china, 11:00 a.m. on wall street "squawk alley" is live ♪ ♪ good friday morning. welcome to "squawk alley." i am jon fortt with me at post nine, courtney reagan, david faber. carl and morgan have the morning off. we begin with the latest on trade talks with china let's get straight down to kayla tausche with the latest. >> the u.s. and chinaannounced a phase one trade deal that washington hails as historic,

enforceable, beijing says will bring certainty back to global markets. under this phase one deal in principle, china will buy more u.s. agricultural goods and manufactured goods and energy products and the u.s. will be modifying its tariff schedule. here's what we know what will happen to tariffs after seeing a statement from the u.s. trade representative and series of tweets from president trump. you will see $250 billion in chinese goods keep a 25% tariff for the foreseeable future for about $120 billion in goods that saw a 15% tariff beginning in september that will be cut in half by 7.5% chinese officials in a press briefing earlier said the u.s. agreed to roll back some of the tariffs on a schedule that had been negotiated. we don't know exactly what the schedule will be or how it will play out the chinese officials saying there will be much to work out after two sides end up signing this deal.

the deal by the way is still subject to legal review and translation. in the past, we have seen room for error between announcement and any potential signing of a deal it is notable the chinese side did roll this out as a deal. that had been reached with the u.s. side. that was further than they were willing to go in the past. we await more details on the number of goods they're purchasing and exactly what the tariff removal schedule is, we'll bring you those details as we have them >> kayla, we know more than we did when i sat down at 9:00 a.m. eastern time about what's going on, but we still don't know what the commitments are from the chinese in terms of how much they're actually going to buy. is there a willingness on the part of u.s. to allow it to be open ended or are you expecting we are going to hear more details? >> one of the frustrations with the u.s. negotiating team, i heard from sonny perdue, china buys them on an ad hoc basis

want a firm commitment to dollar figure within a specified time frame. china as recently as this morning said these purchases will be made on a market basis and that china will be increasing its imports of goods from all countries, not just from the u.s seems to be a little on that front, david, lost in translation. it is unclear whether or not the two sides agreed to let china announce it that way, but behind closed doors made a commitment to a number. >> kayla, thank you very much for keeping us up to date on the moving parts joining us to discuss the market impact, mike santoli, bob mi pisani we were hitting fresh record highs for the major averages, that's gone. what happened? >> the headline is new tariffs are delayed, some existing tariffs reduced, that's the headline, a positive why we didn't rally, the market has been anticipating this for weeks. we had a tremendous move up in

the month of december in anticipation of exactly this now maybe if there was a little more reduction on tariffs, existing tariffs, including 25% part that kayla put up, that list there, you might have gotten better reaction this is in line with what the market was anticipating. it is a phase one light. i read mr. lighthizer's statement, there's no real specific numbers on any of the purchases, what's going to be purchased. kayla reflected that uncertainty overall. seems like parts of it are still being negotiated the thing that matters on tariffs, markets already had that priced in. >> shares of caterpillar higher by more than 1%, now down a half percent. that's a trade sensitive stock >> there was the anticipation, there's not necessarily a sense here that tomorrow a cap ex boom starts and china has pent up demand for machinery there's a reality check what it means. what it means market wise, one

more kind of thing we were afraid of that could have a bad result has been removed. one of the things have been removed. we had a recession scare, doesn't seem in the cards soon, that was a few months ago. market up 10% since early october. we kind of plowed through things by the way, yesterday the fed says we're going to do everything possible to make sure there's a lot of liquidity that was starting to grow as a back of the mind concern for year end on a mechanical basis for the markets. all of these things were taken care of. guess what, even a federal budget deal, not having a government shutdown. seems like things are falling in place, more or less confirming what the market is -- >> i want to go back to what you said about being anticipated given the labor party loss, boris johnson's win, the extent of that may not have been as anticipated, it just seems to me like maybe the market doesn't

feel like this is that much more stable sure, things aren't getting worse but does this feel so certain given details we still don't have >> we know there's no new tariffs. some of the existing ones are getting rolled back. that's the important thing look at the list of things the market worries about the fed is neutral, pumping a lot of money in the system don't call it qe, whatever they're on the market side brexit, a labor defeat whether you want brexit or not, labor defeat is a big thing. banks are up, utilities are off, things they worry that would be overregulated for labor, that's a plus for the market. the trade deal, that headline announcement is a big deal we're missing a clear global growth bottom. if we get that, that's why we parse every bit of global manufacturing data, you can get that, bulls will argue for multiple expansion, we can

handle 18 times forward earnings we're at 18 now forward earnings on 2020, and that's sort of the crux of it mike is right, you start taking stuff away, worries away, the bulls will argue the market can handle higher prices. >> that said, even though we don't have confirmation, global markets are outperforming. how they were during the trade war, u.s. vastly outproduced, now if in fact with the dollar off highs, fed neutral or on hold indefinitely and a trade deal that hurt the rest of the world more than the u.s., it makes sense the rest of the world is rallying. >> look at the emerging market etf. a terrific performer europe, bgk, van guard european. that's been rallying as well the global growth story is a critical part. venture em, we have a new high

there's van guard europe new high >> 52 week >> a long way from historic high >> where did anybody else we were listening in to china for the credible confirmation that something happened here, seems strange to me. >> weird all around. >> is that the new normal? there's a bunch of tweets, don't know what to believe, china is is the one that comes out? >> by the way, exactly there have been stories on both sides clearly coming from both sides. also had a story running that clearly seemed to come from the chinese side that the united states was willing to make brater commitments rolling back tariffs. that's why you have a push, pull of story lines. >> point well taken, think how trade deals were announced ten years ago, look what happened here you essentially acted out every day, acted out via tweet you have the other side making comments, and then the unusual situation china announces a

press conference to announce their interpretation of it before everything else it has elements of a reality show, elements of a game show. throw in social media, your point is well taken, jon that's where you're going. this is a new reality, a strange situation to report on it live we want to watch you all morning, this guy here, he should get a medal the way you navigated this morning was tremendous >> last two years it was difficult. we can now say it is a significant day in the relationship between china and the u.s. and evolving talks. >> whether it is different from what was on the table in may is unclear now. >> then everybody says what did we get, where are we beginning of the statement from ustr it requires structural changes, intellectual property, technology transfer, financial service

services, currency, foreign exchange those are a big deal the president has been focused on dollars and cents, what we send there, what they send here, most of the other china hawks are focused on that. >> that's the crux of the issue. >> state sponsored enterprises >> they do speak specifically about establishing a strong dispute resolution system that ensures prompt and effective implementation and enforcement that's a very important part of this then people will say we're getting more foreign purchases, where were we a couple years ago. we have tariffs still. has it all been worth it >> you can kind of understand the reluctance to commit to a dollar figure. you don't need that many more soybeans when it is lower. >> there are other alternatives out there as well. >> this is phase one

the president says we will begin phase one immediately rather than waiting until after the 2020 election when there's uncertainty about timing of all of this. maybe that's when we'll get more on intellectual property who knows. a lot still up in the air. >> initial headlines are a positive we shouldn't get too cynical new tariffs delayed, existing tariffs reduced. >> you're down 7.5 on 120 billion in goods, that goes to reporting from this morning with jim, he said it isn't the 360 billion. it was 250 billion remains at 25% >> glad we cleared that up >> everything is crystal clear mike, bob, thank you when we come back, amazon closing in on a milestone. soon will ship more of its own packages in the u.s. than anybody else does, according to a report from morgan stanley we speak with the analyst behind

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welcome back morgan stanley estimates amazon delivers close to half its packages in the u.s., cutting into profits of other shipping companies like ups they're delivering 2.5 billion packages in a year joining us, morgan stanley

analyst. robbie, good morning >> good morning. >> you think amazon won't just be delivering its own packages or third party sellers within amazon but packages at large it will be a full fledged logistics company? >> yes based on the current pace of growth of amazon's internal logistics arm and additional capacity they plan to add on, we believe amazon logistics itself will move more packages than all of fedex next year, all of ups by 2022. around that time frame believe they have enough spare capacity to move 35% of all nonamazon packages in addition to 65% of all amazon packages.

we believe starting soon in the next couple years, amazon logistics will be a third party competitor to ups. >> why would amazon want to do that so much of what they seem to want to do is focus on their ecosystem, prime, keeping that flywheel going if they split out, start delivering things that have nothing to do with amazon itself, what's the advantage >> i agree with you. i think the reason amazon is doing this is to keep the flywheel going, to help them become the best retailer in the world. it just so happens one of the ways they achieve that goal is having the best and biggest logistics network. one of the ways they enable that is by moving third party boxes that helps to lure their own package costs for all of the packages they move it is a model not dissimilar to what they're doing with aws.

>> does this make amazon more powerful and potentially a bigger target if looking at answer trust if they become the largest shipper in addition to their retail operations and cloud business with aws? >> keep in mind, even though amazon is a large portion of e-commerce, over 50% of e-commerce volumes by 2022, they're still pretty small as part of the overall number of packages shipped in the u.s. today. they will become bigger over time they're a relatively small part of retail. i don't know if and when we go there, but what we do have clarity on is what the next few years looks like from a competitive standpoint >> does this change the math for investors on shipping costs? we see it turn up in earnings reports. it is a minus, a drag, they're

investing in this, and it effects profitability. if they scale the way you say they will, is that more profitable growth, more profitable business than they're trying to subsidize within amazon >> one thing that's clear to us is that the end consumer, you and me never want to pay for shipping again, given free shipping is branded in everybody's brain at this point. right now, intermediary retailer subsidizing you and me, and to the extent shipping costs go down because you have more entities entering the space, more entities being competitive in the space, that would save more costs for the shippers. as you move from one delivery, i think over time retailers will look to reduce shipping cost

again because we -- >> do you think amazon at one point will open the network to others aws obviously famously started as an internal effort. didn't have third party sellers on the platform, it was all amazon sourced is it possible this will be another huge business for them, not just shipping amazon packages >> yes >> amazon logistics is adding the number of packages amazon ships. we think they'll have the ability and willingness to start moving third party packages in the next couple years. >> all right robbie, thanks for being with us have a great weekend >> thank you as we head to break, take a look at the markets. we're actually down on the s&p 500. despite that today is a historic day, phase one announcement of a

trade deal wh itchina. more "squawk alley" when we return donald trump failed as a businessman.

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european markets are closing. boris johnson with a solid win yesterday. juliana tattle balm has the latest >> reporter: hello this is a huge day in the uk a landslide victory for boris johnson and the conservative party, at the same time a seismic defeat for the opposition labor party where the leader said he will step down as leader of the party, although timing of the move remains unclear. it is important, boris johnson ran on a campaign with one promise, to get brexit done. now with the solid majority, he has significantly increased chances of doing that. earlier today, prime minister

johnson addressed the nation from 10 downing street listen to what he had to say >> i say thank you for the trust you have placed in us and in me. >> reporter: that was prime minister boris johnson speaking earlier today, thanking voters for putting trust in prime minister johnson somewhat of a nod to voters that previously voted for the labor party but had switched this time around to vote for the conservatives. the brexit issue clearly one of the central issues within this campaign looking ahead to brexit, january 31st is the deadline we're looking at with a solid majority, boris johnson should havea better chance of getting that deal across the line. still uncertainty with trade deals the uk has to iron out between not only themselves and the eu and also the u.s. and president trump weighed in,

congratulating boris johnson, dangling the prospect of a massive trade deal in terms of reaction, u.s. investors are reacting well to the news, saw a bounce of 2.5% against the dollar for sterling. it has paired back some gains, is trading firmly. on the stock side, saw strong demand for uk domestic assets, home builders and banks, stocks that had been suppressed by uncertainty surrounding brexit one thing is clear, the uncertainty has been lifted to a large degree as a result of this historic election. >> some of the european banks up as much as 11% on the back of this the pound at 1.33 against the dollar when it comes to the process, you mention that the january date but what happens next? help us understand >> reporter: january 31st is the

date by which the uk must leave european union as it stands. this is a date that was previously agreed between european leaders and the uk. once that happens if boris johnson can secure orderly brexit on january 31st date, we enter a transition period where the eu and uk try to negotiate a trade deal this is the real bread and butter of what brexit means. what will brexit look like thus far, trouble is agreeing what the initial agreement would look like, withdrawal agreement. a lot of the future relationship between the uk and eu will be determined later in the year that could prove to be a much more difficult process one thing to bear in mind as a result of the election, the cliff party has a very strong majority, so it will be easy for boris johnson to make decisions when it comes to how the uk stands with regard to the

negotiation. >> thank you very much it has been a long day, a lot of moving parts for you as well let's get to sue herera and get a news update. a long morning for us, too, sue. >> it has, david, thank you so much here's what's happening at this hour, everyone the house judiciary committee recommending president trump be impeached for abuse of power, obstructing congressional probe into his alleged attempts to force ukraine to investigate a political rival. the vote went on party lines it sets the stage for a vote by the full house next week. in malaysia, president obama says the paris agreement on climate change may fall short of expectations but it is still the way forward to raise global standards and make businesses invest in clean energy >> i am still optimistic that we can slow the advancement of a

warming planet it is too late for us not to have some impacts. >> ford says it will recall nearly 550,000 super duty pickup trucks in the u.s., canada, and mexico, citing risk of post crash interior fire. the recall covers certain models between the years 2017 and 2019 and those models have carpet flooring check the website for more details. that's the news update back downtown to you guys. >> thank you, sue. still to come. super agent scott boras joins us after finishing a billion onllars of deals just this month ale. more "squawk alley" when we come back don't go away. as a reliable phone company. but to businesses, we're a reliable partner. we keep companies ready for what's next. (man) we weave security into their business. (second man) virtualize their operations. (woman) and build ai customer experiences.

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more twists and turns than an iphone presale line we have confirmation that the 15% tariffs have been deferred apple shares jumping to all-time highs ahead of that news web bush analyst dan ives says now is is the time to buy apple stock. he joins us with gene munster. good morning, guys >> good morning. >> good morning. >> you say apple marches to 300 a share, 10% higher, maybe 350 on 5g iphone

what's the down side, the worst case scenario to keep that from happening? >> i think worst case scenario got taken off the table in terms of tariffs that was the dark cloud over apple in terms of china. right now, you go through, with the super cycle, the only risk we see is chinese demand we did the china checks, that continues to be above expectation. i view it as a stock with a 3 in front of it going into next year this took away the dark cloud we saw this morning that's the focus for tech investors, apple, and semis going higher. >> dan, what do you say? where's the up side, can up side in wear abls and services that don't contribute much to profits and revenues help sentiment? >> iphone, rock of gibraltar, i

think 185, 190 million units in a super cycle next year. look at air pods, 4 or 5% of revenue, predicting 85 to 90 million units next year with services rerating is starting, continuing to happen. some of the parts, i agree with the service business is worth 600 billion. >> gene, seems to me you didn't think these tariffs were ever going to impact apple because of perhaps the relationship between the president and tim cook, but shares are higher for apple, albeit slightly, four-tenths of a percent. where do they go from here >> i'm more optimistic than dan. he is more optimistic than most of the sell side i want to pick up, i love dan's work, want to pick up on the concept of super cycle which undoubtedly will be a theme we'll hear going into 5g first year of 5g for iphone will

be a disappointment for investors. i think ultimately this is a massive opportunity for apple, huge play on 5g. but it will take time for the networks to roll out coverage. i want to go back to the phrase super cycle. that to me is the core of how most investors still think largely about the apple story is this you own it going into big cycles i think that's in part what's moving the stock higher. to answer your question, where i think this can go, i think it can be a 350, $400 stock i base that on belief that we're going to gravitate the next two years to a view it is more of a consumer tech staples company, growing faster than coca-cola, proctor gamble, should deliver 25 to 30 times i understand that's departure from the super cycle view over the last decade in covering apple, but i think ultimately wearable services, this symphony of products working together

will influence investors to rate this higher over time. >> gene, if the 5g iphone super cycle is a disappointment, arguably the 5g roll out in the u.s. will be a disappointment, right? that's the main device a lot of people are expecting will sell the network. do you think apple won't have the software and services ready in 2020 to entice people to buy a phone like that, that that's a 2021 story >> i need to be clear because the word disappointment is an important word i chose that wisely. ultimately the stock will move higher next year this will be one of the best performers, if not the top tech performer next year as well. i want to be clear i think the hype for 5g will grow i also want to answer that this is not an apple related problem. disappointment is largely on the carriers that talked a lot about the 75% coverage by end of next

year i think that's optimistic at the best case. so as i fast forward, there will be five iphones next year, stock moves higher, investors should have silver view how calendar 2021, that first year of 5g sales. good news, it will happen. we will get an incredible lift in iphone. reluctant to use super cycle, but we will get a massive lift the next few years investors need to be patient in the first year, coverage won't be there >> dan, is that your view or how are you with the idea of the first 5g iphone having a super cycle? >> gene brings up great points i think it comes down to the math doesn't lie 900 million iphones worldwide, 350 to 400 million of those in upgrade cycle the next 12 to 18 months do the math on that, attach

services and ipods, i think this is a stock that continues to move higher. do you get disappointed on a mix of 5 and 4g? i think it is possible, but ultimately china check showed initial reads of units north of 200 million, that's the line in the sand if that holds true, this is a stock that goes higher from here, especially with the gut punch, 160 billion now off the table. that's the key >> gene, of course we sit here 12 days to christmas, i have seen early search data apple air pods are a key product and many consumers are searching for them what could that mean for the quarter for apple? >> i mean, this story, you talk about services, wearables, often times gloss over it. this is worthy n enumerating, w think apple goes much higher over time. air pods specifically. lots of availability of

generation 2 before the air pods pro. we have been tracking this two days ago, 80% of stores in the u.s. had availability, showing delivery times end of december as of yesterday, there are no availability, none that we found. we checked 120 stores in the u.s. no availability of air pods pro. delivery times are middle of january. the point is, you can debate whether this is a manufacturing or demand problem, in the past you could debate that. there's no debate here the product, hearables, concept of an advanced hearing device, this is the tiger by the tail. they'll grow at 100% this year you combine that with the watch and wearables, this will exceed the mac business 11% of sales growing. this is incredible don't break the numbers out, you can go through, slice and dice they grew wearables last year at 65%.

accelerated in growth in each of the past four quarters i think evidence of what it means to have this rock of -- that the product can build others >> others said apple can't innovate, why don't they make an amazon echo, don't know how many of them are selling or if there's any profit gene, dan, hope to see you soon. >> thanks. >> thank you. as we go to break, check out shares of oracle under pressure after posting better than expected quarterly profit, but revenue, current quarter guidance coming in below some analysts and overall consensus. let's check with rick santelli what are you watching today, rick >> how will trading trade effect the markets. will phase one phase martske we'll talk about all of that after the break. [grunting]

[maniacal laughter]

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when it works for you, or, you can wait, and pay it off in one lump sum when you leave your home. discover the option that's best for you. call today and find out more. i'm proud to be a part of aag, i trust em, i think you can too. welcome back to "squawk alley. let's get to the cme and rick santelli he has the santelli exchange >> good morning. thank you. it is never easy to trade big stories, especially big stories that are going on two years with respect to cross information just look at today "the wall street journal," it doesn't appear they had the facts right with regard to how much tariffs already implemented will remain, but i understand

it that's the way it has been it has been a tug of war, not only trying to get on the right page, but finding anybody other than the main two players that could ever really understand what page anything was on. but it certainly seems as though phase one is about ready to be wrapped up officially. it isn't really official yet we're awaiting some details. let's consider buy rumor, sell fact traders have been debating that. i had vincent reinhart on, i asked him a simple question that would warrant a complicated answer how much of this is priced into the market, meaning the deal gets signed, most of the details we think are in it are in it he didn't think any was. and actually i think that's a good answer. how many times have you heard viewers, listeners on the radio, uncertainty, uncertainty, markets hate uncertainty well, vincent framed it this

way. we are positive in trade on stocks, watching yields move up because we are pricing out uncertainty. it is not buy rumor sell fact, if there is a growth spurt that occurs because we get kinks out of global trade, protections for certain aspects of it, that that is a looming positive for markets. then it becomes if we go with that growth versus deflationary pressures. what deflationary pressures. when the trade infraction started it was how prices will move a lot lower or higher, nobody seemed to know, but they were deflationary, the activities that many on the other side of the trade issue had inventories they wanted to sell, they got smart, foreign exchange issues. long and short of it, prices didn't go up many are convinced a trade arrangement will force deflationary pressures

then you have growth potentially, deflation potentially, and you know markets, they want everything yesterday. they're linike little kids i want it now. immediate gratification. i guess what i am getting at, look for stocks to do better if you think it will pop rates a lot higher, you need the economic numbers to go with it, and they weren't there today did you see soft retail sales? that's the consumer. that's what we need to get this rallying yields to get legs. jon fortt, back uh-you to you have a good weekend. >> you too, rick santelli. the man behind some of the largest contracts in sports history, some came together this week super agent scott boras joins us next when "squawk alley" returns.

millions pledged to mlb players, contracts being signed for record amounts what do some of the deals have in common? major league baseball's most powerful agent is behind them, scott boras ajoins us following by what was a monster week, negotiating close to a billion of contracts scott, nice to have you with us. >> pleasure, david. >> a year ago this time in free agency a lot of big names were languishing on the market. this year very different why the difference, so dramatic

in one year versus the next? >> i think the fan basin baseball has kind of spoken about the models that baseball is using, and that is that these predictive models where they felt that the successes of teams were going to be measured by is something other than i think the fans' perception of the ballpark, who great players are. and we've had drops four years in a row, a lot of metrics that illustrate the fans want competition. a lot of teams chose to be noncompetitive for a period of time, and it didn't favor the game now i think owners have taken a view of the predictive models, said they're not working and are looking more to traditional approach certainly a team that followed traditional approach, won the world series with the nationals, we have a game more about the mortar of what we are as a game

traditionally, and that is great players. >> is it your expectation that this is going to become the rule rather than the exception? >> well, i think they're always looking for creative measures to certainly increase their markets and foot holds in the baseball industry and growing the league. they felt they had a model that would allow them to use younger players, avoid free agents, and thought the clubs would be more successful doing it. illustrated that that didn't work, and getting back to scouting, having veteran players on teams as well as young players. certainly i think what we have learned is teams that employ great players, veteran players, are being very successful and that the need for them is something that fans identify with they want known commodities to go see, they want competition at the ballpark for a franchise to be dormant,

go in want to see their bears, they don't want to see the them in caves for two or three years. >> some players seem to not perform nearly as well they are extraordinarily expensive. as a long-time new york mets fan, i can think of count leless players of paying up for that were not worth it. >> there are players that probably have a surplus value in the $70 million, $80 million amounts. the clubs choose to the to pay that for a muff eyer amount for a shorter period because of their rules of the luxury tax, which would bring them penalties. so what they do is they in effect defer the money over a longer period of contracts and what people who are not familiar

with the game, they're taking mvp seasons and saying i'm getting it at a value of half the cost and then when the players get a little bit more age, they then take a valuation that was actually deferred and suggest that is something where the club is as a disadvantage when in fact earlier in the contract, they got a tremendous value at limited expense. >> scott, it sounds like you're saying money ball is dead, this idea that in in this sport, this game, they applied them in the end and it didn't work to create the fan and business experience that people expected is that what you're saying >> we just have a lot of clubs these predictive models cause clubs to go into hibernation for four years and that they're noncompetitive the one thing that fans, they don't want to go to a ballpark and see a team play another team

that's not competitive the boston red sox won the world series in 2018 they had a drop in attendance. the reason for that is that a number of tanking teams came to their ballpark and the fans stayed away. so we have great baseball on one end but we have noncompetitive in a sport fans want a mystery they want competition. what they want to see is a model where all clubs have a reasonable opportunity to compete and win so that you know your home team has to create i think a standard of play that is competitive and there also is a risk of loss i don't think anybody wants to see anything in a game other than the fact when they go there that you're saying major league baseball you're not seeing clubs that are less than major league baseball and i think the fans realize these predictive models tend for clubs to say we want to go get draft picks and do things and

therefore we must lose to get higher draft picks we have to have an alternative mechanism in our collective bargaining where we reward teams for success, we don't reward them for losing. then i think we can remove the fans' preeminent concern that i'm going to the ballpark and i'm not going to see true major league competition >> these are some pretty big numbers, scott how are they all willing to pay big numbers for the best taemgs at this point? >> they're only going to do things that really promote their business i know in these contracts that all the clubs involved really, really felt that this is going to enhance their ability to win a world championship it's going to enhance their brand. it's going to increase their attendance and it's going to help them in the areas of their tv ratings, their advertising ratings and it's going to put them in a position where fans get to come see star players you know, when you have a lineup like the angels just put

together with mike trout and now anthony rendon, upton, the fans know that's a one, two, three, four when you go to yankee stadium and you know you have two number one pitchers with paxon and cole to go into your league, the yankees have a definite solid chance to be a world series contender. in all of these dynamics, i think it proves that the expectations of the fans are being met by bringing in star players. >> you ever have a week this good, scott, with this big a number >> you know, i will tell you maybe other than your children being born, you go through these things and you go et et to makee calls where you represent someone. the fans, the players, they get a chance to win, something they've worked so hard for over ten years, to get lifetime

security it's a very special time >> those are great calls and i would assume good for you. are we right in assuming you're getting 5% is it more is it less >> well, i will say we have 135 people that work in the boras corporation. every one of them, whether it be in our sports institute, sports science, our analytic division and such, we're very proud after kweers of work of being able to in an industry and we have just a narrow, narrow focus to just baseball and baseball only we don't represent any other sports where our commitment to our players and everyone else is that it's come to where we have models that allow our players to advantageously really arise in the system >> understood. >> so whatever it is they're paying, they're getting their money's worth i guess is what you're saying. scott, thank you always appreciate you are joining us, scott boras.

>> and when the markets right around flat, even after those trend headlines that were positive and news that the markets took as positive from overseas in those elections where the labor party lost big, we'll see where it fws from here "squawk alley" is back in less than three [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.

well, the dow is about flat but visa, apple and microsoft are trying to pull it to the up side s&p also flat. that will do it for us here on "squawk valley." john, thanks our breaking nugs continuews co. welcome to the "halftime report." the u.s. and china say they have reached a partial trade deal >> reporter: we're getting information about what he has just said about what's in this trade deal as people try to figure out what the details are and some of the numbers here the president is saying here that he thinks china will hit about $50 billion in purchases of u.s. agricultural products, according to the information we have here, though, the president