baker hughes which has not panned out well to them.r to get back to a situation where the dividend is in jeopardy, they need to cut a lot of things. maria: this is not a small thing. this company has only cut its dividend 3 times in its 125-year history, mike. mike: huge deal and the fact that you all thought of ge that was a company that was acquirer and the fact that they're selling companies, a lot of managers waking up to the news morning licking their chops to go in and see how they are going to buy distressed general electric assets. this is a big part of it, what they sell, what price they can get for it and a smaller ge, i don't know if that's very appealing or not. maria: appealing time to buy the stock, the stock is trading up. let me say, lee, that this move is expected, was expected because of the cash flow deterioration this year. it's expected to save 4 billion cash a year by cutting this way. >> he predicted this, but at the same time, the investor day is going to be critical because the message this morning saying it's

aviation, power, health care ge is planning to shed its majority stake in oil and gas operator baker hughesmember that big bet that -- >> shedding? >> shedding. >> shedding. >> like skin. >> john flannery expected to announce the changes at a meeting. >> they're getting out of it >> he got into it, now he's getting out of it. you build it up and you take it down we're going to get more details with flannery tomorrow when he sits down exclusively with cnbc that will happen at 9:30 tomorrow >> they were putting up for sale. >> aircraft. >> basically every business but those three businesses >> the joke, done it too many times? >> yeah. >> the aircraft -- it's tough. >> all right >> the chaser. >> costs a lot more. >> like double. >> maybe there's economies of scale. >> costs not quite twice as much. >> i don't know. >> no, actually, i think -- >> it costs exactly twice as much it possibly costs more than twice as much. >> i don't know. >> qe please >> uber's board members have reached a deal to allow softbank investment to $10 billion. they haven't released the details. they could take 14% in

a stand alone entity in baker hughes ge.his is a good company we've just appointed a committee of our board, new committee of our board that finance and capital allocation committee and the first thing i've tasked them to work on is evaluating our exit options on baker hughes i'll talk more about that later. i know there's a lot of curiosity about our portfolio moves, i get questions all the time, what about this and that i would just say it's a deliberate process it's in a context of creating shareholder value and we'll do it and move it and do it in a form that makes sense for our owners and share that with you as we go forward so let me give you background on the process that we've been through. >> that is john flannery of course chairman and ceo of ge, addressing the investor community on this important day for the company where he is resetting and after a four-month review, sort of presenting his vision of what this company can be but not what it is right now as you've been pointing out, of course we have a 50% cut in t

keeping the baker hughes deal on track. so looking to back out of that just a general slim down and as you say, dividends will be a big question going through that meeting. let's get back to the markets. looking overseas, starting in asia overnight a little bit of weakness most notably in the nikkei. japan down 1.3%. it seems as if it's mostly continued pull back. the nikkei, remember, was up more than 20% in two months. it was on a tremendous run vertical seems like it's backing off there. more broadly in asia, it's a mixed picture where you see the hang seng up 2%. shanghai up almost 1%. kospi down half a percent. over in europe take a look there. i think it was also generally mixed market yes, you do see that mostly to the down side. german dax down slightly just about 1/7 of 1% the outlier is the ftse, but that's really getting benefit of a weaker british pound this morning. that's really the reason for the standout move in the u.k. >> let's look at the broader markets. oil, of course, on a big move upward this morning

bakeries use as well off today. -- baker hughes as well off today. retailer offa about 5.5%, missing on the third-quarter comparable sales and full-year earnings per share guidance dragging down ross. a look at retail to see how this plays out as we head into black friday. you.: thank we are giving to the end of earnings season with the s&p up 1% during these reports. shery: the big news is u.s. attorney general jeff sessions facing questions the for the house judiciary committee. he is getting grilled on the trunk campaign -- donald trump's campaigns links to russia and questions about his considering a partial -- vessel prosecutor to investigate dealings ability hillary clinton. appointing a prosecutor to investigate dealings of bill and hillary clinton. he now says he recalls a meeting with george papadopoulos. >> jeff sessions with a fiery hearing with the house judiciary committee when several on both sides of the aisle are putting him in the middle of what has been an ongoing investigation into russia. democrats criticizing him and trying to de

>> let me go back to the beginning of the baker hughes transacti transaction, we had an upstream oilquipment business that we merged with their service business, created a much broader platform, stronger asset but part of the original thought process of that transaction, it does create optionalty for us going forward. this is not new news in that sense. it was embedded in the original transaction, first point second point, we closed in july of 2017, there's a two-year essentially window where the directors of the baker hues directors have a consent discussion to have if we want to do something different with our holdings that's the technical thing the third, we're exploring, i said yesterday we've established a new committee on our board finance and capital allocation committee and the first thing i've xtd thasked them to work o, ee val wait what the options and forms of exit might be for baker hughes asset and we'll come back when we determine that. >> you were involved in the purchase of that asset, any regrets there? do you feel that was well purchased at the time given the headwi

they could get out of oil and gas, they own a majority stake in baker hughes.would be relatively straightforward to exit that, within there is health care which has also been speculated about. shery: more clarity on monday, rick, thank you for joining us. bloomberg, "real yield," posted by jonathan ferro. vonnie: you can get all of our interviews on bloomberg tv , even what previous interviews and as always, you can communicate via asking against the question. ♪ is this a phone? or a little internet machine? it makes you wonder: shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. so all you pay for is data. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. ♪ jonathan: from new york city, i have jonathan ferro with 30 minutes dedicated to fixed income. this is "bloomberg real yield." ♪ coming up, republicans take another step

even the stake in baker hughes could be up for grabs, but it will take time. the reason flannery says 2018 will be a reset year, with you that will be, quote, extremely hard with major changes and detailed execution. after that, though, he says profits should grow, and with hopefully, finally the stock. for "nightly business report, b >>> well, ivan fineseth joins us to talk more about the turnaround plan and the road ahead for the company. he's a partner and chief financial officer at tigress financial partners. good to have you in the studio tonight. >> thank you. >> is this the bottom? >> i think this marks the bottom. the sell jot and the different cut i think is the reaction, the final sell-off where all the income funds, i think it needed a bold move. >> is it a parabolic move back or bouncing along the bottom? >> well, i think that at current levels, it could represent a long-term opportunity. i don't think it goes right up, but what the ceo spoke about today, flannery spoke about, as being focused, he spoke about cost cutting, and spoke about a company

lighting baker hughes these are some of the companies that have been tossed around in speculation. lastly, in light of all of this, what's the new profit guidance ge still technically has a $2 per share target for 2018. it's outdated. analysts have disregarded that for months now the current consensus on the street, $1.14 per share for 2018 so there is a lot on top from flannery as well as new cfo jamie mill and her the ceos of aviation and power all of this will start at 9:00 a.m. on eastern on monday. if you take a look at shares of ge, they did close this week higher, they rallied today they're still down about 20% since flannery announced this event back in late july. that was right before he took the helm as ceo, melissa >> morgan, thank you morgan brennan in the newsroom dan is making a call on ge into the event, why don't you head over to the plasma, please >> i will. morgan brennan did a nice job describing what has been going on with ge >> you okay, guy >> i'm all right >> massively underperformed, there's obviously been management changes, obviously been a lot of uncertai

will comprise flannery pledged $20 billion in divestiture transportation, health care, lighting, baker hughes, these are some of the companies that have been tossed around in speculation especially since ge does have a hefty debt load to counter. lastly, in light of all of this, what's the new profit guidance ge still technically has a $2 per share target for 2018. it's outdated. analysts have disregarded that for months now the current consensus on the street, $1.14 per share for 2018 there is a lot on tap from flannery as well as the new cfo, jamie miller and the ceos of aviation and power all of this is going to start at 9:00 a.m. eastern on monday. meantime, if you take a look at shares of ge they did close this week higher. they rallied today they are still down about 20% since flannery announced this event back in late july. that was right before he took the helm as ceo. melissa? >> morgan, thank you morgan brennan in the newsroom >>> dan is actually making a call on ge into the event. why don't you head over to the plasma. >> i will head over to the plasma here's the thing morgan brenn

they may get rid of baker hughes and they will get rid of locomotive.ication, or not enough. -- is a it full scale full-scale breakout possible down the line or off the guards now that yesterday is out of the way? >> anything is possible but i put a low probability on that. none of the businesses are related. they are separate, health care, power, aviation have nothing -- there are systems they can share, digital capabilities they can share but there is nothing that could not stop them from being separated. i just think that would be a ways away. mark: how big a deal where the expenses? some were underwhelmed i do plan to reduce expenses. >> they announced another $1 billion in cost cuts, largely in power. that is $130 billion in sales, not enough. some of it will be in corporate and people and plants. again, not enough. julie: is there anything that the executives could have said today, even given this plan to reassure investors? >> clearly, if we find that this is not material enough we are ready to take bigger action. this is phase one. i called it p

they are talking about divesting $20 billion in assets and perhaps the baker hughes ge company coulde sold. the ceo is considering that possibility. we will be keeping everybody updated. a bit of a bearish reaction for the shares of ge suggesting more selling could be ahead. it does seem that we could be having a bit of a repricing of risk. .aking a look at bitcoin over the last week signaling that perhaps investors are moving toward the true risky end of the risk continuum. the yen is rallying against the dollar. maybe we will in fact see stocks trade off a bit more. julie: we have broadcom to fall comes rejection of its offer saying it remains fully committed to the acquisition. it reiterates the president has offered, $70 a share in cash and stocks and also talks about the company this transaction could create your it in a statement from the president and ceo of radcom, we continue to believe our proposal represents the most attractive value enhancing alternative available to qualcomm stockholders. many expressed a desire that qualcomm meet with us to discuss the proposal. let's c

what investors wanted to hear was baker hughes will be gone, and they had a clear and concise way tove the power business. the fact is the power business is struggling, will continue to struggle in 2018, maybe 2019. that is the biggest head when they have from aim operating standpoint, getting the business back in shape. unfortunately, the cyclicality of the business combined with pricing pressure leads to earnings dragging, being a problem that they will have to take care of three years down the road. julie: pushing off the inevitable. we talked about the effect it's having on the stock, already underperforming, pretty dramatically. what is going on with the credit? >> it has been interesting. , levelsarter earnings around united technology and eaten, which are about three notches below ge. bondholders were prepared for some of the ugly reporting that we saw today. you are seeing the long bond trade up a little bit. from a credit perspective, it these ratings, aa minus, need to be reevaluated. honeywell is a great comparison to them, which will generate more cash flow, lower leverag

focused on three core businesses including transportation, and lighting, and ge's majority stake in baker hughes. new methodology will also now be used for quarterly reports a lot on top, but at they're now down here's why ge matters to you at home. chass are you probably own it in some force or fashion. i go to a man who has already bought tim? >> we have priced by some of the core businesses. my view is the power assets are priced at arguably historical lows on an asset basis, relative to themselves, relative to their peer groups. i think we need to see something. if anybody expected anything different, they bought the wrong stock. i because it three weeks ago, i thought that the dividend cut was largely priced in. what they did today largely priced in. ge, by the way is 4.7 different yield. >> i think you willy we god to -- i thought today was going to be one of those instead of the stock closing on the lows, i thought it was one of the cases where intraday was doing what i thought it would do. the downgraded eps you that was in line with expectations. for all of 2017, they've been guiding do

which is typically, though sometimes there are cases where that's not the case halliburton and baker-hughes among them, but there's a lot fewer states that would have fast-breaked this one. but they continue to make the basic arguments that directv's nationwide footprint would pose a competitive threat to others i guess it goes to this idea somehow that turner content is must-have. now, that's not clear to me. maybe hbo content, must have, and somehow at&t's incentive would be to prevent people from seeing it, which again is kind of a strange argument tore making, but that seems to be one of the central arguments that the government is going to make. in a way it's must have, and some way they will discriminate against for content they that -- and by the way are contractually under deals to distribute. >> so this deal has been blowing apart for maybe two weeks or so. do you have any sense of any back-door discussions or goekz or any attempt at trying to settle here? >> i think this was an unwillingness on the part of at&t or to do anything with cronn. but there was potential some attempt to

so hasn't baker hughes that hasn't been discussed much. ge has said they're going to exit that investment if you want to get an idea who potentially stays on the board, they've dug through the insider activity for this stock. over the summer as we were getting this management shift a number of board directors actually bought into ge. some names that haven't purchased in the past or hadn't purchased in a couple of years jack brennan, which you just mentioned who purchased but james tisch, he bought 100,000 shares back in august. james rohr, james beaty, names of some board members all in on ge. >> all committed and they'll keep their seats because of that >> i think it's a strong possibility. they're also relatively new compared to some of the folks like andrea young. >> i'll bet they waited to buy until now. would have been be a better price. >>> moving on. some other stocks to watch. >> other stocks to watch, we have alibaba investing $2.9 billion in china's top grocer, sun art retail group it gives them a 36% steak. making them the secon

even a stake in baker hughes could be up for grabs. it will all take time. 2018 will be a reset year, one that will be extremely hard with major changes and detailed execution. after that, he says profit should grow and with i hopefully, financially, the stock. for cnbc business news, i'm morgan brennan in new york city. >>> maybe at some point the dividend will grow again we'll see. on a programming note, ge chairman and ceo john fla flanny will speak at 3:00 p.m >>> tesco has been given the go-ahead to buy booker the uk's largest retailer said it expects the 3.7 billion pound deal to complete early next year sticking with m&a news, qualcomm rejected broadcom's 1$103 billin takeover bid the chipmaker said the offer undervalued the company and would face too many regulatory obstacles. broadcom said they will still talk to the board about a tie-up. >>> and altice shares are falling to the lowest level since 2014 following two downgrades morgan stanley cutting the price target to 13.50 from 20.50 saying casload would be hurt by high debt

i spoke to the ceo there, and i spoke to lorenzo simenelli, ceo of baker hughes, a ge company. i asked at what point does the situation turn where you may consider cutting your loss there's and stopping operations? take a listen to what they had to say >> venezuela is truly an enigma for us in the service industry most of the service industry has been there for 75, 80 years. you know, it's got the largest reserve base out there in the world. to ignore t walkit, walk away fm that as a service industry, we do so at our peril i think all the context of the discussion earlier, if we're having a looming supply problem that based on underinvestment, venezuela is a significant part of the solution to the ultimate problem. the unfortunate thing in this low-price environment, you know, we have got to get paid. cash flow and returns are important to us. to continue to work and do things where we don't get paid, get the returns, that's very, very challenging i think also, of course, the recent sanctions that have been put on the country are making it very difficult we're kind of the guys

including as of this morning transportation, lighting, industrial solutions also plans to exit baker hughesgital, something all executives are talking about right now, but there are going to be changes. other big developments, changes to the composition to make it more performance oriented, also more equity based. the board is shrinking from 12 to 18, and as new cfo jamie miller is discussing with her audience upstairs right now, new changes to how the company reports its quarterly results. they are looking to make that more streamlined guys, back over to you >> thank you, morgan brennan let's bring in bob pisani for more on ge's shake up. this is a stock, looking for the bottom here, but seems to be so many different things that are changing, that they are discovering. it's unclear how this is going to work out. >> this little point here, $6 billion in pension obligations that are not covered by that earnings guidance, that's a problem. somehow that's got to be included, unless they are making no payments this year at all, that's an interesting piece of information. i think the broader que

lighting also potentially over the next couple of years, ge's majority stake in oil field services, baker hughes, they might be exiting that lastly a streamlining of company culture and management compensation, going to be much more tied to performance the board is shrinking to 12 seats from 18. the company, the new cfo jamie miller also just saying that the boston based headquarters, the workforce there is going to shrink by about 25% and lastly for those of us that report ge's earnings, their earnings methodology will change for quarterly reports as well, moving forward so again, shares of ge are lower on this but at least we have some more clarity on the new ceo's strategy moving forward. >> morgan thanks so much, morgan brennan live in new york city. >>> here is how jim cramer summed up whether all of this would be enough and there's a lot. here's jim >> here it is, warts and all the problem is, there's a lot of warts. i mean, like a huge number of warts, like get me to a dermatologist now or maybe like a plastic surgeon, maybe something more serious >> here's what else cramer said, there's

was pointing out earlier and tweeted it out yesterday ge is worth performing stock, the worst is baker hughesammy. >> meantime, general motors rolling out its autonomous vehicle strategy phil lebeau. >> analysts are getting a chance to gone go on the ride of gm's autonomous plan. they're going to start with a self driving by 2019, they may have sooner than that. thar targeting a bun maurban market say the business is potentially bigger than core business. their is mary barra talking about the business plan >> right now the focus is keeping it all together and moving it as fast as possible and winning and having the ailment to put the product on the road and is what we are going to focus on and we'll evaluate >> they say they're going to do what's best for investors but investors are not impressed from this plan. the stock moves a immediate immediately lower and has not rer recov recovered. we want to show you waymo. right now we are in a dog race or horse race between waymo or general motors to launch a self driving ride sharing service, waymo will start in the phoenix area and gm will start

that's according to baker hughes if we get another increase this week, since it is more attractive toump when oil prices are elevated, it doesn't appear that's the case or that u.s. drillers are being too aggressive here for a fear of depressing prices. back to you. >> thank you, jackie deangelis >>> tesla unveils a design of its semitruck. walmart is signing up to buy them can this drive the stock higher? "power lunch" is come right back the classes, the friends, the independence. and since we planned for it, that student debt is the one experience, i'm glad she'll miss when you have the right financial advisor, life can be brilliant. ameriprise every day, on every street, in every town, across america. small businesses show their love to you. with some friendly advice, a genuine smile and a warm welcome they make your town... well, your town. that's why american express is proud to be the founding partner of small business saturday. a day where you get to return that love, because shopping small makes a big difference. so, on november 25th get up, get out, and shop small. >>> elon m

staples is going to injure companies here that buy their paper on the -- from these companies, that baker hughesalliburton, going to -- >> you know. >> i don't know. >> they sign on to whatever the complaint is. >> are they afraid jeff zucker will target them >> that is the point that this would seem to be a somewhat unorthodox approach were they to move to block the deal because it's a vertical integration that typically does not warrantor receive these kinds of complaints or structural remedies which they have asked for. >> you pick a particular word there and the word unorthodox, which is really not per juror tif as well. i would say wrong headed antitrust was one of the subjects i actually attended -- >> we'll see, if they get to it, they'll take a look as they said for any connection between the white house and department of justice and any correspondence that's taken place we don't know whether politics was a part of this or to what extent it's been a part of this. >> the president not shying away from criticizing cnn overnight. >> again >> while in the philippines, i was forszced to watch

. >> thank you >>> weekly recounts just out jackie deangelis is at the commodity desk >> baker hughes reporting that oil rigs declined this week, down to 729. drillers cutting rigs for the fourth week in five. this is also the biggest weekly drop since may of 2016 putting this in context, the overall recount is still higher by 279 than it was this time last year. but with oil trading at 55, this could be moving the other way, and it's not, guys >> all right jackie, thank you very much. >>> well f you live in a blue state but vote republican, the tax bill probably ticks you off. your party likely going to raise your taxes, if not your cost of living coming up, we're going to speak with a republican congresswoman from new york state. yes, they exist. and ask her whether she can support it plus, squad goals for the president's big trip to asia last year, he said he was going to dig a hole to china. at&t is working with farmers to improve irrigation techniques. remote moisture sensors use a reliable network to tell them when and where to water. so that farmers like ray can compete in big

. >> good afternoon to you well baker hughes releasing rig count numbers ahead of the thanksgiving holidayhe u.s. added nine oil rigs for the last week. that's up 273 from a year ago, brings the total to 747. now not surprising to see in addition like this higher oil prices make it more attractive to pump. interesting we haven't seen this in the last few weeks, perhaps maybe the tide is turning. meantime crude is rallying the keystone pipeline leak is causing a an 85% reduction in shipment on the pipe through the end of the month people are worried about that and don't want to be short ahead of the opec meeting next week or ahead of the holiday weekend for that matter either, guys see crowd oil trading under 58, but we did test over 58 today. usually we test and hold that level. >> we will be watching for that. thank you. >>> coming up retail's biggest weekend it's been a rough year for retailers. so this holiday season is it going to turn around plus the ceo of kohl's joining us his stores are opening at 5:00 p.m. tomorrow. we're getting you ready for black friday when "power lunch" retur

. >> i caught off baker hughes halliburton, technology.'s nothing they can do to remedy because there's no real violation. >> the question is if you allege a structural defect and they need to sell something -- >> what are they going to sell >> by the way, the justice department has been a little apolitical nixon's wasn't and jimmy hoffa, jfk, when they set up to get hoffa, otherwise, justice is supposed to be like guys, hey, listen -- let me figure this out. >> the president -- >> there's like a body of law, david. >> the president most recently said in a radio interview, i'm not supposed to be involved in the justice department and not supposed to be involved with the fbi and doing the kinds of things i would love to be doing and i'm very frustrated by it. well, i'd like to know what the great american thinks about this. >> i think he thinks -- i don't know what he thinks. >> i think he's probably staggered. it's hard when you have -- there's no -- what are they going to do? what are they going to divest? the first few games of march mad

like the warden in shawshank, there's a not less reason to block time warner how come this isn't baker hughesre's a feeling that given the potential synergies there, jim, there was ever a time to get a deal done where you put together four and three, this is it my sense is the antitrust arguments they'll be making have to do with 5g, and wireless providers moving into a better competitive position versus broadband provided by cable companies over the next few years as being a viable competitive option i think the technology is yet to prove itself but that's one argument they'll make. you're right, time warner, wall street journal reporting may have been been overblown department of justice always has a settlement talk and they are preparing for litigation but doesn't mean they'll go down the litigation path. there are so few that believe they have a true case to be made as to why at&t, time warner would be anti-competitive ats least on the typical findings and law that doj relies on >> dow did open at the record high, we're settling back down ten. let's get to rick santelli this morning. >> y

even ge's majority stake in oil field services, giant baker hughes could be up for grabs in the next couple of year ps. second, cost cutting, going to continue including a cutting -- even though there's no retreat on the idea of digital. that's been a big push at ge for the last couple years. lastly, changes to the company's culture and to management and governance that's including performance and it's going to be more tied to -- excuse me, compensation more tied to performance. also more equity-based also the board is rishrinking dn from 12 to 18. three seats will be up for grans next year. and on the earnings front, they are are chanchanging methodologw earnings will be reported on a quarterly basis as well. lot of big headlines lot of changes at this company shares are still down with all of this news today guys, back over to you >> and 40% for the year, morgan, thank you. they have a lot of work to do. is this the end of the bad news for ge let's ask jim from cfra research and christopher glen from oppenheimer & co welcome to you both. jim, what do you think about the share price

they had to spin out the baker hughes business. what is it going to be?company. you cannot say that power and aerospace and health care have synergy. thery will be a market leader in their businesses and markets are good because they are a service machine, unlike most other industrials, they have over half their sales in service. a market leader in three businesses. alix: good stuff. karen ubelhart of bloomberg intelligence and michael purves of weeden & co is still with us. click on our charts and graphics and interact with us directly. visit tv on your terminal. you can check out the charts. this is bloomberg. ♪ david: we are just minutes away from the house judiciary committee hearing testimony from attorney general sessions. that is the committee hearing room right there. the attorney general is walking in at any minute. the hearing will be on what knew -- asessions trump campaign advisor turned state evidence. he told the attorney general he was dealing with the russians. to explain what's happening and what could be at stake, we welcome steven

everything >> baker hughes is a real challenged company the timing of the cycle is fine.th the timing of the cycle. i don't know why you're doubling down on those assets >> seemed like a lot of stuff going in and out, over and around, and all you're left with is a company that needs to be restructured more than ever right now. >> and don't forget ge capital the world's largest nonbank -- >> which now is probably a good thing to be in now with the financials coming back >> debatably going back to my point. debatably you have out of those businesses at the wrong time just as interest rates start to uplift, and the bank stocks got a bit. the age of the conglomerate is over shareholders can diversify more effectively. this is still going to be $125 billion company. >> what's is look like in three years? probably not a lot different ge capital is going to be much smaller. the disclosure will be better. poub could be uplifting. ge looks like an l to me i'm kind of comfortable with a share price here >> you mean l in terms of the stock price, or l -- >> in ermz it of both fundam