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ge. a national betrayal, ge stock went in the toilet. the actor was fired. ge theater was canceled. in boulware got pneumonia. and he did retire the years that followed, the set subject of the great society only deepened the sense of failure for such a venture. ge at self defendant news cooperation as did many other companies with the federal government. in his own boulware mocked his old efforts. american voters did turn away from socialism, they thought social democracy or just government expansion sounded nice. they voted in lyndon johnson and a socializing program and we can call it that. great society.gr johnson promised to cure poverty and to make america an even better place in a great place with an even stronger economy. they did create the beginnings of a national healthcare system. though we getting now, medicare. this year the great society year did strengthen unions and johnson was only the beginning. one of the revisions of great society, in this book is a evvision of richard nixon. in my research, i discovered that nixon actually expended government and johnson had befo

ge or most of ge, that sounded just fine. the milk cow was content with the government. the tennessee valley authority the big client was the essence of government project and ge executivest the top like to very much. and ge found that tva was one of its biggest customers. they didn't mind serving the space program. unions existed by virtue of very strong union law and they demanded big pay packages. social experiments by the federal government. american business could pay that. maybe expansion of healthcare, the u.s. could pay that or perhaps a longer leave for young parents. that's just a joke. something like a longer leave for young parents in the early 60s we could pay that too. heavy unions we could pay any load. stalin was said to have joked that the only country rich enough to afford communism was the united states. [laughter] why should it not be true? why should it not be true? in the 1960s just some benchmarks for you, the dow jones industrial average was approaching a record level of 1000. it seemed only a matter of months before the dow would pass up landmark. there was one aging underappreciated executive at ge who saw things differently. he was an older guy

ge capital. ge capital as i called it one time, ge was a hedge fund that happened to make light bulbs they always had ge capitals where they could find earnings juice when they needed it. now they make locomotives, oil wells. >> the power piece of it is so important and we don't know what the max situation will bring for ge there's delay upon delay that future, if it looked certain a month ago, is less so. and they have investigations you can see the negatives. you can't see what the upside surprises are they're talking about. they said we don't know why, but we'll get an upgrade on the earnings for 2020 and have a stronger than expected quarter >> analysts are just running out of ideas at this point >> it's good >> yeah. >> it's like is tshhtar, the movement i have, it can't keep getting worse. it does. alphabet marching back to $1 trillion in market cap despite being late to the game the company would become the fourth technology company to cross that 13 digit threshold currently ahead of amazon which pulled back. evercore is boosting its price target saying it expects google to dominate in sea

ge stock. in 1960 casting a dark cloud over ge boulware and his propaganda mill. the justice department was investigating the company the new attorney general robert kennedy pulled together a strong case ge was colluding with other companies like westing price when - - westinghouse to fix the prices the justice department went to court and the judge said ge executive went to jail the irony was undeniable here was ge propaganda department mouthing off is and as they cheated the american taxpayer. this was a terrible blow for ge and boulware the company look like the worst hypocrite in the world nationwide people felt they were betrayed by their trusted company like in 1919 national betrayal that was in the toilet the actor was fired ge theater was canceled and boulware got pneumonia and retired to delray beach so the subjects of the great society deep in the sense of failure. ge itself the news mocked his efforts american voters did not turn away from socialism they've brought social democracy or government expansion. they voted in lyndon johnson and a socializing program we can call it that. johnson promised to cure poverty and make america an even greater place with an even stronger eco

ge as well, before we take a break. beat top and bottom. stock having its best day since october, highest level since october 18 pete, you own ge as well. >> no, i do not own ge. >> you don't own ge? >> no, i have no position in ge. sorry. >> my notes said you did. >> i do not. >> credit stephanie. unbelievable quarter. >> free cash flow with ge, one year later it's about the industrial growth of free cash flow. street was looking for 2.2 billion, we got over $4 billion. that's remarkable. the analyst community, they have to come in and upgrade the stock, 12-month average price target is 11.75, stock trading close to 13, back where it was when larry cope became ceo. >> i don't think jp morgan . >> he is analyzing it. i don't think it's unfair. the stock is doing well now. >> $5. >> i think it's a directional call more than anything else, whether it's 5, 7 or 8, it doesn't matter he says it's going down. my point is that's still an expensive stock. he has done a lot of hard work and there's much more hard work to do here. >> correct me if i'm wrong. >> sure. >> my notes are wrong. i'm not sure where we're going. >> that's okay. >> you've long argued that the s

ge, and a lot of cultural overlap between the companies. they share a lot of management. if you look at the reckoning ge is telling. boeing will have to fundamentally change how it operates in that raises questions about the longer-term margin profile. kennett get back to free cash flow levels, or was 2018 the peak? alix: great conversation. andrew kessner and brooke sutherland. thank you both very much. coming up, more on boeing. we will break down your trades this morning in today's technically speaking good if you're heading out and jumping in your car, tune into bloomberg radio heard across the u.s. on sirius radio channel 119 and the bloomberg business app. this is bloomberg. ♪ alix: time for technically speaking, your trade for the morning. bill maloney joints me now. on your terminal. apple -- what is your chart tell you? bill: shares are up in the premarket. the all-time prior high around 323 may be resistant. it is 325 in the premarket. potential short-term resistance, 323 325. if it can break above that, the next level may be around $346. alix: let's get to boein

can't just keep buying these things, which would be welcome we didn't mention ge, david, something about ge and boeing. ge making the numbers. >> right >> toussa. >> i'm not doctrine -- toussa has been negative for too long >> he's now an asterisk? >> no, not an asts reerisk. something i wanted to pay attention to - >> xerox >> no. >> it was a joke >> music >> live nation >> it was interesting with the doj and ticketmaster and consent decree and seem to be still strongarming arenas. i'm talking about nielsen numbers on streaming, the music industry has become more and more profitable again after years when it was a horrible business remember of course it was a period of time when it was people were stealing remember the first steve jobs, the first ads rip it, and remember, how the music industry -- >> he rolled them. >> -- all the people who were using those sharing sites, steal music. that ended with streaming and the numbers from nielsen are interesting. total album equivalent consumption up 15% total album sales digitally down, i'm sorry, total album sales down 20%, on demand streaming up 29.3% >> that

ge, because i like ge as well and caterpillar tractor and apple, i think you have to watch those names because i think those are all core names and siee how they react to the earnings announcements putting in perspective where the market is, the tone of the market today, might actually provide even more opportunity. >> that's right, kenny as you're speaking, we are seeing both of those names under pressure apple down by more than 2% and gelmost 2% kenny, thank you for being up early and being with us here this morning >> thanks. >>> coming up, housing set to be in focus this week as we await a number of key reports on the sector the ceo of one of the country's top mortgage companies explains the trends he's seeing when "worldwide exchange" returns how's the it department liking the now platform? every time it takes care of something for us, we celebrate. how often does that... got it. servicenow -the smarter way to workflow. doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. woman: what gives me confidence about investment decisions? rigorous fundamental research. with portfolio managers focused on the long term. who look beyond the spreadsheets to understand companies, from breakroom to boardroom. who know the only way to get a 360 view is to go around the world to get it. can i rely on de

ge was able to grow its free cash flow versus prior years despite the $1.4 billion cash headwind from the grounding of the boeing 737 max which ge makes the leap engine for. he says they're aiming for the mid 2020 return to service of the max but notes, quote, the situation remains fluid. meantime geg shipments of the leap engine to boeing by half this year compared to the 2019 run rate. with that bringing down production levels not to zero because ge wants to be ready for the return to service and subsequent ramp up he also says general electric has had a terrific year with airbus as ge manufactures the engine for the air 320 culp says the key operational focus in 2020 this year will be renewables, ramping up onshore wind with the launch of the holly x next year the world's largest turbine plus projects related to hydro power culp says we are not pleased with the cash performance in renewable. he did spend time in india and france this past month speaking to existing and new customers. still waiting for progress in that division. on india culp says he is keen to see the second term for the prime minister modi result in a better story lastly on the story of coronavirus ge's health care division is increasing deliveries to wuhan hospitals in china including patient monitors he says

bell ringing ] they wanted to do a gigantic wind project voted down by the regulators that's ge, how about ge't like light bulbs that are energy efficient but anyhow it's an interesting point you make the utilities are rewarded that are focused on that and that seems to be where elliott's trying to push these guys. >> look at dominion, letter d. they have tremendously low cost for what they have, what they produce. that's been a hotbed of places to put data centers. maybe these guys should have more data centers if they were wind oriented. that's interesting by elliott. they're not esg. >> here is the long letter >> let me grab that and come back to you. >> brent is filling in negative. stereo taxis at the nyse, urovant focused on developing therapies for urologic conditions we'll see travel names to see if there is a downgrade of activity in the wake of this virus. >> the cruise lines have always been attack eed aggressively. obviously the casinos, people feel that the travelers will stay home, and those are the ones that are hit. by the way, glaxosmithkline has done more on vaccines, second

ge. >> it is working for ge. >> you have some other moves that you're making as well. >> i had a couplenames over the last week or so that i've added. cardinal health would be one of them i like a lot. i actually added first solar when you're watching oil and energy and the rest of that, that's one of those names that gets forgotten but they buy back their stock, trade at a very inexpensive valuation so i like them western digital is another one of the names that i've added as well. >> pinterest is rallying today, one of your stocks. >> i like pinterest. i owned it i think bill is wonderful. he hasn't done a great job managing wall street he guided lower and stock was down about 25% it started to fill the gap what's interesting today is they came out and they're the third largest social media in the united states, above snap. also their user growth overseas, like two-thirds of the 322 monthly average users, two-thirds of that is international. it's a great way to play international in the u.s. with a growing company. that said, i'll wait until january 30th when their earnings come out t

ge into next week's earnings? this has been an interesting one. a lot of people talking about ge. >> this has been on my radar since january. it broke out above the $11.5 resistance level if we look at ge from a relative perspective, it's starting to outperform its sector. not only do i like that relative strength going into earnings, the industrial sector itself having spent most of 2019 going sideways broke out in november and i think there's a lot more up side, especially going into an election year here. with general electric looking at the earnings, it's implying a 7.5% earnings. that falls in line with the 7% because general electric implied volatility is at the lower end of the range is a fairly simple strategy of buying a call spread i'm going out to march i'm buying the march 11 calls by 1.05 and i'm selling the 13 calls for 20 cents net net i'm here paying 85 cents for the call spread bringing my break even to $11.85 which is only 15 cents higher than where it closed today. i have a 12% up side by the march expiration. >> what do you make of this strategy seems like a good one. >> i like the strategy general electric, although the options are fairly priced relative to the kin

ge into next week's earning this is interesting. a lot of people talking about ge. >> this broke out in january above the 11 1/2 level i think this is a good entry for potential long from a risk reward prevc looking at ge from a relatively perspective it's starting to outperform the sector. not only do i like that type of relative strength into earnings, the industrial sector itself having spent most of 2009 going sideways broke out in november i think this is -- there is more upside especially into an election year here so general electric looking at the earnings here it's implying about a 7.8% move next week going into earnings which falls in line with the roughly the 7% that we have seen over the last four quarters. so the way i'm looking to play this, because general electric implied volatility is actually at the lower end of the range is a simple strategy of just buying a call spread. i'm going out to march and looking at the 11 x 13 call vertical i'm buying the march 11 calls for about $1.0 a earlier today and selling the 13 calls for 20 cents. net-net here paying about 85 cents for the call spread. bringing the break even to just 11.85. only about 15 cents higher than it disclosed today i have t

ge is surging towards its best day since october. this stock is up around 10% after its fourth quarter report showed the company's turnaround is finally working perhaps. a good day for ge. >> they might be finally getting some things done. it is largely a cash flow story. in the fourth quarter cash flow came in at $3.9 billion. estimatesd ge's that of analysts. is saying it will be up as much as $4 billion, well above what analysts were expecting. it's a positive story. the street looks happy about it. ge can continue to pay down the debt, deal with significant liabilities it has and could get the net debt down to about 2.5 from 4.2 right now. david: they are working with some headwinds in aviation and in power. kailey: they still have those headwinds in power. it has been struggling. orders fell about 30%. unitlso had the renewables that saw orders down around 11%. the strength in aviation outweighed that. they saw orders rise. $4.4 billion in cash flow despite the fact they had a $1.4 billion headwind. they are not getting paid for the engines they make for the 737 max. despite that, the strength in aviation was driving business of the fourth quarter. there was a lot of uncertainty around the max but ge was able to withstand that for right now. david: orders are not just orders. you want orders to make money. they took to

think about this, ge, what i've been saying the last couple months, ge, $20 in 2020 i figured what better to kick off my first last chance trade with "closing bell" than to start off with gee conversation that was so negative they discussed bankruptcy. have you heard bankruptcy enter into the dialogue in a while with ge? >> no. >> it's in the memory. >> but it's not in the dialogue. they did an excellent job at navigating through unsettled waters what has gotten better power, aviation, and they have a line of credit i don't think bankruptcy is in the cards, and things are looking brighter but it's all about earnings >> it is off its lows quite comfortably but you're happy to buy here >> think about it, if you look at a longer term chart in ge when it was falling, obviously when you start coming from a lower base the way that it's increasing in price everyone is going to be afraid of, but this is a stock that should be back if it succeeds, it should be back to $30 and $40 and there will be bargain basement if you're able to pick it up. >> you just missed out on the trophy. >> i did i was happy to make it to the top five. >> that was fun, the last chance trophy it's a long

ge's ceo jeff immelt is doing. charlie: it's obviously been a tough couple years for him. he was booted ceo from ge after an 18-year tenure as the company's stock started to fall as there was insurance liabilities. the once great company obviously brought down pretty far down. didn't get much better when john flannery took over. now there's a new ceo, larry culp. amid all this, there are books, journalistic books, phil cohan, aug author and journalist is out with "power failure." good title. that will be out soon. these books are coming out and will be critical of jeff. let's be clear. i have known jeff a long time. not best friends with him. he was nominally my boss when i was at cnbc, yours as well. always found him to be a good guy. he had a rough hand. that said -- liz: well, he inherited the company after 9/11. charlie: at the top after jack welch. that said, lot of missteps along the way. and amid all that, what i understand is that jeff immelt is writing his own book. he's got a contract with simon shuster, i understand. this book is a book that is designed at least to get his side of the story out there. he's very worried about his legacy. particularly as these other journalistic accounts, cohan, might be one other one possibly out there, these other journalistic accounts and obviously the continued problems with the company. we should show the stock chart. larry culp took over the firm, i think it was $8 a share. i think we are at $12 a share right now. we are -- this is not a company that's doing that much better. it's a great company, got a huge market cap, hundreds of billions of dollars, great products -- liz: 103 billion. charlie: 103 billion. lot of people worried about its future. we should point out larry culp as he's making his own mark on the company, very fascinating. he's not reaching out to the old guard for advice. from what i understand, jack welch hasn't been consulted, immelt hasn't been consulted. we have calls in to all those folks. they have not called us back for comment. you know, listen, i don't have -- i heard flannery hasn't been consulted either. he was only there for a year. i just, i'm remiss to say that for sure, because i haven't been able to reach out to flannery. i don't have a number for him. but you know, the two main ones, immelt and welch, have not been contacted by culp which is fascinating for a new ceo taking over this company. he's literally remaking, trying to remake this in his old image and i don't think he wants anything to do with the old guard, who, you know, i guess at least tacitly by not contacting them, he blames for the problems with geis day. so amid all this, we will be hearing a lot about ge and the legacy. immelt's book, i know one person that claims to have seen the manuscript, okay. it was described to me as a defense of his tenure as ceo, the 18 years, very controversial tenure. we will see how that's received going forward. but you know, listen, ge, we should point out, millenials might not remember this, this was the company pre-9/11. liz: they used to call it, it may sound uncouth, but the stock for widows and orphans. charlie: especially jack welch. the stock flatlined throughout the '80s. made a lot of money but jack welch took the company to new heights in the 1990s. it really was the darling of wall street. lot of people said he got into too many businesses, he screwed up and left immelt with a bag of you-know-what but did immelt do the right thing to change ge for the times. that will be the debate that we will be hearing about even as the stock still slumbers at $11 a share. i would be remiss if i did

they talk about the dash for trash in relationship to ge and some of the other names. >> ge was an interestingnt it was a hat size, and it closed up 100% from the lows. companies that lose money that have a lot of leverage, right? so when you can get an inflection point, then you get big, big gains it doesn't matter. back to mike's point, ugetting big gains. apple was up 86% last year >> it's a winner take most world in a lot of industries if you want to complain about the market being narrow, it's narrow in some of the most profitable businesses that have ever been on the planet. >>> it's been a wild week for the market bob pisani is wrapping up the week with the week's biggest movers >> big movers and shakers. mcdonald's had a great week, expanding their tests with beyond meat. that's a great one there goldman was up they had a restructuring announcement but the rest of the bankses not so much. it was the week oil and oil stocks reversed after that very brief rally. chevron down every single day this week. >> certainly did not help their stock price. guys, back to you. >> courtney, as we loo

ge's ceo larry culp is looking to raise cash and revive the ailing energy business. gegas turbines and energy generators. it has been a cash drain because of slumping demand. coca-cola citing rising demand overseas in high sales of its low sugar drinks in the u.s. coca-cola zero sugar had another year of double-digit volumes growth. grou invested $12 billion in juul and has now written that down by 2/3. accusedf lawsuits have the vaping devices of addicting young people. is named inaltria some of those cases. that is your bloomberg business flash. next week, we will bring you special coverage of the iowa caucus at 10:00 p.m. eastern from des moines. we will carry president trump's state of the union at 9:00 p.m. eastern tuesday. here in the markets, we are picking up some steam to the downside. s&p is down by about 0.9%. guy: here in new york, we are at session lows as we head towards the close. bt group the biggest loser, but the biggestbp group loser, but carnival, that stuck down by over 5%. we were just talking about it. royal dutch shell down by over 4.5%. the mark

ge >> i'm jt saying ngmicoe ov. hour, a warning for parents of what doctors found in the y,ou ges it right there, righ going to coutfor sshat she sa changed her family's life. ch d geanfahe it fwa ter floothe hotel for us. ou they gave me that break, that leverage, and... i feel like wee come full circ. like that! >>> welcome ba.year. d irs foa start to a new year. and for one waitress 2020 is off to an incredible beginning. >> it's one she says is nothing short of life changing. >> a single mother and waitress from detroit got a life-altering gift for the new year. served her a fresh start for the year 2020. >> i'm going to build a future because of this. kids ve auturey and i avehae.om h it's a reabilly g de ressa iitwa aew year and a nie, e gerosity otwo customers. emio to my neighbor's like me. >>epr: sglth of three with a daughter on the ndveinmoe g tirtmed in a .amentho unaware the full gravity of yi home, i'm trying to do right. i'm a server, i don't make great i moved into my own house today. like, that was able to happen, i did that today.they gave my kid didn't have. >> danielle is also going to be of tid

ge. we mentioned it's reporting tomorrow morning you don't seem that thrilled to talk about ge. >> i don't be -- it's not about the earnings this is like a two-year hold for me, betting on the ceo, turning the company around we already know that health care is going to be weaker than expected aviation is going to be impacted from the max that we know i'm curious if power gen can stabilize. free cash flow is the most important number to watch. that tanlds at about $3 million. >> and free cash flow, not sure what you're going to get, power, biggest unknown. we'll look out for that obviously tomorrow and see your take after the fact. final rade >> remax, great franchise, 12 times, we like it here >> another way to play financials is insurance. >> el brand. >> nike. >> thanks, all "the exchange" begins right now. >>> thank you, scott here's the big rundown on "the exchange." stocks rebounding, confidence surging and investors are turning their focus to earnings. we have apple after the bell, facebook, amazon, microsoft all on deck this week. will those big numbers keep today's turn around goin

>> deutsche bank out with the catalyst call for ge and thinking 2020 guidance suggests an up side to current consensus. those shar are up almost 4%. is gethose places? >> i asked you to throw in bitcoin just to make it perfect? >> this is a global company, but there are still ver fundamental problems here. so i think you can do this as a trade, but i think long-term there's a lot of work to be done >> what about facebook is that a part of tech >> we're still rory about the reg la tore but we do think they agree on, which these companies do agree, so even facebook we can't find >> they're certainly leveraging it to sell ads against it. >>> still to come, we have your last chance trade. lots of those values straight ahead. >>> up next, lululemon hired today after raising the forecast, is the valuation getting a bit stritch? mike santoli will find out >>> here's a check on bonds. treasury yields getting a small lift to start the week "closing bell" will be right back. make fitness routine with pure protein. high protein low sugar tastes great! high protein low sugar so good! high protein low sugar mmmm, birthday cake! and try pure protein

ge numbers is cohead of global industrial infrastructure. you know as much about ge than anyone would you characterize this as steady as she goes we are seeing some of the efforts bare fruit >> good morning, joe, becky and andrew i think right now, we still have to keep focused on the most critical keel on this turn around, which is where you are going on free cash if i'm anywhere close to the market's thinking, the fourth quarter was in the 2.8 to the 3.2 billion range. you mentioned 3.9 billion. that would be near the upper end or slightly above the positive guidance for 2019. we look forward to 2020, i thought the initial guidance would most likely come in the rake of 1 to 3 or 2 to 3 i think you mentioned 2 to 4 obviously some variability to that with regard to the leap to return to service for the max. that will be a tale wind as we exit this year and certainly to 2021 i think certainly better revenue, organic orders moving up their epf is a good telltale and the best way i would describe it not the focal point right now and how they are taking assessment of his success. >> so the industrial free cash flow of 3.9 for the kwauquarter $3 million for the year. >> that's right. the street was looking for $800 million to $3.1 billion. you are running a step ahead which is wear larry likes to be. >> that's helped by the fourth quart quart quarter? >> right year to date, you were negative $2 billion you add this in, 3.9, you have a catch up i think one of larry's important efforts we'll see more of this year is he's trying to get these large, long cycle big businesses in aviation particularly powered to run every day, not just in the last quarter of the year you'll have more uniform performance as we go through 2020 >> that's what i was going to ask. we can't expect this in the first quarter but you want that mujed out. stocks up 5.5% at this point >> this should put you in there right now, 12.25 to 12.50 range. >> then you hang there until the outlook meeting in march >> today's focus there. looking at 19 and free cash flow this year, moving to power improvement with the large gas turbin global upturn and this year, the big turn is grid and renewals. you have risk elimination, not reduction. the guidance isn't going to be earth shattering it will be reduction of any last remaining doubt. as we exit this year and go into 21, we'll monday ties, in my opinion, the rest of health care because power recovery will be well enough along that it can replace. you'll have the grid and renewables return in '21 as you get the huge upturn in the offshore wind development. >> market cap is now back over $100 billion it is not a yield anymore. .34% we appreciate your analysis. >> thank you have a great day >>> when we return, futures are indicated higher gemong the names leading the s&p 500. more earnings movers are straight ahead later, we'll dig into another morning mover. apple shares are up. we'll get the comments from ceo tim cook about the quarter you can watch or listen live on the go on the cnbc app, we'll be right back man: how can i deliver superior long-term results? it begins with a distinctive approach to managing money. that for over 85 years has focused on keeping confidence up when markets are down. an approach where portfolio managers work well independently. and even better together. who don't just invest, but are personally invested. can i find a proven approach designed to deliver results? with capital group, i can. talk to your advisor or consultant for investment risks and information. talk to your advisor or consultant you still have service? call the insurance company sfx: [phone ringing] it's them, calling us. it's going to be a week before they can get through on these roads shhh, sorry, i didn't catch that. i s

ge has traded higher in seven sessions. let's bring in the team. all right, john, company reports earnings next wednesday. do you think it can turn a corner here? >> well, ge is the ultimate show me story we're beyond hope. hope is when larry took over and now we're in can they execute and need to do it over a series of quarters. if you're getting on the geus at this point, you're doing it for the long-term. not for a quarterly move and i think we need to see r more time for this to play out to be convinced. >> yeah, todd, it's trade iing around $12 a share though still well below the all time highs that hit back in 2000 of 58.16 >> i agree, but disagree with my colleague. i think it's potentially short-term play. just to give you the long-term perspective, we have not seen below the $5 region. 7 of 5 is the all time low we bounced off this is a long-term chart. down to the daily herement we've seen a nice bid from the morgan stanley note i actually add it to my position here right now, they have an upside target of about 14 here. i think that is well within reason morgan put out a $9 fundamental kind of floor in the stock right here actually think you don't need to give it much below 11. they have a target of about 14 as ge streamlines their cost i like it. i just added it 20 minutes ago $11 stock on this for me my own portfolio, just t

ge. baba i think three great longs for 020. >> thank you, chris. come back over to the desk and trade the information. does any of the names facebook, ge, baba pb, stitt out for anybody. >> facebook makes sense. it's a stock we have done well with we said textbook back over the summer in terms of retracement levels chris mentioned chart levels now at levels last seen in july of 2018 appears to be breaking out to the upside you probably own it into earnings at the end of the month. i don't think there is anything wrong with taking profits into the number we have seen tremendous drawdown in the name over the years the last couple of quarters unbelievably good to the upside. but you know, i think now you are playing with house money take a little off the table. >> chris brought up three interesting names. rarelily together. other than when a great chartist says it's time the fundamentals on baba make a lot of sense you have a case on a peg ratio this is a company trading certainly subone arguably 25, 26 times. there is a lot of catalyst to the name which includes may be spinning off ali pay and financial kbir but the cores e-commerce business is growing. that's kitsing, also also the ipo locally means there is oolts of liquidity in the name it's not a surprise it's up 15% since the secondary. >> anybody with a view on geou talk about alibaba and hoolt owe a lot about facebook but fge. >> you know of an interesting thing about all the names. is they've weathered bad macrostories facebook anti-trust. >> maybe not the to the level of ge. >> the china i like stocks that don't go down on bad news. i think all three start to exhibit the characters over the last year or so. that's a compelling reason to own them into a better macroyear. >> you know, facebook is interesting. because you just said it's the coming out the other end of something. i'm not certain about that i feel like this is going to be the povertyo poster child for ge going forward. it's a huge part of major industries going forward there is a pendulum shiftwood facebook lets be clear. 2019 was a year where earnings did not grow materially for the first time ever in their history because of all the things that they are trying to get out in front of sales, though, aredown shifting a bit. growthwise it's a 20% grow are i think the next few years

ge tried to obscure every weak portion of the business which is every part of the business i only took a year of accounting but even i could tell the ge bookkeeping was more fiction than fact. there was no way to understand how the company was doing but then they got in larry culp and he realized you need to be an al memmi mem -- an al chemist to understand it. he told us everything. it was disspiriting when he revealed how bad everything looks. but he's a straight shooter. when the guys at page -- i won't mention his name about how the numbers were crooked, culp had a ton of credibility when he responded by purchasing $2 million worth of stock at 7:00 dollars and change and called that hit piece market manipulation pure and simple, end quote. correct. culp is always working to right the ship and the stock has roared since last summer and today ge jumped 10% after results were excellent and more importantly they were easy to get your head around they look like the numbers you get from -- an industrial. a huge winner. and all you have to do was believe larry culp and include that purchase five points ago. and the final act in transparency is boeing reporting a hideous report but stock rallied. imagine the bogus reassurances about the grounded 737 max and stop telling the critics to shut up and gave you cold harded number the fact that the backlog hasn't gone down but boeing made it clear they don't know when the max will be back in the air. that is up to the authorities. all they could do is try to make the plane as safe as possible. at long last they were candid they just don't know hearing that was frankly a breath of fresh air. sometimes it is admitting what you don't want to hear the fiasco is paying millions of dollars because that is the price to get this right and they'll spend more before this is over. why did it it very

of the 737 max and the impact on ge, which of course makes that engine, analysts say the concern is overblown or perhaps the risk is limited. we're seeing shares of ge% today, now up over 30% the past three months. there was a wide spectrum of price targets. pressure is really on to see if the company can deliver. back to you. seema, thank you so much mike, clearly it got down to a six handle at one point. this is where it really has to deliver the numbers. >> without a doubt it's not that much after growth story. the risk is reduced. it seems like cash flow has a decent path and some financial discipline is part of the story now as well, but the stock -- i say above 12 1/2 or something like that, that's where you're going to see if we're out of sort of this convalescens c quali. >> i do own it, but it's acted well the last couple months. this is a turnaround and bet on the ceo really stabilizing power gen. free cash flow probably does not improve until 2021, but i get it, i'm in there. >> patience is a advisovirtue, ? >>> travelers, the insurer had a slew of positive news, combined ratio improved significantly that is the company brought it more mo

for ge in the short run but the fact that total industrial profits came into $200 million more than expected, the aviation business is a blue chip aviation business and there is good business at ge. >> are we good. >> good, right. >> yeah. >> are you good. >> i'm waiting for the pullback. >> the hot seat. >> you know, is that a song by -- >> it's the only journey song listenable at and don't at me on that. >> not at you i'm going to pop. >> you coming up, shares of facebook plunging on growth concerns the company's conference call under way. om get reaction to the quarter fr early facebook investor roger mcnamee. he is here stick around back in 2. new york state is building for the future of your business. with a nation-leading $150 billion commitment to infrastructure, we're creating state of the art, 21st century transportation hubs, constructing new bridges, bringing high-speed internet to every corner of the state, and committing to low-cost clean energy. with infrastructure built for the future, the companies of tomorrow can thrive here today. see your future at esd.ny.gov. >>> welcome back to "fast money. there is shares of facebook dromg sharply after hours. the stock wei

ge strong for 2019. centsvious beat by four for earnings, but the stability of the financial ratios, it is a usual ge terse presser out of washington. growth in the mid-single digits. the market clearly likes it with a left. the company delivers organic revenue growth which was iconic from years ago as he writes the ship. of thes about priorities leverage of the balance sheet as they move forward into 2020. viviana: we begin with the coronavirus. it is prompting airlines to cancel flights to china. cathay pacific will cut flights to the mainland by 50% or more. dailyh airways halting flights to beijing and shanghai. united airlines will reduce flights. the pentagon raising the number of u.s. soldiers injured in a missile attack on an iranian base in -- on a base in iraq. concussion or brain injury. the most valuable tech company reported that her than expected -- better than expected revenue. apples forecast also beat estimates. global news 24 hours a day, on air and @quicktake on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. hurtado.ana this is bloomberg. tom: i want to bring up a chart as we go to william power. bring up the chart. it is very simple, back 40 years. there have been periods when stumbles, and the 1980's and 1990's. william power, there has been a moonshot for a stunning duration, rounding out to 20 years. what is the risk of a stumble? everything is lit up optimistic. how do you frame the potential of a stumble? william: that is a great question and invariably, there is likely to be a stumble at some point. right now, they have got some ecosystem benefits that are generating traction on a lot of friends, which is -- fronts, which is providing significant dallas for the -- ballast for the ship. chinave some risk in which is a big market for them. it will always be one of those things that we will expect one at some point. tom: i see a 24% reduction in shares over five years, dividend over five years with $207 billion in cash. can they up the share buyback and advance the dividend to a better double growth rate? william: the free cash flow is a good problem to have. if you look at the calendar year 2019, something like 66 billion dollars of free cash flow. they cannot spend it fast enough. they brought back shares this quarter -- bought back shares this quarter. activists to get to a net zero cash position, i think you will see them push the dividends higher more moderately with a focus on the dividend buyback. francine: how will they make money in the future? william: right now, you have got a situation where the iphone growth is accelerating, which is a significant inflection from the decline last year. you have the potential for a 5g cycle, and i am not expecting a so-called super cycle. there is no question, it will generate a lot of buzz, and these are multi-year cycles. think you have got a nice tailwind. in addition to that, they are benefiting from these new capabilities. the services business grew 17%. isrables grew 37% and there still questions on what they might do on the car front. francine: what do you think they will do with wearables? william: they will continue to expand beyond watch, beyond the air pods. they have a lot of interest in the health care space and invariably there will be more applications and capabilities. it is a play from the iphone. you have this great platform and what can you do to add to it over time? budget,ook at the r&d they are continuing to look at other avenues for growth, probably within wearables as well. you solliam power, thank much, on apple computer. general electric out with a little bit of a pop, highs intermarket, a good 3% to 4%. doom 82% off the gloom and of months ago, mr. culp doing the magic he has been known to do. an update from mr. johnson of starbucks on their huge reach in china and the person for graham, , thatnter--- pacific rim interview at 10:00 this morning. ♪ ♪ chain,erms of our supply we see a stable situation. we have safety stocks for all of our team medicines. >> it is better controlled this time. experience,vious this will take a few months before the situation is fully controlled and the situation resumes to normal. sowe have people in asia they need to understand the do's and don'ts. >> most of our key suppliers are far away from this outbreak so we feel good about our supply chain. we have to closely monitor the situation. globalill affect the situation. over time, things will get normalized. >> we have made recommendations on travel, and taken people out of china and asia. francine: those were some of the chief executives we heard from this morning responding to the virus outbreak in china. a lot of banks have put quarantines in place to safeguard their employees. i know an important conversation will be with the starbucks chief and negative -- chief executive. tom: bloomberg is committed to messaging this, not only the actions of corporations, but also the duration. the single headline over the last 24 hours is british airways ,aying, enough with the flights and putting a timeline on its february, the first headline that extended out the timeline of where this crisis is going. we will have much more in a conversation with kevin johnson of starbucks. alan ruskin has been more than patient. we will dive into some of the core themes of mr. powell. is there evidence a central bank can reflate an economy? alan: they can left asset inflation and have been doing it well since the mid-1980's. goods inflation is harder to lift. if that is what you are alluding to, they will have a hard time. ,om: service sector inflation you say there has been a global disinflation. this china crisis as we look at copper as a proxy further puts the pressure on goods, doesn't it? alan: it does. it is disinflationary. depending on how bond markets respond, it will be moderately disinflationary or extremely disinflationary. as long as the markets think the bond markets are working and easing for central banks, it could provide a buffer for asset prices. if bond markets are not responding appropriately, asset prices will drop and be vulnerable. our bond markets working? given the price levels we are seeing. alan: i think they are. we are seeing the remnants of the 10-year gilts going from 3.5% to 1.5%. that was the key element that lifted and is lifting the u.s. economy's expectations for 2020. we need to see that filter through. it is facing headwinds, but for me, that is the thing that is working, and one thing the market misunderstood when we saw the flattening of the yield curve. that had a net stimulus come through because of the back and d of theurve -- back en curve. francine: is there a fixed income space in europe or elsewhere where you see a clear bubble? words likeld not use bubble as far as the fixed income market. cycleields in the bigger in the next few years could go down to zero at the front end of the curve and close to zero at the backend of the curve, and that would prop up asset prices. what it has done so far, a lot of people would say from an equity standpoint, it is stretched. the nasdaq ee ratio is above 30 and looks stretched, but not as stretched as the context of what other assets are yielding. institutions overshooting or undershooting the call? gete where oecd is, do you the feeling institutions are behind a slow down or they will have to adjust up, given the spirit of business and economies? alan: most people are thinking in terms of revising up their forecast. it is less about the forecasting going up and more about the downside risk being reduced. we have knocked out oil in iran, u.s.-china trade. tom: are we going to knock out the virus? alan: i hope so, but it is looming. tom: that is why we love to have alan ruskin on, he is massively type one, type two. it is not what will happen but about what will not happen. we will see this with the virus as well. alan ruskin with deutsche bank, greatly appreciated. he has been more than patient, huge news flow, particularly from stephen engle from hong kong. kevin cirilli and all of our washington team focused on what is to be an extraordinary and indeed historic day in washington with this trial of the president of the united states. decides at 2:00 p.m. it is expected to be a quiet meeting for the fed but a much more noisy press conference. chairman powell, his press conference later today. ♪ francine: this is bloomberg "surveillance." the u.k. not banning huawei but said it will be used in about 35% of its components, the e.u. ruling on something similar. they agreed to avoid a reliance on a single 5g supplier and they are restricting some suppliers, but have not actually banned huawei from playing a role. while way dodging the blanket e.u. band from their networks. us back to the trade relationship between the u.k. and e.u. still with us is alan ruskin of deutsche bank. u.k.-e.u.ay about the future trade relationship and what kind of deal boris johnson will get. the boe has a choice for mark not.y, whether to cut or how do you see this play out? alan: a close call. odds are tilting slightly in favor of a cut. thisnk the way to look at is the bank of england is probably going to be the only g10 central bank cutting rates within the next three to six months. place it in that context that there will be overall ongoing pressure from the economy and the uncertainty as it relates to trade, for the bank of england to ease. hiscine: does that make successor's job easier if he cuts tomorrow, or does it tie him in too much? alan: one of the arguments in favor of a cut is absolutely get this done and then the new governor can come in and set his , not have totone deal with anything related to the past whether it be pressure to cut at the first meeting. there will be pressure from the internal politics side of things to get it over with. francine: 30 six months, two prime ministers and finally the u.k. is leaving the e.u. what kind of relationship will they get? alan: anyone's guess. the problem is that 11 months. trade deals do not get negotiated easily in 11 months. what you are going to see is there will be an enormous amount of time pressure, and to that extent, the real risk is you march along toward the end of this year and you are ending up with what amounts to way hard brexit, the markets under appreciating the risk of a hard brexit as it relates to the e.u. as this previous story was alluding to, the u.s. is not easily persuaded either. francine: alan ruskin joining us today. ,et's talk about santander topping estimates on strength and their latin american business. the chairman says her model is working. 8 billion underlying profit shows the strength and resilience of our models. we are delivering against all goals. topline growth of 49 billion euros, we are up 3% again. we are growing customers6 so it is doing it in the right way, and with profitability of 8%. levelth, we are at a where we are very comfortable buffers level and the against the requirement so proud of the results in the team. francine: investors keep asking about capital. will that placate critics? >> we are in a good place, not just the level but the buffers. this year, we generated 97 basis points of capital growth. because we had more than 60 basis of revenue requirements, if you look at what this allows us, the profitability in the model, i always spoke about the transformation of the model. we are announcing an increase in the cash dividend per share. in the last five years, we more than doubled the cash dividend per share and this is important. 97 basis points of capital shows it is working and it allows us to keep growth, because we have also grown, not just revenues, but the balance sheet, and keep an attractive dividend policy. francine: can you take more negative rates? even if negative rates were to stay where they are, what does it mean for santander? >> five years ago if you told me where we are, if you do the math, it is a huge change. , thees back to santander scale, management, strategy that we can run europe as a whole. it is 10% on the line on , andgible, 53% cost income we have committed to do better. the cost savings we have achieved will increase this year. we have committed 1.2 billion of cost savings, and it is all about the customer experience. for example, the u.k. -- maybe i should ask you about the u.k.. there is always a model of a country that is doing more than others, and that is why it is the model that is unpredictable for the cycle. francine: regardless of what happens with regulation, you feel like you are in a strong position in the u.k.? >> we are the third-largest mortgage lender in the u.k. and had our strongest year ever. we got a huge amount of work on current accounts. people forget we multiplied by five our current accounts, and that is a huge priority. that is the definition of a loyal customer. almost 25% of the total for the group, so it is a huge value for us having this strong franchise in the u.k. we are excited about the work we have done and the opportunities ahead. francine: that was ana botin, the santander executive chair. begin with the deadly virus having a severe impact on companies that do business in china. starbucks closing half of its locations and toyota putting china production on hold until february 9, and restricting travel to the epicenter of wuhan. next month, mark zuckerberg heading to brussels to meet with e.u. officials, trying to head off scrutiny over how they handle user data. the company says he will discuss the framework for new internet rules and regulations. that is your bloomberg business flash. francine: it is fed day. coming up, bill dudley, former president will be speaking to us. this is bloomberg. ♪ sometimes your small screen is your big screen. and with the xfinity stream app, which is free with your service, you can take a spin through on demand shows, or stream live tv. download your dvr'd shows and movies on the fly. even record from right where you are. whether you're travelling around the country or around the house, keep what you watch with you. download the xfinity stream app and watch all the shows you love. beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond. ♪ alix: supply chain disruptions. toyota suspends operations in china. apple worries about losses. the market prices and a full rate cut by the end of october. ge'sw surprises to the upside. microsoft reports after the closing bell. welcome to "bloomberg daybreak" on this wednesday, january 29. the latest is from mcdonald's, that stuck up 1% in premarket. u.s. comp sales went up, beating estimates, over 5%. overall comp sales up almost 6%. earnings just shy of two dollars a share. some strong numbers coming out there. that follows more narrative of what is going to take hold, the macro virus fears or the micro fundamentals. you

he's done an amazing job at ge and will continue to do amazing jobs in my opinion, i think that this is the first step toward many more good things at ge, earnings without cash flow don't mean anything, sara they're empty calories that's the most important thing as far as i'm concerned. and, i mean, if you look around, people are willing to accept so many companies today that don't generate cash. number one, some that generate earnings it's a different world we live in. >> that's true a little bit. the rejection of wework and uber and lyft. >> i was talking to mike milken on the phone yesterday, and we were talking about the early days of the '80s he introduced these revolutionary phones with a first-time less than a-rated company could get financing on something other than a percentage on receivables. we were borrowing money at 15% and paying interest in cash. look where we are today. we have uber, we have lyft, we have companies that people are willing to value in the multibillions that are generated our cash flow. >> is it bubblelicous? >> i don't think so. thank goodness i'm young and i can take advantage of the next wave you're la

ge continues to grow with aviation business and it's seeing increased demand from airbus and the u.s. military the stock up 10%, best day since october of 2019. back to you. >> thank you karen, thoughts on ge, are you a buyer? >> i'm not a buyer that is what everyone is looking for, cash flow and when you have this balance sheet and you need to be plugging away at improving it, that's really important. so kud ohs to him. very impressive. >> so to minimize the possibility of adverse surprises coming from non-core parts of the business and then a convalescence in financial discipline it's probably got a little work to do. around $13, that's where it really fell off a shelf. we'll see if chart-wise it can get further progress. >> of course heading into a headwind of sorts on aviation. boeing did post its first annual loss since 1997. phil lebeau has been following that from the beginning. >> the numbers from boeing were as expected, the fourth quarter a mess as you mentioned, the company did most its first annual net loss since 1997. $2.33 a share is how much the company lost in the fourth quarter. the numbers within the numbers, it's all about the 737 max the cost now, basically they almost