>> i think you're right with a dose of salt. truce more in language, indeed. markets are higher based on that. stuart: well-said. neil, it is yours. neil: we're following developments half a world away. two hours forward away. in buenos aires. president sitting down with japanese prime minister shinzo abe. we could get first hints here, u.s. settled trade differences it has, with china, and there are growing signs at the very least, two sides, might agree to forestall tariffs instantly meant to take effect on january one. at least, to freeze them until, and at such point we get progress. that could be a promising development. you will we do know we're down 30 some-odd points, relatively light volume.

markets digest potentially what could happen. any deal struck deemed positive development for the markets. it could go any way what is constructed if anything is. to blake burman at the g20 in buenos aires. blake? reporter: neil, ebbs and flows of this trade back and forth. remember yesterday, 24 hours, less than that, when president trump left the white house left the white house to head to argentina and asked about the meeting with president xi xinping of china and the president said at that time said i think we're close to very close to doing something with klein but i don't know if i want to do it. citing tariff money and i like the deal we have right now. fast forward what we heard from president trump ten minutes ago, sitting next to japanese prime minister shinzo abe, asked by a reporter here in argentina about tomorrow night's dinner, the

president said, if we could make a deal, that could be good. two different answers i guess from the president over last two days. what will happen tomorrow night? we will see after the president sits down and has the meal with shinzo abe. top trade representative, ambassador robert lighthizer asked about this as well. he was here to celebrate the signing of the usmca, president trump alongside justin trudeau, outgoing mexican president as well. lighthizer said he would be surpised a dinner tomorrow night is not a success. saying two leaders president trump and president xi like each other. adding quote there will be positive feeling. that sent the markets up. lighthizer's assessment, keep in mind a positive feel something a very long ways away from a potential deal. so, that is where we stand right now, on the trade front, as there are meetings that the president is going to be involved with through the day, throughout tomorrow as well.

one thing that we noticed here earlier today, did not involve the president, i want to show you video earlier today. as world leaders gathered for the first time. this is moment between vladmir putin of russia, and the crown prince mohammed bin salman of saudi arabia? if we have the video let's go to it. you will see rather unique moment between the two, high-fiving each other. here it is, take a look. those two sitting next to each other, celebrating a moment with each other. what those two could have been talking about, have absolutely no idea, neil. one of the early moments here so far at the g20 in argentina. neil? neil: amazing. i forgot he was there. thank you very much. president president president is not meeting with either of those two, as least as of now. neil: they have to worry about bumping into each other in a hallway. it is what it is. thank you, my friend, very much. this is the last trading day of november. what a crazy month it has been if not for the last week, it

would have been a disaster, right? let's get a read on things, how they're stacking up four hours to the end of the trading day, kristina partsinevelos is here. >> that could potentially change their sentiment heading into the weekend. look at some winners for the dow over the past month in december, or november, sorry. seeing caterpillar. when it comes to trade, they beat earnings estimate. american express on the board. up $8.40. the reason being they announced they would pay a dividend in february. their share price hit 52-week high on wednesday. last but not least, 3m saw success for month of november. even though conglomerate sector saw losses. talk about those losses, some of the losses on the dow for the month of november. you have apple in the mix here. fears of a slow down in iphone sales. general electric continuous

concerns about restructuring company. power business. analysts reports slashing price target for the company. last but not least goldman sachs, investigation, bribery, scandal involved with the malaysian government could persist. that is weighing heavily on the stock. overall for the entire year, we're seeing markets relatively flat. yes, in the green right now. relatively flat. we haven't gone through the month of december. december could pose a lot of risk. why? there are certain events happening. first you have the fact that the g20 summit this weekend, no hose about a potential trade deal with china. you have on december 11th, uk parliament voting on "brexit" deal. continuous progress with that. two things with the fed, december 4th, jay powell, the chairman will discuss and give testimony in front of congress on december 4th. december 19th, will we have interest rate hike. that could change the market. last but not least, opec is meeting and there will be discussions whether there will be production cuts.

all of that could determine if there is going to be a santa rally this december? back to you, neil. neil: kristina, thank you very, very much. more immediate concerns of the market is what happens this weekend in buenos aires and the american president and his chinese counterpart can cobble together construct of a deal to get something going. let's get the read from gary kaltbaum and danielle dimartino booth. there are a couple possibilities, danielle, let me start with you on this. they agreed to move forward, speak nebulously, not with a firm commitment, but that they're making progress. kind of wimpy, but it send as signal. is that enough to turn the markets? >> i think it could be. what markets expect coming out of saturday evening dinner is detente. we'll hold the 10%, freeze the left, not escalate to 25%.

i think that xi xinping is pretty strategic, i don't think he would have allowed the manufacturing number came out at 50 line, our economy is at the cusp of contraction, if we wasn't using data we know officials manipulate to have extra negotiating tactic with trump and save face with his own countrymen and women, saying we're slowing enough for us to have given given an olive branch out to the trump administration. stuart: are. neil: what do you think, gary, i think trade will. they will not be happy. >> i think the world knows this is the main event. if they come out of there with nothing, nothing good is going to happen. i'm in the 9 90% camp they will

have a deal to make some sort of a deal, not add anymore tariffs and smile, make some nice nice. anything less than that i do not think is good news. i watch all of the what i call trade stocks, for when there is good news and bad news. we had better action in the caterpillars, boeings, this week, partly because of the fed, but also as we get to the g20, that could be rolled back if at least something isn't done. neil: danielle, one thing strikes me as amazing most of the 600 plus points have held with today's mild selloff and yesterday's 30 point hit. it held up. that is remarkable. what about you? >> it is remarkable. we held the 10-year yield above that 3% line. there haven't been mad rush flight to safety at the same time. both markets acted remarkably. i think markets are looking forward to next week's

congressional testimony on powell's part to put exclamation point on his recent pivot being dovish in new york this week. neil: if interest rates are still relatively low, surprisingly low, gary, you could look at this and say it's been almost very goldilocks environment to which jerome powell was alluding two days ago? >> let's add one more thing, neil. the crash in oil prices which is a huge expense cut for the consumer, and definitely the business. by the way, new high list today, a bunch of airlines. one plus one does equal two. look, i don't know about the word goldilocks. whenever i hear that, i worry about markets. neil: that is a very good point. it was referring to bears here. you're right. go ahead. >> lower interest rates and lower oil prices are a good thing, unless they are forecasting real trouble. now i will say this, there is some areas around the globe that are already showing it. we've talked talked about this

before, the engine of europe, germany, contracted last quarter. this is something that has to be watched. i think powell did two things, appease donald trump, appease the markets and i will add number three, i think he sees some of this data coming from across the globe. i think probably not a bad move what he did? neil: you know, danielle, we were talking about something that tinkers around the sides with a good trade deal or something even more robust if it's a substantive agreement, that is a stretch, highly unlikely, something very few people are counting on. with would the markets do with that? >> oh, goodness, i think if we were to know the 10% was permanent, 25% was not even a threat, i think, markets are trading right now so flat. neil: right. >> they're not buying anything going into this weekend. i think we potentially see tremendous rally. but to gary's point. we saw italy fall into

contraction last night as well. where i'm sitting here in texas, our manufacturing activity is taking it on the chin, because of this global decline in demand for oil. so, right now what the markets need is some kind of good news in order to hold on to these gains going into this crucial month of december. neil: we shall watch closely. always appreciate your insights. meantime did you hear about the massive breach over at marriott of tune of half a billion customer accounts, half a billion! a the lot of this was going on four years ago. does it ring a bell? hello? after this. ♪ toyland, toyland

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neil: now the fib looking into this data breach over at marriott, we're affected we're told through the whole starwood system, half a billion customers. this actually began in 2014. we are told, at least the company is saying, only came to light, recently, cybersecurity expert. paul, every time we talk you remind me of the fact this kind of stuff happens. something comes to light, oh, wow, this has been going on a long, long time. this makes me wonder what is happening right now that is going to come to light years from now, or what you know,.

what is to come to light that happened years ago? >> you know what, neil, appropriate question, you and i have been talking about this for quite some time. there is no excuse for this. when we take a company like marriott. multibillion-dollar company, we're looking at two things. one, inappropriate manner to protect confidential information. this simply should not be happening. two, we're looking at quintessential model for cybercrime. going after data to be used quantified, over and over, from immediate use to resale value. more than foreseeable. you and i have talked about this several times. for a company like marriott not to be protected, to go so far, not to report it expeditiously, this is no excuse here. neil: one of the thing i think goes on, paul, rewards programs, or are you one of our rewards customers? it's a real hassle, temptation, the carrot always been to

customers, well, you know, you will save some money if you were and are, and i get nervous about that but everybody has these reward programs, become a member. what do you do as a customer? >> well, see that is just it, neil. when we bequeath this information, we lose complete control. you're talking about name, social security number, possibly, clearly your banking information, your credit card information, and what's worse, neil, when you talk about those programs, your passport information. and again, things that we talked about in the past. when you compromise passport information, from what i understand was done in this case, now you have a much larger problem because that can be sold to islamic radicallists and various terrorist groups to replicate, illegally replicate that person's passport. what we're looking at here is much bigger than what they're portraying. neil: all right. so what do we do, paul. i know i asked you this but we

get new wrinkles i remember tare years back, all of that information getting divulged. >> right. neil: are there, short of paying cash for everything, what do you do? >> well, the key thing, neil is to remember this, for all the viewers, your faith will be restored. you have to understand, when you see something like this, we know it, marriott goes back to 2014. if you potentially been exposed, at least for the next six to 12 months you should be checking your credit bureau at least once a month. now some people will say, well if you do that, does that lower the beacon score? the answer to that unequivocally, no. it does if you're applying for more credit cards. if you check yourself, which you can do easily. it does not. checking it at least once a month. that makes sure if someone is replicating, someone using your information illegally, you can deal with it efficiently and expeditiously. that is the most important thing to remember. for those that have passport

information, contact the state department.gov, find the information to verify whether or not you have had anything compromised with respect to your passport. those are two things that should be done right now. neil: thank you, my friend. words to live by there. paul, we'll see what happens until the next hacking attack. by the way, paul and i speaking, getting news on ongoing g20 summit, who is avoid meeting with whom, al-arabiya tv that the president indeed met with the saudi crown prince, and that meeting was deemed to be friendly. there were indications they were going to have a sit-down but they did have a meeting. we don't know how long it was or where in the complex it was. the prince and the president met. more after this.

>> we in the united states need to be very clear, we are entitled and we are right to reject chinese cheating, chinese violation of the rules, rules that don't cover unfair practices. we're right when we're against that. but when our position is, the china can't succeed, and china's not allowed to succeed or somehow wrong for china to succeed, that is an untenable position for us politically and untenable position for us economically. neil: all right. so talk tough but don't get too, too tough. read from former treasury secretary larry summers, "wsj at large" with my buddy gerry baker. that premiers tonight 9:00 p.m. eastern time. so does the president risk going too far in this approach on china? former trade rep under president

barack obama michael froman what happens in things get really bad here. good to have you, ambassador. thanks for taking the time. >> thanks for having me. neil: it's a delicate walk, isn't it. how the president moves forward this weekend. presumably after the federal reserve and that surprise announcement maybe the rate fears will ease a little bit, to complete the picture here he has to score a deal with the chinese. what do you think? >> we, look, i certainly think he has gotten attention of the chinese leadership with his tariff moves. the question now is, is there know agreement? in which case there will be increasing tariffs over time. do they reach a substantive agreement on key issues around chinese industrial policy. is there some sort of process agreement which is most likely out come where they just agreed they will talk, and providing talking there won't be an increase in tariffs. that is better than an escalating trade war certainly, but it doesn't yet resolve fundamental underlying issues. neil: you dealt with this.

prior administrations dealt with this. no matter what the chinese say, you can't stick to them. can't trust them. how do you stick to them staying with whatever they're going to do? >> you need to have very clear rules. you need to organize internationally so the rest of the world are focused holding their feet to the fire on excess capacity on areas like steel and aluminum and you need to use all the tools you have available, taking them to the wto where we brought lots of cases against them. won every case that went to ultimate conclusion. ultimately they do respond when they lose cases at the world trade organization. neil: president is talking, people are talk, you have to be tough, take no prisoners attitude, maybe explains why peter navarro is there, tough trade advisor who wants to push them against the wall, is there a danger or their view seems to be, all else failed in the past, this is the way we have to move

forward? >> as larry summers said on your clip, i think the president and administration is right to focus on issues where china is cheating. the question is, they have their own interests and politics and we have to find a way forward where they can address these issues in a way consistent with their interests. the problem about painting them into a corner is that they have lots of ways of reducing our exports to their market, closing their markets to our businesses. that is not in our interests either. so hopefully there is a pathway forward here, where they can find ways to accommodate the interests, not only of the united states but of the rest of the global economy as well. would i say in the last couple years of the obama administration we were negotiating a bilateral agreement with them which addressed many of these issues, forced technology transfer, enforcement of intellectucal property rights but it would have required a bilateral agreement where u.s. made assurances as well. hopefully the trump administration can pick up on

that and continue that work. neil: a number of representatives of trump administration have responded to that, why should we make any kind of concessions when in fact they have been playing this game, have all the advantages and all the off the chart tariffs not fair. it is there, the obligation is on them to do something. you say? >> i think there are certainly a lot of chinese policies we need to get at. i don't think there is any equivalence what we have versus what they have but getting them to move away from their, stated path that they're on i think is going to be quite difficult. it means making sure that we're finding ways to accommodate them into the international community. the alternative we're pursuing parallel paths in global economy. we're pursuing a path with our technology and they're pursuing their path with their technology. that is a very difficult competition. they will seek to set a international standards. given size of economy, emphasis they put on it, resources they

can put on it, that can be very challenging for us. neil: ambassador, nice to have you. thank you for your time. >> nice having me. neil: we told you a little while ago, apparently the president had a quick meet with mohammad bin salman, the saudi press fingered in the killing of jamal khashoggi, "the washington post" journalist. we also know he had a moment with saudi prince, vladmir putin, sharing a high-five, fist bump. what are the implications of that? these things can happen where you bump into them. this is meeting we're told beyond just the putin and saudi prince exchanged but also the united states president, had a meeting. could have been just a conversation in the hallway. there is no way of knowing but they did meet. larry shiver on all of this. larry, think about it. this comes at a time hearing saudis and russians not so

coincidentally tapering production to increase oil prices. so they're pretty tight. what do you make of this? >> well, at least they weren't riding shirtless on horseback together, it was just a fist bump but that said i think it was back to november of 2014. it is like, i can't make heads or tails what opec is doing, what saudi arabia is doing and my suspicion is the shale industry in the united states has disrupted things so much that both saudi arabia and especially russia, they have to pump when they can and as much as they can. let's face it, opec's taking saudi arabia and saying you have to cut production by half a million barrels a day. we find out two days ago, they're at like an all-time high of levin .1 million barrels a day. it is chaos and chaos is working in their favor and we're seeing that in the market today. neil: do you think the collapse in oil prices rejiggered

everyone thinking there is something bigger going on here, apart from, you know, machinations of production in saudi arabia or russia wherever and everything to do with the whole global economy slowing down? we got weak factory statistics out china today, similarly weak numbers out of japan, europe, key production index headed south, london shoppers index is down. >> yep. neil: you begin to wonder whether there is some fuel to this? >> yeah i think it is partly true and adding to that list you have four countries in europe with negative gdp this quarter, sweden, switzerland, italy, germany but that said, a little bit. i think the strength of dollar hurts emerging markets with price of oil being well over $100 a barrel in their currency but i don't think production has or economic activity has decreased that much to cause the implosion of the oil price. the fact we have turn around season. that will, you know, build inventories. we had 10 weeks in a row.

you have like worst-case scenario being built in, factoring over in iran and eight waivers were given out. and saudi arabia was pumping more than anybody knew. i think it is the new normal and any big rally in oil needs to be sold. don't think economics is number one. neil: do you think, by the way, what is happening with oil is short-lived. a lot of people said it got unnaturally low. it will bounce back. this is all just a fleeting event? >> yeah. i think any kind of rally we have is transitory. right now the cure for low prices is low prices. oldest adages in the commodities market. same exact scenario played out april, may, trading in the mid 50s, everybody is wondering will we fall off the map? is this end of the world? we found buyers that will happen again. we had a lot of financial liquidation. people are moving about all moving pieces, unknowns. i think we see a short-term pop.

neil: we'll watch it closely, larry. thank you very much. have a good weekend. >> thank you. neil: apple was having problems trying to keep up with microsoft and market cap. now walmart, really? what happened? after this. ♪ jardiance asked- and now you know. jardiance is the first type 2 diabetes pill proven to both reduce the risk of cardiovascular death for adults who have type 2 diabetes and heart disease... ...and lower a1c, with diet and exercise. jardiance can cause serious side effects including dehydration. this may cause you to feel dizzy, faint, or lightheaded, or weak upon standing. ketoacidosis is a serious side effect that may be fatal. symptoms include nausea, vomiting, stomach pain, tiredness, and trouble breathing. stop taking jardiance and call your doctor right away if you have symptoms of ketoacidosis or an allergic reaction. symptoms of an allergic reaction include rash,

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neil: at&t is going to take on netflix, streaming service of its very own. that could be a big threat. could be a big dud. deirdre bolton with all the details. >> neil, at&t is addressing two of the biggest concerns about the company, debt and growth. will tackle debt very quickly. get to growth which is streaming. stock is up in part because at&t is cutting $20 billion in debt. the company was carrying

183 billion after the purchase of time warner. investors wanted that reduced. at&t will consider selling non-core assets streaming video company, hulu. at&t talking about adjusted earning per share. it will be higher than what analysts had forecast. single digits, versus 1.7% rise for consensus estimate. investors wanted to hear what at&t is doing to account for losing more satellite tv customers in the third quarter than expected. this is where the new streaming service comes in warner media, meant to compete with netflix, amazon, others. warner media will have turner networks content and hb o content and three tiers. first tier, entry level movies. second-tier premium with original programing. third tier licensed content from other providers. if you look at the stock, how it is stacking up to the competitors in the new arena, a bit unfair not quite apples to apples, at&t is down 20%

year-to-date, look at netflix, amazon year-to-date. both stocks up better than 44%. this is getting more and more crowded field. even apple, for example, signing content rights with oprah and other big well-known producers. so it will be tough sledding for the next few years, neil. neil: to put it mildly. president is meeting with the leaders of japan and india. >> extremely good, extremely strong. with india, may be stronger than ever. with japan, i think stronger than ever. we're doing very well together. doing a lot of trade together. doing a lot of defense together, a lot of military purchases. we'll now have a little discussion between the three of us. so thank you, very much. [speaking in foreign language]

>> speaking in foreign language] [speaking in foreign language]

>> translator: i think this is a very good occasion for our three countries, which have shared values and similar values, japan, america, india, together, we will prosperity, and stability. also happy that both countries are strategic partners. both of them are very good friends. the three countries together, it is a matter of good fortune that we will work together. when you look at the acronym of our three countries, japan, america and india, it is which in hindi is for success. in a way this success message is a good message that goes out. it's a good beginning. together as i said earlier, we would be playing a very big role to work together for prosperity

and stability. >> [speaking in foreign language] >> translator: i'm very delighted to hold the the first-ever japan india summit today. japan and india share fundamental values, strategic interests. that we have partnership and close cooperation and free and open inddo i pacific, by having three of us -- indough pacific. that will bring more prosperity through the region as well as globally. >> thank you. reporter: mr. president -- [inaudible]

>> [inaudible] we might. but we had no, thank you very much. >> let's go back. neil: i believe the president was responding to apparent meeting of prince mohammed bin salman, saudi crown prince fingered in the death of jamal khashoggi, "the washington post" reporter. what we do know nothing happened there of any substance and the president didn't make much hay of it here. obviously talking to the leaders of india and japan, we have economic ties, both those countries closely watching a planned dinner tomorrow night the president will have with chinese counterpart, in their neck of the woods, our two countries getting back on good graces with trade. could have a lot to do with their economies as well. and, in this country, to a lot of consumers who have seen a lot of higher prices as a result of china getting tough with us. to former walmart u.s. ceo on

all of these developments, bill simon. bill, thank you for your patience, listening to the leaders. how important by the way is it, to see a deal come out of this summit? >> oh, i think it is critical, neil. great to be with you by the way. i think it is important, the economy in general is very, very strong. there are a few things that could derail it. this could be one of them. they do need to sit down, get a deal done here, figure out trade and tariffs that could be a big overhang in 2019. neil: your company said, this is very real issue for our customers. sales have been strong, what have you. the longer it lingers. you and i gotten into this before, governments don't pay those tariffs, consumers do. and that could, if it goes own a long time hurt, right? >> well it will hurt in the near

term and medium term. hopefully the, the plan will be in the long term, there is a way to respond to it, in the near term, the costs will have to be passed through. >> what is your sense of where things stand now? when the federal reserve announced a couple days ago, i'm paraphrasing here, we might have hit our kind of sweet spot on interest rates? maybe this is about where we're going to be a while? what did you think of that, the impact of that? >> i think it is also very important, you know the economy, as i said is moving and it is moving forward. there doesn't appear to be a huge amount of inflation on the horizon. wage rate growth is good thing for the economy, not a bad thing. so the federal reserve taking a more neutral posture, will be a positive impact in 2019. if they would continue down the rate-raising path, that would be another one of those things that could derail us. neil: while i have you bill, i know this isn't your immediate concern anymore, but bernie sanders fingered walmart, not

being more generous with the workers, wants across the board $15 minimum wage per hour. how do you feel about the big bull's-eye back and forth on walmart? >> that is political rhetoric. that is old political rhetoric. it might have worked for him a few years ago. it is just not relevant today. wage rate is being driven by the market, not by a politician. companies paying higher wages because unemployment at 3.8%. if you want to fill your stores, your shops, your factory floor you will have to pay more. that is the right way to see starting wage go up, not with legislation. he can say what he wants to, companies will pay what they have to fill their, staff their businesses. and any ceo who bends to pressure from a politician probably won't be in their job too long. neil: jeff bezos, kind of did, right at amazon? >> i think he wanted it to

appear that way but he is smarter than that he realized he would have to pay that anyway, probably took credit for it. neil: okay. real quickly, back and forth on market valuations everything else, apple went from the first trillion dollar company, to a lot less than that. microsoft passed them. you're on the verge of passing them. what do you make of that? >> a lot of score keeping for a game that really doesn't count. what you want to look are they growing on the top line? are they growing and delivering on the bottom line? are they rewarding shareholders? those are all pretty good companies. the outlier is allison, probably not delivering a robust bottom line as others but they have got stronger top line. so you know, we'll see how it all plays out. that is one of my questions, neil, what does it look like when it is over, when it stablizes, when it ends? you can't deliver 20% growth on the top line forever with, you

know, fairly modest bottom line. what does it look like for amazon when it is over? what sort of an investment that will be? same with walmart. walmart invests substantial amounts of money to become a player in the digital space as well as the physical space. what does that look like when it is over? neil: what does this economy look like right now? it is not over. a lot of people hope that it doesn't end, what do you think? >> i'm optimistic. as i said, i think, the consumer is strong. we are consumer driven economy. as long as consumer remains strong and confident. there is a lot of things derailing us. heading into presidential cycle. overhang from tariffs, from the trade negotiation. from the mueller investigation. fed doing what the fed might or might not do. all those things could change where we are now.

like trajectory we're on. i'm optimistic some shock to the system the. we'll stay on that trajectory through the end of the year. neil: you mentioned the mueller investigation, if this ends up like a watergate and we're along way from that, all bets are off, right? >> it is hard to say. i think you will have to find some real hardcore evidence. doesn't look like there is any, i don't know. my guess is everything else leaked f there was anything it would probably be out by now. there will be some sort of innuendo or behavior that we're not proud of, but i don't know if that is enough to be the shock to the system that i was talking about. neil: bill, great catching up with you, hope you have a merry christmas. bill simon, former walmart ceo and president, and big cheese out of florida. we're finding out more about this. i don't know if it was meeting the president had with mohammed bin salman.

we're toiled they exchanged pleasantries. that is it. it was not a sit-down or extended discussion. enough with making a big kerfuffle out of it. are so they hope. i am a family man.

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neil: all right. after yesterday's plea deal in the mueller probe, a lot of folks are saying michael cohen

could be tipping his former boss into, well, some real trouble, legal trouble. that's really in the eyes of the beholder. let's get the read from charlie gasparino. we do know this much. it's all about the business deals. >> right. i think it's convoluted with business and politics, because trump was obviously, according to michael cohen and even himself now, had a two-track -- he was doing two things at the same time. he was running for president, winning the nomination, and looking to cut a deal in russia with the russian government, with operatives in the russian government to do the trump moscow hotel. neil: never came to pass. >> never came to pass. they got out of it. couple interesting things. the walmart ceo, great interview. really cracked me up on the bezos comments. where he was wrong is on mueller leaking. mueller does not leak. okay? what we know about the mueller probe generally is gleaned from people who have been interviewed by mueller. neil: i think he's also saying we know nothing i've seen -- >> that's the problem. he hasn't seen it.

we don't know what he has. i can tell you based on some of the things -- neil: what if it's morphing into business deals? >> if you look what he's doing, he's going after roger stone, wikileaks, russian -- the russians giving wikileaks information on podesta's e-mails, roger stone had something to do with that. at least that's what he's investigating. he's looking at the business deals where it's one big russian melting pot, so to speak. but the interesting thing -- neil: business thing got into the political stuff. >> they have been doing this for a long time. months ago, a guy i know, source of mine who was interviewed by mueller's people, both in front of the grand jury and directly by mueller's people, so he did two, they asked a lot of questions, they asked him a lot about russians owning apartments in the trump tower. you know, they asked -- did you hear a lot of russian being spoken up in trump tower. clearly what they think is that trump has this long-standing business arrangement with

russia, it's one hand washes the other. they may have helped him on the campaign. guess what? maybe russian oligarchs, people looking to launder money, were doing it by buying apartments up there and he helped arrange that. neil: still a lot of them up the street, right? >> i'm not saying that's what happened. i'm telling you, that's what they're looking at. neil: we shall see. thank you very much. we are getting word that they will talk about job cuts that have really ticked off the president of the united states. we don't know how that will go. we do know there's some explaining to do. [ phone rings ] hi, tom. hey, how's the college visit? you remembered. it's good. does it make the short list? you remembered that too. yeah, i'm afraid so. knowing what's important to you... it's okay. this is what we've been planning for. thanks, bye. that's what's important to us.

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yes, we'll be meeting tomorrow. we have already spoken and we're working very hard. if we can make a deal, that will be good. i think they want to and i think we'd like to. we'll see. neil: all right. we'll see. maybe tomorrow night there will be at least the construct of a deal. who knows, maim ke or break mom for the president of the united states and xi jinping to settle differences and move forward on the trade front. both of their economies are at risk here, according to a lot of folks, if they don't. more so for china, the president says. we shall see. i do know this. liz claman is there right now in buenos aries. she will be hosting her fine show from there. liz, what kind of sense are you getting about all this? liz: i'll tell you something,

neil. if you have a thesaurus would the word feeling be able to be switched out with dealing or agreement, i don't think so. that's the one word we got from the u.s. trade representative, ambassador lighthizer, today when they were signing, when all three leaders of canada, mexico and the u.s. were signing that usmca trade deal, sort of the nafta 2.0, and i specifically asked in a gaggle the media was able to have with lighthizer right after, i said what about china now? let's spin it forward. what about tomorrow night and how much substance could you really get in a dinner party, because it's not just going to be president trump and president xi. and he was very specific in saying i would be very surprised if the dinner wasn't a success. then he said i believe it will end with a very positive and he paused and he said feeling. so i don't know about you, neil, but you talk about feelings versus an actual agreement, could be very difficult. neil: you know, then you have to wonder how the markets react to

positive talk but no firm deal. because we have been to that altar before. what's your sense from the people you talk to? liz: the people i talk to say it's all about perception right now. you have to watch the body language. i know you were just talking about all of these questions about greeting during the so-called family photo. god forbid somebody get something in their eye and blink and get accused of winking at another world leader. it's like that. everyone is watching every single body detail and movement and twitch. but i do believe that that will be the most important, most focused upon meeting. everyone from american farmers to european car manufacturers to chinese importers of united states goods and the way it works the other way. the assembly lines in america may say made in america but some manufacturing always manages to touch an assembly line in china, so everyone is on edge about this meeting. neil: looking forward to it. looking forward to your show

beginning from buenos aries just two hours from now. thank you, liz, very, very much. by the way, you are seeing a lot of these meet and greets and they are quick sort of sit-downs for photographers and the like. the australian prime minister is going to be in that situation with the president of the united states. when that happens, we will take you there. meanwhile, we are ending the month down and if you were to have scored this month prior to say last, i don't know, wednesday, it would have been a very different month. market watcher's joe duran and had it not been this week for the federal reserve's sudden about-face, that's the way to put it on my part, we might be looking at a very different month and maybe a very different year. what do you think? >> i totally agree. i think the two things that have been hovering over the market and casting a shadow over its advance is trade, obviously. maybe we will have some resolution around that, to speak of next week, and of course, the federal reserve and its policy. we saw that in late january and

of course, the comments that came from jay powell on october 3rd didn't necessarily precipitate the decline, which had already peaked on september 21st, but probably amplified it as concerns to what policy path might look like on a go forward basis are now walked back and the market tacked on at least some of what was taken away. we have a little more feel around the federal reserve. wait to see what happens around trade. neil: it's interesting, you could flip it around that jerome powell put the pressure and the onus on president trump to deliver the goods and remove the uncertainty on trade just as powell had removed the uncertainty on interest rates. what do you think? >> i think this trade thing is really big. we don't need an agreement. we just need the outline of a deferment of the increase that is due to start january. if we go from 10% to 25% tariffs, that's going to be a big deal. it's going to be a big deal for the stock market and it will

cause an upwardly biased natural market we would have the next couple of months -- neil: in other words -- i'm sorry, my friend, but just to be clear, if the two agree look, we'll hold off on those tariffs until whatever, that that would be progress? >> it would be massive progress and it would remove at least in the short term the biggest cloud hanging over the market. that doesn't mean next year is going to be automatically great but it removes at least for a period of time this concern about this big increase in tariffs that would affect earnings for everybody. neil: all right. i come from a slightly different point of view, which means don't bet on it and by all means, listen to joe, that it's so baked into the cake, this idea we might push off the tariffs that that might not be enough to satisfy the markets, that they're going to have to see more than coy words or flowery

talk or vague promises about resolving differences. this has been dragging on. they will want to see something much more specific. that's my read on it. what do you think? >> i think market participants have been hardened a little bit recently as we have seen this trade on, trade off scenario operating now for some period of months, where people talk a good game and nothing ever gets resolved at least tangibly. my concern is that hope is running awfully high going into this dinner and if we come out of the other side of it with some verbal agreement to do something, i'm not sure that's going to be enough. i think we need some crystallization around what this is likely to look like or what time frame it's likely to be resolved. otherwise i think the market will be disappointed. neil: i'm thinking, too, of other presidents from barack obama all the way back to george bush senior, who had cobbled together deals and promises on the part of the chinese only to see them break it, in the case of the obama administration, eight months after a large, you know, technology agreement had been scored.

so we do know that the chinese have a past of cheating and of lying. i'm not saying we're always saints but that's their record. so we have to be circumspect, right? >> we do, but as investors we have to look at where we are in the market cycle and this november to november period in the third year of a presidential cycle is the best period to invest through the history of the stock market. the average return is 17%. that's a natural inclination of the market from december to january -- to december, it's about 7%. it's still by far the best year. i think again, that doesn't mean we won't see volatility. the biggest issue for the long term is qe and the amount of liquidity being sucked out of the market that is causing risk assets to increase in volatility. that's why you see credit spreads widening. it's why you see emerging markets going down. there's a lot less liquidity not

just from the u.s. but europe as well. if we can remove the trade there's a lot of momentum that will help us for the next few months. neil: joe is referring to quantitative easing, of course, became famous after the meltdown where the federal reserve flooded the banking system with all the money they needed at 0% interest rate. that was then. a whole different environment. now i'm wondering, having said that, with the fed having done what it did this week to signal that interest rates are kind of in a zone that is okay, then i start wondering, they did that because they see the economy slowing down. am i safe in making that assumption? wouldn't that worry you? >> well, it would. i'm not sure i got quite that far with it, though. i think what they said was they are approaching at least what is the lower range in the estimate for the neutral rate, which suggests to me two things. one, we don't know yet that the neutral rate isn't still considerably higher than where it is right now. neil: i hate to jump on you, but you are being upstaged by the

president of the united states meeting with his counterpart from australia. >> -- anticipate having a fantastic relationship always with australia. i know you have done a fantastic job in a very short period of time. you have done a lot of the things that they've wanted over there. that's why you're sitting here. so i congratulate you. it's an honor and we will be with australia and you all the way. thank you very much. >> thank you very much. australia and the united states have always been the grandest of friends, not just in strategic cooperation but economically. >> thank you very much, everybody. thank you. appreciate it. we are going to be talking. thank you.

neil: i never say never with those things. just at the last second someone will squeeze in a question but the president with the leader of australia. we had the former prime minister on yesterday saying a lot hinges on this. australia does a lot of business with china, big commodities business back and forth between the two countries. australia is their biggest trading partner so obviously they have a vested interest in seeing the talks go well tomorrow night. stay with us.

neil: all right. now the fbi is looking into this marriott hack, that engulfed half a billion customers of marriott and the parent starwood organization. hillary vaughn with the latest on this. reporter: this data breach is now the second worst cyberattack we have seen in the past decade. with half a billion people's private data getting violated and it's getting the attention of regulators. new york's attorney general is opening an investigation and on capitol hill, people are taking notice. senator mark warner is calling for a cybersecurity crackdown on companies in response to this. marriott says the breach affects

guests that made reservations at a starwood brand hotel on or before september 10th of this year. marriott says hackers got their hands on guest information related to reservations at their starwood properties as far back as 2014. starwood and marriott merged under the marriott brand, but the breach affects just the starwood hotel chain. the group represents many popular brands including the westin, the sheraton, w hotel, st. regis. the ceo issued an apology for failing to protect its guests' private information, saying we are devoting the resources necessary to phase out starwood systems and accelerate the ongoing security enhancements to our network. marriott says hackers got access to personal information so that includes names, mailing addresses, e-mails, phone numbers, but even more private information, like your passport number, stay preferences in your profile, arrival and departure information, even financial

information that was encrypted like credit card numbers, expiration dates. those were encrypted in the system but hackers could have also got their hands on the keys they need to decrypt the numbers. that's why that's a big problem. marriott says their system flagged the breach on september 8th but their investigation showed that someone had been grabbing data from this data base for years. so they are trying to figure out why they just discovered this a few months ago. marriott is sending out e-mails today to about half a billion starwood guests that they believe were caught up in all of this. keep an eye on your e-mail. they also opened a website with more information for anyone who has been a victim of this data breach. neil: thank you, hillary vaughn. exactly what information did these hackers ultimately get? let's get the read on all of this with david kennedy, the cybersecurity expert. david, good to have you. >> neil, thanks for having me on. good to see you again. neil: same here. what do they have in their hot little hands? >> well, this is a hard one because they had access in 2014,

that's four years, and half a billion records, right? so if i had access to a network for a couple of weeks i could usually have access to pretty much the entire infrastructure and everything they do. this pertains to the reservation system but it seems like a lot of information that's coming out shows that this is a very early stage of investigation and as we saw with facebook and yahoo! and a lot of the other ones, lot of the other data breaches over the past few years, including target, jimmy john's, home depot, these have a tendency of growing much, much larger. they have had access since 2014, it could have been a lot more systems that touched the starwood hotels and even possibly to the marriott locations. so you know, right now it's date of birth, home address, names, the big piece here is if you look at the target breach which was 20.2 million credit cards, they are saying half a billion people were impacted by this and they can't rule out that they had access to encryption keys, this could be larger than the target breach we saw as far as credit card reissuance. the one point to point out is we haven't seen any of this

information being sold on the black market yet and that is very, very unusual. neil: i wonder, though, does this also involve compromised passport data, who is to say the various elements haven't gotten that and are flying around to their heart's content? >> that's the weird part about all this. when we see a breach like this, that information is very quickly put up on the underground market and sold into different batches to make money off of it. if they have been breached since 2014 and we haven't had any notifications for this, we don't know exactly who did it but it doesn't appear to be organized crime or they are using methods we haven't been able to detect before. so you talk about reservation information, where you stay at your reservation history, your preference of different locations and when you are staying at those. we could be looking at a lot of different scenarios for who wanted access to data or someone on the inside selling this information now that the fbi is involved. there's a lot of variables right now that are pretty alarming. neil: thank you very much, my friend. good catching up with you even though the circumstances aren't

good. the saudi prince, say what you will of him, but world leaders do greet him and in the case of ours, they passed in the hallway we're told. in t one president high-fiving him. after this. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade.

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together we'll make the right choice. neil: all right. exchanging pleasantries, that's all it was. that was vladimir putin and the saudi crown prince. the president of the united states bumping into him, we're told and that was it. that was all. to the daily caller, these things can't be helped. they try to go through all sorts of hoops to avoid that but it happens. what do you make of it? >> the awkward interactions between world leaders is one of the most -- one of my favorite things to watch. and watching the crown prince of saudi arabia and how people interact with him after he's been attacked by most western leaders because of the killing of the journalist, leads to a

lot of awkwardness but russia and the saudis have a lot going on. russia wants to increase oil output. they have got a big deal coming up on that. they are selling a lot of oil to china. saudis want to pull it back. with opec meeting next thursday they want to say let's curtail this and both of them, at least mostly the saudis, want to make sure president trump doesn't get angry if they mess with the price of oil too much. neil: i also won dder whether t orchestrated fist pump might have been for the public to see, not to be jaded or cynical. we have other friends, america. what do you think? >> i think that's a pretty good theory. it was a pretty funny moment to see them there, putin seemed pleased with himself. they really seemed very chummy. anything that they're doing on the world stage is like you said, literally on the world stage. everyone is watching. it's a great time to send messages about who you are friends with and who you're not. neil: let me ask about the cohen

dust-up and the concern here, that michael cohen, the fixer, has now got his old boss in a fix. do you think there was anything there? outside of the fact that you have his top lieutenant talking to the russians about doing a business deal in moscow that was telegraphed even, you know, in the president's book going back, you know, many, many years, doing business with russia, but he ultimately didn't and ultimately failed to get that tower built in moscow and ultimately didn't go there to close the deal that never happened. i know what they're trying to connect, there's a possibility if your people are over there, there are other political things going on because he's running for president at the time, but what do you think of this? >> to your point then, why didn't it happen? fit was actually intended as some kind of illicit deal or bribe, why didn't it happen? michael cohen lied and he's in trouble for it. he's had to plead guilty for it. the problem here is i have seen some analysts on other networks

saying president trump might not even finish out his term now because of this kind of information. you see democrats really overreaching in some areas, a lot of newspapermen overreaching, saying this is conspiracy. i don't see conspiracy. i see something, a business deal that doesn't have great optics, doesn't look great for the president and might send his old lawyer to prison but there's no conspiracy with russia that's been proven yet and that's a serious overreach. neil: where is this going, though? again, having read "the art of the deal" decades ago in which he talks about trying to set up something in russia, his conn fondness for the country, he and ivana, his first wife, going over to see if this is the one final part of the kingdom they can add. i know what he said when he denied any russian business, he was talking about i don't have any russian interests. that's how he tried to parse that. but is that going to haunt him, that people will start looking at deals he was scoring and that what mueller is trying to get to

might not have anything to do with russia so much as shady business dealings? >> well, the president would spend a long time in global real estate and construction and that's not an industry run by the boy kouscouts. he's doing this internationally. a lot of shady deals go on. that's probably one of his vulnerabilities, he's going to have with the democratic congress coming in, because the investigations that go into the white house, he can do what president barack obama did and just refuse subpoenas and ignore republican investigations and let them scream and yell. but if congressional democrats start really digging into his business operations, he's got a massive and complicated international business empire, you can find things in that and you can make life very difficult for the private citizens who run it for him and an embarrassing time for the president. neil: wouldn't that be a kick, though? i raised this with other guests. in the end, much like the clinton investigation veered wildly from real estate deals to an intern, that this goes from russian collusion to just some

questionable business dealings because almost everyone who has been indicted or is on their way to jail, it's about those type of transactions, having nothing to do with russia and everything to do with either something quirky or outright illegal, and in the end, just shady. not russian related. >> it was funny to watch in the last midterm elections about two weeks before, the democrats suddenly remembered that they should have been talking about health care and jobs, and not just talking about investigations of president trump. so to your point, i think the investigation just like the republican investigation of clinton, is probably going to veer wildly off course. it's not going to end anywhere near the original allegations which were actually troubling but turned out to likely be false and it's not going to be good optics for democrats trying to run in 2020 on a platform that is something other than we don't like donald trump. they should be talking about jobs, about the economy, about trade, about health care, and if

they spend all their time attacking the president, that's not going to win them back voters they have lost. neil: thank you very much. we are way early into this here and we have been parsing this. chris bedford, thank you very much. much of that on the cohen stuff, whether or not you like the president and his business dealings, he has a decades-long history of trying to do business in russia and oddly enough, it was one of the few countries on the planet where he didn't succeed at doing that. now, if you take at face value some of the comments he was making that he was running for president, you could make the argument that he didn't think he had a good chance so he's hedging his bets and continuing to do deals. he did say he wasn't doing that when it turns out it's possible that he was. but in the end, no deal, no tower. so no smoking gun? after this. this is a tomato you can track from farm, to pot, to jar, to table. and serve with confidence that it's safe. this is a diamond you can follow from mine to finger,

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neil: all right. we are now looking at tsunami warnings in effect after a 7.0

earthquake struck near anchorage about 20 minutes ago. the national tsunami center is already telling fox news that all of cook inlet is under what they call a tsunami warning since this all happened there, asking everyone living in that area to head to higher ground. we are evaluating this threat to the washington and oregon coast. so far, there are no -- they are not under, these other locations are not under the same tsunami threat. keeping a very close eye on this. this was originally reported as a 6.0 magnitude quake, now up to 7.0, at a depth of about 17 miles, 10 miles north of anchorage. we will keep you posted if we learn any more. meantime, we are following what's happening in buenos aries, argentina right now. the president is going to leave after today's events shortly but tomorrow's the big night where he's sitting down with his chinese counterpart, xi jinping, and maybe tries to cobble together even the construct of a deal. for a lot of farmers, it

couldn't come a moment too soon. soybean farmers in particular have been walloped by this trade quagmire. jeff flock is live from a s soybean farm in illinois. hey, jeff. reporter: i tell you, this is something they have never seen before, these grain elevators. those white tubes you see, a football field long, they have got so many soybeans because of the drying up of the china market, they don't know what to do with them. they are just trying to save them. take a look at the numbers. china exports huge market, well, it's now down by 97%. almost the entire market, gone. that is because of this retaliatory tariff the chinese market has gone away. we talked to the guy that runs this grain elevator today about the situation. listen. >> china's going to be the market. china's going to be the market and they finally developed and it was there, it was a great market for us, great solid

market, and now we're playing with fire with this. when you back someone in a corner, they find ways to source it from other producers. reporter: they are doing that, neil, sourcing it from places like south america and there's a fear, of course, that the market never comes back. here's the other interesting thing i got to show you before we get away and we are getting real muddy here to have it happen. because of trying to store so much soybeans they have had to store corn outside, in huge bins like this one, and when you store it outside, particularly for a long period of time, it starts to rot. so we have got crop rotting. i don't know if i can show you, if i dig down here, this is typically corn. look at that. can you see the smoke coming off of that? if i stick my hand down in there, that's hot. this stuff is no good. this is rotten corn. this is about $2 million worth of corn or it would have been. they are frantically working to try and get this basically, you

know, to save what they can of it. typically, everything would be in the bins because we don't have a market, you know, we got them laying on the ground, we have them in bags. they only hope there will be some sort of deal. hope i can wash my hands later. neil: you know, what i like about what you did there, we are so focused on tariffs that will go into effect and consumers could pay more for them, all of that. farmers are already feeling it. their goods are priced in the open market and they have been tanking when the chinese stopped buying. this is their lifeblood. reporter: if you are upset about a trade deficit, you know, that's a valid thing to be upset about, the president i know is, well, it's just gotten worse because this was the bright spot. this was a trade surplus. trade corn and soybeans with china, we were making money on that. right now, that market's dead. neil: brilliant. you are exactly right. jeff, you put it in terms real

salt of the earth people can understand. thank you very, very much. i want to get the read on all of this from our former ambassador on this. and what he makes of this right now, because if you think about it, ambassador, what's going on now is very, very real and this is something that's not going away, that farmers are feeling it because a big customer for their goods just isn't showing up, china. so obviously, ahead of tariffs, this is the reality. right? >> well, we are using tariffs as a weapon in advance of negotiations and so we are using, we have weaponized trade. we have done it with the canadians, with the europeans, and with the chinese. there are consequences to this and we are starting to see them. neil: what i wonder is, the president will argue when it comes to canada and mexico, he got what he wanted, they signed an agreement today. no guarantee that will be written off by congress but

having said that, that the end, the president will say, justifies the means. what do you think? >> i think absolutely not. first of all, if that was the case, he would have taken steel and aluminum tariffs off today. so he's weaponized that against the canadians and they have responded in kind in a lot of ways, where farmers like that are being impacted. but we have impacted the relationship so deeply. it's unfortunate, because we now have polls across canada where the attitude toward the united states is the worst it's been maybe in the history of the country. so we will have to do a lot of work to repair the damage that was done. neil: a lot of folks in the trump administration say well, if that's what it takes to eventually have fair, free trade, we're not being hosed, so be it, you say? >> well, in canada we had a trade surplus before going into this, 99% of all the trade we did had no tariffs whatsoever. and now we have tariffs on steel and retaliatory tariffs.

i would say in canada i know so well, that was a fight that was wrong. i mean, in the steel and aluminum, we have a trade surplus in steel and are imposing tariffs for national security. the prime minister addressed that today very directly, like come on, we have got a deal, we are your best friend, we are your next door neighbor, we do so much together, what do you still have these steel and aluminum tariffs on. if it was to get a trade outcome, we got it, but we continue to do this. i just think it's unfortunate. neil: i'm just wondering with china, because you made the argument the real problem is with china, and it was upside down to go after canada or mexico or even fight with the south koreans. leaving that, it is what it is, but the markets seem to be pinning their hopes on something coming this weekend, the dinner tomorrow night. you know how these things are done. they might have already put something together and the pageantry of tomorrow night seals the deal. what do you think? >> well, look, i'm hopeful we at

least delay the implementation of the next leg of these tariffs so we can find a constructive path to agree to an outcome. the chinese are very different from our allies in europe and in north america. they have been stealing a lot of our proprietary information. they have been forcing us to split our company values with local state operated companies so as a result of all that, i don't think it's been a level playing field, and i think the president's right about that. but what we need are allies to all come together with us and we have been poking our allies pretty good, and so now we need all of them to come together to help us with china and i'm not sure they are going to be as enthusiastic in doing that. neil: that might be an understatement. ambassador, thank you very, very much for taking the time. i want to give you an update as we were chatting here, we are getting a few more details about this earthquake in alaska about 18 to 20 miles north of anch

anchora anchorage, alaska. police are telling residents to head to higher ground to be on the safe side amid a tsunami threat that continues. also looking at washington state and oregon but so far, they are under no such immediate threats themselves. but this quake could have extended to their areas. more after this. won't replace the full value of your new car? you'd be better off throwing your money right into the harbor. i'm gonna regret that. with liberty mutual new car replacement, we'll replace the full value of your car. ♪ liberty. liberty. liberty. liberty. ♪

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neil: all right. we are still focusing on this earthquake, with the preliminary magnitude of 7.0 that struck near anchorage, alaska. alarmed a lot of residents, apparently a number of office workers felt it, saw it. lot of them plunging under their desk trying to get out. residents have started reporting damage via social media. "usa today" is reporting one man was showing a photo of his toppled chimney on a television station that was apparently filled with debris. the quake struck at around 8:29 a.m. local time. this was anywhere from seven to ten miles north of anchorage. the national tsunami warning center, though, nearby issued a warning for coastal areas of cook inlet and southern kanai peninsula in alaska. it is limited to those areas. now, alaska has had a number of problems with this sort of thing in the past but this is something that has been particularly strong of late here. again, a good deal of damage reported and a good deal of buildings that have been

reported partially destroyed. again, out of the anchorage area. but again, that's about all we have, this national tsunami warning in effect urging folks in lower lands to move to higher ground. all right, in the meantime, we are focusing on other developments like the corner of wall and broad where stocks ticked up on reports that a chinese official is saying a consensus could be steadily increasing in trade talks. dave, if that isn't yet another sign the markets sort of pegged their hopes on trade, they are down when it doesn't look up and up when it could potentially look good, what do you think? >> i think that's right, neil. look, the china trade to me, that's where the action is. the rest of, you know, the sab , erat willing and today's announcement about the mexico and canada thing, that's a side

show and has always been a side show. you have the world's two dominant superpowers whose economies are structurally incredibly different, and who is frankly their kind of business, ethical, moral values work differently. not saying who's better or worse, they're just different. that has to be reconciled at some point. the only thing i would say about this business about hey, we're having dinner tomorrow night to reconcile our two wildly different economies and philosophies, that seems a little overoptimistic. but if you could imagine tomorrow night being the beginning or as chairman mao would have said, the first step in a journey of a thousand miles, that would not be a bad thing. neil: you know, though, i always think the drama is a little too structured here. a deal might already have been scored at the ministerial or lower levels and it's just going to be finalized on the part of the leaders tomorrow. i could be wrong. either way, it would be something, i imagine, the markets would like assuming it has some teeth to it. what do you think?

>> i think your teeth question is the real one, because it seems to me that that whole technological intellectual property theft thing, which is -- that's a big deal. to me, like that is one of the biggest. we can slap tariffs on industrial products but as we, you know, reading in some media outlets this morning, clever companies are moving that production around asia, so it's kind of like that's like whack-a-mole with trade. but this core notion of we're competing in effect with china on the frontiers of technological knowledge and development, and right now, they play, they do not play by the marquis de queensbury rules. they take what they want, they insert tracking devices. to me, that's where the action is. and i don't -- what i don't understand is there's no good way to say okay, well, we wrote it up, we promised now, we

promise not to insert devices into your telecom switching equipment to measure and track all this stuff. so it's not -- i don't see it as a treaty-able sort of thing. it's like it's a bigger, tougher issue than that. neil: all right, thank you, my friend, very, very much. we are getting a couple more details coming into this us out of this earthquake, the powerful one that has rocked anchorage, alaska. this happened 8:29 a.m. local time, which would be about 12:29 p.m. eastern standard time. some of the pictures and images we are getting are showing apparently some substantial damage to the area, not much more than that. but again, it's way too early to tell. this tsunami warning in effect in the entire area and residents are told to seek out higher ground. we will keep you posted.

. neil: all right. images are hard to come by at least directly to us here, but there has been a major earthquake that struck anchorage, alaska, with a tsunami warning issued as a result. this went down at 8:29 local time in the anchorage area. and it, that would be about 12:30 east coast time. and right now, we're looking at images not only in newsrooms and buildings where there are shattered walls, what have you, a number of structures have been severely impacted, including a number of highways uplifted,

including one that connects anchorrage with vasilla, alaska, along the coast, seems totally impassable from early images residents are passing along to me. this is in a cbs affiliate in anchorage i believe. this is what we're looking at. you can see considerable damage. anything can happen with this tsunami a growing threat. the weather service advised those in low-lying areas seek higher ground. neil: including cody yak island, in the vicinity. this does not extend to likes of oregon and washington state we're told not similar tremors. if you know about alaska, get

tremors and a lot of earthquakes, more than the other 49 states in the country combined. they're never as severe as this and never pet the notoriety and attention. this is much stronger than was originally reported. they're alerting all children in the anchorage school district, to be safe. parents pick them upwhen they're able. residents in fairbanks, 350 miles from the epicenter and felt a lot of shaking but seems to be centered in and around the anchorage area. we don't have reports besides some of that damage you can clearly see here. we'll keep an eye own it here. also keeping an eye on on going g20 conference going on in argentina right now. with us, the former deputy national security director,

advisor to dick cheney, stephen yates. stephen, much is made what will happen with the meeting tomorrow. meantime there are meetings unplanned, you bump into the saudi crown prince or the saudi crown prince since the l -- sits down with the russian leader and think get undue or disproportionate attention. you can't control that, can you? >> no, you can't. that is what makes the multilateral meetings interesting. usually they're pretty boring affairs but because of these bilateral relationships right now this is interesting. plus the president is traveling in his delegation with pretty important people with ambassador bolton and secretary pompeo. i'm sure they're doing a lot of diplomacy on iran and north korea and other important issues. i'm sure there is plenty of things being discussed but although the spotlight is on president trump. neil: which in the media fall

prey to the expectations build to the point where something is going to happen, right? even the broad construct of a deal or we put off tariffs offer sanctions or any of that stuff, as if that will mean a deal is imminent but what do you think? >> oh, my sense is that at most we should have aspirational expectations for this. setting something in motion is highest bar to cross. so much work to do on china with any kind of agreement. i don't think it would be wise to expect big movements out of just a simple meeting. neil: stephen, i'm always reminded, maybe you were the guy to remind me, other presidents when we dealt with this, democrats to republicans, chinese can say one thing and not stick to that. gets to be the old reagan thing, trust but verify, right? >> absolutely right. there is a lot of strain in our economy in some areas about this but the chinese are facing a lot of strain too. but they want some appearance of

some forward movement. the president is committed to this his whole life. this is not just a campaign issue for him. neil: how do you think it all ends? >> my sense it doesn't end. this situation will be managed more than solved. if the president were to make a deal, i do think it would be in a room where someone like peter navarro is present so it conveys to the other side this is unified team approach. so it is not one that the president walks back when he goes back to consult his advisor. i still don't think this is a breakthrough time. this is setting some things in motion. we have a whole re-election campaign to go through. politics will play a role how this plays out. neil: thank you my friend, very much. stephen yates. we're getting confirmation in anchorage, the ted stephens international airport has been evacuated, shut down as a precaution. we do know major damage happened in and around the anchorage

area, magnitude 7.2 earthquake rattled that area and surrounding areas and they have a tsunami warning to deal with this is cbs affiliate that suffered substantial damage. we haven't heard anything more in terms of injuries and worse. we'll keep you posted. here is charles payne. >> thank you, neil. we certainly will. good afternoon. i'm charles payne, this is "making money." coming up a big show. president trump opening up the trip to argentina with series of high-profile meetings. all eyes are on it. big issue upcoming dinwer china on trade. we'll break all of that down for you. the markets in anxiety mode, waiting what will exactly happen between these two presidents. but we have the bestnal tis -- best analysis to discuss the week on wall street. then we have a tsunami warning in alaska with a earthquake rocking downtown