approved the united technology rockwell collins deal. in order to give themselves more leverage in the trade war. maybe the people of republic wants to send us an olive branch, there are no more obstacles preventing on buying rockwell collins both stocks caught fire on friday and continuing tonight. this deal closes sometimes in the next couple of days. and the company will split into three different enterprises to unlock value it has been green lighted. the stock down dramatically from september highs. when this transaction was announced, it was supposed to be a game changer climb the control security system and the big one, aerospace components with the rockwell collins acquisition, the company was doubling down on aircraft. cabin interiors, communications they the have a lot more bargaining power and that means they will be tougher and harder seem clear when the stocks were red hot a few months ago the group has cooled off, but i think the bullish narrative remains in tact. it is about the rising middle class across countries the dema

getting the rockwell collins deal done was a huge component of that plan.this appears to be a done deal, investors will start looking to what the next structure of you tx as a whole will look like. do in termses this of the supply chain story? these are big parts in the military and civil side of the aviation sector. heftombination changes the they have in the supply change. does this change the relationship with the oems like boeing? they were pretty explicit when they announce the deal a year ago that they were looking to get more leverage over boeing, airbus with regard to the cost cutting we were seeing at those airlines, pressure that those aircraft makers can put on some of the parts suppliers. we have also heard from airbus in recent weeks and months saying we hope the deal does not tip the scales too much in the favor of some of the suppliers. airbus is concerned, they still want to get the planes out the door quickly, in an efficient manner, and they don't want anything that would gum that up. right now this is a play by united technologies to have

rockwell collins since being acquired has had some free cash flow problems of its own.t into question 19 targets. this is coming off the back of the news late yesterday that the conglomerate is planning on spinning off into three separate businesses. they are planning to spin off into their otis and carrier businesses and united aerospace technologies. this spinoff plan largely taken as a good thing. the $3 billion price tag for this could take up to 24 months. analysts noting a longer spinoff time means the stock is in limbo. vonnie: and there is profit taking. we know much of this is in the works for a long time. talk to us about future plans for m&a once we get over the hump of spinning off into three. >> exactly, they said there could be follow on deals for this. there could be problems for otis because they are the largest in their business, the elevator business. he said he thinks the biggest risk could be antitrust. vonnie: kailey leinz with our stock of the hour, united technology, utx. coming up, it is balance of power. mississippi voters are headed to the poll

rockwell collins up 9% to 141. 3. tesla is did you telling the price of the model x and model s cars in cna. the discount will be between 12 and 26%. the decision comes ahid the severe trade tensions between the u.s. and chf. in a statement the electric car company says it's absorbing part of that tariff h top make its cars aordable. china has you may know is the world's top auto market. shares rose about 4% to 325.83. >>> visa and master card have reportedly offered to trim merchant fees in europe for card payments by tourists. according to reuters, the paymenai networks are to be trying to avoid fines related to overti-trust investigation there. shares of visa fell 1% to 132.87. master card was down 2% to 182.60. and the ceo of overis temg the "wall street journal" he expects to wrap up a sale of the cousany's retailess by february. although he did not name any potential buyers, overstock is going to shift its strategy and focus to cryptocurrencies and new blockchain trading system. sending the shares up 23% to 20.9

united technology has cleared the final hurdle to complete a deal with rockwell collins. has signed off on the $23 billion agreement reached more than a year ago. investors are concerned the trade dispute between the u.s. and china would hold up the approval and take over. it gives united technologies scale and negotiating power to deal with boeing and airbus. the cryptocurrency crash shows no signs of letting up. fell 25%berg index last week, the worst five-day stretch since crypto mania peaked in january. that coin is trading at just over $4200. that is your business flash. those are the main stories. this week is either going to see a breakthrough or further breakdown of the u.s.-china relationship. president trump and sheesh and paying are scheduled to meet on the sideline of the g20 summit in bonus areas. -- in argentina. they see it as a possible catalyst that could break the market out of its slump. the s&p slipped into correction territory friday, the third worst thanksgiving week performance since 1939. no, i was not around in 1939. neither was our guest. thank y

united technologies i cleared the final hurdle to complete a deal with aerospace supplier rockwell collinsina signed up on the $23 billion deal. investors were concerned the trade is between the u.s. and china would halt approval. that figure -- a gives united technologies the scale to deal with boeing and airbus. force of -- by streaming operations. bloomberg has learned the german luxury automaker will be spent more to manufacture electric cars. they will try to make more money from new business such as digital offerings. oil is heading for its seventh weekly loss. futures slipped below $60 for the first time in a year. saudi arabia is signaling its output may have reached a record. america's growing stockpiles raise concern about a supply glut. that is your business flash update. fromwe are joined by mike bloomberg intelligence. fun times. will this keep going? mike: we are very much oversold. we have to be careful using that word. we have had massive liquidations of futures positions. oil -- i haverude it on my terminal. what you see in this chart that screens or indicates overabundanc

approved, has been approved prior to what they're still expecting will be that approval from rockwell collins is reacting to julia's report, again not unexpected, mike, but there had been concern because of the rise intentions between the two countries. would it be something the chinese simply said let's sit there as we know -- >> fox up two shares from flat a pleasant surprise. >> sooner closed than the market had anticipated. let's take a break more "squawk on the street" after this >>> welcome back to "squawk on the street." i am dominic chu health care is a huge focus now, one of the best performing sectors on a year to date basis. currently around 59% of stocks in that particular index are trading above the long term trend. 200 day moving average 8 of those in the index below that trend line. you can see a gap developing between health care and s&p 500 overall. check out a chart of some stocks that are moving the most on this large cap pharma as a huge theme developing here. one of the others, large cap pharma, pfizer and merck, and big did i ver jans back to you. >>> when we come back,

watch rockwell collins be approved >> that's what you need. >> those who are following rockwell collinsch includes the event community so to speak, when they look at a headline like that, they get encouraged >> that pressure on china though is that why apple and cat are leading the dow lower even after cat says they'll buy more shares this quarter than last >> according to leo griffin, that's a big consumer item a lot of people are looking at oil and they're saying it is one for one for china. it is supply over overwhelming dema demand they're selling the nasdaq down but that's apple let all the sellers coming out of apple it is a seasonal thing leo griffin says it is a seasonal thing there is no reason to believe in him. >> liam neesam >> no n, not him. >> can i come back -- >> there is justice. >> i don't remember -- >> i know. traumatic things that every kid -- >> bob iger will not let that happen >> on china. >> what? >> it should be noted that a deal we had this morning 26 by pixars let's take a look at the deal. another .218 shares of 26. they'll need china's approval. >> you got

the biggest deal ever completed in aerospace with the closing of rockwell collins we talked about thefed, rates and how tariffs are impacting consumers. >> china will take one out of every four aircraft that's built in the world this year, right? china is an important part of the world economy. we have to figure out a way to deal with the chinese. i'm not a politician i'm not going to get into that debate, how best to do that. i will just tell you my own view we've seen this before, is tariffs don't work if the idea is to bring jobs back, it ain't gonna work. >> are you worried about your business then, given the prospect of 25% to 10% in the not too distant future >> look, do i worry about tariffs? do i worry about that? of course. i think you can only raise prices so much before you impinge on demand. you also create inflation in the economy. all those things that we try to avoid doing. i think trying to find a rational, reasonable solution is imperative here in the near term. >> really quick, whether it's tariffs or cost inflation or rates, is the buyback picture changing overall i

. >>> shares of rockwell collins right now are higher they have given they approval for the sale by unitedh of relief from people who were concerned the china trade wars would impact approval of deals. rockwell collins is higher than 9%-plus. >>> last thanksgiving bitcoin was all the buzz you might remember the price rise gripped the nation, became a dinner table conversation in january 2017 one bitcoin cost $1,000 by thanksgiving it had soared to $10,000. i think this is a result of thanksgiving called thanksgiving surprise by the end of the year, bitcoin cost almost $20,000. but now one year later, it is a different story. looking at it on the screen. it's at $4250 at this point. joining us now is michael morrow at genesis capital one of the biggest cryptomarket makers on the street can you explain this what's happening here? >> well, good morning. i think that from a technical standpoint it's been ugly. the drawdown which lasted for basically 330 days has seen no abatement in terms of the price pressure the $5900 price level that has acted as a support during 2018 really broke down towa

utx completing its $23 billion acquisition of rockwell collins.nited tech's ceo greg hayes says as stand-alone companies united technologies, otis and carrier will be ready to solve the biggest challenges and provide positively to communities around the world dan loeb pushed for united technologies to split in april after disclosing his hege fund built a significant stake in the company. at the time management disagreed but always said it was open to shareholder input. utx up a percent and a half in premarket trading. >>> watch tesla's shares today. shares fell in china 70% the passenger car association telling reuters tesla sold just 211 cars tesla which imports all the cars it sells in china said tariff hikes in auto imports were hammering sales. >>> we continue to monitor gm today. yesterday the automaker announced it will shut several plants in america and canada and cut about 14,000 salaried jobs president trump and several lawmakers are expressing displeasure over the move. gm's ceo mary barra met with larry kudlow yesterday afternoon. so fa

different businesses which come after united technologies' $23 billion cash and stock acquisition of rockwell collins which closed on monday. what the company is going to do is spin off its otis elevator unit, world's largest manufacturer of elevators, the carrier unit which is heating and air conditioning, and then the refrigeration solutions. the breakup is expected to cost between $2.5 billion and $3 billion. it's expected to take 18 months to two years to complete. why is the stock tumbling 5%? you have to understand that some investors may perceive that this means the company might be distracted for a longer stretch of time as they work to break apart this company. right now, united technologies shares at $121.72. >>> we have been following this story for the last two years. today, teva pharmaceuticals gave a major news report of relief for anyone suffering from deadly allergie allergies. it announced its generic version of the epipen will be available in the united states, listing price $300 for a two-pack. the fda approved the version in august. two years ago, mylan jacked up the price of an e

china okayed the rockwell collins take over the united technologies. couple weeks ago it was american express. i'm hearing nicer things from the trump administration. do those things matter going maybe late into this week and into the friday session? >> i don't think so. i think you need to look at mike pence's speech a couple weeks ago. it showed you what this administration is thinking. i think the allianz situation where they finally got regulatory approval to do insurance over there, allianz is a german company, right? if you look at a lot of companies that chinese, chinese companies are requiring they were in germany. germany and china have a good relationship. i think it was more predicated on that than the united states. i think that what would be the benefit for xi xinping to step back from his stance, right? charles: what is his stance? >> well, his stance he will not give up on his 2025 plan. 2035 plan and 2049 plan where they will be military might. they can defeat any army in the world. that is 100 year plan from when their current party st

2020utc will be strictly an aero space company following its ac by withization of airplane maker rockwell collinsnd it is trading higher year to date. cheryl: stock we've done shopping on cybermonday just a little. just a tiny bit. a small contribution. anyway i think we helped set a record right? >> we did so dayses earlier shoppers spent estimated 6.2 billion on black friday and this cybermonday will go down in the books as the largest u.s. online shopping day of all time with a projected 7.9 billion dollars in purchases. that's according adobe analytics almost 20% increase from 2017 and starting this year, with shoppers in about half of the staitle may have noticed they're paying taxes on their cybermonday purchases because of that reason. supreme court ruling -- >> well the deals were pretty good. >> 50% off and free shipping see what that does to company margins come reporting are time but tracee thank you very much. cheryl: as shoppers we're spending billions of dollars on cybermonday u.s. stocks actually rebounded yesterday and that rally helped dow and s&p cut their losses. for the the ye

it is expected to announce the completion of its merger with rockwell collins.ed had been pushed to consider partners. yvonne: the internet may not be ready. at&t was forced to make last event between tiger woods and phil mickelson free to watch because of a glitch. amazon canada fire for the quality of its use -- livestream of u.s. open tennis. >> japan is heading to its break 45% up. we are going to pick up with these retailers. not such great numbers coming out of the stores in china made this trade war taking place. is just about entering the italian market. these companies are doing well because they have a cosmetics element to their business and what we are seeing is a bit of a revival in cosmetics sales taking place in japan. let's take it out to the carmakers just in light of what has been happening. nissan is down 1/10 of 1%. mitsubishi motors also off the board as chairman, colors ghosn. across the board, a few gains taking place. we have the yen pretty much study. ♪ let's take you back to live pictures out in biloxi, mississippi, where president trump

. >> the only thing that really change was china holding up the rockwe rockwell/collins deal which ishe olive branch >> given what they should do given antitrust regulations. they let fox and disney happen qualcomm have been off >> well, it will be great. that'll help semiconductor it is down 40% that's a correction. it is not a fair market. they have to go to zero to be a fair market. facebook is a correction its got to go to zero. what does it take to get people to use the word bare they hide because they go to the really good zoo in san diego it is a great zoo. >> i can't say that. >> look, i will put you on my show as a bear no, there is no bear you want to see bear, go to jersey and leave the garbage cans there are many bears rolling in the stock market >> that's part of it that was the smartest part of that piece >> what if facebook have to go through? that's not a bear, that's a mild correction >> 25% >> we'll continue this in a moment when we come back, amazon shares are up on optimism of cyber monday we'll take a look inside the company. we'll take a look on tp phe premarket,

the move follows united technologies twitter $3 billion acquisition of rockwell collins.ssed ceo greg hayes is better pressure from activist investors bill ackman and dan low. president of politics and economics of the auto industry are crashing head-on, president trump says he's pressuring general motors to move production back into ohio, state that usually a critical battleground in presidential elections. gm plans to dismiss 14,000 workers and close seven factories. one of them is in lordstown, ohio, which makes the slow selling seven -- chevy cruz. in a very bad here is getting , after thehomas cook company reported annual profit below guidance that already been cut twice. decimateok says it ms. a three years to get things back to normal and the company failed to plan properly for the hottest european summers on record which led millions of potential customers to holiday at home. and that your bloomberg business flash. tensions between the u.s. and china are melting ahead of this would g20 summit and president trump saying yesterday if we'll make a deal that i'm going

it has a merger with rockwell collins.ctivist investors including bill ackman endemol to consider standalone -- and dan loeb to consider standalone divisions. ramy: tencent is teaming up with the operator to offer mobile payment services for small retailers. the nikkei news to says the tie up is aimed at tapping into the surge of tourists from china and it will compete with a service offered by yahoo japan and softbank. lion will lease terminals of wechat pay in the new year. 21st century fox and its soon-to-be owner disney are being sued for ending an agreement to build a theme park near kuala lumpur. they are seeking more than $1 billion in damages according to court filings in los angeles. they say the deal was jobs because disney does not want to be associated with a gaming business. oil looking for direction as top exporters prepared to discuss .supply in the meantime, let's take a look at how asian markets are trading in the asia-pacific. inhave lending positivity the asian session. in the asian session. korean chair

rockwell collins got approval david mentioned, amd big winner for the year and the airlines doing welllower oil prices big theme today. dow is down 115. quk t see wl be right back >>> markets are negative we have the dow, s&p and nasdaq coming off what are their worst pre-thanksgiving performances in seven years. joining us for more, dan morris and michael pervez, wheaton and companies chief global strategist michael, let me start with you oil seems to be the story of the day if not for the month of november given the pullback. what does it mean and are you taking note in terms of perhaps those who want to say it's sign of a slowdown? >> it's a very significant factor it's harder to delineate what is supply and what is demand dynamics going into it but at the end of the day, forward inflation metrics are heavily defined by the trajectory of oil prices rightly or wrongly. so that is going to help soften the fed stance to what degree -- >> even with wage growth. >> it's not just oil there's a broader narrative about almost every major inflation in the u.s. since july has been missed expe

i do think it was interesting we saw the chinese vote on rockwell collins to approve the merger.ing to me i don't think we are going to get a catalyst resolution out of this meeting i think we will at the margin see indication is it the kudlow or navarro policy is the president going to do something symbolic or kevin argues something much more stringent. i agree we need to get the ip issue under control and we've let it go for decades. i also know that china has a lot to play with right? they cut shyboring by almost 200 basis this year. we'll see if that has an effect on rallying that economy, which will give us some cover in the markets in 2019. i can't tell you sitting here today what the catalyst will be or if trade is even going to be the issue over decelerating earnings >> yeah, well, it certainly hasn't comforted the market. so far, china had another spill overnight, shenzhen fol falling more than 3% markets have been suffering, there is optimism for the consumer here's how he characterizes it >> i think it is a very favorable consumer spending environment. record low unemp

technologies, which has the multiple lines of business, well diversified, its acquisition of rockwell collins, scheduled to close this quarter should expand its product line it has growing earnings which is a problem of course with ge and a track record and we expect growing dividends in the future as well. we do think, in addition, that it's been hurt by worries about trade with china and as a result, if you get any kind of resolution of that sometime in 2019, we're not optimistic for later this month, it's likely to be a catalyst for upside in those shares so we're looking at companies that are very well positioned across different lines of business, and have that growth potential as well. >> we just want to call your attention, folks, this idea we are down about 495 points in the dow jones industrial average, so these are session lows as they stand currently, off by about almost 2% at this point. jack, i want to go back to you as we talk about emerging from the midterm election cycle and looking forward into 2019, how much should investors pay attention to the political environment in the

now i am >> utx completing its 23 billion acquisition of rockwell collins.his is something activist dan loeb was pushing for back in april after he disclosed his hedge fund built a significant stake in the company. at the time management disagreed but always said it was open to shareholder input. utx up a percent and a half in premarket trading. up $2 to $130. that market cap 102 billion. >> before these gains today. >> yeah. >> let's tell you about other stocks to watch. tesla's sales in china fell 70%. the passenger car association telling reuters tesla sold just 211 cars tesla which imports all the cars it sells in china said tariff hikes in auto imports were hammering sales. >>> we continue to monitor gm today. yesterday the automaker announced it will shut several plants in america and canada and cut about 14,000 salaried jobs >> we have a lot of pressure on them they say the chevy cruze is not selling well i say get a car that is selling well and put it back in. i think you'll see something else happen there. i am not happy about it. i have no doubt in