now this deal for goldcorp.resents on a 20 day weighted average for the stock 17% premium for goldcorp. shareholders look at a five or ten-year chart, like the price of gold, that stock has been in a slide as well. so denver-based newmont mining seeing an opportunity to pick up a company and a supply of assets on the cheap look at goldcorp. stock down for almost $30 a share back five years ago to just under $11 a share today. so a 17% premium, a slight reprieve for much beleaguered jc shareholders unless you bought in the last couple months, you're still probably under water on the stock but here is the story of gold, like oil, you have to control supply that is the key. they will have the largest reserves in the world. perhaps they'll bring back some of that production to tighten up gold supply. more on this breaking deal newmont mining to buy goldcorp. for $10 billion and 17% premium on gc. >>> turning back now to the stock market as we just laid out, you have oil, you have brexit, you have the shutdown showdo

goldcorp, there is one fund manager we interview this morning who says goldcorp is not a very well-managed-- newmontto be faces some challenges trying to right the ship. this is a company that has been down 25% in the 12 months through friday for the deal was announced. clearly, investors are not too happy with the way goldcorp has been managed and they are not happy with their earnings. it had a terrible third quarter. -- it'sle are expecting going to be a huge challenge for newmont. the size.ust about people are going to be looking at is it going to be profitable? people are confident in the management of newmont. the problem is how quickly are they going to be able to turn around and improve the performance of the goldcorp asset? to deliver the value for shareholders. what are we expecting in terms of production value the $7.9 billion. there will be taking over the top spot from randgold, which is a little over $6 million. much whichnk you so john javier. the auto business will be solid this year, and yes, american automakers are closing factories, cutting shifts, and laying off thousan

and applying it to goldcorp's assets and the whole portfolio. >> goldcorp was on a relative basis cheapu acquired it, it has come down since last year. the reason for that, they had under delivered on some production targets, costs had not been as productive as they hoped it would be. how do you turn that around want to integrate the companies? a we have gone through detailed due diligence process to understand the assets. in particular i can think of mexico, argentina, and also canada. all of the assets have some good prospects. i think there has been a number spent on exploration and i think there are opportunities for us to bring our technical competence and our financial rigor that we brought to newmont into those assets to really make them sing. >> all of this is predicated on the background price of gold. one thing we usually see with gold is a fairly close correlation to what is going on the macroeconomic environment of the world. --seems to dissipate hovering around $1300. what is going on there. why have we seen that? >> in a lot of cases people have gotten numb to the news a l

one is newmont mining is buying goldcorp, right? yeah i think. >> yeah.not what we're saying there valued at $11.46 a share >>> newspaper publisher mng bidding 12% a share. "the wall street journal" had reported over the weekend that a bid was pending. >>> all right. coming up, fast company profiling masa san plus mike pompeo meeting with mbs. details of the meeting coming up "squawk box" will be right back. this is stonington, maine, a town where almost half the population is self-employed. lobster fisherman is the lifeblood of this town. by 2030, half of america may take after stonington, self-employed and without employer benefits. we haven't had any sort of benefit plans and we're trying to figure that out now. if i had had a little advice back then, i'd be in a different boat today, for sure. plan your financial life with prudential. bring your challenges. the latest inisn't just a store.ty it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. i

. >>> got some m&a in the news mode newmont mine agreeing to acquire goldcorp deal comes after barrett premium on this one. >> 100 million in pretax synergies i'm told, a modest number talking about a month from what i understand, not more than that but these companies know each other well it is all about endgame consolidation in an industry that has seen it you have that other large deal this is the end of the game. you want to make sure you get the right partner and are large enough at this point to survive and potentially thrive >> i like the barrett randgold deal much more randgold was the growth and dividend oriented producer like the old days used to get big dividends. randgold looks for gold in places that are unstable has pretty good relationships with governments that you think couldn't do a deal these guys are much more pedestrian goldcorp has a tremendously horrible stock really poorly run. had so many different things don't think people realize the execution risk at a gold company is just incredible. >> newmont is not considered -- newmont is a strong -- >> consistent. >> w

newmont buys goldcorp for $10 billion in the biggest deal in mining history.say it is now a "show me" story. u.s. shale versus opec. opec production falls to a two-year low as u.s. production hits another record. the showdown continues for prices. pg&e heads toward bankruptcy. the implications for clean energy contracts, project financing, and ratepayers in california. i am alix steel, and welcome to "bloomberg commodities edge." 30 minutes focused on the companies, physical assets, and the trading behind the hottest commodities with the smartest voices in the business. first, we kick it off with spot on.

newmont will emerge with gold court -- goldcorp.st gold minor. investors take -- keep taking money out of bill gross' fund. what it washan half last february. he lost about a 4% last year, worse than more than 80% of his peers. ford upon ceo says he is -- ford's ceo says he is not happy with the automaker's performance. he is on the deal -- the verge of brokering a deal with volkswagen. hackett telling bloomberg at the detroit auto show the industry as a whole is in good shape. >> the auto business is going to be solid. the economy itself has signals that create uneasiness, but i don't think there are any markers that would say we are going into any kind of recession right now. >> a $28 billion liquefied project will take place this year. the facility's first cargo will ship in 2023 and she expects asia to be a major market. >> china should become a one million ton market. the growth potential in the market is really important. and theese need lmd u.s. has a lot of natural gas. there should be some natural synergies there. francine:

teaming up 10 billion dollars deal largest gold producer newmont down 6% goldcorp up almost 10% detroittors details on restructuring plans as well coming up joining me to break it down fox business network dagen mcdowellwrote global economics he had sorry jon hilsenrath joining the conversation this morning 32 advisory ceo former economic adviser to president obama robert wolf is here good to see you. >> great to be here. >> thanks for coming up. >> -- the earnings, right back to my hometown. >> that is right you -- >> i started at solomon. >> running ubs a listening time president of ubs america. citigroup numbers weaker than expected the capital market with so troubled. >> exactly. >> i was listening to you guys, listen we had no high yield, issuance for the most part in fourth quarter zero in december. >> yeah volatility was crazy a lot of m&a corporate capital markets on the side looinlz not surprising revenues slow equalizing not surprising earnings per share do better because stock buy walks have all companies probably do better fourth quarter earnings per share we may not see tha

newmont buying goldcorp. i would see the day where this kind of merger would happen. wi-fi in find interesting about this is a comes on the heels of -- these are now two of the largest gold companies in the entire world. this was the bogus -- the biggest gold deal ever. reserves are declining for gold and it is a quality of gold story. if you don't have good gold to mine, it costs more. that is why companies are feeling pressured to merge at this time. anyway, i am looking at that. a $10 billion deal. an unbelievable transition for the company. the third company story we are watching his pg&e. the story for this is the company -- watching is pg&e. the story for this is the company -- potential liabilities of $30 billion or more. the question is where does it go now? the ceo basically quit. we've got to said move on with a new ceo. for more, i am joined by andy. what does this mean for the bond market? andy: a negative for the bonds. should behe bonds fully covered but you don't want to get in the way of a tec

and of course the dominican republic where we have a partnership with goldcorp and a world-class assetda as well. vonnie: gold futures today are up half a percent. it's a nice backdrop for operations and 2819 -- in 2019. where do you see prices going? what would be in a price for you? it is no secret that barrick faces some significant capital andirements to reestablish assures long-term viability. hasrandgold combination strong cash flow from two assets, one in bali and one in the drc. and that combination unlocks the equation.e component, the revenue component in the gold industry is the quality of the assets. the gold price is the consequence -- consequential component of that equation. we don't prescribe the gold price. as i said in the beginning, as you look at the global economy and the dynamics that we have witnessed through christmas and there is a lot of lodging. guy: it's good to see you down here. thank you for joining us. mark briscoe, the barrick ceo. check markets. speaking of gold it's up half a percent today. u.s.,re the majors in the repairing some of the losses, the d

clearly more to this story, because earlier this week, we learned that newmont mining is buying goldcorp which comes on top of rang gold's fairly recent merge were barrick gold when you see a spate of deals, you got to ask yourself who might be next. when you look at the smaller and mid tier gold miners, one of the best is kirkland lake gold, a company that operates in canada and australia. it has more than doubled since its shares began trading since august of 2017 more importantly, the company has given us a series of positive updates in recent months at the end of november, we learned about terrific results from the key mine in australia and last week got fabulous fourth quarter production numbers, much higher than expected those are some stellar fundamentals, and you've also got the possibility of more mma activity in the space. so let's take a closer look with tony mccooch, the president and ch ceo of lakeland gold welcome to "mad money. >> thank you nice to be here and get the opportunity to tell you lots of good things about kl gold. >> let's talk than what was the message that yo

down more than 9% since monday when the company announced a $10 billion deal to buy out canada's goldcorp. earlier today, i spoke with ceo gary goldberg. here's what he said about the company's stock performance. >> what we are in the process of doing is making sure that people understand the benefits. this is going to be the largest reserve base that anyone has in the industry we're going to have 18 operations, and we're going to do all the things that we've done over the past five or six years that's put newmont in a strong position to make sure we optimize those assets, bring projects on when they make sense, not just because we're trying to grow production but do it when it brings on the best value. >> by the way, also in that interview, they're planning for $1200 gold lower than where it is now anybody a buyer of gold stocks >> gold has never been my favorite first off, it's not a very useful metal second off, get all these trends right and what's going to happen to gold prices i generally stay away from miners unless there's a special story. the gold stocks just don't interest me. >

of derek randall, which investors appeared to like, this makes sense at the big level for newmont goldcorpalix: the of have thoughts on the kind of pricing we are seeing? when i saw the $10 billion number, i was amazed. that was a steady premium, versus a no deal premium. sean: i would suggest that here seniore newmont management basically in charge of the company. a premium would have been warranted in that type of transaction. 20%.premium, 0% to the key will be the collected assets. it will have to restructure that portfolio. that newmont, very competent management team. done a good job over the last few years. we would expect them to do a good job rationalizing the asset and allocating capital to the best opportunities within the portfolio. agnico eagleof speaking to alix steel earlier today. taylor: shares of lululemon are heading for their best day since august after the company boosted fourth-quarter sales and profit forecasts. kailey leinz is here with more. kailey: culinary results looking good. we will not get the official print until february 3, but they raised guidance, and of e

goldcorp was under attack. tahoe was under attack.sier route and said let's get together with a bigger company and get rid of these problems or very them for a while. alix: are you in the market to buy are are you going to wait it out -- or are you going to wait it out? rob: this is an excellent time to buy. thea lot of viewers, in last two years while gold has not outperformed the doubt and s&p 500, the gold equities have by a considerable margin. twice whatup almost the standard is. times standard and for. 70%,rms of performance and that is in the dow when the last two years. goldblum markets started in january 2016. it is delivering and people have not seen it yet. we are a third of the way there. alix: what is the price target? susan: i have -- rob: i have liked 2000 and beyond that 5000. alix: we did not get to 2000 and 2010. how do we get to it now? rob: we'll most got to it. if you look outside in the dollar, at 72 currencies, gold has been climbing. it is getting closer to its all-time high. we saw something like this back 200