where we will discuss the 2020th presidentiaace wit gernor john kasich right here on "the wall street journal" at large. thank you for joining us. >> "barron's roundtable" scott galloway. earning season what to expect. for companies to watch in why and liberate general weighs in on china trade the 2020 election and more. "barron's roundtable" starts now. >> welcome to "barron's roundtable" where the sharpest minds on wall street meat to get behind the headline and prepare you for the week ahead. i'm set. we begin with what we think are the three most important things investor should be thinking about right now. market rallies on china.

optimism. is it too early to pop the champagne cork? we will tell you what to expect in which companies you should be watching and the countdown to brexit. if boris johnson can make a last-minute deal what does that mean for investors? on "barron's roundtable" tonight my colleague alfred warren rubin and jack hough. big news on china. six months ago "barron's" had a cover story that said keep calm, don't panic. are you panicking somewhere in the middle? what'sappeni? >> and socom in theense tt we were right there was no particular reason to panic the market has gone up in the big news is there might be some sort of the trade deal but i don't think we should really stay calm when they consider how the. war has opened. we have on the one hand the tech trade war with china being published by the u.s. administration for some of the factions against its minority.

we have in the private sector the nba tweeted in favor of protesters in hong kong and that did not go down well with beijing. we had spoiled by apple and google because of concerns by china. these apps were helping protesters and i think you have to look at the trade war is being one of many wars in our conflict with china. czech that's a tough one because it's one thing to worry about economic issues and how many soybeans are going across the border when it comes to free speech versus profit i'm not sure how you resolve that. >> you don't resolve everything but you don't have to. what the market wants. the president called it substantial to the people who are with the president will look at and say that's very substantial and the people you're who are against the president will see all kinds of flaws but we won't have this continuing downgrading of

relationships with china the bias in the stock market is heading higher. jack: you cover caterpillar and those konta companies will do well and we can sell a few more tractors? >> that's a good question jack. the trade war has been the number one issue for u.s. stocks some of the original tariffs one in place. it comes up on every conference call. i think we should be contrarian. let's talk about earnings. jack hough with earning season starting next week what are we looking at? >> there is not a lot of growth to be found with rates headed lower. i think the most exciting thing happening for big banks over the next year will be stock buyback. you rather see organic growth. expectations are pretty low they are pretty false about johnson & johnson. people are going to be reminded that this is an actual company

and not only that they will sell some decent organic growth. think people think johnson & johnson is in the business of a gigantic lawsuit getting hit over the head with one, and a billion-dollar headline this past weekend in the stocks drop that much in market value. i think people are probably too bearish. czech do you think that judgment will come down a little bit? >> one analyst we spoke with said the market is $40 million too much in legal costs for this company. that's a massive number so there's probably an upside to get to be patient on the stock. this probably upside long term. netflix is that maker break quarter for netflix.

everyone is coming out with streaming services apple disney before the big competitors are right. it's a really important quarter for netflix. reporter: do you think is a good read through for disney based on what was said? >> they have grown from such a low base i think growth will be strong out of the gate that i would love to give your prediction on netflix but every time i do i get kked in the behind and i do want to assume the position after reporting this week. i'm not surprised it they be expectations. jack: we have big dates coming up. looks like boris johnson may make progress. >> anytime you mention brexit there's applause because no one knows exactly what it is and if you think of trade war's been going on for a longtime brexit originally voted to leave the european union in 2016. we say it but nothing ever happens so does it actually matter to investors?

it matters to investors for couple of reasons. this goes in the category of geopolitical risk. we don't want to be shocked and we don't want the market shocked by something politicians can do. even though doesn't feel large you can get unintended consequences like what happened in 1997 and 1998 in thailand and in russia. if they can get a deal done, you could look at for investors look at european banks which trade for u.s. earnings and u.s. banks trade would get a bump from good news about europe. jack: someone from northern trust said maybe hope is a strategy. coming up how will the impeachment inquiry affect trade agreements. libby cantrell plays a libby cantrell weighs in on the upper the 2020 elections and more but first in the bear spotlight best-selling author scott galloway i'm breaking a big tech in the future of cryptocurrency,

next. >> facebook is about to have happened to them what they have done to snap. they are going to have their pockets picked. someone else will ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ do you want me to go first or do you want to go first, brea? you can go first. audible reintroduced this whole world to me. so many great stories from amazing people. makes me wanna be better. to connect with stories that i'm listening to-

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i had ivory coast, and ghana...togo. i was grateful... i just felt more connected...to who i am. new features. greater details. richer stories. get your dna kit today at ancestry.com. jack: elizabeth warren and others say it's time to break up the tech. my next guest is a best-selling author lager youtuber and podcast are provocative and insightful and sometimes scathing commentary on the tech industry with a unique view into the disruption shaking our economy. joining me now best-selling author of the algebra of happiness scott galloway and also joining us on the roundtable technology editor alex euo. scott the once idealized tech companies have been accused of many things monopolistic a pier privacy violations carpet

bombing entire sectors. you think breaking them up is a good idea but you say it's not a punishment that it will help the companies and it will help the market in capitalism itself or great. >> we need to look at the three different lands. let's look at how we maintain its proud legacy to keep the markets driving. i think these companies separated will be worth more so as you mentioned good for economy good for your taxation and good for shareholders. jack: amazon as one of your prime examples. >> is the most valuable company in the world and there is no pure way -- the cloud 100%. currently the fastest-growing most profitable part of technologies the cloud. you either have to crawl over a software company like microsoft or a search engine like google. the largest fastest-growing club company was pure play everyone would own it in the most

valuable company in the world with five to six years. jack: a lot of what you talk about is what ails society right now and i've wondered for a long time what did the breakup due to solve issues around privacy election interference and the loss of jobs? >> at stake election interference. we know they have primarily ignored that and are continuing to place political ads even if they have no foundation to truth. i believe instagram and other digital marketers have more market share one in 10 differentiate itself and say we will make investment to ensure their platform is not weaponized by the gru. when you're a monopoly you don't have to do anything to differentiate yourself or show a lot of respect for the onwemmth because people don't have any choice. i think the answer is competition. >> another of these big companies facebook are in 10 days mark zuckerberg goes back to washington to talk about

libra a new currency. we all have libra digital wallets. >> i wrote about this. lieber was dead on arrival. if you look at the candidates the steps to charity the first step is to control the media and then you control the money which controls the military. people will think the control of the media by facebook is gone although swimmingly so the notion of having a stable coin or the world default currency be run by a man who can't be rooted out and a shown a blatant disregard of gross negligence around the welfare of our elections are economy it'll be dead on arrival. facebook asked to put a camera in your home despite the fact that the ceo put a piece of tape over his camera. it's a great idea. it's genius. facebook is about to have happened to them what they have done to snap and they will have their pockets picked and someone else will launch a stable coin. jack: you are bullish on the

future of crypto. >> i'm bullish on the future of a stable coin that addresses a half a trillion dollar transfer payment between cross borders. trying to wire money to europe is like taking out a mortgage incredibly arduous and efficient stable coin is absolutely fantastic idea. it can be brought to us by someone who's malfeasance and that is facebook. jack: is a going to be an egg bank order disruptor? >> it could be a consortium of things for down think any one bank is large and to do globally. it could could be amazon. you might see a stable coin from all marked. i think it will be consortium. shaq you mentioned there on bank people who could benefit but it sounds complicated. can a person in that situation who glasses ... mark on how would they get access? >> that's a good point that the majority of people in u.s. have access to some sort of

smartphone. that's a fair point but a stable coin that gets rid of the exchange fees and gets rid of the wiring fees. look at the cost of workers in the west to send money home to mexico or latin america. it's extraordinary. it's a market that is sticking a chin out. jack wrote a book. over the coming years we were talking about breakups. there was heading to that? >> i think it should be closer to 11. i don't know how fast. antitrust move slowly. we will see a breakup. the breakup has begun. as you referenced earlier when i wrote a article in esquire heard from senator warren soft and senator cruz' office of many of those two people call you the same day you know you're onto something. a breakup of tax is a -- >> with jeff bezos will do it

prophylactically when he realizes he sees it will break himself up and hugely creative. shaq scott galloway. next time elizabeth warren and calls you to the panel comes back to the roundtable with what you can do this week to move your portfolio but first pimco's libby cantrill gets a seat at the table. that's next. liberty mutual customizes your car insurance, so you only pay for what you need. i wish i could shake your hand. granted. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪

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very powerful movers of the stock rocket rather than the fundamentals of the companies will invest in. we are very lucky to have an expert on that subject. libby cantrill is headed public policy for pimco. that's what you talk about all day with clients and the media. let's start off of course with china purchase briefly what do you think the latest news the rally on friday is. will it extended in a monday this is an important bit of information we have got? >> i think the markets evidenced by friday are very much welcoming these developments however and i think this is sort of what remains to be seen from a market perspective, this is more just a escalation than a de-escalation so the reality is even after friday's announcement we still have 3lion60 milollar tariffs on goods in there seems to be a lot to get done and

probably the apex summit in er. this is a reprieve that is welcome for the market? absolutely but is this the big structural deal that honestly u.s. trade adviser bob lighthizer says it's not even close. jack would be difficult and i matter who's negotiating it but a bigger question for me is politically. china is a pretty good behemoth to run against in 2020. you think donald trump wants a deal would he be better off having a deal? >> it does not that he has maybe not making a big structural deal in some ways politically that might. china is a convenient a demand for this presence or democrats or republicans on the hill and it could continue to be for him as he enters the 2020 election.

>> are the stakes rising for businesses doing business with china? >> absolutely and in some ways there so much focus on the market perspective on this trade deal but as you have alluded to this is a multidimensional issue this is about technological diplomacy and national security and this is about u.s. competitiveness. all of those things are quite formidable and if you take in terms of u.s. companies interacting with china has it complicated the landscape for them? for sure. it has become very political for them so absolutely. jack: the political landscape is so fascinating right now. it's not just trade. it's also impeachment. we spend a lot of time taking

about if impeachment matters. it's not a critical it trade deal for global markets. the u.s.-mexico-canada pact could be impacted by impeachment. can you explain why you made that connection? >> right this is actually been another source of trade uncertainty for the markets. this particular trade issue which of course is a reminder because the usmca was agreed upon by canada mexico and the united states a year ago but it still needs to be ratified by the underlying legislatures. the mexican senate has already ratified it that the u.s. congress has not and canada is waiting for the u.s. to move. if you asked me a month ago i would have said to speaker pelosi have any political incentive to bring on this trade agreement. democrats always feel a little bit queasy about it. and handing president trump a big legislative victory.

i would have said the odds are not in favor of that however to your point impeachment does change the political dynamics around this and i think for speaker pelosi and the 31 centrist democrats who won in trump districts in the 35 house democrats probably more inclined to vote for something where they can go back to their constituents and say yes we want to open inquiry but at the same time we don't want to overwrite the president. jack: i wanted to ask you about the 2020 election but we don't have time so we'll have to have you back. investment ideas for the coming week. stay right

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>> he's to be a stock trader. you have the column and i'd love to read it to learn more about wall street. this week you are writing about babies. >> i see a potential for an upside surprise in baby making. we have had 10 years now if decline, lerman declines in the birthrate. it's quite low in the u.s. and it's even lower in europe and japan. it's been a drag on growth but there's a glimmer of good news. there has been some growth in birth among 30-year-olds and millennials are growing the westco hurt of 30 yes but you could have a mini-baby boom not like a return to fast growth and fertility but a pickup in the rates we have seen and it could be good news for a select group of stock companies who sell children's clothing in that sort of thing. bank of america mentions carter's and that's a broader

impact on the economy on things like the budget. you are a parent of three of five rights to your above what they call the replacement rate. this is probably an area where you could offer device. i won't ask you for impromptu advice but will consider it a discussion for another day. jack: gdp is a very simple formula productivity plus population. more people, more growth. right now it's time to go for actionable items from "barron's" that members. if you're an aggressive trader bed bath & beyond a new ceo the chief marketing officer formerly of target. the stock hit seven and went back to 13. if you're trading it would be trading back to 20. >> and upside down incher straight good diversification a risky world. high yields for example yielding 4%. jack: "barron's" love income.

to read more check out this editn of barron's.com. that's it for now. see you next week on "barron's roundtable."