it's 11:00 a.m. at the white house for the president's signing of the usmca a few moments away it's 11:00 a.m. on wall street, and "squawk alley" is live ♪ it's fun to stay at the ymca ♪ it's fun to stay at the ymca they have everything that you're meant to enjoy ♪ ♪ you can hang out with all of the boys ♪ ♪ it's fun to stay at the ymca ♪ it's fun to stay at the ymca ♪ you can get yourself free ♪ you can have a good meal ♪ you can do whatever you feel ♪ young man >> good morning, welcome to

"squawk alley. i'm rick santelli here with jon fortt. the market trying to reclaim its sessions highs, about 210 or so as we're looking for two back-to-back gains in a row. president trump expected to sign the usmca in a few moments our kayla tausche is live with the latest. >> hi, carl, we're awaiting the event to get under way it is expected to get under way at about 11:00 a.m and if we learned anything from the china event a couple weeks ago, he's prone to potentially going off-script we got a flafber of what his mindset is last night in wildwood, new jersey he said the administration is replacing the nafta nightmare and he's delivering on his promise to provide jobs to the american people and ripping up that trade deal, which he said -- reiterated last night -- is the worst in american history. at this event today we expect about 400 attendees, including

the ambassadors from canada and mexico to the united states. we expect lawmakers, we expect lobbyists and we expect potentially executives from the industries that will be the most impacted by this deal. certainly the industries that will be the most wholesale changes to the way they do business in north america will be the automobile manufacturing industry as well as the pharmaceutical industry, which will see a new and potentially controversial provision that will see the removal of protections for brand name drugs that will allow generics come on the market sooner. certainly the pharmaceutical industry hopes that's not a precedent. we're watching attendees spill it on the white house lawn despite the fact it's january and cold today in washington but they can fit about double the people in the south lawn than they could where the china event was and want to create yet another vignette of economic success to parade on the campaign trail. >> i will take it.

thank you. looking forward to that. in the meantime the earnings story of the morning is apple. earnings and iphone sales smashed the street's expectations much apple apple's fastest-growing sector is wearables and the guys are here at post nine good morning >> good morning. >> pierre, we have to do this, you have a neutral on the stock. $275 price target. back in september i think it was stock around $205 and you had a $175 price target and said the reality is margins would be hit by tariffs weak iphone cycle you expected to be historically weak. i have in my notes, look at disney and roku couldn't this move on service lines and the move we stronger based on

trade-in incentives? and it was why were you so low on the stock? have you done enough looking where you were wrong to be confident you're right now >> well, i hope so so, jon, the correct software of what we discussed last year is the iphone cycle is not bringing what they did for a generation that's what i got from it. and yesterday was a confirmation of that. iphone 11 was a very strong cycle. it drives customers and people want to replace their phone and want the new iphone. it's difficult to capture but i think you have three things. the first one is iphone never looks different. it's made headlines. some of the features we're really well researched the camera i battery life.

and the last thing is is apple did something absolutely fantastic, it took the prices down compared to the previous cycle. i think it drives all of these people who did not move and clearly thinking of making a new deal. >> there's also, i would argue, something you missed on valuation. i think the stock started moving even before it was clear the 11 would be such a strong cycle, apple's valuation expanded maybe that's because of wearables? how do you factor that in, you had 18 1/2 times is what you're assuming going forward >> yes, 18 1/2 times for '21 earnings go back the next five years, apple traded on a very wide valuation ranch. when the iphone is doing great, you're at the high end of the ranch. when it's not doing great, you're at the lower end of the

ranch. i had them lower last time around and now thinking 18 1/2 times earnings means apple is in line with the broader market, with the s&p 500 and that's actually a higher end historically of trading side so that's a place i'm comfortable with the valuation going forward if i were expecting continued monster bids on expectations, increasing quality sentiment, i would go higher but today i think most of the good stuff has happened. >> kwanzy, one thing for sure, pierre is not alone. service work failed a lot of analysts, on the demand and supply side. so what is the best metric if you're going to build a model on the iphone >> it's tricky if you look where the demand was a year ago, most people were thought it would decline from there forward. but what has really happened is you're coming back to a normalization to about 200, 210

million or so and that's what we think will continue over the next several years given the visibility you have around both replacement cycles potentially coming in with 5g a little bit but also the fact you went through a real drop in china demand, which is now renormalizing. we're at a point to anticipate 208 million and that's great for the multiple because it adds predictability the reason the multiple suffered before is people were worried the iphone was heading towards the apocalyptic line and profits going down but we found gross margins are guided up the high end of the range as much as 39% when people worried growth margins could be headed down 36%. so that's the differential that accounts for the change in valuation structure when people look at the slight even thoughs the service came in a little light, it's less of a concern when you think about the base iphone business.

>> do we need to worry about pricing if we're comfortable with units do asps matter more this year than last? >> no, i think pricing is on a very safe trajectory of course, we expect like an additional iphone to come through in the near future in seven weeks. it will be a lower sb phone. but we think it will be on the near side so i would not worry about pricing. when we come into the 5g cycle, that will be an interesting debate how does apple include 5g into its rise. that's something we should probably discuss next time. >> probably a bone to throw to people who are bearish like pierre was less than a year ago apple started reporting iphone components and then it felt like things were heading south trajectory

wise, revenue wise for the iphone but i would argue -- tell me what you think of this theory -- what we got was a head fake. what we got was apple knew they needed investors to look at more than just the iphone and now services revenues are flattening out but wearables look like this big thing, maybe even bigger than apple could have imagined maybe a year ago. >> jon, that's a great point wearables -- this speaks to apple's generation really. when you look at a company who did not have anything in wearables a few years ago to now launching the watch, phenomenal success, airpods, which are stocked up for a month, they careerly have done innovation that surprise people to inspire new categories the size of a fortune 500 company. that caught a lot of people by surprise what happened in the future? can we get something around augmented reality? the reason it is rated because there's so much optionalty in

the stock, so much they can do and spending in r&d to make sure they're not disrupted by the likes of samsung sung aand othe companies. they stay on top of micro sds, change in all technologies and on top of every rabbit hole technology that is key. >> are they on top enough? you can argue also, home pod, we have not heard much about it and spies speakers you talk to are supposed to be the home thing. mac was down ipad was down even after the big push apple had into ipad pro a year-plus ago. still we had a great quarter are they on top enough or is that an argument for they could very easily reverse those things and as services flatten out if you have a good ipad quarter and good mac quarter, good home pod quarter, they're still in play >> i think what they've done around ai has certainly lagged

compared to what happened to peers. the reason i think you had a situation apple created a community of utmost secrecy. ai researchers publish every day what they do they're proud of their own progress around their research that is a mitigating factor but excellent people at google and so on are changing the game there now. >> very important. the president is about to speak at the usmca now let take a listen. >> thank you very much if i announced every nail, we would name, we would be back here about three urz ho but i want to thank everybody and thank you for coming to the white house for this joyous and historic occasion. everybody said this was a deal that could not be done too complicated, too big, could not be done. today we're finally ending the nafta nightmare and signing into

law the brand-new u.s./mexico/canada agreement very special very, very special the usmca is the largest, fairest, most balanced mondayern trade agreement ever achieved. there's never been anything like it other countries are now looking at it but they can't be a border like that because by far that is the biggest border anywhere in the world in terms of economy and in terms of people, there's nothing even close this is a colossal victory for our farmers, ranchers, energy workers, factory workers and american workers in all 50 states and you can almost say beyond, because it's all beyond. this is all over the world, even though it's one beautiful border where by the way, a very major, powerful wall is right now being built. i don't know if i should say that at this particular meeting. i know last night it got a very big hand today they're a little bit like are we supposed to clap now?

the usmca is estimated to add another 1.2% to our gdp and create countless new american jobs it will make our blue collar boom, which is beyond anybody's expectations, even bigger, stronger and more extraordinary, delivering massive gains for the loyal citizens of our nation for the first time in american history, we have replaced a disastrous trade deal that rewarded outsourcing with a truly fair and reciprocal trade deal that will keep jobs, wealth and growth right here in america. [ applause ] and in a true sense it's also a partnership with mexico and canada and ourselves against the world. it's really a trade partnership if we look at it that way. and it's ady of great

celebration in all three countries. i want to thank our amazing vice president mike pence who helped us so much with the deal and our sincerest appreciation to ambassador robert lighthizer, jared kushner and steve mnuchin and all of these incredible people for the job you've done like i said, they said it couldn't be done welcome also to many members of congress who were key to getting the deal done, including senator grassley where is chuck oh, he was brutal. he would call me, he would say how is it going? how is it going? and with chuck, you just don't mess around. you say we'll get it done. don't worry. thank you, senator, very much. and pat roberts, martha mcsally. i want to just if i could mention -- because we do have some incredible people that worked so hard and senators.

maybe i'm just being nice because i want their vote. does that make sense i don't want to leave anybody out. hey, congressman, i already got your vote, 196-0, the hell with you. i think i have to mention some senators that are here marsha blackmaburn, where is marsha blackburn great state of tennessee roy blount thank you, roy thank you, roy john bozeman thank you, john. thank you very much. great job. mike brawn, who's become a big fixture on television and doing a great job. shelly more capitalio, thank you, west virginia, great place. senator bill cassidy senator, thank you very much john cornyn. thank you, john. your poll numbers are looking good, john

very, very good. you don't have to worry about beto either, do you, john? a great young gentleman and he's been with us right from the beginning, senator tom cotton. where is tom thank you, tom thank you, tom kevin kramer thank you, kevin ted cruz, boy, has he been -- where is ted boy oh, boy, he's dyeing to get back there and ask those questions. he's saying let me out of here, president, i want to ask those questions. he's got some beauties, i bet. thank you, ted, for everything you've been incredible steve daines, my friend from the beginning. thank you, steve joni ernest. joanie erns joanie ernsst, it was a tag team with joni and chuck. i would say tell them i'm not

in, please lindsey graham -- where is lindsey? he may be having a news conference right now he's working on stuff. he said i'm going over to a news conference i said, you know what i would rather have you at the news conference don't worky, ry, we will take c of it. a young, brilliant guy who's respected by everybody, josh hawley tremendous he's another one, he doesn't want to come over here right now. where is john hoeven john, you have been so great thank you, john hoeven senator james lankford he is a terrific person. we were just together on our very special day, right, james kel kelly laufer congratulations, kelly, really great. they already like you a lot. that's what the word is. thank you, kelly martha mcsally

good, martha, great. jerry moran. jerry, thank you, jerry. you did a great job in a lot of different ways and another one is james risch james, fantastic job you do. and mike rounds. where is mike? mike, thank you. he's always there, mike. he's fantastic tim scott, mr. opportunity zone. i think he's over there fighting he's saying just read the transcripts, that's what he would say. he's great tom tillis, who's doing pretty well is what i'm understanding, tom tillis where's tom? yep. and roger wicker by the way -- thank you, roger is there anybody i didn't introduce? i would like to apologize immediately. where's rick he's been one of the greats. i figured he was over there. rick, why are you not over there, rick?

rick scott has been so incredible great governor of florida. great, great governor. now he's a great senator thank you very much. the rest of you i don't have to bother with. i'm kidding. you know the way it works in life, right? trying to teach here but you can actually teach me. i want to really thank all of those people and also with us is kevin mccarthy and kevin brady and mike conaway and verne scalise. they've been incredible from day one. literally 100 other congress men and women. we appreciate you being there. kevin, congratulations on your big victory yesterday. that was incredible. and he's also a tremendous fund-raiser, not that that matters. we don't even think about that but that was a big victory you had. thank you very much. also here many of the state and local leaders including a really good friend of mine. someone who is going to get that

pipeline through and approved and finished, pete rickets of nebraska where is pete? pete, thank you very much. and a special man and very popular governor and very capable governor, has done an incredible job and been a tremendous supporter of all of us, greg abbott of texas thank you, greg. great job, great job you did we're very grateful for the close partnership and cooperation with prime minister trudeau and for our incredible friendship and the relationship we developed with president lop lopez over dore. we are glad to be joined by the ambassador from mexico, undersecretary say aude, mexican foreign minister abe berard, we

got to know them very well this is a complex situation and we spent a lot of time with them thank you very much for being here i want to say i have our great cabinet right up here, but i'm not sure ted, should i introduce the cabinet? you want to get back, right. my cabinet is great, every one of them. every one of them, they're fantastic. they are fantastic and we appreciate it very much they're doing a great job. getting good credits for what you're doing and we really appreciate it. after nafta's adoption more than 25 years ago, the united states lost nearly one-fourth of all of its manufacturing jobs, including more than one in five vehicle manufacturing jobs think of that. one in five jobs lost so needlessly thousands of factories were shuterred, millions of manufacturing jobs were destroyed, and entire communities were devastated from ohio to pennsylvania, michigan

to maine and california to north carolina, devastated two decades of politicians ran for office vowing to replace the nafta, and this was a catastrophe, the nafta catastrophe. once elected they never even tried. they never even gave it a shot they sold out. but i'm not like those other politicians, i guess in many ways i keep my promises and i'm fighting for the american worker, and we're all fighting for the american work and everybody here is fighting for the american worker. this agreement is a tremendous breakthrough for american agriculture. canada will finally provide greater access for american dairy. canada's opening up. it will grow annual exports to our neighbors by an estimated $315 million poultry exports to canada are expected to rise by at least 50%

and egg export could increase by 500% where is the canadian folks? where are they you guys did a good job on us before this deal i will tell you. canada was very tough, but they're good they're our friends, so we appreciate it. very importantly, canada will finally give fair treatment to american-grown wheat the usmca is also a massive win for american manufacturers and auto workers under nafta, companies were given huge incentives to produce cars in foreign countries and ship them to america tax free. no tax, no nothing we lost our jobs, closed our factories and other countries bit our cars but we changed that and we're now setting records. the usmca closes these terrible loopholes and includes strong provisions to ensure new cars

are cash and buy american hands -- fancy word of saying built -- and manufactured with american labor we have some of the great labor leaders here right now i think james hoffa. where is james hoffa james, thank you very much, james, it's great. thank you, james, very much. that is great. fiat chrysler's already investing $4.5 billion and creating 6,500 new jobs in michigan and opening up the first new detroit plant in more than 30 years. and we have a lot of them happening. ford is putting in $1.5 billion and creating jobs and gm investing and creating 2,200 jobs in michigan to build vehicles of the future and i believe we have the chairman and president of the

bosses of those two companies. please, where's mary mary barra, thank you very much. and ford, thank you very much. we appreciate it what a great job please stand for that kind of money anything over $2 billion, you're allowed to stand anything over $2 billion, otherwise we don't have you stand. thank you very much. steel dynamics is building a $1.9 billion flat roll over near corpus christi international automakers are pouring $125 billion into the united states, creating 50,000 new american jobs, minimum they are all investing in a future where we buy, hire, and drive american cars again. i like that. it's a very important part of the deal mexico and canada have agreed to

new labor protections that my administration negotiated, the usmca is the first trade deal in nearly two decades endorsed by the afl-cio. thank you very much, great that was good. thank you. the usmca contains critical protections for inter-lech chulg property including trade secrets, digital services and financial services it establishes new standards and safeguards protecting the environment and currency stability. smrg th something that has been on my mind for a lot of years, long before i got here. what they've done to us with currency has been crazy. it includes protections for american made fibers, yarns and fabrics, boosting the textile industry by numbers you won't even believe you will see them soon this is a cutting edge, state of the art agreement that protects and serves the great people of

our country. thanks to our pro-worker, pro-american economic policies, unemployment is at the lowest level in more than 50 years. that's great and we created in a very short period of time a number that nobody would have believed if i ever said it during the campaign, they wouldn't have believed the estimate was $2 million. most you can do was 2 million. we created over 7 million new jobs up until this point over 7 million new jobs. nobody would have believed that real median household income is now the highest level ever recorded, history of our country ever recorded. more americans are working today than have ever worked in the history of our country we're up to almost 160 million people working we have never even come close to a number like that we have the hottest economy on earth. other countries come to see me

in the oval office and the first thing they say is what are you doing with your economy? they try to copy us. many have copied us and it isn't worked so well for them to put it mildly. we are doing better than any country anywhere in the world and it's not even close. millions of extraordinary men and women strengthen our country every day in factories and warehouses, fields and farms, mills and stockyards all across this magnificent land. their work and devotion and drive inspires our people and powers our nation. together we're building a glorious future that is raised, grown and built and made right here in the glorious u.s.a i would now like to invite vice president pence and ambassador lighthizer to say a few words. they worked very hard on the agreement. i will finish off by saying this is something we really put our heart into it's probably the number one reason i decided to lead this

crazy life i'm leading now, as opposed to that beautiful, simple life of luxury i led before this happened but i love doing it, and the reason i love doing it is that nobody in a period of three years has done so much as all of us have, nobody. there's never been an administration that has done what we've done in the first three years. that means we're doing great things for the people of our country and beyond the people of our country. and it's a real honor to be involved and to have helped so many people. and it's an honor to have all of you with us. thank you very much. mike, please say a few words. >> thank you >> that is the president helping put some pen to paper on an important trade deal between the united states, canada and mexico you heard some shout-outs there for fiat chrysler, ford. even referencing new labor protections is that, kayla tausche, the democrats would add

they added, but it does show you the circularity of the trade policy between the right and the left >> certainly carl. this is a deal that has a lot of elements that are not traditionally elements that republican majority in congress would have supported think about the fact there will be mandated wages of $16 an hour in mexico. that there will be higher requirements for the portion of parts coming from north america that will be required to be in some of these automobiles. and the congressional budget office said a lot of car companies will not be able to meet those requirements so they have to pay more in tariffs instead. there are so many net elements that are labor friendly that have been criticized by republicans in the senate, specifically, and other members of the administration but they did what they needed to do to secure those votes to make it a broad bipartisan deal that would have no question it would pass through congress the president talking about how much it will add to the economy and add to jobs, especially in those states like michigan,

where he talked about the fiat chrysler, ford and gm investments, a state that the president won by just .04% and will be critical this year and this deal will add 1.2% to the u.s. economy he said it's unclear what timeframe he's talking about but that's a rosier estimate than we heard from noir officials like larry kudlow, who said about 1 1/2% is what we would see. and the trade commission said 0.35 increase in year six of this being implemented, the lion's share coming from the uncertainty from prior tariffs and hardline trade policies going into these negotiations. unclear where the president is getting that 1.2% numberfrom but many white house officials feel the more they talk about how good the economy is, the more it will in fact deliver on

those results. >> kayla, interesting the president made no effort to ignore or hide the fact that the senate trial is under way on the pavement charges that the house brought as he called out senators, republican senators in the beginning before he began his remarks, pointing out he needed their votes talk quite a bit about the politics around this trade deal, how do you expect that to continue to play out as we head into 2020? >> certainly this is something that -- the policies of the usmca deal were not lost on house democrats who had an impeachment vote and a usmca vote back to back to try to vote they can do more than just investigate the president on this front critically the president acknowledged a lot of these senate republicans are having to take a very nuanced view on what is going on capitol hill, especially with the introduction of possibly new information from the former white house national

security adviser john bolton and a vote about whether bolton and others should be called as witnesses in that trial. president trump in one of the last lines in that speech said, maybe i'm just being nice to these lawmakers because i need their vote, calling out not just those republicans who have publicly acknowledged they have some concerns about what ambassador bolton might say, but also those republican lawmakers who are up for re-election in some of these swing states, like martha mcsally, the republican senator from arizona, jon. >> kayla, meanwhile, as we await the signature of the treaty itself, it comes on a day house democrats unveiled this infrastructure plan for about $760 billion not expected to go anywhere in many circles although the u.s. chamber put out a statement saying it's an important step forward on a path to rebuilding america's infrastructure does anything like this ceremony mean that it gets more traction? >> i don't think so, carl.

i think it's less about the ceremony and more about the deficit numbers we saw the congressional budget office put out yesterday. this idea we could have sustained levels of the deficit in the trillion-dollar range really give a lot of republicans heartburn about deficit spending to fund infrastructure, even as they travel around the country and acknowledge things like bridges and highways and transformational projects would benefit the u.s. and would benefit the u.s. economy but in a year like this with the composition of congress the way it is, it's really hard to see how something like that gets done and it's really hard to see how any level of spending in the realm of what either party is talking about could actually be part of a check that's written right now. >> kayla, we're going to obviously monitor the signing ceremony take you back there upon the signing. that's our kayla tausche outside of the white house we will take a quick break and bring you back to the signing in a moment dow ngg hainon to healthy gains, up 127

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welcome back we will continue to monitor the proceedings at the white house with the usmca signing, and we will take you back live when that signing begins. meantime, our own josh lipton speaking with apple ceo tom cook after earnings last night. josh, tim told you a little something about his home decor to make a point about iphone quality? >> that's right, jon tim cook tells me inside his house there's a huge photo taken with an iphone, which looks every bit as good, he says, as a picture taken with a very

expensive, professional camera and it's camera quality, he says, that helps explain the recent iphone 11 success cook telling me, people love the battery life, they love the camera we also hit the right price with it iphone revenue shot up 8% to $56 billion, surprising analysts cook said the man was broad based with double-digit growth in china speaking of china, cook saying uncertainty caused by the coronavirus forced him to provide wider-than-usual guidance saying you can see from the range it anticipates some level of issue there, otherwise we would not have a $4 billion range. he said he has alternatives to his suppliers in wuhan, which is considered the center of the virus, but said retail traffic is impacted. one store closed and now we know two malls closed as well, which house apple stores services jumped 17% to a record 12.7 billion although that did miss

estimates. on the other hand wearables and home accessories surging 37% cook talking about why he's supply restrained with airpods pro. there are several and they are both at the parts level and production level and we're working to kind of break those but cook said he cannot offer a timeline right now from where he can make enough airpods pro to meet what he calls phenomenal demand for the product guys, back to you. >> josh, yes, great you got to have that conversation as usual with tim cook. what struck me is the guidance with coronavirus, given apple's exposure, potentially both the manufacturing level and at the retail level, i wondered how much uncertainty there would be in there the range that he gave those still satisfied the street, right? >> yes, i think it's so interesting, jon, to your point. there's uncertainty and cook was trying to emphasize it

a lot of people had questions about supply and as we noted cook is saying listen, he thinks he can move production to other what's being called unaffected areas. and on the demand side, that will be interesting. he is seeing impact at retail stores apple spent a lot of time building out that network, 42 stores and counting so it is fluent but the mid-point of the range certainly higher than what many of the industry were looking for, jon. >> on coronavirus and supply, josh, he did say a lot of the suppliers in the affected areas have alternative sources nearby. didn't really delve into how difficult it would be to switch suppliers though and how long that might take. >> yes, and certainly that becomes i think an even more important question, carl, because as we talked about there, certain products, as he says, phenomenal demand. looking at the wearable segments, wearables, home

accessories jumped 47% he could have sold more but he's constrained. he talked about the watch series 3 hoping that comes in and balances the quarter but airpods pro, couldn't give a timeline. you wonder if this virus spreads and how it affects production and his ability to come about with some of these products. >> it's so easy to forget, tim cook, this is the guy steve jobs brought in for exactly this reason steve jobs, kind of like elon musk, was not great on delivering on time and in the right price range. back from his days even with mac, tim cook turned that around for apple. you don't know how a company is doing building a supply chain, operations, redundancies until something goes wrong between that, trade issues, coronavirus, the fact apple has not been shaken, pretty

remarkable, don't you think? >> yeah -- >> actually, got a lot to answer there. got to stop you. we're back with the president, who is at the usmca signing. >> happily standing right behind me thank you all. thank you very much. they're the ones they're the workers. they're the workers. and they're the ones that are going to benefit most by what we're doing. so thank you very much for being here thank you. >> thank you. >> thank you and i would like you to remember that two weeks ago we signed another little deal, our trade deal with china. and we expect to be taking in $250 billion a year in purchases. they will be purchasing so much from our farmers, they will have to go out and buy immediately larger tractors and more land.

i hope they can do it. but the number is the largest number they've ever produced was $16 billion a year i think, chuck, we can say that. joni would say 16 is the number. i called up our great secretary of agriculture, who is probably around here someplace, i said sonny, what's the biggest number, be sonny purdue, he said, sir, $16 billion is the biggest number all right, we're going to make it up. they were targeted, perhaps correctly, china is negotiating. that's why nobody would take it on we're going to target your farmers and every other leader of our current said we will pass our farmers, incredible, but they said the president is doing the right thing. i said what's the number we're talking about? it was $16 billion and $12 billion from the previous year so $12 billion and $16 billion and that was it, the maximum they've ever done. i said you know what we have to do, we're going to reimburse them and help them with $12 billion for the first year, $16

billion, same thing, for the second year and the farmers got through. and they didn't want that. nobody wanted to call it a subsidy. it wasn't a subsidy. it was really a targeting fee you can call it. but our farmers, i will never forget, we had them over at the white house in the cabinet room, 35 farmers they said sir, we don't want any money. we just want a level playing field. we don't want money. i said you know what, i have been president now at that time for 2 1/2 years. i said that's the first time anybody's ever says that everybody wants money, and they don't care how they get it this is the first time they said we don't want money, we just want a level playing field they're the most incredible people and when smflt people from the media -- i will be very nice today -- the people from the media went out to the farms and they went out to iowa and they went to nebraska, they went to all of the different -- many of the different states and they said what do you think about what the president is doing?

they're all -- i don't think i heard one negative, no matter who it was, no matter which network. the farmers would say the president is doing the right thing. this should have been done a long time ago. i will never forget it now the farmers are going to be tremendous beneficiaries in fact, when bob was getting ready to sign the agreement, very close, we were a few days off, and i said what are we getting for the farmers? sir, we have it up to $20 billion purchased. i said make it 50. they said what do you mean, make it 50? remember that one, bob i said make it 50. he said, sir, they can't produce that much. i said they'll find a way to do it i think they'll find a way chuck, if they don't find a way, i'm going to be very angry at you. they will find a way it's true. we had it to 20, more than they ever had done before and i said make it 50 they're going to i think china will be terrific

i think our relationship has never been better. we're very much involved with them right now on the virus that's going around. we're working very closely i spoke to president xi, we're working very closely with china. honestly, i think as tough as this negotiation was, i think our relationship with china now might be the best it's been in a long, long time. and now it's reciprocal. before we were being ripped off badly. now we have a reciprocal relationship maybe even better than reciprocal for us because we have a long way to go before we get back some of the $500 billion a year that we were losing for year after year to china. so we're very honored by that deal, and we're very honored by the usmca. i just want to thank everybody in the audience because almost every one of you indirectly or directly was involved and history is going to show you will be very, very proud of what's happening and very proud of what's happening to our

country. thank you all for being here very much. and i'm going to have the honor of signing the usmca thank you very much. great leaders come up, cabinet members come up. why don't we have everybody come up mick, everybody, cabinet, jared, ivanka, come on up this will be very historic so if you don't -- senators, come on up senators, come on. senators, come on, please come up please come up oh, we're going to take care of the senators the workers understand they get it better than anybody. hi, fellas, great. this is great. and bob, if we could have some of the folks that worked so hard on the agreement come up from your department. come on up

come on up some of them, they just didn't stop they worked long hours, thank you very much. thank you very much. thank you, kevin thank you, roger okay, thank you very much.

>> that is the president signing the usmca, putting to an end a period of sometimes rough negotiations, especially with the canadians. remember all of those threats to withdraw from nafta outright obviously a little rift there on the chinese phase one trade deal that was signed a couple of weeks ago. although, kayla tausche, ag secretary purdue was asked whether he thinks the coronavirus will affect china's ability to make good on those purchase commitments, and said he didn't know. >> yeah, there's still a lot of unknowns certainly the high figures in that deal will be difficult for farmers to produce that much and also for china to deliver. but administration officials say they should know later this year whether it is, in fact, feasible as the president signs this deal, we should note canada also still has to ratify this deal. its parliament came back into

session at the beginning of this week they say it is their top priority to try to move the usmca forward. once canada ratifies it, then this will become law certainly there are many companies that anticipate changes to the a result of that. up on the stage with the president, you see hard hats bearing the logo of marathon order and, of course, the pharmaceutical sector are among the industries that could see the most material changes to their business in north america on the back of this deal there is a deal, bake stop, a replacement for nafta and the deal does not get ripped up is certain certainly, regardless of what any business feels about this deal, that's a positive compared to the alternative. >> kayla, a landmark moment in a dramatic and historic year in washington

thank you. shares up more than 20% in the last week alone. almost 8% today as it looks for a coronavirus drug ceo joins us on the other side of this break. stay with us walkabout wednesdays are back! get a sirloin or chicken on the barbie, fries, and a draft beer or coca-cola - all for just $10.99. hurry in! wednesdays are for outback. outback steakhouse. aussie rules. wednesdays are for outback. - [spokesman] if you've tried colleg(group cheering)shed, snhu lets you transfer up to 90 credits toward you bachelor's degree. - [woman] it doesn't matter how old you are, you can do it, you can finish. - [spokesman] finish your degree at snhu.edu

rising 20% last week as the company looks for a drug right now, we are joined by the ceo of vir welcome. over the past few days, the numbers have been constantly changing as far as what we've seen out of china on infections, as far as what we've seen as needed in terms of drugs how does the situation look to you right now? >> well, it's very early in the epidemic it looks to be quite contagious.

hopefully, it also looks to be somewhat less lethal than sars was, but the rate of increase of the number of people infected inside of china and outside of china is quite alarming at the moment. >> doctor, tell us about the efforts you're putting together at vir you're a young company tell us about the science you're working on there and what you think you might be able to do. >> sure. we have a very interesting, powerful way to isolate ant antibiotanti bodies against a number of pathogens. mab-114, anti-ebola anti-body tested in the congo that seemed to provide protection and therapy for those patients, saving lives with antibodies against zika, malaria. we have antibodies to hopefully

provide a cure for hepatitis b virus. ant respiratory viruses, all strains of flu a, all the seasonless strains, pandemic strains that is currently in clinical trials and we hope it will provide better protection for high-risk individuals and, of course, since it is broadly acting, it could provide protection against the next flu pandemic for coronavirus, we have a collection of antibodies against sars and mers. we've been testing even before this epidemic to determine whether or not they could also inhibit other coronaviruses, anticipating that there would eventually be another coronavirus outbreak we are currently testing our collection of coronavirus

antibodies some of them are capable of neutralizing all strains of sars as well as many strains of coronavirus that have arisen in animals. we're testing the existing antibodies to determine if any of them have activity against the new wuhan virus. we don't know if that's true yet but we will know in a matter of weeks. >> doctor -- >> at the same time we're going back to patients sorry, go ahead. >> world health organization had a presser today in which they talked about potentially reconvening their emergency committee as we try to monitor human-to-human transmission outside of china help our viewers understand in a situation like this, how much coordination is there between companies who are working on this, countries who are working on this versus the proprietary nature of trying to get a win on this and keep it for yourself? >> well, i think there's a tremendous amount of cooperation now. in order to actually identify a medicine and get it to people in

the shortest possible time is going to require cooperation between companies, between governmental agencies, between manufacturers and between regulators so we are in active discussions, as i'm sure other companies are. and the goal here is to get our antibodies to patients as quickly as we can. this is a public health crisis of course, we're a profit-making company. we would like to make money on the things that we do. but we also recognize the potential pandemic nature of this virus and we want to do whatever we can to keep that from happening. >> and, dr. scangos, quickly, can you give us timelines potentially for getting these into human testing or being used in the field experimentally? >> yeah. it's going to take a little bit of time. we will know, you know, if we have something that is potentially efficacious in a matter of weeks if we're lucky,

two to three months if we're not so lucky in the end, we are pretty confident we can identify something within a small number of months that will then take an additional number of months to have that manufactured and get it into people so we're looking at what is normally a ten-month process but again, we're talking with both manufacturers and regulators to see if we can shave some time off that timeline. >> george, briefly, your stock has reacted so intensely to this news over the last couple of weeks. what are you telling investors right now? does that make sensor are people a little overexcited in terms of what they're doing in the stock market in reaction to all these headlines? >> yeah. we're telling investors the same thing we're telling you. we have some antibodies. they may have some activity. we're testing them we are optimistic that we'll be able to find antibodies that have some capacity in the end. hard to predict the timelines.

and that's the story that's what we're doing. >> doctor, thank you for your time obviously, hugely important issue. our viewers appreciate that. meg tirrell who has been working over time this week. thank you. next couple of hours will be eventful as we pivot to the fed and facebook, microsoft, tesla tonight. >> quite a bit. >> let's get back to the judge and "the half. >> i'm scott wapner. front and center, apple aftermath. how the most valuable company on earth might have just saved the market it is 12:00 noon, and this is "the half time report". >> announcer: apple hitting all-time highs on blockbuster results. the number one apple analyst on the street tells us where the stock goes from here the other trillion dollar dow stock, microsoft, getting ready to report after the bell the traders take their position. ge having its best day in more than a year on the back of its numbers. boeing soaring, mcdonald's rallying how to trade them from