occidental is all in.ases the cash portion for anadarko to 70% and eggs and agreement to sell $8.8 billion in assets to total. it is all or nothing for the ceo. betting on bitcoin. ability will be offering cryptocurrency trading to customers within a few weeks. let's get a quick check on the markets. a sea of red. the s&p 500 falling the most it's march. every sector is losing ground at the moment. we are talking about tech companies with exposure to china, not to mention machinery companies leading the decline. volatility also surging with the vix seeing the biggest increase this year. it is all to do with those tariff threats, having a major impact on the markets. also seeing the chinese yuan continue to fall against the u.s. dollar, after plunging the most since the shock evaluation in 2015. we are now seeing volatility in currency markets jumping again broadly speaking. emerging-market currencies under pressure. we also had news that the istanbul elections will be renewed in turkey. that set the lira s

you used to go long occidental. do you like the guild they are left with -- deal they are left with? nice to see you. i don't love the deal. pitynk they are paying a -- pretty big premium. love the permian, i think a great job is being done around structuring, but overall, it is a lot of debt, a lot of cash out doesn't leaveit occidental in a position if you have a down cycle in the commodity to be defensive and that is a big change. it hasn't been a big dividend player in a long time. in the stock price, chevron does the buyback, they walk away in their stock is up. occidental's been hammered. is this idiosyncratic? >> it depends on the asset. mike worth is not ruling out m&a but he says they will not be stupid about it, which is what investors like to hear. this is a huge premium for a deal. this was a fight occidental text. they went after anadarko frequently and often and continued to raise the cash portion to make this as palatable to anadarko. start thesene will kinds of bidding wars going forward is unusual a

this was a fight occidental picked. they went after anadarko frequently and often and continued to raise the cash portion to make this as palatable to anadarko. whether anyone will start these kinds of bidding wars going forward is unusual and we haven't seen much of it in the energy industry on the big oil side. alix: and we have been waiting. endeavor, pioneer said they are not for sale. are you playing all of the m&a in the permian? leslie: it is tough to play but the next part of the cycle is taking up the costs. we have been bringing down costs at the wellhead level, making our factory in united states more defensive, but we have too many companies with too much overhead. in my mind, m&a makes sense and i plan to see it. who is the best candidate? i don't have insight into that but i do think this is going to be a 2019, 2020 story. alix: reducing leverage and reducing costs and reducing overhead, how do you play those themes? leslie: as you know, we are typically on the credit side of this and we are playing in som

shale since both companies have a holdings in the permian basis now occidental oxy as they call it and history reportedly may seek to sale and darko stake in pipeline affiliated western mainstream midstream partners as part of the ten billion dollars plan asset sales that would be part of the anadarko deal also buffett's commitment to invest ten billion dollars in oxy to finance to end a darker deal is a classic move by buffett highly favorable to him and costly to the company now the structure of the deal is actually very similar to a profitable transactions that buffett's company did with goldman sachs and during the two thousand and eight financial crisis now it's very rare for buffett to participate in any bidding war for any company that's just not his style the last time he did do was in twenty sixteen supporting quicken loans that tried on successfully to buy yahoo internet access in another reason that buffett company is interested in getting involved in his deal well kristie is that berkshire has actually relatively limited investment in oil and gas stocks and energy is actual

how much further does occidental have to go? >> occidental went pretty far. it was 50-50.ight to bypass stockholder approval. at the same time, they are bringing in totality -- totale. no plane lngd market. totale is a big player in that, so it makes sense. the ceo of occidental has been going after this for some 50 months. things are getting intense. guy: i think she is surprised that they are still not willing to say we will back your deal at that point, the talk is -- at the clock is ticking on chevron. annmarie: they will have four days if they decide to go with occidental. guy: so they are playing for time at this point he or the next question has to be why is everyone so worried about occidental shareholders? they are against this deal, which is amazing when you consider how far the ceo has taken it. annmarie: and look at occidental shares and chevron shares. people are worried about we are throwing all this money. she had $10 million from warren buffett. she now has totale on her side pichai can get this through without shareholder approval. tothis point, she is abl

anadarko and rival chevron now occidental has a big name with deep pockets on their side should they decide to top chevrons thirty three billion dollars bid by a greater margin occidental is successful and willing anadarko berkshire will invest the ten billion dollars into one hundred thousand new preferred shares of oxy stock the annual dividend would be eight percent the wall street journal reports that a successful bid by occidental would grant berkshire the opportunity to buy up to eighty million occidental at sixty two dollars and fifty cents a share today occidental stock fell before rise rallying above fifty nine dollars by early afternoon and i darko has been trying to hire over the past week and was pushing towards seventy three dollars in afternoon trading. the oil markets are clearly having a huge focus right now and we anticipate a higher consumption in the house summer driving months u.s. sanctions on iran oil planned for may on top of the earlier ban in venezuelan crude are driving up prices for scarce or barrels but consumers are resisting the higher prices and holding

anadarko and rival chevron now occidental has a big name with deep pockets on their side should they decide to top chevrons thirty three billion dollars bid by a greater margin occidental is successful and willing and darko berkshire will invest the ten billion dollars into one hundred thousand new preferred shares of oxy stock the annual dividend would be eight percent the wall street journal reports that a successful bid by occidental would grant berkshire the opportunity to buy up to eighty million occidental at sixty two dollars and fifty cents a share today occidental stock fell before rise rallying above fifty nine dollars by early afternoon and i darko her. been trying to hire over the past week and was pushing for seventy three dollars in afternoon trading. the oil markets are clearly having a huge focus right now and we anticipate a higher consumption in the house summer driving months.

we had a deal that occidental has agreed with total in france so that post-merger, occidental would getassets quickly. secondly, they put forward to anadarko revised terms. more cash on the table. 78% cash were previously it was 50/50 cash-stock split. anadarko is leading the s&p 500 higher. the general view is this will happen now. the question is once the announcement comes out, anadarko will say we are embracing this offer, chevron has four days to come back with a revised offer. they could do that or they could simply walk. they will pocket a $1 million fee if they decide walk away from the faith. guy: say the ceo decides to walk away. are there other things on the roster that could be taken down at this point by chevron? this is a land grab in the permian. what else is on deck? simon: there are several companies. other companies that have been speculated about include pioneer , these areparsley less well-known than anadarko, they are certainly smaller. , just as they could buy anadarko easily. there are other alternatives. regardless of what happens with anadarko, we could be seein

apparently buffett was willing to give occidental as much as $20 billion at that 8% rate. well, who could blame him? he's getting incredibly favorable terms. 8% is much more than it would cost occi if they went to a bank and asked for a loan, to say nothing of going to an investment bank that sells bonds like tesla did but it turns out that vicky really loves the warren buffett impra mader if you're a shareholder, you should hate this deal. occidental stock pays a very high dividend that yields 5.4% that looks less attractive when you realize buffett's getting 8% and he's getting it above you in the capital structure. i find it galling. i recognize there was a need for speed, buffett offered instant money which occidental needed. they're competing with chevron, which is a larger company with deeper pockets but exigent circumstances can't possibly justify this move. if occi needs to borrow at 8% maybe it's not worth doing think about it like this if the price of oil does take a header, occidental will be on the hook for a giant shrug of cash and they'll have a much harder t

occidental has raised the offer for $76 per share.ve also offered a cash portion which has been raised. the eliminated the need for a shareholder vote. also, occidental is willing to pay the $1 billion breakup fee from chevron. anadarko's board coming out and saying the occidental offer is superior. they are intending to terminate the chevron merger. of course, we still have about four days to go to hear from chevron if they make any move within the next four days. -- anadarkoidental liking occidental's offer of $76 per share, 22% stop. we will have much more coming up on this story and more. anadarko right now saying they will pay chevron the $1 billion fee if it enters into occidental. coming up, to cut or not to cut. global easing could start with the rba decision in the coming hours. emp capital shane oliver tells us why ozzie rates could go to the lowest on record. this is bloomberg. ♪ shery: i am shery and in new york. paul: i am paul allen in sydney. you are watching daybreak australia. trading in japan reopens after the longes

also the idea that this is a lot for occidental to spend. heard some concern from shareholders that this is a lot to spend that would put the company at risk, but clearly with the higher cash component, occi is saying we know what we are doing, and we don't need a shareholder vote. for anadarko, that gets rid of the concern that occi shareholders would shut it down, but i don't think we are hearing from investors who think this may be a little too much for them to bite off right now. guy: in terms of the importance, how important is it that we have the laying off of the africa asset, particularly the mozambique asset, to total? it will be fascinating to see the strategy unfold. you kind of wonder what is next. how important is that aspect here? rachel: i think it is really important. a lot of people thought it was going to take a while to line up some sort of asset sale like this, but to already say we know exactly where a $20 billion of these asset sales are going, that says a lot to the overall deal. if they do want to take to $15 billion

so it held talks about selling itself to occidental that's my understanding.ey were talking to more than two parties for that matter. i wouldn't know that but they have decided that they were willing to sell, i'm sure subject to price, and they accepted an offer and occidental thought they had a better offer and that's apparently where things still stand but i don't know all the details >> part of the idea thiend had been that, well, would occidental be able to get approval from its shareholders because its stock was under pressure some of the shareholders obviously didn't like the deal by using your cash instead of issuing as much stock as they had anticipated originally, that will keep them from having to go to their shareholders to ask permission for this. as they're saying in their own letter, that certainly increases the certainty of this deal taking place and removes some of that uncertainty >> yeah. >> i would also think that the shareholder -- in occidental we are bullish on oil over the years. you're probably bullish on the permian basin because it's

it is interesting to keep in mind that the occidental ceo said they had made three offers in the pastnadarko has said no to. they feel they would be a ticket -- better fit for the bigger giant, financially and in terms of cash investors are getting as the occidental offer is superior. >> warren buffett, the oil occidental,, chevron, anadarko, berkshire hathaway investing in the occidental side, i thought they had the financing lined up and they told us they did, is this cold water on that >> we thought this was in the bag, this will be more expensive. there is a surprise but i think to the extent the anadarko board is considering whether the oxen isbid -- occidental bid superior to chevron will push them to say we do need to move forward with something with occidental. chevron will have four days to counteroffer. bayer's board is standing by the ceo after an unprecedented shareholder rebuke, 65% of investors voted to remove them over a takeover of monsanto which has given rise to a wave of u.s. lawsuits and demanded answers over the company's market cap. >> it was a rocky meeting that

occidental has no involvement in that market.erestingly, it does pit chevron versus total now that total is involved. it is getting pretty tense, this bid for anadarko. story -- whichhe stocks are going to get hit hardest from this trade spat? >> it is going to be a rocky start today for trading for several sectors of luxury -- the luxury sector is one. companies rely on china for the biggest chunk of their earnings. other sectors as well. and automakers, daimler, bmw, also part makers. the semiconductor industry. lower chip stock premarket as well as -- so a lot of tension on all these sectors that have already been hit the past months from trade jitters. let's see what happens today. a lot to watch, obviously. this trade war is affecting everything. what is the story with telenor? merger have called it a of equals. in talks toaxiata merge operations. this could lead to them being one of the top five mobile infrastructure companies and create the largest mobile operator in malaysia. this is still early in the about $5but telenor

occidental is upping its cash bid for anadarko.this certainly puts ox -- puts occi it a higher position. they are able to secure some of the sale of some of the assets them over the weekend. at this point, it certainly is leaning itself much more towards occi winning the bid. we will have to wait to see if there is a response from chevron in the near term. david: clearly occidental likes this deal, but the market doesn't seem to agree. we've seen the price of the stock go down and down. how much does that take care of the leverage problem? leo: certainly a lot of it is leverage. if you look at opcc -- if you look at occi prior to a acquisition of anadarko, it looks closer to 1.8 times debt to even. i think the market had concerns that some of the anadarko assets weren't a very good fit for o cci. certainly the agree with that as they are selling the african assets to total. assuming that sale is to a pretty significant increase in leverage from what they were. alix: if you come inside the bloomberg, you can see occi, anadarko and c

with the news overnight being that occidental is changing the structure of the deal., but 78% in cash and 22% in stock. up to noithis point it was a 50 split. we talked to him about what that means with the changes and if his support of the deal would change if the price went up. >> we committed the $10 billion 100% we do not have any control, nor did we want any control, over what occidental did with our $10 billion. there is nothing in our deal that provides that they have to come back to us and request permission really to do anything it is a remarkable deal, but that's the way we do them. and in that respect. and they -- so they got our $10 billion if and when they close a deal with anadarko >> buffett also confirmed what david faber reported last week, that he would have signed this deal to be up to $20 billion in support, double the $10 billion he ended up laying down on that. he said several times both he and charlie munger did, they're doing this deal because they like the permian basin and the future for oil back over to you. >> i thought it was interesting,

the occidental side of the equation.ht they had the financing lined up and they told us they had the financing lined up. does this poor some cold water on that? >> that is what everyone was saying. we thought this was in the bag, this will be more expensive. there is a little bit of surprise there, but to the extent that the anadarko board is considering whether occidental bid is superior to chevron's, will push them to say ok, we do need to move forward with something with occidental. chevron will have four days to come back and counteroffer. >> bayer's board is standing by the ceo after an unprecedented shareholder rebuke. 65% of investors voted to remove them over a takeover of monsanto which has given rise to a wave of u.s. lawsuits. they also demanded answers over the company's market cap, which has swooned by some 35 billion euros since the monsanto deal completed last june. >> it was a rocky board meeting that went on for 13 hours, and investors eventually voted against the ceo. that is pretty unprecedented here i

paul: occidental agreed to sell anadarko assets to france's total.covers nigeria, mozambique and south africa and will be worth almost $9 billion. it will only go ahead if occidental's long-running effort anadarko goes through. they were in a bidding war with chevron for the top reduce her in the permian basin. north korea may have conducted its first ballistic missile launch as a -- since 2014 as a challenge. this is appears -- this is what appears to be the firing of a short-range missile. chief asia correspondent stephen engle is watching this and it seems kim jong-un again wants attention. this was almost predictable given or following kim being left at the altar by donald trump in hanoi in the second nuclear summit that didn't give any progress. since then kim jong-un has blessed to the white house as exhibiting bad faith -- blasted the white house as exhibiting that faith. that is what he said to vladimir putin recently. you could have predicted this. it is a direct challenge to trump's bottom line here at jim has expressed frustration -- botto

the backing gives occidental more leverage to fight chevron which is much larger.ts int texas and new mexico which is what both occidental andheon want. shares of anadarko and occidental fell today while chevron and berkshire were trading hire. >>> president trump and democratic leaders today to spend trillions on picking our nation's crumbling infrastructure. house speaker nancy pelosi said their meeting at the white house was productive and senate minority leader chuck schumer said both parties want to get something done. >> we agreed that for 25 years thatkind of big, bold bill we could pass would make america a better place and not just the one year or twoear. we agreed on a number which was very, ve good. fo trillio infrastructure. originally, we'd startedle a li lower and even the president was eager to push it up to $2 trillion and that is a very good thing. >> although few details were offered, schumer did say that another mting will take place in just a few weeks to talk about howr to pay e plant. >>> now to housing. a new batch of data today giving i insi

the anadarko board has decided that they will have a conversation with occidental about their bid.ll keep the deal with chevron, but it might be that the other bid is more attractive. what is going on? >> i think the $1 billion breakup fee they are talking about with chevron might also be affecting them there. it is interesting to keep in mind that the occidental ceo said they had made three offers in the past which anadarko has just said no to. it seems like they would be a better fit with the bigger giant that is coming with this offer, even though financially and in terms of cash investors are getting, the occidental offer is superior. >> warren buffett throwing a curveball, looking into that oil merger fight, occidental, chevron, anadarko, berkshire hathaway investing $10 billion in the occidental side of the equation. i thought they had the financing lined up and they told us they had the financing lined up. does this pour some cold water on that? >> that is what everyone was saying. we thought this was in the bag, this will be more expensive. there is a little bit of surprise

occidental is adding more sugar to its bid to buy anadarko.will check out what will go into this offering when we come back. this is bloomberg. ♪ this is daybreak asia. i am paul allen. shery: i am shery and. occidental has delivered a revised proposal to battle -- to buy anadarko as it battles with chevron. it has increased the cash portion of its bid and promised to pay a breakup fee with chevron. su keenan has the details. they really want this access to the permian basin. su: it seems that way. this is what wall street calls a love triangle. by updating the latest terms or revised proposal, they really effectively sidelined chevron's bid and puts chevron in the position of having to come back if they can with a sweetened deal. all that is going on with occidental in this bidding war, they are trying to win control of anadarko and become the leading producer in what is really the fastest-growing , no mexicoin woodlands. we know texas based anadarko will resume talks with occidental over $76 a share bid two weeks after announcing the share d

this was a fight occidental picked. they went after anadarko very frequently and often and continued to raise the cash portion to make this as political as possible to anadarko, and they initially were rejected. whether anyone will start these kinds of bidding wars going forward, i think it is a little bit unusual, and certainly we haven't seen much of it in the energy industry on the big oil side. alix: no we haven't. and the names tossed around, endeavor, pioneer said they are not for sale. are you playing all of the m&a we might see in the permian? leslie: i think it is tough to play, but do i think there is kennedy m&a -- going to be m&a? i think the next part of the cycle is taking up the costs. we have been working at the wellhead level, bringing down everydaye, making our in the united states more defensive, but we have too many companies with too much overhead. in my mind, m&a makes sense and i expect to see it. who is the best candidate? i'm not sure, i don't have great insight into that, but i do think this is

why do they prefer occidental's bid?rs, occidental has come up with a lot of methods of addressing some of the concerns had.rko shareholders they have done a deal with french oil company total. so this is addressing the questions about investor protests and the high level of debt. francine: will they come back ?nd offer more >> the big test is if the chevron ceo made that a big part of his pitch to investors. they still say they will get value from the transaction. francine: a final question on doesn't getit anadarko, what does it do? >> it will have huge tracts of land. it will do lots of drilling. the shale oil assets would be a good addition to chevron's portfolio. what does it mean for investors that may want to find value gekko is it too risky to say that -- to find value? is a too risky to say that valuations will go up? >> we have not seen bp in the while. gas arena in a much more has been happening in the health care space. m&athe end of the cycle, activity is picking up because companies try to buy growth. it de

anadarko could be looking for chevron to topple a bid from occidental. the deadline for a revised offer is friday. manus: a bid for unicredit, numbers will face the market in terms of net income, one poin -- 1.30 9 billion. that is a beat. everybody's name seems to be attached to commerzbank. setting money aside for bad loans has been something that has been a hallmark of unicredit. italy is where it gets 40% of its domestic revenue. it is confirming targets for 2019, and that is probably one of the most important elements. i will hunker down for more details and handed over to you. you got deutsche telekom. nejra: the red headline is first quarter adjusted ebit post please comes in at a slight miss of the and -- estimate of 5.79 euros. there are u.s. subscriber gains. deutsche telekom's first-quarter revenue coming in at 19.5 billion euros, a beat on the estimate of 19.3. it is confirming its full-year courts -- forecast. system solutions first-quarter revenue falling. analysts expected a steady set of results with eyes on updates to regulatory progress

warren buffett jumped in with $10 billion to help occidental.um deal. that looks like $76 per share. $56 of that in cash. that appears to outbid chevron, which would be about i want to say, well, if you do the math, $62 per share. right now occidental while at $58, we need to look at anadarko. that stock is well above what the chevron price would be. jeff flock, oil is very much at the center of this, if you believe what tim's saying here. >> well, we came here today thinking oh, you've got hamas and israel, you've got the u.s. carrier to the per,sian gulf. that didn't help with fears about china because traders apparently began to think you know what, maybe not such a big deal but not only that, i'm down in the lean hogs pit. this would limit down at the start and limit down at the finish but most of the ags did come back. i know that's chris' bailiwick here. he knows it better than i do. the ags came back nicely and ag has charged back. liz: the volatility index, the vix, the fear index, we saw an interesting move there. it spiked to the highe

this is the cash flow for chevron and occidental. the blue line is occidental. cash flow of $380 million versus chevron which still has positive free cash flow. meeting fords up occidental is a free cash flow play. short-term it will be exposed to oil price volatility, as well as the amount of leverage it will take on to buy the company. over the long term, you get more wells, more oil, more productivity and more cash flows sitting at -$380 million. you can see my chart on the bloomberg at gtv . taylor: jessica, what do you have? jessica: brent has declined more than 5% so i want to take a look at a technical indicator that shows why we might see a rebound. brent trading between the upper and lower -- brent brushing this lower band. if you take a step back you can see the last time prices touch this line was in december. oil rallying at 11%. you can find my chart on the gtv . fundamentalink the girl in me is going back to free cash flow and that amazing interview we had with the chevron ceo. for those reasons i will give it to alix steel, but two great c

occidental wins a bidding war for anadarko.ber begins its ride as a publicly traded company. >> we are down a set of investors who are long-term oriented. kailey: wall street movers and shakers weigh in from the salt conference in las vegas. >> there are so many investors who are desperate for yield right now. >> do we want to ask those passive investors what corporate governance should or should not be? kailey: and, in an economy full of question marks, officials say policy moves are not the answer. >> i am not inclined to lower the fed funds rate. >> we think the u.s. economy and monetary policy is in a good place. kailey: it is all straight ahead on "bloomberg best." ♪ kailey: hello and welcome. i'm kailey leinz. this is "bloomberg best," your weekly review of the most important analysis and interviews from bloomberg television around the world. let's start the day by day look at the top headlines. with trade talks scheduled in washington, investors had high hopes that the u.s. and china were moving towards a deal, but a flu

. ♪ paul: petroleum has cleared occidental takeover superior.will allow chevron to either boost its offer or walk away with a $1 billion breakup fee. our reporter is tracking all this in houston. take us through the latest developments. rachel: we just got word right going forwardare with the occidental bid. it basically gives chevron the opportunity to walk away because they are ditching the original deal or they have until the end of the week to sweeten their somethingcome up with that the board might think is better. shery: over the weekend, total coming into an alliance with occidental now offering to buy anadarko's african assets. does this alleviate some concerns over debt? it goes a long way for some investors because a lot of concern about if you can find buyers for those assets, and oxy said they wanted $10 billion to $15 billion, a big chunk. shery: what does it mean for chevron? you told us they could come back with a sweetened offer within the next four days. but this was a bid for the basin, to grow more sensibly in the region. rach

. >> big oil this morning, anadarko decided it will have a conversation with occidental.re attractive. what is going on? >> i think that one billion breakup fee with chevron might also be affecting them. it's interesting to keep in mind that the occidental ceo said they have made problems in the past. it seems like they feel they would be a bigger fit to the giant, even though financially and in terms of the cash, the occidental offer is definitely superior. >> warren buffett throwing a curveball into that oil merger that we've been watching so careful. $10y, chevron, anadarko, billion in the oxley side of the equation. i thought they had the financing lined up. they told us they had the financing lined up. does this put coldwater on that? >> that's what everyone is saying. we thought this was in the bag, but this is going to be more expensive. there's a little bit of surprise there but i think to the extent that the anadarko board is considering whether the occidental bid is superior, this will push them to say we do need to move forward with something, and then chevron

the company favors occidental's sweetened offer. chevron four days boost its bid or walk away from the biggest deal in at least four years. annmarie hordern joins us with more. what is the latest in this unusually public spat? annmarie: very unusually and it has become a bidding war. withon needs to come back a deal. they have deep pockets and a lot of financial clout. likely, they will do this but analysts say they need to come between $70 to $72 per share to stay in the game. for chevron, they don't need to topple the occidental offer because even the cfo of chevron was saying with the first deal, anadarko said they want 75% stock, 25%. cash they wanted that stock from chevron come even though they said they would boost the cash because the stocks are valuable. the big question is how far does the chevron ceo go? he's 15 months into the job. he's known for being financially disciplined and he has signaled he won't go into the pursuit of such a high price if it hurts investors returns. matt: on the occidental side, prices voting ag

to a deal we've been following for a couple of weeks ever since chevron to acquire anadarko and occidental was there with a bid that bid a few days ago, having been made or deemed superior by anadarko the question then is what will chevron do now we know, they've bowed out of the bidding choosing not to compete with that bid from occidental michael wirth said listen, you need to be aware of what things look like in a down cycle, always run the models, he sort of implied, of what the risk looks like with low oil prices and it simply seemed to be a line they didn't want to cross, whether it was 65, as their deal was, 68 or 72, he would not tell me what their return parameters exactly looked like. he continually said during a conversation we just had that he had a line in mind as to what makes sense, this crossed it and that winning -- you know, in any environment doesn't mean at any cost, given we are in a commodity business. >> i thought that was great. what people forget is that a lot of oil people, all they know is to go full throttle. okay that's what they do. they don't have any market

occidental in a bidding war for anadarko. a publicly traded company.all street movers and shakers way in in las vegas. >> there are so many investors desperate for yield right now. >> we want to ask those investors what corporate governance should or should not be. >> an economy full of question marks, policy moves are not the answer. >> i am not inclined to lower the fed funds rate. >> we think the u.s. economy and monetary policy is in a good place. >> it is all straight ahead on "bloomberg best." ♪ >> hello and welcome. youris "bloomberg best," weekly review of analysis and interviews from bloomberg television around the world. let's look at the top headlines. investors had high hopes that the u.s. and china were moving towards a deal, but tweets from president trump dampened the optimism. uppresident trump ramping pressure to finalize a trade deal this week. he is threatening to double tariffs on $200 billion of chinese goods to the u.s. and impose new taxes. >> it is a shift in town. they have been sounding they could be close to a deal with china

occidental is culturally beneath them. what does anadarko want -- -- anadarko want from occidental?on. chevron's stock is a better currency than occidental's stock, so that was the heavyweight on chevron that they were able to do this deal. the cfo of chevron was saying how anadarko said they wanted more chevron stock, less cash. they might have to boost the cash holding, but they have the cash to do it. the question is -- do they have the appetite? tom: this is one of the best screens on the bloomberg, weighted average cost of capital. what you want to notice is the slope of their cost of capital over a decade. chevron has been hugely responsible, et cetera. after the in touch ibm deal yesterday, why don't they just buy these guys and put occidental out of their misery? annmarie: the ceo has made a reputation of being financially fiscally disciplined. it is not like the old days where they are spending money and consolidation. awayn walk away -- walk with his reputation intact, gain a billion dollars, and they definitely have the cash to do this. tom: thank you so much for the trac

petroleum and let's go to eric chemey. >> occidental petroleum moving after carl i kacahn has developa new position and it's 2% or more just a couple of seconds ago and that is a bloomberg report saying carl icahn is building a position in the stock and in the friday after hours >> eric in the newsroom with news on occidental petroleum this is an interesting twist in this whole deal situation. >> carl getting involved in the game we talked about anadarko petroleum is a name we talked about for a long time and now on everybody's radar screen, carl getting into the action makes you wonder some of the other names that seemed to make sense just on flat valuation i'll say it again. the stock hasn't performed, dan nathan fricka sees me almost every night on this desk rightly so >> what he's fricaseeing >> he carves me up, right? throws some high heat and a nasty slider and it's just nasty. >> will people follow carl in the same way if you look at the chart and this is around where this stock bounced? is it around where it's bounced before emp definitely garner and suck up a lot of the oxygen

agreeing with occidental to buy anadarko's assets and africa.size at a $.8african assets a numbercontingent on of efforts. this is a little bit of breaking news, this is an additional lie -- line. price is right area that is what robert kaplan says in terms of rates in the u.s. still seeing some buying on the fonts there. a rise in price drop in yields. very well covered, the third most bid auction this year. rates are in the right place, that is the message from robert kaplan. italian government bond yields be down and making the point careful how you review your strategy. let's get into the markets. yvonne man is standing by in hong kong. ivanka: the >> we are struggling to hold onto the gains we saw in the early part of the session and it kospied, the nikkei and returning from their holiday. with the nikkei, they have been offer tenders -- off for 10 days since golden week. also lower by 1%. you're not seeing a lot of [indiscernible] either. muted gains, not nearly recovering from the 6% drop that we saw yesterday. which wiped out $480 billio

occidental wins a bidding war for anadarko.ber begins its ride as a publicly traded company. >> we are down a set of investors who are long-term oriented. kailey: wall street movers and shakers weigh in from the salt conference in las vegas. >> there are so many investors desperate for yield right now. >> do we want to ask those passive investors what corporate governance should or should not be? kailey: and, in an economy full pol -- marks,rks, officials say policy moves are not the answer. >> i am not inclined to lower the fed funds rate. >> we think the u.s. economy and monetary policy is in a good place. kailey: it is all straight ahead on "bloomberg best." ♪ kailey: hello and welcome. i'm kailey leinz. this is "bloomberg best," your weekly review of the most important analysis and interviews from bloomberg television around the world. let's start the day by day look at the top headlines. with trade talks scheduled in washington, investors had high hopes that the u.s. and china were moving towards a deal, but a flurry of tw

revise that offer up to seventy percent cash and twenty percent stock by offering more cash occidental while no longer have to seek approval from shareholders to purchase anadarko and this makes this offer a way better than the one that chevron had so what do you make of this latest move this will definitely increase. oxys leverage so are they being desperate here. i think there's a billion good reasons why we're seeing this this deal whole lot better as a thirty eight billion offer versus chevrons offer thirty billion even if the deal is rejected and they end up going with c's offer they will owe chevron about a billion dollars so i think what's interesting is warren buffett you know there's not been a lot of conversation about where warren buffett plays into this and he was willing to invest up to twenty billion to make this deal happen he's got a sweet deal about one hundred thousand shares at an eight percent dividend and so i think with that kind of backing chevrons probably going to say well there's there's other fish in the sea and i think that's what the markets pricing in. the

anadarko, its board saying that occidental's takeover offer is superior to chevron's current bid. now has four days to come up with a better offer. if it cannot, it's revised offer is rejected or anadarko must pay a $1 billion break-up fee. >> you don't make a deal, and you still walk away with $1 billion. would you take that deal >> $1 billion sounds pretty good to me. >> it does right now not bad. hey, anybody would be honest about that thank you very much. >> well, here's how your money and investments look right now we're halfway through the 5:00 a.m. hour. dow futures in the red compared to yesterday where we were down at this hour, 500 points i guess relatively it doesn't look too bad dow futures off 137. nasdaq and s&p futures are down as well. despite some of the optimism over trade talks bonds getting a bid. bonds being bought yields coming down benchmark ten-year yoeld at 2.47%. as we noted, realtors, you got to love that mortgage rates are going to stay steady or move even lower you heard phillip mena talk about higher gas prices. today anyway we're seeing all the hydro

shares of anadarko, occidental and chevron are all in the red this morning as the market sells off. >>> on deck, horror on the runway a passenger jet bursting into flames after making an emergency landing in moscow. >>> plus, we are all over the monday morning selloff stock futures down 500 as president trump turns up the heat on a trade alitde wh china. we're back right after this. ne t opportunities firsthand. like a biotech firm that engineers a patient's own cells to fight cancer. this is strategic investing. because your investments deserve the full story. t. rowe price. invest with confidence. you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today. >>> welcome back good morning 5:25 on the east coast if you are just tuning in, buckle up because we have go