>> president trump says he will extend the trade markets surge. down to the wire. theresant will vote on may's brexit deal. in the future of 5g. but will the controversy surrounding quality mean. good morning everyone. welcome to bloomberg surveillance. these are your markets.

gaining some viewers. a little bit of optimism when it comes to it's going on in trade. i would look to annoy on wednesday and thursday when sits down with president kim. we saw this gains in the chinese stocks up right -- of 5%. understand the vote on the amendment continue on the 27th. we were also hoping to have a meaningful vote when parliament votes on the theresa may deal. that's been pushed back. coming up, we will speak to the chief executive of for rally. that interview coming up at 9:30 a.m. london time. let's get to the first word news. theresa may delayed a

parliamentary vote on her brexit deal. it won't take place this week. on march new deadline 12. that 17 days before the uk's set to leave the eu. some in brussels now reportedly back a delay of brexit as much as 21 months. president trump says he doesn't expect to lift sanctions on north korea. his key goal for the summit is to ease tensions. kim is currently en route to vietnam for a second meeting with president trump. it set for wednesday and thursday in hanoi. >> we have a special feeling and work.k it's going to maybe not. i think ultimately it will but maybe not. i'm not pushing for speed. there will be exceptions. >> warren buffett says he wants to spend berkshire hathaway's

cash flow on an acquisition but doesn't see it anytime soon. he lamented what he saw as skyhigh prices. be,ays berkshire will significant repurchase or of its own stock. a big night in hollywood. a film about race relations in the 1960's won the oscar for best picture. green book bidding -- beating up the favorite europe -- roma but that film still has bragging rights. it won three awards. in an even bigger upset, olivia colman winning the best oscar for an actress separate the trail in -- as queen and. powered by more than 2700 journalists and analysts in more than a hundred 20 countries. this is bloomberg. francine: president trump extended the traders of china. however beijing has a left

optimistic tone. this in negotiations will be more difficult than the french. trump's is they've made headways. to reach a still deal that benefits both sides. >> china is everywhere. you will be really amazed at what you see. always, if we, as look at the stock rally, it seems so. it's been out of expectation for some time.

look like a fairy action. chinese stocks look up 6% overall. on theink were focused trade negotiations. it's clearly been one of the biggest fears. the fact that we are getting some progress on that front, probably explains we're seeing. to aogress then leads deal. does it change the fed outlook? >> that's a much more interesting question. then our view would depend on the economic backdrop. how the u.s. economy is performing. one of the things that has become apparent is the fed's independence emote. dos our expectation that we

see the global economy can recover little bit. it probably get one more hype from the fed. that's probably about it. francine: the michaud you my chart of the day. clark.to hillary we have not fully finalize the currency clause. you can see it expects agreement to be made. over to markets live question of the day. this is what we're asking. >> it would depend on trade talks and discussions. is what it's worth, our view

will probably see things a little bit quickly. this2 month view is we see close to seven. on howf it will depend to trade negotiations unfold. tweets along the way. francine: where do you see the biggest fall into the markets? >> certainly the moves we have seen since the of the central bank. year, it'sgh this when to turn to a story about growth. there be much more focused not just in china but in the u.s. and also the eurozone. that's really good shape the debate. it's going to be much more focus on the fundamentals of economic

growth and what that does for corporate earnings. thank you so much. ubs wealth management economist is with us. another day, another delay. begina may has what postpone a parliamentary vote on her brexit deal. the votes on amendments are still going on on wednesday. this is bloomberg.

>> economics finance politics, this is bloomberg surveillance. bloombergto the business flash.

>> huawei launching its first folding tablet phone days after samsung did the same thing. it opens to become an eight inch telik computer. it will cost $2600. samsung's galaxy folders under 2000. 'snadian mining giant merrick mostly bought up a small stake in a u.s. rival. they acquired a thousand shares in a wholly-owned subsidiary. the move is, quote, a desperate attempt to come look at his pending deal. jp market gained some of the biggest shares in both fixed -- and puts them near the top of the other. moving around in both markets. overall u.s. banks trampled the european rivals. of the six top spots in rankings. buffett says he wants to

spend berkshire hathaway's cash by on a giant acquisition but doesn't see it happening anytime soon. he lamented what he called skyhigh prices in his annual letter to investors this weekend. he said berkshire will become a significant repurchase or of its own stock. that's the bloomberg business flash. theresa may has again delayed a parliamentary vote on the brexit deal. it would take place is week that said she set a new deadline of march 12. esha 17 days before the uk's set to leave the eu. if the prime minister can't get a deal, it will reportedly back a delay of brexit. a tactic that risks enraging hardliners. it became a conversation in brexit. significant is the vote? a we do have is an amendment. it's the most significant moment we have day in and day out.

in does it mean for folks the parliamentarian? to watch thiskey week. if no deal is taken off the table, he will focus the mind. it's no guarantee. i do think this week could shape a lot of events. francine: because it's a deal they would vote for a takes no deal off the table? >> we've been hearing at the will of parliament is to prevent and no deal brexit. this will crystallize the fact of the u.k. would not be leaving on the 29th of march unless there is a deal. >> what i'm concerned about is the way that it is done is unclear. parliament did say we don't want to leave but then they revoke it, what would actually happen? can we completely rule out a new to brexit if the amendment is

passed to parliament or technically could still happen by mistake? >> he could still happen, absolutely. one other thing out of a cautious around is that even if parliament is successful, in delaying article 50, so the u.k. does it leave, it doesn't eliminate the prospect could leave without a deal at some point in the future. this to withdraw agreement that has to be negotiated. i think if the amendment is a no deal brexit, i'd expect to see sterling strengthen a little bit . there was to be focus on the medium-term year. just because exit has been delayed doesn't rule the possibility of a no deal brexit and that's clearly what the market is worried about. is that which expected fresh

elections? >> elections are one of the options on the table if we are to see the brexit were to be delayed. change int parliamentary arithmetic is something that must be considered. delay and, further uncertainty that could because by general election would be welcomed. nor the economy for that matter. one thing businesses crave a certainty. it just builds on the uncertainty. >> does the boe move this year? or is the boe need to hike? >> i think under the outcome of a no deal brexit i can't see a

situation where they will be hiking. the pound could drop in inflation to go to 4%. >> i would be cautious about how far the pound could drop. sterling is already a very cheap currency. absolutely there are downsides. potential for the pound. be, but doeswould no deal look like? it's another puzzling thing for investors. obviously there's a version of could be quite pessimistic. it's quite likely would see some mitigate actions taken place. much will depend on what that no deal looks like. ofncine: live of a world congress in barcelona. the 5g rollout is next.

francine: this is bloomberg surveillance. we are seeing quite a lot of moves on the comes to markets. chinese stocks are almost on the verge of a bull market. actually gaining some 5%. this has to do with the fact that president trump has postpone the date for tariffs on chinese imports.

the 5g technology now been introduced promises to bring world innovation to mobile cable transform television. but the rollout getting started, there are a sounding alarms for the potential for hacking. let's get over to the mobile world congress. been front and center. nejra cehic is standing by. as you are talking, one of the big issues is the u.s. pushing allies to drop of service.provider they have denied any allegations around security or espionage. ceo.got marco lera, the great to have you with me this morning. let's get straight in. ahead?till full steam

.iven the uncertainty our 5g seem ahead with launch. the show was all about 5g. of course, the number one topic for us is the security of the safety of our network. for many where is he worked in collaboration with the u.k. government. we continue to do that as a look -- the nexthan devolution. -- next devolution. -- next evolution. juliette: any delays stash nejra: any delays are convincing programming? >> we have to prepare for many eventualities of the moment.

it's about how we design our network. what could be encouraged if you have to turn to other suppliers? >> it depends on the outcome of this russians. it something we can discuss and agree on. it's one part but not the only part of our network. >> what you looking for for reassurance about? >> like any part of it is -- requirementsiscuss that need to be satisfied. is it a point of concern? means of thele network infrastructure knows and

theocused on devices on network. that's the area we have been promoting. >> if there was a retroactive in 4g, whatg huawei impact would that have on you? we have to plan for every eventuality. while we are important part of you can telecomms infrastructure, hh a that is something we would have to deal with. it's not something we're headed for right now. slowing sales for iphones has had an impact throughout supply chain. more? iscollaborating a getting harder? is are getting a 2018, we had a theme, not generally with anyone particular vendor.

the two biggest brands report in slower sales. having the really encouraging launcheing here is the of new form factors. launched, news be 5g devices and i think that will kickstart demand again in smartphones. .t's encouraging sign >> and even stockpiling any iphones with brexit approaching? >> we have to plan for a lot of things. is number one focus for us keeping our customers connected. our inventory and supply chain as part of that. we have been looking at boosting inventory in the eventuality.

ceo of consumer join us. francine: 20 more with nara throughout the day. talk to the executive about consolidation. another check of the markets after chinese stocks rising on the back of trade deadline extensions. we are going to look at bonds which are moving sideways. and the eu is hatching a plot to perhaps extend negotiations. this is bloomberg. tions. this is bloomberg.

♪ francine: economics finance and politics. this is "bloomberg surveillance." we are spending a lot of time

trying to figure out exactly what brexit will bring. we understand that theresa may launched a big stop parliament from taking it out of her hands. ,he pound is currently at 1.30 and the last75 couple of minutes, we had an official say that the u.k. cabinet is expected to discuss brexit on tuesday, tomorrow, but we also understand through the official that theresa may movies extending brexit does not solve the issue. we had some extensive reporting today saying that whilst theresa may has offered extending the vote, the e.u. is also looking at possibly extending the vote. pointms that theresa may called water on it, saying she does not believe extending brexit d'souza issue. we will get back to brexit -- extending brexit solves the issue. after president

trump's delayed increasing theffs on chinese imports, u.s. president says he aims to hold a summit meeting with china's president xi jinping in florida to conclude a packed. ondid not give any details the meeting or how long he expects the tariff expansion to last. wholeell you that the relationship has been outstanding cover we put ourselves into position of strength for the first time in about 35 years are probably a lot more than that. but china has been terrific. we want to make a deal that is great for both countries. >> the parties of nigerian ari and hisak challenger, are both claiming election.esses in the delays, technical glitches and sporadic violence have marred the elections. the process of declaring results could take one or two days. there is a dangerous to omit venezuela after a weekend of

violence. president maduro used the military to crush an effort by opposition leader juan guaidó to bring humanitarian aid to the country. you can see the pictures of the violence. at least four people were killed, and 200 are hurt. today, u.s. vice president mike pence is in columbia, expected to announce new sanctions and meet with juan guaidó. book" a film about race relations in the 1960's won the oscar for "best picture." "roma" won three awards. glenn colman bested close, winning the best actress oscar for her portrayal of queen and in "the favorite." global news, 24 hours a day, on air and at tic-toc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am dizzy in our title. this is bloomberg ♪ , thank youviviennea so much.

this year, the economy is expected to barely grow in the u.k. lagging behind other countries. what does this mean for his capital markets? inouye is a commissioner of consob and he joins me here on bloomberg surveillance. thank you for giving us a bit of your time while you're in london. first of all, your main risk out youe, i don't know whether worry about market volatility, or worry about italy getting caught in the trade war michel aoun as in china, or whether it related? the stock market is smaller, 30% of gdp, 500 billion, but we will have the largest ipo in europe. we have also been working a lot to develop sme's market. on the equities side, we have

more than 100 companies listed, 6 billion market cap. cap. they are smaller, not very liquid shares, but you are working on this. we also have a market of many muni bonds. more issuance which started with bonds as an alternative to banking and financing. this is a novelty. so i think we are pushing from bottom to improve our markets. is a think the market is worried about her slowing economy. do you think they recession will increase in the next half of the year? carmine: it is truly have a weak economy. but a weak economy is everywhere, in europe. also, we have a very bit

economy, if you see the numbers, it is very interesting, research published on the italian market, showing that we had the largest mes,ers of very weak ans but also the largest number of high-growth sme, larger than spain, france and the u.k.. i am positive on this, there are great opportunities for investment for foreign investment in italy. and they are doing this. we have foreign institutional investors who are having major shareholding. francine:is final -- another have been things that in place to mitigate the impact it would have on the european economies, brexit come in case of a no-deal brexit. carmine: what we are doing is working on a two levels.

on one side, we have signed recently a multilateral do. mitigate.en trying to at the same time, what we're doing in italy is something similar to what germany, france, --gium -- we have prepared the finance minister has issued a press release disclosing this and also at the prime minister's office, we have prepared a draft a draft billo -- trying to mitigate the disruption in the market. italy could be more affected, because the italian seven exchanges wholly owned by the london stock exchange. so we are word because there is lot of liquidity in the u.k. many of our market operators here more or less already to relocate. francine: what is your take on

the banking regulation, it's effort to dispose of -- is it being handled correctly? carmine: we are doing a lot of effort on this, we had many problems. i think we are working it in a quite efficient way, both in an undisclosed level. i am positive that we are trying to have something, trade-off in prices. but if we are having and correct valuation, it is good to go on balance of these things. francine: we also had the appointment of a controversial figure. see any challenges because of that appointment? carmine: we are an independent already. the independence on authority comes first from the confidence of people appointed, and

independence also comes from -- we are the dust i was appointed to the governments go, a colleague of mine is acting chair today, and even before. this continually is essential to ensuring independence. the strength of italian institutions. francine: thank you for joining us, carmine did nokia, commissioner at consob. he also brought attention to this book, an autobiography by charles ponzi, the original ponzi humor. thank you. -- ponzi schemer. coming up, we speak to the chief pirellipe of th that exclusive conversation is next. this is bloomberg. ♪

♪ sandra this is ""bloomberg surveillance." pirelliy was started -- is a manufacturer of tires for bicycle cars and motorcycles. the company can't state owned companiesiant chinese as investors. we are joined by the chief executive of pirelli, joining us

. thank you for being with us today. we are talking on most day in and day out of possible slowness in china, of a possible slowdown in carmakers. ?ow does that affect pirelli , weo: pirelli is focused don't see this drop happening in china, even at the end of last year, we continue to have double-digit growth. we expect in the aftermarket that more than 50% of our market, double-digit growth also in 2019. a bit of a slowdown in the high-end carmakers, but continued growth. francine: how are you expecting the auto industry slowdown, even in the high-end, for example, coming from germany and about trade concerns from the u.s. and china to impact your company? marco: the impact is minor. we have a carpark that represents 75% of our turnover. aftermarket sales are 75% of

our sales. when people don't change cars, they changed tires, in any case. so we are much more resilient than the automotive industry. francine: you just told me are not seeing a drop in chinese demand. how much did you expect the chinese demand to actually grow this year? -- new carspect coming to the market, something between 5% and 6% growth for the high-end. in standard, we see a slowdown. in the aftermarket sky-mobi continue to see double-digit growth. inncine: what do you expect terms of m&a in that tire industry? do you think this is a consolidation phase waiting to continue, or are we done for now? marco: i think we are done for now. could be in asia, there are a number of players and some of

them will be merged, but i don't see any major things happening. francine: so you don't see pirelli being part of a new round of mergers? either buying something were being bought. francine:? marco: no. what is outlook for the talent economy? what is it like doing business in italy? you are international, but do you feel that there is an italian discount on you share price? is basically going through uncertainty. when there are uncertainties, investments are lower, consumption is not improving, and the economy in europe is not good and the italian is a little bit slower than the rest of europe. francine: regionally, where do

you see the main business coming from? when you look at it, it seems i could is coming from outside europe. where specifically? marco: for us, obviously china and asia are still a good market. the u.s. is a good market. still badica, brazil, but not as bad as it used to be last year. growth, but we still see growth in areas where we are focused. francine: what can of impact will brexit bring from -- pirelli? marco: we are the one he wants having local production in the u.k., which is good for the local carmakers but also good exports. we see a negative impact from brexit on the world, but on us, we see a minor impact. ofncine: give me a sense

your investors. are you planning a reshuffle? there are rumors about people coming in and coming out. can you give us a direction of we would like to see as many investors -- as main investors? marco: i see that we have 37% of international investors from the u.s., u.k. and other regions. -- wewe have the largest are the largest owner of our stake -- we had the largest owner of our stick, the chinese -- the largest stake owner in us is the chinese. francine: do you think china is irelli?ed to thp marco: i am very happy with them as a stakeholder because we have very clear agreements. investora financial that is really supportive and without interfering in management. francine: when you look at some

of the concerns for this year, what is your top minority? what will define 2019 -- what is your top priority? marco: this year the expectations are so bad that at the end of the day, it could be even better than expected. i see that the agreement between china and the u.s. is enough solid, that it is not perceived as a long-lasting agreement. i hope that they will be clever enough to give the sense that it is a long-lasting agreement. otherwise, market is so volatile that we could continue to have uncertainties. francine: thank you so much, mr. marco tronchetti provera, pirelli chief executive officer. newspaper write-down. one publisher says brexit is partly to blame for a 200 million hit to its bottom line.

we speak to the executivewe spef reach plc next. this is bloomberg. ♪ this is bloomberg. ♪

♪ francine: economics, finance and politics, this is "bloomberg surveillance." i have francine lacqua in london. one publisher that publishes "daily express," "daily mirror," and hundreds of other newspapers as the brexit is responsible for a 200 million pound hit to their business. joining us now is seven fox, reach group chief executive. thank you for giving ""bloomberg surveillance" evidently time. he said that you are going through a huge transformation in media business, but you could also be impacted by brexit. is that the model of the future, or is it just day to date worrying about uncertainty from brexit? simon: it is both. the new super industry has been going through change since the

1960's, but despite that, our operating profit was above market expectations. so the way we look at it, we had a good year. cash flow was strong, dividends are up 6%. i think we are navigating this digital transition really well. but you are absolutely right. , exit creates short-term uncertainty. i think any of your guests come any businesses announcing results this time of year with brexit just one month away, is going to flag significant risk. there is risk to our business. we are doing everything we can to mitigate it. but if the ports were to jim up -- we import a lot of our newsprint from canada and scandinavia, so there is risk to chain.f my more importantly, we rely on advertisers having the confidence to advertise. if there is a collapse in confidence, it will impact our business. francine: will you still have papers in 10 years or do you

plan to go fully online? this is another big questions, that at some point you have to see that. simon: yes, we will. we still sell 1.7 million newspapers everyday. people still read and love the printed product, and i believe there will be around in 10 years. however, we are building. a huge digital audience, 37 million in the u.k. read our websites every month. -- 100 100 pounds it now with pounds in digital revenue. we want to keep print to going as long as we can come of that we are realistic that people's habits are changing and we have to build a digital business. francine: the decline in the readership in your business have been in the last three months. is it because of the changes implemented or is that people not taking an interesting brexit. simon: i think our readers are border brexit and what we have been seeing the last few months,

only christmas, it has been more national print advertising which has been stronger than we were expecting. maybe there is a swing away from the social media platforms. may advertisers are getting concerned about their round and round safety and want to ensure their brands are appearing in a brand-safe environment. so i think there is a hundred -- a singing a bit towards pendulum swinging a bit towards traditional media, but readership of the printed product will continue to decrease. on the plus side, total leadership has never been bigger. francine: do people want local news stories? are we becoming more local in what we are focusing on? is that or you are expecting to grow your revenue. simon: half of our business is local, half his national. local is very important to us, and we have an opening new digital local-all the newsrooms, we just opened one in leeds and

lancashire.nd also so received a big appetite for news. i think a local news brand shines a spotlight on a democracy and keeps people voted income and 80. it will play an important role in those communities -- keeps community. rooted in the report that came out last week was a very detailed look at local news in particular. public interest news, generally, but local news in particular. she came out with a raft of interesting suggestions. we also have a white paper coming out on online quite soon. the select committee came out committee came out with a report about digital harm recently. there are a lot of reports, and i think translating them into action would be good. and there isn't much of that, but we did last year set up

something with the bbc to work together on local democracy reported. there are 150 reporters across regional newsrooms rate for brother bbc and focus entirely on local councils. i think that is. collaborative work that is really important and something i would like to see more of. francine: sam on fox, thank you for joining us. you have to promise to come back here. ""bloomberg surveillance" continues in the next hour. tom keene janzen in new york. . we will go to barcelona and talk to the ceo of telefonica live from the mobile world congress in barcelona. there is talk about president trump's post voting the data of tariffs. ♪ iffs. ♪

♪ francine: substantial progress. president trump says he will

stand trade talks -- he will extend trade talks. parliament will vote on theresa 12's brexit deal via march -- deal by march 12. controversy. good morning to everyone. i'm francine lacqua in london. tom keene in new york. chinese stocks are really on a tear on the back of this possible agreement on china. i don't know if the market is too optimistic on a deal. i'm looking get that, and looking at brexit. once again conflicting reports. tom: i agree, china overnight was really big, with morgan stanley out with a critical report on the shift from surplus to deficit. a lot of dynamics in china on this monday. francine: absolutely. a lot of dynamics on china.

we will get to the first word in just a second, but let's get through the data first. tom: risk on, futures up. over 26,000.p well europe doesn't play, and oil really not part of the discussion. francine: i'm looking at stocks. they are really climbing in europe. they were really climbing, and now they are gaining some 0.2%. trump is putting the date for boosting tariffs on chinese imports. mark carney has just started talking, the bank of inland governor. he's with the -- the bank of england governor. they are holding a press conference in london on the

continuity of derivative trading between the u.k. and the u.s. post-brexit. we will get to the governor in just a second. here he is. >> thank you. good morning, everyone. it is a great pleasure to welcome chairman giancarlo and andrew bailey to the bank of england for this joint statement. the purpose of the joint statement is really to reshore derivative markets that derivatives -- to reassure derivative markets that derivatives action will continue to function, whatever action exit takes. removedves can seem far from the everyday concerns of households and businesses, but they are re-central. derivatives -- they are essential. nets toves allow safety be there when we need them. help lowerur banks

borrowing costs for borrowers. energy suppliers and their customers can hedge movements in commodity prices, leading to more predictable costs. derivatives allow manufacturing companies to manage risks in their supply chains, helping the be more efficient and resilient. toivatives help businesses plan and invest with confidence, ultimately leading to lower and more stable prices for consumers and better returns for savers and investors. the u.s. on the u.k. host the largest derivative markets in the world. 80% of the world's over the counter interest rate derivatives are written here in the u.k. or in the united states , each representing around $1.2 trillion of notional value everyday. our markets are the most interconnected.

trillione $230 u.s.nal pounds comes from members more than any other international jurisdiction, and is host to the world's largest and most complex derivative markets. the measures we are announcing today do just that. there are three main elements. c's existingft arrangements for u.k. firms will continue. u.k. market dispense will be granted the same release as be able tofirms will continue to satisfy certain requirements by complying with the relevant u.k. laws or using eligible u.k. trading venues. reciprocally, u.s. trading firms and ccp's will be

--e to continue to provide with a view to making a full equivalent's on the cftc's clearing regime as a matter of priority. as of today, we are able to confirm that the registered clearinghouses will be able to continue to provide clearing services in the united kingdom for a minimum of three years in a no deal scenario. third, usn u.k. authorities are committing to continue to work together to supervise each other's derivative activities. the process of updating our memoranda of understanding to support information sharing and supervisory cooperation to promote financial stability in a post-brexit world. today's package of measures is consistent with the firmly held views of each of these agencies that open, integrative, and

resilient financial markets are global public goods. the alternative fragmentation is in no one's economic interest. fragmentation is inefficient and can undermine financial stability, and lead to higher costs that would reduce incentives to hedge risks, increasing the amount of risk the real economy would have to bear. three agenciesse have worked hard in recent years to create open, integrated, and markets. derivatives with today's announcements, we are taking the necessary steps to ensure these markets will continue to perform vital functions. markets can be confident the trading of derivatives between the u.s. and the u.k. will maintain today's high standards, whatever form brexit takes. now i'm going to ask my colleagues to expand on their actions before we take your questions, and let me hand over first two chair giancarlo. >> thank you.

i am pleased to join you endanger for this important announcement. i would like to start by emphasizing a key point, and that is london is and will remain a key global center for derivatives trading and clearing for a long time to come. the complex and sophisticated market structure of wholesale derivatives trading and servicing that takes place here in london cannot be readily replicated in any other financial center. francine: that was mark carney, the bank of england done or -- bank of england governor, and chris giancarlo, head of the cftc, for more on the future of the banking industry and the u.k. we are joined by rupert asseton, blackrock's manager. what happens with brexit this week? if you are a market participant,

if you are one of these people that could be moved to the continent, are you looking to this week have a better sense of whether theresa may can get a deal or not? guest: i think if you are looking to this week for resolution, i think you are going to be disappointed. that is the endless characteristic of this debate, that delay continues. you should now be thinking of some kind of delay beyond the end of march as your central case. the key question is how long is that delay. a minimalist version is three toths, maybe through to may, be a forcing mechanism for the u.k. to finally come to a conclusion about the brexit it wants, or there's an interesting idea floating around brussels of a 21 month delay. obviously that is quite painful for pro-brexit politicians in the u.k.. all of this talk around delay is quite useful for theresa may. she is happy to have delay as the threat because she is sticking with this conservative unity strategy of brexit. internationalour

audience, a lot of this don't .ollow this day-to-day the meaningful vote that parliament has on the deal is delayed, and will be my march 12. will we know by friday if no deal is off the table? guest: i think we may see some movement in that direction. markets are still pricing no deal probabilities to high -- probabilities too high. there will be a series of abundance which will test sentiment in the house of commons. there's really two amendments to watch. one thate resurgent gives the house of commons able to set its own timetable to force a delay. the government is very un-keen on this amendment, may move because of the -- mainly because of the constitutional

implications. there is an alternative emerging. a conservative mp has put forward a commitment would immediately force delay to make. theresa may will signal to her mp's that she it is coming off the table. tom: brilliantly explained. i looked at the scattered dot and i amis morning, absolutely baffled by all of this. let's cut to the monday chase. is the power of the prime minister fading away? absolutely,t is, but she is still the prime minister. ultimately, she still determines the government strategy. even though her cabinet members and close advisors don't seem to know ultimately what she will choose when faced with difficult

decisions, i think the key thing emerging is that she is still in this strategy of trying to put pressure on while keeping the tory party united. she's very wary of the alternative strategy of reaching out to the labour party and passing a softer deal with labor support. i think she's probably right to be worried about that. if you are putting your whole deal at the mercy of your political rivals, that is a dangerous thing to do. scare them with the possibility that brexit will be delayed potentially for quite a long time into holding their noses in voting for her deal. francine: thank you so much. robert harrison of blackrock stays with us for the hour. the race for 5g dominance is on. the technology takes center stage in barcelona come about with the service is rolling out, u.s. officials are raising national security concerns and sounding alarms about the potential for hacking,

especially around china's huawei. cehic joins usra now from the conference in barcelona. nejra: i am joined here i the telefonica ceo -- by the telefonica ceo. great to speak to you, jose. you had a great visit from the king of spain earlier. it is all about 5g here at the conference, but the elephant in the room is the issue with huawei, with the u.s. pushing allies to drop huawei equipment from 5g rollout. huawei has denied any wrongdoing. what do you make of a possible ban of huawei equipment in 5g? >> we take it very seriously.

we referred to the official statement that we have been actively participating in. preparing for any eventuality, but for the time we are having a very fact-based conversation. we really like to be very factual on that issue. nejra: what would it take for you to drop huawei as a vendor in your rollout of 5g? what it have to be a definitive ban all the -- ban on the equipment or any watertight security concerns? >> for us, any breach of essential. at the time being there is no proof of any wrongdoing. nejra: you recently announced a partnership of 5g equipment with

vodafone. are you in any specific talks? long-term a very relationship with vodafone in the u.k. with network sharing. for extending that potentially to 5g. the relationship is very good. we are already sharing fiber networks in spain, and we are open to analyzing that everywhere. it makes good economic sense, so yes, hopefully. nejra: do you have partnerships with others in spain? others as well. nejra: more to come? >> sure. in germany, and brazil. network sharing is a reality. nejra: you have contingency plans for brexit, including for the supply chain. what exactly are you doing?

stockpiling equipment, for example? a financial and , it isonal standpoint unclear for us what is going to be the outcome, so we have different preparations. but we need to be ready. nejra: does that mean stockpiling equipment right now? >> it is making sure it is available in any scenario. deleveraging push is working. is debt now low enough for you to consider returning money to shareholders, either by buybacks or dividends? >> deleveraging has been an essential part of our strategy the last three years. we have been taking down by $12 billion in three years, roughly the size of the sale years ago.

we have been reaching the highest levels of revenue in the last decade. we need to have intensive deleveraging. nejra: could we see buybacks or dividends soon? >> at this time we analyze all alternatives. nejra: if i could circle back to the huawei issue as well, of course there is the potential prospect of a ban on huawei equipment for 5g, but there is also the possibility of a retroactive ban on huawei equipment on 4g. what would be the potential cost to you of a retroactive ban on while wafer 4g? -- on huawei for 4g? >> that is very speculative. nejra: you recently sold your central american asset. where is the talks -- where do the talks stand for your mexican

asset? return on capital is a core part of our strategy. mexico has been underperforming in the last quarter, but it is getting better. we will have all possibilities open gently in mexico. thank you so much for joining me and for nailing your first live interview. tom, francine? tom: thank you so much. important questions there on

huawei. we are going to continue. robert harrison with us. lots more coming up all across "surveillance" today. what you need to know on a monday, risk on across markets. from london, from new york, this is bloomberg. from london, from new york, this is bloomberg.

♪ "bloomberghis is surveillance." let's get to the bluebird first word news with viviana hurtado. reporter: president trump wants to revolve a trade fight with china. mr. trump says there's been substantial progress in the latest round of talks. just wrapped up in washington. if there is more progress comedy president wants to meet with xi jinping. british prime minister theresa

may raising the stakes in a battle with numbers of her own party who want to avert a no deal brexit. may once again postponed a vote in parliament on the agreement she is now trying to renegotiate. the new deadline is march 12, just 17 days before the u.k. is set to exit the european union. the eu may push for a brexit delay of up to 21 months. this would keep the u.k. in the blocks until 2021. . more than three quarters of business economists surveyed predict the u.s. will enter a recession by the end of 2021. a majority of those polled by the business center of economics expect the fed to keep raising interest rates this year, and expect president trump's tariffs to reduce gdp taylor:. "green book -- reduce gdp. oscar -- "green oscar for best

picture over "roma," a netflix film. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm viviana hurtado. this is bloomberg. tom: like the call the guy makes from the jail to bobby kennedy, really quite something in the movie, this is a huge deal for our global audience. times"chang in "the l.a. was absolutely skating last night about this a word -- -- absolutely scathing last night about this award. really extraordinary debate over this best picture. right now we look at the extra neary debate over china. i want to bring up a chart. this is some ubs and morgan stanley. this really shows the decline on the trade surplus of china,

still barely at a surplus, and the long-term deficit to gdp of the united states. at some point here, rupert, china will move into deficit. you know from your undergraduate academics this is a really big deal to shift from surplus to deficit, isn't it? guest: not least a big deal for who is going to be buying all of those treasuries that the u.s. is going to be issuing to fund that deficit. certainly a big deal in terms of the reversal of some of the drivers of long-term market moves over the last 20 years. tom: what does the currency tell you as litmus paper? the idea of a shift from surplus to deficit is critical for blackrock, but what does the currency tell you as a litmus paper for this trade debate? guest: i think it is going to become less informative now as the currency is clearly wrapped up inside the deal being hammered out between the u.s. and china. there's clearly demand from the u.s. to deliver currency stability.

that will be dressed up as nonintervention. ironically, we may come to a situation where nonintervention would result inthat will be dres nonintervention. the currency probably naturally weakening. intervention is probably going to keep that currency up. as i say, i think it is going to become less informative, and we are looking for a period of stability now. francine: this is my chart of the day. this is basically remember he. you can see china hadn't really china hadn't reallyy finalize the currency clause that prevents valuation. are we going to see the great feet of the 1995 accord -- the great feat of the anti-95 accord? guest: this is the kind of exchange rate that really matters. accord on the multilateral scale we have seen

before is pretty unlikely. tom: thank you. we will continue with mr. harrison from blackrock. over the weekend, if you were busy looking at sports, getting ready for your oscar party, a bombshell in washington. 800 plus pages of a statement by mr. mueller on the future of mr. manafort. that will be one of our key themes on washington politics as well. much more to talk about again today. the story of china and the risk on feel. the president delaying tariffs as well. futures up 143 now. strength in the markets. .tay with us this is bloomberg. this is bloomberg. want more from your entertainment experience?

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and see how you can have an even better x1 experience. simple. easy. awesome. ♪ "bloomberg surveillance." good morning. here's your first word news. here's viviana hurtado. viviana: president trump is delaying the deadline to raise

tariffs on chinese imports. the president wants to be with china's xi jinping in florida to seal a trade deal. media warns that the negotiations may face "new uncertainties." kim jong-un is hoping to get the u.s. to ease sanctions when they meet in vietnam. lengthy traing a ride through china to get to the summit. in venezuela, president nicolas maduro used the military suppression effort by opposition --der juan guaido suppression effort on opposition leader juan guaido's effort to bring aid.

in nigeria, supporters of the president claiming early success and the results of the general election. delays and sporadic violence marred the vote. get ready for higher oil prices. that coming from the world's largest energy trader, who tells bloomberg a number of reasons will keep the oil rally going. >> the opec decision has meant this is lice available. the venezuelan situation is adding to that. you've got a squeeze on heavy supplies for probably the next six months. viviana: global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm viviana hurtado. this is bloomberg. tom: thank you so much. right now in london, stephanie baker with us, bloomberg's senior writer. i went to get to mueller and the

shocks friday and into the weekend, but i got to begin with venezuela. it is unraveling. is vice president pence having any effect as a traveling vice president? think he isll, i sort of trump's deputy. he's stuck to trump's policy on this. i think the u.s. policy on venezuela, they are supporting juan guaido. obviously there is unrest. it is unclear what u.s. policy can do to qualm the unrest. tom: really important here, folks. this is over the weekend, and really unraveling into sunday and monday. let's get back on script, and that means mr. manafort and mr. mueller. i was stunned at the 800 pages. were you? reporter: i was surprised it was so long, and at the same time, so much of it was redacted still at this point in the probe.

he is reportedly near the end of concluding his investigation and issuing a report, yet so much remains unknown and was redacted in that report. presumably that is because he does not want to complicate other ongoing investigations. what we don't know is whether or not it is related to the russia collusion probe or a parallel investigation by new york taxecutors into manafort's evasion and whether or not they will bring separate charges, whereby he would not be able to get a pardon from trump, which is what it is looking highly likely he is banking on. he is due to be sentenced in march for as much as 24 years. it does appear he is hoping for a trump pardon. francine: give me a sense, do we know what will be made public in the report? warnings thatady

the report better not be buried. get?gly is this going to stephanie: there will be pressure from house democrats to make sure it does at least get released to congress, i do think the public pressure to get it released more widely will be there. house democrats could subpoena mueller. they can force him to testify. they could subpoena documents. you could see this as an ongoing fight over the next two years if it's not made public. does president trump know the content of what is coming out? stephanie: we've done some reporting on that. it is somewhat unclear what stage the report is at. we know he's got a counter report drafted that they want to release at the same time. whether or not he has seen a draft of the mueller report, and how final the mueller report is at this stage, remains unclear.

tom: stephanie, what i see here -- and you are a phenomenal expert on this -- is the gaming on a 14 day basis of all of this is going to end, all of this is going to end. i see no indication any of this is going to end. do you have any understanding of when mr. mueller will "wrap up?" stephanie: we understand he will issue his report soon. we've been told it was end of the first quarter, beginning of the second, so it is imminent. but that does not mean the investigation into trump will end. i think house democrats will pursue their own investigation, new york prosecutors will pursue their own parallel investigations. trump's for your law -- trumps former lawyer -- trump's former lawyer michael cohen has handed over additional information to new york prosecutors. it may be a formal and into the

russia investigation by robert mueller, but it does not mean an end into the probes for donald trump. this has been hotly anticipated, delayed several times. michael: says he will reveal -- michael cohen says he will reveal new information about the trump organization. it will be one of the hottest tickets in town to see what he says. does he have new, incriminating information that would the trump in greater legal jeopardy? francine: stephanie, overall we hopefulnd that trump is on progress on the u.s./china deal, and prepping for this kim summit. will we get anything concrete from this nuclear summit?

the concern is that trump gives away more than he gets. does he, for instance, offer to withdraw troops from the korean peninsula for some offer to denuclearize? i think that would be heavily criticized. it does look like there's a lot of noise about issuing a formal end to the war on the korean peninsula. kim to enough to get submit to a sort of schedule for denuclearization? i think that remains to be seen. we know trump at the u.s. needs to get a declaration of what nuclear assets the north koreans have in order to judge whether or not a schedule to denuclearization is being adhered to. the concern is that if he goes one-on-one with kim, he may give away too much. tom: thank you so much. greatly appreciate it. a lot of different themes there. moving forward with rupert harris enough blackrock.

coming up, without question, the washington conversation of the day, mr. mccabe of the fbi in conversation with our david westin in the 12:00 hour. please stay with us. this is bloomberg.

♪ tom: "bloomberg surveillance." francine lacqua in london. i'm tom keene in new york. in the markets, the grinding melt up as jon ferro calls it. robert harrison of blackrock with us. taking advantage of this huge 18% move. rupert, now what for those in

the market? guest: we have been participating in this rally. i wouldn't go all in from here. i think that one of the main concerns as we see it is there's a lot of policy optimism now priced. we've seen trade news today out of this big consensus there's going to be further positive news on trade. the market is pricing a very dovish fed. hard to see more good news on that front. idea that there is china stimulus coming through, it is also very consensus. so you've got a lot of optimism on those three fronts. the one thing that keeps us relatively positive on markets medium-term is that this is still quite an unloved rally, potentially with emerging markets. you haven't seen allocators driving flows into equities, so there's a sense that maybe some of that can continue for a while. tom: what are the underlying's

of earnings right now? you mentioned all of these tangential things, which i think is fine, but does blackrock have a belief in u.s. earnings growth growth?ern earnings guest:guest: i think earnings growth expectations have been coming down. they needed to come down. in the u.s. they are now at more reasonable levels. in europe you still have excitations at high single digits. at still feels high, to be honest. the european macro is very weak. i wouldn't say a recession is on the cards this year because the demand in europe is rizal salient -- is resilient, but it is very sluggish. i think for the u.s. it is a little bit more fairly priced. francine: we have a new survey saying more than 3/4 of economists expect the u.s. to end a were -- to enter a recession by the end of 2021. guest: if you give economists enough of a horizon, there will

probably be a recession. few people will hold them to that forecast. there is a contrast around the me to seech we do a further leg down in the cycle. if you look at the end of this week, the manufacturing, there's still more upside to downside in that cycle. but as a dumbest demand in the u.s., but also in europe and elsewhere, relatively resilient, supported by pretty benign short-term inflation outlook. pretty decent labor markets. it is hard to see the of us economy really rolling over unless we get some big negative surprises. francine: if there is a trade deal or truce, does the fed hike twice this year? guest: the market is now pricing cuts rather than hikes from here , and i think that is a risk the fed is signaling a pause, but how long can that last? -- the mostcan

recent cpi reminds us inflation is not dead in america. we still have wages accelerating gradually. people could be contemplating fed might be raising what's a price again, and i don't think the market is ready for that. tom: but the answer is we've got to do something now. what do i do with cash today? i've got 4072 funds at blackrock. how did you allocate cash? guest: we still remain invested in equity markets. forink it is a good period kerry assets as long as the fed remains on hold. that trade is a little bit of picking up pennies and friend of the steamroller. if the fed is back in play, there will be a cost there. there will be some ways to insulate portfolios in this light cycle period. it is a nice premium you pick up the cycle, but tends to

outperform in late cycle. looking for cheap ways to get upside, maybe replace some portfolios with upside through options. tom: i guess so. i look at the directional, and all i know it is a round-trip 30% some. have you ever seen the move we've had off of december? i've never seen it. guest: i have to say, it has surprised us. one of the things we know about markets is that they overreact. academicthis famous asset volatility, and we have really seen that over the last six months. it is one of the things that makes us a little reluctant to chase this. having said that, one of the things that i think has been is technicals driving markets. we saw that particularly with unwinding hedge fund trades in october. then we saw moves in december that didn't seem to be justified by market fundamentals. then equally, this big

bounceback not really justified by the level of optimism. i think there's a lot of things driving markets that aren't about market fundamentals. you've got to look through that and think long-term. recession is unlikely. you want to stay invested and have a resilient portfolio. you want to think about owning bonds, a decent amount of duration portfolios, things that will serve you well on a medium-term basis in a late cycle environment. francine: we are going to talk about emerging markets next, but i want to go back to brexit because we haven't asked you about this independent group. are we going to see more traction? more defectors from theresa may's group joining them? guest: i wouldn't expect that. the true consequences of this into bennett group will be difficult to tell for several years. is this a fundamental realignment in british politics? i suspect not. i think the real question is about the future of the labour party where you've got the left wing leadership fundamentally at odds with the vast majority of mps, and how that is resolved is

difficult to see. in the short-term term, one clear implication is that it makes an election less likely. labour have eight s not served by an election, so the government is little more insulated. francine: interesting. thank you so much. robert harrison of blackrock stays with us. coming up a little later at 6:30 a.m. in new york, jerry von london.t 11:30 a.m. in this is bloomberg.

♪ this is: --viviana: "bloomberg surveillance." qualcomm is rolling out new 5g chips for home broadband. we spoke with the company's president about what this means for the industry. >> bigger screens are here to

stay. i think you will see the opportunity for larger screens of you have flexible led technology. you will also see specialized devices for more capable gaming on 5g devices. you are also going to see devices that are going to converge between productivity. over time, we expect to see virtual reality or augmented reality devices as well as a companion to your phone that will use 5g technology, and we hope that will apply to eyeglasses. viviana: an offering could value pellet on at $5 billion -- value at $5 on -- value peloton billion. buffett, and his annual

letter to investors, says businesses with decent long-term prospects are looking for skyhigh prices to be acquired. buffet rights that will lead berkshire to buy more public stocks this year. that is the bloomberg business flash. tom, francine? francine: thank you so much. venezuelastalemate in after a weekend of violence. president nicolas maduro crushed an effort by opposition leader juan guaido to bring humanitarian aid into the country. at least four were killed, 200 wounded. 's are joined by bloomberg reporter covering this very closely. are we expecting more violence in venezuela? reporter: yes, it looks like things will get worse before they get better. both sides are hard in their stance. that is bad news for the moment long-term,means the

it is being pushed further as long as maduro is in power. is notlear that is -- it clear that there will be a peaceful resolution to this. as of now, the threat of sanctions are clouding the outlook. how long maduro will play this game, we will have to wait and see. francine: what are the chances of elections? is it zero? we have seen so much international pressure, especially from the u.s. reporter: it is not going to go that way, at least from the noise we are hearing. it is more going to go in the direction of trying to build a consensus for military action. now the defections have increased in the even as

whalen military -- in the venezuelan military, and people are moving to the other side. things are fluid, but sanctions, military action, that is the direction the country is probably taking. francine: thank you so much -- thank you so much. let's get back to blackrock's report harrison. at the end of 2018, every person we spoke to wanted to get into emerging markets. is it overcrowded? guest: as i said earlier, one of the things about the rally generally is it has been quite unmarred in terms of flows. unmarred in terms of flows. you go to late q3, q4 of last year, that was the consensus, em performance. chasing that performance from here is not the right trade. you have to be a lot more selective within emerging markets from here. i think toning down the eem overweight -- down the eem

overweight, china is interesting. it is clear that the government is trying to use this trade good news to try and rebuild momentum and sentiment in the chinese sector. i think there's signs the authorities are encouraging this rally. you know this is a really momentum driven market, and we've got potential inclusion coming up that the authorities are trying to say, let's brief some life back into the private sector in china. tom: a 40,000 foot question on em, the china challenges like moving surplus to deficit, how does that diffuse to their adjacent trading nations? think these i nations are overwhelmingly dominated by this, particularly the ones plugged into the supply chains that are manufacturing a cycle out of china. they have taken a big hit -- a capex cycle out of china. they have taken a big hit, and i

think this will continue short-term. there may be some positive side effects from ongoing tensions around technology and supply chains, particularly u.s. companies looking to move supply chains out of china. some of the countries in the surrounding area may benefit from that, but that is quite a small long-term effect. for the for siebel future, these countries are still very plugged into what is going to be a volatile many factoring cycle. tom: robert harrison, thank you so much. coming up, a really interesting conversation. vanlancker will tell us what paint to put on the bermuda the spring. this is bloomberg.

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>> -- but rather trade talks with china. and the united states of america. equity celebrates it is a risk on monday. gina global recession, they are out in force. ramifications of the end of the great china surplus, casio the assumptions aside. it is 800 plus pages long. not the acceptance speech, it is the manafort manifesto. good morning, everyone. this is bloomberg surveillance. live from our world headquarters in new york. printing, did you stay up and watch the oscars? not.did i looked through instagram for an unreasonably long amount of time to check out the of its and see who one. i was distracted this morning. the pink was very good got right color. red or pink seemed to be dominant last night. important topics to talk about

in this hour. our first reviews in new york city will be on --. >> -- is the biggest sign yet. president trump wants to resolve a trade fight with china. he will extend the deadline to raise tariffs on chinese goods beyond this week. mr. trump says there has been substantial progress in the latest round of talks. if there is more progress, the president wants to meet with china g asian florida to conclude an agreement. british prime minister theresa may raising the stakes in a battle with members of her own party who want to avert a no deal brexit. may once again postpone a vote to parliament. this on the agreement she is not trying to renegotiate. the new deadline is march the 12th. that is just 17 days before the u.k. is set to exit the european union. the eu may push for a brexit delay of up to 21 months. this would keep the u.k. in the block until 2021. more than three quarters of survey business economists predict the u.s. will enter a recession by the end of 2021. stillrity of those polls

expects the fed to keep raising interest rates of this year. those economists also expect president trump tariffs to reduce gdp. upset at the oscars last night. winning the academy award for best picture. it beat roma. the band queen rocking the house at the open. with its performance of we will rock you and we are the champions. hours later, rami malek winning the best actor for his performance as queens late singer emma freddie mercury in the movie bohemian rhapsody. global news 24 hours a day on air. 2700ed by more than analysts in more than 120 countries. this is bloomberg. back to you. tom: i love that. i thought it worked better than abc. the only one the audience who knew who brian may was. that was it. everybody else is a guy with a

group. tom: i was really young. i mistook brian may for someone with the italian family. he was the nicest person. i am still ashamed of that story. he is literally the nicest person i have ever met. francine: he is. and esteemed career in philanthropy as well. let's do and esteemed to data check. equities, bonds, commodities, futures advance of the last hour. the futures up 156 purity euro, i am watching carefully. i still don't get it. that is all i have got today. i notice -- stronger. tom: yes. we have a little m and a. this is something we have been watching closely for some time. i will bring you that headline and send it back to my data check. derek makes a proposal to buy -- and off starting -- austin deal. there was rumors of this deal to see that the financing it and -- and we will wait for each side

to come back with a proposal or not for the offer. this overall, is what i'm looking at. china and the fact we saw a significant rally in chinese stocks. the back of optimism over trade talks with president trump postponing the date for boosting tariffs of chinese imports. i am looking at dollar retreating bonds falling. tom: very good. more on the transaction here, and all stock deal, in a bit. right now, insist we have -- on today because of two research reports over the weekend. one was the -- and their iconic china research and a brilliant note had occurred from morgan stanley on the shift that is finally happening. this happened in japan a bit ago. we have china moving from a trade surplus to a current account deficit as well. to begin to be more like the united states. is there any understanding of the ramifications of this? tom: --

francine: i think it is something that a lot of people are still trying to figure appeared there are very different opinions on it. it is important to note that there are very different ways of looking at current accounts in different countries. the black box makeup of them is quite different country by country. something that needs to be remembered. i think the net takeaway is that china is shifting. becoming a capital importer. it is actively attracting foreign investors. tom: fascinating. one of the greatest assumptions of all this research is finally more consumption within china. do you observe that in china? i think there is no doubt that consumption is increasing and driving economic growth. you can see it anecdotally, you can see it in the growth of retail coffee chains. the arrival of the likes of

disneyland theme parks. you can see it in the movie office ticket sales. all the classic indicators related to terrorism. consumption is on the rise. --, how far can it go from here. there are some economists saying it has taken a hit over the past year. equally, there are those who tell you it is an unbridled optimism at the potential for consumption in china has a long way to run yet. francine: why is china euphoria spreading? should we worry about that because they still have a huge debt pile? i think, probably, the big takeaway at the moment is on the trade side of things. you only have to think back to november when we had u.s. and china threatening levees and countermeasure -- countermeasures against each other. it was routinely listed as one of the biggest threats to world economy. here we are with china and the u.s. edging toward some kind of a trade agreement. that is what is lifting sentiment on china and on the

markets. like you say, the death domestication has not gone away. the fears for china's debt story are still there. externally, there are economists who question who durable -- who question how durable any agreement is between both economies. it is a question of how long the good feeling in the good sentiment can last. tom: very good. thank you so much. appreciate it this morning. something to watch in the coming year. the great shift in china. from surplus to deficit. right now, we shipped to washington in the news over the weekend. martin joins us. bloomberg chief contact officer. we talked to stephanie earlier. even she was surprised by the depth of the detail of the mueller document on what they should do with mr. manafort. our team was very interested have detailed -- surprised how detail it was. it were -- there were a lot of rumors a killing that the report from mr. mueller was going to be issued this past friday. now, we are getting word that it is not coming this week, with

trump out of the country. it may not even come the week after. tom: it is not going to come the week after come on we go. then it can move off and all sorts of other investigations. stephanie reviewed that. how does it affect 1600 pennsylvania avenue? it has to be the mother of all distractions. guest: yes. trump has a personal legal team that is getting ready to actually issue its own report. if the mueller report and its offshoots present a narrative where they feel they have to defend themselves. no truee, if there is smoking gun, they can just say thank you and move on. francine: what will actually come out? we have been trying to figure out with stephanie baker in the previous hour, is a going to be varied, is everything coming out, is it going to be published? guest: that is the real question. adam schiff, the house ranking intelligence committee chairman, said that if the report does not get released in public, in

sue and form, he will the democrats will sue to have it released. no one really knows. anybody who speculates is doing just that, as i am myself. various scenarios where it could be just a one-page summary. there are scenarios where it could be a luminous hundred page detailed report. no one really knows. don't have any idea on what could be inside, we don't see leaks ahead of time? guest: i mean, i think it is clear that before any report is released, the white house will be told and, certainly, rudy giuliani, president trump's personal attorney, would get a heads up. and we get some semblance of an idea of what is in it. so, but in terms of leaks, pieces of information coming out of that report, bob mueller has

done an extraordinary job of keeping that under wraps. i would not expect that happen. tom: everybody they used is going to vietnam. a large continued going -- contingent going. what do we expect out of vietnam? vietnam.not it is not singapore. guest: it isn't. there are a number of observers who are questioning just what exactly we expect to get out of this second summit. and the really historic consequence of these two leaders meeting, there is still the north korea nuclear threat. is still with us. it is a real question what we are willing to get out of this. i like the idea of david westin as andrew mccabe today after 18 interviews. it is amazing how he is becoming more comfortable with the media as he goes through the gauntlet. guest: it will be interesting trying to figure out something new to ask him. tom: new, but the story keeps falling as well. francine: on hanoi, what is the

biggest concern? there seems to be worried that president trump will give something quite big for not getting much in return. in fact, among a lot of national security experts, the fear is that donald aside,ight, through an with no one present, make some assurance that it is against security interests of the united states and its allies. that is a concern. you know, i believe very much in show don't tell. it does not matter what they say, it is really the details of what is written down and what you can actually demonstrate. there might be lots of headlines. the question is what really was a compass. tom: thank you so much. the monday briefing here on all vietnam.gton and we will continue the conversation for 12:00 today.

fbi deputy director. this will be a most interesting and most timely conversation. that in the 12:00 hour. state -- please stay with us. from new york, futures up 13. this is bloomberg. ♪

francine: -- >> this is bloomberg surveillance. breaking news this morning in the mining industry. -- offering to buy u.s. rival in an off stock deal. a combination would unlock more than $7 billion in real synergy. chairs of newmont higher is

premarket trading. roast is betting $4.8 billion on the future of gene therapy. the maker agreed to buy sparked therapeutic. that would give roche one of the first ever therapies to treat a disease by proving a fix for a patient's defective genes. the price represents 122% premiums as markets closed on friday. -- will invest $4 billion in abu dhabi's oil pipeline in return, they will get to decades of guaranteed returns. abu dhabi gets the cash injection to help diversify its economy. in the deal is reportedly the first investment by foreign as the managers in the infrastructure of a middle eastern government owned oil producer. that is the bloomberg business quest. tom: think you so much. on the equity markets come on the melt up that you were part of, or maybe you missed, greg bloom joins us. as well. this is the theme, we talked to blackrock about this in the last hour. i missed this list, what to do i do now? >> i think if you are trying to

be investing in equities now you need be defensive in terms of how your portfolio is. equities now you need be defensive in terms of how your portfolio is. we have had a very aggressive rally against what has been deteriorating fundamentals. the economic data has been surprising on the downside. have seen done great come through pure u.s. earnings forecast resentment has improved around trade. the fed has helped markets through more devilish terms. tom: through what we have seen -- forgetout the about wall of worry, the wall of december is tangible. we have one hedge fund guy, a whoe broker guy, last week, simply said nobody participate. hedge funds did not participate in the lead up. what does that signal to you? is an i think that there issue that people have not participated in the rally. i think, certainly, the snp can follow about 2800 the more time we spend in that level, the more volatility, the more people are likely to be sucked back into the market.

as i said, given that fundamentals of been deteriorating, it was certain -- we would certainly be cautious about putting the money to work on those levels. francine: have they been deteriorating to the point where we could foresee a recession to -- 2020? there is certainly risk that we could see a recession. for equity markets, you don't necessarily need to see a recession to see equity markets traded lower from here. the s&p is now trading on an above average earnings multiple for earnings growth as well as a low, certainly relative to the history that we have seen recently. some of the quality of that earnings growth is pretty poor as well. i don't think we necessarily need to see a recession, even if the fears of a recession grow, i think we could see u.s. equity markets underperform. francine: what are you worried about, is a cap x, money not being spent, actual earnings growth? guest: i think it is earnings growth. we come from this back of a stellar year where we saw 20%

year on year earnings growth. the forecast forthe forecast fos around 10% year on year. does have come right to the way back down to 6% year on year per we think roughly half of that 6% year on year growth is contributed by buybacks. we think roughly half of that 6% year on year growth is contributed by buybacks. the quality of earnings growth is looking pretty poor.

we actually think it there is asymmetric risk to those forecast. there is more risk on the downside from here. does it come off of reduced

resident -- revenues or the income said -- income state? guest: it is a combination of flowing and record margins. the one part is the u.s. micro data remains very strong in the labor market data. we see a risk that you do see a slowing in topline growth. tom: do you see it now, do you see the labor functioning happening? guest: absolutely. it is something we have seen pickup over the last 12 months. there is a lack of slack in the labor market. given the context of slow and grow, we could still see higher wages. that will compress margins that are at record levels. francine: thanks so much. greg, stay with us. up next, another day, another delay. theresa may has postponed the vote on her brexit deal. details next, this is bloomberg. ♪ resident -- revenues or the income said -- income state? guest: it is a combination of flowing and record margins. the one part is the u.s. micro data remains very strong in the labor market data. we see a risk that you do see a slowing in topline growth. tom: do you see it now, do you see the labor functioning happening? guest: absolutely. it is something we have seen pickup over the last 12 months. there is a lack of slack in the labor market. given the context of slow and grow, we could still see higher wages. that will compress margins that are at record levels. francine: thanks so much. greg, stay with us. up next, another day, another delay. theresa may has postponed the vote on her brexit deal. details next, this is bloomberg. ♪ resident -- revenues or the income said -- income state? guest: it is a combination of flowing and record margins. the one part is the u.s. micro data remains very strong in the labor market data. we see a risk that you do see a slowing in topline growth. tom: do you see it now, do you see the labor functioning happening? guest: absolutely. it is something we have seen pickup over the last 12 months. there is a lack of slack in the labor market. given the context of slow and grow, we could still see higher wages. that will compress margins that are at record levels. francine: thanks so much. greg, stay with us. up next, another day, another delay. theresa may has postponed the vote on her brexit deal.

details next, this is bloomberg. ♪ resident -- revenues or the income said -- income state? guest: it is a combination of flowing and record margins. the one part is the u.s. micro data remains very strong in the labor market data. we see a risk that you do see a slowing in topline growth. tom: do you see it now, do you see the labor functioning happening? guest: absolutely. it is something we have seen pickup over the last 12 months. there is a lack of slack in the labor market. given the context of slow and grow, we could still see higher wages. that will compress margins that are at record levels. francine: thanks so much. greg, stay with us. up next, another day, another delay. theresa may has postponed the vote on her brexit deal. details next, this is bloomberg. ♪ resident -- revenues or the income said -- income state? guest: it is a combination of flowing and record margins. the one part is the u.s. micro data remains very strong in the labor market data. we see a risk that you do see a slowing in topline growth. tom: do you see it now, do you see the labor functioning happening? guest: absolutely. it is something we have seen pickup over the last 12 months. there is a lack of slack in the labor market. given the context of slow and grow, we could still see higher wages. that will compress margins that are at record levels. francine: thanks so much. greg, stay with us. up next, another day, another delay. theresa may has postponed the vote on her brexit deal. details next, this is bloomberg. ♪ deal. details next, this is bloomberg. ♪

francine: good morning. this is bloomberg surveillance.

we are expecting news conference by theresa may. we saw her play pool, snooker with the prime minister just 13 hours ago as the pictures of that doing the rounds on social media. we are expecting a news conference from the you caper minister. that is at 1:00 london time. that is in one hour and 37 minutes. delayed ay has parliamentary vote on her brexit deal. it would take place this week, she instead, set a new deadline of march the 12th. that is 17 days before the u.k. is set to leave the eu. if the prime minister cannot get a deal over the line, someone in brussels reportedly back in the delay of exit by up -- as much as 21 months. a tactic that risks in raging the hard-liners in theresa may's party. joining us is bloomberg's brexit editor. we would be very pleased if were to see an extension of 21 months. it would be more brexit use day and day out -- day in, they

appeared what are we expecting today? on wednesday, a growing group of lawmakers are going to try to force theresa may to take the no threat,eat, that is a walking away from talks about a deal off the table. may wants to keep the threat for two reasons. she wants -- see she thinks it will help the eu to give her what she wants her she secondly hopes it will convince mps to back her deal rather than collapsing over the cliff into a no deal scenario. she said that the deal on the vote on her deal would not happen until march the 12th. this is, again, you know, a continuation of the strategy we have seen may pursuing. the interesting thing is that both the scenarios now, whether

she is allowed by parliament to carry on going until march 12, will --er the amendment and amendment, is past on wednesday, both of us take us to march the 12th. -- both of those take us to march the 12th. francine: what this she need to negotiate with the eu? guest: that is the question. the eu is quite skeptical that there is anything they can offer that will get the deal through parliament. that is why the latest thing we have heard from the eu side is that if she wants an extension, they are threatening is if you cannot get this deal through and you want an extension to avoid no deal, what we will offer you is a 21 month extension. the eu officials said that the reason for this is because clearly there is nothing they can do to get this through parliament. they need to hash out the

relationship and what it should look like. other way of looking at this is the eu is saying it is dangling the threat of keeping the u.k. in the eu for another two years. as a way of forcing the just swallow theresa may's deal and get out of the eu and fulfill their career ambitions rather than risking staying for longer, but also the whole thing being reversed. much.hank you so our entire brexit team as the story continues to unfold. coming up, a most timely conversation with -- and akzonobel on running a company well. this is bloomberg. ♪ you.

all of you. how you live, what you love. that's what inspired us to create america's most advanced internet. internet that puts you in charge. that protects what's important. it handles everything, and reaches everywhere.

this is beyond wifi, this is xfi. simple. easy. awesome. xfinity, the future of awesome. this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. francine: bloomberg surveillance. we will give back to the markets. we will talk to the chief executive about the possible truth -- truce in the trade war

between the u.s. and china. let's get straight to the bloomberg first reviews in new york city. trump is delaying the deadline to increase tariffs on $200 billion of chinese imports. he says there has been substantial product -- progress in trade talks between negotiators and the president wants to meet with china's xi jinping in florida to conclude an agreement. beijing also found -- astounding optimistic and government run media also warning the negotiations may face what it calls new uncertainties. adviseruse economic larry kudlow says he is trying to remove u.s. tariffs on steel and aluminum imports from canada and europe. a canadian cabinet minister is signaling his government may not ratify a new north american trade agreement if the duties stay in place. canada retaliating against the u.s. tariffs by slapping duties on american products. north korea's leader is hoping to get the u.s. to ease sanctions when he meets with president trump in vietnam this week. last night, the president said that will not happen. kim is taking a lengthy train

ride from north korea through china to get to the summit. there is a dangerous stalemate in venezuela after a weekend of violence. president maduro using the byitary to crush this effort opposition leader juan guaido. this as humanitarian aid try to get in through columbia. at least four people were killed. 200 are hurt quite a meets in columbia with the u.s. vice president. -- and his main challenger claiming early successes in the general election, today, results will start coming out. the nigerian vote was marred by a delay and technical glitches and sporadic violence. four years ago, you may remember, bukhari became the first opposition candidate ever elected to the presidency. global news, 24 hours a day, on air. powered by more than 2700 journalists and analysts. this is bloomberg. tom: thank you so much. if you are ever so lucky to grow up in the house of a chemical

engineer, you understand that paint is gospel. it becomes religion in your childhood. the magic of benjamin moore and dutch masters and all the rest of them from another time and place. it is a new chemistry today, maybe a fancy pants luxury paint. or the others, maybe it is just you need the boat painted. if you do that, you use the same -- the thing called all grip which is made by a small start up akzonobel. we are thrilled that -- our chemical engineer, is with us this morning. how does all grip take the market? you have got one zillion pains. all grip is what you use. how do you do that? the secret is being a startup that started 225 years ago p have a bit of a head start. it is the quality of the products and also the whole service to the customer. in the whole boating industry, there is one of the strongholds since many many many. here to driveover

forward akzonobel is financial return a can of paint, a gallon of paid is delivered 14.4% per year over the last 10 years or do how do you maintain the integrity of those margins in a perfectly competitive industry? years, we last two really stepped it up significantly. rob material's have been going up over the last 18 months and really consistently. we have been looking at two ways is getting our prices up in the market because that is what is necessary. secondly, looking at our own cost you also have to look at your own cost. that is what we have been doing over the last two years now with quite good success. despite many headwinds in the political environment. francine: you are able to push through price hikes. how many more price hikes can consumers take around the world? to offset theed race of the raw materials since the beginning of 2017. we are getting pre-close to that. we're still a little round in the beginning of

this year. just because there is still ongoing live inflation. we are getting somewhat, to the end of the cycle. we have also traded debt -- traded down at some of our lower economic -- economy life. now, it is really around reestablishing our franchise and getting our supplies in to our customers. there is a limit. we have got great acceptance from our customers because they know it is transparent with the raw material market has been doing. francine: what do you worry about amongst your customers? is there an industry group? we are seeing a slowdown, you report on this everyday from the carmakers around the world. is that impacting akzonobel? it is a bit atypical because we have less exposure to the car oem market. we have had over the last two years, quite some exposure to the shipping industry. the big boats. two or three years ago there was 400 big tankers being built. to 1000 beer we

see that trend turning. the car industry has less impact in our numbers. tom: do you pick the color for deluxe spiced honey this year? guest: the color is picked by a number of trendsetters. i am not part of that group. tom: you opened your storage and shanghai. speak to the president of the united states renault about what the trade dynamic -- right now about the trade dynamic between the u.s. and china and how that affects you retail effort? guest: it has a huge impact. for a european-based company, we are trading in euros, what you see as consumer confidence is down quite a lot. that means people who don't see -- feel comfortable, the chinese and european centers save their money when they are uncertain. consumer confidence has been down a lot in the market. -- has been flat, which is unheard of in china since a long time. i think clarity on how things

go, independent, i think you will see stuff happening. francine: -- tom: tell me about raw materials. white pigment stock in western africa. tell us about one window into the raw materials demand of the payment industry. tom: -- guest: there is still too big categories. tom: i love chemistry talk. titanium dioxide. guest: you have the residence and the solvents which is really like of oral and gas and the capacity which supplies -- that has played a big rope your them old and escalating quite a lot over the last years. tom: too much organic. francine: what makes you worry about china? is there any concern about ip theft? is it underlying debt concern? be lessor us, it is may in those areas.

one consumer confidence affect if you are in decorative paint. a lot of it has to do with how well the real estate market is going. how will people feel they have to re-embellish their homes. that has been a little bit slow months. last 18 the second thing that worries us is local competitors who will -- you are playing in the economy side of the market. and you have been increasingly nervous and making offers which we believe are barely at variable costs of their products. that is continuing to really muddy the waters in that market. that is a bigger worry that we have seen in the chinese market. goodwill.us about we spent all day friday looking at the trade rick -- train wreck. you are what we say in america, button-down shot. how do you deal with the intangibles of the brands that you have? guest: we tend to be

conservative on how much goodwill. if you can't see the real number around it, we tend to get goodwill for someone lower. tom:tom: 10% versus the 40%. francine: -- tom: 10% versus the 40%.

francine: -- guest: that is correct or do you may regret having too much on this inventory category called goodwill. tom: 10% versus the 40%. francine: -- guest: that is correct or do you may regret having too much on this inventory category called goodwill. tom: are you stockpiling? we are pure we have close

to $1 billion revenue in the u k. we are a big player. it has been an ongoing your rotation in the meantime, having unclear on how it will happen. yes, we have quite some extra inventory in the u k. once we sell in the u.k., is often made in the u.k.. it is often for our supplies. often for the products we sell outside. we have been filing some products outside. frankly, if you look at warehousing, look at trent, there's not much more you can do than a extra months of inventory. we hope that reason is going to come back to the whole debate and have clarity very soon. as for our company, i think i am speaking before every ceo in every company out there who wants to see clarity in the whole brexit socko. tom: -- francine: thank you so much. the chief executive. staying with us is greg. in the meantime, we are talking with mr. ben lacher on brexit. we understand you can negotiator's will hold talks with michelle on tuesday. that is according to an eu official. the most media headline, theresa may and -- are holding talks in egypt on brexit and of course, we have the youth conference in about one hour and 20 minutes from the egyptian resort with theresa may, the u.k. prime minister. we will have a clearer picture of what she spoke to -- about. coming up, global investor senior global investment strategist. we will talk to her a little bit

about dollar dynamics and what happens to earnings in 2019. this is bloomberg. ♪ to $1 billion revenue in the u k. we are a big player. it has been an ongoing your rotation in the meantime, having unclear on how it will happen. yes, we have quite some extra inventory in the u k. once we sell in the u.k., is often made in the u.k.. it is often for our supplies. often for the products we sell outside. we have been filing some products outside. frankly, if you look at warehousing, look at trent, there's not much more you can do than a extra months of inventory. we hope that reason is going to come back to the whole debate and have clarity very soon. as for our company, i think i am speaking before every ceo in every company out there who wants to see clarity in the whole brexit socko. tom: -- francine: thank you so much. the chief executive. staying with us is greg. in the meantime, we are talking with mr. ben lacher on brexit. we understand you can negotiator's will hold talks with michelle on tuesday. that is according to an eu official. the most media headline, theresa may and -- are holding talks in egypt on brexit and of course, we have the youth conference in about one hour and 20 minutes from the egyptian resort with theresa may, the u.k. prime minister. we will have a clearer picture of what she spoke to -- about. coming up, global investor senior global investment strategist. we will talk to her a little bit about dollar dynamics and what happens to earnings in 2019. this is bloomberg. ♪ 9. this is bloomberg. ♪

tom: bloomberg surveillance. the day has become earlier in new york. there exciting. spring training in florida, getting us in the spring mood as well. we are in the mood for a single bus charter and we will delicately moved to this because greg really does not want to talk individual securities. which we do in the single best chart to upset the general counsel at bmp.

all you need to know is newmont and barrick, in black step, here is new pot -- newmont, relatively plus. the change -- train wreck known as barrett for the last three years. it is going back a solid 10 years as well. greg, the headline today is synergy. you are an equity guy. i want you to explain what to come of thise newmont barrett, everybody says immediately we will do synergies. how predictable are synergies? >> one of the things we need to think about is generic markets, we see high-margin levels. margins are one of the key risks we see going forward. the ability to cut costs when you already have very elevated margins is much more difficult. --: i don't want you to come comment on a mining transaction. do we begin to see a more heated

and a environment because things are, you know, you saw the scare of december? let's go all stock transaction. guest: i think we could certainly see, in this environment, more risk-taking on a corporate level. -- somethingly if we could see as a stigma that we are close in the cycle. we saw a lot more deals come through. francine: what do you do with volatility? is kind of the name of 2019, is it the one thing we have to watch out for? our whole view looking forward was we will have more volatility next year. we have had an interesting ride. bouncing all the way back up to 2800 people we certainly think that we will see more volatility this year. the vix has come down aggressively as the market has rallied be are we think it is an interesting opportunity to think about striking hedges and we do expect to have more volatility going forward. tom: -- francine: what is the most

unloved part of the market that you actually like? nott: i think it is necessarily unloved, e.m. is the part of the market we have a preference for. certainly seen the price action this morning, much more disproportionate reaction of china markets have had relative to the u.s. markets to news flow over the weekend. although there have been a lot of inflows recently into e.m., your e.m. has underperformed from number of years. certainly, the price action this morning's adjust that could run further. let's avoid the banks. i don't want to get you in trouble. american banks did not participate last year. our reviewou know, for this year is somewhat cautious. we see where ten-year rates are. we see the relative flatness of the yield curve in the u.s.. i am not sure that banks would be our first call if you're trying to add risk to the next report fully appeared -- report. we are trying to find pockets of

quality that we think a be more resilient and more difficult market environment. there are some sectors of tech that we like. the corporate's that have less leverage and the balance sheet and more sustainable buyback programs be a we think could outperform in a more difficult environment. francine: what are the subsectors of tech that you like? data miners? guest: we would not necessarily go down to a sub sect level in terms of trying to take names on that basis. what we try and do is focus on themes. balance sheet is one of the themes that we look at. it's called to have no leverage on cash for the balance sheet and already aggressively buying back stocks. is the types of themes that we look for. quality, balance sheet quality, sustainable buybacks. francine: how much focus do you put on buyback? other any sectors you're not sure about valuations but because they give back to shareholders, you want to be in them? guest: generally will be looked trying to do is rather than

screen by sectors, we would not generally have a more optimistic view on some of the domestic and cyclical sectors, rather than screen a portfolio based on the sectors, we would rather try and look for the corporate's, the basket of corporate that more sustainable margins and we think could sustain buybacks rather than cut buybacks in their growth slowdown. tom: think you so much. i want to bring your attention to a tweet that is just out from the acclaimed investor mario cavalli. good media. very good in mining. the tweet is garbled the let me talk to you right now. the tweet is garbled the let me talk to you right now. mario tweeting on newmont. newmont gets marriage proposal from barrick, it is a stock deal with the numbers. this is conditional. on newmont dropping the deal with goldcorp. i think francine has really showed mr. cappelli that huge complexities of the massive consolidation that we are seeing in the gold mining business. francine: we have to of course,

continue following anything that happens with that possible deal. in the meantime, coming up, the conversation with --. the former india reserve --ernor, look for that if interview, 6:00 in new york. 11:00 in london. this is bloomberg. ♪

tom: -- >> this is bloomberg surveillance. let's get the bloomberg business flash. -- announcing its own fuld and smartphone to challenge the one just unveiled by samsung. the -- unfold into a small tablet like samsung's galaxy full. it will cost $2600. the market for small -- smartphones is slowing. manufacturers are searching for ways to convince consumers they should upgrade their devices. -- is rolling out new 5g chips for cards, pcs, and home broadband. the company's president about what this means for the industry. are here toreens stay. you will see the opportunity for larger screens and see how flexible that technology. you are also going to see

devices, they are more specialized for more capable gaming because 5g will allow you to have mainstream gaming. on 5g devices. devices, will see there are going to converge between productivity. over time, we expect to see virtual reality or augmented reality devices. it will be using 5g technology. we hope it will look like eyeglasses. >> warren buffett's berkshire hathaway now has a cash pile of $112 billion. and is looking for a giant acquisition. buffett does not think that will happen soon. in his annual letter to investors, he said businesses with decent long-term prospects are looking for skyhigh prices to be acquired. buffett writes that will lead berkshire to buy more public stocks this year. that is the bloomberg business/. tom: thank you so much. the main meaning will be something good our chance there will be at the main meeting in omaha. beat, on the buffett

which is a bead wrapped around playing the ukulele and smiling a lot. let's look at a chart that is not funny. this is a chart we showed friday. i can show you at the time cap, i got it wrong. here is -- using craft together. the failure of craft. here is where it was friday. we even turned up much lower again. if you say it over and nbc, does not want to buy more craft. what is next? guest: i think you brought up some good points. craft really stung on me. took a $2.7 billion loss because of the breakdowns. he does not want to find more. frankly, he cannot. he is sort of stuck with a lot of these positions that are because he is so big and so hard, tom: he can only do these megadeals pure it when is the last megadeal that worked out? wast: the really big one 2015. 2016. it has been a long time. he has done some small deals here and there. even last year, the small deals, less than half of what he made

in 2017. francine: he is sitting on a huge pile of cash. saying he wants to buy something mammoth, what would that be? there is a lot of assets that you think are up. look at general electric and they are selling a lot of stuff. the competitive environment. there is a lot of private equity buyers out there. frankly, who are willing to pay a higher price. i think that has been the main barrier. got crafts pretty wrong. he is just saying he overpaid for it. is there anything else that he is been particularly bad with? guest: there are some other bets were he has sort of, there are questions about whether it will actually be a long-term got one. when you look at coca-cola, they have had some issues recently. it is the shift in consumer preferences and how does that play out. i think it is kind of the question of can he actually, you know, check and see with the consumer is doing in a long-term way. tom: he is known to have a very

thin skin. buffett been on the once now for three or four or five years. are we going to have a lot of ukulele planning -- playing at this meeting or is he really going to address the buffett methodology of buying into these companies and watching various and sundry failures concern. -- occur. guest: i think shareholders what have answers to this question. i think he is careful. i don't think he will always do through onig walk what went wrong. i think sometimes, he is willing to say we overpaid for craft. that was not a great one. i think there are times where he is willing to pay. is his addiction still the ownership of the big preferred coupon coming in were he is making 6, 7, 8%, especially on a cash flow basis. francine: i think he loves those deals. those have not been propping up since the financial crisis. he does well in the market is

down. there has just been a rising market for too long. tom: thank you so much. -- with us on the buffett watch today after that note or she will attend in omaha in a good number of weeks you have got a lot more to talk to about. news flow including is -- this mega mining transaction. the transaction of great complexity. some of the optionality that numa, let me make clear, it is a hostile attempt by barrick of canada. we will drive for the conversation on bloomberg radio. stay with us, this is bloomberg. ♪ this isn't just any moving day.

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francine: francine: francine: trump trade truth. the u.s. push spec a march 1 deadline for increases on china after substantial progress in trade talks. which means is it risk on or caution. and the rally stumbled a bit in the u.s.. it has rallied back on as china warns of new uncertainties. brexit delay. prime minister theresa may says my 12 is the next brexit vote in parliament as she tells angela merkel that she does not want an extension. >> welcome to bloomberg daybreak america on this monday, february 25. i am happy today. green book. >> like the one you saw that you like. you did not like the favorites. >> i was not a big fan. i did not like roma. i am not a real aficionado. i really like green book. >> i cannot believe that glenn close did not win. nominated seven times. she is nominated the most ever and not one. that is something specific you don't want. >> and a great performance. a really great performance. >>