of broadcom.y did not think that was the case. qualcomm will go their own way and try to right their own business. qualcomm shares traded far below the broadcom offer. we -- this was not going to happen. that broadcom will say the ceo gets what he wants. does he have any other options and what are they? in terms of broadcom doing other acquisitions, there is no company quite like broadcom. the only one like it is intel. guppies is like swallowing a whale. asset qualcomm has an there is no other company like it. emily: cory johnson, you are sticking with me. a banner day for twitter as they post their first real profit. shares of sword the most since they reported their first revenue growth in four quarters. a turnaround trend for twitter, which recently lost its coo and has been fighting a scorch of the fake news. scourge of fake news. what are the highlights? >> twitter posted solid financial reports but investors might be overreacting to what is mild progress. we did see revenue pickup for the f

we haven't heard from broadcom yet.id have a number of people this morning characterizing the meetings in the less than constructive way let's just leave it at that. >> all right keep us updated. i know you will. david, thank you very much >>> more breaking news on trade policy right now we have that in washington >> mike, we brought you the first portion of the recommendations that the commerce department made to the white house on aluminum earlier today. we want to bring you recommendations on steel that we obtained from a second source familiar with these proposals. according to this source, the commerce department recommended to president trump a slate of options including a tariff on all steel imports, the second choice is a tariff of 53% from 12 countries including china brazil, costa rica, korea, russia, south africa, tie land, turkey and vietnam the third option is a quota of 63% on 2017 exports to the u.s. on each of those 12 countries. so those quotas as i'm told by this source would only apply to the imports

, a guest of jim and myself, the ceo of broadcom.ing to be meeting with qualcomm on wednesday both companies go in front of shareholder services, iss, a proxy firm to play a crucial role in these kind of situations when a company is trying to take over the entire board of directors, or i should say trying to place directors on that board to replace the existing directors jim, thoughts on this performance this morning things he said to us in terms of trying to answer some of those key questions that come to mind for some of the shareholders >> as someone who follows stocks closely and stocks performance, he did raise a point which is, why not go with me and as someone who is head coach oriented, say i'm belichick, why don't you go with belichick. why would you go with the cleveland rams when you have a chance to go with me and obviously, qualcomm is never making the playoffs. and i can make the playoffs. and there is something to that head coach mentality that i like. >> and that was a key point he raised a number of times but there a

if the broadcom deal -- if broadcom walks away and qualcomm cannot manage to close -- this thing wasthe low-50's not that long ago. we're probably headed there. julia: do not ask for a dealbreaker in order to make a deal. stacy, great to chat with you. course, edn, and of senior, bloomberg's deals report. we have been continue to monitor ben bernanke and janet yellen's conversation at the brookings institution washington. she said the fiscal situation concerns are. you can watch the event live on the bloomberg at tv . this is bloomberg. ♪ julia: this is bloomberg markets. i am julia chatterley. scarlet: and i am scarlet fu. time for the bloomberg business ash. the world's biggest sovereign wealth fund will remain committed to investing in the u.k. despite brexit talks. it is the norwegian's sovereign wealth fund -- largest sovereign wealth fund after the u.s. is in the u.k.. the fund delivered its best return on record last year. cryptocurrency companies hoping to get the jump on stricter rules are hiring more former regulators and government authorities. they are hoping the new

it is certainly not something they want to see they have continue to say throughout broadcom that theyould be fine with the 110 deal wu nothing above that. on late friday, we add institutional shareholder and services that certainly, its recommendations are taken by index funds, we think you should select the -- it does appear that qualcomm is in a strong position going into the vote if broadcom does not increase its offeror do more to give them a better field in antitrust. >> it will be interesting to see how semiconductors -- and broadcom could be on the hunt for something else if it falls through. >> right >> and i am told that we have those comments from mr. hock tan last week if what did occur this morning happened >> nxpi will not solve qualcomm's problem it is the broken business model that is. and if qualcomm raises the price on nxpi, we made it clear, it is a clear value from qualcomm's shareholders >> so a walk away. >> we'll preserve all of our options. >> yeah, i got it right. preserve all our options this marks the end for the battle of qualcomm to afire nxp. they can clos

shares of nxp and broadcom rose in trading today while shares of qualcomm were lower. by the way, a shareholder advisory firm isnd recomg that qualcomm shareholders vote for all six of the boaes candid proposed by broadcom. glass lewis says that qualcomm's failure to achieve profitable growth and recent disputes with regulators throw doubt on their business strategy. so it is essentially siding witi broadcom in case. >>> investors were reminded of the massiveerhanges uy in the health care and consumer sectors whendrivately h supermarket chain albertson made a bid touy the rest of the drugstore chain rite aid that is not already being sold to wl greens. it would create a supermarket and drugstore giant and allow ialbertsons to go privaten the fuarre. it sent higher today. better that comes is in new york with more on this unlikely get together. >> reporter: it is the latest odd bed fellows merger. grocery chainate albertsons agreed to obtain re aid. executives say putting together grocery and pharmacy clinics could provide custome with a different kind of health care ex

it rejected a $121 billion offer from broadcom.ng us is our guest who covers all things qualcomm. walk us through what happened over the weekend. >> the weekend did not start off well for qualcomm. this morning, the two investment advisory services that work for the big investors till then you should look at this this way or vote this way kind of came out a lot more strongly against qualcomm and in favor of broadcom than people have been expecting. emily: house so -- how so? >> they did not give broadcom the full flight, but they said the managing is much better. glass lewis went even further. emily: what does this mean for annenxp? it has been going on for more than a year. ian: 14 months. this has been the regular tory approval thing, but what qualcomm did was go out and say, ok, we are raising our bid for this. this is money to bring in all of the investors like elliott, all of those hedge funds trying to hold the deal up and ask for more money. appears to have gotten over that hurdle now. emily: how did qualcomm's effort to buy

the increase is all in broadc broadcom's stocks. they go from 60 cash to 10 stocks to $22 worth of stock any way you measure in terms of at least premiums over the unaffected stock price and of the percentage increase that we are seeing today it is big. will it be enough to actually get qualcomm shareholders to pressure qualcomm management to sit down the table that remains unanswered and unlikely in fact, if you look, you will see a filing even out this morning indicates on february 2nd, and i am told in days since then and there is not many they have tried to engage, that's the broadcom side with qualcomm advisers on their new revised proposal and have been met with potentially silence broadcom's stock is up and qualcomm's stock is down hoch tan is saying i am walking away because my stock prices have been crushed and they sort of see it in that light as an easy way to put all these conditions in a deal that essentially will lead him to not have to do it and there ever be able to say well, we tried don't be fooled, they're going t

by going the full board to six, broadcom, if they were to get six. it takes is one director saying wait a minute, i don't think the 82 works >> we are talking about this so much because it is the largest take over in the history >> it is so front and center everyone has to know this thing is going on right now. this is monumental >> a final point for broadcom, if we are going to pad on $50 billion, we are not going to destroy value. >> it is amazing >> i didn't get any of it. lets get to carl now at the winter olympics in south korea, pyeongchang. >> what a day, a bit of a rough day of the u.s. as two of our hopefu hopefuls missed the solum. lindsey jacobelis. she was asked earlier today about making it to four olympics but being forwarded each time by some tough brakes. >> i consider myself having a strong day making it to finals and olympics is nothing to look down upon. i was pretty happy that i have done that since i have not done that since 2006. it is little strives and i am in the mix with these girls and these girls are looking up to me and n

broadcom lowered its offer for qualcomm, at least in price.y would say it's an adjustment and raised its offer. the offer goes to 7 $79 a share overall. 57 in cash 22 in broadcom stock but they say, hey, you just spent $4.10 a share raising your bid for nxp to 127.50. so in fact we're only lowering our bid by 3 bucks a share, hence really raising our bid by 1.10 follow what does it all mean? they're willing to pay less for share for call cqualcomm qualcomm signing that deal over the weekend with nxp they lowered the tender threshold. iss did come out and said it elected four of broadcom's board of directors they had begun negotiations prior to getting the iss report on friday with the likes of elliott. it probably makes it less likely overall that broadcom will succeed here but they're trying to give them a slap and say you guys were bad actors in a sense. one quote to me, we can't pay for their mistakes >> basic question, why do they want it so bad >> broadcom. >> yeah. >> that's a good question. some would say the key is continuing to acquir

broadcom's revised $79 a share offer saying th. a potential merger between qualcomm and broadcom would represt theargest technology acquisition to late. broadcom off fractionally. qualcomm down neay a percent. after the bell, roku issued disappointing revenue guidance. that offset the profits in the fourth quarter. shares plunged in the after-hours market but finished the regular day down a tick. >>> amazon issued a linect of health ps challenging retail chans. they are produced by a private label manufacturer, peregot. and include itemsrom ibuprofen to hair regrowth treatment. it could start a price war and pressure drugstores. that is why you see drutores lower today. today amazon shares hit $1500. they clod justelow that willful. >>> there is a growing conversation now over big tech's minance and whether titans have gotten just too big n. a "new york times" magazine article called the case against search critics say the giant is schedule offing competition before it begins. so should the government step in? the author is one of

qualcomm officially rejects broadcom's buy offer they're going to meet. jim and i will have the details. and winter olympics. carl is going to sit down the comcast ceo, brian roberts later this hour. >> wall street has never been happy it is a friday bracing of what could be a volatile session the dow and s&p 500 are in correction territory that means they reached down 10% from today's highs in late january when we saw those highs. since then, the survive lost more than 2.6 trillion in market cap. nasdaq just shy of a correction. jim, you know you sat here in the mornings with me and we see what's a relatively open last couple of days so up or down or very little down and by 10:00 we have seen to be and by the time you leave the show it is going up. you keep on warning just wait. do you do it today >> as the volume dries up we'll feel better. i will just give -- i want the symbols to be known. the uvxy, vxx, this is a very complicated piece of paper the first and second month of vix. tvix, that's another one these traded a hundred million shares of the fi

both came out in favor of broadcom.lly recommended that all six of the broadcom directors get elected to the qualcomm board, which would give broadcom's nominees majority control of the board. lisa: than the board would most deftly try to push that deal through, no? ed: that would be the assumption, though not necessarily always the way these things work out. board, yes, the theory would be they would approve the deal, whether they approve it at exactly the price proposed, or suggest that the value are presented something higher on the table. julia: whether broadcom is willing to adjust at this stage. ed: they said they are not. they basically said every dollar ,hat qualcomm overpays for nxp which is not relevant, is a dollar they would take away from shareholders if they get the deal done. what at a certain point, is the credibility -- what credibility will they have left. we will leave that question. albertsons, write it -- talk about this deal. amazon disrupted the space last year. themis really a way of getting into

broadcom officially raising its offer to buy qualcomm.hip deal in history $82 per share. $60 per share in cash and the rest in stock. they're calling it their best and final offer. broadcom's original offer was $70 a share. did not get anybody to the negotiating table. the expectation is if you could get over what they call an 8 handle, that would bring people to the table we will see how qualcomm responds >> all right let's talk more about the markets and the potential risks coming out of washington, including a looming government shutdown and trade renegotiations joining us right now is carlos gutierrez. he is the group chair and former commerce secretary under president george w. bush mr. secretary, thank you for joining us this morning. >> thank you good to see you. >> good to see you, too. you've seen volatility but it's been a while since we've seen a pull back like this, more than two years for a 5% pull back for the dow while we've watched things march almost straight higher we do have some risks coming out of washington. why don'

is the price is well above where he stock had been before broadcom showed up with this kind of offer.tion is whether the regulators will let this go ahead. qualcomm shareholders would have to believe their low stock would benefit, i say that from a kind f valuation standpoint, that broadcom shares would grow more than qualcomm shares are right now. case, the at were the long period of review of egulators in the europe and u.s. is reason for shareholders to take some time to consider this as to whether or not this enough money. the combination of stock and cash means they can't just take bank.ash to the they got to believe that there is a future in broad come's forward.ing emily: the landscape of the hip industry has shifted dramatically sinned broadcom embarked on this takeover with so flaws that have been pervasive. do you think that will factor in review of whether more consolidation is really good? cory: what we have seen in the months is concern about consolidation and they understand these markets. the things that we have heard them in particular the fight against intel recently

qualcomm slumping after an approach from broadcom, the biggest takeover bid in history.n, where do we go from here? what does this rejection mean for a deal going ahead? tone of the letter it is hard to imagine it will get done in a friendly way, however, the indication to me, to have qualcomm are present us to meet with the qualcomm board, it leaves open the chance for broadcom ceo to come in and work his magic with the board to tell his side and try to bring them over to his way of thinking. yvonne: is there any chance that the board of qualcomm is open to the deal? i think they have to appear to be considering it given the offer is higher and there are concerns about the future growth prospects. the language in the letter was extremely dismissive of the offer and calling it materially undervaluing the company and said there were serious deficiencies and significant risks that the full deal will fall apart given regulatory concerns. the board will end up where they have always been saying the company is better as a standalone company rather than joining forces with bro

thank you, david >>> for more on broadcom, qualcomm and a tech sector that is coming off the best weekce 2011, let's bring in chief investment officer paul meeks and senior portfolio manage dan morgan good morning to both of you. >> good morning. >> paul, i'm interested in your take on qualcomm here which we were just talking about. it seems to me qualcomm investor who has been watching the company for a long time knows that this is a company that is about the long game, whether it comes to the licensing business, perhaps whether it comes to the acquisitions and the question has become is the game they're playing too long are they even going to make it to the end of the game what do you think about where the company is now and whether it is worth more than it's trading for right now no matter what the outcome >> i think it is worth more than where it's trading right now even if they get close to closing an arbitrage spread and we'll probably get some visibility into that at the shareholders meeting on march 6th for the proposed board of directors from broadcom. but on the other hand, t

. >>> and the chip war continues over qualcomm urging broadcom to engage in direct talks for a takeovereal. >>> buffett is one of the big stories of the deal saying berkshire hathaway received the new tax law. here's what becky said earlier on "squawk." >> we had about $100 billion of unrealized gain in equities. now, when they are sold, you pay tax on that. and previously when the tax was 35%, we would have had a $35 billion reserve for taxes against that as a liability. that would drop to about $21 billion. so $14 billion roughly that was a reduction in the amount of tax that when we saw those securities, we will pay. it wasn't cash now, but it reduced the liability. when you reduce the liability, the net worth goes up. and the other important point related to the same thing, deferred income taxes, when we buy some kind of fixed asset, locomotive or whateverit may be, we're entitled, in previous years, to 50% depreciation in the first year and let's say it's going to last ten years, it may last longer to make it easy, but you would normally on a book basis depreciate it $10 million a

qualcomm rejected broadcom's latest offer to buy the company for $82 a share saying "it materially undervalues the company." this is an ongoing saga. but is this the last chapter? is there more to be written? >> it depends on how firm the

the meeting came after qualcomm rejected broadcom's revised cash—and—stock bid of $82 per share lastsco systems has beaten expectations with its latest earnings report. quarterly revenues jumped for the first time in two years, as the firm's efforts to shift to a software—focused company begin to take hold. cisco also announced a $25 billion share buyback plan, helping send shares up more than 5 percent in after—hours trading. that's it for business briefing this hour. but before we go, here are the markets. the dollar extended its losses against the yen and set a fresh 15—month low on thursday. that is it for the business briefing. up next — newsbriefing. we'll take you through the stories making headlines in the global media today. a pensions mis—selling scandal, which has cost some former steelworkers hundreds of thousands of pounds, has been investigated by the the work and pensions select committee. mp's say dubious financial advisors exploited them for financial gain following the closure of the british steel pension scheme, and the financial conduct authority did too little to

broadcom has lined up $100 billion in debt financing to pay for its hostile takeover bid for qualcommthat ups the pressure on t board. broadcom's ceo calls his offer for qualcomm compelling. >> qualcomm shareholders better today than they were four years ago? answer, no. they're 11% lower. they're 500% richer. we are very good at creating, building sustainable businesses and employment and innovation on busisses we acquire. >> shares is of qualcomm rose, broadcom was up nearly4%, 244.40. apparently peoe were eating up those value meals and new menu ems at burger king. restaurant brands reported higher sales. the company reported better than expected earnings and more than doubled its quarterly dividend 45 cents a share. the shares rose 6% to 59.95. >>> it got a little more expensive to visit disney theme parks. ompany will raise ticket prices for its parks in florida and california ding peak times. a family of four with two children can now expect to pay just under $530 for a single day of activities. now, disney said t price hikes are meant to spread out the number of visitors it see

. ♪ >>> broadcom makes its final offer for qualcomm.s where we begin tonight's "marcht focus." thmaker said it would pay more than $120 billion to buy its rival inhat would be the biggest tech deal ever. broadcom's initial offer was rejected by qualcomm, which said it significantly undervalued the company. qualcomm says it will review this revised proposal. qualcomm shares fell 6% to $61.73 and shares of broadcom we t off 2% $28.10. >>> lululemon said its chief imecutive has resigned from the retailer effectivediately. the company said he did not live up to lululemon's standard of conduct regarding integrity and respect for fellow employees. the board is looking for a replacement. dlululemon's shares wern in today's otherwise down trading day by 1.5% to $77.41. >>> oil and gas producer hess sted a wider-than-expected loss and revenue that missed expectations as higher costs pressured results. third straight quarter hess was in the red. the company says it has launched a restructurg and cost-cutting program, which it anticipates ll save

broadcom is receiving strong stockholder support. merger pact includes $8 billion of reverse termination fees. they urge to meet this weekend. their support among the shareholder base for what they are trying to do. manus: it is going to be interesting to see what form it takes. it could be $60 in cash. i suppose they are trying to get that combination correct. what juliusabout was filling us in on. with all caps upon it. -- we have all touched upon it. in an exclusive interview with bloomberg, bill dudley said he isn't too worried. >> if you were to go on much and be much more persistent, then it could start to affect household and business spending behavior. the concert to influence the outcome of outlet. this is small potatoes. anna: small potatoes, he says. good morning to you bob. great take to get your insights. is this corrections not potatoes or is it something more substantial? >> he raise an important point. this is fundamental to what happens to markets over the next 2-3 months. does this market correction extend and have

they have rejected once again broadcom's offer of $82 per share.ffer that popped the offer and qualcomm said no. the boards met for two hours and qualcomm said, we will think about it. now, they say the proposal is unacceptable. it maturely undervalues the company, is what they say. we will follow the saga. lisa: and see if this was the last and best offer. david: they said that, but maybe there is another coming. live from new york, this is bloomberg. ♪ ♪ beatingcoca-cola is estimates, in their fourth is beingand coke helped by its growing portfolio of different tricks. plus, it revamped its largest deit brand. sierra has raised its full-year forecast, the largest maker of pharma quitman, is forecasting a 25% increase in full net revenue. , buthad a prolonged slump now, corporate farmers are replacing tractors. lloyd blankfein used to be the highest-paid ceo on wall street and now is behind his rivals. indman increased his pay 9% 2017 to $24 million. that puts him behind jamie dimon of jpmorgan chase, and james gorman. david: thank you. blackstone

broadcom let's go to new york stock exchange and nicole petallides calling this engagement theatre. absolutely that's exactly the word they're using engagement theatre being the whole talk on wall street and broadcom slamming qualcomm for this in particular you'll see qualcomm is up about 6% and don't forget these two have been going back and forth and also saying qualcomm saying all of broadcom's offers basically undervalues the company and now there's talk about going back to the table increasing the offer maybe but in the meantime, who knows because qualcomm has been in its own thing trying to get n xp, so we'll see how they work it out in the meantime you can see qualcomm is gaining 6% back to you. liz: that's drama. need to look at dean foods, ticker symbol df folks this stock is tanking 13% right now, morgan stanley has downgraded it at the price target but they're still too high and morgan is cutting the price target from $ 10 to $11 but this is an $8.80 stock a 52 week low. warren buffet berkshire hathaway is jumping 4% sitting on i guess you could call a big fat pile of cas

to talk about broadcom's $121 million acquisition offer. "the wall street journal" reports the company has secured $100 billion of debt financing for that hostile bid also enlisted the help of two private equity firms the ceo of broadcom will be on "squawk on the street" today >>> frld automatic toy plaker planning to raise production of the expedition and the lincoln navigator by a quarter wife% this year. both plants manufactured in the company's plant in kentucky. ford is looking to challenge rival general motors and boost its own profit marking >>> and oxyconte maker purdue pharma is cutting its sales in half pharma companies have come under fire for the way they've marketed addictive painkillers privately held purdue has been sued by 14 states accused of deceptively marketing opioids to try and generate higher sales. >>> and then there is the weinstein, i'll call it a drama, a saga, i don't know new york attorney general eric schneiderman said he's filed a suit against harvey weinstein, his brother robert the suit alleges that the boar

they're set to meet to talk about broadcom's acquisition offer.roadcom raised their stock to 82 bucks a share and $100 billion in debt financing for this hostile bid and the hire of a large private equity firm. >>> new york other than general eric schneiderman isle suing the board of weinstein alleging that the board failed to protect employees from harvey weinstein. sources say the lawsuit has put discussions on hod weinstein's attorney tells cnbc a fair investigation will show how many of the allegations are without merit. >>> and oxycontin make r purdue pharma is cutting staff in half. privately held purdue has been sued by at least 14 states accused of deserve tiffly marketing opioids to generate sales. >>> and of course, we're also watching shares of airbus as well reuters reports the company halted some jet deliveries and test flights after engine snags. airbus has told airlines and leasing companies it can't say how long it will take to resolve the issues airbus shares up up by 5% on an upday. >>>, shares of heineken on a ten-year high toda

to a deal as long as broadcom raises its takeover offer to 1$160 billion including debt broadcom says the shift in the stance is theater. earlier this month broadcom offered 1$146 billion including debt in what it called its best and final offer which was rebuffed it cut the offer after qualcomm agreed to buy nxp semiconductor for $44 billion. reuters says investigators looking into the potential deal. >>> and softbank's vision fund ceo said the firm is seriously considering listing its mobile unit it was suggested that the vision fund would list the unit to create more money for tech investments. arjun is in barcelona and has been at the congress you also spoke to the ceo of softbank what can you tell us >> that's right. let me give you a quick rundown of what the softbank vision fund is this is a 1$100 billion fund wih apple, qualcomm, they made some huge bets that invested in companies like uber, and others, i sat down with the ceo of the fund and talked about the philosophy of investing with the vision fund and whether he backs dara khosrowshahi's pledge to go public in 2019 >> he

in response broadcom lowered its offer to qualcomm yesterday saying these guys are transferring valueway from qualcomm shareholders to another constituency and we cannot offer the same amount we were offering to acquire qualcomm. and what do you think qualcomm shareholders will think about this they might have wanted qualcomm to take over nxp, but -- >> the key data is march 6th, when broadcom has tabled an opportunity to overthrow the board. if shareholders agree, they will vote in favor of new directors they will then replace six of the existing directors on the qua qualcomm board and push for them to talk with broadcom. everything is a tactical battle. >> it's been a fascinating deal. clearly the start of the year everyone was expecting m&a to pick up. the fundamentals of the economy may suggest that might continue to happen. has the recent market volatility damped expectations for m&a for the rest of the year >> it has. but because we're in the late stages of the economic cycle, if you look at melrose and blackstone, you are seeing aggressive heavily levered deals that are a sign

to $82 per share broadcom plans to offer qualcomm a higher breakup fee in the event that regulatorsvide the deal to broadband and data it makes them attractive to qualcomm. qualcomm is privately in talks of its own to buy semiconductors and also involved in a patent dispute with apple over licensing. qualcomm up 3.5% in trading. and broadcom up 4.5% >> thank you, landon >>> an investigation is under way to a deadly amtrak train crash in south carolina. it happened early sunday morning when an amtrak train slammed into a csx train the investigators from the ntsb said a lock switch diverted the train off to a sidetrack where the csx was parked csx maintenances all of the signal systems in the area csx releasing a state saying in part it will continue to work with investigators into the cause of the crash >>> up next, the selloff goes global asia and europe both in the red today. we're live in singapore and london, straight ahead >>> as we head to break, here's another check on u.s. futures for you. where we may be opening wndo 144 points on the dow. the s&p down banging their head on

if you look at what qualcomm and broadcom are saying is that it is interested in keeping its businessher and feels $82 a share is unequivocally low. broadcom on the other hand believes this stock is trading week, this will be a long, drawnout process. qualcomm investors, take your money and run. ♪ ♪ you are watching "bloomberg best." david westin spoke with lloyd andkfein in washington dc discussed the sudden return of volatility to markets and what it has meant for the trading business. >> things are going to happen. there will be something that happens in the world here there will be a natural disa -- the world. there will be a natural disaster. something will happen that will cause the relationships of one acid to another readjust against each other. it has been unusual that that has not happened. people are not sure the reason why. my own best guess is that when i look to act is people will say that because of qe and central banks around the world buying risky assets, as much as they could get almost as fast as debt was issued, they bought them, that tends to be a blanket over spi

at broadcom headquarters in san jose, california 11:00 a.m. here on wall street and "squawk alley" is live ♪ ♪ >>> good morning welcome to "squawk alley." with me at most nine, morgan brennan and david faber. carl kinquintanilla is in pyeongchang. >> we have mainlior averages pulling out of correction territory adding to friday's gains following the worst week we've seen in the markets in two years. christine lagard weighed in from the world government summit in dubai. >> you compare valuation, you know, from a week ago, there's been a market correction off anywhere of 6% to 9% which frankly given where asset prices were very high, it's in our view a welcomed correction. and we have observed suddenly despite the volatility the market channels and pipes and mechanisms have worked well. and we also see the financing is still plenty and very much available for the financing of the economy so, you know, corrections happen they were due to happen. and that's where we see it >> for more, joining us at post nine is citi's chief strategist tobias letv

. >> no deal, qualcomm rejected broadcom's latest offer to buy the company for $82 a share saying "itlly undervalues the company." this is an ongoing saga. is this the last chapter? >> it depends on how firm the last and final is. this is old-school negotiation. if you look at what qualcomm and broadcom are saying is that it is interested in keeping its company together, licensing and feels $82er, a share is unequivocally low. broadcom on the other hand believes this stock is trading at $65, earnings fell, this will be a long, drawnout process. qualcomm investors, take your money and run. ♪ ♪ nejra: you are watching "bloomberg best." i'm nejra cehic. david westin spoke with lloyd blankfein in washington, dc and discussed the sudden return of volatility to financial markets and what it has meant for the trading business. >> things are going to happen. there will be something that happens in the world. someone will get elected, there will be a natural disaster. a company will go under, war, pestilence. something will happen that will cause the relationships of one asset to another to re

. >> broadcom is trying to force qualcomm to come to the bargaining table for what would be the biggestechnology deal ever. the chipmaker has raised its takeover bid to $121 billion from $105 billion. >> they call this the best and final and are not willing to negotiate a higher offer. is this enough to get qualcomm to the table? the short answer seems to be no. >> qualcomm rejecting the bid in history. turning down what broadcom called its best and final offer at $120 billion and leaves the future of the proposal to be decided by shareholders next month. how do you say we don't like the deal when the deal is $82 a share and your stock is trading at $62 a share and is not going higher? >> qualcomm is saying broadcom is not appreciating the value of its acquisition, the potential resolution of its licensing dispute with apple, and the opportunity to expand as 5g technology becomes a thing. >> the founder of wynn resorts has stepped down amid these allegations of harassment. the board said it appointed the current president to the role of ceo and remains to committed to upholding the high

as i reported previously, broadcom is trying to allay the fears of qualcomm shareholders the companyng going hell or high waiter, committing to do anything and toef everything to get the deal done. it's more likely they would go to a massive breakup fee, the biggest breakup fee of all time in order to allay the fears. and then also includes some sort of material adverse effect clause on the target we'll see where all this plays out. we'll be hearing most likely from broadcom in relation to what will be an increased bid for qualcomm in the near term given the time that's gone by. all right. now let's get over to jon fortt talking about time, time to get a look at what is coming up on "squawk alley. >> david, well, paypal down more than 6% thismorning after ebay announced it's ditching them as the primary payment processor. we have chief financial officer of paypal who is going to explain what's next r at mpy mi up.foth in stocks and bonds. they don't invest in alternatives or municipal strategies. what people really invest in is what they hope to get out of life. but helping them get

the qualcomm broadcom saga continues to be quite interesting as broadcom raises its bid for qualcommo $121 billion or $82 a share. qualcomm is down and trading below those levels. broadcom is saying this is the last the best offer. it looks like there's not a lot of confidence this deal is going to get through. there's reported upon deal with archer daniels midland said to be an advanced talks to buy b unge. the market cap today about $11 million here. glencore had raised the idea of a merger last year and there could be some sort of bidding war that does emerge. as we watch this bounds at stocks today, there was some commentary from ubs. ubs saying it was not the time to sell stocks after we saw the selling happened last week. that's because according to ubs strategist the global growth that we would see what offset any rise in rates. ubs also says keep an eye out for bond stabilizers. what you have here is stocks and blue and u.s. 10 year yield in white. we have seen something of a stabilization today. the yield are certainly not rising at the same pace they were last week. that mi

sounds like broadcom has compromised on certain areas and what about qualcomm?y taking the meeting compromise? >> to just take the meeting, to just show that they will sit shareholders, that they are just listening to the proposal and not shutting it down cold. itentially, if they take seriously, what they get is the opportunity to hear from the horses mouth what the proposal in mind which would be valued for this company. if you were maybe in a different ballpark, we can have a friendly conversation. >> a really shrewd operator, he is not known as someone who will go, you know what, i will pay up eons the $82 and they said this is as high as we will go here. what can he do here in terms of sweetening the deal without giving up any more money? >> he has put himself over the barrel as well. he not only said that in the initial offer, and has reconfirmed that. it is difficult for -- to see him bumping more. he could potentially decrease the fee. huge at the moment, it is in dollars. so he could potentially do something there. everyis also this fee for month that p

broadcom sweetening the bid to rival of over $121 billion shares of qualcomm down 3% broadcom higher2.6%. a quick look at the dow as we're slipping again, now down triple dints. 110 points lower more ahead on how to play this volatility straight ahead on "squawk alley. energy is changing fast and we're changing with it. building a smarter grid, investing in new technologies, that's aep's road to the future. and the international brotherhood of electrical workers helped make that happen. the ibew's outstanding union professionals have the skills and training to get the job done right. that's good for our customers and for our bottom line. ibew members are our power professionals. they should be yours as well. >>> hello, everyone. here is your cnbc news update at this hour. syrian activists say 23 civilians have been killed in intense government air strikes on a rebel held suburb near damascus first responders team releasing the footage showing the chaotic aftermath. >>> a palestinian stabbed an israeli to death at a bus stop near a west bank settlement before fleeing israeli forces se

i think broadcom had to do this they introduce you a line in the sand for qualcomm said you can't go that i think, but ultimately i believe qualcomm will get acquired because if you are on the board of qualcomm right now i am a big shareholder you tell me the stock is 62, we have an 82 now 79 dollar officer on table i am rejecting it better have a plan tell me why better than 79 quickly i think ultimately isf constitutional shareholder services recommending for a broadcom people for the board we purchased qualcomm yesterday i think applying more i think ultimately gets acquired by broadcom. >> you think gets acquired at 79. >> or higher. >> or higher. >> in this press release looking at says basically if deal doesn't go through will justify walk give 3 dollars back 82 dollars a kashare this has been a line in the sand we don't know regulatory pressures and hurdles that will be met one reason qualcomm said listen we are rejecting this you haven't addressed concerns as board you are saying i am not going to lead us into fight try to get 79 or 82 a share if there is regulatory hurdles c

broadcom announcing that on february 5th the qualcomm board determining two things they said the broadcom proposal, in their word, materially undervalues qualcomm two, it falls well short of the firm regulatory commitment the board would demand given the significant downside risk of a failed transactions. necessity say qualcomm has offered to meet with broadcom to see if they can address these, what they call, deficiencies and values in their proposal broadcom had previously described that $121 billion offer as its best and final offer. that qualcomm shareholder meeting coming up on march 6th back to you. >> i mean, this is what david faber was talking about earlier this week, uphill battle for qualcomm in this one both the shares -- this is extended hours trade -- qualcomm up 1.5%, broadcom up fractionally courtney reagan with fireeye. >> they are hanging onto gains reporting fourth quarter earnings of one penny but a loss had been expected. that was a beat. revenue coming in stronger than expected at $202 million the street was looking for $193 million. that revenue number is up 10% yea