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. >> apparently, the dress way to

like 42 pounds. like putting a pregnancy on you for an evening and then taking it away. >> kind of sad. >> the markets are not said this morning. you have a good, positive tweet over the weekend on sunday which seems to imply that we will have a trade deal. we will not have a tarik cohen out on march 1. that was the ignition for risk on rally. a bit of the dip earlier. bytinuing that as futures up 12. euro-dollar up by 3/10 of 1%. complete risk in the fx market, selling in the bond market, nothing too huge. in light of the risk value that we have seen. trump tweeting not letting the rallies we have seen in crude go. here have got some news for your you will be particularly interested in general electric -- electric making a big sale. they are selling it to dinner. >> that is interesting. very cool.

let's talk. more than 4% and the free market are we knew they would sell some stuff you that is a big sale. 24, $4 billion. >> also quick. inside our relationships healthier. david: you remember her saying i'm going to pay down the step. i will get the leverage down. he was very emphatic about it. no doubt, help him. >> you are definitely right. david: morning brief, tomorrow, president trump will head over to vietnam to meet with north korea's kim jong-un for a two-day summit starting on wednesday. also on tuesday, fed chair jay powell goes up to capitol hill and appears in the senate for the first of two days of humphrey hawkins testimony. does that every six months. get theday, we finally first read on u.s. gdp growth in the fourth quarter. flows numbers have been to -- delayed because of the government shutdown. it is time for first take. for today, more a schenker. he is our bloomberg chief content officer. and lisa, who is a mainstay.

delighted to have you with us. >> love it. the china's start off trade. big development. this friday was going to be a deadline. going to be a deadline. not going to happen. this is the tweet president trump came up with her damage etc. progress. he will put off that deadline for the new tariffs, which are supposed to be this friday. he did not say until when. >> you know, and a lot of people had wondered whether he was going to be as tough with the chinese at the expense of reaching an agreement. you know, it was my view that he was desperately wanting to be able to say things are going well. to have a win. he does not like to see the stock market drop. which would have happened had these -- gone into effect. he has a vocal victory, if not a real one. >> to that point, part of me was reading and weekend, like kaiser and president trump, how they are in disagreement because light visor is more of a hawking

-- hawk and president trump. seeing the rally, is that all he wants to see? >> i love the argument on camera about what a memorandum of understanding really was. the definition of it. it underscores the tension. tension, and is a turtle tensions developing in china where there is skepticism, certainly by business leaders, of president trump and his mind on a dime. much to give. president trump is talking more about the intellectual property issues and some of the other thornier issues. as people realize, look, we don't want a band-aid. we want something more substantial. this is going to make it more challenging for president trump get a simple victory. everybody is worried about how much the markets are dictating policy. we had jay powell, a 180. people were speculating to have people within the administration who are saying the president may be too concerned about the markets. , you know,nk that

the markets are tending to be superficial in that respect. as long as the top going headline is that china trade tensions are going away, markets are going to react positively. for businesses, how do you make policy when there is nothing really written down that you can trust? trump's point, a memorandum of understanding is just that. and the amp -- enforcement mechanism which is the really difficult thing has yet to be disclosed. >> fairpoint. china's reaction come overnight, we saw that there is still a lot of differences, very substantial differences. the s&p futures moved lower on that. well below the session back to the highs. nonetheless, consider if you want to buy this risk rally. >> there is a lot of question about what is xi jinping's ultimate gain is pure it how much power he has in terms of the upper hand, the lower hand, with president trump. stephen roach of the l -- yale university wrote an op-ed in the syndicate that i thought was

adjusting, came out yesterday where he was saying that he thinks china has the upper hand right now. given the fact that longer-term, they are in a better position, the u.s. economy is slowing. his argument is that china actually is self-inflicted the pain that they are feeling and their economy. george appeared a lot of people disagree. there is still a question, clearly a question within china as well p are basically, how long do we hold out and what do we demand for president trump? >> and are we getting out of our skis. now.tle bit more muted still, you saw the s&p futures are up. getting a little ahead of ourselves. >> we very well may be. i also think china is playing the long game. along came, for them, extends beyond the 2020 election. whether or not you think donald trump will be reelected, they can just basically wait this out. they can get topline headlines and then just wait for the 2020 elections. over ¥900r was

billion. >> the stock market is back in china. president trump affected one market. we had enough geopolitics pure let's go to britain and what is going on over there. a big vote on wednesday. theresa may has come out and said we will put that off until march 12. only seven days before the deadline. you can see congress bouncing all over the place. overall up without a doubt. we are seeing this play out and out and out and out. >> it is adjusting to me because -- >> i heard that i'm so tired of brexit. i am absolutely tired of brexit. i am putting it on the record. you know what, so is the rest of the world. i am not alone. i will stay -- i will say this. may, sheect to theresa is being wise here. in the sense that if you take off the specter of hard brexit, it is a lot harder to heard these cats, which is parliament. essentially, if she at least had that sort of potential problem hanging out there, it could push

people together for something that is very unpopular. i think that is the reason why she does not want to delay the deadline. >> in the meantime, she is in a shake with other leaders. the reports, perhaps, the eu wants to help her of it. you know, an extension, it will be a long extension, which might cause the people who want brexit do go along with your plans so we don't have to wait that long. >> they can extend it for 10 years and it was still not be, we will be talking about it on the morning show. getting brexit fatigue. no question. at our news meetings, when we talk with our colleagues in london and, so what is the bottom line, they just throw up their hands and say who knows. thanks very much. we do want to recap on the breaking news from the top of the hour. a biofarma unit did enter her for $21 billion in cash. they will finance both of them

at $3 billion of stock issuance as well as new debt. as david pointed out, isn't that nice, one of his little buddies and saying you want this. >> it is part of an overall strategy who he said he will have. they were not moving fast enough as you pointed out. moving along pretty quickly. cash is really important. he needs it for his balance sheet. >> and may be taking the pressure off for the short-term it we will jump into that. coming up, more on u.s., china trade. global forex chief market strategist. head of global research and chief investment strategist or this is bloomberg. ♪ china has been terrific. we want to make a deal that is great for both countries. ♪

>> this is bloomberg daybreak. bageled is taking a big step increase in the world's largest gold producer. the canadian miner has made a hustle $17.8 billion offer for -- offer for its american rival. barrick's offer values newmont at 8% less than friday's close. earlier, the ceo blasted talks about a takeover as a desperate and bizarre move by barrett. roche is betting $4.8 billion on the future of gene therapy. the drugmaker has agreed to buy sparked therapeutic. that will give roche one of the first ever their piece to treat a disease by proving a fix for a patient defective gene. the price -- crisis represents 100 to do -- 122% premium close on friday. general electric resumed its assets as it -- for what is

being called quote a total consideration of 21.4 billion. ge expects to use the proceeds of the sale to reduce leverage and strengthen its balance sheet. so much.you i should point out that ge is no looking at its highest intraday gain since october. monster valley there. for ge. trade trucet is extended president trump pushing back the tariff deadlines after negotiations making headway tweaking the u.s. has made substantial progress in our trade talks with china. as a result of being very to -- of the very productive talks come i will be delaying the u.s. increase in tariffs for now scheduled for march 1. as --, even though china state-run news agency talked about uncertainties. during the from miami is --,

head of global research and chief investment strategist. on the phone is mark chandler. the global forex chief market strategist are you buying this risk on rally? >> look, i think this is certainly a time to be in the market. i think that, of course, everyone is playing their book here, china is doing same thing that president trump is doing. i do believe that we are coming close to at least a framework. i really appreciate all the bearishness that are heard in the last segment because it gives me in my clients the opportunity to, if the market moves in relationship to more pessimism, by the markets, that is what we have been doing. i've been on your program from the fourth quarter of last year telling clients in the audience to go long come emerging markets purity emerging markets has done exceedingly well on both trade optimism and the fact that u.s. recession risk, which everyone was talking about last quarter, is certainly, definitely, less, less of a, less of a possibility. buy more. we are happy -- happy to talk the markets down so you can buy. let's ask how much of your call

is based on the assumption that this trade deal does stay on the rails. this thing has been all over the place. from tweet toknow tweet, how much does that affect your call? >> that is a great point. there are two things that set the markets down last year. one was talking about the fed. if the fed will take this recovery down by doing too much or too little. there was fed risk and trade wars. trade war is certainly the key for 2019. in the event that things go wrong,y wrong, horribly and we get a resumption of trade tariffs, and we get, david, as president trump had previously threatened, tariffs on the totality of imports, remember, what was going to come back was tariffs on half of the imports that we get from china. if it were to get to that event and we would actually get that apocalyptic- scenario, markets pricing in december, of course, it would take emerging markets a lot lower.

it would take u.s. equities lower. my, my, my at that contention is we will not go back to that, to that level of pessimism. >> the lesser-known -- mark, the other part is the trade deal we heard about over the weekend with this currency provision. what is that? don't have a clue. i don't think anybody else does accept i say two things. one is that there are no details announced and the latest news over the weekend was that there is still some disagreement about how it will be enforced. it isk, to her point, and the euphoria in the market, i don't know if we really know anything that we did not know before the weekend. anybody knew there was going to be a delay. primarily, it is a chinese and an asian equities story. to the point about the reality in emerging markets stocks, it is true, i think, rather than a fundamental story, it is a reaction to what happened at the end of last year. the nasdaq is up every week.

state of the emerging market is up all but two weeks. i think at the end of the day, we don't really know anything more about the currencies. >> does history tell us anything about a possible deal? have we had a lateral -- picking the currency at this point? has this happened before? has it been successful? >> i don't know if there has been a trade agreement such as this. i do think that, you know, we do see in the new nafta agreement, there is a clause about currencies and i think it is really meant as a template, as a pointer so that to set president with china. there is cause for more transparency and intervention. of course, the federal banks in canada and mexico are not your typical intervenors in this exchange market. i think a clause is inserted as a precedent for china. we still don't know what stability means. or over what time. stable against the dollar organs the basket.

there is a lot of uncertainty here. i would not expect any major agreement for the chinese to continue to intervene, either side of the market. >> nevertheless, are there any displays thatt disney became more interesting today versus on friday for you? displays that disney became more interesting today versus on friday for you? >> sure. i would like to at the usmc is a clear example of what has happened in history. to david's question earlier. . to david's question earlier. we got a lot of talks, the markets were very volatile, and.

to david's question earlier. we got a lot of talks, the markets were very volatile, and have the peso was up and down, left, right, center. the -- was nothing would come of it. at the end, something came of it. . to david's question earlier. we got a lot of talks, the markets were very volatile, and have the peso was up and down, left, right, center. the -- was nothing would come of it. at the end, something came of it. this relationship is so important and since it allies on both ends to come to something, he is right. everyone was inspecting a delay. everyone was inspecting a delay. i think it is a good sign that we are working on further concessions. we are in an emerging market right now. i think that brazil has done and you can continue to see more upside of their. i like the emerging markets and you can continue to see more upside of their. i like the emerging markets index because it has china in it. it has asia and it. emerging markets, alex, remain and undervalued. and undervalued.asket of em,

if you play the basket of em, the emerging markets index, you're getting a lot of exposure to an asset class that is going to outperform the belt markets for the entirety of this year. >> to that point, rosa what you to that point, rosa what you think happened with of the dollar u.n. and what that means for china intervention, can we agree that we are looking at a weaker dollar policy globally? a i'd think that is pushing little bit. i think that the idea of a stronger -- a weaker a little bit. i think that the idea of a stronger -- a weaker dollar is too much to read into this quite yet. i think that, generally speaking, the federal reserve, you typically want your currency to go in the direction of monetary policy. your currency to go in the direction of monetary policy. i am not sure that, you know, we have got this agreement now, it looks a kerry but he the fed wants to finish the balance sheet reduction this year. fed wants to finish the balance sheet reduction this year. but, it is still not really willing to say they are done with interest rates. i think it is a bit early to say we have got a weak dollar policy. >> ok. global forex, thank you so much for joining us today. captain of baltic wants to be staying with us. ge gets its biggest interest they boost since october after announcing it will sell its biofarma business today in her. we will have more on the $21 billion cash deal next. this is bloomberg. ♪ xt. this is bloomberg. ♪

>> we returned to breaking news. ge is selling biofarma. a total consideration of about 21.4 billion dollars. shares are up about 8% in the premarket. poised for the highest and two-day gain since october. joining us with more is broke. bloomberg opinion columnist. take us through the deal. >> it is about $21 billion. 21 billion in cash. assuming about 400 million of pension liabilities.

important because it ge has a significant underfunded penned -- pension liability. one of the biggest on the s&p 500. some of its past transactions, they have not passed on the liabilities. to see them doing that is a positive step. obviously, this is a lot of cash coming in the door for a company that is rather cash strapped. it is another meaningful piece of this, it takes some of the heat off general electric -- electric. >> have you had a chance to do some rough numbers? we have had someone say we got the leverage down. specific targets but how we will take it down. how much of this does that accompany for him? >> i need to run some of the numbers. this is a meaningful step forward. this will go a long way. that is why you're seeing the shares up so significantly. this is a really sizable step. what is not clear is what they will do with the rest of the health care. they pre-have built take said they are going to ipo. this is the best part of that health care business. it is the fastest-growing, the sexiest. sort of the most appealing to

investors. when you take that out and -- i'm not really sure what that means for the rest of the business. if it was me, i would keep the health care assets in the company and use the cash flow. you really need the cash flow to offset the cash burn that you are seeing in the power unit. they still have all of these funding needs going forward. while this does alleviate some of the stress on the balance sheet, you'd have -- you do have to work out the cash flow map going forward. >> what their left for is not bad, it is just not growing. the ratenot growing at of the sciences app. the sciences app. it does draw up a lot of cash, which you cannot say about the power business or aviation business going forward. you think about some of these investment cycles of the probably have going forward. >> -- is an operator. you are always in danger when you have something that is not a strategic asset that you're throwing up cash on how you manage. how much bandwidth intakes. you want to spend your time on things that will grow.

i think he does come, but he does not have the luxury of doing that. given the balance sheet i thinke does not have the luxury of doing that. given the balance sheet concerns, and the challenges of power unit and ge capital, he has to run the company for the balance sheet and for cash right now. which is why you're seeing him sell out this life sciences asset. there were speculations before about -- making a bid for -- when john flannery was ceo. ge said no at the time. now to see him taking this step, this is a move for blonde -- bondholders. that is what use answering for with this myth. >> it sounds like a big first step in the direction you said he was going to go. a big ticket item. understand what it is for ge, it takes care of some of the letter problems. as you said, it helps the bottom is. dan said it will be $.50 per share. that is a lot. if that is right, this is a really good deal. >> it is. he is not for being a great capital allocator. they do a deal, bring the businesses in, find a way to run them better. i think, you know, ge health care is one of the better pieces of ge. i think what we have learned from this crisis is that this company was maybe not managed as well as it could have been.

especially on the cost front. in terms of just sort of being part of the conglomerate, dinner heard just really knows how to run businesses. i think that may be playing into some of these secretion numbers, life signs of the businesses that internet as well. i think this is a really smart deal for dinner. >> does put anything us on the table to be told that we were not necessarily thinking about it comes to ge? >> i think this is a very big debt. as far as the assets that ge has to play with death, i think this one of the more significant ones. one of the g cap is the other one. they were leasing businesses. the rule out of sale is that i think this is probably the, you know, it is painful, maybe fran equity holder. it makes a lot of sense. >> thank you very much. coming up, energy's new reality. we will talk to -- of credit suisse. this is bloomberg. ♪

"bloombergis daybreak." i'm alix steel.

announcing holding off on tariffs. china, hugearted in move. turnover in chinese equity is the most since 2015. spread to europe wasn't as strong and that continues to the u.s.. the technology sector in the u.s. one of the best performers. zealand dollar is the biggest risk on currency trade at .6%. the spread deepens a touch at 16 basis points as we look forward to the fed announcement on policy. drops, thanks president trump. david: opec has to listen to him. it is time to find out what is going on outside the world.

the president says he will extend a deadline to raise tariffs on chinese goods jan this week. he says there has been substantial progress in the latest round of talks. if there is progress, the withdent wants to meet presence using ping -- xi .inping in florida in a tweet this morning, he told opec to lee's relax and take it easy. he added the world cannot take a price hike. the price is near a three-month high. is a dangerous stalemate in venezuela after weekend of protests. the president nicolas maduro using the military to squash this effort led by the opposition leader to bring humanitarian aid through columbia. four people were hurt, 200 are in neighboring colombia.

global news 24 hours a day, online and at tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm viviana hurtado. this is bloomberg. it was a weekend of violence and tear gas in venezuela, but nothing had changed, it seemed nicolas maduro still in control of the military and none of the aid reached any of those poor people. it is a terrible tragedy what is going on. we can only hope and expect at some point it will be resolved. as an investor, do you look at this as a potential opportunity? >> this is an excellent opportunity. think of it as east germany before the collapse of the berlin wall. this is a destroyed economy and failed state that has to be reconstructed from ground zero. the country has the biggest oil resume -- reserve in the world.

look at food and tourism and areas. it is timing and who knows when it will be maduro. drug trafficking is a big deal. that is when a the main reasons he is still hanging on. david: i am fascinated to the analogy to east germany. but east germany had west germany with deep pockets and they funded that and it cost a lot of money for the german people who will fund this? who will step up and then grow this big investment. oil and theyhas are sitting on a massive pile of cash. with the help, it will need to explode immediately. when you get juan guaido to take over as president and when maduro leaves, you will get that

doing very well with a lot of investment, especially from u.s. and private companies to take off. that is what needs to happen. alix: stick with us. , afteroil extended president trump told opec to relax. crude headed for a weekly gain and prices could rally further. there is attentional to move higher. our view is that oil supply is going to be tight until the third quarter, when developments coming to the states. there are pipelines being built to help bring it to the coast. alix: a big part of that is venezuela.

we are joined by the credit leader.lobal energy i want to get your expertise on oil and gas. president trump talking oil price with the continued bearish news out of venezuela. function of a variety of things and has been for a long time, certainly some the supply-demand issue. venezuelan production has been , and thereing down are a number of hotspots beyond venezuela. alternately, it is supply and demand and opec listens to the president. but neither the president or opec are the final arbiters. alix: it kind of goes on its own. osmar: let's not ignore shale oil.

earnings thatn you got mixed results when it came to cutting capex, pioneer, reacted differently. what does that mean for your world? we are in shale 3.0. 1.0 was the beginning. it is an unconventional industry and has only been around for 10 years. you do not have a lot of data points going to far back. shale 2.0 was after the commodity crash where everybody had to recover from that. that is where there was massive reacquisition. now we are at 3.0. you not only need to make oil but make money making oil. that is the period we are in. there is reshuffling as to who

can operate in that regard. that will lead to likely consolidation because valuations are generally better on absolute and relative basis. it is fair to say that they are buzzing a bit. 2.0, how much was driven by money? do the show producers have the same access to credit? have access to capital in a variety of different ways. the public markets are maybe not is plenty ofhere equity capital and plenty of debt capital available. the companies are listening to shareholders and just because they can raise the capital doesn't mean they should. it makes the job quite interesting. issuance dry at it

spell. catherine, you are an investor. do you want to put that to work? shale has been exploded quite a bit. oil prices in general will be topped out at $60 per barrel on wti because you have oil and u.s. shall being efficient and so much production. you also venezuela dropping over 15 years. once you get investment decimated and want to get it back and you can see resumption to go back in. oil prices will stay low and it will be offset by community -- supply and demand.

alix: the ipo's have been lackluster. what is your pipeline like all across the board. osmar: there needs to be in equilibrium. we and the rest feel that we have a healthy pipeline and we have not gone into that new issuance period at this point. that will change as the market stabilizes. a lot of people think oil prices stay where they are all potentially go down, but that is ignoring geopolitics. one thing we should be thankful for and the administration fully understands is the unconventional shale business has created a two minus amount of energy security for the united states. i would also say from a national perspective as well.

it is important to maintain a vibrant unconventional shale business. the capital will be here, but it is finding the right time. alix: thank you both very much. continued news about ge selling its biopharma unit two danaher. the latest is that the ipo is table after the danaher deal. the cash cow does not have a lot of growth and they are sticking to it. that: brooke sullivan call -- called that. they are exploring options for the imaging after the biopharma sale. david: we will continue to cover it. coming up, buffett is still shopping. ceobook sure -- brookshire is sitting on cash and looks toward a massive deal.

more on that. this is bloomberg. ♪

, global coming up investment strategist at principal level investors. -- principal global investors. is "bloomberg daybreak. huawei announcing its folding smart phone challenge the one unveiled by samsung. it folds into a small tablet. it will cost $2600. the market for smart phones is

slowing. they are searching for ways to convince consumers to upgrade devices. j.p. morgan chase is asked to leave its ipo. bloomberg has learned offering for the home exercise start up at more than a billion dollars. they sell exercise bikes and treadmills and livestream fitness classes. berkshire hathaway has a cash pile of $112 billion and is looking for a giant acquisition. buffett doesn't think that will happen soon. in his annual letter to investors, he says his misses with decent long-term prospects are looking for skyhigh prices to be acquired. that will lead brookshire to buy more public stocks this year. that is your "bloomberg business flash." buffett released to shareholders letter and talked about the $112 billion in cash. for more, we turn to taylor riggs. taylor: warren buffett opened the letter talking about the gap accounting rule that he is

unrealized gains and losses. see the wild swings with losses in the first and fourth quarter relative to gains. he says, continue to focus on operating earnings that the wild swings are not representative of his business. moving down to page four, we talk about the difference between dividends and retained earnings and they paid out $3.8 billion in dividends but he praises the company using the retained earnings like amex to reinvest shares to buy back shares and that creates more on a dollar per dollar basis. into the terminal, we typically look at both the value and warned buffett says that is no longer a good way to value the stock and it will switch to looking at market value. they will engage in some share buyback. even if it is ahead of market value, as long as it is below in

value, they will buy shares had use of cash always a big story here. in my terminal, you have $112 billion of cash. unfortunately, prices are too skyhigh and while they want to maintain some cash reserve, this is excess of markets and it just doesn't look at enough right now. david: i want to pick up on what taylor said. he is sitting on a growing cash pile. is, the bargains are there and the values are too high and i will not let the money burn a hole in my pocket. he doesn't expect to buy more shares in companies then buying them outright because it is too expensive. alix: will he buy more in that time? apparently he didn't sell. david: he said he still believes in and has just said that in the last few minutes. alix: with apple, that seems to be an interesting by. -- buy.

david: he said he was too late getting into apple. alix: we will turn to wall street be. first -- beats. ceo gone.wells fargo elizabeth warren -- on wells fargo. the kkr in the pipeline of blackrock and kkr and they agreed to invest $4 billion in abu dhabi oil. deutsche bank lost ground in fixed income and equities trading last year while j.p. morgan solidifies its leadership. david: we have to go through it peggy collins who leads bloomberg's u.s. investment coverage. let's start with elizabeth warren. the case and has written a second letter to jay powell saying do not let these guys off the hook. peggy: she has been pounding on

it and is now on the campaign trail and the voice is getting louder. our colleague had a great story out last week saying a lot of people are pushing for this but it is hard to replace a bank ceo at a bank that is had struggles in the past. that is part of the problem. if you are going to take some of from the outside, it would cost a lot and they would have to pay top dollar and that would cause proms with shareholders. david: -- problems for shareholders. david: if jay powell goals along with elizabeth warren, they have to ask how much it is costing us not to grow the business. seems to sayard they have made improvements and they are sticking with him. where do you find a person who might actually take over from him? alix: did warren buffett talk about wells fargo? david: all of the time. at almost every annual meeting they talk about what went wrong

and need to talk about problems in jump on problems. he admits it was a mistake. kkr and blackrock investing $4 billion in abu dhabi pipelines. they partnered with the oil company there and the oil company is going to siphon off and committing to run oil off and blackrock and kkr get the other half. peggy: we have seen retail investors like the pipeline as a play because they kickoff income . it is a stream of income people life -- like. this is the first foreign investment in a middle east pipeline of this size and degree. is one of the places in the world where they are trying to transition as the oil industry evolves. alix: you brought up investor interest. they have a dividend stream and a pull to use the pipeline but they have taken debt to build

them. whokkr and blackrock offered to finance the deal, you do not have to take on as much debt and it is a different structure. peggy: it could work out for the country because they get the extra financing and maybe they invest in research and development in the industry overall. david: j.p. morgan is gaining market share in equities and fixed income at the same time deutsche bank is losing. it is not one to one but seems like a coincidence. alix: we were wondering who was going deutsche bank. peggy collins: last it was a tough year for deutsche bank. it is not been smooth. that a number of european banks lost shares to u.s. banks last year. of them will be restructuring and you are seeing u.s. banks take the lead on equities and fixed income. presidentpean council

speaking at a news conference in egypt saying a delay of brexit would be rational and the greater chance of brexit delay as time goes bond -- time goes on. what would you gain? david: the reports are saying, let's have a long delay because that will force the members of parliament to vote for the deal. whether that is to are not, i don't know. saying no, i may don't one an extension for her party to push back as well. david: we have march 29 coming along. up, the robert mueller report may be coming to an end, the will the public get to see it? more on what i am watching. this is bloomberg. ♪

david: this is what i'm watching. is it -- it is robert mueller's report and many say it will come out this week. what comes out and who needs to see it? he has to give it to the new attorney general, bill bar. barr. democrats are saying they want to see it. there will be a big fight on how much we find out from the report and how much we will see you had adam schiff who heads the house committee and says they will subpoena and take president trump to court because we want to see all of the details. george stephanopoulos interviewed adam schiff and they said historically when you

decide not to prosecute then you don't disclose all the information. but remember hillary clinton and the emails, the republicans demanded to see the emails and it was 18,000 pages in congress. alix: now they are using that. walk me through the spirit why do i care? what is it going to tell me? david: is there something in there that would indicate the president should be either indicted or impeached? or the flip side, there is nothing and to clear this up and get it behind us. president trump keep saying no evidence of collusion and we should have it behind us here presumably, that would take a cloud away from the presidency if that happens. alix: you would think either way there should be something definitive. david: that is part of the reason it is troublesome because we are fighting whether or not we get the report for the next two years. alix: would that be nice to have the clarity?

you shouldthing watch is the possibility that robert is smart enough to give a short, definitive report. alix: we will be talking about this later on. david: we have andrew mccabe, acting fbi-- former after james comey was fired talking about his new book. alix: a principal global investment strategist on a risk on rally. started by china and spread and now in the u.s. u.s. has a monster rally after selling its big pharma -- biopharma to danaher. this is bloomberg. ♪

itx: trump's trade true and

chinath pushes back while warns of new uncertainties. the great insulation debate. dominance inflation targeting network as markets look toward a testimony in front of congress. geez -- ge's sigh of relief after selling their biopharma to danaher. "bloombergome to daybreak." i'm david westin. president, saying it would be irrational to have an extension. alix: he says that he bags a brexit delay.s a

as you pointed out before, the political posturing is here. avid: she wants a term in -- delay in the vote. to put it off to 17 days before the exit and you won't be able to get the legislation done. alix: this is just the agreement to exit and not the actual agreement to do stuff which is a whole different thing. david: what will that look like? markets, nothing crimping the risk on rally. in china, chinese stocks soaring . turnover surpassing and spreading to the u.s.. euro-dollar up by .2%. 10 year yield up by two basis points.

oil deciding not to participate, down 2% and that is thanks to president donald trump who tweeted about high oil prices and called on opec to get it together and not hurt the market and demand. immediately, crude went down. david: time now for the morning brief. tomorrow, president trump heading to vietnam to meet with kim jong-un for a two-day summit starting on wednesday. also jay powell on the fed will appear in the senate for the first of two days. on thursday, we finally get the first read on u.s. gdp growth in the fourth quarter after numbers delayed from the government shutdown. let's find out what is going on outside the business world. let's get to viviana toddle. viviana: the biggest find -- her todurtado.

the president will delay the tariff on chinese goods do do progress on the latest round of talks in washington. if there is more progress, the president wants to meet with president xi jinping in florida to seal a deal. president trump saying oil prices are getting too high. in a tweet, he said please relax and take it easy to opec. the price of oil is there a three-month high. today, goldman sachs said crude could rise 12%. there is a dangerous stalemate in venezuela after a weekend of violence. president nicolas maduro using the military to crush an juan tion lead by guaido. global news 24 hours a day, online and at tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm viviana hurtado.

this is bloomberg. alix: unbelievable visuals over the weekend in venezuela. trade truth extended. president trump pushing back deadline after negotiations made headway saying the us has made substantial progress on important structural -- issues, including services, currency, and many other paired as a result of the talks, i will delay the u.s. .ncrease in tariffs for march 1 stocks are in full risk on rally despite the fact that a news agency talked about new concerns. we are joined by our global strategist. do you buy into the risk on rally? i understand why there is a risk on rally. it will probably be more on the asian side.

the u.s. didn't struggle to much with the trade story until october, whereas china did. any good news will be felt in the chinese market and less so in the u.s.. lot baked into expectations. what you see is something substantial on the ip side and the knowledge sharing, but that is less likely to comfort. david: why do we want to see it in the intellectual property side? if the problem goes away and we don't have as many tariffs, would that be enough for the market to breathe a sigh of relief and go forward? seema: that is artie expected in the market. we need something -- that has already expect did to happen in the market. what is it being driven by? there has to be economic data.

you need something else in the new push forward to take it further. alix: if you come inside the bloomberg, cyclical versus defenses versus s&p. it has been cyclicals outperforming with the s&p higher. did you buy into cyclicals and industrials? seema: it is difficult at this stage. the problem with defenses at the end of december wasn't necessarily people don't expect an economic slowdown, it was that it got too far and defenses were overvalued. it makes sense for you to shoot up. we do not expect a recession for the u.s. economy but we expect a slowdown. ,n that kind of environment cyclical is unlikely to outperform. what you need to have across the board is higher quality. react, howhe markets

much is it because of the trade, fear of trade and relief and how much is what the fed has done and how they have wrapped off on the rate hike? some are warning inflation could kick in. i will show a chart that shows this. they are not back up where they were but are on their way up. do we see inflation on the horizon at all? that is think we do and an interesting point. only speak to clients, they are confused. people are undecided which way this is going. people expect a slowdown in a think it can only go on for so long, but on the other side, we know there was wage growth and the labor market is tight. to producey inflation and at that point the fed will be under pressure to hike again because markets will be under pressure. david: does the fed even want the inflation?

signshave been worrying of a deterioration of measures of long run inflation expectations in recent years. towardk is slipping shore and calls for reassessment of the dominant inflation frameworks. it sounds like he is a sailor. is this a signal from the fed that they will let it run hot? seema: i think that is the growing thesis that we are getting overshooting. this has been around for years and years i academics and this is the way to get the central bank talking. the reason why it hasn't been seen in the last 10 years is that the risk that you the anchor risk inflection expectations. the talk is difficult to understand. if you don't understand what the target is, you know at some point it will be over and it will be below and it is confusing. alix: what about average

inflation targeting? over years you average it out. does that clear anything up for you? seema: i can understand why we may be going in that direction. deknow that inflation -- flation is there. forecast out more than six months. if we can average it out is a tough one. a guy comeistory is once inflation gets out of control, it runs. is it a different world because of technology and globalization? do we need to listen to paul volcker? seema: there are two sides to this. it is a different time. unlikely to see inflation

at the levels we did see a couple decades ago. at the same time, we have to be cognizant that once you do you nchor, it stays with you. --id: where does craft-kinds craft-heinz go from here? this is bloomberg. ♪

♪ this is "bloomberg daybreak." electricgeneral unloading its biopharma unit to danaher for 21 $.4 billion come

almost all in cash. ge expects to use the proceeds to reduce leverage and strengthen its balance sheet. a canadian miner is making a hostile $17.8 billion offer for its rival newmont. newmont is valued at 8% less at friday's close in talks lasted as a talk of take over as a desperate and bizarre move. warren buffett not giving up on kraft heinz after the $15.4 billion write-down but won't be buying more shares either. he tells cnbc he overpaid for kraft. hit from that.a that is your own flash." speakingeresa may is

and she is saying a delay would not accomplish much of anything and that all the eu leaders have a determination to find a way through. say that leaving the eu is within our grasp. alix: that is amazing. avid: she said there has been constructive meeting and is staying the course until the end. the vote on her brexit plan will be march 17. alix: it is within their grab. david: returning to kraft heinz, last week had drop in market it wrote down more than $15 billion in assets and gave disappointing guidance. welcome to guggenheim lead food and beverage analyst. there is a neutral rating on

kraft heinz. good to have you here. >> good morning. before about what they do to get out, how did it happen so fast? i talked to people and they said, we are not necessarily surprised it happened but that it happened so fast good what happened? onthey got the bad news friday. it was not what everyone was anticipating. all of these things together it was a bit of a surprise. that is the reason why they are where they are. for every other food and other beverage are many, they are

mostly in the u.s. 75% of earnings are in the u.s. can a food business which is depressed, where the consumers are looking for natural products which are the perimeter of the store. the more in the middle is the processed. they are underinvested in r&d for years. scales -- 2% of their --es in and am david: they are known for cost-cutting. how do they get out of the jam? the costs and they need to actually be investing in brand building.

can a account what they need? on a&m, the average is 5% and there is a big gap. the consequence is they lost market share in every single segment. where can i go from there? the first is to reinvest in their brands and make some acquisitions. it may take two to three years to get them. is that theylution can divest from underperforming. if they get cash they will get a better balance sheet and maybe

get better. they are more considerable with that kind of action. that is the reason why they slashed the dividends. to question, i am not sure that they are the best team day-to-day. to your point earlier, you wanted to better quality stocks and that will not be the staple sector. when you have this strategy, you'll take on a ton of that. seema: this is much of the macro

story going on. in consumer staples, if you do slowdown, ition or should be one of the safer places to position yourself. this is generally going across all sectors. know your company and no the balance sheets and what is going on. beer going to go the same way as macaroni and cheese? they are in a different situation. they are a global company. it is struggling. they are getting growth from the market and the strength of their brand. beerimple thing is that in , people don't drink product labels.

there is better pricing power and that is the major difference. some of the brands that kraft is larger. that is not the case in beer. i do not see them in the same situation. alix: thank you very much for joining us. coming up, ge source with shares up 17% on the sale to danaher of its biopharma. we will have more on that next. this is bloomberg. ♪

david: time for the bottom line, looking at companies worth watching. it is about general electric who

announced a $21.4 billion sale of its biopharma unit to danaher. we're back with brooke sutherland. , and nowve you credit they cannot and said they could. : they said they will look at options for health care which is interesting because i'm not entirely sure what the options may be. i think you're looking at more of a private equity sale. i don't know if they would want to buy that business. ghe other benefit is not ipo'in this business is you get to keep the cash flow while you are dealing with the issues in capital. industrial sky and is he saying we will return ge to an industrial company?

brooke: ge has been in a process for a couple of years getting back to industrial roots. that is why they sold off nbc universal and trying to wind down ge capital and that was not done well which is why they are in the problem they are in now. tois more about he is trying manage the company for cash and for its balance sheet problems. that has to be his top priority. i see them taking steps today and that tells me that the challenge runs quite deep and that ge does not think it can muddle through a couple more years of those challenges. we have reports today of economists are looking for a recession in 2021 which is looming in the background. the problems happen when the economy is doing well. when that has a turn, that gets challenging. he is doing what he can to mitigate these circumstances and

get the company to a stronger place. what does the ge of the future look like? eventually you may get rid of health care and wind down power in a joint venture. is this tyco, westinghouse 3.0, we have this company that used to be a giant conglomerate which is now a one trick pony. have berkshire same have to buy more because they underinvested. is bigger still better? do you want to do companies that are each -- niche? --seema: as you mentioned recession risk seems to be going up. this is a timer each company needs to look at how big or small you are and you need to have a healthy balance sheet. are they exposed internationally and maybe going into more of a

global arena which means they will be more diversified? analysts will be increasingly looking at this and focusing. david: berkshire hathaway, i wonder whether the conglomerates of the future will basically be financial companies. it is hard to think of operate companies that are conglomerates. brooke: there is argument that amazon is making itself into a conglomerate with the food and logistics. when you look at the breakups when you get a recession, how will they pair? alix: thank you very much. coming up, geopolitics on the agenda this week. this is bloomberg. ♪

alix: this is "bloomberg daybreak." equities flying. starting off in china and spreading to europe.

propelled higher by ge. there's a big difference between going with the flow and realizing there's something wrong with the storyline. a little bit of skepticism in the market. in other asset classes, euro-dollar up .1%. -- good news over there. crossing fromines theresa may, potentially an extension of brexit, potentially everything will be ok. they are feeling good. oil getting hit over 2%. that is a president trump story. tweets. david: he really does have an impact on the oil market. alix: he did before, but even more so after jamaal passivity. -- in terms of jamaal khashoggi.

hurtado is here with first word news. isiana: president trump delaying the deadlines increased tariffs on $200 billion of chinese imports. he says substantial progress has been made in talks between u.s. and china negotiators. it wants to meet with president xi jinping in florida to finish negotiations. beijing is also optimistic but government run media says negotiations may face new uncertainty. business economists predict the u.s. will enter recession by 2021. a majority of those cold still expect the fed -- of those polled expect the fed to raise interest rates. they also expect president trump's tariffs to reduce gdp. in nigeria, supporters of the president and his challenger timing success in the election.

the election was marred by delays and sporadic violence. ago the president became the first opposition candidate ever elected to the presidency. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am viviana hurtado. this is bloomberg. david: this is a week for geopolitics, with a second summit between president trump and north korea kim jong-un. vice president mike pence headed to columbia to find out what to be done with venezuela, brexit in the balance, and u.s. china trade talks setting up a summit between president trump and president xi. we welcome chris diverse mark -- we welcome christopher smart. now head of macro economic and geopolitical research at bearings. seema shah is still with us. on the air,ave been president trump has tweeted about the summit. he had breakfast with governors and said after that he is headed

out and he said that with , northe denuclearization korea will become an economic powerhouse. without that, just more of the same. how likely is it we will get d nuclear station and north korea as an economic powerhouse? christopher: those are big words. it is not impossible but it will be a long road to get there. what do we -- what can we hope for is an incremental step forward, they agree they will meet again, and get their visors together on slow confidence building steps on both sides. david: this is the second summit. in singapore, there were big words around that. what concrete came out of that? christopher: an agreement to keep talking and have another meeting. i do not think there has been any significant steps on denuclearization in korea. the sanctions remain in place.

the mood has been different. there are no more missile test out of north korea. this is where you had a president of the united states who wants to get a deal done and feel like he can do it without a big backlash from the united states political system. david: like the u.s. and china trade negotiations, i do not think anyone expects a complete deal out of this summit. what concrete could come out of it that would persuade you we are moving in the right direction? ,hristopher: it is unlikely from the mood music we have heard, and president trump's own lowering negotiations that we will get much. we might be we get more inspections or more ability to look at news sites and maybe a disclosure on the part of the north koreans of what they have, and then can start building trust on both sides. that is a long way down the road. alix: hedging geopolitics is hard. where can you still do that? geopolitics, you have

to be careful if you want to try to trade it. it rarely has a fundamental impact on the market. it may disrupt for a couple sessions, but i think will begin dressed to trade on the back of these events. the u.s. china, brexit things, that is a structural impact in the fundamental economy. north korea i would say not. i think you find the south korean market does not respond to these headlines we all respond to. investors are buying bonds and stocks with the returns of future cash flows which are hard to move, other than brexit or tariff news. david: you just referred to brexit. let's talk about that. it seems getting the can down the road continues and continues. theresa may said she is going to. if that happens, what to the markets do with that? wheree other situations

there is a low grade fever that goes on for years and never gets resolved. christopher: i think the u.s. china friction will go on for years without getting resolved. think the one, i event that will change cash flows and will change corporate earnings is a hard brexit with a huge disruption of goods across the borders. as long as that is postponed and the can is kicked down the road, sometimes that is not a bad solution to a problem. alix: there are lots of positive voices. speaking earlier about brexit and moving it forward a few months. >> i believe that in the -- we havee are in -- prime minister may believe she is able to avoid the scenario. alix: rational? seema: very little of what we

have seen has been rational. the deadline is theresa may's only negotiating strategy. once you take that away she loses all the power. then you're back to fundamentals. at this stage, an extension is the right thing to do. it depends how long. that is the difference. what the eu has done has been interesting. if then extended to nine months, that would have had support from within the u.k. government. going after 21 months is not good from a business perspective because you have that continued uncertainty. chris, we were saying before that once you get to 21 months this could be forever. david: brexit may go on a long time. u.s. china negotiations may go on a long time. one thing that feels like it cannot one forever is venezuela. we saw violence on the border there, a not getting in. how long can this go on and as the u.s. playing as much of a role as it should? christopher: the u.s. is meeting

with the neighbors and allies in the region and we have been helping focus this displeasure and anger against the maduro regime from the outside. the problem is that as we have seen in other parts of the world through history, it is hard to predict when things will finally tip. it feels like it is coming to a crescendo, but we still could be talking about it months from now. i thought one -- juan guaido came close to saying we needed intervention. christopher: that would be a big step. david: would be a mistake? christopher: it would not be a mistake and it succeeds. it would be a big mistake if it fails. alix: a big part of that feeding through to the energy market. you could argue that is why we have energy prices too high. how you look at that on a short versus longer-term basis? goldman sachs bullish short-term

and bearish for the next quarter's. seema: i have to agree with that view. last year supply sheets were the main drivers. president trump, in his move against iran, became the main driver. for the time being, if you look at the supply outlook, with -- this ishat is only a marginal impact we will see. seesupply's sheets you pushing up prices, and maybe global demand starting to weaken. david: what is the united states position with latin america? we have the vice president going down to meet with the lemur group. -- the lima group. have we spent the time where the effort to develop those relationships in latin america? christopher: those are long-term relations with a very difficult history. we had been making progress over the last couple of decades.

i fear all the talk about the wall and border security and immigration has set us back. i think it is positive that vice president pence is engaging and working on venezuela, we're not doing it alone but doing it with other allies. alix: what is the biggest risk to see this year? seema: fed hikes. christopher: i think the unwinding of the china trade relationship. that could get worse -- we might get through this deal, but i think it could start coming unraveled. alix: christopher smart of bearings and she must shop -- and seema shah. last year saw spike and water related utility deals. we will speak with chris franklin on infrastructure and the potential for more acquisition. this is bloomberg.

viviana: this is "bloomberg daybreak." coming up later on "balance of power," andrew mccabe, former acting fbi director. this is "bloomberg daybreak." huawei announcing its own folding smartphone to challenge the one unveiled by samsung. it unfolds into a small tablet. it will cost $2600. the market for smartphones is slowing. manufacturers are searching for ways to convince consumers they should upgrade their devices. roche is betting on the future of gene therapy. the swiss drugmaker agreed to buy spark therapeutics. that would give roche one of the first -- by a fix for defective

genes. upon joe's goldman -- pelat on chose goldman sachs and balaton --e -- pelaton cells exercise bikes with tablets attached. alix: time for bother the lead. it is a deep dive into stories making headlines and moving markets. today we will look at the state of water utilities. last year saw more than 72 water utility deals globally. aqua america is one of those countries, announcing a $4.2 billion deal. joining us is chris franklin, aqua america ceo. aqua america serves over 3 million people in eight states. thanks for being here. give me the state of the business and why that natural gas deal was interesting.

chris: most people think about natural gas and electric together. the similarities are between water and natural gas. are pushing a natural product, either gas or water, in to a customer's home or business. the businesses are similar. it took people while to understand that. alix: was it a deal about getting the pipeline with more capacity than to move one other or do you diversify into other forms of energy? chris: it is opening another platform for the company. the need is similar across the country. a vast for infrastructure replacement. the gas utilities need to replace old and changing -- old and aging mains. the people's natural gas needs 3000 miles of maine replaced over the next years. that is significant growth for earnings. it is also significant change for the customer.

david: their regulators involved in this business. in a private business without regulation, you say if i invest as much capital, when will i get a return. regulators, will they allow you to recoup the investment to make it worth your while to invest that capital? chris: a great question. a front approvals to get the deal done. we're in the middle of that. of what we spend in gas utility pipe replacement is recoverable in a surcharge. regulators so desperately want utility to replace the pipe for safety reason, there is great incentives to make that investment and allow recovery. david: how long does it take to get the money back? in a nonregulatory situation, that is what you are looking at. chris: the turn is very quickly. the next couple of years. the recovery of the investment

is over a long time as that investment depreciates. alix: you talk about replacing the pipes. what about building the new ones? chris: in the water business is is -- it is not only pipe but plants. in the 1990's we were measured in parts per million, then it was parts per billion, that it is parts per trillion. we are seeing parts we never even saw 20 years ago. much investment in plant and tanks and pipes for quality reasons. david: acquisitions are not about getting bigger, about making more money. how does that work in a regulated environment? when you buy something like you just bought, how do you say we will make more money for our shareholders? chris: we've been a very disciplined investor. we buy a lot of utilities. when you buy utility, one of the first point is to be creative. in 2020, it will be a creative

deal. that is critically important for our shareholders as you take a long view. our company is 130 years old. when you take the long view you think will -- will be creative to our shareholders. david: where is that accretion coming from? it is growing the top line. we earn on the invested capital. for every piece of pipe we put in the ground to benefit the customer, it also benefits the shareholder. that is how we earn, by making that investment in quite and plant. alix: do take more investment, will you be buying more companies? for the next couple years we will make a significant investment in the companies we have. i would say would be a two digestion period would be on the sidelines from major m&a. the water market is very active.

more municipals than ever are looking at privatization as a solution to challenges. that market is active. david: regulations -- you have a lot of -- you have an advantage so you do not have a lot of antitrust limitations because you are regulated to begin with. chris: we can bolt on other utilities. the regulatory approvals are straightforward. alix: used to be a lawyer, right? chris franklin, aqua america ceo. thank you for joining us. coming up, barrett's bid for newmont. that is what i am watching. bloomberg users can interact with the charts we show throughout this program at gtv . this is bloomberg. ♪

alix: what i am watching is barrick gold making a hostile bid for newmont mining. the canadian giant says it unlocks aliens of dollars worth of real synergy. anding us is head of metals mining research at vertical research partners and has a buy rating on newmont and a hold rating on barrick. mike, why would barrick do this deal? looking quiteis intently at the crown jewel, there no bottom operations. the ability for barrick and newmont to combine those operations. if you look at some of the numbers barrick has put forward when they announced the proposal , the bulk of it is getting synergies out of those nevada

operations. alix: is it going to happen? mike: it is up to the shareholders. a no premium deals announced but the market is implying newmont is a 10% greater price than what the deal would anticipate. my guess is this is an early offer for barrick and newmont has not had a chance to refute this. my guess is they will reject this aggressively. they will be out with comments later this morning at the conference to highlight their thoughts. at the end of the day, we will be up to the shareholders of each company whether they can get the deal done. is the market telling us barrick will up its bid or are they saying there is another bitter? mike: i do not think there is another better -- another bidder. this is the first salvo. alix: when you take a look at management, if we just

backtrack, barrick gold bought randgold resources and the ceo of rand gold became the joint ceo. i was surprised mark bristow would want to do this kind of deal, to be this big went rand gold was a much smaller company. walk me through the culture change and if that made any sense to you. mike: good question. barrick needed the structure and broughtne mark bristow to barrick's assets and operations and financial profile. -- barrick- baruch was crying out for research. --stow is looking to former to further enhance synergies. over the past several decades, it has been one that has destroyed more capital than created value for shareholders.

that is a general statement, but i think bristow is trying to look at the industry and drive it differently. i can see why he would want to try to do something. alix: when you take a look at the conversation became about the midtier companies. that was the combination that was going to take place, not a newmont and barrick. what be the conversation over the next six months? mike: certainly more on newmont and barrick and how that will play out. will be asset spinoff opportunities and rationalizations and asset sales. remember, newmont has an agreement to merge with the goldcorp, which is going to look at asset monetized. newmont has a transaction going on that they are supportive of. management will have to get folks to think differently gett newmont/goldcorp to

people to think about newmont/barrick. in midtier issues, there are issues that do not allow this to occur. alix: thanks very much. david: breaking news. president trump has been meeting at the white house with the nation's governors. he says he will have a signing statement with president xi. he says he will have a signing ceremony. the question is what he is going to sign? alix: coming up, bloomberg markets -- the open with jonathan ferro. bob michaels, jpmorgan asset management. this is bloomberg. ♪

jonathan: from new york city for our viewers worldwide. i'm jonathan ferro. the countdown to the open starts right now. ♪

jonathan: president trump postponing the deadline to raise tariffs on chinese goods the on this week. the latest sign of progress driving a weaker dollar and adding fuel to global equities. chinese stock market surging as beijing shifts toward supporting growth. about 30 minutes away from the opening bell. good morning. futures up 17 points on the s&p. the dollar is weaker against everything. the user -- euro-dollar 1.1357 and treasury yields higher by three basis points at 2.68. we begin with our top story. president trump says he will extend the trade talks with china, tweeting i will be delaying the u.s. increase in terms assuming both sides make additional progress. we will be planning a summit for president xi and myself at my longo to conclude anm