Frame on over how long of a period of time will they hit that 50 billion figure. The president also saying here to reporters that the chinese wanted to start phase two talks right away he says thats fine with him the president also saying the tariffs that remain on chinese imports will be used on negotiations for that phase two deal so that president here implying he hasnt given up all of his leverage in further negotiationegotiation negotiations no time lyline for when that phe two deal had been completed. That seems to be where things are headed now were getting some tape coming in of the president s comments well bring you that as soon as we have it meanwhile, were getting a bunch of very supportive statements from business groups, crincludi from former treasury secretary hank paulson, saying this is the first bilat rahal trade deal in to years it was hard fought and long overdueth overdue. This is a first step toward completing a comprehensive trade agreement. Scott, reading that statement you do get the sense that for many officials from washington, this is more than just a trade deal, it sort of a geo strategic opportunity for reset and geo strategic diplomacy. Theres a lot more here than just ag purchases but the devils in the detail and we bring you the details and the comments from the president as soon as we get that. We will wait for the president and well be back to you as necessary our Investment Committee also here today kate moore is back, the head of thematic strategy for black rocks global allocation investment team. Just back from china herselfgreat to have on the program today. Jim, youve talked about trade so often most immediately theres no new tariffs on sunday. What does it mean . Most immediately theres no new tariffs on sunday. This that gone into effect here, i think we would have had a calamitous end of the year we dont know ultimately whats going to be purchased by china and therein lies the rub is we dont really know. Theres certainly an amount of healthy skepticism here. I think overall you have to take todays news as a positive because i think it allows corporations to feel a little bit better about raising their capex expenditure plans for yeks year and we cant just keep relying on the consumer. The consumerhas hung in for a long time. We need capex to peacekeeper up for the earnings per share growth and the s p 500 numbers to pick up for next year i think there is a little bit of profit taking but i think its good news, too. It does remove some uncertainties. The u. K. Election is a very big deal the budge looks lit looks lookig to get passed. We need the consumer so that is very good. A lot of this is priced in at 18 times. In 2020 we need to see better growth i think you are seeing Global Growth stabilize thats whats going to drive earnings do we die just this today and over the weekend and then start gobbling up stocks as next week begins for a run into the end of the year i think thats reasonable and i think stephanie points out what is not friespriced in. Very difficult when youre getting what is in the agreement between the china and u. S. In my portfolio best buy thats the obvious one i added to best buy 60 of the goods that are manufactured for best buy come from the chinese with the tariffs not going into effect into the 15th, it gives me further to buyin everyone is talking about late in the year do you increase exposure to the emerging markets and to europe . I think the answer to both of those are yes. And when you take the news in totality today and understand that maybe chinese demand is going to be a little bit stronger, maybe things in the uncht k. Are going to be a little bit stronger. Maybe you could look at the uncht kncht and by the etf, you could by. Do you buy financials do you buy energy . Do you feel positive now more so than you have over the last many weeks about where the market can go in the near term . So ive been positive for a while. Weve had certainly a risk on position in the portfolio or the good part of this year but i will say the big change in peoples attitude towards trade really came when it looked like trump the was not and the news today is as long as the u. S. And china continue to stay gaejed, i think the progrowth, more Technology Oriented protrade types of companies and industries, can perform well theres a decent amount that is priced in in terps of good news, but weve also had an aggregate, slightly better macro data you mentioned the fed. The liquidity environment is positive this is not just a case in the u. S. But around the rest of the world. So in aggregate were going into 2020 i at this, i want to stay risk on, those im not necessarily going to be buying hand over fist does this clear the runway a little bit i think the base case for most investors, this was going to be the resolution of this particular trade impasse whether that was naive or not, to discount the fact that we would see the conservatives. I do think if we think b it from a Global Growth per expectative, we can look forward to do a wook been we could see an improvement in both euro zone yields and here in the United States if we see moves out of treasuries, so i think all of those trends are setting up really nicely going into the First Quarter of next year given the fact that that look a little cheaper than here. The valuation opportunity here in the states are really the cyclical they are definitely are i think theres still up side there thats where your value is, certainly not in the staples or the utilities. You believe in industrials now. People are trying to place their bets on energy in the coming year if you believe the economic picture is going to be better, which i know you do. And now you clear at least a partial hurdle as it relates to trade. Still a lot of work ahead. Theres still a lot of work ahead, but the isms, the pmi and Business Confidence numbers were good i thought le guard yesterday did a pretty good job. Theyre talking about stabilization in europe. Xi is going to macao im encouraged on what i see on a macro basis. We have to see this growth come. Lets keep it simple. Apple hitting a new alltime high today and this was a week in which apple was yet again debated. There was a note about iphone orders as it relates to china and some of. Issues as it relates to trade. Katie at Morgan Stanley today says we caution extrapolating china snooi phone data points, a direct shot at that prior note remain overweight, 296 is this the stock that jumps out at you that says, all right, i dont have to worry about the big slide in apppple but what about buying it now . I think youve got clear momentum going into the end of the year the fundamentals are great the question thats out there is is this the right price, up whatever it, is 75 on the year. And the answer is it might be too high but youre not going to see a correction to that price until 2020 nobody is going to want to sell it at this time in the year. You dont want to tack gaike ga youre a taxable lets listen to the president. Its going to be one of the great deals of the year. It go fog ultimately lead to the opening of china thats a whole big untapped market of 1. 5 billion people i was doing the finals but i got to see enough it have and i spoke to my people its a witch hunt, it a sham, its a hoax. Nothing was done wrong zero was done wrong. I think its a horrible thing to use the tool of impeachment, which is supposed to be used in an emergency and it would seem many, many years apart to be using this for a perfect phone call where the president of that country said there was no pressure whatsoever, didnt even know what we were talking about. It was perfect, the relationship is perfect ive done much more for them than obama did for them. Its a scam, its something that shouldnt be allowed and its a very bad thing for our country and youre trivializing impeachment and i tell you what, someday there will be a democrat president and there will be a Republican House and i suspect theyre going to remember it because when you do when you use impeachment for absolutely nothing other than to try and get political gain now with that being said, my poll numbers, as you know, have gone through the roof fundraising for the Republican Party has gone through the roof. Were setting records. Nobodys ever seen anything like it because the people are disgusted. The people are absolutely disgusted. Nobodys ever seen anything like this and i watched yesterday, i got to see quite a bit of it yesterday and i watched these democrats on the committee make fools out of themselves. Absolute fools out of themselves and i also saw them quoting all the time incorrectly they kept saying me. It wasnt about me, it was about us the word was us. So they kept saying me it said us can you do us a favor, our country, comma, our country. Then it talked about seeing the attorney general of the United States for these people to say me they would say me. You said do me a favor no, it didnt say that, it said do us a favor, our country, talking about the past election, talking about corruption the other thing nobody remembers and nobody likes to talk about and i talk about it all the time is why isnt germany, france, why arent other European Countries paying because were tay paiing, the suckers. For years weve been the suckers but were not the suckers anymore. Big difference why isnt germany paying big money . They have a much about bigger fwen fit than we to. Why arent European Countries paying why isnt france paying a lot of money . Why is it always the United States were 7,000 piles away why is it the suckers always pay . So weve changed that but nobody brings that up i think that the whole impeachment thing, hoax i guess you could call it because it is a hoax and nancy pelosi knows it by the way, they duped her yesterday. She was on an interview and she said weve been working on this for two and a half years so she was working on it in other words two years before we ever spoke to ukraine. She said weve been working on impeachment for two and a half years. And the reporter was shocked when they got this answer because it showed shes a liar so its a very sad thing for our country. Pu it and those people because i watched the dishonest fake media. They say the polls have remained the same no, the polls have not remained the same the polls have gone through the roof for trump, especially in swing states i could show you numbers that nobodys ever seen numbers like this before. So the impeachment is a hoax, its a sham, it started a long time ago probably before i came down the escalator with the future first lady, started a long time ago. And when you look at the i. G. Report and you look at these horrible fbi people talking about you got to get him out, insurance policies you know the insurance policy is just in case she loses, meaning cooked hillary, who is crooked as a 3 bill just in case crooked hillary loses, we got an insurance policy but weve been going through the insurance policy now for three years and its a disgrace. Thank you very much, everybody thank you. How much time will they i think theyll hit 50 billion in agriculture much more than 50 because its also manufacturing i think in agriculture theyll hit 50 billion. Reporter this year pretty soon they already stepped it up i said do me a favor start buying agriculture if you stalook, theyre already buying, even before the deal is signed were with the people of venezuela 100 its so important for us and were going to be discusses venezuela today. Reporter do you prefer a short process in the senate or more extensive process i heard lindsey graham. I can do ill do whatever i want we did nothing wrong so ill do long or short. Ive heard mitch, ive heard lindsey. I think they are very on agreement on some concept. Ill do whatever they want to do, it doesnt matter. I wouldnt mind a long process id like to see the whistleblower who is a fraud. The whistleblower wrote a false report i blew it up when i released the transcript of the call then schiff gets up and he i blew him up, too, because he went up in front of congress and he made a statement about what i said that was totally false. And then a long time after he made it when he got caught, he said, oh, that was, ah, parody, parody now schiff is a crooked, corrupt politician and a disgrace. And because of the fact thats in congress, hes got immunity so you cant do anything but he went up there, you know that, he made a totally false statement. The whistleblower wrote a totally false statement. So its a fraud. Then i say where is the informer, the one that informed the whistleblower he had an informer he disappeared you know why hes disappeared . Because i released the transcript had i not released the transcript, we would have had an informer and another whistleblower the president just moments ago talking at the white house talking about the impeachment process but as it relates to all of you and the market, commenting on the china deal, calling it one of the great deals ever, that it will ultimate hi lead to the opening of chance. And then commenting there about what he says will be much more than in his word 50 billion in ag purchases and that it will happen pretty soon our eamon, we said we would need you later and we need you now. He said he thinks the chinese will get there the reporter pressed him, is that going to happen this year, 50 billion, would be an enormous amount just in one year the president said, we, pretty soon he doesnt commit there to any particular time frame. Thats an important did have and you also heard that frustrationon a day in which the house of representatives is moving forward articles of preeflt against him. Thats a process that the president now feels and the politics of these two issues are clearly linked here. The president and his people here at the white house arguing this china trade deal and the Strong Economy generally is a reason why americans are going to support the president going forward. It part of the reason why they believe the president will be acquitted in the senate. They believe that they have the report of republican senators in the senate so in any senate trial that comes after this process, they believe the president will remain in office, no the be removed early next year so part of the mood music for that is this good economy and the president demonstrating he feels that hes making progress with china, getting to what he promised he would do on the campaign trail, which resetting this entire relationship but some of those numbers we dont have specifics yet and well wait to see what the white house puts out on paper later in the day. And wait for confirmation from the chinese on what they are willing to purchase when it comes to real numbers. Lets get back to the matter at hand. We talked more broadly about what Something Like this means to the overall market. Lets go deeper. Lets go specific. Cramer today, stocks worth buying on a u. S. china trade deal say we have a deal of whatever magnitude we have, wheef got one. Financials, i asked all of you if you thought financials will going to go up jpmorgan, citi, mastercard, visa all liked on this desk yes jpmorgan to me is indicative of the market its almost a proxy for what the market is going to do. I think positioning is incredibly important to cite this time of the the year. What was the position in the market, the mentality in the market youve mentioned apple before. Think about the performance year to day for apple it is exactly what the s p is when you look at earnings. Was there anything in the earnings of apple that was so spectacular a that should have been the catalyst for the performance . Both revenue and eps for it, it comes down to positioning. For financials the positioning didnt Gain Momentum until recently i think thats incredibly powerful and important if youre able to get follow through and continued steepening of the curve. I would add schwab to this. I like the deal. Its not just a macro call it also them getting this deal together and really seeing the synergies and at the valuation its at. Its a the a twoyear discount to its twoyear average. You think theres plenty of financials you can pick and choose from. Of this list mastercard is a what ive been been tripping those guys are a little bit heard of themselves. It was up about 1 before the news came. That price action is what im telling you is what im saying its a little bit ahead of itself this is a stock thats had disappointing earning, several quarters in a row. But if you get u. S. With the rest of the world trade tensions, you could expect to see infrastructure and basic earth moving equipment pick up the industrying you already mentioned financials but energy. Energy has been left for dead. One of those things, not only fundamentals but the buybacks going on and it immediately ecreative on balance shoots. So the fundamentals the dollar tree, walmart, target. Not to distract for the potential for these names to go up, but i think these are names a lot of us have already owned i think of this as the secondary layer. Big box retail that could potentially if were looking at this as actualing global grb like win at las vegas sands. Those stocks are underowned and pretty were talking about a bunch of tames that are trading pe eper end. They are el i mean, these are Higher Quality companies when we think about the more cyclical plays as we go into 2020, we want to sewn some more cyclicals but we want to own sfrort. And our expectation is woo but that the winners are going to continue to be binners. 3 youre not going to get these mahler business moe els or have from i just want to come back to the dollar there and if thats going to have a hend wind or emorjing markets are new york and i dont think you need to see aity sfroks in particularly, emerging inch in and from some cases a turning inward smokt no but that will he the in theyve already to then hit big time from frournt and you look at this list and you say to yourself where do we go from here you look at technology and think about the performance year to date not just from the fangs but software, cyber secure if senat security, it will guide you. If Software Comes out in 2020 and begins to underperform, theres your concern if financials begin to underperform, those two sectors are incredibly important for 2020 well take a break. Heres whats coming up on Health Care StocksCredit Suisse says it time to get out. Plus, the Investment Committee is ready to answer your questions. To reach us, go to cn b bc stwrs do you have concerns about mild memory loss related to