>> ambassador lighthizer. >> are you going are you going to that? ask -- ask mnuchin she wanted to know about mnuchin. >> come on, guys. >> we need to confirm it in the next couple of days. >> will you -- >> say hello to your parents. >> i will. >> what about the summit >> it's moving along well. the end of the month the end of february. >> any other details to provide? >> thanks, pam. >> early next week the state of the union. >> come on, guys keep moving. come on. keep going >> could be. one way or the other. >> president trump speaking in the oval office alongside

lighthizer speak for couple seconds. then we'll get back to business.ou can go and have fun and write your stories. thank you very much for being here. we appreciate it. if i could start by reading the letter from president xi. maybe speak louder. >> message from president xi to president trump. mr. president, i give you my best wishes as new round of level of discussions being held between our two countries on the trade issues. i ask liu he bring you a summary. right now china-u.s. relations are at a critically important stage. last month we had a successful meeting in argentina in which we agreed to work together to build a bilateral relationship based on coordination, cooperation, and the stability. that was followed by the two conversations we had through a phone call and a letter of congratulations we sent each other on the 40th anniversary of our diplomatic relations -- by the agreement we reached. our economic teams have engaged in intensive negotiations and made good progress. i hope -- will continue to act in the spirit of mutual respect and co

not robert lighthizer, not peter navarro, not steven mnuchin. it's president trump. >> hey, blake, it's gary smith. i want to go back to the topic that you talked about and liz kicked it off with this whole intellectual property. that seems to be the big stumbling block here. especially with the made in china initiative that they have now, where they are going to focus even more on technology. i'm just wondering how something so complicated like an intellectual property agreement, could get hammered out in 30 days. does either side feel that this can be done in a short time, or is this going to be just kind of put off to work on in the future? >> well, look, it is just at this point i believe days but they have been going at this for awhile. 's the been 60 days since the dinner at buenos aries and they have talked about it since then. we heard from the president today and maybe that's what he was alluding to, i don't know for sure, when he said look, maybe we will have some sort of deal but maybe not everything on paper by march 1st. it seems li

they're about to leave to go to negotiations with robert lighthizer.ate our expectations, we welcome deborah lehr, vice-chairman of the paulson institute. thank you so much for being back with us. deborah: my pleasure to be here. david: help us calibrate those expectations. the issues have been described as low hanging fruit in terms of buying more goods, on the other hand more difficult things like intellectual property. debra: i think there are difficult issues on the table. for the chinese to make purchases like soybeans, that is easy, more difficult for the questions they go to the core of the chinese economy. addressing state owned enterprise and the role of the state in the economy or certainly the communist party in the economy. those go fundamentally to the chinese system. enforcement will also be critical. it is about making sure there are mechanisms to make sure china is implementing those. in terms of intellectual property rights, we have been talking about intellectual property rights for 20 years. the key is the chinese have been putting m

you met with lighthizer and he didn't tip a hand in any way, shape or form there.cker, tell me what you would like to see as it pertains to these tariffs on china. we know china likes to save face so maybe if you are trying to read your opponents, you have got lighthizer and mnuchin thinking let's give them a bump. >> my district is a big ag area as well as manufacturers. they have been very pleased with what the administration has been doing in resetting our trade agreements that we have with other countries. you know, i was just in a meeting with peter navarro yesterday. his belief and the president's belief is that we have been in a trade war for a long time, we just had things stacked against us. big dairy in my area is very, very happy with the new negotiated agreement with canada, which removes some of the tariffs they had been placing on our dairy products. it's very very important to the farmers in my district. you know, this is news that we will hear more about, i'm sure, in the next few days, but the goal is the same there. we want an agreement, the admin

lighthizer is more hard on china. we believe next week at the meeting lighthizer will be there.t signal to you? does the trade deal get done next week maybe? >> the administration has named robert lierobert lighthizer as n the issue. the office of the united states trade representative is where bob lighthizer is from. it's expected that he should be the lead. it's good the administration has a point person on these issues. that can provide certainty for the negotiations. lauren: tori, thank you for your time. cheryl: investors are watching what is unfolding in beijing. right now, futures are pointing to a solidly higher open for your markets on this tuesday. dow up 113, s&p up 11 and nasdaq is up 28 and a quarter point right now. well, coming up, she cursed president trump, just days a after taking office. >> we're going to go in there, we're going to -- [bleep] cheryl: , now, the congresswoman is under fire for a new rant, this time she is upsetting even more people. you're watching "fbn: a.m." ♪ well, that will be the day when you say good-bye. ♪ that will be the day when you

lighthizer -- ambassador lighthizer and others representing the chinese government are going to get together. and one of the things they're going to be talking about, and we hope they continue on a positive direction, is how we can make sure that the agreements are enforceable, and that good spirit and commitment accompanies them. my own view, both countries see a great value in making these adjustments. and we're going to support it if we can get there. all right. i'll do you next. i'll take the woman behind you first. >> thank you. hegger long from the "washington post". at the end of your speech you talked about the -- what we see in the polling data with americans starting to have more support for socialism over capitalism particularly among young people. and i'm curious to hear why you think that's happening and what businesses should take away from this seemingly change in trend. >> well, i've always thought that it's probably wholesome for children in college and high school and other places to have some sort of a time where they had some socialist bent. it doesn't bother me. but what

lighthizer on enforcement. how do you view -- >> i think we're going to have strong enforcement language both ways. they want enforcement, too. i think we'll have it both ways. we'll have strong enforcement language. this is a serious deal. it could be done quickly, easily but it wouldn't be comprehensive. it would be small. and i just want to end by saying really as a sign of good faith for china to buy that much of our soy beans and other product that they just committed to us prior to the signing of the deal is something that makes us very proud to be dealing with them. i think that the farmers who have already been notified of this by me and my representatives and by sonny, sonny purdue is here, secretary of agriculture. i think that was music to your ears, sonny. >> absolutely. >> a big number. >> good news. >> will you let the farmers know right away? >> i'm sure they know. >> that was more than even soy beans. the other things we discussed. they discussed other things they're buying also. sonny, let ever

ambassador lighthizer and i are looking forward to the two days of talks. the president will meet with the vice premiere. we have another 30 days after this. so my expectation is we'll make significant progress at these meetings but i would just emp size these are -- emphasized these are complicated issues. reporter: how much progress has been made in the last month if you can characterize? secretary mnuchin: i would comment there's significant movement and we're working through what are still very complicated issues. reporter: mr. secretary, i want to go back to gas prices. can you qualify and quantify -- i understand you say gas prices are low now. in the midst of this, with all that's happening with venezuela, how long do you believe the gas prices will move us to a modest impact on the oil industry? can you quantify by how much? by cents, tens of cents or even by dollars, what's the modest impact? secretary mnuchin: let me comment in general i said this before. markets are not always efficient. they move in different directions. i want to be careful not

lighthizer is a levelheaded individual -- >> i just gave the lighthizer news >> which is why i'm not buying today, scott that's exactly why i'm not buying f. a levelheaded, hawkish guy like lighthizer says we're making progress, the end is in sight, that's something i would trade on >> you're willing to risk more >> i'm risk averse the risk that i'm willing to take is to be late to the party than to be early to a potential down fall. >> that's fair >> i hope it's clear >> it is now >> you would buy an alphabet right now? >> i happen to own some google yes. but here is the thing, i'm not of the belief that because somebody doesn't do business in china that they won't be immune to a down fall in the markets led by the lack of a trade deal. >> would you in the rain we can't get jim to buy anything, scott. >> we'll talk about a big name stock that has certainly come down a lot, and that is netflix. its gains on the year cut in half the stock is down 30%. still up 30% for the past year it's our call of the day sun trust makes a call they cut the price target to $355 from $410 >> pricing p

robert lighthizer is leading a second day of talks today with china's vice premier, the highest level since president trump met xi. senator bernie sanders wants to dramatically increase the estate tax on the wealthy. sanders is unveiling a plan today that would impose a 77% tax on the estates of millionaires. this week, three republican senators come up with a plan to abolish the estate tax. at the trump administration for peace in afghanistan, a new watchdog report says afghan secured he forces are shrinking -- security forces are shrinking. the watchdog agency also says the taliban are largely holding their own despite a surge in american bombings. in new

>> ambassador lighthizer. >> are you going are you going to that?bout mnuchin. >> come on, guys. >> we need to confirm it in the next couple of days. >> will you -- >> say hello to your parents. >> i will. >> what about the summit >> it's moving along well. the end of the month the end of february. >> any other details to provide? >> thanks, pam. >> early next week the state of the union. >> come on, guys keep moving. come on. keep going >> could be. one way or the other. >> president trump speaking in the oval office alongside china's vice premier in town for a visit over trade talks sounds like progress and a lot of goodwill both from the chinese side where a letter was read by president xi of how good the relationship was and from president trump saying the relationship with china has never been so advanced and they are building to a trade deal not much in the way of specifics. did get that 5 million tons of soybean number thrown out in terms of what china would buy from the u.s waiting for a little more clarification and president trump seemed e

lou: let's turn to this president and robert lighthizer his trade representative saying two things that my opinion, one is more tariffs may be necessary for the chinese to understand they're going to have to accommodate a new world order, that is a new world order that the imf, the word bank, the united nations itself should be supporting and that is the president's call for balanced trade globally. and the idea that we should not accept empty promises from the chinese who have made nothing but empty promises to this point. >> well the chinese are under pressure right now in these trade talks. there's evidence that they're having problems with their manufacturing. and they're going to probably be offering things to the united states in these negotiations. and lighthizer is right, they're probably going to offer fake promises like temporarily agreeing to buy more soybeans. lou: by the way, in that regard, let me insert again, fred, when you mention soybeans, we're not an emerging nation. more soybeans does not equal what the world's only superpower and the most advanced economy in the wo

trade rep robert lighthizer. we'll see how those stocks go.ot for nothing we have the fed meeting as well. most investors thinking that the fed remains on hold, certainly this meeting, if not for the first half of this year. but just three big themes governing sentiment here from the new york stock exchange. charles. charles: all wild cards that certainly will have an impact on the market. deirdre, thank you very much. >> sure thing. charles: in fact the deadline to reach a trade deal with china is fast approaching. how close are we to reaching such a deal? as the 2020 presidential campaign heats up so does vilifying the rich. this time elizabeth warren slamming a nfl owner buying a super yacht. what is the problem with enjoying a little success? my panel weighs in next. ♪ oh no, no, no, no, no, no, no... only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ i am not for just treating my symptoms... (ah-choo) i am for shortening colds when i'm sick. with zicam. zicam is completely different. unlike most other cold medicines... ..

i know ambassador lighthizer has said that in the key part of this discussion. yes. reporter: contractors that were furloughed, are they getting back pay? mr. kudlow: some of them do. i think the defense related ones will. i am not an expert on that. i'd have to go and check that. i'd have to take a i honestly don't know. reporter: i want to get back to the c.b.o. they looked at projections over the next decade and said the diff sit for fiscal year 2019 would be $29 billion, and $22 trillion year after year after year after that. they say it is simply unsustainable, the path we're on. does the white house agree with that? and if it is unsustainable, is the white house planning to do anything to change it? r. kudlow: we have a fundamental difference about that growth factor is the single biggest factors in these. they have had a low greth estimate on trump taxes and deregulation, we had a much higher one, about a one percentage point differential, we're at three, they're at two, more or less. so the differential over 10 years is significant, could be as much as $3.5 t

and maybe kevin haset in there against the peter navarro and lighthizer and you have to say that thee president have leaned that way, right so you have these two camps and now you have a story which is not exactly a story, but says mnuchin has brought this up in the white house and does not appear to be policy at this point. but the idea that you can just see how sensitive the market is, the one thing that might make this more of a true story is all the things weighing on the market and the renewed concern about the economic effects of the shutdown you have to think that's arm tria arbitrage against let's lighten up on the trade side if i lop a quarter or half off global economic weakness, lop another quarter off, pretty soon you lop off ought the quarters. >> the cynic in you think that we're going to get one or the other. that easing off on china means the government shutdown may be actually prolonged or that that's the thinking within the administration we know this -- this dispute will last a longer time, we got to lighten up somewhere else. >> there could be that interpretation

it's robert lighthizer who is a very protectionist person in the united states. it's hard to see how someone with that level of protectionism can reach an agreement with china. >> it was perceived as a sign of progress and the market is rallying that the talks have been stemmeded a day. >> i think that's all positive our view was are these going to be a bellwether that shows a positive sign or negative sign lighthizer is not there. he's the one who needs to be in the room or president trump himself. his deputy is there, who has similar views as lighthizer but not necessarily the person who can make a decision. >> isn't this the way trade deals are built ultimately you start with the number twos and number threes and they set some groundwork and present progress and then the number ones come in and then the ultimate leaders show up somewhere for the big ceremonial moment. >> absolutely. i think we're working towards that one of the things that happened about a week ago was light hizer told friends that he really is not interested in what he calls empty promises he

he is closer to lighthizer and navarro than he is to steve mnuchin. >> nice to have you on.ope we can have you on again. >> thank you fareed. >>> next on gps, tiny boo ton may not have a gpd but what they strive for is gn, had, gross national happiness. which matters more for measuring a country's success? i will tell you when we come back. [ doorbell rings ] janice, mom told me you bought a house. okay. [ buttons clicking ] [ camera shutter clicks ] so, now that you have a house, you can use homequote explorer. quiet. i'm blasting my quads. janice, look. i'm in a meeting. -janice, look. -[ chuckles ] -look, look. -i'm looking. it's easy. you just answer some simple questions online, and you get coverage options to choose from. you're ruining my workout. cycling is my passion. it's a revolution in sleep. the new sleep number 360 smart bed is on sale now during our lowest prices of the season. it senses your movement, and automatically adjusts to keep you both comfortable. it can even warm your feet to help you fall asleep faster. so you wake up ready to make your resolutions

lighthizer, robert light highsers heading the u.s.talks, says he saw little progress in last week's talks with china on structural issues like ip protection. this is according to chuck grassily of the u.s. senate. grassley goes on to say lighthizer made positive comments to him about soybean purchases which is part of a mandate of a possible trade deal. they are set to meet in a couple weeks in d.c. we'll see what happens then. stuart: we're up 120. lighthizer make as comment. we're up only 50. now we're back up 60 odd points. got it. susan: there you go. stuart: check out the big tech names, looks to me they're all up, yes, they are. facebook 150. amazon up 26 bucks. amazon is higher and microsoft, very big gain, 2.3% at $104 a share. here is the stock of the day. netflix will raise prices for u.s. customers between 13 and 18%. biggest price increase since they launched the streaming service 12 years ago. the price increases also apply to countries in latin america, caribbean but not mexico or brazil. but look at the stock, $20 highe

ambassador lighthizer and i are looking forward to the two days of talks.meet with the vice premier at the end of those. let's remind people. we do have another 30 days after this. so my expectation is that we'll make significant progress at these meetings. i would just emphasize they're complicated issues. we have a timeline of how we mapped out the 90 days. >> how much progress has been played? >> again, there's significant movement and we're working through very complicated issues. >> mr. secretary, i want to go back to the gas prices. i understand that you're saying the gas prices are low now. but in the midst of this, with all of this happening in venezuela, how long do you believe that this will -- the gas prices will move to a modest impact on the oil industry and can you quantify by how much? by cents, by tens of cents or dollars. what is the modest impact? >> let me comment that in general, i've said this before, markets are not always efficient. they move in different directions. i want to be careful and not speculate on markets. i think kind of o

neil: many more to go with that. >> lighthizer, lighthizer is correct when he says that we've got torceable and we want you could, keep coming back to you on weekly or monthly basis, i have to jump on you. hard break comes whether we chat or not, my friend. i value your expertise. we'll have more here. dow down 274. stay with us. ♪ earn $100... ♪ earn $100 off... ♪ off your deductible. ♪ deductible. ♪ for every year of safe driving. ♪ ♪ for every-- for every-- ♪ ♪ for every year of safe driving. ♪ what are you-- what key are you in? "e." no, no, go to "g." "g" will be too high. not for me. ♪ vanishing deductible. oh, gosh. sweet, sweet. who we are as people and making everybody feel welcome. ordering custom ink t-shirts has been a really smart decision for our business. - [narrator] custom ink has hundreds of products and free shipping. upload your logo or start your design today at customink.com. >> welcome back to "cavuto: coast to coast." i'm gerri willis on floor of new york stock exchange. big disappointment with housing sales well below market expectations of 5.2 million and 6.

i know ambassador lighthizer said that. key part of this discussion.orter: secretary, do you favor government contractors furloughed also getting back pay? >> i'm not sure how -- some of them do. i think defense related ones. i'm not expert on that. i have to go and check that. i have to take a look at scope of it. i honestly don't know. reporter: want to get back to the cbo, they also looked at sections over the next decade said the deficit for fiscal year 19 will be roughly 900 billion. starting in 2022, year after year after year after that. 2029, 93% debt to gdp. they say it is simply unsustainable the path we're on. does the white house agree with that? if it is unsustainable, is the white house planning to do anything to change it? >> you know we have a fundamental disagreement with that agency regarding the

i don't think there was much to that comment, report out of lighthizer.ll indications coming back they're making progress. charles: right. >> the fact of the matter we don't have a choice. the economic growth we have to have, business investment we have to regenerate -- >> they have to as well. >> they do as well, we'll not go down a policy we'll blow both of us up but they will blow up us worse than them. >> unfortunately the xi has a, they can struggle along for a while but they can wait it out. charles: i don't by that as much people say. made in china 2025. it wasn't made in china 2050, 2075. he has told the world he expects to be preeminent right now, right around the corner, unlike his predecessor said, be quiet, shut up, do this quietly. >> we also said we'll have 3% gdp growth. if we end up at 1. 5g dp growth, start getting less than obama era gdp growth. that is a disaster. the president won't let it happen. they will get a deal done. >> i feel like day one there will be a deal. whether the administration accepted it, what is good enough for this

on other side would be lighthizer and peter navarro.farfetched to believe ahead of this big-time meeting, when china is sending over the top negotiator, perhaps some kind of olive branch could be extended. we'll keep an eye on it. we were up 200 some-odd points, we gave a lot of it back. wall street cautiously optimistic, liz, that maybe we'll have a resolution with china on trade. liz: we're getting denials at this very moment, charles but we're also seeing major gyrations. you have shown that crude has closed lower. it has just reversed, jumping from losses to gains on this breaking news that you just brought us, markets coming alive in the last few minutes as those trade headlines hit the tape. is the treasury department ready to drop, yes, drop tariffs on china, just to get a deal done? >> well it hasn't been confirmed. it has been denied but team trump according to "wall street journal" is debating lifting chinese tariffs to speed up trade talks. markets absolutely love it. the dow had been down a couple pints. it spiked up 260 poi

lean over lighthizer's shoulder saying i'm taking the deal good enough for me this is not out of characte the president. he made deals quasi deals with north korea most experts didn't like and the risk is that lighthizer would resign and not sure that the president wants to do this unless the stock market is in really serious trouble and he feels he needs to throw it a bone. >> stability no doubt in the stock market and important thing to keep in mind. >> very much strengthens trump's point. >> now brexit. is the single most likely outcome that article 50 gets delayed and a second vote? >> it's certainly more likely of a delay than that there's no deal i think the probability of a complete crashing no deal has gone down significantly. i don't think the second vote is by any means a certainty the number of members of parliament who have said they favor another referendum is not really that large. the labor leadership is against it we know. and more and more conservatives, i was just in london recently, they're asking themselves what would happen with a referendum and remain won the conser

we have not heard from bob lighthizer or peter navarro. they are hawkish. the sentiment is better on this story. we are still a long way from signing off on a conclusive trade agreement. >> president trump will address the nation for his first primetime speech from the oval office. he will make the case there is a humanitarian and national security crisis at the border of mexico and that a wall must be built. are we expecting him to say there is a national emergency? >> at this point, trump's allies are urging him to short-circuit congress. however, we are told he is not going to do that or he is still trying to put pressure on democrats and use the oval office address to make the case to the public that $5 billion should be spent on the wall. >> the federal government remains shut down, for one reason and one reason only -- because democrats will not fund border security. >> our suggestion is a simple one. mr. president, reopen the government and we can resolve our differences over border security. >> the president did not offer anything new to democrats.

but mr lighthizer has also been very vocal since the late 1990s, in fact warning against china joinings would have use leveraged over china to push them to be more democratic. so tough negotiators facing a chinese tea m tough negotiators facing a chinese team led by the vice premier. he is a harvard educated economist and was hand—picked by the president, who he has apparently been friends with since they were teenagers, and he has been called the brains behind china's shift in economic policy away from export driven growth and towards domestic consumption so the economies are less reliant on external factors. we will see what they can come up with. hopefully we will find a resolution sooner rather than later. thank you all my up —— thank you for that update. china's biggest firm has established 360 restau ra nts biggest firm has established 360 restaurants around the world. the popular chain opened beijing's first robot aided restaurant and it has prompted panasonic to spread this concept. this is our latest report on mouthwatering food empires across the asia pacific. when you think

we heard from ambassador lighthizer again today. verse take a listen.if wee much work to are going to have substantial progress. we focus on the most important issues, which are the structural , intellectual property protection, agricultural services issues, and enforcement, enforcement, enforcement. both sides agree that this agreement is worth nothing without enforcement. >> does this complicate any potential progress between the two? >> it always does, of course. implementation of every promise coming from the chinese has always been their biggest challenge. wto commitments they made as well as the different draft laws going through the chinese legal system on intellectual property rights. we are hearing there are new putonwide draft laws being at least into the working level. they have not been implement it, but again, implementation and enforcement have always been the biggest challenge for the chinese. >> of course, what is interesting about who has got the power play at the moment. we are seeing the u.s. stock market almost completely recover fro

lighthizer yet either.here would be conflicting voices at best within the west wing trying to convince the president if this was indeed a tactic on the table. >> right the president always had conflicting voice oz s on this. there is a sharp difference of opinion on how to proceed on the tariffs. the president has been getting that conflicting advice since the administration began and has been making his decisions based on all of that input he gets. so this is an indication he's continuing to get that kind of divided input here the question is what is the president going to decide to do with this? if secretary mnuchin is in with the president right now, he might be walking through all of the arguments that he's making here behind the scenes as well so we'll see what the treasury department has to say about that this afternoon but for now, they're saying none of this is final yet, no final recommendations have been made and the process is ongoing they're emphasizing that >> well, there is also a line in the

once talks get to this level you have people like robert lighthizer the talks, they have to start makingogress with just a few weeks out. amanda: are we looking for meaningful list of things that will not be covered in potential tariffs? what could give the market some guidance on how this might resolve? haven't received a lot of official readouts about what exactly officials are talking about or agreeing to as they are progressing into and a lot of these talks right now. it's really hard to know after the meeting between robert lighthizer in the ohio at the end of the month. the progress they've made. we do know the trump really can't back down from trying to get some hard deadlines, some hard commitments from china on changes to its economy. a deal that only result in china they bring to buy a few more products from the u.s. would all short of what trump has almost worried we will be looking for progress on these tougher issues. under how much pressure is the trump administration to get to a deal? bloomberg reported president trump won a deal to en route to shore up the markets? sarah:

lighthizer joking about the dinner in buenos aires on december 1 that set this all up and how he had been cut out of , drawing some laughs from his chinese counterparts. that is always seen from the negotiating room. they have hard issues on the table. president trump do to meet with the vice premier in the oval office tomorrow. we should be clear that we are not expecting the big final deal this week. we still have 30 days to go to the march 1 deadline. both sides will be keen to keep some cards close to their chest until the very end. david: is there some significance in that change in the seating arrangement? for some time, it seemed other people like steve mnuchin or wilbur ross would be running it. >> bob lighthizer is a longtime china hawk. he's been articulating a position over decades for the u.s. to get much tougher on china. he has argued in the past that letting china into the wto was a mistake. he has argued for defending global trade rules to take on china and he's been delivering that strategy from behind the scenes for most of the last two years. the difference we are

analysts say chinese consumers fall short of trade representative lighthizer's expectations. chinese will likely want the u.s. to remove the tariffs it has imposed, but sources say beijing suspects the u.s. will ask for more concessions before it agrees to do that. president trump has agreed to put on hold, at least temporarily, a scheduled increase in tariffs while the negotiation takes place. to be see whether weaker domestic economies and slumping stock markets in both the u.s. and china will be an added impotence to move forward -- impetus to move forward. >> james is the chief to be seer weaker domestic economies and slumping stock markets in both the u.s. and economist and we are listening. --is going to be important an important week for tone and what we can expect from trade. -- important isn't in china is it in china and the u.s. in terms of economy? >> it is vital. in the u.s., margins are under pressure. threats just some empty from u.s. companies. it is hurting margins. a big engine for oil demand, oil commodities, i think -- i'm skeptical a deal will be done beca

tell us about the delegation, because we learned of the deputy, robert lighthizer, would be heading the delegation. i understand they did not make much progress, because it is not senior enough, but the people who know more about it, like you, say no, they need to start at the mid-level to get more work done. shawn: absolutely. this is the hard, detailed work we have not seen so far from other side. you have not really seen this kind of technician or heads intic delegation beijing before, and really the folks who are going to dot the i's, cross the t's, and negotiate some of the hard numbers. is thisshould look for is only two days of talks next week. what we should look for is not a they deal but a sign that have got enough to go on for a more senior meeting, perhaps between bob lighthizer, the u.s. thee official, and liu, chinese official. shawn: thank you so much -- david: thank you so much to shawn donnan in washington. let's get to amazoemma chandra. emma: ubs is in talks with a successor. ubs said to be in the early stages of talks with my so meissner. let's get to the broader mar

i say, if he goes with lighthizer there will not be a deal. what we're asking china to do, what we're asking them to do, change their entire economic model, let's be clear here. it is is a communist regime and state-run. you can't just do this and take lan and subsidize all these industries as you want. we're asking them to take power from the top down. that will not happen by march 2nd, let's be clear. it is just not going to. ultimately this will come down to hold the line, can't operate in the markets the way you're operating in state move run company. ultimately they don't believe in private property if you're communist regime. so things are owned by the state. that is the way they view it. if you have intellectual property it is owned by the state. and if they're going to change from that model, it will not happen by march 2nd. it means it will be steve mnuchin's deal, something along the lines of adjustments on tariffs, things like that, which i don't think long term will solve the problem. we could say let's take tariffs to zero on auto

robert lighthizer, the trade rep, dismissed the wto in 2001 for allowing china membership. you have people like pete navarro a noted critic of china's policyies. do you now see daylight between what president trump is saying publicly and what these guys have been saying for years if not decades? >> yes there is a great confusion i think chin knowing who is making policy in china. you have the treasury taking a softer line seeking some kind of an agreement you have the trade representatives, navarro and lighthizer who are looking for a harder deal, and the question is where trump will decide to fall in the end we saw in the meeting with xi jinping in buenos aires that he came out wanting basically to, as i say, do a deal, get a deal done now, whether this follows the pattern of the north korean summit with kim in singapore, where there are a lot of honeyed words but very little actually came out of it of substance, that 2019 will tell us >> one of the major sticking points is the technology practices employed in china. if we do see resolution on that front between the u.s. a

is a clear that they are pulling behind bob lighthizer, because steve mnuchin seems like he has had aifferent position from time to time, larry kudlow, who is calling the shots? michael: there is a debate on the chinese side and there is reason to believe that some debaters are in the delegation that will be making presentations tomorrow, but the american side, having seen this since the 1970's myself, it is usually the view of the department. steve mnuchin represents the treasury department and they have a way it looking at this relation ship. the commerce department has a different way. usdr, one way is to think of them as brilliant trade attorneys, they are looking for a written document, legally binding, from the chinese. so it is natural that these departments differ among themselves. i do not think it is a personal thing. behind it all is the donald j. trump experience of negotiations. and he has written so much about himself, he is not beyond the idea of good cop, bad cop. that is why you see peter navarro coming out and saying strong things, like i remember heen he said in nov

when you hear lighthizer perhaps you feel we're not making much ground. cheryl: many have said the white house needs to get singular when it comes to their messaging. i think you're making that point very well. doug, the other issue is the shutdown and the messaging. we had a reporter tell us there seems to be a stalemate with regards to the shutdown. we're at day 33. how important is that to you as an investor and analyst right now? >> historically, shutdowns are not a negative for the market and although we've never had one this long, we've also never had performance as good in the market during a shutdown before. so we've got the best market performance in a shutdown ever. so in the long run if it starts to weigh into things like gdp and whatnot, however slight it might be, that could be an issue. in the short run, that's not going to be an issue. all these people will get their money back and then some in a lump sum. i don't see it as a major thing. i think that's why the market looks past that and through a shutdown. in fact, generally this type of t

last i checked, lighthizer and navarro still have a say on things.'ve capitulated to the mnuchin and kudlow wing of the trump administration, i don't think these trade talks are going to go super smooth. i think there's a lot of hope right now and that's why you saw that late surge yesterday and some of what's underpinning the rally this year. maria: the broad story and the backdrop, it's pretty positive. the major indices are on track for their fourth straight week of gains, following real volatility at the end of 2018. when i sat down with jamie dimon last week, he was somewhat optimistic about the backdrop and certainly i talked about the market in terms of the fundamentals looking good. watch. you know better than i do, but when i think about things the federal reserve makes a pivot, say they're in kno no rush, ears have been pretty strong, we had good job numbers, valuations are better after the last three months. seems like me we could be poised for a rip, roaring rally. >> yeah. i think that's why people overreact. i don't know about a ri rip

lighthizer,ere, mr. steve mnuchin. i do not want to predict anything. i am reading stories online about stuff already done that is not true. i would love to make a deal, am a free trader. we are working on it. give us some time. people keep writing stuff, i do not know where they are getting this stuff. cohn said he is confused about what the white house strategy is. he said it makes no sense whatsoever as far as thousands of federal employees. what is your reaction? is mydlow: he predecessor, a great american. that is all i have to say. he has his own views, i do not agree or disagree. >> [indiscernible] mr. kudlow: with respect to what? we have been negotiating from day one. >> what is the white house going to do? mr. kudlow: the white house will make it clear, i am not negotiating with you, i am stating policies that we must fix the border. border security including the wall or whatever the construct of the wall is, is a principle we have to fight for. to preserve the united states. to preserve the united states. >> are you willing to go under $5.7 m

new nafta that the president signed off on, so i would not at all diminish the likelihood that lighthizer is the guy who says thumbs up and the president agrees or thumbs down and the president agrees. chris, i would like to back off the trade stuff for a little bit. there is a lot more than trade going on that affects the market right now. the trade that dominic was referring to, that's not just the trade exports, but the chinese government has been trying to slow its economy down and lower the dependence on debt. you're seeing that show up in reduced deficit everywhere. a few years ago we saw how the chinese market dropped off, ricochetted around the world. shale drilling had very large effects. i think the markets are sniffing the possibility of a rerun here. >> so with all of that in play, looking short-term, though, dom, just today, what are you going to be watching? >> we're going to be watching whether or not some signs of companies that are affected more directly by some of those things greg just mentioned will be in play. for instance, we have companies more leveraged toward chin

trade representative, robert lighthizer worries about, that is the protection of intellectual property. now he fears the u.s. may jump at a deal from the chinese to buy their way out of the tariffs, ignoring structural changes that need to take place. lighthizer adding intellectual property protections in the usmca agreement, he wants in those with any deal with china as well as enforcement if china breaks their promises. the bottom line for the white house china's top negotiator is here january 30 and 31st in a critical meeting because the president's trade policy brought them to the table. >> this president promise and has delivered on renegotiating bad trade deals. having reciprocal and fair trade. not trade and not all multilateral trade deals but trade deals that work for america. reporter: both side are at least talking which is more than we can say about the government shutdown. melissa. melissa: yeah. thanks, edward. neil: no doubt this trade talk helped stocks today. gerri willis on the floor of the new york stock exchange for us. hey, gerri. >> that's right. it is all about t