dividend lot of synergies in that merger. >> appreciate it nice to see you. >> nice to see you happy holidays to everybody. >> same to you josh brown. >> j.p. morgan up 50% over the last year. but you had to wait for it i'm staying long. >> mr. weiss. >> micron last two days. it's going to go a lot higher. >> great weekend see you on the other side. "the exchange" starts now. yes, it does, scott. thank you very much. fort the first time in history, the u.s. economy has started and ended a decade without a recession. but let's not look backward. let's look ahead the question is are investors setting up for more decades of dominance? or decade of disappointment? plus, phased out ceo who says the phase one trade deal does nothing for his company. and worse, rewards his competitors who manufacture in china. and amazon dominates deliveries walmart bets on high-end booze and are you going to play a video game while driving your tesla? they hope so that's all ahead in rapid fire

we begin with the markets. seema mody, who today is down at the new york stock exchange for us. >> held rs&p hold firmly above 0 for another year of stellar gains. betting on the uso by the way has worked out very well over the past decade. the s&p 500 up about 190%. almost tripling in the last ten years. outperforming a number of international markets, including japan, germany, and the broader emerging market index. which have really failed to keep pace with u.s. equity markets. that could change in the next decade if a couple things pan out. a growing number of wall street strategists are betting on global growth bottoming out. attractive valuations pushing more investors into stocks overseas or even multinationals with a sizeable amount of revenue outside the u.s. take a look at the global world index which houses a lot of those names trading at new record high today. but again, all these things hinge on continued progress on

trade. tariffs have slowed down global economies most notably, china and germany. brian. >> seema mody. another record high. every time you're down there, we hit a record, seema. have to go down every day. seema, thank you very much so as seema laid out, the bulls certainly dominated the last decade in the market the question is now what's next? can the dominance continue into the next decade? let's bring in rich weiss. he is chief investment officer of multiasset strategies and cnbc contributor as well and ron -- >> yes, sir. >> i got a little beef with that last thing seema did i'm not knocking the numbers. >> don't knock seema either. >> no. no i'm just saying the numbers are obviously accurate but that's basically if you bought at the financial crisis lows i think you should have a 12-year decade go back to the highs of '07 where the dow has doubled but it's not up 140 or 150%. fair >> yeah. i think to a point but in any event, the u.s. has dominated the decade with respect to both its economic

performance and its market performance. so i think no matter how you cut it, the s&p's been the place to be whether or not that remains true in the next ten years i think is an open question if the dollar should weaken. if the global economic weakness we've seen of late starts to let up a little bit, there will be some other opportunities outside the united states. >> and, rich, no matter how you slice the numbers, we've had a great decade from an equity market perspective do you expect that kind of run to continue for the next decade? the next year? or not at all? >> it'd be hard put to forecast straight line up for the next decade this economic cycle, this stock market cycle, unprecedented in terms of both magnitude and duration you know, we'd be expecting a return to a more normal economic market cycle in the next handful of years and the one big difference here between the last ten years and where we are currently market valuations. for the first time, valuations are starting to look a little topee. and that's worrisome.

>> yeah. i would agree with rich. i'd say and -- and absolutely agree it won't be a straight line nor was this last decade a straight line. if you go back to 2011 when we had the european debt crisis, there was disruption when you go back in 2015, we had concerns about a slowing global economy. >> hey remember all the specials? >> oh. >> in 2011 and 2014. markets and turmoil. >> yeah. >> and what about last december? >> that was a bare market in three months so yeah. nothing goes up in a straight line and i would suggest that, you know, look couple other things in addition to trade you also have a presidential election in the united states that could be a very binary option i mean, it could be progressives very trump, in which case those policy choices that would ultimately be made if a change were to come would be -- would affect the markets very, very differently. >> yeah, they are stark. it's a great point, ron. rich, i don't want you to get political. don't worry about it but, you know, ahead of the 2016 election -- ahead of the 2016 election, the markets didn't move they basically flatlined for the better part of a year. i think investors just sort of backed off and said let's wait and see what happens

we will probably have a more starkly-divided two choices this time around. do you think the markets will -- will take a year off >> well, i -- there's no question the elections will -- might have a great effect on the -- on the stock market itself and maybe the economy. but betting on the political or election cycle for your investment strategy, never a wise thing not only do you have to be right on who's going to win. you have to be right on what the effect on the markets and economy are going to be. and there is a lot of academic evidence to show that that's a tough bet to make because you have to bet better than the marginal investor. you have to know more than what's already discounted in the market that's a tough game to play. i'd rather be a no-limit hold 'em player in a vegas casino probably have a better chance of making money than betting on the elections. >> i only play slots i don't know those other games i actually won $10,000 once or a slot machine. >> did you reinvest it in shares of amazon at $14

>> of course, i did. that's why i'm sitting here talking to you listen there could be a lot of idiosyncratic events over the next ten years starting in 2020. you know, england may become england again without scotland without a united northern ireland. we might see more turmoil in europe we may see some disruptions in china. it's hard to say i think when you're looking out ten years is tough no one has ever really done it successfully you're lucky if you can do the next year. even the next six months so, you know, we engage in this exercise with every new decade and i think that, you know, there were things unforeseen over the course of this last decade including things like brexit that are going to crop up again. you've got latin america in turmoil. still got some other hot spots around the world that are important. again, as rich says, it's hard to trade those unless you're some multifactor global investor who is trying to hit every market on the planet that -- that's a different discipline and it's someone who does it professionally. >> so, rich, leave us with some real-world advice as we head into not only the next year but

of course the next decade. what's a great model portfolio for cnbc viewers and listeners right now? >> well, for your average investor, it's really tough. quite frankly, to beat a 60-40 portfolio. that's a tough benchmark stocks and bonds in the u.s. but with that said, this coming year, where we have a little more visibility. focus on earnings in the consumer you know, the u.s. consumer has been remarkably resilient through all of this. arguably, what has helped prop up both the u.s. economy and the stock market this year but it's going to be all about earnings this next quarter and into 2020. without earnings coming through, it's really hard to see prices going up we can't just rest on fed reserve policy and pe expansion. >> i would say the fed's probably on hold for maybe all of 2020. so that could be a tough play. look brian, i think like this year, the focus should still be on quality. quality names. clean balance sheets visible growth and in the debt sector, you have to be a little careful

high yield spreads have shrunk down 3 percentage points. >> and we'll let it go but let's not also forget this decade. our late, great colleague mark haines if you had listened to mark, you would be up more than that 172%. pretty amazing stuff. >> and look. i mean, when they're bailing out the banks in full, and doing everything that they did at that time, that's when you buy. >> ron, rich weiss we'll see you in 2020. >> maybe next friday i don't know. >> still a cool number, right? 2020. >> yes. >> exactly it has been, oh, a rough week for boeing maybe the most important stock in america shares falling more than 3.5% as the market continues to hit new highs. let's take a closer look at the two things that have been dragging down the stock. one, you know, that is the latest of the grounding of the 737 max. phil lebeau is here with that. the newer news morgan brennan at kennedy space

center with how it is anything but mission accomplished for the boeing star liner. phil, though, let's begin with you and the latest on the max. >> and, brian, two pieces of news regarding the max today let's start first off with what we learned in the last hour or so united airlines is now pushing back plans to fly the 737 max. pushing them back by three months so united will not start flying the max again until june 4th that's the latest plan look that's two months behind southwest and american the total number of u.s. cancellations for the max, if you go all the way back to march 13th when the grounding took place, 146,000 max flights will have been cancelled. and that's if the plane takes off as scheduled by these three carriers on the dates that you see there. the other piece of news. spirit aero systems, which is based out of wichita, kansas look at this shot. those are 737 max fuselages built but just waiting on the tarmac there because they've got no place to go since they're

shutti shutting down production out in renton, washington as a result, they'll stop building max fuselages they've got workers at spirit. they are still in the process figuring out exactly what they're going to do. whether it's going to be layoffs. whether they'll continue paying those workers. when you look at max production, remember the pause in production starts in january. may not actually be january 2nd, january 3rd. but it's going to happen in january. how long the line will be shut down remains to be seen. though, most people, brian, when i've talked with them, they say look don't be surprised if you see them shut down production at least for a couple of months it's not like it's going to be down two weeks and then coming back up. it will be temporary and they're not laying off workers but, again, it's been a rough week for boeing. >> it has. and as you've noted, no layoffs or furloughs planned for the boeing side. but showing that dramatic video, spirit aerosystems i mean, it looks like the warehouse is full. is there any word of maybe other layoffs at any of these suppliers? it's not just about boeing >> you're not seeing them at the

large suppliers at this point. and spirit may work out a deal with the state of kansas where the state steps in and says, look, we will help compensate some of the workers here so there are not layoffs there. those are skilled workers there in wichita so they want to make sure that they don't lose their workforce, as well. because eventually, the production will resume and they want to make sure that it's as smooth as possible. >> all right phil lebeau, thank you very much now, let's get the other side of the boeing story this one, brand new. head down to south florida morgan brennan has the details on boeing's failed star liner mission on what is obviously a big story but apparently incredibly windy day at kennedy space center. >> yes, it is a windy day to say the least. it has within rough for boeing on the commercial side it really could have used a win in terms of its defense space and security business. that was not to be today instead, it suffered a setback a malfunction of the boeing star

liner capsule that had been destined to visit the international space station on this first flight to space so the launch, which happened just before daybreak this morning itself, actually went according to plan. the trouble arose after star liner separated from the upper stage of that atlas 5 rocket which was its ride, at least initially, to space. a flawed engine burned that failed to push the starliner to the correct orbit. what nasa and boeing officials are categorizing as an automation issue that would have, likely, been overcome if astronauts were on board so nasa administrator speaking with me earlier today. and noting that if astronauts were, in fact, on board, there was no humans on this flight today. that they would have been completely safe. the big question now what is this going to do to the timeline for boeing to start ferrying astronauts back and forth to the international space station? and what does it mean for the

company in the midst of everything else that is swirling around it right now? back over to you. >> morgan at kennedy space center another tough story for boeing certainly, a rough ride. you wonder where the dow might be if boeing actually participated in most this rally. we've got a lot more to do here is what else is ahead on "the exchange. coming up. nike putting the right foot forward last quarter but does the stock have legs to keep the rally going plus, why won't fox conn tell wisconsin what it's building a look at the ugly legal battle brewing. and meet a ceo who says a phase one trade deal does nothing for his company. this is "the ehae"n bcxcng o

well, shares of nike are lower a little bit today despite beating analyst estimates for their fiscal second quarter including a billion bucks in sales for their jordan brand i think the first time that's ever happened in a quarter and a huge jump in digital sales. however, nike's been on an absolute tear this year for investors. shares up more than 34%. nike also closed yesterday's session at a new record high making a positive finish in 11 of the past trading days your next guest just upped his price target on nike squesand he should know all about shoes.

joining us now, ubs retail analyst. spelled a little different but i imagine people give you a little grief about that, right? >> i do hear that sometimes. >> let's talk about this nike $1 billion in sales for the jordan brand in the quarter. how well-run is this company >> well, it's a great point. i mean, michael jordan hasn't played basketball for a couple decades and yet this brand continues to grow. not just in the u.s. but all over the world it stands for excellence consumers everywhere love it they have great design that's the magic formula. >> is this the first billion dollar quarter for the jordan brand? >> i think it is, yeah. >> i mean, michael jordan hasn't played basketball in about 20 years. what makes this brand so iconic in a world where fads come and go like that >> well, you've seen what nike's done with the brand. like, university of michigan has a jordan basketball logo on their football jerseys you see other athletes like

derek jeter. they've really branched out really excellence and athletics all over the world. >> listen. there have been some gentlemen who have lost their jobs in upper management due to some of the me too concerns there have been walkouts over the names of alberto salazar being named on a building on campus i mean, this is not a company that has not had its controversy or its employee issues how are they able to maintain their focus through -- there have been some nasty headlines of nike this year. >> you know what's aimazing is it's a company about supporting sports and athletes but they behave and think like athletes they always say there is no finish line. it's a very competitive culture. when you look at market research, our ubs evidence lab has done extensive market research all over the world and nike's still the most popular brand across every major geography. >> fair enough let's talk about valuation i think ebitda has gone up 500 million or something in the last two years.

revenue's gone up a couple of billion in the last two years. but the stock price has doubled. >> yeah. >> so sales and revenue are climbing mid-single digits but the stock is doubled one of those things just doesn't compute. >> yeah. i think the market is anticipating really strong double digit growth. 15%, even higher in terms of eps over the next few years looking forward. >> is it possible? >> well, you know, as big as nic nike is, we do think it's possible it's only 9% global share in footwear and only 1% in apparel. they're hitting an inflexion in terms of this triple double strategy they've talked about. they've invested a lot in ecommerce. they have invested a lot in supply chain and now, it's really starting to benefit the company. >> but as much as you love the company, you've got a neutral on the stock probably for what we just talked about. maybe the gains of future growth have already been taken. >> if you look at the multiple, it sort of implies a peg ratio of two and that's in line with the rest of the group. so we think the valuation is fair price to earnings to growth.

so we think the multiple's fair. but this is a very popular stock. the short interest is all time low. so our view is the same view as everybody else has. >> you know, i thought it was soul so i was -- i was going to use a neil young and say hello mr. soul thank you very much. great stuff. really interesting stock on deck, has facebook sheryl sandberg lost her magic touch as the company battles all kinds of privacy concerns we're going to lean into that story ahead. and tesla. wow. monster run. up nearly 70% in 90 days so could the stock's next big move come from video games it might we'll tell you how coming up >> deeper data at cnbc shipping volumes dropped the cass freight index for november falling 3.3% from a year ago this is the 12th straight year-over-year decline for the cass freight index

welcome back to "the exchange." just quickly some of the big stock stories that you might have missed on this friday shares of uf steel ouch down more than 10% company cutting its dividend, warning of a fourth quarter loss and cutting capital spending next year. additionally, u.s. steel plans to -- its great lakes works operation in 2020. black berry shares yes, blackberry. up 10% after beating on the top and bottom line.

company saw sequential revenue growth across all of its various software businesses. and apparently rvs are a-okay. shares of winnebago up about 9% today also on earnings and revenue beat results got a boost from strong sales in the motor home. better known to you and as i a trailer. sue herera. >> indeed, it is thanks so much, brian. here's what's happening at this hour, everyone the number of states that are now reporting high levels of flu activity has nearly doubled from last week. the cdc now says that there are 4 million cases of the flu nationwide ford is recalling 600,000 mid-size sedans over concerns the cars may have trouble braking. 15 crashes and two injuries have been connected to that issue the recall impacts model years 2006 to 2010 on the models are the ford fusion, the mercury, and the milan. and two carnival cruise ships collided in mexico this morning.

many on board tweeted video and pictures showing the moment that it happened. in a statement to cnbc, carnival said one passenger suffered a minor injury and the crews are assessing the damage but both ships are expected to continue on their planned itineraries. and incidentally, closing bell will bring you more on this story later today in a live interview with carnival ceo arnold donald. he'll talk also about the company's better than expected earnings report, which is boosting its stock better than 7% that comes up today at 3:00 p.m. eastern time so lots to talk about there. that's the news update, brian. back to you. >> you know, as soon as you brought the story, sue, the director got in my ear and goes how do two giant ships run into each other i mean, with radar and hey what's that? i mean -- >> because the -- the -- the area where they're docking isn't separated by a dock. it's -- it's a big open area. >> yeah. >> so that's one of the reasons why. something similar happened in venice where the ship just went

right into the dock. >> yeah. i mean, luckily only one person apparently was injured all right. sue, see you in a bit. >> you got it thanks. >> here's what else is coming up on "the exchange." >> ahead can tesla's recent highs get it to 420 plus, amazon's delivery dominance. and walmart moves into premium booze. that's all ahead on "the exchange." ted by apple, so it's simple and transparent with a new level of privacy and security. it lives here and here- on your iphone, and it will save you 6% on holiday gifts at apple; like iphone, apple watch, airpods pro and so much more. ♪ apply in as little as a minute, right in the wallet app.

boxes, and is walmart getting cool maybe. time for rapid fire. now with their takes, kate rogers, bill griffeth, rahel solomon, all cool themselves first top, tesla climbing higher today. blasting past the $400 level another record high close yesterday. tesla, if you haven't been paying attention, is up nearly 60% over just the last 60 days and it's doubling down now to try to attract international customers with a new report that it will offer, get this, mah-jong games on the big screen in the teslas in china the games and videos would only be able to be played, rahel, when the vehicle is properly

parked i think that is a positive. >> and i pass it on to kate because we were just talking act this and you said that you saw someone this morning was it recently >> watching a movie while he was driving. his phone was in the gps you know, holder. >> in a tesla? >> no, not in a tesla. he was watching a movie. but i think that's the issue when you are putting these things in cars who's going to hang out in their car and relax after work and play games >> believe me. at least they have auto pilot, which is semiautonomous. >> what's the point of having it in the car if you're not being able to watch it while the car is moving? if it's just sitting i'm with you. >> yeah. >> you're not going to watch it. >> kick back in your tesla after work. >> is that for the chinese customers? or for the customers in florida? people in florida are screaming laughter right now. >> why >> it's a demographic joke i'm sorry. mah-jong very big in florida. >> oh, i got it now. i got it. >> you know, it's tough when you

have to explain your punch lines. >> i think it's just really a little absurd, right that we're sort of putting all these amenities in cars. self-driving vehicles. really, if we just paid attention to the road, you know. >> i mean, i have a jeep have you seen my jeep? it's a little bit jacked up. so i sit a little higher up. 100% of the cars that either pass me or i pass, the driver's on the phone i mean, literally. and they're kind of weaving and you're sort of like are you going left or right, buddy >> but we've gotten away from the core of this story tesla -- tesla has definitely gotten its mojo back elon musk. let's face it. he is starting to behave himself now. i just looked at his twitter feed this morning. he was notorious for putting stuff on twitter that got himself in trouble lately, he has avoided it like the plague and all you get are these nerdy math jokes from elon musk on twitter. >> i think vince vaughn in swingers at the end of the movie said it best he's all groans up and he's all

groans up. >> at the tender age of 48 he finally has growns up yes. >> amazon announcing it is on track to deliver 3.5 billion packages globally in 2019 through its in-house delivery network. of course, part of that is this big holiday season earlier this week, amazon announced sellers would not be permitted to use fedex for deliveries to prime members, citing a decline in fedex's performance. the street taking notice of this opportunity. morgan stanley saying its delivery network delivered about 20% of the company's packages this year. that would make it 6.5 billion packages by 2022, which is more than ups or fedex's total haul combined wow. bill griffeth, that's a lot of boxes. >> what caught my attention is now amazon employees, 90,000 people in the united states for its shipping business. so i looked up fedex you ready? 235,000. ups? 400,000. and look how efficiently amazon

is doing this with less than half the number of people fedex is taking to get their shipments out there. it's unbelievable. >> and those numbers are probably increase. 2019, they said they delivered about half their own packages with their own, you know, with their own delivery service by next year, they expect that to be 70%. so they're growing rapid. >> i do like what they've done i mean, i know we talked about this before. a lot of the folks that deliver amazon to my neighborhood are just private citizens. if you've got a van or an suv, you can get a job and probably make some decent money if you're amazon. >> and it is so efficient. i mean, when i get packages delivered from amazon, they never go missing they're pretty much always on time but coming from fedex or ups, sometimes they get lost in the mail it can take a little longer. >> so if you ever -- you ever been to milwaukee, wisconsin >> i have. >> fine people if you drive up 94 north from chicago to milwaukee on the right is a amazon fulfillment center

on the left near the mars cheese castle on the left is a u-line. ever heard of them probably the second-richest family in wisconsin. billionaires made on amazon fulfillment boxes. how much money's been making money with boxes and where do they all go >> that's amazing. >> i wonder what the recycling costs are in all this. >> your mind just goes 100 miles an hour at all times, doesn't it >> you should see him on wex. >> 5:30 in the morning yeah. >> probably tired now. >> i didn't do it this morning but thanks for watching. topic three. walmart. hoping to, here we go, kate. walmart hoping to spike its bottom line offering booze it is selling more hip items like apparently hard seltzers. they're hip i guess. in one test trial, walmart bought a single barrel of buffalo trace bourbon and sold out in six days. is it possible, kate rogers,

that walmart is sort of kind of getting cool >> i think the demographics may be changing around who shops there. and this has to do with millennial parents that are running to walmart to get all of these different things and those are the things that they're interested in drinking. >> you're cool and hip millennials. would you go to walmart for booze? >> i think it's a one-stop shop, why not? if people are turning more toward the craft beers and higher-end whiskeys and whatever else and it's there and you don't have to make a second stop, why not? >> i agree with not as well. one thing i will say is what they're finding is the closer you are to a brewery, the more it's important to you. so i'm not a huge beer drink you but i'm from philly where we have a lot of those breweries. and people really care about their beer so what they're doing is making it super hyper local so it's not like all walmarts will carry the same brands depending where you are, it will be local to you. >> this is definitely not sam walton's walmart anymore if they're selling hard liquor. >> i don't think he allowed the sale of liquor at all. >> however, i am so impressed.

you know, walmart is the biggest employer in the world. 2.2 million people and they are acting like this entrepreneur yal startup lately. >> jet.com deal was brilliant. >> but now, they're completely redoing, just like that, their beverage. >> bill, will it get -- the only reason to do this is to get new people into your store, right? will it work >> i think kate's on to it, though i think those people are coming to the store now but it's the old adage give the customer what they want. >> they've had 100 meetings with these craft brewers they said so they're really taking this into account. and people clearly want it oh so why not? >> why not topic four one for the old dudes. concert industry trade publication poll star. top ten touring artists of the decade what may surprise some people is how many decades some of these guys have been around.

top grossing concert tours paul mccartney the rolling stones u2, who by the way grossed over $1 billion and roger waters pink floyd's lead singer bill griffeth. keep on rocking in the free world, man. >> everybody that sees this list has a very different take depending on the generation you're from. but, you know, u2's number one a billion dollars in the decade. >> they're in a different -- they're not in the generation of mccartney. >> no but the stones are i mean, that's that generation what struck me is bon jovi did as well as he did. no offense. >> who knew? >> he's one of the two rock gods in new jersey. he and bruce springsteen and he outgrossed bruce springsteen in the decade. >> by the way, they live on the same street. >> let's not forget beyonce is on this list. >> but she's only number five.

>> this is a very different list remember a few weeks ago we were talking about spotify's top artist it was a very different list that was very young, right, because younger people maybe stream more. this is who has money to spend on expensive -- >> yeah. >> by the way, i just want to throw this out there it's friday and why not? the who's new album. the who has a new album. it's really good it's really good and they're going to be doing like a residency in vegas and if i can get the time off, i'm going to head out there. because you know why we can now afford to go see these guys the tickets are spectacularly expensive. >> and every time these old dudes go on tour, everyone's like, hey, i didn't call either of you dudes old i'm just talking about the old dudes on the list. this may be the last time you see them i can't tell you how many times i've heard my parents say that but also as rahel said, let's take a moment of appreciation for taylor swift and beyonce's number four and five on the list i was also surprised to see ed

sheeran was -- >> i don't know know who he is i've heard his name. >> he stands on stage and plays guitar hardly a spectacular stage show. >> very talented, though. >> this may be the last time this will be the last time maybe the last time. i just don't know. >> sure. let's go with that. >> it's a song, rahel. >> i figured >> it's unbelievable. >> it's a hamster wheel of garbage. all right. guys, thank you very much. kate rogers, bill griflfeth, rahel solomon. fox con with the company being evasive about what exactly it's building there they might be putting subsidies at risk. going to take a deeper dive into the issue with the guy who is out there and knows exactly what's going on in wisconsin next

all right. wellcal back new documents obtained exclusively by "the verge" show wisconsin officials are scrambling to renegotiate the

state's contract with foxconn, which includes about $4.5 billion in incentives of the taiwanese technology company refuses to budge for more on the show down, we're joined by the reporter on the story from the verge joss, i assume you've been out there. >> yes. >> we were out there a couple years ago. what's happening there what have they got there are they actually building anything >> that's a good question. and something that everyone, including people in the wisconsin government, are trying to figure out. they are building something. they're building a factory it's a little shy of a million square feet. to contrast that with the initial deal, they were supposed to build a factory that was 22 million square feet. >> a million's not that big in the grand scheme of manufacturing. >> right and more to the point, no one knows what that factory is going to produce initially, of course, it was a lcd factory. they now say this factory will be operational in 2020 but lcds might not come until 2022 so no one knows what is going to

happen what it will make. >> yeah. last week, the foxconn vice chairman says they now have over 500 wisconsin employees. where? >> that's a good question. >> again, when a they doing? >> they're not producing anything right now they do have headquarters in milwaukee. when i was out there -- >> do you think they're counting construction workers as sort of employees? >> that's a big question so last year, they submitted an -- a report saying they hired a few -- maybe a little less than 200 employees a lot of them were found to not count under the contract they worked in california or texas. i think it came out to 113 workers. and no one really knows where these other 400 or so workers came from or what they do. >> so here's the money question. if -- if they build a million-square-foot facility as opposed to a 22-million-square-foo22-millio - 22-million-square-foot, facility, a tenth of the employees they said. 1300 not 13,000. do they still get the 3 to 4

billion in incentives? >> that is the question. and the documents we got show the state urging foxconn to come to the table and revise the contract to reflect the smaller project. and the state has said that if foxconn doesn't revise the contract and just tries to get subsidies for the smaller factory, the state will reject the subsidies. and so right now, you have a showdown. >> i mean, there was a contract. >> well, there was a contract and the contract was quite explicit that foxconn build a generation 10.5 lcd factory, which they're not apparently building. >> so wisconsin at the time was smart enough to put specifics in that you have to do this and build that otherwise, foxconn could, as we said, out fox them get the taxpayer money, which by the way is like a $200,000 per worker if they hired 13,000 people. >> right. >> basically, a lot of money much more than other subsidies they could basically outsmart the state of wisconsin. >> yeah. and so now, you have this showdown happening where the state is pressuring foxconn to come to the table

the first step in that is foxconn saying explicitly what they're actually building. and foxconn refusing to do so. >> how do you think it's all going to play out, josh, based on your reporting? >> i don't know. i think there are a couple ways it could go. i think the thing to watch is when foxconn submits its annual report in april. and the state then either accepts or rejects the subsidies. they would have to revise the contract before then if they're going to foxconn could walk try to accuse the state of killing the deal obviously, the state has been urging foxconn to revise the deal to make it work it could all end up in court in that case, it would be an expensive and -- >> it is because there is -- we were out there there's a lot of other stuff people don't think about necessarily. like, a water source you know, you're going to have to build giant infrastructure to handle the water to cool down the generators that run the factory. there's all those things that the taxpayers could end up being on the hook for. because they're building that

now. but if the facility doesn't open up -- anyway, josh, on the verge. urge everybody to go check that story up especially up there in wisconsin. josh, thank you very much. appreciate it. the last decade saw sheryl sandberg at the highest of highs and not the lowest of lows but certainly maybe down from the top. we're going to take a closer look at sheryl and how she went from global icon to just running a company that is mired ain little bit of controversy. stick around >>i'm searching for info on options trading, and look, it feels like i'm just wasting time. wasted time is wasted opportunity. >>exactly. that's why td ameritrade designed a first-of-its-kind, personalized education center. see, you just >>oh, this is easy. yeah, and that's >>oh, just what i need. courses on options trading, webcasts, tutorials. yeah. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. >>so it's like my streaming service. well exactly. well except now, you're binge learning. >>oh, i like that. thank you, i just came up with that. >>you're funny.

learn fast with the td ameritrade education center. call 866-296-7451 or visit tdameritrade.com/learn. get started today, and for a limited time, get up to $800 when you open and fund an account. that's 866-296-7451, or tdameritrade.com/learn. ♪

and a drumroll, please. yeah! tonight is a magical night. where anything is possible. it's party time. woo! here we go. ha, ha. now for the icing on the cake!

come, we're about to begin. exchange." the past ten years really have been sort of a decade of disruption and not just for the stock market one of america's most polarizing companies, facebook, has seen its own series of highs and lows in recent years. especially for its chief operating officer, sheryl sandberg and ceo mark zuckerberg tech reporter, sal, let's dive into your story on facebook and more importantly sheryl sandberg and some of the highs of sheryl because she has been really a star of technology >> yes, brian. she really has this past decade, it was quite the roller coaster for sheryl. but in terms of the highs, i mean, if you just look at the company's revenue, she grew it from 2 billion in 2010 to a projected $70.5 billion this

year so that's certainly quite the achievement there. i believe that's more than 3,000% growth. and then the other key highlight for her was publishing lean in in 2013. that certainly made her an icon for women in the workplace almost 200 million with survey monkey i know that's the company her former husband, she lost her husband tragically a couple of years ago, five years ago. not only one of the most successful women in technology but also probably one of one of the wealthiest >> she's a billionaire she's on the board of facebook she's achieved quite a bit when she lost her husband there in 2015, the decade began to take a turn for the worse. >> losing your spouse sort of suddenly like that and what she went through was awful

facebook, obviously, dealing with its own issues with c cambridge analytica. we can make all we want about the head lieps but tlines but tr doesn't care >> despite all the incidents they've had over the past couple of years, notably the cambridge analytica scandal in 2015, employees said cheryl still retains quite the reputation within the company they believe she's a skilled business person that brings a lot to the company >> she does. thank you very much. >> thank you next, trump ease trade deal with china was billed add good with manufacturers

a ceo says the latest trade deal not only hurts his company but helps company who manufacture or buy from china we'll bring that story, next

most people think of verizon 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. (second woman) we also keep them ready for the next big opportunity. like 5g. almost all of the fortune 500 partner with us. (woman) when it comes to digital transformation... verizon keeps business ready.

back major developments to the president's trade agenda let's go through the math ov what it costs all americans. all the tariffs he vie eleveed white house would have cost 113 billion annually the number dropped to around 70 billion if it is signed. none of this all really matters to your next guest that says the phase one deal hurts companies that makes products here or rewards those that manufacture or source abroad he's the ceo of manufacturing company cysco. why are now not happy with this deal >> we're not happy because we understand stood it could cut the tariffs in the list three products and list four it only cut 7.5% all of the list four products and left the 25%

that is on the list three products now, all of the products that we buy from china to build loud speakers in the united states are on the list three tariff schedule it didn't help us at all in fact, any of my competitors who billed complete loudspeakers in china can import them now with only a 7.5% duty while i'm paying a 25 3% duty >> they benefit from manufacturing in china i thought the entire point of the tariffs was to do the opposite >> well, you would think that would be part of the policy but that's not how it's worked out the net effect of it has certainly been to damage businesses we know there's been certain damage done by the tariffs we still don't know what the certain benefit is >> do you want to start making your speakers in china or mexico or vietnam or where ever

>> i may not have a choice we need to stay competitive. msico is a strong, growing business we need to be competitive in the global market. if that means we have to ship some manufacturing to vietnam, to the philippines, to malaysia then we'll do that >> how many people to you employ, dan? >> we have about 100 people here in st. paul, minnesota >> potentially, if things don't get better, some of those jobs could be at risk >> well, we're hoping that we're on a strong path and we're hoping that we can move some of the production offshore without impacting our work force nobody know what is will happen with this trade war. we don't know if the tariffs will go down we have no idea how long the 25% will be on and we don't know

they couldn't be tweeted into 35%. >> if you could sit downtown the president or peter navarro larry kudlow, the trade team or the president himself and they said what do we need to do. what would you advise them or ask them for >> i would say do not coerce american businesses and farmers to be on the front line of your trade war by taxing them this is the highest taxization experience i've had in my lifetime i would say if you want american manufacturing then you need to ince incentivize. american companies are ingenious. we can do a lot of things. we're very innovative. we can compete in the global marketplace as long as we don't have something like these 25%

tariffs hanging around our necks. >> can you compete with china? we've seen it weaken again they can manipulate their economy from sort of the iron fist, not the velvet glove and make their exports less expensive because they bring down their currency. you have to agree there's something to be said they're not playing on a level playing field. >> it's up to each business to determine how do they deliver value to their customers we would be able to present a superior product than our competitors. 25% tariff zaps the cash flow

that we need in order to innovate, to reinvest in our technology, to develop new products >> yeah. dan, we got to leave it there. i have five seconds left of the show good luck. thanks for coming onto tell your side of the story. we appreciate it have a great one >> thank you >> that does it for the exchange i'll join tyler on power lunch in a minute which begins now yes, you will. we look forward to having you over on the hundrlunchtime. here is what's new at 2:00 stocks soaring this december after the nightmare that was last christmas we'll tell you what it means for 2020, if anything. plus the wearable wave the number of people using wearables in the u.s. expected to double. we'll explain what's behind the boom and what kinds of products they are later, the force is with disney at the box office this year and despite rotten reviews