shipments are down since the launch of the iphone 11 line right now apple shares are down by 1%. >> that is affecting somewhat the do you we were affair i wonder whether that try dent chain trade talk from bannon and criminal cramer. we'll see what happens on the 15th, though make sure you join us on tomorrow's "squawk on the street" coming up right now. [ music playing [ music playing >> good morning. welcome to "squawk in the street". futures are down moderately on several big stories. uk election. ecb meeting. president huddling with advisers about whether to allow tariffs to click in. ge, starbucks, europe is relatively soft.

our road map begins with 5 ge, it's a big rebound next year shares are rallying. >> a pushback when a study finds elizabeth warren's palestinian would be nearly 30% less than projected. >> that tariff deadline is looming as the president prepares to meet with top trade advisers today let's begin with apple shares are down more than a percent on the heels that credit swiss saying iphones did drop 35% in coin. analysts warning of the ongoing tariff threats they do couch it, jim, saying there is some seasonality. the timing of the calendar slightly up. the second double g digit in a row. >> they do, an important photo they talk about tariff costs will cost $67 more in the united states for an apple phone.

this is definitely a negative. i always say own it, don't trade it i need to know more. i know a lot of these different surveysent what's really going on in china is inaccurate. the narrative implies the chinese government doesn't want you to buy apple when i read this, that's certainly how i feel >> they go on to say a third of calendar and iphone sales that they have a difficult time pushing it through to contuam seoulers without an impact on demand >> do we look at the fact this gentleman mathew cuttrall had a 221 target price and a future tral line. so i balance this look at china with the purposeful need to have the facts fit within the story

time frame maybe this is a gambit >> it does worry we get these reports that are okay and hasn't meant much we talked about apple's performance up 70% or so year-to-date coming off obviously the lows that it did see early last year after that warning on china, which seems like a long time ago. >> $142 down there in january. now, i spoke to tim cook along with my friend josh lipton when they reported the last quarter certainly, this was not something they did know the november numbers, but i do feel that people are going to sell the stock and silt hard on this until won refuses. now the 21 thing i would say is they want to hear, i don't know if we have katie from morgan stanley. she's always had a better handle

than any other analyst the term they use credit swiss will impact trading. i think it's front and center for the tariffs. where people say, listen, who's really going to be hurt by the tariffs. so you know this is a gang op. this is a well-timed piece that will make people say, wait a second i did that with starbucks. it hasn't happened to a lot of kansas that do business in china. but it is happening. >> it does bring us to the meeting with the president today and tomorrow kudlow, lighthizer. >> i will not be there. >> steve bannon, okay, using you as an example of a quote liberal democrat who supports walking away. >> i have a voting record, a giving record and a won't highlight that >> nobody listening over the last otwo years would think that. >> reuters has a piece they site one source who expects tariffs to go through and says the white house is prepping

commune categoriess to justify the move saying it will not be that painful. >> well, when you look at it, what is it there's 150 billion and there's a lot of things that industries that they took from us footwe footwear, children safety, high chairs, car seats. the chine es have steadily taken the toy industry away from us, hasbro, matel has been trying to take it back there is no doubt in my mind that it will, there will be some impact, but it will be eaten by somebody, it won't be beaten by walmart, target. i think it will be beaten by the chinese. these are low skilled jobs, coupled with things away from china. they don't lose those shops. and i think the chinese know they're playing a long game. their long game does not jive with the republican party, other than joe biden represents a traditional democratic wing.

which is let's hurt the worker and move the business to china because the democratic party hear me on this, this is very true, it has consistently sold out the work on behalf of capitalists. i think it's a shame, republican versus done it, too. that was why there was such a joy to the original nafta. but the democrats have not fat for these jobs so i don't think other than the fact that the chinese use a lot of coal. you are going to see, this isn't bidens, the candidate. things aren't going to get better for hunter biden. >> those jobs aren't coming back here. >> it's expensive labor, jim yeah >> martin franklin who ran jardin, brought back a lot of the products that are being tariffed to mexico and under the new nafta 2. that's the smart thing to do that's the smart thing to do >> very interesting journal article a couple days ago, though, about the rise of automation in on factory floors

all over this country. the reduction in jobs, but the need, frankly, for a college education or, and/or significant education, whether it comes with math and/or coding and things of that nature. so you keep talking about a world that doesn't exist anymore. these are not the jobs of the future anyway. >> they're not going to be j.p. stevens which i helped strike against to get it organized against. >> you got to have a code. you've got to know how to run the actual automation. the robots that's what we will be talking about. >> that's the whole point of the whole trail blazer codeing is not something that is, it is a foreign language, but foreign languages can be learned. i'm not saying, david, that these unskilled jobs like the 900,000 teamsters jobs now gone. >> they've not come to that. >> they're not coming back >> okay. >> but that does not mean we

should necessarily finance a country of debt that steals our intellectual property, that dumps their goods on us. >> i don't think anybody would disagree >> well, then, why doesn't that matter >> it does matter. i'm not saying it doesn't. making argues about which political candidate is necessarily going to bring and/or not look out for the worker >> i'm saying that both parties have historically supported. >> globalization >> globalization >> thank you that's better. >> perhaps a mistaken assumption that china would become a fair player in the rural markplace and 20 years after the wto >> i thought they would. i was naive. >> you are not alone >> thank you >> the bottom line is, can we get sunday tariffs and have this market be as stable as it appears to be this morning >> i think after a couple day, yes, because i think people will start looking at excellent lists that are available about what's impacted and i think you will find there are a lot of things

impacted that are basically things you buy at walmart. i got to tell you. those will not be the $1,000 per increase per worker for family you will not see it. these are things that a company like walmart is quite adept at managing remember how many people shop at walmart. walmart is where you shop. target is where you shop costco is where you shop home depot is where you shop with, according to a discouraging report yesterday. >> you were more discouraged about it today than you were yesterday? >> no, they derisked it. i like home depot. >> it's an an upgrade along with ge they say the stock is at a fosstive inflexion point going into the new year, citing what it calls successful deleveraging, free cash flow, crossing the sentiment chasm they go to 14. >> this is a whole story in etc. size, it talks about, i love this one, power rising from the

ashes, power has been the black hole i think this is a piece that was written by larry -- sorry written by ubs and it is the evidence lab. >> it's been powered by the evidence lab got that going for it. >> david, the evidence lab is like ncis. very good range. >> they put that little stamp on there. then you know it's all good. >> yes. >> thursdays on cbs. >> yes, exactly west virginia did you do >> i said the evidence lab stamp. >> the evidence lab stamp. can i just say this is a 2020 story. this is more bullish i'm going to say it more bullish. >> listen, the last quarter when they increased margins by 130 basis points, increased their free guidance. the bears led by you know who would say it's still not enough to justify on a valuation basis. but there is a belief of the nar roy body airplanes out there what they got an 86% share >> these guys seem to be focused on aviation, two-thirds of the

enterprise value will have a growth, annual growth rate from now until 2025 >> right but again. larry cope ullp is not being as aggressive as this guy this is a piece basically saying gas power being a fet contributor starting in 2020 i don't think you can get larry culp to say that. >> maybe no he hasn't said much. there is a believe, jim, they enter next year finally on their front foopt. >> that is due to data management and mr. culp has been able to do so far. but they've disappointed in the past when there has been a belief that that would sort of be the narrative going into a new year for xe. >> that's why, this isn't, i don't leak that this is not a setup. larry culp can miss. i am saying larry culp is an amazing executive and he has

been not been as effusive about his own company as the evidence lab is >> right >> they're going with what are they a price target which is 14. >> right. >> sum of the parts also implies a next month multiple of 16 times. do you think that's appropriate? >> that's not what larry culp is talking about a sum of the part. not at all >> why would sfwhu. >> no. >> it doesn't seal to be valid >> the forensic evidence of the usb evidence lab is too aggressive i'm not saying that steve -- you had some disparaging name for him. >> i didn't. >> you said you did. >> so tuusa is too bearish usb is too bullish >> ubs reads like a stud bull. >> you've discussed in the past saying - >> listen as right as he was for as long as hess, he missed the

big move in stocks >> he overstayed things could be good in 2020 i'm not with the evidence lab. i think is this the one with ll cool j in the one in vegas which is it? >> i haven't bought since the original you know me. same an act kronysm >> i watched 25 years ago. >> we'll get cramer's mad dash, count down to the opening bell we mentioned the ge and updated home depo. lagarde is on the tape suggesting negative rates do quk "sawon the street" from nyc continues in a moment.

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all right. 14 minutes to get started trading open nyc >> let's talk about lululemon in the mad dash. >> i think there is bogus reportage for lululemon. this was extraordinary what i heard there was a guy down a shade down, that is not true there are six fewer days in this holiday period versus last year. the company is firing at all

cylinders. i suggest people read mathew boss, he tells the best story about how great this quarter was and how the forecast is really inline they are doing so much better than expected. they figured out the mall, too, they got these experiential stores that make you feel like you want to sweat when you get in there and they're sweat like. >> yes, they're doing a lot of events around the country as they hada lot in canada and they're doing so well overseas so those who recognize, yes, it's up a lot. understand that there could be profit-takinging but it's not because of a shade down in forecast that's simply not accurate i think when you see these stories, they're written, the headlines are written by machines because this was a terrific conference call. a great quarter. >> you actually make a great point. i heard that, i'm sure you have. any number of exact ceos who find their earnings release done by a machine or by somebody in

another country. >> yes >> who doesn't really understand and/or misses it >> right there are multiple questions in the q&a. not that the machines ever read the q&a. >> right. >> they'd say, listen, did you ever guide down? >> no. if anything we're taking numbers up this is very good. all that verbiage has been completely osplit rated by some stupid machine that says, you know what, hey, cut the from the. should a stock, can a stock go down after being up 87%? >> of course. >> should it be dead it's not from the forecast >> the forecast was fine the forecast did not call for pain >> no, by the way that was the best of the rockies. >> we got to go, because we got an opening bell coming up next stay with us (vo) the moth without hope, struggles in the spider's web.

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>> christine lagarde giving her first presser. >> i want to play you some sound from there here is a person trying to have continuity with the prior -- with the prior ecb president but also stake-out her own character as president here. >> under turnbox, you know, i'm not going to re-visit the past number one policy decisions that were made

stand and we're re-endorsed. neither -- or hawk and my ambition is to be this owl that's a little often associated with a little bit of wisdom. >> so odd actual news, she's trade tensions easing. i see stabilization in the economy, the ecb did downgrade 2020 forecast gdp from 1.2 to 1.1% overall, she says she will have her own style. you can see that, maybe the analogy we will talk about, carl, remember we had that greenspan briefcase perhaps the lagarde scarf is our indicator from now on. >> while i have you, steve, are you taken aback from the spike in claims or is this thanksgiving at work >> yeah, i think it's probably seasonal you know me, i'm not making a jump on a month's worth of do you that let alone a week's worth of data. my surprise is that it came down

i thought for sure the job mark would weaken a -- job market would weaken a bit, show up in claims, show up in payrolls. payrolls ended up blowing the door off with a 266 so i would not be surprised to see some weakening in the job market from here not one that we would suspect overall you have a falling off to really weak levels. >> all right steve, it's been a busy week with you, obviously with the fed meeting yesterday. good questioning by the way, our steve leishman in washington we got the onipeng bell in seven minutes. don't go away. [grunting]

[maniacal laughter] gold. gold!

right, uh...thank you, for that, bob. but i think it's time we go with gbtc. it's bitcoin exposure through a traditional investment account. nice rock. it's time to drop gold. go digital. go grayscale. you are watching cnbc "squawk" on the street, live from the capital of the world, the opening bell in under four minutes. a lot after airline news, jim, delta, the forecast or what we think is the agreement between boeing >> isn't that something? gary kelly sat right there talked about something i think would have been much more rancorous than this. a settlement that would be advantageous for both workers and shareholders i continue to believe, to marvel

that yesterday boeing stock was down 6 after phil lebeau's excellent interview. it closed unchanged. >> it really, they just i mean again i said this so many times the year this company had, why et the stock is up double digits >> because that's what happens when you are a part of a did u duopoily that dave cody talked about one of the areas he liked was aerospace, most people don't get on plane, people say boeing will get through this. it will take a little longer if that's all they own is southwest and these cash flow hearings and i know american wants money, too, it may not be as dire. that was a pretty easy settlement for boeing to make. >> delta's sebastian has been impressioned on the timing of the service of the max he told us in june it would take a lot longer than people

thought. this morning he talked about boeing and their forecast for 2020 >> i do think that boeing will do the right thing we're all waiting for that plane to come back into the sky. what we need, we need boeing focused on development and technology in the new frontiers of innovation. >> that right now unfortunatelier that paralyzed >> meanwhile, they see 2020 earnings, basically to the high side of the consensus. >> right i think these are all, you talk about something you just can't you can't determine. >> the fate is in the hand of the government plus i think that the people on "squawk box" were asking that same question a lot of us are asking, would you put your family members on it i think if and when the organizations that examine these things and make different nations say it's fine. the answer is yes. until then, how can we make an earnings estimate? i know boeing has to that's one of the things you have to do in your accounting. but i don't have faith in

boeing's still, i'm not sure they have been they don't know. >> speaking of other airline, fed-ex got another airline today. so to speak, that is one of the criticisms they have so many airplanes. ubs again saying can it get much worse in the upgrade to neutral? which you have to expect they actually a had a sell on this thing it's been vp been a good call. >> not expecting a great second quarter. they're not creating expectations this is a stock a lot of people want to own. i keep coming back talking act co-hosts ups post-date -- >> yes oh, got it sorry. david does join us a lot >> i think ups is the winner here the stock is down so low i find, though, there are so many companies doing so well why do i have to buy, anticipate the biggest inflexion? that's why i have a problem with ge it's very different in this environment. >> let's get to the opening bell

here s&p 500 at the cnbc real time exchange the ipo, bill dock, a financial services provider, small and middle for businesses. they're over the nasdaq p. him it's the opening bell there. we'll take a look at what appears to be a pretty solid open futures, obviously, muted to the downside all day. >> this morning, i was thinking about what can really happen you had a fed meeting that was basically benign you don't need to talk about it. you do have a huge meeting with the president, both sides, trying to determine. why would you be aggressive right here and buy stock ahead of what could be a rocky weekend where there will be some people who just say, you know what, i was hoping for a deal or i was expecting a deal get ready if there is no deal to do some buying on companies

doing quite well domestically. >> what kind of discount do we think on monday? >> you know, i think that you can get one of those option down 1 to 2%. unemployment is still strong a lot of -- let's talk about home depo for a second home depo, the narrative was that they're slowing in housing. i'm not buying that at all we just had toll brothers the other day talk about ten markets that things are great in so this whole narrative of things are slowing in the country i am not buying. yes, class c malls business is slowing. children's place, they say their name. >> credit swiss agrees with you. they go to outperform today. expectations have been reset and relative valuation of the s&p at these levels historically. they say it's been a good entry point. >> credit swiss take it away this negative piece about apple. they give you the positive there. i still am stunned by this i

just am not willing to go with this apple piece of credit swiss until i get another confirming voice. there have been too many people that have lost this money telling us to trade out of apple based on a data point that turned out to be false >> particularly as it relates to china? >> yes. >> i think it's fair to say. even when the company warned about it the market responded briefly then it was the long march upward >> long march. are you so clever like that. >> you just like those things like the teases we do at the network. make little jokes coming out but i do -- >> i'm learning from you, jim. >> thank you very much remember, apple peaked 100 points below they peaked in that thing in october where a very rookie fed chief made some ill informed statements on crazy talk shows and apple started going down after that then apple bottomed when people realized, well, wait a second. it's been derisked this is what i thought would happen with home depot

i to the it would be derisked before that meeting. it wasn't, i look to sell apple here tell me where you will get back in 247? 239. when will you go back in what do you got? >> but that's not to say that if, in fact, there was a significant slowdown or giving up, continued giving up of market share in china, it wouldn't be important for this company. it is important. >> there is no doubt about it. >> carolina is a very important part of their revenue base no doubt >> i was saying, i need a confirmatory because i have found that the, well, they will get some entity, some south china newspaper that says that apple is shut down production and these seven product lines. they will turn out to be, you know what, they moved the products elsewhere don't forget 5g. you will come in right here wham-a-jamma, there is ill advice on twitter, steve bannon says something positive about my

view i'm short apple here it's time to short apple i come when you walk away? because if you have 5g, which is going to be maybe one of the greatest secular trends in history. listen to yesterday that meeting. i don't know if you can get out and get in i don't know it's too hard. >> starbucks the other upgrade, series of upgrade, jpm goes to overweight 94 target after an investor meeting that they held at hq they went to neutral in july, the first time they had not had an overweight in the 15 years. >> at the top. they went to neutral so now they come n. they do talk about how the comp, they're feeling very good about 5% comps. when you speak to kevin cox. he is talking to scale which i keep hoping mcdonald's growth in scale. they had an aspirational 4%. in there they talk about maybe china a little weaker plus or minus. but starbucks is doing quite well, when it declined from 80, from 99 to 84.

kevin johnson came home at my show he at the airport and said i'm buying stock for the company. that was if you take a look, the exact bottom in the stock. exact bottom >> i'm looking at the same thing you're looking at. >> okay. >> ups up. not the evidence lab though. >> no? >> no actually this is j.p. morgan anyway. >> j.p. morgan doesn't have evidence. >> no, maybe they'll get one >> they have moves and the effort on their part in terms of, not private wealth management but giving more financial advisory and bringing things together servicing high clients. >> maybe the well liked person on wall street >> i remember when she was young. like me once >> oh, that's what happens, david. >> i've heard that i refuse to accept it. >> her brother is doing quite well. >> you see that guy on "60 minutes" you might be able to

reverse aging. c'mon. he's biogen etically had his brain frozen you never know. >> that's not bad. >> no no are you going to have your brain biogenetically frozen? >> thousands you got a lot more years ahead for us >> how is the thousand-year-old man doing? how is mel torme doing people yesterday on a real hard show all i heard was did you hear carl, mel torme we work thousands of hours, did you know that carl - >> and he loved mel torme. >> as they should. >> guys, haven't really updated the ongoing trial. only a few blocks up the street on pearl street here, of course, the state ags versus sprint and t-mobile today john ledger, mike seiffert, ledger current ceo to be, becoming very soon, going to take the stand state ag is going to rest at least, it seems.

and the defense is going to begin. >> yes >> very much unclear at this point. so much at steak, though, for these two companies. remember there is no merger agreement. >> no. >> coming back to that it's really weird you don't see -- the merger expired they all have a new one. are there talks to try to settle one would imagine that you can keep trying to settle with the states, right? you see it many times in the middle of a trial, too will it happen in who knows. i've talked about the expectation if they get to the finish line, there will be a price cut. look at spread, it's trading 30% below the price for the previous deal so it's interesting in so many ways as we try to understand what will happen here in court whether there is a chance for settlement what the price cut will be what if they get, if they don't, if the deal is turned down by the judge, what happens to dish? charlie is going to take the stand next week. that's my update i know it's not much sorry. >> no, it is, because when i

speak to people who are involved in 5g. they all said we need these companies to merge when i speak to people who are involved with your bill, they say, wait a second, four of the three won't go we knead many companies to be in. >> while we are talking, guy, really quick 15-point jump in s&p dow is up 85 on this presidential tweet, getting very close to a big deal with china they want it and so do we. very if all caps big deal in all caps it doesn't take much for this market, jim. >> then you buy am what happens if there is a deal, maybe the chinese says maybe we want to encourage apple. again, there is a big meeting tomorrow i have said on "mad money" many times, you don't know what's going to happen. so be prepared if there is a decline. so you can buy good stocks and if there is a deal, well, god love you things are fine. but the apple reversal this morning against the evidence lab of ubs is front and center

you get a deal with china, they love the apple iphone. they do. >> a big deal with china is that different than the phase 1 deal? it's hard to imagine it would be anything more -- >> the little we've had to go on the ag secretary on purdue on fox did say that china's committing to 50 being in ag but they won't put it in writing >> that is the holdup according to pursue. >> it's pork >> that is where the president is most agreed they need to see a deal with pork because the chinese don't have a healthy hog business and we do. and that's the one that the president has been mystified, why don't you come in and buy pork i tend to think you don't need a deal you don't node a deal. so don't side that your whole investment portfolio is dependent poon deal. >> disappointed if there is one? >> disappointed if there is one? wow! kind of, yeah. kinda, i mean, geeze, when are

you going to take them on? >> you want an extended trade talks. >> i think the longer we have one the more we stop financing their intellectual property theft, their cyber -- i tell you when i speak to these cyber people, the hacking, it's non-stop >> listen. we first pointed it out. i think it seven years ago i did that piece or eight years ago, when it became the board of directors. >> explain that to people. i think most people feel, hey, i'll use mine. they're listening. >> they are. >> listen, i can remember having conversations, corporate america was a little late to wake up to it goodman sax had a board meeting there. over there, they thought it was important. you can imagine what the chinese were listening to? but everybody is aware of it there is, it's ban board level issue for years now in terms of corporations being aware, being a lot more careful

and employing some of the firms you talk so often about, jim, in terms of cyber security. because the chinese have been so aggressive for so long in stealing intellectual property secrets. >> is it a cold war? >> i think it could match it up if the chinese don't come in and buy. they have to show good faith and they haven't >> meanwhile, the gaming stocks doing very well. she is expected to go to mccow and offer rewards, the rewarding in term for not having the social unrest that hong hang has had. >> that's interesting, that was one of the things the president was counting on that she would blast sheldon -- los angeles sand i used to call it mccow stance, that is a deal the president wants for los vegas savings. >> because he's such a huge supporter? >> yeah. >> that happens. >> just pointing it out. p. >> so with that nearly every dow

component has suddenly gone green except for boeing. apple may be too, bob. >> we heard it before, very close to a deal. president trump obviously his tweet obviously moving stocks into positive territory. it was sort of mixed there right at the opening initially transports were a little bit weak ups had an upturn positive ups was down here. they had a price cut over at marken stanley utilities flat banks have moved into positive territory. energy is doing very well, this week no drop in energy, despite the aramco deal is essentially sucking up all the oxygen around the energy debate. we did get comments. saudi aramco came up we got 4.5% again. we got the $2 trillion valuation. quite a feat to pull that off. we need to get our first analyst commentary sanford bern stooep, the first i know about they put a rating on here. too much too soon.

risks of corporate governance. the deposit owns 98% low dividend yields about 4.4% exxon has 5% dividend yields so they got a point about that saudi aramco 2 trillion as i keep pointing out, the entire market capitalization of every u.s. oil and gas stock is 1.1 trchlt you have almost twice as much in the entire energy sector of the s&p 500. let's move on here, ipos this is a chinese company that we're waiting for tomorrow but essentially it had the pricing terms cut almost in half overnight. the chinese company again 26 million shares, $9 to $10. the prior range, 12 to 14. sow see here, that's almost cut in half. this is back pedaling by soft banks. so this is 21 of the reasons a lot of interest in it. these chinese ipos have not had a good year at all we had 22 year-to-date here. 2018, 35 a noticeable drop here

the average return this year for china ipos down 18%. this isn't a year when the average ipo here is probably up close to 20% on the year so they're not working at all. there is a number of reasons why they're not work figure you take a look here. you can see what's going on here, we had slowing growth in china, obviously a problem trade tensions they've had poor performance overall. >> that begets selling here. we see tighter regulatory oversight in the united states nasdaq has recently tightened the regulatory requirements as well here. what's going to happen here, if this keeps up in 2020, a lot of these chinese firms aren't going to come over here anymore. they will essentially raise money over in china. remember a short while ago, they had a dual listing they're listed in hong kong as well, fairly small amounts but that may be an indication of what may be happening in the future >> that stock moved up nicely. ever since that was announced. >> that stock is sitting right near the highs for the year. but ipos here in the u.s., plenty of demand for high-tech

ipos here is a unicorn. go public, automated billing platform 9.8 million shares at $22 billion. wait the price talk was 9.8 at 19 to 21 not only is the pricing above the range. it's pricing with more shares in it here's the success it's not the ipo market that's falling apart. the bottom lean here is there is a lot of demand for this kind of ipo. the technologies, take a look ipo ets, it is outperforming, carl, the s&p 500. back to you. >> all right thanks, bob. getting a move in yields as welt on that presidential tweet. let's get to rick santelli at the cme. hey, rick. >> yes definitely in this the way we're coming out of this fed meeting the way we went into it. is very similar to the october 29th and 30th. of course, yesterday didn't result in a quarter point decrease in the rate but nonetheless, consider we had a cool ppi certainly tame let's use the word tame producer

price index. then the president's tweets. well, before we even got to that look at the jump we lad in jobless claims i rarely slow a chart in jobless claims we know it was seasonally impacted by thanksgiving but the 252 thousand, that happens to be the highest level. i couldn't believe this when i looked it up september of 2017. okay now look at two day of 2s, definitely popped up up one basis point now now let's look at a two day of 10s up four basis points so we have a lot of moving parts here. we're coming out of the meeting with rates moving a bit higher at the end of october. the long end is leaning again. we flattened both of the last couple meetings. we started steepening coming out of them. the long end responding to issues that aren't really related to data. long end rates on the data i saw for november ppi doesn't add up. once you add in the tweet it certainly does and we all know this was christine lagarde's first press conference and even though there

isn't a lot of new policy changes, maybe that is the point. steve leaveman put it adequately and right to the point she's trying to give some continuity but despite that continuity, people have hope, especially for fiscal stimulus. look at a one-week chart of the euro currency versus the dollar. a lot of volatility today. it really has cleared the zone now well over a 111 handle carl, david, jim, back to you. >> a lot of boiling pots today, thank you. meantime, the wework saga is set for hollywood treatment. the hollywood reporter says a new series is in the works based on the upcoming work from elliot brown and morgan ferrell in the starring room of adam newman, actor nicholas braun is known for his hbo hit show succession. you can bet there is some good dramatic narrative they can spin out of what we already know has actually happened in real life. >> it's amazing, the books have beennd way for some time that actor in question is very

tall like adam, himself so they did go for the physical resemblance. there he is. i love him in that show, by the way. it's nothing like cousin greg and tom talking recession. >> too far behind. >> you are way behind. they won't have the new season out for quite sometime in succession adam newman. >> i don't know. i think we know the story. >> yeah. >> what is adam going to do, though what does adam do with the rest of his life? >> with the rest of his life i don't know, he's rich. >> senator cotton on the "squawk" says he wouldn't mind having hearings, having newman testify, perhaps. >> wow that's exciting. >> we're trying to figure out there. it wasn't a public company the public market actually rejected it. the system worked in a way. >> he's a funny guy, adam. hysterical. >> very charismatic fella.

>> hysterical. >> by the way, check out our podcast, won't you listen to the opening bell on the street market up very quick 142 on the dow as the president tweets a moment ago, getting very close to big deal with china. they want it and so do we.

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apple over the last three hours dragged down by this callout of credit suisse throwing cold water on iphone sales and the president's tweet turned that nearly around back to 270 tock trading with jim in a minute you want? i've got uh, ai robots, i've got vr goggles. i want your sled, please. no. [ chuckles ] timmy. it'd be a shame if this went viral. for those who never compromise. the mercedes-benz winter event. whoa. he was pretty good this year.

let's get to jim. >> people want a 5g stock. people want broadcom they report after the bell the stock is at an all time high and the stock is still low multiples. still good yield and i think it will have an upside of surprise because ca was bought. doing quite well that's one if you believe there is going to be a deal and first time the president i think says they want one and we want one which is different do i necessarily want one? that's beside the point. >> plus, you'll have adobe and

oracle. >> adobe is a big interview. will they maintain 20% guidance? a remarkable company robin hood has helped younger people invest. >> you keep telling me 10 million accounts i keep hearing you saying that. >> it's news and important >> i've been listening >> want me to talk about the jets versus baltimore? >> no, it's the reason for the ameritrade merger in some ways. >> that's all i wanted to know. >> i didn't know whether you felt that it's time for le'veon bell to stop bowling and stop runing >> schwab gets an upgrade. >> compass point a lot of new firms out there >> jim, big day today. we'll see you tonight. >> it is a huge day. >> "mad money" at 6:00 p.m de dow up 193 demand has never been higher for what we do.

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futures were relatively soft before the open but that presidential tweet has turned things around. dow is up 210. back to 3164 as we wait for more details about a potential phase one agreement. >> road map starts with, quote, very close to a big deal with china. this from the president ahead of a high-stakes white house meeting expected today as carl mentioned stocks rallying. >> harrell ham -- harold hamm set to step away year-end surge in corporate dealmaking morgan stanley's head of mergers and acquisitions will join us this hour to discuss. >> markets rallying as we said after the president tweets getting very close to a big deal with china this as he's expected to meet with his top trade advisors at the white house today. mike santoli is here to talk more about what investors are watching as the response is this

once again. >> the market has been very firm in the last couple of weeks. that little pullback but during the last few days i've been talking about how there's been a lot of hedges. the trade seems to be, look, stay long, do your end, everything else is working in their favor but we have this one identifiable potential catalyst that can go either way let's hedge in front of it you had this kind of juiced volatility index because people were buying downside protection. well, this one tweet kind of like knocked a lot of that loose and so you release to the upside the overall story is if the two big roles, don't fight the fed and don't fight the tape both the fed and tape are friendly at the moment at least in terms of how those trends are looking i obviously think it matters if you do get the deferral or lifting of the disease 15th's tariffs but matters for the next couple of percent, it doesn't necessarily matter as much for where the market will end up. >> meanwhile there's plenty of other macro to consider.

lagarde with these comments. our jobless claims up to 252 sort of strange as we wrestle with seasonality >> it is train and i think that's why i'm deferring to the market saying there's stuff we care about and stuff we don't and the big picture given what jay powell said yesterday and given the fact that i think that the big key for the trade decision is if you get those tariffs put off or set aside, it enables everybody to just expect macro to get better and you don't actually have to prove that because you can sort of say, hey, we just got rid of the tariffs, let's wait for the confidence channel to work its way through. whether that happens or not people can believe it for awhile that's why i think psychologically in a tactical way the tariff thing matters the market -- willing to rally on this stuff and don't even know. >> people have been seeing at the bottom of the screen but dow jones is reporting that the negotiators offer to cancel the

tariffs that would go in place on sunday. also offering to cut existing tariff rates by up to 50% on the 360 billion of chinese imports already under tariff dow jones going on to say they would reimpose the original tariff level in china fails to carry out pledges and apparently the software in recent days both sides are close or seeking a trade deal and we want firm commitments from the chinese on their purchase of u.s. products so the s&p has moved to i think a new high you can see it right there up almost 1%. >> right so that's probably even a little bit more than coming into today we thought we might get. if, in fact, you know, in exchange for, what i guess is the question but -- >> well, it's not just -- as you said not just december 15th cancellation but 50%. >> off the 3 -- >> which bloomberg reported. the possibility maybe you bring everything down by half. >> if, in fact, china meets whatever the commitment is, i

assume, i've always viewed this issue as much more about a nuisance and a fight that the market didn't want and want it just finished and as i said if you roll back those tariffs all of a sudden you get another, you know, little thing that next year can look better than this year, you know, on the comparable basis. >> i think the key you just stressed here is that in exchange for, what, in terms of the decreasing of these tariffs, and that's going to be a key piece of this puzzle too that being said, mike, one of the things we've been talking about is this idea that you could be seeing a reigniting of the reinflation trade. we get a deal, is that off to the races? >> it would push in that direction. obviously the dollar is weak this morning again. and you are seeing commodities start to revive and the market -- the stock market has been trying to say there's going to be this industrial cyclical upturn and that's been for a few months i don't think it's decisive or

says, oh, that's it. just buy like metal bending stocks and autos because we're basically back into that, you know, factories are going to hum again. i don't think it has to be an either/or. if you don't think yields are going much higher i don't see why the growth stocks don't hang in there we're still talking about relatively low earnings growth on an aggregate basis. >> what kind of lag is there between any kind of phase one deal and a significant return of corporate confidence and cape. a year >> corporate confidence is the survey stuff turns immediately but i think you are also running into everybody has a reason why you should start getting worried in three to six months about the election whether, in fact, a genuine worry longer term or not so i don't think we're looking at a capex boom but a normalization. >> trade uncertainty for political uncertainty. >> eventually. but i think you've already seen -- looking at the global

purchasing manager's index and have seen they've gone higher so a normal, you know, kind of, okay, we had our slowdown now picking up again type of move. >> yeah, so energy, financial, materials, industrials all trading up more than 1% in terms of sectors in the s&p right now. transports, best performing average up 1.7%. we see some sort of trade deal here finally are you going to continue to see that average finally pick up the pace and join the others >> that's the playbook i mean, look, i'm watching all three indexes up the exact same percentage term so kind of just let's buy the indexes and emphasize the obvious ones transports had been just range bound forever, right so if you had an excuse to see if you can break out that have rank, sure i think that makes sense because you're going to have there a very good reason, a cover story for lots of earnings estimates up revisions next year >> we should point out we've been close to potential deals in the past

as close as this does seem given the level of detail we're now getting and the president obviously saying both sides seem to want it. >> yes. >> but it's always worth a built of caution in terms -- >> the first time we've had headlines where there could be a potential rollback in tariffs that already exist or the rate of the tariffs >> that's certainly an important component of it. >> we'll keep our eye on it. mike santoli meantime, billionaire oil tycoon harold hamm stepping down of the company he founded he's going to stay at continental in the role of executive chairman and joins us from oklahoma city talking about the transition along with incoming ceo bill barry. gentlemen, good to have you both harold, i guess congratulations. you're such a touchtone for us talking about the space. why now? >> well, it's a good time, carl. it's a good question you know, i call it stepping up, you know, much of the role i'll have in the future is what i've

had in the past as chairman of the board, you know, driving the strategy and the vision of this company and will continue to do it and so pleased that bill barry is going to be in the role of ceo it's going to be exciting to work with bill he's been a very strategic partner over the past five years on our board and, you know, nobody we could get would fill a slot any better. he's fantastic i think, you know, the timing is right. you know, i want to be an energy advocate for the country talking about the energy renaissance and amazing opportunity that we have out there in energy and what we're doing, you know, for the environment and for the country. we're much safer country today because of the energy renaissance and oil and gas that we have and the ability to export not only freedom but also

plain natural gas, plain fuels around the globe so have a lot to do and i'm looking forward to it. >> we definitely want to dig into that piece of the conversation here as well a bit more congratulations to you both but, bill, first, when you take over the helm as ceo at the beginning of next year, what will be your first move how should investors think about the strategy under your leadership >> well, thanks. well this, is an exceptionally well run company and has been for quite some time. culture is fantastic, resources are great. people are superb and so my plan is to continue on with the path that harold has set for us and continue to drive performance of this company we're in a great industry, great business and with a great company. >> harold, energy stocks are reallying today. crude oil is rallying today on these headlines that we're getting very close to some sort of deal between the u.s. and china in terms of trade. how meaningful is that both to continental and to u.s. energy >> well, certainly it's, you

know, one of the biggest things that could happen and we need that -- the country needs to happen and, you know, my hat's off to the president for bringing this about. it's something over the last 10, 15 years i've got to be very critical and need to take place. we need usmca voted in and the democrats need to put that on the table and certainly it could happen be very great and meaningful as well >> bill, we're in this period where people are having real tough questions, gut checks about the long-term price of the commodity you got, asset write-downs and chevron handling with the saudis. what do you think the market is missing this terms of how they're framing the future of asset prices. >> well, i think it's all these pieces that you just mentioned

that needed to come together and the correction that recently the saudis made, that's big. they overshot the amount of oil that needs to be on the market they've made that correct. u.s.producers want a great amount of capital discipline we're almost down to 750 active rigs onshore u.s that needs to happen as well you know, operators are not willing their best stuff and their cutback, they realize we have to balance the market for the good of the whole country and the world and so that's under way so those pieces have come together. i think the future looks great you know, main thing, keep our costs low and compete. we're a very stable great company and we're very well positioned to take advantage of higher prices as they come

about. >> so, bill, as we see this right sizing in the u.s. oil patch right now, this idea of improving productivity of wells has taken center stage, the shift to more software, which is something that schlumberger recently outlined as well, how meaningful how much of a game changer is iot and these new technologies to the ability in the u.s. to pull more oil, more natural gas out of the ground more efficiently? >> well, technology is always a big part of our industry always has been and if you look back in the history we've always as an industry been kind of leading the world in application of computing technology and all the technology that comes in, the schlumberger's new technology, we've been applying those. probably the biggest transformational thing that came about was the horizontal drilling and know how to do that and do that well so these tools that the service companies are coming up with are just one of many that we're using day in and day out to drive our cost to the

lowest possible level. >> bill, i've heard of big shoes to fill but this is ridiculous congratulations. >> i agree >> harold, we hope it just gives you more time to come on air and help us understand what's going on good to see you, as always. >> thank you, carl good to be on your segment thank you very much. >> and bill berry. >> up next the year-end surge in corporate dealmaking is there more to go in the pipeline and for early next year robert kindler will join me next i'm happy to give you the tour, i love doing it. hey jay. >> announcer: this segment is sponsored by td ameritrade where investors just get smarter ed met bonds for my income strategy. you're very popular around here. there's a birthday going on. karl! he took care of my 401k rollover. wow, you call a lot. yeah, well it's my money we're talking about here.

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a burst of year-end deals. td ameritrade and charles zawahiri, tiffany and lmvh to name a few $3.8 trillion globally that edge is closer to last year's 4.1 trillion total so can a surge continue into next year? we have the chairman of morgan stanley of m & a rob. interesting. we have a very strong market today. maybe we get a deal that looks like on china. does that help at all as you

look ahead till next year? >> well, if you look at this year, you know, coming up, you're right this year is off a bit not that much actually probably about 15% in volumes and about 50% in deal size but when we were here last year, the market was melting down but it was also very volatile and when markets are incredibly volatile, people just don't want to do deals so it wasn't surprising that after last year which is a record year that the beginning of this year was slow because when you have all the volatility, it's very, very difficult to do deals. >> how much has not just the china trade deal so to speak but sort of broadly that uncertainty that comes along with that, both in the regulatory front too because of the worries about getting the chinese antitrust approval, how much has that sort of held back dealmaking that otherwise would have happened? >> the regulatory front which is a global kind of a global issue, it's been very difficult to get deals done and they're taking very, very long time but now

we're living in a very unusual time from a regulatory perspective and i think some people have it wrong as to how that's going to affect yield doing so to give examples. right now it is more unpredictable than ever what's going to happen on the regulatory side. very, very unpredictable i mean who would have thought that a t-mobile/sprint deal would get approved on the federal side not making a substantive comment but the fact is under the obama administration, there was no way that deal was going to get done so that kind of deal got done on the federal side on the other hand where people i think have it wrong is the thought that we're going to rush to do deals because the next administration if it happens to be democrat is going to be tougher. because, in fact, this administration is incredibly tough. this administration has basically has been very populist so they are anti-big tech. anti-big media so every deal under this administration is getting a lot of scrutiny.

>> yeah, well, does that put big technology in a so-called regulatory box google is buying fitbit. that's a very small deal but is that the most they can hope for when we're talking about some of the giants out there. >> well -- >> if they were to even do something. >> savannah some of the giants have never grown by acquisition. amazon has only done a couple of deals. but it's true that facebook, google, they had a lot of acquisitions, yeah, i think they are on the sideline now and google fitbit, they're taking a look at it even a very, very small deal so, yeah, i think it's going to be very difficult but the biggest issue, regulatory is uncertainty and unpredictability and there's no reason to think that a new administration if it happens to be democrat, obviously the markets aren't acting that way is going to be any different than this administration which actually has been pretty populist. >> ceo confidence is something that we talk about all the time being so important in terms of dealmaking this feels like it's been a

decent year if you were a global company. you certainly are concerned about china trade and what that means. what's your sense, though, in the boardroom of the willingness to take the risk to do a deal? >> well, i think ceos, i don't know if for the first time but more than ever are worried about not doing deals. it's become more of an imperative to do deals than ever before and here's the reason you know, it's not just that you can't get growth organically it's also that they push the end of the envelope on margin improvements and taken costs out, but the biggest factor is that shareholders now, institutional shareholders they're not looking for buybacks and return of capital. they're looking for des that bring growth. >> you really believe that. >> i totally believe that. i'm with ceos every day. they're saying i really need to do a deal so that i can get more growth in my business and i'm -- >> that's always been the reason it doesn't mean they do it. >> in the past, in the past.

they're hearing you got to return capital you're underlevered. you got to return capital. now it's, you know what, returning capital is fine if you actually have excess capital but we really rather you find something -- >> that's ha they're hear interesting their typical shareholders not necessarily an activist or fear of an activist. >> it's really driven by shareholders saying, you can do more investing the money in capex and acquisitions than just returning capital and returning capital is just isn't the strategy did that would seem to auger for a decent year next year if certain uncertainties at least remain the same or get better. >> look, i think on deal volume, it's probably going to be about the same or maybe a little bit down this year because we had some very large deal, pharma, very large spin-offs but in number of deals, yeah, i think it's going to be a good year it's not going to be like last year was which was a blow-out. >> right, 18, right.

we're almost done with this year how about valuation, though. you know, many people say they are high rates continue to be low companies as you point out, if they're underlevered are being encouraged to perhaps lever up to a more appropriate level. does it mean more cash deals or do we see stock deals? >> there's going to be with strategics, if they have very highly trained in stock they'll use that as a currency you know, the fact that interest rates are low, that's interesting but you do have have to pay the money back if you do a cash deal so that does create a rick p/e will be a bit away p/e is going to be the floor bid on deals >> yeah. >> if p/e is still in there and the reason is they're looking for lower returns and also you can still get that six or seven times leverage if you can get six or seven times leverage and you're not not looking for 20% returns, even at these values you can make money you can make money. >> pencil it out as an irr

are the credit markets cooperating? >> wide open high yield markets wide open investment grade is wide open but we've had plenty of capital available for years. that's nothing new what i actually think is new is that there's even more of a push to get growth. even more than there's been in the past and particularly coming off of a fairly good year of valuation, people are going to say, well, what's going to drive it next year it's not going to be organic growth it's not going to be margins so, yeah, i think it's going to be a busy year. a number of deal, not necessarily a lot of large deal. >> how is comp going to look when you sit down and figure it out for all those people >> the good thing is i actually never think about comp and that's actually true the -- it will be what it will be and -- >> that's not the answer it will be what it will be is it going to be up from last year, down. >> i have absolutely no idea. >> come on. >> that is above my pay grade to think about.

>> you're the global head of m & a. what do you mean >> maybe it's no longer above my pay grade. no, look, i have no idea when it's going to come out but i don't think anyone should have any sympathy for bankers. >> don't worry nobody does. not a whit won't even comment how gorman going to treat you. >> we get along very well. >> thank you, as always. happy holidays to come and we'll see you soon next year see if your predicts are right rob kindler from morgan stanley. the president saying the china deal is very close just what is the toll of the ongoing trade war on business? we'll get some details from cnbc's new survey. record highs across the board, dow up almost 300. best day for the s&p since october 11th donald trump failed as a businessman.

he borrowed billions and left a trail of bankruptcy and broken promises. he hasn't changed. i started a tiny investment business, and over 27 years, grew it successfully to 36 billion dollars. i'm tom steyer and i approve this message. i'm running for president because unlike other candidates, i can go head to head with donald trump on the economy, and expose him fo what he is: a fraud and a failure.

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that will generate value for our investors. that's why i go beyond the numbers. time for our etf spotlight taking a look at the semiconductor etf. this morning after closing its

best daily performance in a month, the group is on pace for seven positive weeks out of eight. also take a look at the stocks, micron, marvel, amd among the top performers in the sector some of the guidance from some of the smaller companies positive as well, what a day for the chips. >> what a day for the chips. up until recently the numbers haven't been the greatest. issues with inventory levels and everything else. pretty incredible. all right. the ongoing trade war proving to be a drag for businesses we have the latest from our counsel survey rahel. >> yeah. hi our latest cnbc global cfo council survey shows the trade war and global economy are still the biggest external concerns for financial executives around the world. so we survey the chief financial officers of major public and private companies about the challenges that they face and we

learn that by a third of global ceos stated that u.s. trade policy was their biggest concern. that was followed by consumer demand the trade war was an even bigger concern for finance chiefs in europe and asia and in fact half of the asia pacific chiefs we surveyed said the trade war now 17 months in an u.s. trade policy both were their biggest concerns and it's a very different story, though, when we hone in on north american cfos. their biggest concern is consumer demand. that said, the latest data shows consumer sentiment remains strong after a dip earlier this year the second most important external risk for north american cfos was over regulation that was followed by u.s. trade policy and cybersecurity now while many cfos around the world are still clearly concerned about the trade war a chopping 71% do not expect the u.s. to experience a recession in 2020 so still quite a bit of concern about the global economy but the chiefs that we spoke to appear to be still bullish on

the state of the u.s. economy. morgan, i'll send it back to you. >> some important insight, rahel, thavenlg you. coming up, president trump's approach to china trade. is it on the right track or according to one economy failing? got a debate on that straight ahead. as we head to break a look at the top performing stocks in the s&p as it hits a fresh record high today where "squawk on the street" after this break

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good morning, everyone i'm sue he rear r north korea accusing the u.s. of hostile provocation for criticizing its ballistic missile tests. it warned that the trump administration may have blown its chance to salvage nuclear negotiations president trump lashing out at 16-year-old climate activist

greta thunberg calling her selection as "time's" person of the year, quote, ridiculous n a tweet this morning he said greta must work on her anger management problem then go to a good old-fashioned movie with a friend and then she changed her twitter profile by saying she is currently chilling out the exchange comes on the fourth anniversary of the paris climate accord which the administration withdrew from. the los angeles angels have signed free agent third baseman anthony rendon to a seven-year, $245 million contract. rendon helped washington wing its first world series this past fall he is the third client of scott bora's to sign a monster deal in the last three days following stev stephen strasburg and gerrit cole. a shoe designed for medical professionals always on their feet the new air zoom plus will be available for purchase on december 14th. it comes in six different

patterns and it costs $120 you are up to date that's the news update this hour i will send it back downtown to you, morgan. >> they're certainly colorful. very sharp sue, thank you stocks hitting record highs. president trump tweeting that the u.s. is, quote, very close to a trade deal with china the white house reportedly planning to push back sunday's scheduled tariffs. meantime, in a new op-ed joe scarborough's former chief economist jerald bernstein saying they should campaign against his trade war. he joins us now. good morning i'll tart with you here's a headline of your op-ed. trump's china trade war is failing. democrats should campaign against it as we talk about the possibility for a deal today, how are you judging success? why do you think this is failing? >> well, first of all i'm very skeptical about any deal talk. we've heard that a lot and to me it just looks like a way that trump plays yo-yo with financial

markets. so in terms of trade war failing that's actually not a very controversial statement. at least if you look at the pretty careful research that's been done thus far there's lots of evidence that the trade war has been harmful to exports and imports that it's hurt growth and if you look at our manufacturing sector, by numerous metrics, that part of the economy is actually doing quite badly and even almost flirting with recession. i really think that trump has seriously dinged the manufacturing sector i was just looking at these numbers yesterday. if you look at the weekly earnings of blue collar workers in manufacturing they're going down in real terms and that is completely inconsistent with the rest of the economy and i largely blame the trade war. >> jim, i want to get your response to those comments from jared, especially if we do get some sort of actual meaningful, significant trade deal >> all right let's be clear

jared's actual concern is that the trade war will work and work in this way, that it will increase economic int interdependence between the u.s. and china through them buying more of our stuff and it will result in china being in a better investment climate for u.s. business because of greater ip protection and greater limits on this kind of forced tech transfer stuff that's what jared doesn't want he doesn't want more u.s. investment in china and in that way he's every bit as protectionist as trump says he is he wants more manufacturing in the united states so if a trade deal leads to that outcome jared doesn't like it. >> wow, that is like so con very lawsuited i really didn't understand what you were talking about. >> you want less investment in china. >> i'm the protectionist here? >> yeah, you want less investment in china. >> clearly the protectionist is trump and his team i mean that's gun i don't think that's at all debatable but let me ask you this, i've read some of your writings

i thought you were very critical of the trade war and in fact, i think at the core of my argument is not raising trade barrier, that's what trump does somehow you've managed to flip that on its head i want to bring down the tariff barriers that this administration has implemented not just on china but on many of our allies and for no clear rationization. do you think canada is a security threat? >> no. we're not talking about canada but i do think china is and my concern is that when you look at china, what you see is sort of a bigger japan from the 1980s. and while that might be true as far as being an economic competitor, they're also a national security competitor and i didn't see anything in your op-ed that seems to acknowledge that that should be a concern or that should factor into any of our decision-making. >> okay, so i don't see any -- >> jared. >> sure. >> let me get in with a question here to just follow up >> okay.

>> i mean, the trump administration rightly so to a large extent would say, listen, china hasn't been playing fair for 20 years and since they joined the wto and both democratic and republican administrations have sat by while they have pursued their economic ambition, creating enormous -- at the expense of the u.s. because they don't play fair i would assume you agree with that what is the way then to get them to do what they should do and to be in a reciprocal arrangement with them that makes sense for both countries >> first of all, good question and i was very clear in my piece that i opposed cybertheft and thought we should aggressively push back against that also by the way, i was, you know, really making the point that it's the human rights abuses in china that think we should absolutely significantly ramp up our opposition to. in terms of trade, though, i don't see how the tariffs or the trade war are addressing any of

the problems that you and jimmy made yeah, sure, we should go after huawei in terms of a security threat but that's not -- that's not tariffs on $360 billion of chinese goods. what i suggest in my piece is to go hard against currency manipulation china's not doing that right now. that doesn't mean they won't do it in the past it's to go hard against cybertheft and human right as becauses and it's to beat china at their own game. forget trying to get them to stop investing in publicly sponsored enterprises. that's their model we need to do the same kinds of forward looking investment so that we can look around the next corner and grab global market share in green technology and batteries and in the kinds of investments that will give us an edge >> so let's be clear what jared is saying is sort of let china be china and maybe even we should adopt sort of chinese state capitalism but with american characteristics.

let them do their industrial policy we'll do our industrial policy and we'll see who wins i don't want to do that. i want to take affirmative measures i don't want these big broad tariffs. but if companies, chinese companies are cheating and using our stolen technology, i think they should be penalized but not be able to participate in american markets >> hold on >> -- industrial policy in the united states. >> so we're at a somewhat similar page there except there's absolutely no way we will stop china from doing industrial policy and it is a fool's mission to think that we can. it's just not going to happen. but, yes, if an individual firm, if an individual firm is stealing, you know, technology from us or anyone else, of course, we should go against that that is my article invade against the sweeping tariff agenda and i kind of am surprised everybody seems to be defending that i think it's extremely disruptive to the economy. >> i'm not -- listen, i'm not --

okay, go ahead. >> no, just it's either one of you. jared, how do you get the chinese to the negotiating table if not using the leverage of tariffs which does seem to potentially at least and we'll see to your point, i understand, we've seen announcements in the past that were very close, we'll see if we get there but i don't quite understand under your plan how you'll get the chinese to change their behavior? >> well, first of all, i don't think the negotiating table, the kind of negotiations that we're undergoing now will result in any sort of lasting significant changing in chinese behavior so i think that what we have to do is hold hands with our allies instead of alienating them and launch a massive campaign against chinese human rights violations, prosecute cybertheft and hit back hard when they manage their currency. that's my agenda it's something we really haven't done much of and at the same time look inward and try to capture market share in areas where we're not even in the game i mean in my article i

highlighted an eu/swedish effort to build a big global supply chain in battery technology. we're not even in that game and we should get in it. >> jared, would you like china to be a more business friendly environment for the united states, for united states companies? >> sure. >> so there's more investment. >> well, i mean i guess -- what i would like china -- that's an abstract -- what i would like china to do is to certainly not steal stuff and to not manage its currency and to not imprison million of uighurs after that it's up to us to pursue international competition in not by building walls and tariffs and barriers, but by investing and capturing market share in the next new technologies >> jimmy, it seems to me that the way this administration is seeing it is as a win/win regardless because if you're talking about how hard it's

going to be to get china to actually change some of its ways, to change some of its policies, that's why the enforcement mechanism has been such a key sticking point but if you can do it it absolutely levels the playing field and creates a whole new global marketplace essentially in terms of those flows for trade on the flip site if you can't get china to do it and have tariffs in place you continue to incentivize companies to move their supply chains, to move their business out of that country and even if it doesn't come back to the u.s. at least goes to other countries that are allies of the u.s. >> yeah, listen, listen, to be clear the idea of big, broad tariffs, that don't sort of discriminate whether a company, chinese company is obeying the rules or not obeying the rules, i think that's a bad idea. but i don't think you'll get any change in chinese behavior just by, you know, filing a congressional motion against human right as becauses. ultimately will there be any pain in this sort of, you know, conflict for u.s. consumers?

if there isn't or for u.s. companies then i don't think anything changes final thing, i do think we need to focus more on what we're doing to boost u.s. competitiveness ultimately than anything we do over there. in the end i agree with jared. far more important what we do over here even though what i'd like to do over here is different than what he'd like to do. >> from my perspective the trade war is demonably -- demonstrably hurting trade and how it's helping america be more competitive and somehow, you know, improving our competitiveness in the global marketplace is completely belied by any indicator you can think of maybe there is some long-term end game i don't see here but, you know, the trade war looks like a big failure from my perspective. >> yeah, i do think the national security piece of this is a longer term piece. we're going to leave it there,

guys the great debate we appreciate thoughts from both jared and jim, thank you. >> you bet >> thank you when we come back meet the ceo of a company that was acquired by wework last year and quk t sght it back. "sawonhetreet" is back in a moment. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. - when i see obstacles, i create opportunities. (soft music) - when i see adversity, i find a way. - when i hear never, i say now. - [announcer] southern new hampshire university is education made to fit your goals

with over 200 degree programs, flexible class schedules, and some of the lowest online tuition rates in the nation. (cheering) - so when i face barriers, i can break through. - [announcer] breakthrough at snhu.edu. when i lost my sight, my biggest fear was losing my independence. mmm... good. so i've spent my life developing technology to help the visually impaired. we are so good. we built a guide that uses ibm watson... to help the blind. it is already working in cities like tokyo. my dream is to help millions more people like me. will this be recertified in 2019 >> there are a number of milestones that have to be completed. if you just do the math it's going to extend into 2020 i made

it very clear that boeing's plan is not the faa's plan. we're certainly working closely together but we're going to keep our heads down and support the team and get it done right. >> this was an astounding interview. anything you heard that was bullish is not occured? >> double digit gains for the s&p 500 next year? one of wall street's top bulls just raised his forecast find out more on trading nation but cnbcom.c more "squawk on the street" is coming up.

wework continuing to cut cost foss revamp main businesses among the changes selling off companies it acquired recently parting ways with conductor which it bought in early '18 for roughly 126 million in stock and cash joining us is conductor's founder and ceo, with we should note was a college friend of adam neumann great to have you.

>> thank you so much for including me. >> walk us through what happened in '18 what life has been like since then until today >> amazing story thanks for having us here. wework was one of our largest.com cust customers at conductor. we help find them around the world. any time anyone is looking for office space or real estate-related products they would find wework. our biggest customer and thought if they brought conductor in-house they could do a better job. we joined wework and had an amazing run. it's been pretty incredible 20 months and we're excited here today to talk about how we're taking the company out of wework. >> was the idea to buy back your owners there. >> we've -- we work collaboratively in the process and had this idea we've been talking about potentially taking the company out at some point and the -- and it was really collaborative. >> the fact you had this plan to

take the company out at some point, there had been a lot of speculation when you join the wework that maybe there weren't that many synergies between the two companies that whether the collaboration, whether the crossover actually made sense. so what came first the implosion we saw around wework trying to go implosion a trying to go public or you deciding it wasn't a good fit. >> there was a lot of value in combination of the two companies. wework needed a lot of help doing marketing, there was a potential big opportunity we were exploring for us, it was the right time in the ten year history to take on something, very happy we did that over time as they became a better consumer and we did more, it became clear that wework was focusing on core business, bringing conductor to the customers was an option that we were thinking in the last few months, it accelerated and we can get what's best for conductor and they can focus on their main product

>> you got bought out of 126 million a couple years ago guess we don't know what you're paying or are you paying less than they bought you for >> the deal is undisclosed on the price, i can talk about ownership structure. all of the employees will have the majority of the business, created a new ownership structure, everybody today, announced all of the people will be co-founders >> all 250 people? >> that's right. we worked out cool things that we wanted to do, i wanted to do in my business career, create a new way of thinking about stock treatment that's good for employees and other shareholders. >> does that mean longer term you plan to stay private >> our plans are to get the business independent, continue to accelerate our growth, and get a lot bigger we have 400 customers. there are thousands of companies that need the products and services we offer, a lot of runway ahead. >> did you remain close to newman out of school, as he was

building we? >> adam and i had a few classes together in college. hadn't seen him in over a decade, randomly ran into him in the lobby of our building. adam came to the office, love the environment, whose the person that knows about marketing. introduced him to a guy in the office, three months later they became a customer. >> did you have any suspicions about the complexity of the model or his management style? >> we had been a consumer of wework two years prior than that i was scared to bring employees in other offices, all the people in wework and other locations it loved it i think we'll be wework customers, it is an amazing project. >> google is under antitrust scrutiny, some companies saying they're impacted the way they do seo. how would you characterize the

health of the industry, is there room for competition >> a big change with privacy and personal information consumers don't want to be hit with ads and marketing in the traditional sense, two don't want personal information used in marketing we don't use private, personal first party information. we help businesses understand what people are searching for, so they can create content, when people search in google, ask alexa, go on pinterest, can find the company and give them the answers. can the trillion plus spent on marketing be used on something valuable instead of being hit with more and more advertising. >> a lot of players in competition in that space. stay close as you embark on the new independent life. >> thanks for the opportunity. thanks for having me. send it over to jon fortt for a look at what's coming up on "squawk alley." jon? >> david, we're watching the coming ipo of build.com, closely

linked to intuit and small business arena, around quite awhile pretty promising we'll see where it opens coming up on "squawk alley. is the monolithic view of emerging markets obsolete?

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♪ ♪ good thursday morning. welcome to "squawk alley." i am carly fiorina with morgan brennan and jon fortt. it is risk on on the heels of the presidential tweet a rally as president trump says that they're getting close to a big deal with china they wanted and so do we that trade optimism is all over the place. bob pisani has more. >> how much is is the trade deal worth, about 4