more later on. back to you. melissa: thank you. connell: i.p. theft, exactly what they will be talking about in the negotiations. melissa: which goes on next week. there you go. connell: wow. all right. that does it for us. thanks for joining us. melissa: "bulls & bears" starts right now. david: there's a big fight shaping up over the so-called freebies, the democrat field for president growing with california senator kamala harris laying out her platform but a potential challenger from outside both parties could be looking to stop the free-for-all. this is "bulls & bears." thank you for joining. i'm david asman. joining me today, liz peake, zachary carabel, jonathan hoenig and gary kaltbaum. lifelong democrat and florida starbucks ceo howard schultz comes out swinging against one

of kamala harris's biggest plans. >> i'm running to declare once and for all that health care is a fundamental right and we will deliver that right with medicare for all. >> i am seriously thinking of running for president. i will run as a centrist independent, outside of the two-party system. every american deserves the right to have access to quality health care but what the democrats are proposing is something that is as false as the wall, and that is free health care for all, which the country cannot afford. david: will voters steer closer to the left with kamala harris or more to the center with howard schultz when it comes to things like health care for all? what do you think? >> well, i think howard schultz kind of threw some rain on the

democrat parade and frankly, called out republicans as well for not being fiscally prudent. no one is talking about our $20 trillion debt. republicans have really shown over the last several years they are not the stewards of fiscal probity in america. i think as the democrats lay out not just free health care for everybody, free college tuition and all the other things that are lurching left to provide, this will become a bigger and bigger conversation. i'm delighted he brought this into the conversation. >> step back and realize it's fascinating that as much as we talk about the right turned kun country under trump, health care for all has become widely embraced by certainly the entire democratic party and swaths of the american public. it suggests much more of a leftward rather than rightward tilt. these are markers in the sand. we will have health care for all, medicare, it's not free, someone's going to pay for it --

>> that's right. >> -- but i think it's going to be hard to resist this as a trend. >> there's no question. the popularity of socialism unfortunately writ large is growing in this country. we have seen that and talked about it again and again. you know what, to howard schultz's credit, so is the popularity of independents. party affiliation keeps going down. those who declare themselves as independents are going up. i'm delighted to see howard schultz's entry, dangling a foot into getting into the race because you know what? kamala harris's ideas are not new. health care for all is not new. that and aoc and bernie is the same old marxist leftist ideology that has gotten venezuela and every other country that tried it into this predicament. >> i don't think health care for all and venezuela really exist on the same spectrum, as convenient as it may be to lump them together. the idea whether it's from the 1960s, whether it's social security, there should be a

social safety net, there's a wide gap between that socialism and venezuela. >> but let's get to the real point here. there's nothing ever free. free does not exist. >> that's correct. >> everything has to be paid for and it's always on the taxpayers' back. we are depending on people who have been in government for years and years who have run up not $20 trillion, but $22 trillion in debt, who are this year $500 billion, our first $500 billion of our tax dollars is going to interest, and these are the people we are going to depend on to manage the whole health care system? they keep telling us how all these other countries do well, that they are kind of light socialism. i got news for you. go read the statistics in the uk about how long of a wait it is to get surgery, how long a wait it is to get anything done there. people are up at arms over there because of all this. i applaud howard schultz for bringing it up. god bless him for bringing up the debt and deficit because

there's nobody on the left and nobody on the right in the republic-con party that said they would do something about the debt and deficit. >> i thought it was interesting, harry reid took on alexandria ocasio-cortez the other day, saying her tax plans were too radical, and also coming out and saying why don't we fix obamacare instead of kind of talking about a whole new re-engineering of our health care program, which let's face it, last time had enormous consequences that we didn't foresee. why not go back and try and fix obamacare. i think that actually is something that if i were a democrat running, that's what i would be talking about. david: isn't harry reid kind of a dinosaur at this point? >> of course. of course. >> that's where howard schultz's opportunity is. harry reid is a clown. he proved it when he was against the koch brothers years ago. aoc, these are old tired ideas. even those who love the president might look at a successful, truly successful businessman like howard schultz and say my god, he looks rational compared to the clown show on the right and left we have in american politics today.

>> know what the difference is with howard schultz? he really does understand business and profit motive, and the ability when you spend a dollar, you take in a dollar, you spend a dollar, not take in a dollar, spend $1.10 like our government continues to do. when i was watching this interview last night, i was applauding him because he's standing alone at this point in fiem. i'm amazed there's nobody else out there that wants to bring it up or talk about it. you know what will end up happening? one day the debt will explode, the left will blame the right, the right will blame the left and i will blame it on all of them. david: i'm wondering if a lot of activists are against schultz getting into it because they think it will pull away from the democrats but maybe it will pull more from donald trump. there's still a lot of people kind of in the middle, who didn't want to vote for hillary, weren't crazy about trump but voted for him anyway to keep hillary out of the white house. you think maybe schultz is going to pull more from trump than he will from the democrats? >> you know, he has to announce

he's running. b, the most successful independent candidate in the past 50, 60 years has been ross perot which clearly hurt the republicans then. so there's good reasons to think schultz would certainly damage the democrats more than anything else. but again, let's just step back and realize that we have come to a point where separate from whether you are calling it socialism, who's going to pay, the idea that health care is something resembling a right that government has a role in ensuring, that's a radical shift. that was not something that a lot of people would have agreed with eight years ago when obamacare was being -- david: even schultz said, i'm quoting him from last night on cbs, he said americans deserve the right to have access to quality health care. now, he didn't say it should be free, but he did say every american deserves the right. >> that to me is a significant shift in an eight-year period. i know we are all going to disagree about what constitutes socialism versus government providing a backstop. i don't think anybody, including

kamala harris, thinks this is free. the question is, who is going to pay and how. we have been debating this for 20 years and haven't come up with an answer. >> i will tell you what socialism is. listen to aoc. listen to kamala harris. listen to most people on the left. they are about government running, they are after the energy business, they are after the health care business. between the two, that's probably 40% of the economy. who knows what's next? they will come after my hostess twinkies. >> this is something the health care issue really clobbered republicans in 2016. they have to have a way forward. right now, i don't know about you guys, but i'm not hearing much on the right about how we are going to make this possible or make it better. david: we have a lot of breaking news. i know we could go on with this for a half hour but we got to leave it at that. thank you very much. the justice department charging a china telecom manufacture of theft of american trade secrets. announcing the details, the

indictment, just moments ago. with just two days before an important trade talk, scheduled to restart between the u.s. and china, why is all of this happening now and what effect will it have on those stocks? we are live in d.c. next. as someone in witness protection, i can't tell you anything about myself. but believe me... i'm not your average consumer. that's why i switched to liberty mutual. they customized my car insurance, so i only pay for what i need. and as a man... uh... or a woman... with very specific needs that i can't tell you about- say cheese. mr. landry? oh no. hi mr. landry! liberty mutual customizes your car insurance so you only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ ♪ ♪ i can do more to lower my a1c. because my body can still make its own insulin. and i take trulicity once a week

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david: breaking news, the u.s. just announcing criminal charges against huawei and its cfo. this is only two days before major trade talks are set to resume between u.s. and china. let's go straight to edward lawrence for the latest on what was just announced and what impact this might have on trade. it couldn't be good, right before the talks, having an indictment like this, right? reporter: this will complicate things. the new indictment is a new 13-count indictment against huawei and its subsidiary and the cfo of huawei, meng wanzhou was unsealed today. also a ten-count indictment from actions dating back to 2012, where huawei facilitated more than $100 million in contracts with iran through its subsidiary called skycom, in direct violation of u.s. sanctions. the company lied to banks and u.s. federal government by actually selling the subsidiary to itself to hide the business dealings in iran. a grand jury in seattle and new york issued these indictments. the 13 related to breaking sanctions with iran, 10 more

stemming from a civil suit by t-mobile where huawei allegedly stole part of a t-mobile robot used to test cell phones, as well as taking specs on it. the acting attorney general says the company paid bonuses to employees who were able to steal t-mobile secrets. the commerce secretary says the u.s. will protect american companies from wrongdoing. >> we are once again putting the world on notice that we will do everything in our power to stop those that disregard u.s. law. too many companies pursue profits by whatever means necessary, lying, cheating and stealing are not suitable corporate growth strategies. reporter: the acting attorney general also says huawei has been moving witnesses back to china and destroying evidence. the chinese hardened their language on this legal process playing out in canada as well as

calls to ban huawei equipment for spying concerns. the u.s. has until january 30th to file formal extradition for the request of the cfo, meng wanzhou. the spokesperson for the foreign ministry in china says about the u.s. that it should offer a fair and sound environment for the two-way investment and normal cooperation between chinese and u.s. enterprises. and contribute to promoting mutual trust and cooperation between the two sides. the indictments show that huawei followed no rules set by the u.s. government and made a lot of money off of it as well as stole vital company property that huawei used to help test its smartphones. back to you guys. >> i just love that the fbi says this is a result of years of investigative work and now this comes out just right before these gargantuan major trade talks. the question is, what is china going to say about this and how are they going to react?

these trade talks are vital. markets have been reacting left and right. you have any idea what china's going to say at this point? reporter: they have been hardening their language related to this issue, obviously pressuring canada, taking a number of canadian citizens or arresting them. this is something china is very keen on. however, i think this might be a play by the u.s. to sort of say look, this is separate. here are all of the allegations, look at this mountain of evidence that we have of what these executives did and what huawei has done so therefore, they are separate and not part of the political trade negotiations, but it is interesting about the timing. she was arrested on december 1st, the same day that the president was meeting with president xi in china. so the timing is interesting but this could be a play by the u.s. to separate that, to show china further that look, these aren't two separate things. >> but what has taken so long? that's what's been so frustrating. we have been hearing the tariffs and trade war has been hurting

every american. if these are dastardly acts, if this is a specific company, why has it taken the government so long to actually go after them specifically? reporter: some of these charges go back to 2007. that was a question specifically asked of the acting attorney general. his answer was there's just a lot of information to sift through. there was a lot of folks we had to interview. in fact, he said they were challenged because huawei was moving some of those witnesses back to china. >> i don't think this has been an easy case to prosecute and pursue, but i think it's incredibly important that they came out with these charges now, because china has made a kind of worldwide case that this is simply the united states trying to hold back china from dominating 5g and from other technologies. i think from what i have read this is a sound case, there's lots of evidence to support it. i think it's great and i think this is a shot across the bow to china saying we are not going to step back as we did with zte, for example, and let you guys

run the table. we are not allowing that. >> the timing is clearly political, as you know. the fact it was 2007, t-mobile, it was a civil suit resolved in 2014. the larger one is to put pressure on the china government to enforce intellectual property protections within china. corporate espionage, the chinese didn't invent it. we have participated in some of it. every company and every country has been vulnerable to this and there's a long legacy. part of the pressure here is the expectation that the chinese government going forward will, for its own reasons, enforce intellectual property rights in china. david: there's a big difference. what the chinese companies do is work hand-in-glove with the government on espionage and foreign policy concerns. this is all happening on the same day we find out that zte, another chinese company, helped maduro down in venezuela create identification cards. i mean, clearly they are working with a dictatorship to spy on its people.

and it's that connection between the chinese companies and its foreign policies and security concerns that i don't think are very democratic. that concerns a lot of people. >> but there is an eye of the beholder thing. we don't have time here obviously to get into it but if you are not of the united states, the relationship of the 1950s and '60s between large companies like general electric and the defense department providing for our own security, we have companies that provide for our security. the fact is -- david: but these are criminal enterprises. let's face it. >> they violated sanctions on iran. >> we are not even talking about that. agreed. >> actively violated those sanctions. using u.s. banks, lying to those banks in order to facilitate these transactions, saying there was everything above-board. there's a lot of evidence against them on two fronts, the corporate espionage but also breaking sanctions with iran. david: quick last word, gary. go ahead. >> we all know that they are bad players. the question is, what is this going to do to the trade talks. there are major league tests that are involved here that if

they don't get taken off, more and more business will be affected, the market gets affected and the economy gets affected. david: got to leave it with that. edward, thank you for joining us. coming up next, lots of news breaking in the last hour. the trump administration also imposing sanctions on a venezuelan state-owned oil company. what that means for our interests over there. >> the united states is holding accountable those responsible for venezuela's tragic decline. we will continue to use all of our diplomatic and economic tools to support interim president guaido. what if numbers tell only half the story? at t. rowe price, hundreds of our experts go beyond the numbers to examine investment opportunities firsthand. like a biotech firm that engineers a patient's own cells to fight cancer. this is strategic investing. because your investments deserve the full story.

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david: in just the last hour, the u.s. announcing sweeping sanctions on venezuela's president maduro and the state-owned oil company, pdvsa. >> today, treasury took action against venezuela's state-owned oil company, pdvsa, to help

prevent the further diversion of venezuela's assets by former president maduro. the united states is holding accountable those responsible for venezuela's tragic decline. we will continue to use all of our diplomatic and economic tools to support interim president guaido, the national assembly, and the venezuelan people's efforts to restore their democracy. david: blake burman is at the white house. blake, you were at the press conference. what are the details? reporter: yeah. the trump administration really trying to continue to turn up the pressure on venezuela, on nicholas maduro, announcing fresh new sanctions against pdvsa that state-owned oil industry. at the core of it here, of the sanctions, involves trying to make sure that money and entities from u.s. purchases don't make it into the hands of nicholas maduro. future purchases from here on out, essentially, are going to be set aside into a different pot for if and until juan guaido

is recognized as venezuela's leader. the treasury secretary steve mnuchin, the national security adviser john bolton, you can see them in the briefing room earlier today, announcing these new measures and trying to assure the treasury secretary did, that u.s. markets and u.s. consumers will not be significantly impacted. >> most of these refineries, this is about 10% or less. there's plenty of supply at sea that's already been paid for, so there's inventories, there's been excess oil. i'm sure many of our friends in the middle east will be happy to make up the supply. reporter: this was a statement from the secretary of state mike pompeo on twitter, writing quote, today the u.s. determined that persons operating in venezuela's oil sector may now be subject to sanctions. pdvsa has been designated for sanction. the actions prevent the maduro regime from further plundering

venezuela's assets and natural resources. this could just be the beginning of u.s. actions as bolton said today that the military option, when he was asked about it, he said all options are on the table. >> blake -- david: thank you very much. i'm sorry, liz, we have to move on to former u.s. ambassador to venezuela, who is on the phone with us right now. ambassador, lot of people think of what's going on with venezuela now as kind of an oil embargo. we had these before. we had one against saddam hussein. that didn't work out too well. how is this different from a classic oil embargo we have used in the past? >> this is different in that the u.s. treasury department had sanctioned the oil company as opposed to sanctioning an individual who has violated our laws and prohibit american companies from doing business with that individual. but it's more flexible in a way

than a full-fledged oil embargo. >> so it seems as though one of the big issues is the military and whether the military will continue to support maduro. is this an attempt to starve the government, maduro's government, of money to pay off the military and to kind of guarantee their loyalty? >> yes, it's very important to understand that the oil company represents the vast majority of income in venezuela. it's about 90% of export earnings and that most of that, by the way, was coming from the united states. the united states was the last major paying customer of the oil company. so by imposing the sanction on pdvsa, on the oil company, the united states shuts off maduro's piggybank which he's been using to not only buy the loyalty of the military, but buy enormous

quantities of weapons and to pay off a lot of the private businessmen that enable the government to stay in office. >> otto, thank you for being with us. after world war ii there was an understanding that militant [ inaudible ] was dead. what is the scene on venezuela on the ground today? are people understanding that given the fact they are eating zoo animals, socialism has failed? is that understood among the venezuelan people who have suffered so much at his hands over the last two decades? >> you know, that question really can be asked about the entire hemisphere. it's really amazing how in latin america, socialism is viewed as something benign. they don't make the connection, many people don't make the connection between socialism and what has happened in countries like cuba, venezuela, nicaragua, which is that the government in

power simply cannot enlarge the pie. it reduces the size of the pie. if you put socialists in charge of the sahara desert, very soon there will be a shortage of sand. venezuela is an example. it's a country with the largest oil reserves in the world and they have reduced the production of oil by over 60%. they have had to buy gas, they had to buy gasoline because -- >> no one's wealthy. >> surely, ambassador, there's a huge difference between the corruption of chavez and now maduro in venezuela and other economies in latin america like chile, which has had both socialist governments and more free market like argentina which had complete corruption and now is a more reformist government. just to sort of tar this conveniently as the entire region and socialism, venezuela is an outlier, an outlier in latin america, maybe nicaragua

is as well and cuba, these are outliers relative to what several hundred million more people are doing and other governments which have been refoifrmer reformis reformists. >> yes, but in universities, they still favor the state ownership of resources and they will teach the fact that capitalism is unfair and capitalism is not -- does not lead to equitable social development or social justice. we know, in fact, that capitalism has led more people out of poverty than any other economic theory, economic practice. that's a problem. now, it's true that venezuela is an outlier and so is cuba and so is bolivia and so is nicaragua. the problem is, it has spread. >> the more socialists, the more wealth disruption and the more poverty, the more riots in the streets. >> ambassador, is there any discussion going on with the

likes of russia and china, who continue to back this dirtbag? don't they see the writing on the wall, what's going to eventually happen and maybe become good guys in all this? >> well, i don't know whether they are going to become good guys. look, i have a theory. i think that russia, it has been putin's imprint to keep maduro in power in venezuela so that venezuela does not produce oil that goes into the market and competes with russian oil. putin wants to keep venezuela from producing oil. the best way to do that is to keep the socialist government in power. david: forgive me, very quick question, final question. the maduro regime is also a criminal enterprise. we know it's involved in drug trafficking and other forms of criminal activity. when we did go after an administration in latin america before that had a similar government, i'm thinking of panama, manuel noriega, we went

in and arrested him, is there any chance the united states might do that sort of thing with maduro? >> david, i personally don't think it's necessary. i think what the administration is doing and has been doing for about the last three to four months is the right thing to do, the appropriate thing to do. i think that we should try to avoid the use of military force. as a former paratrooper, i don't like to use our airborne and marines because people in those countries, as we see in the streets, they are willing to fight. what they need is our help. this administration is providing that help and i'm sorry to say that we have been very slow in providing the tough measures like the ones announced today by the administration. david: ambassador reich, always appreciate your expertise. thank you very much for being here. appreciate it. jeff bezos belittled for not

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david: jeff bezos named "forbes" richest man in the world with wealth valued at $160 billion, he gave nearly $150 million to charitable causes last year as well but some say that's not enough. compared to other billionaires, bezos donated a significantly smaller percentage of his net worth so is it right for bezos and other billionaires to be shamed into giving more? >> how quickly we forget what rained down on bill gates' head in the 19 n90s that he was not giving away sufficient amounts of his vast fortune, lo and behold has a meeting with warren buffett and gives away more of it. some of it might be a life cycle thing meaning a lot of these people spend all their energy accumulating both wealth and creating a company, then turn

around later and decide to give a lot of it away. zuckerberg did this earlier. you know, i guess it's too soon to tell. >> they are either bad guys when they're making it. you said it, bill gates was a bad guy because he was making all that money and all of a sudden he becomes a good guy now that he's giving it away and they will do the same thing with this new crop of tech entrepreneurs. jeff bezos shouldn't be judged about how much money he's given away. that's really inconsequential. look what he's earned, look what he's created. god, with amazon.com he hasn't helped a few million people, he's changed the world for hundreds and hundreds of billions of people. he should be celebrated for earning his money, not for giving it away. >> i think that's totally right, jonathan. i think he's giving billionaires a bad name. we can all worry about that. but the truth of the matter is, i think it is totally a life cycle thing. generally speaking, it is not the first thing you're thinking about when you make your

fortune. you get to the point in your life where you begin to say what good can you do with it or maybe he was thinking about a potential divorce settlement. who can tell, really. >> the biggest bull market is criticism. everybody has become a critic, telling everybody else what they have to do. if i were jeff bezos i would tell everybody to take a flying leap, i will do whatever the heck i want to do and thank you for bringing up the bill gates, because for years, they were jumping down his throat, look how bad you are, you got all these billions and this man has changed the world for the better throughout the years. he was just biding his time. i have no clue what jeff bezos is going to do but i gather he will start giving more away as we move forward. let him do what the heck he wants. david: americans don't need to be told to give away money. >> correct. david: but it happens every generation. jealousy and envy, the emotional tools of socialism. these things force people in some ways to do the wrong thing in terms of public policy but

eventually, you think of the carnegie mellons, rockefellers, the fords, they all gave away money. >> you can be sure if and when bezos gives away a considerable portion of his fortune, he will then be criticized for how he's spending his philanthropy. >> climate change, climate change. >> it's never enough. if he gave away a third of his fortune, if he really wanted to be a hero to these people, primarily leftists, we have to give it all away. we have to become like mother theresa. that would make him really moral, if he sacrificed. reverend ike had it best. the best way to help the poor is not to be one of them. jeff bezos has helped millions and trillions of people not be poor. david: i never knew reverend ike was one of your -- by the way, we should mention, ma and pa bezos are worth $30 billion themselves apparently in stock because they have a big -- so they are no doubt going to get -- >> all they ever did was give

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david: we have breaking news.

two u.s. house panels are going to be holding a joint hearing on february 13th on the $26 billion sprint/t-mobile merger. the house energy and commerce committee and judiciary committee will be quote, examining the merger's potential impacts on consumers, workers and the wireless industry. both t-mobile chief executive and sprint chairman have agreed to testify. it is a big week for big tech as apple, facebook, microsoft and amazon are all set to report earnings in the coming days. joining us now on what we can expect tech editor and san francisco bureau chief of market watch, jeremy owens. great to have you here. we just heard one of the concerns tech companies have is you have a much more regulatory congress that's now in power, and even in the administration, you have the designated attorney general talking about antitrust issues against some of these big companies that have grown too big, too fast for some people.

what is the biggest concern for the tech companies now? >> well, there's a lot of concerns for the tech companies. with this cloud boom that's coming to an end, there could be a big drawback there. regulation is a concern especially for social media companies. just generally looking for sales growth is the biggest concern right now. we see even apple struggling to grow sales. we had this huge boom in 2018 mostly from the tax relief that they were given, so can they continue to grow earnings and sales as, you know, we might hit a little bit of a plateau here in tech. >> jeremy, gary kaltbaum here. intel blows up, nvidia blows up but a bunch of other semiconductors gave nothing that looked like good guidance but the market really bought them up and you had some strong moves in names like lam research and others. are you hearing anything about a possible bottom in the semiconductor group as far as how the market is at this juncture? >> good lord, no, we have not seen a bottom yet. nvidia proved that this morning,

right? we just don't know where it's going to go right now. everybody is saying that this is a momentary lapse and it will get better in the second half of the year, and so if you want to buy into that, then you can buy into it now. i want to see it first. i want to see that actually bounce back. >> yeah. that's what they said. i remember in 2000, although the earnings of companies like intel, like oracle went up, the valuations didn't and a lot of tech stocks were basically dead money for a decade or more. isn't that what we could see here, as good earnings for a lot of these companies, really well-known companies, but aren't you really buying a valuation? how long will amazon trade at 350 times earnings? how much longer can it continue to trade at such a premium to the rest of the market? >> as long as it's still growing sales. that's the thing, they are being judged on profits, being judged on sales and potential future profits. as long as they keep growing those sales at really high rates, they will continue to draw those valuations. as soon as that slows down, as we saw with apple, that's going to go away. >> a lot of these companies have

had a series of bad news, whether it's iphone shortfalls for apple, whether it's just amazon being incredibly volatile, losing 25% of its market cap. the one name that hasn't had any of this is microsoft. the question this week is, is microsoft a shoe waiting to drop or is it a positive harbinger of things to come? >> the thing about microsoft, they got started a little later. microsoft is really a cloud story right now. it came in after aws had already kind of taken off and zoomed up. so they may just be a little bit behind everybody else. you see whatever happens with the other tech giants eventually happen to microsoft six months or a year down the road, just because they kind of started that zoom higher a little bit later than the rest. >> so question. you said earlier that the cloud boom was coming to an end. is that because people are fighting for market share so aggressively that there's not much profit left, prices are under a cloud, or what is it that you are so anxious about? >> well, seeing these chip

companies suddenly have a downfall in server chip sales, right, so they have sold these chips like crazy to cloud data providers that are building out these data centers, right? and now we are seeing that fall off. and we are seeing even, you know, chip equipment showed it first last year, now the chip companies themselves are showing a downfall. what they say is that they have sold so many in the last couple of years that they are just kind of digesting all those they bought and will start purchasing again. david: you mentioned nvidia. of course, they were down double digits, it was a terrible day for nvidia, like caterpillar as well. they mentioned specifically china as the reason why they were slowing down. is that the overhang, or is it worldwide because we know europe is slowing down as well. >> well, i think cloud is kind of worldwide but especially in china. the chinese have been building data centers for cloud like crazy. that's been the biggest boom over the last couple years especially, right? facebook and google and apple and microsoft were building

out -- and amazon were building out their cloud data centers years and years ago. china has really caught up the last couple years with companies like alibaba. so what you are seeing in china -- >> go ahead. >> yeah, i was going to say, that really impacts china, impacts apple as well. apple was going to have earnings out tomorrow but apple has been hurt by its announcements from china amplify how important the world's second largest economy really is. apple as well for tomorrow. >> it really does. but there are also other emerging markets that have not shown the big gains china already has. everybody talks about india, right. apple is trying to get into india. amazon is big on india. so there are other emerging markets that could take that place of china if they can get in there and start growing there but they haven't been able to show those growth rates china showed over the last few years. >> the question for investors is still going to be how much of what is likely to be anemic if not bad news from some of these companies already reflected in what was really terrible price action for their stocks in

november and december, so that you know, you had a 25% to 30% selloff in apple because all that was baked in. you had a 50% selloff, more than 50% in nvidia after today. it's not as if that bad news has not yet been reflected, even if you are correct that the fundamental bottom, that there's no turn in the immediate horizon, are the stocks reflecting as bad as it gets even though we are not going to see it get better for awhile, or not? >> i think it could get much worse if it wanted to, honestly. there are a lot of companies that have not had those huge declines, some of the ones that have can come back up and some of the others can come back down. i have not seen the entire sector as one just floor drop out. that could happen. david: jeremy, we hope you come back. unfortunately, we have run out of time. we loved having you on. we will have you back again soon. thank you very much. good to see you. nato praising president trump's tough talk for a boost in defense spending, but is it enough to keep the president off their backs? more coming up right after a

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david: president trump just accepted speaker pelosi's invitation to deliver the state of the union before a joint session of congress tuesday, february 5. he told the peaker he has great stories to tell and great goals

to achieve. >> over the last four years from 2016 to 2020, european allies and canada will add hundreds billions more for defense. the clear message from president trump is having an impact. i welcome that because we need fair burden sharing in nato. david: this came after a fiery tirade during the nato summit telling them they have to step up. >> the former defense minister in the u.k. also mentioned half the countries in nato were not only spending the 2% they agreed to but were spending less than 1.5%.

i'm happy someone at davos has something positive to say about president trump. >> now we can increase that with a defense agreements in east asia around korea. but that's something we'll have to attend to then in the next month. >> if nato itself. i was more pressive of the president when he questioned the legitimacy of why american kids should defend turkey from russia. these are nato countries. trumpers are always talking about sovereignty. i would be applauding the president if he withdrew from

nato. >> on the dollars, it's trump for the win. every dollar they spend it's potentially a dollar we spend with less. for a country potentially $22 trillion in debt and a deficit i will take it. trump does a lot of good and this case is one. david: we are always harkening back, at least the mainstream media is to the obama years on how lovely it was to have everybody be so friendly and shake his hands. and they gave him the nobel peace prize before he even did anything. can americans discern the difference? >> yes. i am hoping the next thing he takes on is the world trade organization because that needs reforming, too. >> these other countries can't

just sit there and take advantage of the united states. it's about time, good to see. david: great day, appreciate, lot of breaking news. thank you for watching. we'll see you tomorrow. >> we are going to announce sanctions against venezuela petroleum, the state-owned oil monopoly. we have continued to expose the corruption of ma dur ian his cronies. today's action insures they can no longer loot assets of the venezuelan people. liz: civil society collapsing in venezuela and america confront the socialist dictator billing time, striking -- big time, striking at the heart of