with lots of ammunition if threats materialize. the latest central bank to offer support as the global economy grows. trump walks away from tariff threats on mexico, but will mexico really purchased more ux goods? -- forms an forbes massive company to expand its reach into the aerospace and defense industry. we thought we didn't know about the deal, but now we really didn't know, the president said there isn't more to come. if you didn't know it all yet, there is still some more. >> basically there's another important part of the immigration security deal with mexico but threatened that if it doesn't pass, terrace will come back. -- tariffs will come back.

we know for sure that tariffs, tool of foreign policy and in the mexico case, it actually works. guard deploying national to enforce and they will take action to help. and the markets like that. alix: at least they like it on this monday. wouldst week of 2019, you not have expected that on monday of last week, futures now adding on to that i-9 tense of three of 1%. i wanted to highlight with heather, the mexican peso is going higher as well, up by 2% as the dollar is stronger but weaker when it comes to the peso and selloff across the board in the u.s. and italy, it is pure risk on, but it feels like more than that, unwinding our positions from last week that led to some big moves. david: right, we may have gone a

little bit too far. tomorrow we have u.s. ppi numbers for the month of may and the uber ceo will be speaking at the economic club of washington. wednesday the conservative price thex numbers are out and japanese prime minister will be talking about the iranian nuclear deal. thursday, the conservative party and the united kingdom conducts a first ballot to find a new leader to replace theresa may. then chinese industrial reduction and retail sales numbers. friday it is the u.s. is turned to release election numbers. production numbers. today we are joined by [indiscernible] dealng up with the includes, deployment of 6000 national guard down in mexico to try to deter people from coming across the border illegally. ship them back to hold on, the u.s. says they will

expedite the whole thing. is this a big deal? >> it is a very big deal and more for mexico than the u.s., because in the short term this gives the president of mexico a victory, forestalls the tariffs, but longer-term he will have a major problem servicing all of those asylum-seekers within their borders. alix: forced to purchase more agricultural goods. david: president trump said that, it was in the agreement, but mexico says they didn't agree to that. who knows. what i thought was interesting was that it are glazed over the weekend they said that even though the tariffs being worked out are ok with mexico, the threat of terrorist globally means lower economic potential in the u.s. >> citigroup is expecting a lower number in the s&p 500. they say the just as the mexico deal was arrived at does not mean that things are better with respect to u.s. intentions. it's clear that trump is using tariffs in a way that no other

trump -- no other president has of seeking toerms extract economic benefits in the name of national security. people are saying at this president is clearly not going away, reinforced by the president this morning, indicating this pressure is not going away and that the uncertainty given to markets isn't going to change. david: there's an interesting potential bank shot here, it may benefit mexico now injured -- these u.s. china tensions. possibility, but look, the target now shifts directly to mexico and things are beginning to coalesce around the end of june g20 meeting. i have said on this show to expect a lot out of that meeting is misguided. the at nam came out overnight saying that they were cracking down on chinese imports

being routed through vietnam to avoid u.s. tariffs. it's clear that they are nervous that they will somehow come into the crosshairs of trump fire. there is a fickle aspect that people are responding to. alix: breaking news, m&a deal, salesforce purchasing cap low for $7.5 billion. it's basically an analytic yearare company with full 2020 adjusted earnings at the high end of $2.53 per share on the deal. avid: it's been built into really huge company through a a lot of acquisitions. and this is the space. cloud computing is the space. looking at cloud, that's a growth area, no matter how big or small you are. david: ok, talking about deals, let's talk about raytheon and united technology. it really is quite a deal that they have going here. lisa? lisa: it's interesting because

you have seen in the breaking up of industrial company steadily until now, now this deal where etf manufacturers, commercial seekingtary engines are to go further into military to diversify at a time when the demand for commercial aircraft is actually waning somewhat. it's actually just interesting to question this, i know you will probably be speaking to brooke sutherland later today, are we seeing the end of the trend, where the rubber meets the road? now scale starts the matter and be beneficial heading into the next down cycle? there is a possible fly in the ointment, the defense department has to approve this and they don't always like defense contractors getting together. marty: and the person who runs the defense department is a former boeing executive, the number one defense contractor. it is also interesting that dino -- donald trump has emphasized

defense spending and it insulates these companies from consumer issues that may arise. for united tech, it's a real smart move. alix: our third story is central banks. not if the fed does nothing, but it seems like as long as you look at the doj am a they will be doing something. >> when risks materialize, if the japanese economy is affected and if the momentum is an increasing target, there will be a swift response. alix: lisa, you had palo, then draghi, then mr. kuroda, all saying that we got you. right. my big question is that right now the bank of japan balance sheet deemphasizes the japanese economy. we're looking at a country that doesn't have that much more room

to stimulate. yes, they are thinking of dropping deposit rates to negative 0.3%. japanese banks, which have been the set by a whole host of problems, is a question about what more this will do to them. i really do question at what point, given the stimulation of the economy, how much more room they have. he said that they have plenty of room. i a lot of people would beg to differ. david: central banks are using the weapons they have, monetary policy, but does it match up against the trade problem? do not sure if that works, exactly. and it's very an clear where the fed's stands on all of this uncertainty. they have said that global issues like trade will impact their decision-making. now that mexico is off the table, it's back to china again and i think we really have to see what happens with those china negotiations to make an accurate prediction on what the fed is going to do.

is mexico off the table? i actually don't know. that if ithe said doesn't work, further action will be taken. are much.k you you can find all the charts that we just used and more over the next few hours, g tv . coming up, more on the doj and global central bank policy ammunition. as we had to break, salesforce purchasing tableau for $50.7 billion. the full year 2020 revenue coming in at $6.6 billion, that's the next m&a in the tech space. this is bloomberg. ♪

: the s&p 500 is heading bear market.ale president donald trump is likely to impose tariffs on all chinese goods. strategists says that it could peak in down from the april and the fed could rise to the rescue and cut interest rates. a renowned to 20 year nissan may be in trouble. falling apart,er the nissan reluctance to forge the deal is reportedly partly responsible for the failure. in response, renault is threatening the plan to overhaul the government structure with the 40 percent stake that they need for their second largest shareholder. instant therapeutics have become the first corporate casualty of the opioid epidemic. allowing companies to keep operating while they come up

with a plan to pay their obligations. to payek they agreed $225 million to settle u.s. claims that they illegally sold opioid-based painkillers. that's your bloomberg business flash. alix: plenty of ammunition, that's the message from the bank , saying hevernor wants to limit potential side effects. he spoke exclusively to kathleen hays in japan. >> when the risks materialize, if the japanese economy is affected, and also if the momentum hits the information target and is lost, it's a swift response by changing. david: for japan -- alix: for

japan, specifically, do you believe it? that they have been scaling back the japanese bonds they have been bawling. they could re-accelerate. and then it's what, -12 basis points? the german bund is -25. remember, they introduced, when they first introduced negative interest rates was yield curve management. so they can just sort of tweak how they are playing and managing the yield curve. it hasn't been so wonderfully successful in the past. marc: i'm not sure that's the key here. you say it might not be effective if they do it, but what's the effect of they don't do it? what theye face of

contracted last year in q4, expanding more than we expected in q1, off to a tough start here in cubing to -- q2. inid: we are seeing this central bank after central bank. european and u.s. at some point it's not central ank, its market building in citation where they don't deliver, the market is disappointed. it's not like they want to do good, they just don't want to do harm. marc: that's especially true in the knighted states. they used to have these bond vigilantes, fiscal power for butnsionary selling off, now the bond and the debt market is trying to force an inverted curve, putting in three fed rate cuts this year, which seems very excessive to me. barclays sees a 50 basis point cut as a preemptive play, so let's say that happens and we

get the cut? what's your playbook as a participant? guess for me on the foreign-exchange side is that it's no good for the dollar. one thing that has been helping the dollar is the divergence in the interest rate differentials. we have entered the last phase of i think is a long-term bull market for the dollar. for just a 50 basis point cut, panic, what is the fed seeing that the economic data is not showing? david: but president trump has said he would like a weaker dollar. u.s. the way that companies service foreign demand, what we have learned from incident with mexico, it's not by exporting. it's not germany, switzerland, finland. the u.s. built production, gm sold more cars in china last year than in the u.s. if they fill them there in china. alix: but the money -- david: but the money that they make in china is worth more if the dollar is less.

a weaker dollar effectively is worth more. marc: it's true, it translates into more dollars. even if i think we have this rate cut scenario where the fed cuts rates aggressively, bad news for the dollar, good news for the stock market. what ignacio had to say about the backstop. things that we have, including what you have mentioned, if needed, if they somehow failed to be brought back in line with our objective. alix: if all the central banks are throwing stuff at it, how do you look at a weaker dollar scenario? has happened what is because the u.s. is so much more ahead of other countries, there's a scope to cut interest rates. australia is pretty aggressive

with rate cuts. even despite that, the u.s. australia to your interest rate differential is moving against the u.s. i understand that the market is pricing in more aggressive u.s. policy because we have more scope to cut rates. david: all right, mark chandler will be staying with us. the raytheon merger, creating the west's second largest defense contractor. that's next. this is bloomberg. ♪

united technologies and raytheon have agreed to merge, creating a company -- defense company second only to boeing. joining us now from princeton, the bloomberg intelligence aerospace intelligence analysts, marc chandler is with us.

explain to us how this deal makes so much sense. >> as we see with the planned spinoff of otis and the acquisition of raytheon, greg hayes is building an era space defense the myth, building his legacy, building an empire with the likes of boeing, estimated combined revenue of $80 billion next year, second only to boeing, the second-largest prime contractor behind lockheed martin, with global ,each and commercial scale adding raytheon essentially combining and adding technologies of key military systems radars, space systems, and the latest in military weapons. we hear about behemoth the mergers, we tend to think about regulators. what about china?

>> i think from a revenue standpoint, there is little if any revenue overlap. the pentagon is probably going to raise some flags about this. they are hesitant to see consolidation among the top echelon of their contractors from because that they are getting sole-source providers for major weapons systems. that will be a concern, those things will come up on the call coming up at 8:00. we will see what the company expects to play out. raytheon really has moved direct sales through china, so i don't know if the hurdle there will be quite as elaborate as what they just went through with the collins acquisition. i think that given their experience with that, i think they know what to expect. does this make the better? on boeing

some cost savings hear from a corporate standpoint. down to your suppliers, on to boeing, it makes you more cost competitive to be able to defend against competitive and pricing pressures at boeing, which airbus is making to a lesser extent. even before the deal with raytheon, collins made them by far the largest tier one aerospace suppliers. they were already making that headway into becoming by far the largest global airspace supplier. this just furthers their opportunity. company has a credence to when they will make more money off of it, matching up without much more overlap, there are not many more synergies.

>> yes, the synergies are largely impart going to come from corporate costs. i think that there is opportunity to be creative here. the companies haven't made it clear. the math is a bit fuzzy, given that united technologies and its implied market cap is tied up with otis and carrier. i think we are probably looking at a combined deal size of north of 100 billion dollars easily when raytheon is taken into account and when you exclude otis and carrier. these headlines from the weekend on salesforce, tableau, what do you think about it? we arewe are in -- marc: in the middle of a huge m&a wave. many of us are both clinical and to the left of this spectrum, they seem to like romanticize small businesses, but small businesses grow to be big businesses and its the complex part of having a bifurcated

economy, large behemoths with huge companies dominating the space and smaller businesses, people are concerned about what this means for dynamic entrepreneurial ship and dynamic growth. what happens when these companies get unwound? this is what seems to happen, a big wave of mergers and acquisitions, people paying for goodwill above the cost of the company. and then they unwind it and it's this capital destruction, the goodwill disappears. other people in the sector sector ask -- who should i be merging with? can you hear me, doug? doug: yes, sorry about that. we have a lockheed martin and a northrup that has little if any commercial exposure. those names will be interesting to watch in the near future to see if they think there is any commercial to end

exposure. northrop grumman distill in the process of absorbing, so perhaps some large m&a is off the table for them. lockheed martin is the number one defense contractor, fully exposed to the defense budget. doug, really appreciate your perspective. marc chandler will be sticking with us. shortest talks ever? ing has reportedly lost interest in the commerce bank. this was what, last tuesday they were talking about merging? david: never the bridesmaid -- always a bridesmaid. alix: never the bride. this is bloomberg. ♪ we're the slowskys.

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check it out! now you can schedule a callback or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not. alix: it's monday and it looks like the tamil of last week never really happened. if you look across the asset classes here, the euro dollar is

down but taking a look at dollar-yen, look at that is something getting more dovish with ammunition that happens versus the dollar with safe haven assets. the bond market here is selling across the board with yields up and a lot of treasury options are coming out this week, $70 billion worth of notes in the next three days. s&p futures are also higher as well, following european and defense stocks higher. four news of -- david: news outside the business world, here's viviana or todd. a --viana are taught viviana or todda. viviana: president trump says the new agreement with mexico must be ratified by mexican lawmakers. mexico is not backing up the trump claim that a farm deal was part of the agreement, leading

the president to announce that the threat of tariffs on mexican goods was suspended. the trade data from china wasn't enough to halt concerns in the u.s. as last month there was an unexpected increase in exports, but chinese imports fell 8.5 percent, double the forecast of decline and underscoring the weakness of the domestic economy there. the chief executive of hong kong is vowing to press ahead with controversial x -- controversial extradition legislation. estimates are up to one million people, many of them jamming the streets and demonstrating in one of the city bus biggest protests since the former british colonies returned to china more than two decades ago. the legislation would allow extradition to mainland china. global news, 24 hours per day, on air and on tictoc on twitter, powered by 2700 journalists and in over 120 countries. david? is quite aeally

development in hong kong, china has been tightening its grip on hong kong for some time and now they have a proposed statute that would facilitate extradition from hong kong to the mainland. you can see what's happening there. either way, hong kong swears that mainland china didn't ask for this statute. carrie lam started out by saying that most of the protesters love hong kong and came out for the sake of the next generation and that anyone who resorts to violence will be punished and noted that everyone still loves hong kong and that it wasn't anti-hong kong or anything. alix: i'm sure that they love of the -- david: i'm sure that they love it the way it is without the extradition part. goldman sachs said over the weekend that you will see dollar one -- dollar u.n. reaching that level to something that hasn't been there since a decade ago. itc, you are the man, is

going to stand or will it have assets? marc: the one thing that i point about theoint out hong kong story, look at the hong kong stock market, leading asian markets higher. control taking more over hong kong. investors are not liking it, but they are voting with their pocketbook to change the forces on the ground. what brought me to the story longer-term, and civil rights it hasn't been pretty but in terms of business it has been just fine thank you. of thesee authoritarian governments, russia, what they have done to their markets, making it more excessive all, transparent, being forced to do this by the anti-investment policies that they do with the other hand. alix: saudi arabia politics versus the reality, we are not going to this conference, not going to invest, and now you see that that's not even the court -- not even the case. exactly, exactly.

let's turn now from china to mexico. markets breathing a sigh of relief as it seems that the united states has resolved issues with mexico for the time being and as a result tariffs would not go up against mexico. we have now the chief mexico economist from the e&p. great to have you. a bullet did they dodge by not having these imports? how bad would it have been question mark >> as you know, it's probably nonlinear. 10%, manageable pressures on inflation and risk growth, probably expecting lower growth by 2.3%. but higher than that? ofbably just a hint recession in mexico with a struggle for the mexican central bank because of inflationary pressures with risk on being

much more higher. david: for the time being, tariffs are suspended. but he said they could come back, that there are more parts to the deal we haven't seen yet and if it isn't mexican -- ratified by the mexican parliament, we would be back with terrace once again. at the same time, it's not just about trade tariffs. putting up a chart here, we have the u.s. dollar versus the mexican peso over time, the yellow line is when the president was elected. but then we have the fitch warning on possible downgrades. it actually downgraded before the tariffs were announced? right, many things happening at the same time. this tight space for fiscal maneuvering and a very ambitious target of 1%. on top of that you have the u.s. mca just waiting to be ratified

in the congress. obviously, all of these have to be digested by our own the central bank. with downside pressures on growth, all of these factors could affect markets. itt we already know is that get -- build significant importance around market development. alix: what's going to be the biggest driver? . growth and that? i think we have probably seen the lower end at the bottom here. for the dollar. i think that what is attractive for the leverage community is the short-term build a market in mexico is yielding over eight percent.

once it stabilizes, there will possibly be currency manipulation as well with people coming back into mexico, with a leverage community. david: when it comes to mexico, what about president lopez orbit brador'spez over a policies? joel: most of that is focused on internal deals and programs, infrastructure, totally focused on new social transfers and infrastructure programs that could develop in southern mexico, fridges key, and also focused on the legitimacy agenda. just to set things up in a certain way that he can translate their policies and become a reality for congress, it's not proposing a structural reform, but it's on the second half of his term. the agenda that is totally focused on that internal side, as we have already realized

there are many things happening outside mexico. these governments have been forced to look aside and take a look at these markets for monetary policy. that is all happening with change in priorities right now. on that arill down little bit more, too, the national guard having to go police the borders for a take back from the refugees at some point, now purchasing more agricultural products from the u.s.? can mexico afford to do all these things? joel: that's the issue. it's a narrow room for fiscal maneuvering. on top of that, you will have to spend more on immigration. just to give you an idea, last illegal immigrants were coming just from central america. the government was already spending in this. there's just another issue to be concerned about. it lands on the fiscal type not only but markets wise on the

fiscal side and those are some of the main problems here. marc: it's very interesting what's happening, to your question earlier, did mexico dodge a bullet? i think the u.s. economy dodged a bullet. something like two thirds of the imports from mexico are movement of goods from within the same company and this is really important. mexico is really integrated within not only the u.s. economy, but the companies. alix: if the jobs numbers had been really good, you feel -- would we have gotten the deal from president trump? what trumpnk that did based on these terrorists from the book that was suspended, he still has his emergency powers and he still has a terrorist that he can put back up at a whim. of thisefore all happened, the real issue was the

successor to nafta. we have to get ratified in mexico and the united dates. is it more likely than that? joel: the risk of a bumpy road has increased, though probably not on the side of a mexican congress, who are willing to get these facets together as soon as possible. what it all depends on what's happening in the u.s. congress. it depends on all of these political pressures that are happening built into the latest models. and something with this type of issue, we already know the democrats are not as happy, this is probably not creating the right environment to get this process together and be smooth. alix: thank you for joining us. marc chandler will be sticking with us. coming up, more woes for deutsche bank. hadembattled german lender

a credit downgrade last week. we're going to run through all of the problems they are facing. this is bloomberg. ♪

thisna: alix: -- viviana: is "bloomberg daybreak." up, a nobel prize winner of economics. bloomberg business flash. salesforce.com agreeing to for 53e tableau software billion dollars in stock. it's the biggest deal for salesforce ever and a wager bid

for the company to build analyst -- analytics offerings with a 42% premium to the close on friday. microsoft says the next generation xbox gaming console will be four times more powerful than the current one and will be released in time for christmas of 2020 with a new version of halo, the company's popular shooting game. they also announced the upcoming debut of the streaming platform for games. today's shares of thomas cook are soaring, the british tabloid confirming that they are in talks to purchase their tour operating business. is thomas cook's largest shareholder, a conglomerate that deals in everything from pharmaceuticals to insurance. that is your bloomberg business flash. also apparently water parks. first up, more woes for deutsche bank after having their credit

downgraded last week, internal auditors discovered years of screening failures at the bank. then you have a goldman alumni opening his own fund. at least $200 million in aum. wall street speculators are eyeing the shiny motte -- shiny metal. i will read it good by the end of the show. david: doing beautifully. .till with us is marc chandler i don't know where to start with deutsche bank. there are reports that garth the ceoand mr. jain, under investigation for this tax problem, with news of money laundering. >> let's start with that, it's a really big deal. the problem for everybody at the top of the bank's lowering funding costs. it was a key priority. the downgrade is a bit of a problem for the prime growth

rate that we have seen languish over the last several years. it's going to be an issue for different lending activity for deutsche bank moving forward. we know that it's embattled, but they are trying to do something with their banking arm. sonli: it's a real problem and garth ritchie is in a wider probe regarding tax hiding's in germany. he's definitely under a lot of pressure. so is their chief regulatory officer, which has done a widening probe with another problem this morning as well about of cleared checks that perhaps did not pass anti-money -- anti-money-laundering controls. and a problem now in london in jacksonville, florida, and new york. part of the problem is sorting out the idiosyncratic from the larger problems.

marc: so many of my friends on wall street are so concerned about italian banks, bad loans, nonperforming loans, the debt of the government. i think a lot of the focus ought to be on the core of europe. for italy, this is a problem that we have known about for a long time but it seems like it's becoming more acute. but when you talk to your friends about it, does it feel like it will be fine because of the name, deutsche bank? been true might have a couple of years ago, but the same rules the tie the hands of these countries, like we talk about these banks that are too big to fail, but deutsche bank might the too big to save.

>> does it spur something else? >> their own cfo calls the vicious circle. >> it doesn't have to do with their current issue of being able to grow. it's the old compliance on something that they can't escape, totally different things. to manage. big talking about too big to save, it's too big to manage. how can a manager know what's going on? these huge companies like we talked about before -- >> jpmorgan is a large company and we don't have the large number of problems. >> that's the management, actually. >> turning to a different level, ryan fellow had a different level of hedge funds, deciding out to go out on his own. sonli: we have seen a whole

number of people striking out on their own. some thing interesting about him in particular is being backed by hs group. a spinoff investigator for others, he's not the first person here launching a hedge fund that is backed by something that's not a bank. we have jacked woodruff for example backed by ken griffin and another sit it out backed by paloma. you see other citadel -- sit until hedge fund managers with newer funds coming into the year , as we know the whole industry has been quite challenged for the last couple of years and they are making a bet on volatility. somebody, their former partners are out there running a hedge fund to be a customer. that's the good thing about a spinoff for all of these things. have you understand that? sonli: one of the big things

that they talk about with all of these spinoffs is that there's more patient capital when you don't have to be wedded to a large institution. obviously the hedge fund industry has seen a lot of pressure with markets going up. the hedge funds do better when there's a lot of volatility in the markets. the banks don't like to see that up and down. they like more stability when it comes to their numbers. perhaps better to be a client and a part of the bank. or if you are a hedge fund that wants to buy gold, which was kind of our next story as well. is this like a real thing, a real shift into a different asset? how do you understand this? sonli: is the biggest question in 12 years, which i love, meaning it's the biggest push since 2007 and we all love what happened after that. gold is a safe haven, right? or iss a short-term play it seen as a little bit bigger? these big hedge fund managers,

david einhorn in particular has seen some real down markets in gold, suffering serious losses with big parts of their portfolio dedicated to gold. now it is a time when they can say that their macro bet is paying off. of course they can thank the fed of it for this. great expectations, lower. the dots if they connected. the price of on the one hand, the value of the dollar on the other. marc: i don't think there is a great relationship, but often what we find is that we have seen the dollar back often the last week or so and we have seen gold move higher. people see those two things. the gold market is so much .maller one thing i like about foreign-exchange is that more than $5 trillion per day turns over. that's the average daily turnover. i cannot tell you how many years of supply of gold you would have to buy. what fascinates me is not just hedge funds purchasing gold, but right now -- alix: olympic size pool swimming pools. marc: quite a bit, right?

we have seen that with other central bank reserve day does, including this morning china, purchasing gold for the fifth or six months in a row. about 2000 struck seven, i was covering gold in 2007 and that was like you are talking about 2000, it was the conversation that was in a totally different environment. you can't compare the two. have beenrest rates low and the stock market has been going up to the alternative investment with people thinking that maybe the stock market looks heavy over the last couple of weeks and gold is the place that is a safety place. sonli: morgan stanley is the biggest holder right now, everyone across the board in the short-term and long-term is not clear to me. --x: thank you both very sonli: -- david: thank you very

much for being with us. the nissan renault alliance is on shaky ground. more on of what we're watching, next. this is bloomberg. ♪

david: the nissan renault alliance is on shaky ground. this is an amazing drama playing out, actually. couldn't do it because of the french government. nissan with a partnership with renault, the finance minister of we areat the g20 said going to lower our ownership timeest, but at the same the chairman is writing a letter saying that you know where that plan is that i voted for that he was unanimous question mark i'm not going to support you. you can get it done. i don't know what they are doing. alix: wasn't it the whole conversation back of the day that nissan was trying to make a

power play to take control of the company and get out a little forfrom under fiat? david: block of the attempted to merge the companies. and part again because of the french government ownership. so here's my question, who actually has the leverage? if nissan has votes they can try to block it and it was pretty clear that fiat chrysler didn't want to do it if nissan objected. it's a huge drama. good luck with the cross-border thing. nyu professor at economics will be joining us. this is bloomberg. ♪ hey! i'm bill slowsky jr.,

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excuse me?! what? i don't know your phone number. aw well. he doesn't know our phone number! you have our fax number, obviously... today's xfinity service. simple. easy. awesome. i'll pass. ♪ alix: central banks to the rescue, doj vitor kuroda

says the central bank will respond quickly with lots of ammunition if risks materialize. the latest central bank to offer support as the global economy slows. and the new defensive giant, expanding its reach into aerospace and defense industries. plus disappearing tariffs, president trump walks away from his terrorist threat, kind of, on mexico. what does it mean for usmca? we will be speaking to antonio garza. david: welcome to "bloomberg daybreak." even as we speak, and the u.k. today is that a they have to keep their nate -- their names and if they want to run for leadership for the tory party. thursday they had their first vote to say you had to win oh this down to two candidates. alix: i was laughing because you had this sleeper gloomy exterior of our lament, with manufacturing output following

the most in 17 years and it honestly looks like morris johnson actually could take this. david: i guess because his principal prominent rival is mr. go and it turns out he did cocaine unlike several occasions and had to the sun nationwide tv yesterday was a real mistake that he regretted. alix: at some point they will be like -- where's theresa may question mark let's just keep her. sox: so -- david: flamboyant, they call it the rose garden strategy. he's not saying anything. with jeremy hunt saying that they must deliver brexit or face a violation. ifx: and if you -- david: you have followed these leaders, they sound more and more hard brexit. suspend parliament if they need to just get out of here. the gloomy clouds.

in the markets for the s&p, futures are off a 5/10 of 1% after you saw the best week for the s&p last week in 2019. not what you would have expected. you are seeing the euro dollar down, stronger g10 dollars story, you had sort of stronger with a selloff in the bond market and i wonder how much of that changes the position from last week, despite the fact of weaker imports from china. it is interesting that they didn't send the shocks to the system you might have thought. it was moreered if backwards and forwards with the old news that people are looking at. david: doing what it takes, exactly, thanks so much. time for your morning brief looking at the week ahead, tomorrow we get u.s. ppi numbers a speech at the

economic club of washington, d.c., wednesday consumer price index numbers are out and shinzo abe travels to to run as part of it national effort to salvage the iran nuclear deal with thursday numbers at the end of the day and on friday it is the turn of the u.s. to release industrial production numbers. ofkets breathing a sigh relief on friday when word came that the united states had resolved issues with mexico for the time being and as a result, tariffs would not go on mexican imports as of today. welcome now on the telephone former u.s. ambassador to mexico, antonio gars a. mr. ambassador, thank you so much for being with us. can you hear me? david.: good morning, david: you have dodged a bullet. is there a huge sense of relief down there? relief andere is

anticipation about what this deal may mean with some concerns over the challenges of implementation and it being do in 90 days. many of the measures announced yesterday had been in prop -- have been in progress for some time. it looks like the urgency had not been there, but the ,nitiative to remain in mexico with a safe third country designation for mexico was a red line for them. in lieu of that they have the commitment to guatemalans remaining in mexico as they penned hondurans and salvadorans being consigned to guatemala. officially they talked about the use of the national guard on the southern border, up to 6000 troops and as you know, david,

there are some real issues about the national guard's capabilities. mexico,s remaining in back in december it was the .bject of a legal challenge additional use of the national notd with some concerns being implemented. in the 90 days, it came back to just a few days ago. we are not exactly sure that we know the entire deal. president trump just this morning said that they had fully signed and documented the important part of that deal with mexico. for many years it will be revealed in the not-too-distant future. do we have any idea what he's talking about? that's what's not

entirely clear. the announcement in the press conference was more one of crisis averted. that was the message in terms of specifics. the remain in mexico had been for migrant protocols back in december. there was some language around that. perhaps they are talking about additional resources that might be necessary to the legislature. the national guard may at -- may also involve some legislative tweaking. as you know, mexico has constitutional limitations international migratory protocols. but he may just be talking about mca that was submitted to

the mexican senate unmet -- on wednesday the week before last, the same day that the tariff threat was made. it's a little bit unclear, but there are a couple of things involveld perhaps additional appropriation of funds or president trump may be talking about moving usmca down there. at the othera look confusing tweets from over the weekend, now mexico is going to purchase a lot of agriculture from the u.s.? is that financially realistic? what did you make of that? it was hard to make much of that. without the threat of terrorists , the opportunities for agricultural products to be purchased here in mexico, they don't have a central buying authority that goes in and purchases at gopro to ask. products -- agg

products. the retaliatory initiatives may be on the next port. the president seemed to be talking about more trade and more opportunity now that the threat of tariffs is not hanging over the head of exporters and importers, but that -- you are right, that was not terribly clear. we will have to wait to see what that means. david: thank you very much -- alix: thank you very much for joining us, antonio garza. now for the market take, lisa erickson, head of traditional investments. the relief rally in the futures market was very clear on friday, however you and some of economists have been saying that no matter what, this persistent threat of tariffs is going to weigh on the u.s. economy. lisa: in theake?

near term there has been a resolution, but there is uncertainty introduced by the entire escalation in terms of what it can potentially due to the economy as it is in relatively slow growth mode and in addition the fact of the tariffs were being sent into a new area of emphasis. i think that all of those are going to spark intentionally more volatility in the economy and the markets. alix: last week's defensive rotation, is that the one you want to keep adding on? lisa: in general we are still looking at intermediate-term with newer areas of consumer discretionary. certainly again with the potential for more volatility over the rest of the year, you have risk off that will bolster

in some cases those utilities in tight sectors. david: i think we had some it's fair to say disappointing jobs numbers on friday. to what extent is the uncertainty over things like trade, mexico, we think we have , but it's not exactly there, to what extent is that affecting hiring decisions? to your point, that has been our main concern on some of these issues. there is an impact on economic activity anytime terrorists are imposed, but the greater impact is perhaps sentiment and business confidence, that potentially slowing down the investments. as far as the jobs number itself, it is something we are taking note of. some of the jobs numbers can be quite volatile. if you recall back in february we had a more disappointing number to have it bounced back with a potential indicator that we want to continue to watch to

see if the sentiment is coming through from trade. alix: eco-data in the u.s. is murky, potential continuing tariffs, did you learn anything about how president trump is going to deal with, say, china going forward? lisa: we certainly know that president trump has been willing to take a more forward approach on some or all of these issues. but that being said, in general we believe that many of these geopolitical issues are what we call edge lists issues. main impact on our economic and market outlook is basically to handicap the odds a bit downwards simply because of the greater level of uncertainty. ultimately, some of that buyingity can lead to opportunities, but in general you have that greater number of uncertainty making it more difficult to give a positive reading. lisa, lisa, -- alix:

thank you so much. coming up, the bank of japan -- the bank of japan governor says they have plenty of ammunition to deliver more stimulus if necessary. this is bloomberg. ♪ >> it's for sale, but we have to carefully monitor the situation.

viviana: this is "bloomberg daybreak," this is your bloomberg business flash. a blockbuster deal creating the world's second largest aerospace contractor. united technology agreeing for just raytheon in an all stock transaction with a market value of 50 $2 billion.

this year the companies will post annual revenue of $74 billion, second only to boeing. the deal will close next year after united technology separates its elevator and air-conditioner businesses. california, a major blow to the power generators that supply pg&e. federal regulators cannot keep their supply contracts from heavyg killed, leading to losses. they have a combined of $42 billion of long-term agreements .ith pg&e there is trouble with dollywood, industrieshollywood are threatening to leave because of the new abortion ban. nbc universal is among one of the companies that say they will takes effect in january.

find this story to really fascinating and i have to wonder, as you have run a company, when do you pivot from ethical issues of good business and an infrastructure there, to uprooting my entire production company. particularly in the entertainment area, you have to be very sensitive to your needs and you do business with. they are very sensitive to the issue and you have a lot of albums. of people who work for disney, you know, this affects their lives. alix: if you are going to make it difference comes from the corporate sector. central euros, policymakers around the world are ready to come to the rescue to meet their objectives. >> when some risks materialize and that the japanese economy is affected, if the momentum is on

responding by changing upwards. >> they are think the -- determined to act in the case of adverse contingencies and they stand ready to adjust all of appropriatements as to ensure that inflation continues to move towards the inflation aim. marketve a strong labor and inflation is the objective. still with us, lisa, i want to highlight a chart for you about what they are talking about. can the central bank fix this at this point? so, we think it is really

a tough conundrum. i think in the backdrop you have some tougher secular trends in terms of aging demographics and productivity that slow down that is perhaps causing the slow growth and therefore the slower inflation. i think that overall to your point, the fed and central banks around the world will do what they can to keep some of those inflation excitations high. in some ways they are growing against a headwind. even if they can't fix the problem, can they just not make it worse? i've got a chart to where we think we are now projecting. a fed rate cut as early as july? we do think really because of the developments with inflation on top of the fact that we are in a growing yet slowing u.s. economy, it is prompting the fed to look more at the reaction function and

potentially lean more dovish. again, how successful that's going to be to really spike up inflation remains to be seen. thatwe certainly do think over the last month we had expected maybe the fed to go up just to give them the option to cut further if they needed. what is your playbook, knowing that so much is priced in when you are skeptical? does it matter? lisa: we are neutral on bond , meaning right now that whatever the investor strategic allocation would be, bonds have stayed put at that. the key reason why is because with this more slow growth economy and the issues with inflation that we have been talking about, bond yields are

absolutely low. it looks like there is less probability in the near term and it really has a chance to rise and compensate for the income. we are not seeing bonds as a particularly attractive asset class. on the other hand with the volatility potential that we haven't talking about in the equity markets earlier, we think that the bond position is going to be important to provide stability and balanced to the portfolio. it's a neutral allocation of bonds at this point in time. lisa, thank you so much for being with us. coming up, merger monday. more on the megadeals kicking off the week in today's bottom line.

david: time now for the bottom line, where we look at three companies worth watching.

american airlines has extended their suspension of all flights intoeing 737 max aircraft early september, grounded now since march actually and said they had to wait a little longer, though they said that they still had confidence in the software fix when it comes. goes, well,nger it the bill keeps piling up. looking at salesforce here, purchasing tableau software at 15 billion dollars. bloomberg intelligence says that this is all about differentiation and for the first mover in a cloud application they made the large service presence and this is helping with that with the mulesoft acquisition they made to purchase the company in a good way. it's quite the track record. our third company, raytheon, u.s. technologies and their deal. for more on this we have brooke sutherland. this is quite a deal. with a string of

transformative moves. coming on the heels of rockwell collins with united technologies breaking itself up into three pieces. this is a lot going on and that would be the one issue that investors may be have, can management juggle all of this? i think the one thing that works in the favor of the company is that it will end up being very focused on the aerospace and defense industry, more attractive for investors. david: you have a great piece out right now that makes the simple point that if you bring in raytheon, the derivatives suddenly up to where you started with a much more focused company. >> it is, it's really fascinating. this is roughly what united technologies was targeting them for in their business right now. you are keeping the scale of the of the, but losing some factors that investors didn't like where you are dealing with different margin and growth profiles. on the other hand, one issue i have had with all of these

industrial breakups is do you wind up looking a little too smart in the next recession? do you miss that diversity? this solves the problem. must be like -- oh man, i want to do that, too. >> you are right, though, they were said to be interested in rockwell collins and here's another one they can be in contention for. are really specifically focusing on defense. that might seem vulnerable, but given where president trump is with defense spending, not a bad bet? raytheon is interesting, 40% of the backlog is to overseas buyers. they are not as focused on the pentagon is some other contractors and they are in high-value areas like missile defense and electronic systems that will be in demand regardless of what happens with the u.s. defense budget. alix: what about boeing? >> that was interesting, i wondered what the 737 max crisis

might mean for the boeing leveraging crisis. i think that it is logical that the balance of power shifts and this deal gives united technologies the power to go back and say -- we're not going to take your push for price raises anymore. we are also a very big player with a high-value product and we are going to stick to our guns a bit. alix: totally great point. coming up, truckin taking a u-turn. what's driving the demand in the transport industry as there's a record rebound in a latest survey. this is bloomberg. ♪ the latest innovation from xfinity

isn't just a store. it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. alix: this is "bloomberg daybreak." i am alix steel. s&p punched above the moving average, the best day since 2009. .4%.utures up

european stocks modestly higher. the industrial sector in europe flat. who when united tech and raytheon join forces? --lar down .3% pure the dollar down .3%. dollar-yen higher. that dynamic playing out. selling on the bond market, yields up by five basis points. it feels like the unwind, money into yen, money into gold, treasuries reversing after yesterday's -- after last week's crazy week. bank of america is out with its latest survey which saw a record surge in the zero to three month demand indicator. here to explain is can hector, bank of america, merrill lynch transportation analyst. it is a nice window into the

u.s. economy. we saw that rebound. sustainable? we saw the greatest rebound since the start of our survey, up 19%, which is odd, because we solid the celebrating. -- we saw it decelerating. seeing this rebound, a couple of reasons we think. there was truck overhauls, inspectors were looking at the trucks, that could cause of pulling out of capacity, it could be there was a rebound of spring demand. we saw after floods and issues that help up freight, could be we saw a nice spring rebound. there are a host of reasons why we could see the rebound. it was on after the accelerating downside. david: over time, what is the relationship between the numbers you follow in trucking and the underlying economy?

can you track it through. ken: we see a good correlation between our survey and what is coming up with ism and ip. it has been in good real-time indicator. trucks moved 66% of all freight, 83% of all revenue spent in transportation is spent on trucking. getting a read of the shippers is a good insight into the economy. alix: and in specific areas. if you break up where retail, consumer goods, what transports the most goods, it is levered to the consumer. what are you noticing in terms of what is doing well and what is not? ken: we saw more than half of what truckload carriers move is retail. less is manufacturing, and then food and beverage, and you moved down. in the survey, we do not break out specifically -- we have not broken up what is up with the sectors of the economy, but we

do not break it out in each subsector. i assume when you talk about consumer goods, you are including amazon? this is online as well as in store? ken: that's right. david: what effect has online shipping had an trucking? ken: it has change the shipping patterns. instead of going manufacturer to store, you're moving from manufacturer to regional d.c. and then you have more of those fulfillment centers you are trucking to. david: does that lower demand for trucking because you have one leg? ken: you may still have a manufacturer to a regional d.c. in the fulfillment center. it can change the shipping patterns of how quickly your getting to the d.c. and then that leg, instead of going the store cannot going to small package to the home. alix: what are inventories telling you right now? ken: inventories creeped up.

we had a capacity rollover. it looked like another reason for the demand spike, i mentioned some of the weather. you also had orders for new tractors that got cut down to 10,000. less capacity coming in. after last year, 50,000 per month, well above replacement rate of the average tractors ordered per month. we are seeing a lot of tractors being taken out. we asked what is your view of your inventory and they are telling us it was creeping up? do they tend to think user demand is not there? ken: the concept is the short-term. , thenwas decelerating they were getting more pessimistic, but despite good chew up that extra inventory. alix: what about six to 12 months? , it hit thet survey

all-time low. in're looking at 12 months their view is getting increasingly pessimistic, whether it is tariffs on china or mexico, the state of demand, or the weather. you it all of these things putting pressure on long-term demand. we saw that rebound off the lows. a little bit off the lows but not a great place from a long-term outlook. alix: thank you are much. i love the real-time read on the economy. david: wonderful. whether trucking or industrial production, the question is the same. is the trade war affecting the economy, or is it noise? welcome. what about the basic question of when we will see the trade conflicts show up in the real economy? what the fed people keep talking about, we keep looking for that. >> relating to this conversation

about trucking, we are in a world with a lot more volatility. it used to be the government's job was to damp uncertainty. now we have a government manufacturing uncertainty about what we will do here or there. we are already seeing the effects of the uncertainty in things like the dampening of investment. who wants to commit to a location for a plant for a new not knowine if you do who your suppliers will be and to your customer will be? is that a durable goods investment? where does it show up? paul: durable goods of the most sensitive, but any type of investment will be reduced. that is probably already showing up in the data. if you are looking for something like tariffs that cause the financial crisis, that is unlikely. is more likely damage

reduction in investment, lower productivity growth, lower growth overall, but we will have to watch over time to see those effects. alix: i was struck with the trucking analysis that you see the shakeout in one to three months demand and they are transporting consumer goods and retail, but hinging on the consumer. paul: he was saying it was accelerating down and then it takes the biggest jump up. this world is just a lot more uncertainty in -- uncertain and people are turning on a dime. that is not good for long-run growth for investment and productivity. alix: totally agree. if you take a side long-term investment productivity, how does a consumer respond to that volatility? paul: it could be consumer confidence deteriorates. i would see that as a gradual playing out. it could be masked. people are watching these things like it is professional

wrestling. when it is like our team won, they might report they are feeling good. i think the trend will be down. david: that brings us back to jobs. very disappointing numbers on friday. you talk about these jobs numbers over the last months, they've been up, down, what is causing that? paul: uncertainty is a big part of this. you can think of hiring workers as an investment on the part of our firm. you have training costs, hiring costs. you have to of other severance costs. if the world has suddenly got up and down every day, you will hold back on making the kind of investment in people. alix: not only that. you hold back with people. there was great research about how much the tariffs have cost households. far,at we have seen so that has been $831 per household

versus 900 you got back from the tax cuts. paul: i think that number would be the cost over a year. that is starting to show up in the household budget, but it is relatively small. it may take time for people to appreciate how big the hit is going to be on their purchasing power. not haveand now we do the 5% tariffs on mexico, does that inject certainty? paul: we do not today, but who knows? it does not bring certainty. purchasinghinking from supplier, a month ago mexico had been a clear option. that is less clear now. alix: president trump speaking to cnbc and talking about china now. he says that china deal will work out. the question is when? and once you sign it or once you

have an agreement, does that mean no more tariffs? david: i question that they have to. i'm not sure president xi believes they have to. he has a big economy and a lot of control. let's go back to paul romer. you have an economy in china that is different from ours. president xi has more options in dealing with a trade war. paul: i've been visiting with china recently, i've been invited to give talks in the tech industry, and the mood there is grim but also determined. they have decided the united states is not a reliable trading partner and they cannot maintain their economy or their tech industry if it is dependent on critical components in the united states. i think they are on a trajectory that they will not move off of, becoming self-sufficient in tech. even if there is a paper deal

that tries to cover over this uncertainty in this trade war, i think we have seen a permanent change in chinese approach. david: is it possible for them to become self-reliant and over what period of time? how long are we talking about? was: that was a question i asking people and they seem to think it was a long time. not five years. maybe 10 years. they will figure out a way to manage the transition but there is no question that they are on a trajectory to be completely independent of the united states. they cannot count on us anymore. david: paul romer will be staying with us. coming up, we will talk about antitrust scrutiny in big tex and while paul romer says it could be a waste of time. that is next and this is bloomberg. ♪

i am viviana hurtado in the hewlett-packard enterprise greenroom. power,up on balance of sec bureau of competition director. here is your bloomberg business flash. salesforce.com agreeing to buy cap low software. biggest dealrce's ever and a major bid for the company to build its analytics offering. the company represents a 42% premium to tableau's close. a chapter 11 filing allows a company to keep filing while it comes up with a plan to pay its obligations. pay $225, it agreed to

million to settle claims illegally sold opioid painkillers. in japan, finance ministers from the group of 20 agreed to find a common way to tackle digital companies like facebook and google. those countries may pay taxes regardless of whether they have a physical presence. the goal is to come up with new rules by next year. i'm viviana hurtado and that is your bloomberg business flash. .avid: time for follow the lead a deep dive into headlines making stories and moving markets with key insights from industry veterans and insiders. today our focus is on the government antitrust of big tech companies. paul romer is still with us. let's turn to antitrust in tech. let's talk about what the problem is. i just did rough calculations about market share.

to give an illustration of some of the big tech companies, if you're talking about out spending -- app spending between apple and google -- search engine, google has 90%, and amazon has 50% of online sales. that would raise some question about what is going on in the marketplace. paul: i think it goes beyond traditional economic concerns. we should be asking whether mark zuckerberg can personally determine the outcome of the next election. a lot of the campaign will play out on facebook, and small differences in whether you keep the pelosi fake videos up, these could influence the outcome. if we have one person with that kind of power, we have failed to maintain a competitive environment. david: awakes listing antitrust laws have been interpreted through the chicago school, is the price going up?

does that way of analyzing the problem applied to the big tech companies? worked've a colleague i with that justice when we were doing the microsoft case. he argued that consumer welfare standard still works if it applies correctly. the problem is we're not applying it correctly and focusing of the effect on price, not the other things that matters. the other thing is when you read ,is analysis of antitrust work there are all these excuses. if the judges had not decided incorrectly, it would still work. at some point you have to say of the judges will not go along with your reading of the law, maybe you have to lower your expectations about what it can do. david: this brings us to another case you have commented on, the american express case. you had a tweet that laid out what happened in that case over the many years. in 2010, the department of ,ustice sued american express

and then the supreme court in 2018 said it is ok with us. paul: this was about a conduct remedy to stop doing this thing. they were not even trying to break it up. isnk about how unlikely it these judges will approve a breakup. alix: that might not work out. more regulation to monitor mark zuckerberg may be dicey. what is a better solution? paul: people are underestimating the value of competition. if you have lots of voices and lots of firms and people have lots of choice, who do you buy from, what you read? it is a bigger outcome than some big monolith we are trying to regulate. we need to get back to competition. david: that is easier said than done. if you're a publisher trying to get into the digital advertising market, it is almost hopeless. paul: this is where the government needs to do its job. let's create the conditions

where we have real competition. think about the newspaper business 20 years ago. we do not feel like we had to regulate one newspaper. there were some papers publishing stories about bat boy, we did not care because the main papers were serious. those how to create conditions of competition? paul: antitrust has a job to do to watch for abusive behavior. but if we want to get back to more firms, yet great incentives for existing firms to divest. paul: and personal income tax, we talk about the progressive income tax causes the marriage penalty and we want a penalty on the corporate side. we want a divorce incentive. david: how big does it have to be? the eu has find google billions of billions of euros. it is not stop them. paul: when he to be looking at big as a percent, not a dollar

amount. imagine the first $5 billion of targeted at revenue, the taxes zero, but the next $5 billion it is 20%. david: that would get their attention. paul: paul romer, nobel laureate, thank you so much. such a pleasure. we appreciate it. united technologies agreeing to by raytheon, forming a defense giant. we will break that down next. president trump speaking on cnbc. there are some of the headlines. he says the fed is not listen to him and made a mistake. he is also saying china devalued its currency. we will monitor those headlines as well. this is bloomberg. ♪

alix: i am watching united

technologies agreeing to by raytheon forming a defense juggernaut. joining us is an edward jones analyst who has a buy rating on united tech. do you like the deal? >> definitely. it was surprising to hear the news given all of the separation activities united technologies is going through. strategically it is a great deal for united technologies. alix: what are some of the outstanding questions you still have? eff: definitely the pace of the migration of the businesses. 2020. looking into we will look to get more details on that as we go through it. is full approval process always at risk with any merger or acquisition. it seems like it is less onerous than we first anticipated. it looks like there is only 10 jurisdictions we have to go through. alix: are you can -- david: are

you concerned about management bandwidth? as a practical matter, that takes a year or two, they are distracted and not inventing new products. jeff: that was one of our concerns and one of the surprises that developed over the weekend. they have a lot on their plate. they trying to address some of that in the call, talking about how this is a corporate initiative and not taking away from the operational focus that the businesses have, but that is definitely still an issue when talking about the sea suite and people having to manage the day-to-day operation. this is probably one of the risks, long-term. we know they can work through these issues. it could cause volatility in the shorter term. alix: you also cover going. -- you also cover boeing. you have a hold rating on that.

jeff: we are seeing activities because of the concern that the large commercial airliners like boeing will exert a lot of that pricing pressure and try to get more concessions. with more scale, i think that does provide them the opportunity to negotiate some of those pricing issues. it also gives them the opportunity to help improve operations and reduce their cost so they can give a little bit of price in those discussions. we will continue to see these moves and consolidation, potentially not only for growth but also to manage the pricing pressures. alix: thanks a lot. appreciate it. president trump speaking on cnbc and it ties into the fence. raytheon gets 40% of orders from overseas. president trump says he does not want to cut back on spending for

defense but he is concerned about united technologies and raytheon. david: he is concerned about getting the pricing down and this will not get the pricing down. out thato, headlines trump says he expects to meet with president xi and that no deal with china would mean more tariffs. the question is when? when would they meet? david: the expectations are going down at the meeting at g20. alix: that that is very disruptive, he says. up, krishna memani will be joining jonathan ferro. this is bloomberg. ♪

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

jonathan: the equity market bounce continues. president trump dropping his plans to slap tariffs on mexico. facingance ministers concerns over low growth, keeping investors focused on the next central bank move. more officials signal readiness to step in. 30 minutes until the opening bell, here's your monday morning price action. futures positive on the s&p. treasuries a little bit softer. yields higher four basis points. the dollar stronger. euro, 1.1309. we begin with the big issue of the optimism on the heels of the biggest weekly rally of 2019. >> the rebound. >> it does suggest the market is full. >> we could be positioning for short-term upside. >> we do look for opportunities to get in.