Our road map begins with a tweet storm from president elect trump weighing in on trade and china. Italian Prime Minister renzi says hell step down after losing that key referendum vote. And rbc suggests an espn spinoff could create value for disney. More on that coming up this hour. First up, president elect sounding off on twitter from everything from china to ta wan to taxes businesses moving from the u. S. To china. Did china ask us if it was okay to devalue their currency making it hard for our companies to compete, the u. S. Doesnt tax them or to build a massive military complex in the middle of the South China Sea . I dont think so. Jim, this was the talk of the weekend. As it should be. I think that one of the things thats happened is that were used to a very formal way things are done. First you hear about a call from taiwan. Obviously its not supposed to be taken in the old regime. And then youre supposed to if you do take it minimize it. But this was maximizing it. I think trump is breaking with all sorts of protocols, whether it be state department, whether it be environment. And this is all part of it. Its a way to be able to state your case that china cant take the jobs. It does seem like right now we have two issues of trump. Weve got that repatriation lower taxation issue. Okay. And then weve got the, listen, were defending the working person. And i think that wall streets going to be a little surprised about the real defense of the working person. I think people felt that maybe that wasnt sincere. Well, these actions are certainly sincere. Right. But is it free trade . Is it a free market . Again taking on rex nard now, right . Yes, its not free trade. Historically known as fair trade. Some people feel fair trade means tariffs. Other people feel maybe this is just a way to be able to say, hey, listen, guys, youre americans first, youre not globalist first. So i dont know which ones which, but theyre both very subtle. Im going to try to explore them tonight with United Technologies, greg hayes, great manufacturer, building a new engine where were going from. Its better than everybodys, but will it be hurt by this . What do you want to ask hayes tonight on mad money . First time weve heard from him after the carrier deal. Again, because the notion were coming from the floor and brand new engine they have, out of respect to where we are, about american manufacturing, well address that. But i also do want to know whether have things changed for American Business people . Are you supposed to be an american first and then a globalist . What do you get if you move overseas now if youre in a situation where a president might take aim at you . And maybe moving to mexico made sense until now. So, i mean, i think when i saw the rexnord, it felt so much less oneoff. Its still indiana, but thats very significant they can move that plant to mexico. Its turning out to be a little more than talk. Yes. I think thats generally the take on the tweets over the weekend. David, im sure youve been watching this as well. Words like retribution, words like consequences. You got ben sassy now saying how does this not translate into a 35 tax on the consumer if this tariff actually happens . Yeah, that is a key question of course, carl, as you say, are things going to become a lot more expensive when you go to walmart and buy them . You know, weve used the word uncertainty so often over these last eight, nine years since the financial crisis first hit as you take a look there of course in terms of president elects tweets on rexnord and others. But youve got to imagine, guys, right, if youre running a multinational right now, and certainly im interested to hear what greg hayes has to say, jim, but if youre running one, youve got a lot of uncertainty. Particularly if youre selling a lot of things in china or doing a lot of business in china, whether its manufacturing there or anything else. Because it is clear that that relationship is in some sort of flux, it would seem, as a result of the incoming administration. And i dont know what you do other than just wait and see how everything settles, jim, if youre running a multinational business right now. David, youre so right. I looked at how Many Companies in the s p that can be hurt by this and theres a huge number of companies that have benefitted from our china policy. And i think that somehow were forgetting that that could go away or that the chinese could make life very hard. If you just look at qualcomm, theres a very good example of how hard china can play. And if they played hardball with all our companies, whether it be Proctor Gamble or a company like Skyworks Solutions makes a lot of equipment there, i think you would start paying less for these companies. So far were not. So far theres an air of good feeling willing to overlook what could happen to caterpillar, which would be so, so lets say just a number cutting event. Right. Be big. Right. But when youre making decisions now in terms of investing, do you need to look at the revenue side and see, well, what percentage comes from overseas . What percentages derive from any market, forget china . And separately, if youre apple, jim, and youre in manufacturing and employing so many people there, youre employing so many people in china, but at the same time what about your manufacturing . Yeah. Well, theres also your supplier base, which in many cases is domestic focused. Yes. And i think that now its absolutely true you could bring a chinese plant back to mexico without running afoul of the president. The president is perfectly willing to have a onestate win over another, but obviously thats always been the case in our country. But, yeah, i spent most of the weekend saying, okay, look, whos got stuff overseas, whos got stuff in china . Making a long list. And the list was too long. Frankly, its way too Many Companies in the s p. You got to go to the small caps, you got to go to the russell. And maybe did the russells big run anticipate exactly whats happening here . Speaking of that run, stocks are poised to open higher as markets all around the globe essentially shrug off the rejection of the italian referendum. The euro did recover from the 21month low earlier this morning, jim. As we said, looking at a dow record at the open, s p though first losing week since the election. Right. Is the rally fading . Thats the question. I think the rally has to struggle here. Good example, italy comes out and immediately i get hit by a half dozen hedge funds notes saying, okay, the lira is coming back. I was at one point talking to my wife about if you go to italy with the lira, how about the overarching hedge fund this is the end of the world no matter what happens contrasted with the recognition that the brexit poll was wrong, trump poll was wrong and whoever thought renzi was going to stay i mean, i was thinking is it going to be 70 30. So weve kind of adjusted the idea that the pollster haves no clue, not that the people have no clue. Now the surprise is austria, right . Shocker. Shocker. I mean, look, i think we all kind of recognize that those who sold on brexit, those who sold on trump, they never got back in. Those who sold on, you know, linkedin and tablo data in february didnt get back in. So the sellers are not numerous, how about that . Yeah, a lot of debate this morning on whether or not this is in fact a pro brexit vote because a majority of italians still favor the euro. And the rules that would have been changed could have been used for any type of politician who came in after renzi. Well, there are two italys. Theres the italy in the North Industrial manufacturer that very much favors the euro, and then theres the italy in the south, which is poor and desperately needs help. So i think what we recognize from this vote is that its not one italy. And therefore its not as scleer cut that they are going to abandon the eu. For more on the referendum lets get to julia chatterley who joins us live in rome. Reporter good morning, guys, as youre quite rightly saying the latest from rome here is at 12 30 eastern time were expecting Prime Minister renzi to hold his final cabinet meeting. Then hell go off and present his formal resignation to the president. At that point the president has two choices, he can either accept it or he can reject it. Now, if he rejects it, it means renzi stays around, he has to face a confidence vote in parliament likely by the end of the week. But for all the reasons, guys, you were just mentioning, tough to see him win this. Whats more likely is the president accepts it and then the hunt is on basically for his replacement. Someone to lead an interim caretaker government at least in the short term. Now, so far so expected, if you trust the polls. And i think if you look at this, we were questioning to what extent this result was in the price. Look at the banks yeartodate down 50 . Today theyre losing a further 4 to 4. 5 , but i think investors will remain sensitive to headline here particularly surrounding the countrys Third Largest bank, whos actually trying to raise cash this week if possible. So, guys, watch headline risk still around the banks and of course wait for that decision from the president later. Back to you. All right. Julia will be watching for that. Lets get more here from david about the heavy hitters of the no labels conference today, david. We do have some coming up on our show. Yeah, we do, carl, thats right. Of course the conference itself is sort of a focus on secenteri politics. Were going to be speaking with the likes of nelson peltz of trian. Want his take on what he thinks about investing in multinationals as of course his firm has done to a large extent. Both domestic and internationally. And were going to talk about business. But we will hit a bit of politics with him. Also be talking with Scott Sperling of th lee about the private equity landscape. And again coming back as we so often do and need to here, what does it actually mean in terms of this Incoming Trump administration for the way these guys view the world . Well have them coming up. All right, david, sounds good. When we come back, is it time for disney to sell espn . Rbc has a note out on that this morning. Also ahead, exclusive with new york fed president bill dudley, a lot to talk about next weeks fed policy meeting a week from wednesday. Take another look at the premarket. For the dow record we need 19,225, looks like well get it. Back after a short break. Those . They are. Do i look smarter . Yeah, a little. Youre making money now, are you investing . Well, ive been doing some research. Let me introduce you to our broker. How much does he charge . I dont know. Okay. Uh, do you get your fees back if youre not happy . dad laughs wow, youre laughing. Thats not the way the world works. Well, the worlds changing. Are you asking enough questions about the way your wealth is managed . Wealth management, at charles schwab. Is that they contour to your body. Rpedic mattresses. It keeps us comfortable and asleep at night. Get your tempurpedic. The most highly recommended bed in america for as low as 25 per month and 90 night free trial. With concerns about espn subscriber numbers weighing on disneys stock this year, rbc is out with a note this morning saying the dow component should consider divesting the Sports Network because such a move would create value. Approach suggested by rbc including spinning off espn into a publicly traded Company Selling the network in a taxed transaction. Title of the report is, its not you, its me. And its about how this used to be considered the crown jewel, now its considered a liability. Well, i do think the piece makes one point that is very important, which is called d rating. D rating in wall street term meaning that wall street is espn is now pulling down disney stock. And if you freed it from espn, which is really incredible because just a few years ago when they were 100 million, the idea of freeing i wanted to free espn from the rest of disney because i wanted to own espn. This seems a little fickle to me, but it does seem and i want to defer to david that this kind of piece would not be sanctioned, so to speak, if bob iger hadnt said, hey, why dont you float it. David, is that too calculated and too cynical a view . Yeah, i dont know, jim. I mean, there are times when companies sort of want the Analyst Community to soften up the Investor Base for something thats coming that may not have been expected, or that might have been received unhappily if it were just a huge surprise. We mentioned this earlier at least last week when bernstein came out with that piece, remember, about them buying netfl netflix. This idea. But i dont necessarily think theyre behind it. You know, the fact is that companies are always considering all sorts of things. And theyre constantly getting called on by Investment Bankers to consider things. And it is my belief that disney has been brought this idea over the years. Hey, would you ever consider spinning out espn in some fashion, different structures for doing it. I think whats interesting now somehow an overhang on this company as opposed to a huge benefit to it is very interesting from an investor perspective. Whether or not anything comes of it who knows. And as you guys both know it was john malone on november 10th who i think started this conversation again during our interview, if you want to take a listen, less than a month ago when he had this to say about disney and espn. If i had to guess, what you will see is a split of disney with espn spun off and probably espn could be owned and protected by a distributor in the u. S. Right. So malone having this idea of doing that. And as distributor namely a Cable Company or what we call still Cable Companies owning it in some fashion, guys. Well see. But, jim, it is interesting to see how many pages have been written recently about disneys future. Yeah. I find it a little quizzical if only because in the last Conference Call in the last earnings there was just a tremendous, i think, ratification of why bob iger thinks that espn has turned. At the same time, david, we get these results from neilsen and show the last two months being very down. Now, one thing that bob iger has said is there are many ways to look at espn and that maybe the neilsen way is too narrow. I dont know, can we just dismiss iger was more bullish on disney and espn last time on . Can we what, jim, say that again . Can we dismiss the notion of that last Conference Call where iger pointblank said there are a lot of ways to look at this thing. That would be in reputation to this piece we read this morning. Yeah, i agree with you. I think those were important comments. And they certainly were taken by the market to have been important in the sense that many get is that this is not necessarily something that is keeping them up at night. But i dont know. You know, at t time warner still changed peoples perceptions of things, i think. And so we havent yet seen the ramifications of that deal, in fact if it actually occurs, which is most likely. And what thats going to really mean in terms of putting pressure on the other companies that are out there including disney. Whether you buy or whether you do consider something in the past you perhaps had already thought about and dismissed. They point out, i mean, rbcs view is that the very nature of live sports is changing. Just because of the changing channels of distribution. And as a result theyre no more about movies and shows and parks and products. Well, look, folks sometimes fickle. I remember moments in time when time warner thought spin out hbo and look at the value of time warner together. I was watching a lot of espn this weekend like many others looking whos going to be in the finals for ncaa and watching sports center. I just think that the idea that this is somehow not additive but is now subtracted because of some losses of subs seems a little, lets just say, fanciful, given the fact that if you had one month that was actually stable, then people would say, holy cow, why did they get rid of that . Yeah. Theres also the added irony that just last thursday, i believe, it was bernstein on why disney should buy in that case netflix, right . So everyones got thoughts on m a coming and going. I know. David was talking about how twitter may maybe they were looking at twitter. Every day i think davids so right, bankers hit anybody whos got a good Balance Sheet whose stock is going down. And disney in particular is just something people love to talk about. David, theres so much conjecture here its almost out of, lets say out of character versus every other stock i follow. Yeah, it is interesting. Again, a lot of pages being written by various analysts and various things. And so you do start to wonder. And ive gotten hit from so many investors as well sort of saying, well, is something going to happen here in some fashion . Its hard to imagine either way at this point that disney would make a big purchase and or ever consider a split that were discussing, but it is certainly not unimaginable. That may be the big issue. Yes. Not unimaginable. When we come back well get cramers mad dash and countdown to the opening bell. Take another look at the premarket on this monday morning. Busy week ahead more squawk on the street after a break. Which . Eees. Bees . Eese. Trees . Eese. Xerox helps hospitals use Electronic Health records so doctors provide more personalized care. Cheese . Cheese xerox healthcare services. Soon to be conduent. Thats it. How was your commute . Good. Yours . Good. Xerox real time analytics make transit systems run more smoothly. And morning chitchat. Less interesting. Xerox transportation services. Soon to be conduent. Just about seven minutes to the opening bell. Lets get cramers mad dash. Talking about apple, driving selfcar autonomous, saying dont really need to do this through the autos. I think people feel they have to do something car because cars such a big market. This is again the idea of moving away from just mobile. Why do they have to do that . One of the reasons is the note out from ubs saying shares good all over the globe but losing some share in china. A price target of 127, but hes been a faux bull. Hes had so many negative things to say, i wish he would go to a sell already. But this stock has been a battleground, as has tech. And im pointing to the fact tech is making a rebound today. I dont know if apple