today despite the fact heels are not doing anything. scarlet: looking at financials up 11% so far this year. industrials on the blistering pace. up 18.5% in 2019. we come off of highs. the deal between g.e. helping charge when it comes to the s&p 500 and banks helping the dow jones industrial average. scarlet: the best performing stocks. and a re to get a buyer seller both atop the leaderboard for this. they call it a win-win deal. are s how investors treating it. joe: in general it feels like situations, you see that reaction in bull markets. positive about things. i wasn't here last week, i got the impression that stocks went up. it feels like that's the vibe feeling good.

what were abigail, you watching? have s is a chart we looked at a lot on the s&p 500 200 day ion to its moving average, last, the 200 ay moving average, below it, back above it, a big point here, range, ideways volatility noise and nice symmetry here suggesting we may s&p 500 make a new move 20, 600. sarah was talking about the idea hat stocks are overbought, you see the r.s.i. above 70, technicians don't like it when overbought. equidistant highs or lower highs, it may suggest that or ntum will continue to fade.

lower highs, it may suggest that momentum will continue to fade. interesting to see what it brings. when they macy's to wall street 0 a.m. time. they have had a rough start of 90% for , down close to the year. preannounced the holiday sales last month and needless to say they were week. the market deny like them. the

quarter. joe: two big catalysts, the first was the gene editing upabout 25% shares to close out the day. that's the best performance that it's had since its i.p.o. in 2016. it hasn't really shown the results and see it's basically treated its first human in an early stage study. it's a pretty promising development. there is hopefully going to alleviate some of investors fears that the company wasn't going to make good on the promise of the technology. technology. of course, we also had that big buy-up of spark therapeutics. starting to generate a lot of speculation about what the next company could be. you can see some of the names there, unique cure rising about fitzgerald anter saying they would be the next acquisition target in this space. bird rising today. a lot of optimism back in this pace that was pretty space that was pretty beaten down over the past few months.

it seems that some of the of ise at least in the eyes some investors are back in the market. scarlet: breaking news. on the : sticking biotech scene, a good day for not a goodfter hours sage therapeutics. for stage ve sale therapeutics. of deals, peaking dennis, trade negotiation deal is pending, it doesn't seem like any going to get resolution anytime soon necessarily given that the deadline was extended by the president. the market seems to be ok with watered down a watered down deal? dennis: watered down deal means

status ". live in a tail risk associated with a new way globally."siness and i guess eals sort of president trump's unique tweeted deal-making, he earlier asking opec to make it easy, what does it tell you that firming?s have been is that a demand story? dennis: yes, it's consistent with markets in general, cyclicals, materials, ndustrials in general indicating that they expect growth to firm up on the back to of the year which gets some expectation that china stimulus will have an impact. that's what it is. so all of that is consistent if the idea that precient in he ceconomic

growth. does that take the wind of the in s of the equity valley any way? >> we have to see it continue discussing ave been with vince. we have been seeing oil and stocks moving in tandem, one day divergence especially on the back of a tweet from the president, i don't think you can that and say, oil is now stocks is going to follow suit. we have to see the trend continue. oil to continue to fall, not just off of one tweet, but off over demand. that is the reason why we have een stocks in oil continue to move together. it's been on the upside as have not been as worried potentially over the deal not going through between the u.s. and china, demand not being high about global growth. i think we have to see this continue to worry about stocks in the midst of

in the midst of oil. joe: oil as it pertains to the s&p, i don't want to say meaningless, energy is a very small part of s&p earnings right now, it's about the demand forecast. healthcare, financials, consumer services, 60% of earnings. what we care about when we think about the market. as a signal of overall demand, i look at a broad set of commodity prices not just to see what oil is doing. the conventional prices, s a drop in oil consumers.or give you some news on etsy, analysts pped estimates. gains, but it's a pretty sizable move up 8%. >> it's about hooking up buyers, sellers on the website that they this in well out of

particular on the stock since really. we'll see if this permeate into the rest of the retail numbers, on best buy. not just before the end

of last year, about interest far from neutral and

being just below the range but hen talking about the balance sheet. clearly investors have been very fixated on the balance sheet when it's going to roll off. minutes last he week, them saying and discussing that it could potentially be year has lit some fuel under the fire under the rally. sheet, why is nce -- till matters.e think it the outlook for longer term and the value influence.influence. scarlet: leader of the portfolio research team and sarah as well. hat does it for the closing bell and for me, romaine bostick s stepping in, we look at progress on u.s. china trade talks. from new york, this is bloomberg. ♪ ♪

caroline: i'm caroline hyde. >> here is what happened to u.s. stocks today. to the gains for the highest. trade, ogether on president trump extends the said he adline and would have a summit with president xi. told the cartel to relax and take it easy sending crude tumbling. business comes to the u.s. canadian company sliding on its day and taking other pot stocks down along with

it. with the c.e.o. ahead. joe: trade talks are advancing, both the u.s. and china striking progress is tone, being made toward ending the the ng ongoing trade war between the two super powers. president trump raised the summit of a signing summit later today. >> they're coming back again. have a signing summit which is even better. hopefully we can get that completed. very, very close. joe: the editor for bloomberg news joins us from washington. how far are they from right now having something they could sign a signing summit? sarah: that's an excellent question. we know thing that since yesterday is that, you know, trump has delayed these deadline to rch 5

escalate tariffs on chinese goods. seen enough progress that he has decided to postpone it, hold on on it. what is being put on paper right now. we have heard from the agriculture secretary that china soybeans. to buy more we don't know what china is don't know what china is agreeing to. that really leaves open the question then and kind of creates some worries that trump might agree to a deal that falls economic his deep overhaul to china's economy. you remind me views, will this have to go through congress and it is something that trump signs land, so the law of the to speak? sarah: unlike the new nafta had to go through congressional approval, trump different trade tactics, different trade laws to push forward with his agenda with china. it doesn't require congressional approval. course, a couple weeks ago trump brought up the possibility

in chuck uld bring schumer and nancy pelosi to ok, a deal and get a deal and get their approval. they are pro going tougher on china. perhaps that would be an olive branch he could extend to sort the party, the democrats. add more emove or tariffs without any congressional approval right now. caroline: he has been talking not positive on twitter, once, but twice about the china today saying nd substanti substantial progress has been to intellectual property. things are going to get tougher here on out? out?: it's sarah: it's hard to imagine exactly what china has offered that could really appease the u.s. at this point. past that it's denied that it's engaged in intellectual property.

it has a few changes to enforce their i.p. laws and police them a bit better. the key comes down to what china agrees to enforce these measures. how will the u.s. monitor this agreement and hold something ver china's head that if china doesn't follow through on its ap. commitments that it makes trade deal or any others, that will face the consequences, will it be for tariffs or some other punishment that the u.s. can put forth on them. joe: sarah, one of the sub plots in this story is the we see literally on display between president trump heiser, right t on camera in the oval office isagreeing about the significance of what an m.o.u. means. how much does that tension negotiations is overall? sarah: we have heard from our ources that they are growing increasingly frustrated with each other. as you mentioned, joe, on display saw it friday with just some terminology, basic terminology being debated in cameras, in front

of the chinese delegation. that weakensagine, that weakens lightheisers hand. i'm not a trade negotiator, you want to hold your cards pretty close to your chest. if the chinese feels there is internal rifts, some some of power dynamic going on between trump and his own team, they can that.t a good example is that he said arch 1 is a firm deadline and trump went ahead and extended that. they're singing from different hynp books at different points. chaep is good at negotiations will try to use that in the talks. the beyond him, what about mnuchin was tes, pretty involved and others. they involved at this stage? sarah: yes, they're still involved in the stalks. lightheiser was in front of the 90-day accelerated round of talks.

mnuchin on friday saying they had a currency packet, china not develop the yuan to offset the impact of tariffs. we see that they're involved in this. as you said, you know, it really seems like these talks sort of in may that different players within the and istration had led them right now it's lightlieser, it on't be that tomorrow it won't be somebody else, wanting a more market friendly voice at the tame, maybe mnuchin begins again. good ne: sarah mcgregor, to get your take. coming up, officially listed on he new york stock exchange, what this means for the canadian cannabis company next. this is bloomberg. ♪

caroline: trending across the universe and dropping marshawn lynch from the investment banking brand. acquired erica marshawn lynch during the financial crisis. millennials, ame story says debt among 19 to 19-year-old americans exceeded $1 trillion at the end of 2018, for ighest debt exposure the youngest adult group, spending compared to older generations. many controversies to win the academy award for picture, it faced criticism through some members of family, it inaccurately displays the relationship. total of three oscars last night. you can follow all of these tories on your bloomberg

terminal and tictoc on twitter. romaine. romaine: can trust began ticker symbol,he investors will have user access to the stock and potentially add more volume. canntrust now is c.e.o. joining us live in the studio, welcome. how important is the u.s. market canadian ly for the companies because we have been talking about so much about canadian companies and their canadian listings. starting to see this graphtatigrap graphtatigrap graphtatigrap graphtation -- graphtation down south. >> it's important for several reasons. it's an international business on with continents and with very aggressive growth plans. to tapping the capital markets, institutional investors, retail outside of canada and globally, i think is very,

very helpful from a global perspective and also from an international market. we're a leader peter: cannabis has been legal .n canada we have seen rapid expansion of our medical business.. .e have seen

we have seen rapid expansion of our medical business. -- in terms of the first opportunity, cannabis, the active ingredients in the to be s plant are going ingredients in many, many -- in terms pet care, , recreational purposes -- caroline: what are you using it in pet care? >> we have a joint venture with gray wolf, veterinarian who are the impact of f cannabis on different types of animals. they have the same system that have, humans use cannabis for

nxiety to reduce tremors for arthritis. we are doing a study under the actually that we can abate or reduce the symptoms of a.l.s. powerful, we don't have proof yet. we are building a body of studies to show the cannabis.f >> how do you get to the point where you stand out from the other some odd companies that are doing the same thing. peter: our strategy is very focused. leader in medical. taking tation come from that to other markets, whether it's recreational, international, so building a brand, building trust through excellent from

pharmacists who dealt with preciseness and specificity and the trust that comes from that pharmaceutical grade and produc to opportunity to talk and listing on the new york stock exchange and giving investors the opportunity to learn about our business is the start. was down today. i think all of our competitors, the whole sector was down today. thing is we saw significant increase in trading volume on our stock which is are paying attention and we're tapping into a different group of investors which is the point. caroline: thanks for making the time to come see us. g.e. has its unitgreed to sell for $21 billion. almost all of that in cash. the company expects to use the proceeds of the sale to reduce leverage and strengthen its balance sheet. it's c.e.o. to rescue the company. billion on gene therapy.

t will put them near the front of the pack. this is bloomberg. the pack. this is bloomberg. want more from your entertainment experience?

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>> more than 1,000 journalisted and human rights defenders have three lled over the last years and four environmental indigenous ostly people were killed every week last year. andrew mccabe says special report robert mueller's should be shared with congress and the public. it's the best way to counteract damage done to the f.b.i. by criticism by president trump. >> we all understand that there that will limit the amount of information that can be shared with the public. there are issues that are there are issues that are sensitive, sources and

nature., things of that we have addressed things like this before. also said he has drawn no conclusions about what will contained and he tells bloomberg the past the turmoil it suffered in the aftermath of firing.mey's a federal appeals court has revived almost 100 lawsuits much aswhat could be as $2 billion lost from bernard when the onzi scheme cash was transferred overseas. 2016y's decision reverses a ruling that benefited foreign ustomers of offshore so-called feeder funds which were invested advisory h madoff's firm. those investors withdrew more oney before they put in before 2008.cheme collapse in

caroline: the reason you work you companies is because provide a secondary market in companies and help them get access to the company before publicly.

until thewant to wait company was public, get off the sidelines and into the game were our to do that by coming to platform. joe: one of the extraordinary things about this crop of is they are so big and fairly mature, at least by the historical i.p.o.s where companies went previous much earlier this their life. serious pretty questions about the business models of these companies and whether they work and whether is make money which something pretty fundamental. how concerned are investors at into oint about buying companies whose business models are still, i would say unproven a fairyour view, is that concern? >> you know, amazon really bucked the trend with a lot of this. amazon, for about 15 years after going public kept clocking in,

even negative earnings which was unheard of. what you saw was a tremendous revenue growth. equities is one of the factors we look at a lot of times, not is accruingh demand in the private market, but also what are some of the growth factors of these companies and things we see is with the advent of technology in lmost every industry, it's becoming a lot more accepted if you have fast growth, if you can demonstrate positive unit economics but not necessarily profitability. gap is because of market growth and expansion and a available e uber is and i think in like 110 countries around the world, if you can demonstrate that growth scale, then the investors and the public markets ill often look past the near term net income loss. joe: that's a good point. it's a point that a lot of criticized, when you bring up amazon, amazon came public at a much different stage in its life. look at some of the companies, particularly like the

ubers and lyfts, they're mature companies. they're coming to market with incredibly high valuations if indeed come to market. is appetite going to be there and will investors give the same as they did in amazon? > look at the valuation relative to its revenue, the multiples are completely eye watering. that, you see companies like uber and many of wouldn't say trading, but being traded around 10 times sale.to 10 is not a small number, but some of the trends that amazon was able to buck, it's not unreasonable. about a company hat is clocking in $11 billion in revenue, another estimates $2 billion, these are not small money.f amazon went public at $16 in revenue which is bonkers if you think about it

today. that is a company here clocking in at least $1 billion a revenue being considered for market.ic caroline: what are some of the key concerns, apart from not profitable, the accreditable investors flagging, snap, snapchat,t too much control by the founder, to be ain this seems choed from previous, facebook, how about keeping c.e.o. power and is it a worry for investors? a consideration that every investor pays attention to, how much control do i have. like snap, you idn't necessarily have the demonstrable revenue that some of the other companies have. you're talking hundreds of millions at least to be firms red for an i.p.o., putting in well over a billion revenue.n joe: the companies coming public are famous, sexy

companies. premium from these companies, people wanting to private and they're people, whether a premium because they're exclusive and hard to get. to have a der discount than it is to see a premium. there is h overwhelming demand for these companies, i think we're talking accredited investors, generally fairly sophisticated, they know what they're getting into.elves they're not going to find themselves over their skis too often, yes, i'm getting in early. doesn't mean i'm willing to overpay too much for it. caroline: thank you, atish. president donald trump renewing his attack on opec, we'll put the context there. this is bloomberg.

joe: gold is going hostile in its bid to acquire new mining $17.8 million. the offer raising the official fight between the largest gold miners. with mark brisso earlier. considered very process. we have been working on it for a long time. new mines aged beforehand. just one hing in not meeting. ou have to convince the shareholders this deal is better new deal.roposed so that is scuffling, the deal,

correct? you win either way. ven if this goes through, you have the benefit. >> what's the benefit? we don't believe that it creates anyone.ue for we do believe that as we have proposal has ur the ability to unlock $7 billion for both shareholders. >> on friday, you said you were onsidering a zero premium offer. you came in with an 8% discount on friday. so low?n >> it's not about low, if you information, the news broke on thursday morning. look at thed if you performance of the stock, we looked at the uneffected valuation, if you look back in we ory on the ratios, believe this is an market upper nd more importantly, when you look at the value it creates as

deal, with barrick gold it has real opportunity to deliver value for all of the hareholders involved in this proposal. >> it seems pretty clear that on ont is going to disagree that monitor. how committed are you to the zero premium idea? now, newmont t hasn't done a good job in trying to explain why they disagree. to this.ry committed we believe it's something that the industry needs. we believe it's something that can deliver on and we as a management team are committed to making sure that this transaction happens and is long term,pon in the we're not leaving. >> are you working with anyone else? -- we we haven't worked have had many conversations with parties on the post ial to participate the transaction as we portfolio. the be applying our

strategics processes as we go forward. >> as you go forward, will they be involved? there is a good chance that there are some australian i can rs be involved and tell you there are some very good australian operators, more modern t are in their approach to managing assets and delivering value for shareholders. >> what have you heard from investors so far on this? > we are just starting the engagement as you can imagine, we were quite bound by the to keep this under wraps until we were ready and we ad done all the necessary homework to make sure that we well roperly prepared and considered. gold e: that was barrick speaking earlier today. now, speaking with commodities, tumbling on some choice words from president

rump who has been vocal by his displeasure with prices. the president tweeting, oil prices getting too high, opec and take it easy, hike, can't take a price fragile. tweet really move the market and why? >> it's been a really good tweets. right, these last year they worked beautifully. why we think the market took a probably ive today, because it was a little bit overbought. there was no speculative money uilding up in the markets the last four, five, six weeks with assisting rends things, probably a little bit of room to go down. excuse as any to sell off, take the money off the table. caroline: that's the bandwidth now? what is the trigger? a biganytime a day before oil gathering, he wants to see a price and is that price 50? last year it was 75.

tweeting.tarted i'm not sureoline, what it is now. reallyow much of this is attributable to opec at this point when you consider the role that the u.s. has taken in this market? notary: the president does have all that much power over opec. december 8.on he has the power how big are the waivers on the u.n., are we going to tighten the screws on regime, are we going to do something else again. maybe he is signaling there will a few more waivers unless there is a cutback from the saudis, we don't know. signal in a market that looked like it was a little bit skis, like i said, as good a time as any to take the table.ff the joe: how big is the

deteriorating situation in dramaticallych was deteroriated affected the recent trajectory of oil? gold in real numbers, the coast is new, the sanctions are oming, they have been scrounging the market. it was built into that market. that in heavy differentials on the gulf coast. in the last ened three or four weeks, still oil landing inut, oil is the united states, it's five days away. we had a 5,000 a week on the gulf coast from venezuela. impact.s an it has been in the market for a while now. here will be more of a market impact in the second quarter. romaine: when you look at the type of oil that is moving from is port to another, how much factaffecting things? it isn't the same like it used to be.

i feel there is more disruption on, not just in terms of the overall oil market but the gone?that is jan: that's a good point. refinery, things have turned topsy-turvy. surplus in the crude thatsin of the scarce. t's gone topsy-turvy, it will take time to settle. joe: a chart of oil doesn't like a chart from the stock market, it started bouncing in late december when people getting more optimistic and maybe the bottom wasn't going to fall out of the economy. about been talking supply the whole time. how much is about demand and confidence about the state of the word economy? >> you know me, i would go one further, we went into that

partly on christmas eve because the world was going to end. it doesn't end and we feel better about things. joe: you don't need bad news if you think the world is going to end. there was somer, real good green lights, the fed more dovish. came today as well. jan: we're slowly building this trade nce, but cannot this thing on confidence alone. right.ed data, the data hasn't been as good coming. we haven't seen the weekly less than seeing a seasonal build or a greater seasonal draw. it's not quite there. little bit of a out.us hanging caroline: jan stuart, thank you. a check of the business headlines for you now. sprint is ready for the next generation apparently. a may eless carrier has launch date for its 5g service.

make it the first carrier out of the gate when it comes to the next generation platform. the 5g service will initially be offered in atlanta, chicago, dallas, and kansas city. the healthiest nation in the according to the bloomberg index is spain ollowed by italy, iceland, japan and switzerland. life des on variables, expectancy and tobacco use and obesity. 35th..s. is it's been trending lower due to suicide.g overdoses and that's the update. clearly we should be luggage back the olive oil because spain italy are up there. joe: i wasn't surprised about spain. was surprised at how low the u.s. was. caroline: how are you feeling post-mexico? that's 53rd? romaine: i do eat too many tacos. ranks lower than the u.s.

fish, i ate pretty well there. me, cuba washat got higher than the united states. the subsidized healthcare. up, reports a ing holiday season performance this week.

romaine: a slew of fourth quarter retail orders this week, the numbers cover the crucial holiday shopping season, of course. let's bring in matt townsend to a little bit more about what we can expect. let's kick things off. getting macy's, auto zone and home depot, a barometer for the economy is doing. >> it can be a mixed bag.

home depot is a pretty good look at.o they're tied closely to confidence in housing and the value of your home. losing faith in that and they're cutting back on those purchases, that could be a or a very positive signal. this, we had p to a herky-jerky view of the holidays so far, it looked good beginnings, the department stores had confidence in it, government data for bad, so it's kind of an unknown right now where we are. to ask about ing the government data for december, as soon as it came ut, a lot of people skeptical about that. have we seen anything executives saying, analysts reading into this company saying it's real or from the company does it look like it was a fluky number? >> it depends on the sector, macy's, for tores, example, they said, we saw this big slowdown in the second half of december which is obviously good, but then you saw

one art come out and have of the best holiday quarters in years. if this is happening when little weary, they trade down, do more discounters like wal-mart and target and dollar stores and pulling purchases we'll partment stores, have to see. there was a lot of skepticism about that december number. about whether we care about these numbers and hether we care about the forecasts? >> that's a good point. at this point, the fourth there is some certainly. 2019, there is more uncertainty. like home depot, they have been growing 5, 6, 7% years.e past four or five what they say tomorrow will be interesting where they see their business headed. success story in retail, people fixing up their homes, that's pulling back to 3% that, or something like that's not a good sign. about the smaller companies, foot locker, gap,

independent type of stores, some are doing well, gap had sort of a little recovery, foot locker. they did. they're most tied to enclosed malls -- been in a haven't mall -- >> they're on the outs with consumers. of le like different type retail establishments being outside in mixed use places. that's a big problem with gap, well, sneakers selling really well. we thank you.t, federal chair jay powell testified tomorrow. i'll be watching economic data numbers for consumer confidence coming up. romaine: weight watchers reports its fourth-quarter before the bell. joe: "bloomberg technology" is up next in the u.s. great evening, this is bloomberg. ♪

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>> welcome to day break australia. >> i'm so forth so forth in hong kong, welcome to daybreak australia. the bloomberg terminal right now, teresa may is said to a plan to postpone brexit, that's right, that is he bloomberg terminal headline crossing right now pass the current march 29