guy: on the side of the atlantic, unilever, anheuser-busch turned down. this is a company that has a 3g as a result of which it is being tarred by the same brush today. story.hat kind of sector socgen is trading on the upside. -- the bank is looking significantly down when it comes to the investment banks. cost story thing greeted positively. %.oxx 600 up .3 macron on your side of the pond, funny, -- like on your side of the pond, vonnie, stocks trending higher. vonnie: long day of trading for us in the u.s. record low at this point. billion. also, an sec subpoena and disappointing earnings. what kind of bombshell was this? >> pretty big, a troika of bad news. guys bestss, the 3g at cutting costs, the sec subpoena, and this massive breakdown. the write-down is calling into question the entire strategy of this company, really at the brand. -- really at the expense of nurturing the brand. a lot of questions of if these guys know what they are doing. knowdoes warren buffett what he is doing, and is there an opportunity to step it? craig: that's a good questi

as far as european stocks, nestle, unilever, they've been investing in healthier options.send reverberations throughout the industry. matt: absolutely, watching that closely. maria tadeo, telecom italia having profit target issues. maria: that's right. the stock has been under pressure for a while. the new ceo says he will drop profit targets for 2019. they key thing is they are seeing pressure in domestic markets. we've seen them get into the earlier telecom space. telecom italia says for the time being, it wants to bring down the debt and boost capital by cooperating with rivals so they don't have to do all the spending. matt? matt: thanks very much for joining us, all of you. stocks can get the latest stories on the equities team by typing first go on the bloomberg terminal or via the mobile app. one of the biggest stories we're following is the possibility of job cuts at socgen. they are planning to cut jobs, possibly hundreds or even thousands of jobs at its investment bank. we're hearing a could come in global bank or investor solutions unit. so, there could be rolls

on the wake of kraft, heinz news, unilever and nestle are lower. bid for dove soap maker in february of 2017, and since that time uni dleleve outperformed now the divergence between kraft and unilever is more stark. kraft down 65% since withdrawing the takeover offer and unilever is up 10% >>> let's get to leslie picker for a news update. >> thanks, jon here's what's happening. producers of fox tv show "empire" releasing a statement saying they decided to remove jussie smollett's role from the final two episodes of the season this after he was arrested and charged with staging a hate crime attack on himself. he was released on a $100,000 bond thursday. >>> house democrats introducing a resolution to block the national emergency declaration the president issued to fund his long sought border wall. speaker nancy pelosi says the house plans to vote on it on tuesday. >>> a moscow court extending detention for american paul weiland who was arrested in december for alleged spying the he arrived under escort by a masked man, will be behind bars another th

margin, and they did not get that unilever deal.y have not been able to continue with that cost and gross sales. david: warren buffett with his annual report coming up tomorrow. emma: i wonder if he is redrafteing it. david: warren buffett has invested in iconic brands over the years, coca-cola and others, but you have said that kraft heinz has not invested in their brand. what happened? emma: that is not the pattern we have seen with warren buffett. but he is no longer on the board at kraft heinz, so maybe that is something playing into that. and we have seen what they have done with capital. they have really just gone down this cut cutting path -- cost cutting path instead of investing. david: one of the things i learned in business is you cannot cut costs to get to success. next, the president meeting later this afternoon with the chinese vice premier, with hopes that trade tensions will ease the burden already being felt. we will talk with douglas, next. this is bloomberg. ♪ i'm a veteran and the army taught me a lot about commi

from the european perspective, we have seen the likes of nestle and unilever.ll tried to home that portfolio, out with processed food and in with healthier yogurt andlthier coffee. all of these kinds of things that people now look for more. kraft heinz has been behind in the. somewhat ironic because you remember two years ago, almost three years ago at this point, they made a bid, trying to make a bid for unilever. that didn't work out.some of the accusations at the time were , this is a company that really needs to clean up and shape up. unilever has arguably done this. kraft heinz is sort of getting the wrong medicine now. nejra: great to have you with us. thank you so much. let's take a look at what other stocks there are two watch today. sebastian: let's start with our corporate story of the day. the reason for all of this, regulations, increasing oversight and that is increasing cost, which is what the company is seeking to solve. investors taking it pretty well but our biggest mover today is -- of 17%. at is a french i.t. service company. analyst saying t

if you compare the valuation of craft heinz to other stocks like unilever which was down a bit but nots much as some of the u.s. staple stocks were, it looks incredibly cheap they have really struggled to figure out their business. i mean they really haven't done a very good job of managing it at all so you're looking at the stock an thinking do i want to get in here if you own it do you want to buy more it's trading at 11 times forward earnings my answer to that would be i wouldn't actually go out and buy additional stock here. for one thing, these types of clients often take a few days to work out there's big institutional holders. if one of them decides to blow out their position, there could be significant further weakness. so i think one thing you could take a look at, though, if you own the stock or are thinking about buying a little bit of it here, to boost your gains, if it gets a recovery, would be to do a one by two call spread over a long equity position the idea here is that the stock is unlikely to recover to the price where it just fell look, we have a lot of news out her

defensive shares are things that relate to money we will have to continue to spend, whether that be unilever always need that income coming in. pretty reliable stocks you might say. we will be finding out how mcdonald's has lost its trademark of big mac later. still to come: it has more than 200 million licensed photos and more than ten million video clips. it's shutterstock, one of the world's biggest distributors of images, whose founder started the business by taking the pictures himself. we'll hear his story. tui has revealed its losses have widened to $94 million in the three months to december. the tour operator said it had lowered fares in order to protect its share of the crowded low—cost travel market. our business correspondent theo leggett has details. it used to be thomson holidays. it used to be thomson holidaysm did indeed. this is a business based in germany and with a significant operation in the uk. the problem is, the long hot summer, a hangover because of late bookings because of that. people moving away from the west mediterranean to the eastern mediterranean which has me

even before today, shares were down 50% since the unilever deal fell apart.rs expected these guys to do a major acquisition. what they do best is cut cost. ever since unilever fell apart, something like $70 billion in is owned by -- this warren buffett, and it will get hammered tomorrow and the u.s. and open at the lowest price it has ever been. >> thank you so much for that. ford shares also slipping in the iter-hours session after alerted federal regulators about a potential problem with its emissions and fuel economy testing. very quick to distinguish this from volkswagen's type of the missions issues. >> definitely getting away from that in the statement that was released earlier today, saying it was not related or similar to the emissions cheating scandal plaguing volkswagen, but employees were the ones who actually made this known back in september that led to the disclosure on february 18 two the u.s. epa, the environmental protection agency, which led to the statement earlier today. let's bring up that statement from ford with regards to what has been

unilever john to lower by this story.we will talk about this one in more detail in a couple seconds. so, to wrap things up, we will take a look at the function on the bloomberg. function is a little light, not down by a great deal, the 30 year average is the blue line. we are picking up a little bit lower than we would normally be. and you could argue it is down to it being a friday, but i do not want to make that point. we will bring you the settlement in a few minutes. now, we are looking at the socgen story. let's get details now. our bloomberg managing editor for finance joining us now. $20,000, how many jobs could be at risk and where do we think they could be? >> what they are hearing is it could be 1000, that is what we have in our story, as much as 1000. or it could be more, mostly centered around france. there will be some back office functions and essentially they will be looking across the board for some cost cuts. this is against the backdrop we have been talking about time and time again with the european ban

. >> the eight downgrades, all which of were perpetuated by the idea, they're trying to buy unilever,tock went from 88 to 96 they're in the doing another unilever that's not happening. >> i don't know what they'll do at this point, start selling assets as opposed to buying. >> maxwell house, maybe they can get 3 billion. i don't know maxwell house, tremendous example of a brand passed by >> definitely your grandfather's brand. buffett did call him an outstanding human being of 3g. >> wall street loves perpetuating something that is not always going to be the case. >> we'll get the mad dash in a minute, count down to the opening bell a lot to talk about on this monday morning, ahead of a very big week with powell, gdp on friday, drug ceos on the hill and more don't go anywhere. (indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education cur

kraft heinz is so troubled why do so many analyst as door the stock going into the quarter one word, unileverft heinz saw it drop 10 points at the time the consensus was this deal could boost earnings by 25% they removed it when buffett with his gigantic position refused to support a hostile takeover the analysts loved the deal of a consolidator on the prowl looking for the next big acquisition and was stunned when kraft behind was rebuffed. many hung on betting there would be another deal now, kraft heinz is doing nothing to quell the takeover talk and haven't had the gall to say they slashed dividend part to raise a war chest but wall street doesn't want to hear it anymore. the company's last big deal was a debacle and can't get their house in order i am glad i warned you to avoid it in november because i feared a dividend cut you know what, i still fear a nasty dividend cut we may not even be done here the yield is the same. 4.7% but the payout, it's much lower. look, anything can bounce. well, almost anything. but, hey, seriously kraft heinz is a troubled company and unless warren buffett

unilever down as well, diageo is a loser, benckiser is a loser.ot necessarily the worst sign if you are still bullish on the markets, although we do see european markets lower across the board. about thesetalk markets and where we had next on brexit. european markets open lower across the board and theresa may brought herself more time to secure an agreement by offering lawmakers a vote to rule out no deal and another subsequent vote possibly on whether to extend. joining us now is peter cap well -- catwell. i want to start with your assessment for how likely a no deal is. shehe one hand, you can say will need the permission of parliament if you want to a net no deal, and that is unlikely. can lookher hand, you ahead to a steeper cliff edge at the end of june. peter: that is exactly how i see it. the no deal risk has been reduced, but if there is an extension, the no deal risk is exactly the same, perhaps higher than it was previously. when we are looking at the potential outcomes, because none of them have changed the parliamentary arithmetic and

bought by kraft heinz it means they're gutted and this only reinforces that argument that's what unileveraid when kraft heinz was interested in taking over them. >> that's right. >> i don't think that's in the cards. i think they need to clean up in-house show that they can grow these iconic brands, that they own there's been organic sales growth for two quarters. but that was before they were mostly cutting prices in the u.s. and that's hurt their margins, famously high margins. they need to figure it out before they go and buy anyone else. >> aaron, thank you. leslie, appreciate it, as well. >>> be sure to tune in on monday becky quick will sit down with the oracle of omaha for thre years. that will be monday on "squawk box" beginning 6:00 a.m. eastern time >>> hire's what's ahead on "the exchange." >> coming up, home improvement headache a look at why the battle over tariffs could hit owners and buyers this spring housing season. >>> and a healthy investment could planet fitness be the next amazon we'll explain. at&t provides edge-to-edge intelligence, covering virtually every part of

you recall when they scrapped 143 billion-dollar bid for unilever.t equal four soon. back to you. liz: susan li. we have 3 1/2 minutes before the closing bell rings. we've had recent volatility, specifically talking about the december, but lack of buyers has created more mispriced stocks in places that investors haven't seen in decades. this courting to our next guest. which are mispriced, which are fair value. chris hodges, from hodges value fund. mispriced usually means overpriced not as high-priced or underpriced correct? >> usually it does but we're finding more mispriced on the underside than we ever had. there is couple reasons for that. first of all, in the small cap world, there is a little research as we've seen in decades, it is very unprofitable business to do small cap research so it has gone away. the other thing is liquidity. it is very hard to sell small cap stocks. i'm a manager in the small cap world. you go into sell, the bids are just not there. that creates a lot of mispriced stocks. we're in an etf world and a lot of these small

like companies like patagonia and unilever and southwest where it's not just about shareholders.eholders. and we need more of that, and this could be an opportunity for amazon to take the lead. i will tell you, i will be at event this weekend in my community, and i will guarantee you i will have 50 to 100 people come up to me and say do you think we really have a shot at getting amazon? because we need the work. >> i notice you used the world capitalism a few time there's. there's this rising democratic socialism movement inside the democratic party. where do you stand on it? and obviously, you are a capitalist. you have said it a few times. what is the line to you, and is there -- are you at all concerned that the socialism is creeping too close to the mainstream of the party? >> well, i think we're at the point again where probably franklin roosevelt was where we need to save capitalism from itself. you know, this concentration of wealth cannot be tolerated any longer. we have 45% of the people in the country can't even withstand a $400 emergency. can't afford health care, losi

unilever up there as well as nestle. some defensive stocks. adding points as well. a defensive day, consumer staples are the only gaining industry group on the stoxx 600 this morning. a look at the losers, you cbp, shell, total all among the biggest point deductions on the stoxx 600 as energy and tech are the biggest losing groups on the stoxx 600. names, you seeh asml and sap. tech and oil hurting. weighing on the stoxx 600. the defensive stocks are those that are keeping the index of from a bigger loss. we are to see the stoxx 600 down about half a point. anna: autos and parts is the biggest falling sector write-down. almost 1%. we saw profit warning from leone and their shares falling 60%. we saw profit warning from them earlier. that's a sector to focus on once again. us talk about the big picture for european markets. open lower, as president trump says he is unlikely to meet his chinese counterpart before march the first tariffs are set to more than double onto an billion dollars of chinese goods. joining us now is sandra crowl from carminac gestion. let's tal

the eyeballs are valuable to coke and pepsi and unilever and all those guys.t the same time, those big brands are looking for different places to put their marketing dollars. they are falling out of love with the traditional big at agencies -- ad agencies. becauserter, a fault clients are shifting money away. a big opportunity but a very little-known opportunity for walmart and others. caroline: it is becoming more well known to amazon. amazon sets the dial here. they started to make significant gains in their advertising. matthew: amazon is a big business. it doubled in size last year. $10 billion. for amazon, it is a huge part of their revenue model now. it will not be a $10 billion business for walmart or target anytime soon, but they are casting eyes on amazon, saying they have been taking advantage of the purchase data. why can't we? scarlet: whyscarlet it makes see -- scarlet: it makes sense why they follow suit. retailers have tried to do this before. walmart 20 years ago had its own tv network. matthew: it was the fifth biggest network in america. 180

>> yes, i do absolutely although germany's beersdorf did not have a good quarter and unilever is down. >> i'm tweeting a picture of my dog. >> i stopped i stopped. i decided not to respond to people who said i looked spo eed about spying. >> we're about to doe t the sho. >> i'm not the one that did the documentary on espionage >> the great burt bacharach. >> sorry about that. >> cramer's mad dash, count down to the opening bell in a minute. keep your eye on the futures also mention this trading glitch at the cme halted trading for several hours. >> ruined my whole evening. >> "squawk on the street" back in a minute. so, servicenow put your workflows in the cloud, huh? mmhm. your employees must love you. [ chuckles ] thank you. you could say that. i love you. servicenow works for you. yeah, i thought doing some hibachi grilling would help take my mind off it all. maybe you could relieve some stress by calling geico for help with our homeowners insurance. geico helps with homeowners insurance? they sure do. and they could save us a bundle of money too. i'm calling geico right now. cell

unilever in 2016.apped on these things so the upside, is it $20 billion, i don't know? but getting to a billion dollars for these companies would be large returns and for the investors in those and i think you hit on a key point, the reason we're launching the dtx company, many companies have used social channel, for them to break through the $107 billion mark, they'll have to use omni channel strategies and that's what we want to help them accelerate is how to get from a potential cap of a billion. >> you invest the platform, not the companies? >> let me ask you this we've not had an opportunity to talk on the air since you left verizon and a lot has happened since then and you had enormous success selling your business to them and shareholders currently give you credit for that however it appears that verizon has tried to undo and devalue and laid next to no value to that creation. so how do you think about that >> sure. so one is, you know, i'm a big shareholder of verizon and a big fan of the strat

they were recently bought in 2016 by unilever, one of the world‘s biggest consumer goods companies andat is how the wine gets in. i am staggered by that. let us know if there is something wonderful you subscribe to. but remember, it‘s a family show. stephanie mcgovern, there is no need to do that. it is coming up to eight o‘clock in the morning. good morning, i‘m asad ahmad. an mp has called for some road signs in chelmsford to be reviewed — after a psychologist proved there were too many of them at a junction for a drivers brain to process. the psychologist had a penalty charge notice overturned on duke street in chelmsford, when she argued that it was virtually impossible to make sense of so many signs. essex county council says its not planning to review the signs, despite the mp‘s concerns. i wasn‘t able to turn around safely. it had a risk assessment, to see if i could reverse back to the mini roundabout which is dangerous and illegal or i could trying go down this tiny lane which was blocked with furniture so my only conclusion was that i had to go for the safest route. london‘s