♪ welcome to "street signs" i'm julianna tatelbaum. >> i'm willem marx, these your headlines. >> the shanghai composite ends at highest level since june, 2018, and posts biggest one-day game in roughly 3 1/2 years after president trump delays a tariff hike on chinese goods. autos and basic resources leave europe higher amid u.s. and china will soon clinch a trade deal. pharma deal makes a bid to

by u.s.-therapeutics and warren buffett is looking for big deals. the oracle of omaha says he's looking for a elephant sized acquisition but warns prices are too high we hear from the them himself at 12 central european time ♪ well, it has been an incredible overnight session in the asian markets on the back of that news that president trump will delay the march 1 deadline for hiking tariffs the shanghai composite up 5.6% very, very serious gains and one statistic i want to throw out there for you, net flows into the shanghai and shenzhen markets as of friday

topped 110 billion more than three times that in the first two months of 2018, so huge inflows into the china markets around the u.s./china trade news. >> all this on the back, of course, of one presidential tweet. it's remarkable when you look at numbers there. seeing the impacts of geopolitics have on the world. now of course president trump has delayed that march 1st deadline to raise new tariffs on china. he insists there's been progress after last week's trade talks. trump said in a tweet he plans to meet xi jinping to sign a final agreement. trump praised china and hinted a breakthrough could happen soon. >> all works well, we'll have very big news over the next week or two and it's really been terrific. i tell you that whole relationship has been outstanding. we put ourselves into a position

of strength for the first time in about 35 years or probably a lot more than that but china has been terrific. we want to make a deal that's great for both countries, and that's really what we're going to be doing. >> we're joined by the head of investment strategy at barclays investment solutions thanks so much for being with us do you think this is a big deal from the u.s. president? does this matter to investors yet or do we have to wait until we see some concrete deliverance? >> i do think this is very important to investors, something that's been long awaited as one of the clouds hanging over the trade and economy. as we see, it's very welcomed by markets. for us, it has been important that we see some steps in the right direction. and this confirms that there is commitment there, yes. >> now, before today obviously we saw massive moves overnight in asia, but before today equities were rallying quite strongly already, the dow and

the nasdaq saw nine-straight weeks of gains in terms of the expectation for the market, is it fair to say that this was already priced in? where is this additional exuberance coming from >> very good question. a lot of the exuberance has been pricing markets, something we've been recognizing as well, so in recent weeks we have been reducing our ek writety holdings because it has been quite -- yeah, in the last 12 months we've seen a lot of volatility, 201, start of the year, professionals were talking about a meltup according to the work we've been doing internally, we see it's one of the highest investor optimism in the last five years. so in that context, we think a lot has been investor expectations you could get some additional positive bounce on these headlines but a lot has been priced in for that reason and reducing equity oldings. >> how well do you think the economic data in europe over the

last few weeks has been reflected in this season's earnings that we've seen >> that's an excellent question. so, for european data has been disappointing and disappointing for a while, that's been the backdrop but a lot of one-offs we've seen the italian political situation. we've seen france the yellow vest movement. we've had issues in germany, a lot of one-offs. we're still not seeing a bounce happening yet. and in that backdrop where the economy is still in a very difficult shape, we have come less positive on european equ y equiti equities expectations in general have come up quite a bit but interesting for europe it has not happened yet >> would you say -- go so far as saying that european equities are a value trap >> not a value trap per se but you need to see stronger economic growth and the starting base is very important so for that reason, we're still more comfortable with u.s. or emerging equities compared to

european equities and ones that economic lift will happen, european equities will become attractive but not for now. excellent. stay with us now, huawei entered the market with a new hand phone and will retail for $2,600. the chairman says he agrees with president trump that the u.s. should implement 5g technology quickly. recent months the u.s. accused the chinese tech firm of enabling chinese state espionage efforts. now our colleague is at the mobile world congress event in barcelona where she's been tracking all the latest news and product launches in the telecom sector good morning, karen. >> good morning. there have been a ton of product launches and the most exciting take away message is these foldable phones but they're very

expensive. we thought the apple iphone at $1,000 was expensive, samsung close to 2,000 huawei 2,600 who is going to buy these cell phones what do you make of the fact that we've now got these phones that are getting more expensive? >> a ton of announcements over the last day or so here, and the foldable phone has got a lot of attention but it's also all about 5g and the big range there as well. so we've got a bunch of 5g phones from north of $500 up to $2,600 as you say and that gives a range for all types of consumers. >> the price tag is eye watering expensive for a consumer at this point when you have economies starting to slow down a little bit, do you see much volume at the high end when you're selling these devices whether on contract or out right to customers? >> well, it's really what we call a pro-sumer, wants a smart

phone and tablet combined at those kind of prices but it does create excitement in this sector loads of people will come and see it in our retail stores will give a lot of excitement it's just the start of this fold factor where technology can be in a few year's time and what a foldable screen will look like in a few years. >> it's a window into the future. >> very much so. >> i want to talk to you about huawei as well because your company has been a long supporter of huawei, one of the early partnerships inked in europe and effectively helped them build out to scale across european markets with such a key partnership arrangement. we know so far that uk intelligence system is looking at whether they should include huawei or exclude them what difference would it make to your company if huawei were not part of the roll out in 5g in the uk and europe? >> we're having a lot of discussion at the moment obviously on this topic, as we would do with any roll out of new technology and

infrastructure in the uk, the safety and security of our network and customers is the most important thing we're focussed on. since 2006, we've collaborated with our government and security services on how we design our network, how we architect that network, with our multivendor policy of working with a number of vendors including huawei and it's important that we continue to have those discussions with government and the security services about 5g and the type of venders and infrastructure we have in our network. >> it feels like if there's a decision that goes against huawei, you're very back ward looking and what you would have to replace instead of talking about the future and rolling out new 5g, is that how we would perceive it? >> huawei is a large part of european infrastructure as well. if we were to look at replacing parts or swapping parts of our vendor ecosystem, that would mean we're spending time on

replacing life like kit rather than innovating. that's something we're looking at. >> and money weknow the industry has been constrained on profits and revenues if you're replacing kit, that means it's much more expensive >> well, we have to see what the outcome of the discussions are the most important thing for us is focussing on security of our customers and security of our network, discussing with government and the security services what the architecture of that network will be and will be prepared for any event chulty of those conclusions. >> talking about trade more broadly and huawei is very much the decision that everybody is watching, but it also suggests that there's a story of borders going up across the industry curious because you deal with a shenzhen based company to roll out their 5g phone this is an android phone away from the big headlines but there's still a chinese operator are you concerned that these types of deals might be threatened if we have borders going up around where some of these goods are manufactured

>> well, this industry for years has been about collaboration and partnership and we look to partner with the very best to innovate and bring to our customers. we collaborate with government and security services for what's right for the network and right for the security of our customers, but partnership and collaboration is something we're very, very focussed on. we might as well put brexit into this. it's something you're talking about. what are the questions you're being asked about how destructive that could be for telecommunications and customers? >> the number one question i get is am i still going to be able to roam free across europe >> that's fine. >> that will be okay we've ensured that all of those deals are in place as an industry with the other operators too. for us there are many different scenarios we have to plan for for brexit the most important thing we're focussed on is keeping our customers connected and ensuring we have the supply chain, the access to labor, for continuity to keep our customers connected.

we have to plan for a number of scenarios at the moment. we are on top of that. >> mark, thank you for joining us the ceo of ee here at mobile world congress plenty more conversations coming your way we mentioned huawei. many of the norwegian telecommunications carriers have been using huawei kit for many, many years i'll talk about sigve about the challenges rolling out 5g with or without huawei. stay tuned fsh that conversation coming your way shortly. the big things here at mobile world congress 5g and expensive phones willem, julianna, i wonder if you're looking at buying one of those expensive phones >> if i want to buy one, i need to save up starting yesterday. i want to take you to the auto sector, one of the most trade sensitive here in europe we're seeing very strong gains across the space, volkswagen, bmw all up north of 1% porsche up more than 2%.

this sector has been doing well recently, so some of these expectations were surely baked in as we were just discussing. nevertheless, the fact that trump has delayed the deadline, offered a piece of concrete news flow that is providing a further boost to the sector. remember, it is not just the deadline that auto investors are watching we've also -- we were also awaiting trump's decision around the commerce department's report into the national security threat that auto imports potentially pose for the u.s now, that was delivered last week trump has 90 days from that point to determine what to do. so another huge uncertainty for the auto sector. but at the moment it seems investors are firmly focussed on this news around the trade the march 1 deadline perhaps some short covering but overall quite a strong picture for the auto sector. now let's look at chip makers this morning up quite strongly as you can see across the board. ams, this tends to be quite a big mover on days around news

flow this is the biggest mover of the day up nearly 6% so, quite strong moves there as karen was just mentioning, huawei 5g hugely in focus as well and we had some signs of potential softening from president trump on the huawei front toward the end of last week, so perhaps providing a little bit of boost to the broader tech space as well now, black rock ceo warned that many people are overlooking the impact of u.s. treasuries from the u.s./china trade war we talk about tech and talk a lot about the auto sector but u.s. treasuries are being somewhat overlooked. fink explained his concerns to cnbc exclusively >> as china reduces its trade deficits with the united states, the likelihood of them reducing the need to own u.s. treasuries are large. and so over the next few years this is something we are not

talking enough about and we need to be -- we need to be talking about this, we should expect over a number of years ahead less ownership of u.s. treasuries as the deficits shrink, but at that time, that's the same time the u.s. deficit still seem to be growing at a trillion dollars. >> still joined by sean paul, what you're hearing there from larry fink about some of the perhaps second order sort of affects from any resolution of the u.s. china trade dispute, is that something that you think market participants have been sufficiently aware of? >> not in the near term i will probably say a lot of valid points raised there. strategically over the long term, supply demand dynamics are important and that will take time to filter through of pricing for assets for us, we're looking how to position client portfolios tactically >> when you talk about tactical drivers r we talking more about the feds position? >> for example, yes. >> let's talk about that

do you expect them to return to the idea of further near-term interest rate hikes after dovish language over the last couple months >> the language has changed quite dramatically at the end of last year. it was not too long ago the fed mentioned they need to go faster for longer so in the period of just six months, we see how language can change we actually think that markets have overinterpreted the facts if you get further into a hiking cycle, it's quite realistic for the central bank to pause to see how it affects the real economy. >> looking at financial markets, we've also seen a dramatic shift and just speaking over the last ten minutes about the rally we've seen since the fed has become more dovish so does that mean -- that in itself mean that the fed now has more room than before to return to their path?

>> not necessarily i don't think it's necessarily stocks that determine the policy i think inflation expectations have been coming off we have seen energy collapsing towards the back end of last year, so actually creates some room for the fed to take a pause, but i would not be surprised if the language could shift over the next four months. >> in terms of the portfolio positioning that you would advise at this point, how do you think of fixed income versus equities. >> at the moment we're on the way to fixed income. we're happy to hold cash as the attractiveness for investors, we think cash is more interesting than government bonds. if you just own government bonds, the premium you receive for holding the ratio risk is very low purely because cash rates has gone up so much. we think about equities, because of the elevated optimism, that's now an opportunity for investors to start reducing the weight as well we are in the moment of building up more cash positions and portfolios at the expense of government bonds.

>> thank you very much jean paul yeager coming up on the show, european leaders accuse theresa may of reckless decision making as the clock ticks closer to brexit more on that after this break. - i think the best companies succeed as a team,

and our shirts from custom ink help bring us together. we just upload our logo, and if we have any questions, customer service is there to help. - [male] custom ink has hundreds of products to help you look and feel like a team. get started today at customink.com.

to help you look and feel like a team. i can customize each line for each family member? yup. and since it comes with your internet, you can switch wireless carriers and save hundreds of dollars a year. are you pullin' my leg? nope. you sure you're not pullin' my leg? i think it's your dog. oh it's him. good call. get the data options you need and still save hundreds of dollars. do you guys sell, other dogs? now that's simple, easy, awesome. customize each line by paying for data by the gig or get unlimited. get $250 back when you pre-order a new samsung galaxy. click, call, or visit a store today.

♪ well, good morning and welcome back to "street signs. european markets are following asia higher this morning to the tune of 0.3%, so not quite the extent of the gains we saw in asia, but that is as you might expect we're also coming off of a week last week when stocks rose as informsers shrugged off more negative data on the economic front here in europe and germany in particular. but the narrative seems to be very much dominated by what goes on between the u.s. and china. you were seeing a nice lift to the stock 600. we just brought you moments ago the autos and the chip makers, two of the most china sensitive sectors up quite strongly, so it is very clear what investors are watching today let's get into the european markets and see how the regional

split is looking the ftse 100 up to the tune of 0 .29% the dax up 0 .8% 23467 ftse mib is up 0 .9% and the cac up 0.3%. very evenly spread gains it is a positive picture overall. now in addition to u.s./china, we have a number of other big geopolitical events that investors are watching this week president trump and kim jong-un meeting in vietnam we'll bring you the coverage around that event and jerome powell giving his semiannual address to the senate banking committee on february 26th so it's not just u.s./china but at the moment it feels that is driving a lot of move so far willem >> thanks so much, julianna. warren buffett says he wants to use berkshire hathaway to make a, quote, elephant-sized acquisition. but buffett told shareholders at his annual letter that prices are too high for businesses with good long-term prospects

hath away's cash pile topped $1 at the end of last year. we'll speak with warren buffett at 12:00 p.m. central european time. in europe, roche says it will buy spark therapeutics in a deal worth $4.3 billion as they look to strengthen their gene therapy portfolio. the drug maker sited specific interest in spark's hemophilia program. that's a premium of 1 2% now we will be speaking to roche ceo at 11 cet. tune in for that first-on interview. in the chemical space, german chemical's firm posted a sharp decline and blamed higher

costs. the group said 2019 earnings could be half the level of those last year. they announced that margins have been unusually high for the past two years and that they will drop significantly in the coming year now just to put that into context, one of the most cyclical chemical sectors, certainly sends some signals around the cyclicality and where we are in the cycle. now, switching gears, persimmon is under pressure. the reuters reports british housing minister james broken shire has, quote, increasingly concerned by a so-called help to by program it helps buyers purchase homes with a small deposit it poor workmanship and rising leasehold charges were responsible. persimmon declined to comment on the reports. and the uk prime minister theresa may has pushed back the date for a vote in parliament on brexit deal until at least march

12th the so-called meaningful vote was expected this week but may says she needs more time to agree on a plan. of course european officials said they are increasingly frustrated as those negotiations continue commission president said he has, quote, a certain brexit fatigue, meanwhile, european parliament coordinator criticized may's decision over the weekend to delay the vote. he called it a, quote, reckless political move and said it adds to uncertainty on both sides of the channel. our colleagues spoke with the dutch prime minister earlier and said the eu is anxious to reach a conclusion on brexit. >> good friend who have to tell you the truth now and then and i think me myself is one of the best friends without a kingdom. we are highly worried about the course taken, the brexit and now the way it's being handled and the fact that we're approaching the brexit date in only four weeks and still the deal is not in sight so we have to be very forthright

with you and if you aren't, your friends are not delivering we have to be candid and open. >> we had a chance last week to examine how the uncertainty around brexit is affecting at least one u.s. business doing trade both sides of the english channel. take a listen. >> prime minister. >> thank you, mr. speaker. >> theresa may rises to her latest parliamentary challenge this week in westminster, businesses across britain struggle with a unknown future u.s. ecommerce firm pfs has chosen a different route what we see now is not the full picture? >> no lisa opened this new fulfillment center in south hampton. she's barely gotten her feet under the table, but brex sit's march 29th deadline is already demanding her attention. >> it's a task trying to start something up in that span of time and it's also a task trying

to get inventory moved and imported here and set up i believe it's a little chaotic in the eginning, but you know, at the end, our goal is to service our client >> those clients are as global as their consumers and her company employees thousands of workers world wide until recently, pfs had only one major european warehouse in belgium. just an hour outside brussels where theresa may traveled again last week to try to salvage her divorce deal with the eu >> are you expecting a breakthrough, prime minister regardless of how well or badly brexit negotiations go in the coming weeks, it's clear that many sectors seeking to do business here in britain have already made significant changes. and this warehouse is one big example. logistics can be relentless and firms like pfs can't wait for the politicians while they wrap, pack and ship people's parcels. >> there's timelines

it takes time to get equipment it takes time to get your systems up and going moch of course you have to go through the process of hiring employees and you know times i wouldn't necessarily say on the side of the retailers we service >> five weeks to go, if it's a no deal, there would be for them an initial cost increase as they up their capacity to enable traders that do business with the eu kpeens to work as if they were doing trade with the rest of the world today and those costs have already been incurred as a contingency measure. >> brexit may have shattered brexit politics but the economy has so far survived with unemployment at lowest level in generations. >> the uncertainty of not knowing what direction you're going to proceed that's the biggest concern and biggest challenge here. >> and as firms make prep raxs and banks book provisions, those brexit concerns are now big enough to fill a building.

coming up on the show, we'll be live at the mobile world congress with the chief executive sigve at 10:30 cet the communal feast. potluck. this parade of dishes will soon be yours to scrub. and they're not even... yours. new and improved dawn ultra can finish off this buffet. each drop now has even more grease-cleaning power. so you can scrub 50% less, and get done faster. next month, their place! a drop of dawn and grease is gone.

unpredictable crohn's symptoms following you? for adults with moderately to severely active crohn's disease, stelara® works differently. studies showed relief and remission, with dosing every 8 weeks. stelara® may lower your ability to fight infections and may increase your risk of infections and cancer. some serious infections require hospitalization. before treatment, get tested for tb. tell your doctor if you have an infection or flu-like symptoms or sores, have had cancer, or develop new skin growths, or if anyone in your house needs or recently had a vaccine. alert your doctor of new or worsening problems, including headaches, seizures, confusion and vision problems. these may be signs of a rare, potentially fatal brain condition. some serious allergic reactions and lung inflammation can occur. talk to your doctor today, and learn how janssen can help you explore cost support options. remission can start with stelara®.

explore cost support options. with tough food, your dentures may slip and fall. fixodent ultra-max hold gives you the strongest hold ever to lock your dentures. so now you can eat tough food without worry. fixodent and forget it.

♪ welcome back to "street signs" i'm willem marx. >> i'm julianna tatelbaum and these are your headlines shanghai composite posts its biggest one-day gain in roughly three and a half years while autos an basic resources lead europe higher after president trump delays a tariff hike on chinese goods. huawei launches a 2,600 dollar foldable smart phone as questions about the company remake ericson's ceo tells cnbc huawei's troubles have not had an impact on his firm. >> the reality is if we look at facts, we don't see any impact in our order of this almost the opposite. >> warren buffett is looking for big deals. the oracle of omaha says he's on the hunt for a, quote, elephant-sized acquisition but

says prices are too high we hear from the man himself at 12 cet. and green book picks up the oscar for best picture of the 91st annual academy awards while boemhemia rhapsody and roma also win big. ♪ european markets are following asia higher this morning very sizable gains across the board the strongest gainers are being seen in ftse mib, those italian stocks up quite strongly the dax also up a decent 0 .5% the cac and ftse 100 up as well. very evenly spread the mack koe narrative dominated by the headlines around trump and the march 1 deadline, the fact that he has moved forward with a concrete step of delaying a planned increase in those tariffs on march 1 so while the market was

expecting some sort of statement, we are seeing the fact that this is confirmed provide a further boost to stocks now, in addition to the u.s./china news, we also have investors looking to the trump/kim summit in vietnam this week and jerome powell giving his semiannual testimony to the senate banking committee we also have a number of data points out of the u.s. so not just about u.s./china trade for the week, but right now that is dominating the market narrative now let's take a look at fx markets. overnight, the juan jumped to the strongest since the dollar since july of last year. we'll look for details around what currency promises are made in any potential deal between the u.s. and china so the wun certainly one to touch the euro is just above the 113 mark sterling trading higher versus the dollar about 18 bases point up at the moment above that 130 mark, another key week for

brexit but perhaps not quite as key as some were expecting earlier on now, let's take a look at u.s. futures. we saw the u.s. markets rally pretty decently on friday led by technology it looks as though no surprise there the s&p, the dow and the nasdaq are all poised for a stronger start as i said, in addition to u.s. china, we'll keep an eye on the comments from jerome powell and key data points this week. >> they will launch a 5g pilot with nokia in denmark looking to generate the next technology trials will start in the second quarter of this year and our colleague karen choi joins us from barcelona where she is joined by someone who can offer us more detail on this announcement, karen. >> willem, thank you very much 5g and all the commercial trials are staking place and what changes need to be made. i want to bring in the ceo of

telenor. nice to see you. >> nice to see you. >> the latest trial is in denmark. what are you hoping to achieve with this one? >> yeah, we want to take a leading position of 5g in the scandinavian markets this is the third pilot we are starting it's basically three things we are testing out. one is for the consumer segment testing out 5g as access to broad band for the homes and then we have industry applications we are testing it out with the robotics we are testing it out with some manufacturing companies and we are learning from this different cases. then later we want to scale it back >> i saw one of the creative solutions. basically a device you can put in a house or in a building so you don't have to lay those cables in the final mile as the industry calls it.

sounds like if you held back on some of the investments, some of the creative solutions are coming where it can lower the cost of investment for carriers like you, is that how we should see it >> it can lower the costs. it can go to remote areas. that's why we're testing 5g out replacement for fiber or fixed connections. we're testing that out both in norway and in denmark. >> curious about how scale works with 5g roll out because you're one operator that has an enormous subscriber base 173 million customers across europe and asia. can this be leveraged with the roll out of 5g or not. are there synergies when we talk about your massive subscriber

base >> yeah, there are synergies when you're buying this. we utilize that to make better prices but i will say there is first of all we are trying out things in bonds markets. that's why we want to be ahead in scandinavia and learn from those cases and bring it into the asian markets later. >> decision whether huawei can be included in european roll out or not i gather you had a partnership with them since 2009 and if you can't buy huawei equipment, you have to buy something else for europe surely that scale advantage is destroyed? >> we are working with all the different vendors. we do that all to get the best of innovation, but we do it also to get the best of prices. that's why we are not testing out 5g with three different lenders. we haven't chosen which one to go with. we are following the situation

very closely and make it later. >> is this different to 4g would you have considered trialing all of the major players previously is that something you would do in the past? >> yeah. we've always done that that's what i'm referring to that's important for groups like ourself both to get the best out of innovation but also set them up against each other to get the best prices. so this is something we had the supporters for a very long time. >> nokea hit back if they were shut out of the system nokia says that's not the case, that doesn't stand up. i know you have 3g and 4g equipment supplied by huawei, can you blend that with a another provider whether a nokia or erickson. >> that's why we're testing it out with all the different

venders and make a decision later. at the same time, we're working closely together with the national security agencies to make sure that we are complying with the different laws there is and then we will see what the choice and decision will be later. >> i want to ask you about these very expensive phones that have been unveiled, foldables, one priced over $2,600 how do you think that's going to connect with all the markets that you serve >> i think that's very, very early and why we are focussing on 5g and most of the industry applications and also some public sector applications we are testing out in hospitals. we are testing it out with emergency services and 5g for us is mostly about that we don't see that many consumer applications >> thank you so much for joining us here at mobile congress we'll talk with european regulator. don't forget as we see a lot of adoption of super fast speeds, a.i. will be very important to try to make sense of that data,

but what are the ethics here in europe versus the rest of the world. that's coming later on today back to you in the studio. >> karen, thank you so much. now shifting gears to vietnam, president trump and north korea could become a global economic power if it gives up nuclear weapons in a tweet, trump said the long isolated nation has more potential to grow than any other. the second summit between trump and north korean leader kim jong-un will take place in hanoi later this week. now, our colleague joins us from hanoi. good morning set the scene for us as we head into the second summit between president trump and the north korean leader. >> reporter: julianna, let me pick up on the point that you were just talking about, really certainly a big chatter this time around is north korea interested in taking after the model of the vietnamese economic

reform and diplomacy normalization with the united states because there are a lot of comparisons to be drawn here, although there are some saying that really north korea, especially kim jong-un is very independent minded leader so he may not be interested in the notion of modelling after some other country. certainly a talk point and really that's the idea that a lot of washington officials, including president trump himself have been floating in the leadup to this second summit with north korean leader kim jong-un. so maybe we can draw very educated guess here that that could be part of the package that washington can offer as part of its concession in the meantime, kim jong-un is still very much on his way from north korea to vietnam, not too far off, but just because he decided to take the armored

train. so he's still on his way and is expected to take about 2 1/2 days to get to hanoi for his high profile summit with president trump. in the meantime, really just to circle back to the point, really what can washington offer in its concession for really pressuring north korea to give up its nuclear weapon that's really the main focal point, i think and we keep hearing from president trump there's really no rush and he says he's happy that there is no weapons testing by north korea recent days so maybe that goes to show that there isn't really much of a major breakthrough in presummit negotiations but all this we'll find out later in the week guys >> thank you so much, terry ahead of that summit we're now joined by senior asian pacific analyst. allison, you may have heard some of that. i wonder what you think the concessions the united states

might be willing to offer to north korea or during the conversations between the two leaders? >> yes as your colleague said, i think north korea would strongly be pushing for relaxation of the unilateral and u.n. sanctions against it i think that would be a major concession for the united states but there are other things that the u.s. can do, for example, promising food or financial aid. although we haven't seen a substantial reduction in crop production in north korea, for example, the media has been reporting on that perhaps in anticipation to ask for aid from the united states. the u.s. could also create some exemptions for north korea/south korea projects like connecting their railway so that those would not be in violation of u.n. sanctions. >> one thing you didn't mention is lessening the u.s. troops. >> i think it's something that u.s. president donald trump has talked about he is able through executive order to reduce the troops to a

number of about 22,000 anything beyond that would require the secretary of defense to sign off on that. >> this is not the only event that investors are watching in this region this week. we were also, of course, got china/u.s. trade sharply in focus. how might this summit factor in to u.s./china relations at this point in time? >> i think that's a good question certainly, for example, if donald trump and north korean supreme leader kim jong-un are looking to sign any hostilities or one that works towards peace, that would have a lot more weight if china were there however, china cooperating with the u.s. on any kind of declaration, working towards peace with north korea, would be a concession that china might look to hold back to have as leverage in its trade negotiations with the united states >> is there a possibility because they delayed that march 1st deadline, the white house

has, the chinese could try and conflate these two issues? >> i think they are separate issues, but of course when it comes to diplomacy it is a matter of using what kind of leverage you have to gain those benefits when it comes to trade negotiations between the united states and china the main issue when it comes to china/u.s. relations with north korea is they have different interests and want different things the united states and its maximum pressure campaign around sanctions really requires china to implement those and i don't think that that's something that china really wants to do, especially when it comes to chinese businesses in northeast china, they are mainly affected by trade with north korea and it doesn't make sense for china to strongly implement sanctions, hurting its own businesses just because the u.s. is requesting it to do so. >> one final question for you, allison, before we let you go,

critics said very little has changed since this singapore summit can you look into your crystal ball and tell us what we should expect for any headlines >> this summit like the last will be positive it shows further diplomacy and facilitates further talks. like the singapore summit, i think there will be some surprise announcements by u.s. president donald trump however, i don't think there will be a specific road map working towards denuclearization of the korean peninsula. i think those kind of specifics are more likely to come out a working level after the talks. >> allison evans, senior asian pacific analyst, thanks for your time. coming up on the show, the 2019 had a number of surprises more from l.a. next. your digestive system has billions of bacteria, but life can throw them off balance.

re-align yourself, with align probiotic. and try align gummies, with prebiotics and probiotics to help support digestive health

guys go through a lot to deal with shave irritation. so, we built the new gillette skinguard with a specialized guard designed to reduce it. because we believe all men deserve a razor just for them. the best a man can get. gillette.

♪ well, this year's oscars have produced some surprise wins with green book taking best picture and olivia coleman wins

the best actress for the favorite jennifer joins us from los angeles with more. jennifer, thank you so much for staying up for this. a lot of us in london weren't able to stay up and watch the show please give us the highlights. what were some of the key themes from this year's oscars. >> oh, julianna, it was so much fun. it was such a fun show there was no host, so you might think that that would move things along quickly, burr it still went over that three-hour time limit but there was so much to pack in green book, as you said, the road trip drama took top honors best picture, also best original screen play and best supporting actor for ali, all well deserved it was a movie well received by most of the people watching it not one of those surprise artsy oscar movies that you don't expect to win. so, it was a good win for them best actor went to bohemian

rhapsody's rami malek. he won the golden globe as well. he's been making the rounds during oscar season and was the favorite so no surprise there, but when olivia coleman's name was called, for the favorite, her face and her reaction is what everybody is talking about today. her speech was hilarious she was so unprepared. and it was truly a moment that was so happy for her and she was so brilliant in that film, but at the same time, seven-time nominee glenn close they say close but no cigar for her once again. she was very gracious and as was lady gaga in her clapping for her. gaga performing her song from a star is born with bradley cooper and winning for the song after that a lot of fun at the oscars and lady gaga was wearing the tiffany yellow diamond that has not been worn by anyone since

audrey hepburn back in 1961. it was a night to remember they were breaking out the good stuff. willem, julianna >> thank you so much well n terms of other winners, manchester city won the first of what could be a historic trophy quadruple this season they defeated chelsea side to claim the english league cup. adam reed has more details on the game. >> very strange, something unparallel in a football pitch i don't think i've ever seen manchester city, yes, they have the first leg of the quadruple under their belts already, but the turmoil at chelsea continues. i sat here with you on friday andsaid that they've been hit with a one-year transfer ban and now it seems like the players that are there don't really respect the manager. it got to almost extra time at the end of extra time the manager wanted to make a substitution and bring on willy who has a great record in

penalty shootouts at wembley, but the world's most expensive goalkeeper refused to come off and looked like he might pull off heroics. the game is due to continue if a player refuses to come off, but then david louis, he hit the post and that left rahim sterling having an incredible season to score the winning penalty for manchester city. so delight for city. they were predicted to win they did win but chelsea where the problems continue because what does the manager do from here the rumors were he lost the dressing room. the next game does capa just demand to play sarri sat down afterwards and despite what we all saw in front of us, he was angry, here is what he had to say. >> it was only big misunderstanding

cappa was right but in the wrong way, i think in the wrong way as. >> perhaps the way he conducted himself. but mentally he was right. he was able to go to the penalty. but i realize everything at the end of the match. >> you seemed pretty angry >> i was real angry. >> the club saying that it was just a misunderstanding, but didn't really look like a misunderstanding given how angry they all were. but the bigger picture here is because of liverpool's draw with manchester united yesterday, they leave manchester city by just a single point in the premier league both sides have played the same amount of games. city are on for this unprecedented trouble. we're coming to the end of february and these are the odds of city doing something historic just number at the bottom draw your attention to, 7-1 to win

three more trophies. going well in the f.a. cup going very well in the champions league they have a lead there after the first leg. the premier league is up for grabs. liverpool might have something to say about that, though. >> thanks so much for joining us appreciate that this morning. let's look at u.s. futures and see how things are shaping up there after an extremely strong session in asia now a strong session shaping up here in europe the s&p looking at an eight points higher open the dow looking at nearly 100-point jump and nasdaq looking at 27 points higher. well, that's it for today's show i'm julianna tatelbaum. >> i'm willem marx "worldwide exchange" is coming up in just a few minutes time. with tough food, your dentures may slip and fall. fixodent ultra-max hold gives you the strongest hold ever to lock your dentures. so now you can eat tough food without worry. fixodent and forget it.

the communal feast. potluck. this parade of dishes will soon be yours to scrub. and they're not even... yours. new and improved dawn ultra can finish off this buffet.

each drop now has even more grease-cleaning power. so you can scrub 50% less, and get done faster. next month, their place! a drop of dawn and grease is gone.

i can customize each line for each family member? yup. and since it comes with your internet, you can switch wireless carriers and save hundreds of dollars a year. are you pullin' my leg? nope. you sure you're not pullin' my leg? i think it's your dog. oh it's him. good call. get the data options you need and still save hundreds of dollars. do you guys sell, other dogs? now that's simple, easy, awesome. customize each line by paying for data by the gig or get unlimited. get $250 back when you pre-order a new samsung galaxy. click, call, or visit a store today.

♪ it is 5:00 a.m. here at cnbc, 6:00 p.m. in beijing and your week begins with breaking trade news and likely good news for your money president trump pushing back this week's trade deadline with china and the markets love the news chinese stocks are rallying with shanghai composite soaring also happening now, major developing story out of venezuela. violence beginning to escalate we'll bring you the latest. it's a merger monday with more than $4 billion pharma deal to tell you about. we'll tell you whom is buying