guy: let's look at the bloomberg "first word" news with kailey leinz. kailey: president trump has a face-to-face meeting with the chinese official today, a sign that trade deals are making progress. tariffs are set to more than double on chinese imports. they may be willing to stop it if talks continued. the european union has targets trustup -- caterpillar and samsonite luggage are among the u.s. products that would case the -- face retaliatory tariffs. brexit deal are not making much progress. there is speculation that if prime minister theresa may deal toring a new parliament next week, she would face a. call it venezuela's battle of the bands. there will be doing concerts on the border with colombia. one is sponsored by billionaire richard branson. on the other side, vans that support maduro. -- bands that support maduro. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am kailey leinz. this is bloomberg. vonnie: thank you for that. president trump and the ch

here's kailey leinz. kailey: it is the biggest global bank merger in more than a decade. b has agreed to buy suntrust -- bb&t has agreed to buy suntrust bank. will own 57%ders of the company. both banks have a big presence in the southeastern u.s.. -- southeastern u.s. i capitol hill, congresswoman exam 30 because he accord tatts -- congresswoman alexandria oh cause io cortez -- alexandria -cortez has introduced her green new deal. data science from optimist has found that starbucks ceo howard schultz gets twice as much support from democrats as republicans. the leading democratic hopefuls when worse than trump schultz is included. may isemised are theresa in brussels trying to change the brexit deal she reached with the european union last year. she wants the eu to change the most contentious part of the agreement, the irish backstop, but there are few signs the two will reach an agreement. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in

let's check on the bloomberg first word news with kailey leinz. kailey: sticking with the state of the union last night, and the address the president announced plans for his second summit with north korean leader kim jong-un. pres. trump: if i had not been elected president of the united states, we would right now, in my opinion, be in a major war with north korea. much work remains to be done, but my relationship with kim jong-un is a good one. will meetim and i again on february 27 and 28 in vietnam. kailey: since the first summit last june, little progress has been made to get north korea to give up nuclear weapon. meanwhile, president will meet with leaders from other nato countries in a summit in december. the meeting is set for london. president trump has been critical of nato and urged members to boost military spending. investor appetite for italian bonds show little signs of letting up from a record-breaking deal three weeks ago. it was priced $9.1 billion of bonds this year. orders surpassed $47 billion. global news 24 hours a day, on ai

here's kailey leinz. kailey: in paris, ubs will have wasay $5 billion after it ruled that the bank help to stash funds in undeclared accounts. reportedly will visit japan in may to see the new emperor. that comes from the japanese tv network nhk. the current emperor will abdicate and be replaced by his son. meanwhile, president trump may finally get to deliver on his campaign promise to address china's management of its currency, but that would mean a reversal of an almost decade-long economic policy. bloomberg has learned the u.s. has asked skynet to keep its currency stable as part of a new trade deal -- has asked china to keep its currency stable as part of a new trade deal. in the u.k., three conservative members of parliament are walking away from the party. they plan to join a new independent group formed by former labour lawmakers. it probably does not affect the math to get theresa may's brexit deal through parliament. global news 24 hours a day, on air and at tictoc on twitter, powered by more tha

guy: let's get an update on the bloomberg first word news with kailey leinz. kailey: european council president has a chance of a brexit deal fading. he said he is urging prime minister theresa may to request negotiations be prolonged. given the situation we are in , prime minister may still believes that she is able to avoid this. a delay wouldys not solve anything coming says it is within our grasp to get a on march 29.uled president trump says oil prices are getting too high. he told opec to relax and take it easy and a tweet, adding that the world cannot take a price hike. goldman sachs said crude could rise 12% in the near future. north korea's leader kim jong-un is hoping to get the u.s. to ease sanctions. the president said last night that will not happen. routes taken a lengthy through china to get to the summit. there is a dangerous -- in venezuela. president nicolas maduro used the military to bring humanitarian aid through columbia. four people were killed and more were injured. 24 hours a day on air and at tictoc on twitter, powered --powered by mor

tom: here is kailey leinz. e is playing down the threat of another shutdown and is likely to grudgingly signed the deal reached by capitol hill and use executive powers to fund additional measures. almostted he will get $23 billion for border security but did not explain how. president trump says he is open to letting the trade deadline lapse if the u.s. and china are close to a deal. march 1 was the date he was set to more than double tariffs. negotiations from both sides will meet in beijing this week. paper says the president will meet on friday. to me sort -- theresa may will wait until the last minute before putting her deal in parliament. claimed to have said may would force lawmakers to choose between her deal or potentially lengthy brexit date -- delays. a wire fox terrier named king was named best in show at the westminster kennel club last night. it was not considered an upset. terriers have won 47 of 112 times. global news 24 hours a day on air and @tictoc on twitter, powered by more than 2700 journal

here's kailey leinz. kailey: british prime minister theresa may is trying to escape the brexit impact. she has sent two of her ministers to brussels with proposed changes to the agreement to make it acceptable to the house of commons. that follows a meeting with european commission president jean-claude juncker that was described as constructive. still, a british official says don't expect a new deal by next week. a u.s. coast guard officer will appear in court today after being accused in a terror plot aimed at high-profile democrats and journalists. he had stockpiled weapons and a washington suburb and plotted to kill house speaker nancy pelosi and a handful of democrat senators putting elizabeth warren, kamala harris, and cory booker. house democrats will fall a resolution tomorrow trying to block president trump's a resolution- file tomorrow trying to block president trump's emergency declaration to build a border wall. however, there is not enough support to override a presidential veto. global news 2

i'm kailey leinz. guy: thank you.tting comment speaking in parliament addressing the issue of brexit, talking about the bank is an integral part of the withdrawal agreement. planningg allen is not for border checks. germans are starting to get unnerved by the lack of planning of potential policing on the border. let's get to the latest on brexit as we continue our countdown. we are joined by stuart. there is a rumor mill churning iny and was minister -- away westminster that the british believe we are getting close to a breakthrough to a backstop, despite what we are hearing. what would that mean in terms of a timeline. stewart: what we heard is that the government will not allow the bringing a vote on a deal to parliament next week. , we don't doe case prime minister may and officials are doing meetings with brussels this week, and the attorney general is set to give a speech this week. we expect to hear the language coming out that what has been proposed, but it was interesting that the government is not pulling out

i am kailey leinz. this is bloomberg.ine: thank you so much. nissan motor reported its first set of earnings since it's former chairman was arrested. and took $83 million charge forecasted earnings to fall to the lowest level in six years. joining us outside of nissan headquarters is stephen engle's. how bad are the results? stephen: they were pretty bad. missre expecting them to the consensus estimate from analysts, and they certainly did . they ratcheted down their fiscal year forecast to the lowest level in six years. this is on the aftermath of the carlos ghosn sag net -- sag us. --aga.a s they are seeing slowing sales in china and the united states. unit sales in the united states in january fell 19%. he might need a lot more patience from top executives and investors as they go through a bit of a slump in the united states. they want to boost profitability and not necessarily rely on top line squeezing incentives they have been doing in the united states. against the backs drop -- backdrop of all of this is the carl

i am kailey leinz. this is bloomberg. guy: thank you very much indeed. in theng of a selloff italian bond market of the last few minutes. the italian treasury announced a syndicated thirty-year issuance, issuing thirty-year bonds. we have seen a spread over bunds swiping out six or seven basis points. the market not taking this particularly well, a selloff in italy. ♪ ♪ vonnie: live from new york, i am vonnie quinn. guy: from london, i am guy johnson. let's look at exactly what is happening in the markets. abigail: we have the major averages higher with some nuances. the nasdaq is leading the way with half a percent, then as -- the dow up 2/10 of 1%. apple up 1.5% for a fifth in a row. investors are buying the less bad quarter. the most valuable company ahead of amazon and microsoft, health -- alphabet beat estimates. pay attention to since we have haven bonds rallying. it may suggest we could see some volatility. over the last month or so, let's check out a chart of the lows. some buy the dippers and then , up 19.3% over the last month or so. the moment

here's kailey leinz. : president trump says he walked out on his second summit with north korea's kim jong-un. the problem, the two couldn't agree on a deal to lift sanctions in exchange for north korea giving up much of its nuclear weapons program. the president spoke before leaving hanoi. pres. trump: our relationship is very strong, but at this time we had some options, and at this time we decided not to do any of the options, and we will see where that goes, but it was a very interesting two days, and i think actually it was a very productive two days, but sometimes you have to walk, and this was just one of those times. kailey: president trump says the u.s. presented kim is evidence of additional secret nuclear sites. he says that surprised the north koreans. the u.s. economy slowed down less than expected in the fourth quarter. of rose at an annual rate 2.6%, beating estimates. consumer spending did slow down, but it was still in solid shape. hedge fund billionaire ray dalio says there's less chance

i am kailey leinz. this is bloomberg. vonnie: thank you. businessweek has a report out today that schatz light on hauwei. fbi schatzker followed an investigation into huawei. he is here to tell us all about it. it is a phenomenal story. we want to hear about the sting operation. we want to know how this start up company knew there was something odd, that there was perhaps a chinese company trying to discover their secrets. erik: that is a fantastic question. it is best answered by the ceo and founder of this company. i had the chance to talk to him about his company's interactions with wally. he explains -- with hauwei. the explains what happened. >> in sending some of our samples for nondestructive sampling as we do with other customers, we received back on the second round of samples that it had been damaged, in the sense that a large portion of the glass was missing and broken. after seeing this portion of the class that was missing, we realized this is not really something that could be done in shipping, but more so attempted theft of o

i'm kailey leinz. this is bloomberg. vonnie: thank you.dent trump and china's president may not reach a deal before the 90 day truce expires. we are joins by james buchanan, senior globalist. -- james mccann. , a senior globalist. structural and fundamental issues. d.c. any way forward? ofes: that is right in terms the difficulty of resolving this trade conflict. we have structural issues around industrial policy, requirements for joint ventures. it will be a big asked to solve these issues in a short time. we are hopeful this turned down in aggression and temporary truce is extended and that provides more room to explore the issues. finding a large-scale trade agreement will remain very challenging and not within the scope. vonnie: it seems to me the preponderance is that large companies pay the tax, customers of large companies or large companies avoid the tax. the matter what happens if there is more trade war, it hits. james: this is essentially a tax and can be split and taken by u.s. corporate or international corporate or go to the

i'm kailey leinz. this is bloomberg. vonnie: thank you. we speak with the ceo of spirit airlines, ted christie. is he concerned about the prospect of another shutdown? this is bloomberg. ♪ guy: live from london, i'm guy johnson. vonnie: live from new york, i'm vonnie quinn. -- abigailttle doolittle is here. >> major averages slightly higher. nasdaq up 3%. the doubt now higher. nasdaq had been out .6%. not seen the risk rally we are seeing in europe with the dax higher and other indexes. look at the shanghai composite in china come up 1.4%, the best day in three weeks after being closed for the lunar new year. small moves for the u.s.. looking at the 10 year yield, perhaps the us will follow europe and asia, up and bond selling off and pulling back. that could be an indication stocks might trade higher. hoping the nasdaq outperform to the major averages, let's look at movers including electronic arts, up 7% after massive volatility. they were down 13% and then up 21% combined tween thursday and friday. -- between thursday and friday. aipac

here's kailey leinz. kailey: white house press secretary sarah huckabee sanders says president trump does not want to see another government shutdown, but he is not willing to back away from his plan to build a border waffled speaking to reporters at the white house today, sanders was asked whether the president will sign the border security deal. sarah: the president isn't fully happy, as he said yesterday, with everything that is in the legislation, but there are positive pieces of it. one way or the other, and one thing you can be sure of, is that at the end of the data president is going to build a wall. he said he would get it done and he will. kailey: bloomberg has learned put offing is until thursday. in the u.k., theresa may the flight to questions about her chief questions about her chief negotiator. shthe u.s. fda is on the verge of approving a breakthrough depression drug. panel outside experts recommended the fda approved the johnson & johnson drug, a fast acting antidepressant administered thr

guy: kailey leinz bringing us as a stock of the hour. a global battle of the chart, that is next.berg. ♪ ♪ guy: time now for the global battle of the charts. of course you can find all of these charts and all the other ones we put up on bloomberg tv by running gtv . kicking things off today, eric balchunas of bloomberg intelligence. corporations spend their money has been a very hot topic right now and even a political topic at this point. we decided to look at whether buybacks, which is one way that corporations spend their money, is doing better than whether they put their money back into the company in terms of capital expenditures. you would think that buybacks are doing better, but that is not true. here we have three indexes. the white line is the nasdaq cap ex index. these are companies doing the most innovation, and the two below are the buyback indices with the s&p and the nasdaq. it goes against the grain of the capex is doing better. and what is interesting from the etf point of view, there is no etf, yet there is three buyback etf's.- buyback an unusual hole in the

kailey leinz has more. what did they do?there are a couple factors leading to this six quarter of revenue growth. $.53 a share versus the analyst estimate at $.37, so 18% profit growth her for avis. empire that was because of declining fleet cost. and that in part is due to a higher resale value for the cars. but the other key part of this is pricing power, prices rising more than 2% this quarter in the americas and people are paying more at the counter, showing that the supply and demand imbalances we have seen in the rental car market is evening out. they are not having to discount as much. that is also good for hurts -- hertz. they are also up the better part of 10% today. guy: what is the outlook going forward, is a positive? >> it is pretty positive, not overly positive, but guidance is roughly in line with what the analysts expected and revenue growth should be 2% this year. the fourth quarter will be a little bit weaker because of the effects of some of the partial government shutdown. government travel was reduced in

kailey leinz is here to explain the reversal. is it not just giving back a little of the gains? ey: some of it probably is to do with the larger selloff, but analysts are saying the guidance that initially had a popular reaction maybe not so fast. you can see what shares did overnight, and obviously what they are doing in this session now. earnings-per-share came in about a cent higher-than-expected. going forward, the company said revenue in all of 2019 be somewhere between 8% and 10%, and that any next five years, they are targeting mid-teen revenue growth. there was a lot of hope about revenue growth re-acceleration. also, the things the company is doing to address some recent criticism by investors, which is one of their top 10 shareholders , under pressure recently to do things like i just their margins come in now forecasting 30% to 35% going forward. they also added three new board members that sql and had asked for with corporate governance changes as well. all of those things sound really good. you had the good reaction post market yesterday. then analysts had time to ki

i'm kailey leinz. this is bloomberg. david? david: thank you.ad high hopes for his a second summit with kim jong-un, but as just reported, he walked away without an agreement. president trump: basically, they wanted the sanctions lifted in their entirety, and we couldn't do that. ke a were willing to denu large portion of the areas we wanted, but we could not give up all of the sanctions. so we will continue to work. but we had to walk away from that decision. -- suggestion. david: for more perspective, we welcome now mike mullen, former chairman of the joint chiefs of staff. he comes to us from washington. good to have the with us. the obvious question is, was the president right to walk away? they were willing to forgo tests and to denuclearize part of their operation, so was he right to walk away? adm. mullen: i think he was. what gets lost since this occurred is the concern that a lot of people had, that the president would give away a lot. that we would not get much for some version of a deal. clearly, that is not the case. he went in with

kailey leinz has more.oing a good job in his first year. >> they are beating expectations on earnings, margins, you name it, especially comp sales. you can see the chart, this is the sixth quarter in a row that comp sales have grown. this quarter was noteworthy on where the growth came from, they saw an increase in customers. traffic grew 2% in this quarter, that is a good sign and it is being driven by their efforts and delivery, as well as digital, which grew 66% this quarter, now 13% of the revenue overall. guy: page funds -- hedge funds have been paying attention. what will we learn? >> people will pay attention to the new ceo. he is still the second largest holder. and you also have renaissance capital in hedge funds. so when we get the filings, we will look for any color in hedge fund positioning or changes on chipotle. vonnie: kailey leinz, thank you. and that stock is one of the better performers today. markets in general are lower. the nasdaq is down 1.67%. "balance of power" is next. this is bloom

waiver is trading up by 13% and kailey leinz has the details. ust be a happy holder today, the shares are trading at a record and it is because they beat expectations in the fourth quarter and did not lose as much money as analysts expected. loss per share at $1.12, analysts thought it would be around $1.30 a share, so the first time in six quarters that they have beat on that metric. revenue of about $2 billion in the quarter, above expectations. four year revenue at $6.8 billion. a $.9g going forward, $8.9 billion-- dollars. and there is going to be a 4% increase year-over-year. and another metric increasing by 40%, 30% on their year-to-year basis, active customers, 15.2 million active customers right now. and interestingly, a lot of customers are coming from mobile. it is becoming more important for the company. it made up about 37% of sales total last quarter. a a lot of positive metrics coming for them in the fourth quarter. guy: the top line is moving in the right direction, but the bottom line is an issue. is there concern about the abilit

kailey leinz, what is going on? kailey: this is their first earnings beat in three years.r-share at four cents, the average analyst was expecting a loss of $.14, so a big surprise to the upside. and it did well on gross margins , 46 pointer percent -- 46 pointer percent. -- 46.3%. hasbro missed in the fourth quarter, had its fifth consecutive quarter of revenue declines. this, as you can see here on the bloomberg terminal, a lot has to do with the bankruptcy of toys "r" us. both have been under pressure since that happened. i should say that both companies did say they expect the effects of this to dissipate going forward in 2019, but it appears from this quarter that mattel is having an easier job than hasbro. vonnie: both companies were hit by toys "r" us, one bouncing back better than the other. kailey: when you look at mattel, their brand did well. with hasbro, they saw declined in almost every single brand a segment. and their franchise brands are all down, so that is a big divergence, where the actual toys are. i should point out that mattel will be giving guidance h

i'm kailey leinz. this is "bloomberg." thank you. time now for a bloomberg exclusive.ve been speaking with the ceo of germany's merck. we kicked off talking about semiconductors. the semiconductor market shows, in contrast to biotech, shows more cyclicality and we had growth. firstrameter that matters semiconductors, a million square inch of waivers. fers. for this year, the forecast has 5% growth and% to it is difficult to predict because this depends on the economy. some people are forecasting there will be a recession. is, semiconductors will be affected. what matters to us, mid-and long-term, it is critical that we need more microchips. the digitalization of the world is progressing at the same speed. we are certain that the fundamental demand for new semiconductor solutions is high. guy: to pick up on that recession call, what do you see? some people say the recession is coming. do you see a recession? >> i do not have a better crystal ball then you. we are a company that is 70% family owned. people challenge us because they think we are a conglomerate. we have di

kailey leinz is here with more. why such a move?e premium that they are paying for the company, the $4.8 billion price tag, this is more than double where the shares closed on friday and 138% premium, when you look at the 20 day average of the share price. it is a lofty valuation, but that is not unusual in biotech. the premiums paid summer between 50% over five years, but this has gone of this year, the usual premium is about 68.5%, so this is far above those averages. why pay so much? it is a gene therapy company. ne therapy is complex and treatments can go way up. one treatment he will be getting in the deal is like serna, which treats eye disease, inherited blindness. that treatment alone is $425,000 for one eye. these are very pricey treatments. another thing in the pipeline that roche will be getting is an experimental treatment for hemophilia a, an area he was getting into as they expand outside the cancer business. roche could begetting a lot from this deal. guy: is roche done? >> it does not seem like it. the ceo said that

kailey leinz is here with more details.k us through why this stock is down. >> disappointing guidance. larry merlot said 2019 is going to be a transition year for cbs judging by the guidance. going to be a rough year. earnings per share between six dollars and $.68 to $6.88. missed wall street expectations and downgraded from wells fargo. guy, part of the issue has to do with three years ago. the $12.9 billion deal which yields. take in the second quarter so now it is approximately half of what they pay for this company that they had to write down. the issue is nursing homes are dealing with declining occupancy rates and pressures resulting in a lot of them to go bankrupt. that is having less customers to serve so an issue with that does not necessarily bode well for a bigger deal, that $68 billion acquisition of cbs in general. the deal aiming to get them into the health insurance phase creating a more integrated health care company. that when you could argue is more and dishes. the fact this deal has gone poorly does not

kailey leinz is here with more. today. price action the reported results this morning. pretty good.share, higher than the estimates. gross margins beating expectations at 45%. then the earnings call started. and you can see in the bloomberg terminal, this is sharing with -- showing what the shares did today. they were disappointing on afford guidance. first-quarter revenue was supposed to be flat or slightly downward, they thought it would go up 2% in the quarter. shares back up again and investors seem to be focusing on the positives, one of which is the inventory drawdown. inventories down 12% this quarter, now at $1 billion. the lowest it has been in two years. inventory is key to the turnaround strategy, they are focusing on products that sell better, so less discounting and that results in their profit beat this quarter, so they are being rewarded for that and less so punished for their guidance. guy: north american sales have been sluggish. did the narrative change this quarter? kailey: no, north american sales were down 6% and contrast that with international sales, which wer

vonnie: kailey leinz with our stock of the hour. nuvasive, we will keep an eye on that.ming up on global battle the charts, that is next. this is bloomberg. ♪ guy: it is time for our global battle of the charts. you can find these on your bloomberg. let's kick things off with michael. are lot of investors' eyes focused on the earnings outlook in the u.s. for u.s. corporations in 2019, now that the effects of last year's test cuts have worn off. and there are methodologies to track earnings growth, but they are showing the same story, that is that the prospects for 2019 are deteriorating rapidly. in september, the s&p 500 was at a record, analysts were expecting about 11.5% growth. now they are looking at half of that, less than 5.4%. this chart shows the story. the straight line up is when the estimates started reflecting 2019 rather than 2018. but then you can see how it is just decaying consistently since then. analysts looking for list the $160 in earnings per share versus $172 at, the beginning of the year. so investors hoping for this growth prediction to stabilize.

i'm kailey leinz. this is bloomberg. vonnie: thank you. coming up, congress gears up for a critical vote on a border security deal aimed at avoiding another partial shutdown. will president trump sign it? the latest from washington. and later this hour, we hear from coke ceo james quincy's shares tumble, today one of the worst performers in the s&p 500. this is bloomberg. ♪ guy: live from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. u.s. retail sales fell in december from the previous months in the biggest drop since 2009. even more confusing, there was a pullback in a measure based largely on internet sales. it is all causing analysts to question the data. we heard from larry kudlow of the administration on the matter. >> first of all, you had 10 days of government shutdown. i regret that is a -- i regard that as a temporary glitch. secondary, shoppers were very late, according to the national retail federation. shoppers came in very late. i wouldn't be surprised if january was revised up because of that. vonnie: that