JACKIE: THE MARKET GETTING
ANOTHER MAJOR BOOST ON CHINA
TRADE NEWS.
THE DOW IS TRADING HIGHER BY
MORE THAN 2E
MORE THAN 2200 POINTS.
BLOOMBERG REPORTING THAT THE
U.S. AND CHINA HAVE A DEAL IN
PRINCIPLE THAT AWAITS PRESIDENT
TRUMP'S APPROVAL, WITH JUST OVER
AN HOUR LEFT IN THE TRADING DAY
WHAT SHOULD YOU BE BUYING?
HERE TO DISCUSS IT, PWC PARTNER
MITCH ROSHELLE.
GREAT TO SEE YOU.
WE HAVE THIS LOOMING DEADLINE
FOR TARIFFS ON SUNDAY.
IT SEEMS LIKE A CHESS MATCH
HERE.
THE PRESIDENT WAITING FOR THE
RIGHT TIME BUT STILL RESERVING
THE RIGHT TO RUBBER-STAMP THIS
DEAL.
YOUR THOUGHTS?
>> THESE TARIFFS ON SUNDAY WHICH
WERE ON $156 BILLION WORTH OF
STUFF, ARE ALL THE CONSUMER
PRODUCTS THAT I THINK HIT MOST
EVERY HUMAN BEING IN THE
COUNTRY, SO THAT'S THE REAL
IMPORTANT ONE.
HE'S TAKING IT RIGHT UP TO THE
DEADLINE.
THE TARIFFS MAY OR MAY NOT BE
THE GREATEST STRATEGY WHEN YOU
THINK ABOUT IT IN THE ABSTRACT
BUT THEY ARE CERTAINLY GETTING
CHINA TO THE TABLE.
I THINK AS OF NOW, IT SEEMS TO
BE WORKING, IF WE GET CLOSE TO A
DEAL.
JACKIE: HE TWEETED ABOUT IT THIS
MORNING, SAYING THE TWO SIDES
WERE VERY CLOSE, IT WAS GOING TO
BE A BIG DEAL.
THEY WANT IT, SO DO WE, HE SAID.
ALSO, AT THE SAME TIME, THERE
WERE REPORTS THAT THE TARIFFS
WOULDN'T GO INTO EFFECT, MAYBE
HE WOULD THROW THAT OUT THERE.
HE WOULD CUT THE TARIFFS ALREADY
IN PLACE.
BUT AN AGREEMENT IN PRINCIPLE
FOR PHASE ONE, COULD THAT SEND
THIS MARKET JUST --
>> YEAH, LET'S STEP BACK AND ASK
WHY.
SO THE REASON THAT THE MARKET IS
SO, YOU KNOW, JUBILANT IF THAT'S
EVEN A WORD, BECAUSE IT IS THE
HOLIDAYS, BUT THE REASON WHY
THEY ARE SO EXCITED IS BECAUSE
CORPORATE DECISION MAKING HAS
BEEN ON PAUSE FOR ABOUT 18
MONTHS NOW, WONDERING WHAT THIS
TRADE WAR COULD TURN INTO.
SO KNOWING THAT THERE WAS A
PHASE ONE DEAL AND KNOWING THAT
THE TARIFFS ARE MAYBE SQUASHED
DOWN FOR AWHILE WILL GET
BUSINESS IN
BUSINESSESN
BUSINESSES IN 2020 INVESTING
AGAIN AND IT'S THAT INVESTMENT
THAT'S GOING TO SPUR MORE
GROWTH.
THAT'S THE THING THAT INVESTORS
REALLY WANT.
THEY DON'T WANT CORPORATE
DECISION MAKERS NOT MAKING
DECISIONS THAT ARE GOING TO HARM
EARNINGS IN THE FUTURE.
JACKIE: IT'S ABOUT TAKING THAT
UNCERTAINTY OUT OF PLAY.
IT CERTAINLY GIVES THE MARKET A
POSITION OF STRENGTH TO OPERATE
FROM.
LET ME ASK YOU THIS.
WHEN IT COMES TO THE PRESIDENT
AND HIS STRATEGY, WE DID SAY --
WE DEALT WITH A LOT THIS WEEK.
THE DEMOCRATS CAME OUT,
ANNOUNCING ARTICLES OF
IMPEACHMENT, THEN THE USMCA.
THEY GAVE SOMETHING, THEN TOOK
SOMETHING AWAY.
IT LOOKS LIKE IF IT DOES IN FACT
HAPPEN, THE PRESIDENT SORT OF
HELD BACK ON THIS KIND OF LIKE A
CROWN JEWEL.
>> I THINK THE THINGS THE MARKET
CARES ABOUT, THEY CARE ABOUT
WHAT THE FED HAS TO SAY, THEY
CARE ABOUT CHINA TARIFFS.
I DON'T THINK THE MARKET CARES
AT ALL ABOUT THE IMPEACHMENT
NOISE.
THEY ARE PROBABLY NOT EVEN
WATCHING IT ON TRADING ROOM
FLOORS.
BUT THEY DO CARE ABOUT THE
THINGS THAT IMPACT THE ECONOMY
GOING FORWARD, AND CERTAINLY
PUTTING SOME OF THIS TRADE
SKIRMISH BEHIND US IS GOING TO
HELP THE ECONOMY AND AN
ACCOMMODATIVE FED WILL HELP THE
ECONOMY.
JACKIE: I KNOW YOU DON'T HAVE A
CRYSTAL BALL BUT WE HAVE
DEFINITELY SEEN CHINA COME TO
THE NEGOTIATING TABLE BEFORE, BE
VERY CLOSE TO MAKING A DEAL,
THEN PULLING THE RUG OUT.
>> I'M NOT SURE WHAT CHINA IS
GIVING UP.
WE KNOW WHAT WE ARE GIVING UP,
WHICH IS SCALING BACK TARIFFS,
50% CUT ON THE ONES WE HAVE,
MAYBE PUSHING OFF THESE DECEMBER
15th ONES INDEFINITELY.
IF IT'S ONLY AGRICULTURE
PURCHASES, ONCE THE MARKET
STARTS TO DIGEST THAT, THAT MAY
NOT BE ENOUGH FOR THE MARKET
BECAUSE WE ARE NOT DEALING WITH
I.P. THEFT, NOT DEALING WITH
FORCED TRANSFER, NOT DEALING
WITH STATE-OWNED ENTERPRISES.
THOSE ARE THE BIG TICKET ITEMS
THE PRESIDENT QUITE HONESTLY HAS
CAMPAIGNED ON.
SO WE WILL SEE WHAT THE MARKET
DOES IN THE NEXT COUPLE WEEKS OF
DECEMBER AND INTO JANUARY AS
THEY START TO PROCESS THIS.
JACKIE: THE PRESIDENT'S DEMAND
ON AGRICULTURE WAS PRETTY
SIGNIFICANT, MUCH HIGHER THAN
WHAT CHINA WAS DOING PREVIOUSLY.
IF IT WAS TO INCLUDE SOME OF THE
TALKING POINTS YOU JUST
MENTIONED, THIS PHASE ONE DEAL,
SOME OF THE HARDER NEGOTIATING
POINTS, YOUR THOUGHTS REAL
QUICK?
>> I THINK IT WOULD BOIL DOWN TO
ENFORCEMENT.
IT'S ONE THING TO PUT IT ON
PAPER, ANOTHER THING TO SEE WHAT
HAPPENS IF THEY DON'T.
WE KNOW ONE THING.
TARIFFS MATTER TO THEM.
IF TARIFFS IS THE THING THAT