lisa: if larry culp fails, is ge bankrupt?i think that will always be on someone's horizon and that is why they have the spreads. i do not see larry culp failing. he took the job with them -- with an eye toward success. i do not think it is on the table. brooke: it is a deleveraging situation and a restructuring process. that is not what larry culp did. you fill -- do you feel his skill set transfers over? deane: this question has been raised a number of times. ever had tohas he fix a balance sheet before? is to this magnitude, but he manic career of taking over underperforming businesses and turning them around. he is coming toward this with eyes wide open. it is not a liquidity challenge. there are plenty of assets and the need to time this out. david: they can pay their bills. what about selling for parts. how much is it worth? deane: this is a big debate. we are valuing the company on a sum of the parts basis for now. that is the right way to look at it now because you do not know what the earnings power of the combined en

but the stock reaction today shows us the greater detail -- comes from the greater detail that larry culp talked about. the stocks rose 18% in one day, breaking through the $10 barrier, now trading at about $10.30. take a look, ge heading toward its best month since 2009. you can see how bad things have been with all of the red in previous months, so doing pretty well. david: one thing that was buried there, was they settled with the justice department. i had forgotten that things fell out. emma: it was something investors had been concerned about. they agreed to settle with the doj on the investigation for $1.5 billion, something ge had already set in reserves. but what was interesting was the analysts at goldman sachs said they thought it might be double that, and actually we spoke to the ceo, larry culp, who said it was time to put that behind us. or maybe not. said he isally, he very pleased they settled with the doj and they can finally put that behind them. he said that there could be some skeletons in the closet and they were looking to see if any more of those existed, and of cour

larry culp gets on a call with concrete statements. we don't have a guidance yet.orking with. david: we had investors and analysts saying $10? i think if you broke the whole thing up it would be worth $10. a lot of it had to do with the remarks about the leverage. they were resuming their commitment to by 2020 getting it down. up for "bloomberg markets: the open" was jonathan exclusive conversation with pimco's head of asset allocation. equities prima go nowhere as the dollar treads water -- pretty much go nowhere as the dollar treads water. this is bloomberg. jonathan: from an ice cold new york city, i'm jonathan ferro. the countdown to the open starts now. ♪ jonathan: coming, chairman powell taking down any remaining rate hike expectations. the fed completing its which eat. go to bank executives running out of -- deutsche bank executives running out of time, set to be bracing for a merger. this thursday morning, good morning. 30 minutes away from the open. big day of gains on the s&p 500. another two basis points on the 10 year. some dollar weakness once again. e

>>'s successor lar -- his successor larry culp doubles down, considering selling nearly half the statehe has adopted the strategy of selling everything not nailed down. >> ge needs the cash to reduce $100 billion in liability, a number that dorks the company's cash flow. debt, issue is how much what recourse, what about the liabilities these lawsuits and government investigations, the unknown of how debt -- how much debt there actually is. ,> the company short on time with more than $18 million of debt due in 2020. will asset sales be enough for the conglomerate? >> ge is a tremendous institution. they have the ability to sell off pieces of business. alix: joining us now is a senior analyst. and a long-term holder of ge. and brooke sutherland, bloomberg opinion columnist. set the stage for the asset sales. think it is clear ge needs to raise cash. ,t has a mountain of liability some of which we know about, some of which we do not. said there aredy about 15 billion short of the reserve they need. that is likely a conservative estimate. we expect that to rise. what they laid out going to

we have a world class manager in larry culp looking at the sasses and fantastic businesses in healthere we think long term value is higher than what you're likely to see based on the current earnings of ge we think those two businesses are fantastic businesses deserving of significant premiums to the market we're not as concerned about ge ease liabilities and ge finance being significantly understated. >> bill, it's joe. first trading day of the year we agree to put some negative news surrounding apple and has to do with poeexposure outside of the u.s. are you trying to isolate the revenue to where it specifically to the u.s. and avoiding some of the troubles and the economic slow down we're seeing in international emerging markets in. >> no we're not intentionally trying to do that. apple's news were more company specific than about slowing the economies anywhere in the world. we're more than happy to get merging market exposure when we get the protection of developed country, govern, share holder rights and we think the long term growth will be positive for industries like the awe

here's what larry culp says.our balance sheet and strengthen our business, starting with power. to do this we're improving exkiegs, customer focus and how with set priorities. goes on to say we have more work to do, but i'm encouraged by the changes that we're making to strengthen ge and create value for customers and employees. they lay out the delercveraging they've gone through signed and completed $20 billion of industrial dispositions last year they reduced the dividend and that's to the tune of $4 billion a year baker hoou baker hughes ge selldown the revenue a little above the pressure on the stock leading into this from that huge analyst who makes the call >> he is negative. he is negative again he is negative again >> he was always negative. >> at the very bottom he -- >> he said, yeah >> even when he was less negative his price target was still six. >> then it moved back up to where he said it was zbroosh it was the pricing. >> he went negative again, though he said the move has been made recently went

for google as in g for general electric today reported a better than expected quarter the new ceo larry culpsmart fellow, he laid out a road map that could get g.e. off the do not resuscitate list and put it in the icu believe me, that's a major improvement. that's what happens when you take the debt down, which is what he is doing culp didn't talk about big numbers or outyears or make losses and projection. no he is more like hercules he is cleaning out the agean stables. he is tied dig up the justice department investigation subprime transgressions, thank heavens, accelerated the orders in health care to an astounding 7% figure it's going to sell a lot of that too. figured outthou get his arms around the long-term care headache, although you know there could always be another shoe to drop and putting the places on management scheme. when he downsizes power dramatically, we're going to think of g.e. as a nifty industrial get no wonder it rallied at 11%. of course, not every down and outer was able to make a comeback dow dupont got slammed today, plummeting 9%. and this charitable trust name

. >> thank you >> if i see larry culp, i'll see if he can walk and chew gum at the same time. do you agree with any of the professor's picks in terms of value? >> sure. nvidia, i want to make one more point here, guys just like it overshot to the upside for year after year for three years, there's a didn't chance, even though it's been cut that it overshoots to the downside. >> has it already overshot >> we don't know so the point is it went up 1,000% and now it's down 50% could it go down 70% i don't know i think it's really hard to attach some kind of funk evaluation metric just to a sign to what your view is about it. so i think that stocks like this will overshoot to the downside we saw it in names like square where sentiment just got overly, overly optimistic. >>> coming up, check out kb home rallying the company conference call is under way. we'll tell you what is driving the stock up. >>> plus, let's get a check on our cramer cam and there is jim talking to the incoming and outgoing ceos of constellation brand after th sckatto was a major buzz kill today. we'll bring yo

investors still wondering if ge's new ceo, larry culp, he has only been there since october, if he will be able to right the struggling areas of general electric. let's go to the trade front. the president says he thinks he can get a very big deal with china. his comments come smack in the middle of high stakes negotiations that are going on in the nation's capital. the u.s. has imposed a deadline to increase tariffs by the end of february if no trade deal is made, and is demanding that china do some pretty big things here. change their policies to protect intellectual property of u.s. companies doing business there. china trade czar and president trump are preparing to face one another in the next 30 minutes. this is a very big deal. edward lawrence is following every step of the way. he joins us live right now from the white house. you know, ed, this is likely just one of president trump's meetings with the chinese in the next few weeks. reporter: that's exactly right. that's what it sounds like. the president setting up saying he could possibly finalize a deal with the china trade de

. >> is this larry culp's first quarter as ceo >> was it pete pessimism he had an amazing call but what'sis price target? >> $6. >> he had such a tremendous call that now with it rallying so hard off that low, you kind of want to cash it in he doesn't want to get too cute so he says this. you cannot argue with them i'm still long the stock because i think we have reached that peak pessimism point in the market. >> all right still ahead, one trader made a massive bet on the markets this week that could pay out a cool $200 million we've got the details. >>> plus, let's get a check on the cramer cram there's jim. talking about the one fang stock he says is cheap right now much more "fast money" still ahead. so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life. you'this january 18th-24th, would like to say, "thank you." enjoy a free week of movies on us- from networks like epix, lifetime movie clu

chairman and ceo larry culp said to do this we are improving execution, customer focus and how we setriorities agross cre >> health care up 7% organic, what a gem of business they're getting the board together it's going to happen sooner than you thought. >> important on health care, on the conference call they had just told us they're going to be spending more on health care than we anticipated. >> that's why we're going to have a board of directors. >> i think we actually have this he talks about their debt ratio as well and the plan to significantly increase what they had been guiding towards in terms of how much they would sell of health care in a potential spin or split-off from the company. >> in industrial we are targeting a net debt to even our ratio of less than 2 1/2 times over the next few years. our health care, transportation and bhte is separations can provide sources of roughly $50 billion toward that goal our health care team continues to prepare for public company separation and that is progressing very well. we expect to monetize just up to just under 50% of our heal

. >> i think larry culp is doing a lot of different things.fact that people think that if you got 40 billion for aircraft leasing, somehow it doesn't move the needle steve, i think tusa is beginning to warm up i love the guy, but it is time for him to move up to 7 or 8 the 5 below upgrade say good one. i think 5 below is re wevery we run. lots of room, big runway, 5 below is loved by the tweens i think that's a great upgrade >> couple of deals to mention this morning, one also, jim, get to you on the lilly deal as well, get your thoughts. let me get these out of the way. you mentioned at the top, qep, worth getting to elliott, again, saying it wants to buy something and this case it has got the shares of this company almost up 40% right now. 875 a share, it is a 44% premium to where it was trading. they say it really isn't work agency a public company investment stock they believe continues to trade well below intrinsic value. they are significant in the permian, where they believe they have the right acreage in terms of scale, in terms of whe

the year, during the christmas massacre time, what happened is we were starting to fret about ge larry culple to have the stock rally on the talk about they can do some liquidating or liquefying divisions. steve tusa, tusa relatively silent about bashing ge. he reiterated $6 target, but i detect a little action from tusa i think he's going for a spare, not a strike i like what i hear >> ge will be one to watch today. to the opening bell and the s&p at the cnbc real time exchange at the big board, it is janus henderson investors celebrating the launch of the mortgage-backed securities etf over at the nasdaq, american finance trust, a reit focused on retail and commercial properties getting a little news on pcg after your reporting yesterday. >> it was interesting to take a look at shares of pg&e, of course, the utility, we spent a good amount of time talking about yesterday, carl, because they are down another 13%. they took a leg down yesterday this of course on reporting over the weekend from reuters and then "the new york times" and i added this part of this story in terms of trying to qu

but the company's power vertical still struggling with revenues falling about 25% chief executive larry culpaying the strategy is clear deleverage the balance sheet and strengthen the businesses starting with power and spoke to improving ge's credit rating and returning to a dividend that is in line with peers, no mention of a time line signs of progress being made in ge's turn around helping shares outperform up about 12%. but it's still got a ways to go, down about 40% in the past one year, wilfred. >> thank you very much for that. zwru jumping 12%. let's talk markets on the "closing bell" exchange today. rick, i'm going to start with you. talk us through the move in yields we have seentoday and the shape of the curve, how it's likely to play out from here. >> it is fascinatelining, wilf. so this morning we walk in at 8:30 eastern and claims jump 53,000 that's a big move. especially when you're starting with 200 just think about it in percentage terms that led to a very weak chicago pmi. weakest in two years we did have a nice jump in new home sales but i think that what's going on is the

was going to be the worst year, so they pressed their bet 2018, witness ge, still don't know what larry culp i guess you're going to see him. that's the rumor. >> really? >> you don't have that >> i e-mailed them and i said could you mind doing it with me instead of david this time i did not do that. i said he should come down but, david, i'm looking at things -- >> waiting on ge's earnings. >> i'm looking at things that i like i think microsoft is going to be quite good okay >> i want to get -- i want to get to something that wasn't that good this morning. >> oh, no. >> sorry >> come on, man. >> that's what i'm here for. that's what i like to do at&t let's talk a bit about it. the stock is down -- this after yesterday, of course, we heard from verizon, which the guidance there at verizon did not please investors. this morning at&t reports its fourth quarter earnings. let's go through some of the key metrics here the wireless business, 304,000 post paid smartphone editions, may have been below analyst estimates, but growing and growing strongly directv is not this, of course, the direct broa

but there is a lot of potential i think for investors to make a lot of money with ge if larry culp canconvince the street, convince his own employees that he's on the right track to resurrecting this company >> bill, you mentioned something about if they can persuade the credit agencies to preserve their credit rating, it seems to me they have to kind of prove they can service this level of debt and the cyclicality of the business is not going to trap them under all the debt. >> look. if they can pay down a hundred billion dollars of debt for this company is way, way too much you know, even steven tusa at jpmorgan has said, okay, i was the biggest bear on this company ever and now i'm saying yes $100 billion is too much debt for this company but i'm basically saying, okay all the worst is kind of over and there's some upside from here if they can pay down some of this debt, if they can get some credit upgrades, then they're going to be able to show the market they can handle the level of debt that they've had you know, they cut the dividend down to a penny. they should begin to generat