declaring a emergency comes back than legally contentious way to do it. but that would keep the government open in the meantime. >> john harwood why haven't we heard much about that option lately >> reporter: the administration fears two thing. one, criticized from the right for surrendering because most people know if he declares a national emergency it would be held up in the courts. skorngsd there are some republicans who said that's a dangerous constitutional precedent. but i just left a lunch with nancy pelosi who took a phone call from chuck schumer while we were in the lunch.

she was caution and saus and wee what the senate does a clean cr and then negotiation over the dhs money that will not have any money for the wall. she indicated there was flexibility around nonwall border security money, but the democrats are not lining up for any money for a new wall what she said is we're not going to govern by campaign slogan and i asked how the president could accept that given the fact that he said he could only take a deal with the wall she said don't worry about him he'll claim victory no matter what he could take these flowers plant them on the border and say i got my wall. >> john just said pelosi said there will be no money for wall. your reporting says there is money in the cr for a new wall, $1.3 billion >> reporter: a pro rata basis. the devil is in the details.

negotiations will presumably be ongoing. now is this some sort of nuance that would allow the president to declare a victory or at least not be forced to declare defeat? that may be what the white house is looking for here. these details are just emerging. literally texting with officials right now. so i think we got to wait for official announcement from the president. >> kelly, remember $1.3 billion is what the democrats had offered in nonwall border security money before we had the shutdown so that's the same number. perhaps someone in the white house is calling that new wall money. but if it was new wall money we wouldn't be having a shutdown. so that sounds to me like a face saving rhetorical device for the white house. >> a lot of this is semantics. >> a semantic threading of the needle to save face. >> as this has gone on day 35,

first couple of weeks end of last year we know it's hurting first quarter gdp in a straightforward way. people aren't working, spending, all that if this now is a three week chance to re-open the government, some of those paychecks go out that will offset a little bit of hit but extends this out now three more weeks unless they come to a deal before that. >> in terms of uncertainty i'm confident both side want to get something done and the willingness to get this open for at least three weeks leads to something. there are other options that the president can do john harwood says accurately so there's all these concerns about declaring an emergency the president doesn't necessarily want to follow what the right or left say. >> i think michele is right in an important sense that is if they get a three week deal to re-top government they are not shutting it down again in three weeks mitch mcconnell and the republicans do not want to go through this again

so i would believe it's highly likely that if they go ahead and pass this in the senate with the president's ascent, pass it in the house, re-open the government, go back and forth on border security and they will reach a deal >> how is that any different from what we're doing now? >> the president's approval rate is 10 points lower than when we started. >> we'll open the government once again and either he's going to say because my approval rating has slipped i'm going to decide i don't really need the border wall. that's the only thing -- what else will change >> nothing, really but the point is, people have had enough with this when you have the groundstop at laguardia today, that's a bit of a breaking point all the stories we've heard about federal workers. so they will figure out some way to dress it up but i don't think that this congressis going to go back to that place and i

think that they will push president trump very hard not to go back to that place. >> again, we'll come back to this in a minute the president is expected there at any moment. i'm guessing a lot is happening behind-the-scenes. take a quick break and we'll be back with full coverage of that in two

welcome back a fluid situation. we're await agnus conference from the president any moment now. it was expected to begin at half past he's expected to address the government shutdown. our reporters are standing by. guys, great reporting on what we're likely to hear from him. it sound like a three week extension to re-open the government, kayla. still some semantic difference of what's in there in terms of wall funding you know, i understand, i think that after three weeks time we won't shut down again, the proof is in the putting.

>> is the senate majority leader at the beginning of this shutdown when asked by reporters if there would be a shutdown over funding for the government he said emphatically no and was sure the power of the purse rests with the white house even today senate majority leader shared with his colleagues lindsey graham who shared with cnbc that he was deferring to the white house on this so republican aides that i've been in contact with throughout the day today, they will talk about what they thought people were going into conversations with the white house, discussing and that is this three week stop gap funding for the government to keep it open on a short term basis while they continue debating forthe funding for department of homeland security nobody is confident of saying what will come out of the president's mouth. he's known to change his mind frequently anything can happen in private conversations with people and we don't know what democrats brought to table as well

we await the president here. as i mentioned republican aides will say we think we know what is going to be announced here. they are never share >> what about the process of this, news wires are saying according to white house aides the house could pass a measure as soon as friday if republicans agree to hold a vote >> we're still trying to figure out how that would work. nancy pelosi told her conference that she would give the house 24 hours notice before any votes would take place now a voice vote could happen remotely if members of the house are not present here on capitol hill they were not expected to convene back here until noon on monday but it's unclear how much notice she at this point is obligated or would give members of the house before voting on this. members of the senate told our producer that they believe there could be a vote by unanimous consent in the senate as soon as this afternoon if something were agreed to and that would mean basically running through the senators to see if anyone

objected and they would meet as the name implies unanimous consent. >> i was going to say that speaker pelosi said we hope to get this done today but that the senate is going to go first. the house is not going take it up unless they see mitch mcconnell and chuck schumer got something to get through the senate if that happens the house can move quickly >> they want to see the senate side move first. does this suggest -- there's a couple of things when we see the government is re-opened does it have to literally be a business day or could it happen over the weekend bay stroke of the pen or what have you and paychecks start getting dispersed immediately. >> could happen over the weekend. when i said to the speaker is the government going to be opened on monday she said i hope so i do believe that there's a lot of optimism. again as kayla and eamon javers were both indicating there's a lot of uncertainty with

everyone she took that phone call with schumer. she said i want to wait to see what they say at the microphone and that will determine what the house does after that. but the track that we appear to be on is this clean xtension for three weeks that it is my belief that will the end shutdown and we won't have another one and then they will have a negotiation over dhs funding. speaker said our dhs funding bill has $49 billion we can move money around the money that the house would insist on is that it would be for nonwall border security money. that's the conditions that have applied to the previous border security money under the republican congress and i think that condition would apply here too. >> michele, we're talking about a three week extension even if we have some clarity at this moment, not clear what happens after that >> from the beginning the shutdown hasn't driven the markets. the last moment where i thought it was going to go on and on and

there was concern because of the temporary effect on gdp that's been high lighted. ge in the formula for gdp, but the market has assumed that this would come to an end and wouldn't have a substantial impact because historically what we've seen yes there's a hit during the quarter when a shutdown happens they get back pay. everybody goes back to work. then there's this artificial boost. >> that's why i wonder if this now gets dragged it gets resolved but dragged out at the same time today the reaction is a slightly negative but not too much >> one of the concerns is what does president trump say no matter what he's going to declare victory, right how is he going to do that and is that going in a way that upsets the apple cart to the deal that we believe has happened behind-the-scenes >> he's usually pretty punctual. >> that puts the fluid in fluid

situation. we were told, this was supposed to happen at 1:30, 18 minutes ago. obviously that didn't happen that gives you a sense they are dotting the "is" and crossing the "ts. i was told there could be funds to spend on the new wall maybe the democrats won't necessarily agree with white house's read on that >> is that conditional >> could >> first they were saying there will be money in the cr for the new wall now they are saying funds could be spent >> money could be spent on new wall there's a lot of semantic games being played in this debate. what's new wall versus what's old wall, what's existing money versus what's new money, what's

being prepurposed from other agencies there's a lot of details here and ways they can move money around of course, the new acting chief of staff heads the office of management and budget they're familiar with all the budgetary procedures that you would use to move around to different accounts that would allow the president in some way to suggest he'll move the wall but we'll see what >> we'll take a quick break and get you the latest everyone will still be with us here to see what the president has to say be right back. with a cockpit fit for aspaceship. hang on. radar that senses things the human eye can't. busted. and the ability to make a thousand decisions before you even make one. was all this, really necessary? what do you think?

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welcome back to "the exchange." we are awaiting the president expected to speak any moment about the government shutdown. steve grass standing by. we're getting reports this will be a 3 week opening, extension of the government and you might think markets would not like uncertainty, granting, resolving it for the time being. dow is up 200 points here. what are you thinking? >> i think the market wants to see something that's confirmed and that gives the markets some

closure but they can't trade off of, i think it's sort of this status quo to answer your question, kelly. i don't think they're going to change anything, the market stance, if dc circumstances have not changed, but the good news is they're talking we're working something out. >> right. >> so eventually this is not, this won't be a permanent solution but it means there's light at the end of the tunnel so at least it's constructive in that manner. >> even if it's temporarily resolved, i think we'll get more on this later but at least the release of paychecks to people and then we start to get a little bit of that bouncebackesqubounceback esq effect, at least for right now. >> i think the administration is nervous about the perception because they're coming across as if they don't care about the federal government workers they're not receiving paychecks. not everyone can live going on 30, 40 days without a paycheck so i think they're trying to

avoid the callous nature they're coming across and yesterday when we hear wilbur ross say they could just off the cuff take out a loan, it comes across a little callous. so i think they're trying to avoid that stance. >> let them eat cake, kind of marie antoinette pictures making rounds we also spoke with jim cramer and he spoke with the ceo of wells fargo, among the banks waiving overdraft fees, waiving fees on loans, trying to get help out there for these government workers so i think that moment yesterday you're referring to is also prompting, the financial system to step up and say, yes, we can help out as well >> right and this market is taking its lead today from worried about or less worried, i should say, about quantitative tightening. this market is taking its lead from the pboc, doing more stimulative measures for the banks. so this is sort of the cherry on

top, if you will if we get something that leads to a bigger conversation, the market is going to love that, but ultimately, this is about the fed and this is about china trade and this is, as long as dc doesn't continue to screw it up, the markets will go sideways to higher is my opinion >> what would be the best possible announcement for the president, forgetting the reality here, what would they like him to say? what's the kind of thing they say, great, we're off to the races? >> if there's an agreement on this border wall, where he accepts less than over $5 billion where the democrats step up and say, okay, it is security measures, we could all agree $2 billion or $3 billion for that and grab money from somewhere else and fix the border walsh. i think the market would love to hear that agreement. >> you agree on that there are the contours here of a win-win despite the lose-lose of the last 35 days. >> i agree with what steve said.

that would be the ideal. i'm not sure that's what's going to happen from the president but i take the the biggbigger point what's driving the markets monetary policy and the wind at the back of the markets. all the concerns happening in the world. brexit, et cetera, maybe they're not going to be as tight as they had originally planned so that's another central bank in the world, may take off the pedal and that's going to help the market >> off the top of the hour, central banks back to the rescue here to back off the balance sheet tightening by that much, that's something. >> that's huge for me, it's where we were talking about this in october where no one focused on the quantitative tightening, the balance sheet reduction and now when we're all focused on it, if there's going to be flexibility and the $50 billion coming off per month is a higher end. if they're going to come off of that, that is tremendous for the

overall market but the truth is can it be that easy again, kelly and michelle >> it's been that way for ten years. >> last year showed us that everything we expected to happen didn't happen. so now when you have this concerted effort of all central banks, easing, can it be that easy just to rush into all risk assets again >> eamon javers still standing by we're now an hour past when we first thought we might hear from the president. we just keep staring at this podium, and even though you're reporting what you hear from administration officials is something moving? >> trying to polish up the script interms of all this nuance here of the moving pieces the president will want to have a good look at what they're putting on the teleprompter before he says it. bring you some additional information from an administration source who tells me this deal will be through february 28th. so that gives us an end date to

look forward to. >> 28th? >> that is per one administration official. >> that's over a month >> that would be the deal. >> i guess 3 plus weeks. i don't have my calendar in front of me, but they could be changing all of this inside the oval office as they work on the script for the prompter and the president will be focused on the idea of whether or not this is a win or a loss for him politically. he has said he's not going to cave nancy pelosi and the democrats are doing the wrong thing. this is viel this is vital for the country. he said the future of the country hinges on this deal. they've raised the stakes on this historically to an enormous degree the president will want to present this in the best possible light in terms of reopening the government and hopefully from the white house's perspective, the wall street reaction will start to give them a boost in the sense of they've done the right thing here. >> just put something in news connect.

>> we've been looking at the "new york times. maybe february 15. maybe february 28. a couple of weeks does matter. maybe it looks more likely. >> that means in the last hour, still negotiations on as things leak out but nothing firmly decided yet, perhaps why we see this delay of at least an hour >> okay. you know, steve grass down at the exchange for us. i'll go join tyler matheson to pick things up as we wait for the president. >> i'll point out if it is february 28th to which the government would remain open, that's one day ahead of march 1st which is also a preshant date as kelly mentioned, we're waiting for him to speak from the rose garden. a chilly bit of a rose garden, i might point out. sources tell cnbc the president is consideri s