united technologies buying rockwell collins creating an aerospace giant. it's tuesday, september 5, 2017. "worldwide exchange" begins right now. ♪ >>> good morning warm welcome to "worldwide exchange." i'm wilfred frost. >> i'm contessa brewer in for sara eisen >> welcome back from texas >> thank you had a great team with me a lot of stories to cover. >> hope you had a relaxing weekend off of what was a busy week let's look in on the global market picture comes off a pretty decent end to august when you consider the amount of negative news markets weren't under pressure as much as perhaps the headlines for the month may have suggested a slightly positive day towards the end of last week markets in the u.s. were closed yesterday for labor day. they're starting just in negative territory we were not negative around the world today, but we were negative a bit yesterday the dow down 42 points or so in the premarket. ten-year treasury note for you which has been stuck below the 2.2% level, had a belief flirtation below 2.1%, but at the moment back in the middle

united technologies share price has come down about 3%.ell collins come on the other hand, their shares have climbed almost 10% since bloomberg first reported the talks. it will be very much in the spotlight as the tuesday session opens. dealrms of what is this about, the squeeze they put on suppliers are for higher output, and the higher -- combination united and rockwell are able to create gives them not only a good possession against that, but they are able to offer a broad sweep of products, as mentioned from touch screen displays to the engines themselves, which united patent division makes, which changes the game in aerospace. it will be interesting to watch going for it. aerospace.g bet on what is the state? -- stake? reporter: it is clear that the ceo for united technologies said he would make major moves, and has clearly made one here. it is also important given the follow-up on what has taken place in trying to compete with the big giants. again, they are boeing, airbus, and they have dominated the industry. what is clear is that

united technologies has played an active role in this field.g hayes, the ceo, he pledged a couple years ago that he would be willing to make big bets, and that is happening right now. mark: are there any concerns then, that this deal could be an unwelcome distraction for united? reporter: big deals are always distractions, but united technologies is a fairly diverse company. they have the aerospace component, making up about half. they also have other sizable elements, like elevators and cooling products. this is a company that is juggling these different assets. they made an acquisition that was made as it says a couple years ago. so, they can spin these multiple plates. at the same time, they have issues going on with their new engine for the airbus plane. some people, particularly at airbus, might be looking at this and wondering if they should not clean house first, get that in order before they embark on this next project? rockwell collins itself is a rather chunky asset. that will take some time, but united tech is quite helpful they can

united technologies buying rockwell collins for $23 billion.nder the deal, rockwell share holders will receive $140 per share in cash and stock. that's an 18% premium to the closing price on august 3rd. the companies say the aerospace systems segment would be combined to create collins aerospace systems which would save $5 billion by the fourth year of completion greg hayes will join our colleagues on "squawk on the street" later this morning that happens at 9:30 a.m. eastern time. >>> lego announced plans to lay off 8% of its work force lego reporting a 5% drop in revenue for the first half of the year the company said most of the 1400 job cut also happen s wille end of 2017. >>> and rovio entertainment is planning an ipo. the mobile games studio will list shares in helsinki in a move looking to boost growth the company finally returned to profit in 2016 following the angry birds s 3-d movie. there will be a share issue of about $35 million. >>> a check on the global markets, see if that's part of the problem today with the u.s. markets which

does this deal sort of makes sense for united technology?s like there's a lot of consolidation in the aerospace industry right now? >> we have seen consolidation pick up steam over the past year and the biggest one in the space recently and i think it makes a lot strategic since, creating the world's largest eversupplier which is $40 billion in revenue which is tops of the ge's at honeywell's of the world for given -- of the world. -- given the opportunity they see peru the question -- they see, and of the question mark, fully valued at the most interesting and the most interesting aspect given the high margins and cash flows. that is another question is the financial aspect. julie: and another question is focus, right? digesting and acquisition and there's been a lot of consolidation and airbus today releasing a statement and undeveloped, not a from -- unveiled, not a threat but a it suppliesn engine to airbus, questioning united technologies ability to keep its eye on the ball while it is digesting the rockwell collins acquisition. do you

. >>> first united technologies formerly agreeing to buy rock well collins.l crying foul. let's get to chicago for the details. hi phil. >> we're talking about the rival and strongly worded stra eed stt you usually don't hear from companies when it comes to kp competitors merging. the other third coming in cash. rock well collins they're going to kohl it collins air row space. erospace. some people are wondering if this will give united technologies too much control when it comes to aifonics or the aerospace industry. we don't see a problem with trust lregulations. here's what he said this morning. >> it's the very little overlap. the risk we think is very low. we'll release companies together. we can create value for customers by bringing the businesses together. >> well, one of their customers is not very happy. that customer being boeing. oolts of these aifonics, they're be going into boeing airplane. should we determine this deal is inconsistent with those interest, those interest being keeping cost as low as possible and driving down -- driving in value

yet you can see united technologies down over 4%.been an expectation there wouldn't be quite as much stock as there is. it's about two-thirds cash, one-third stock. perhaps some of the other things we're hearing, 500 million in synergies and mr. hayes said shouldn't be a problem at all given what they got out of goodrich at all, 6% of sales overall. the marketplace, at least right now, saying not that excited about it. >> we'll see time will tell. >> yes, it will. >> when we come back, possible new battle brewing in congress as the trump administration is expected to end a program protecting some immigrants who came to the u.s. illegally as children we'll take you live to washington for the latest. live shot at the justice department dow is down 118. stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matte

united technologies is to buy rockwell collins for $23 billion. the deal his $140 a share in cash and united stock. united technologies says it is funding the cash portion through debt issuance is an cash on hand. andof the biggest deals aviation history is expected to close by the third quarter of 2018. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. a says theth korea' north is moving in icbm for a possible launch before saturday. earlier, the u.s. ambassador to saidnited nations pyongyang was begging for war. korea live in seoul, ahead of saturday. is it still business as usual? on the ground it feels that way, but there is a feeling that things are a little bit different this time around. the news that just hit about an hour ago is raising tensions that wein in these days have been here after that nuclear test. these reports locally saying movingrth korea has been this potential icbm during the night here. it seems to be possibly launching this before saturday. 9e sign

as we take a look at the big movers, take a look at united technology, the huge deal in the aerospace sector, a $30 billion deal or $140 a share in cash and stock market equity a big part of the deal. that's why some analysts say that could impact united's earnings in the near term. if there's a silver lining or a gold lining in any of those. take a look at gold. now up 10% over the past two months trading at the highest levels of the year a lot of gold miners got hit guys, that's the story there back to you. >> seema, thank you. we'll see you at the close another issue facing the market, maybe the primary for some those increasing tensions with north korea after that huge bomb test over the weekend. nbc's ron allen is in seoul, south korea, with the latest details. ron? >> good afternoon. the situation here keeps escalating again today, too, amid reports that there's indications that the north koreans are planning to launch more missiles perhaps as soon as this weekend there's a major holiday in north korea, a time when the north tends to take these actions to celebrate, if you will,

. >>> united technologies. industrial said it was buying aircraft maker rockwell collins for $30 billion including debt. under the deal the company said they will combine aerospace unit into a new business called collins aerospace systems. ceo of united said the key is increasing customer value. >> 30,000 new aircrafts are going to be delivered in the next 15 years. aerospace is growing dramatically. up 5% every year. growth is coming in the aerospace business. with that growth comes pressure from customers to take cost out. continue to innovate. having scale in the aerospace business is absolutely essential. if you're going to deliver the value to the customers that they expect. >> shares of united technologies down 5% at 111.21. rockwell collins shares up slightly. finishing at $131 even. media company trunk said it was buying the tabloid newspaper the new york daily news in effort to grow digital audience. owner of the chicago try bind a -- tribune and paid $1. resume about $60 million of liabilities. >>> fed

aerospace industry, you have boeing dominating and these are major giants that rockwell collins and united technologiesin a combined aerospace unit will be calling college aerospace system -- it will compete with them in a very big way. will offerd company a broad product. it runs the whole gamut of commercial aircraft. cockpit displays, communication systems. you have the pratt-whitney division. from cradle to grave they can really create major products here. >> you mentioned it was a game changer. united technologies going big on aerospace right now. what is at risk right now? theirfollows up on purchase of goodrich. they had a major investment in an engine that altered this year. this will be a test of how committed and how successful they are in effectuating these major acquisitions. when we go into the video, we can see that what we have in terms of the competitors boeing and airbus -- it is a real challenge. alreadyl collins is making its largest acquisition in its history. you have seen warren buffett himself making major aerospace deals. this is one of the strong performers this year in the mar

united technologies buying rockwell collins creating an aerospace giant. it's tuesday, september 5, 2017. "worldwide exchange" begins right now.

the aviation deal with united technologies.ying rockwell collins for $30 billion. -- $423 billion. -- for $23 billion. anna: the next story is theresa may's big brexit speech at that may happen on september 21. letdate may have been slipped, but it was refuted. they have made no secret of the fact that there will be a speech, but just the question of the day. september 21, will she or won't she? let's talk about the final story. the vast majority of the fund managers are not prepared to meet the next execution -- the best execution report requirements. that but -- the deadline gets closer. congress gets back to work today. many people who consider themselves to be americans could find themselves in legal limbo. president trump is said to be looking to end an obama era program that prevents the deportation of immigrants illegally brought to the united states as children. manus: let's welcome kathleen hunter. jane foley is also alongside kathleen. the deferred action for childhood arrivals, just one of many challenges that congre

i have a position in united technology, utx, along with some other analyst base industrials united tech is the position i have some lock in, some xli. when utx -- when the rock well merger happened, utx is ipped, some people think it's dead money. i see it as a possible opportunity to further add the money -- >> lee, i have to tell you i couldn't agree with you more it is now allowed you to buy united technologies is the -- less than where it was before i one on vacation. if isn't an opportunity i don't know what. i think -- i would tell you to buy more if you didn't already have so much how about jeff in kansas jeff >> bowie ya tim. >> bowie ya. >> first time calling so thanks for taking me call >> excellent >> recently i've increased my position in a corporation, my family -- so i'm asking your take on ccl carnival >> well that's one of my absolutely favorite ceos he has done a remarkable job whether it be with the incredibly rise and gross margins. he has competition because royal's a terrific stop. norwegian's good but with arnold donald at the helm, the incredible turn of carnival

remember apple, caterpillar, united technologies or even macys, i think when you do you'll look back and recall buy low, sell high, quick investment strategy who would have thunk it. jacob in indiana >> bowie ya jim. >> what's up >> last stock earnings in the last three quarters, recently took a hit from irma before that a 52 week price performance was suffering. it bounced back yesterday, made small recoveries today i still don't understand the stock's museum my stock is uve, does it have room to run? >> before anyone applies for an insurance company if you do not know the exposure of that company to the storms themselves you're being reckless, i will not be reckless i'll look into what universal insurance holdings exposure is between wilma and katrina there were insurance companies wiped out. allan in new york. >> jim, let me be the first to wish you an undefeated eagles to you. hopefully not the last >> i don't know,i'm so super sti stishs my wife asked me why do i go out the same door i go out in, i've been doing it for 50 years i used to order green jersey every single time, the

united technologies has agreed to by rockwell collins for two $3 billion in cash and stocks trade the deal will give the combined company -- united technologies pratt and whitney -- apple has returned to the bond market. the iphone maker is offering its .ebt and's many as five parts apple is about three fourths of the way through a $300 billion capital return to shareholders. steve: could be planning a new hedge fund. sure bridge capital has advised potential clients about the new firm. between $2ise billion and $10 billion. inlty to securities fraud 2015. your business flash. mark: gold has been searching on tensions. that is next. this is bloomberg. mark: this is bloomberg markets. julie: it is time for our tuesday etf smart data segment. investor starting to jump back into the biggest gold miner etf in hopes of profiting from a breakout. trying to tie this etf has been a disaster for most. joining me from princeton is eric balchunas. first of all, set the stage for us. if you look at gold miner etf's, why have they been so challenging? eric: they are very volatile. at the volatilit

united technologies stock down about 2% in the premarket.ig stocks to watch today on this tuesday. finally, the new york daily news has been sold by owner publisher mark zuckerman. he's owned it since 1993. the publisher and the "chicago tribune" with all debt and pension liabilities for the tabloid magazine. circulating the paper. no cash will change hands in that deal. that is what's happening right now. congress on their way back and they've got a lot to do. they've got to keep the government open. they've got to raise the debt ceiling, that can ceiling, but can they get all of this done? gop strategists and conservative commentator kirsten haglund democratic strategist pablo manriquez. good morning, guys. that's the question. can they get all this time of 12 working days between the house and senate? >> they definitely have a lot on their plate. the senate and republican leadership as well as the administration wanting to not win before the year is out. it's kind of like a bunch of procrastinators have waited until the last minute to do

they got a solid book of orders and the stock keeps climbing when united technology announce additionsf -- i thought people were way too fix sated on the cost of acquisition. then yesterday, we had one of the largest shopping center owners in the country, jim taylor made it clear despite what you read about amazon destroying retail, he's got to problem finding new tenants. i think the answer is that thing a roe got numbers simply don't catch the real real activity i point this out because the dow jones industrials keep going higher people remains skeptical that anything can happen industrially here and around the world. bricks more, eden, logistics, caterpillar and united technologies pain a picture of what's going on here there's a much better story out there if you just bother to look under the hood >>> tom in state of pennsylvania tom. >> caller: boo ya jim, thank you for taking my call i'm calling about louisiana pacific lpx. i'm wondering if it's time to buy more. >> no, tom, everybody knows this story now it is played out if i had to be in one of them maybe i'd be in a railroad b

isyou look a airbus which the equivalent to boeing in a this issue on it relies on united technology rock well for parts. they came up with a slightly different one that they recognize the are doing the deal and they remain focused and do not get -- julie: does bowling have a point how dominant is this combined company going to be? ,d hammond: it is very dominant they're the biggest supplier or maybe second-biggest of boeing 15 rockwell is top 10 or top a you can pull it up by looking at it. youi think the argument could make is as that the customer base is way, way more consolidated. you look at boeing and our bus and they have these 2 monster company -- airbus and have these 2 monster companies. for it gives of them power, nothing compared to the powers which havend airbus become more pushy and amending recently in terms of squeezing the supply-chain on cost. julie: it makes it seem like they were not have that strong of a case? wouldmond: i think they have a strong case but whether it has effect remains to be seen. julie: are there any other, you said boeing rolled out making a bi

rockwell collins an united technology together actually make the largest aviation supply company. you did see rockwell collins gaining one third of 1% that we use types of trading that representative little more safe be that going to golden treasury, utilities and all those together. cheryl: they certainly wait weighed on the market today and also the banks, goldman sachs and morgan stanley if they don't see tax reform and regulation stays in place they would have issues as well. there's so much to cover. nicole thank you you did a great job all day rated u.s. attorney general jeff sessions ran down the law calling obama era protections for so-called dreamers unconstitutional. remember when president obama once agreed with the a.g.? listen. >> with respect to the notion that i can just suspend deportations to executive order, that's just not the case because there are laws on the books that congress has passed. congress passes the law. the executive branch's job is to enforce and implement those laws and the judiciary has to interpret the laws. there are enough laws on the books b

about united technology $23 billion acquisition of rockwell collins. ave been squeezing the discounts and it wasn't they will take action to protect them. the united shares plunge in more than two years yesterday. while companies say the manufacturer risks are downgraded. electric caring to relief. they have introduced their first makeup the model sense seven years ago. it includes autonomous parking and a increased driving range. soldberg data says they 40,000 cars last year that 50,000 units less than the tesla model. bloomberg a couple of minutes ago. on the julyown figure of 51. still above the 50 level from theraction as we approach ecb decision tomorrow created that kicks off today. here we see the dollar of one quarter of a percentage. strategy at cibc. is positive in the short term. bullish ahead of this meeting, slightly negative a few days ago. euro you see a bullish with this? >> we have been bullish on the euro for quite some time. it was north of 120 last week. a ratherhat would be brave trade at this juncture. i think there is not a risk r

let's take a look at the stoxx behind, boeing and united technology. raised its price target to $300 we also have calendar bullish on this move, saying it could move the profit outlooks. united technologies up about 2%. there's some strength here for the dow. let's take a look at two stocks faring a lot less well. adam jonas over a morgan stanley has cut his ratings on hurts to an underweight, saying the path over the last few months. some of it related to hurricane harvey shortages, it's overdone so he has taken his ratings down on those shares. credit split has reaffirmed that view, as well, saying the pop from hurricane harvey is overdone. let's take a look at bitcoin, this is a one-week view, down about 25%. it's worth five days since january of 2015. aboutdimon was talking the idea that bitcoin good be in a bit of a bubble. that oneave the news of the china exchanges at the end of the month is going to as theading for bitcoin chinese government crackdown on cryptocurrencies. what's next for bitcoin? 23, it's obama's 500%, even with the drop we are

united technologies with rockwell collins. that was down 6%. travelers along with insurers has been hit hard today. look at insurers that have florida exposure. we're keeping such a close eye on all things harvey, but now hurricane irma, in the path on the way, across the islands, then up to florida. so take a look here. universal insurance, 15% lower. hci group, 20% lower. the rest same story. new 52-week lows for some of the names but getting hit hard. gold, oil, 10-year bonds, these things are moving. the vix, look at the vix, the fear index, that is up 23% right now. this as gold moves to highs of 2017. you saw the treasury yields, 2.08%. that yield dropping lowest since november. melissa, dave? david: nicole, thank you very much. phil, as we heard from nicole, both oil and gold climbing again today. north korea, it is the fear factor. gold is up near a one-year high. how high will it go? >> i think it could go higher, dave. this is a major breakout for the gold market. we've been talking about the gold going up higher. the crypto currencie

united technologies up 68 cent. that's a new 52-week high of $35.75.news on prostate drug showing success in late stage clinical trials. >>> and tesla investors in overdrive at this hour. up 2, nearly 3% for tesla after elon musk, the ceo teased a major reveal. musk tweeting earlier that october 26, he's going to introduce something he calls the beast. an all-electric semi truck for heavy duty long haul truck. tesla, the biggest gainer on the nasdaq. >>> president trump pulling out all the stops to push the tax reform forward and considering a controversial move that might raise eyebrows within his own party. charlie gasparino has the details. charlie breaks it next. nah. not gonna happen. that's it. i'm calling kohler about their walk-in bath. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] mmm. the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bat

a tech deal as an rumor for several weeks and now united technologies says it will create a new aerospacent. united is buying rival rockwell collins for $30 billion in that includes assuming a mountain of debt from rockville. it has been hit in recent years with disputes from its key customer, airbus. up evil in legoland. -- upheaveal in legoland. they are downsizing after they posted their first drop in sales over one decade. over 1400 jobs are on the chopping block. reporter: these blocks are a hit with children worldwide. there is hardly a kid in europe or the u.s. who is not played the classic toy. and lego has enjoyed double-digit expansion in china as well. one growth factor, the companies licensing deals with major franchises like star wars. but this year the danish toymaker has seen its fortunes turn south. sales and profits are down, which is why lego is looking to cut staff and shrink its hierarchy, meaning 8% of its employees will have to go. >> we are now aware we have an organization that is too complex. we have learned a lot in the last year. between 2012 and 2016 welcome 70

look at united technologies though, it's down 5%.estors apparently are worrying that such a big acquisition uses up cash that might have been spent in buying back utx shares. you know that financial engineering? anyway, you know, investors like that because it gives the stocks a bump. but for now, this is a merger that appears to be to going through. what about the customers? well, the customer of both, which is boeing, ringing alarm bells saying it is skeptical the deal would add value to boeing's customers. right now down about 1%. and one of the most distinct voices of new york is off the market. media giant trunk has acquired the new york daily news, adding the tabloid to its portfolio that already includes chicago tribune and the l.a. times. trunk paid $1 in cash plus the liabilities of which there are many. this was a nearly 100-year-old newspaper, the daily news, it used to be run by mort zuckerman, and now tronc will have it. at one point, it was the most widely-read newspaper in all of new york. >>> let us get to a very pres

and there's united technologies on the top left and corner. this is a very big deal.is a very big deal for boeing over in the united states because it could end up changing the relationship with their supply chain in a meaningful way. it is going to be interesting to see other markets react. the other company and want to a storyis, there is that could be looking at a confectionery business. china's new strategy of taking this company of market and taken it more into the health sector. 1e valuation could be between billion and 3 billion. the stock over one year earning up to 1.45%. european stocks look better this morning. we'll keep an eye on what effect north korea is having as well. this is bloomberg. ♪ ♪ guy: minutes until the cash open in europe. guilt trading, what are we anticipating? aachers have softened up little bit. we won't see a riproaring start of the day. dax,tse 100, the cac, the called up .2%. ways, that is a fairly quiet market against a backdrop that should be providing a little more volatility. the other thing to mention is where the volatility is.

mind that just an hour and a half ago, david faber was talking with greg hayes, the ceo of united technologiesand he said, point-blank, we do not see anything that will stop this transaction. so, guys, what we're looking at right now is boeing saying, you know what, with we disagree with that, and potentially, we could see boeing going to regulators saying, stop this deal from going through. unclear whether or not they'll actually do that or if it would be effective, but we expected boeing to have strong statements on this deal, because it is getting into the i haveavionics business and that's what we're seeing here. >> phil, thank you interestingly, more than half of the dow's drop today is goldman, boeing, and utx. we're back after this with art cashin on today's markets. don't go away. not rebalancing your portfolio. pursuing your passion, not reacting to market downturns. focused on what you love, not how your money will last through retirement. let us help you with those decisions, and get on with your life. we make it easier to plan for retirement with day one target date funds from prud

in one of the biggest transactions in aviation history united technologies agreed to buy rockwell collins23 billion. the deal creates an aircraft parts giant. united tech makes engines, rockwell collins makes aif i don't knowics, cabin electronics and cabin interiors. the deal still has to be approved by rockwell shareholders. >>> and some security changes at pittsburgh international airport starting today. people without a ticket will be able to pass through security and go to the gate just like before 9/11. you'll need a valid driver's license and passport and your name will be run against a no fly list. the main reason for the change, it gives more people access to airport shops. >> a lot of these airports are like malls now so i can hopefully those people have a separate security line though because we probably don't need more people in the security line when you're trying to make it to your plane late. >> not as much as we travel, no. >> right. thank you very much, hena. >>> still ahead, rodger federer cruises to another win at the u.s. open after being sidelined by injuries last yea

suspect of oil showing a front month, it is not the right number there >> goldman sachs and united technology a lot of stocks are down we are covering it all for you with more on today's big drop. >> seema mody. >> technology and financials are lower. the yield as you mentioned is on track. that's having a negative impact on u.s. banks, goldman sachs is responsible for a quarter of a decline today. bank of america is having one of its worst day in a while tech valley to a busy september. traders here are focusing on the progress of debt ceiling and funding for harvey and upcoming hurricane irma and policies of the latest provocation of north korea. we a cancellations from harvey could hurt earnings. take a look at royal caribbean and carnival trending as low today by as much as 4% >> down about 3% on average as analysts try to assess the damage what has been working is gold. it is now up about 10% over the past few months and trading at the highest level of this year the safety trade is gaining strengths copper and oil is higher on the back end of chie m china. management remains optimistic o

the other thing you would think rates logic is united technologies has a big aerospace business alreadythere are elements that they do not do that are more in line with technology. worth noting that rockwell just consummated a deal to buy a nother aerospace company. so it is almost a merger within a merger within a merger. julia: it was interesting to see boeing come in straightaway today saying they were cautious. does it give more power to push back against boeing. does it give them more ledgers -- leverage? >> it does. airbus was a bit more singling. -- airbus was a bit more sanguine. they politely said something like doma's this up. -- like don't mess this up. my colleague made a good point this morning, which was that if during this merger integration they sort of mak mistakes -- make mistakes and there are delays, that will give customers more control. it will be interesting to see how it plays out. the question is what boeing can do. julia: and? >> we don't know. they could maybe go to regulators and say this is anti-competitive. they can look as hard as they like, but whether or

down 106 to be precise. >>> we have united technologies, that stock is down four bucks.ins, up to $30 billion they are going to spend. united technology is a dow stock. that is big drag on the overall dow jones industrial average. i want to go back quickly to jeff flock. last time we saw him, he was helping a stranded family in houston. they refused to leave their hopes. jeff arrived by boat. what is the latest, jeff? reporter: back in the neighborhood again, jeff. you wonder what places like like inside? we're almost up to our, we're about as far as we want to go up to our neck here. this house over here, that you see, maybe some water gone down. about a foot. what does it look like? we to the pictures. with a fellow that went back in for the first time what it looked like. everything is floating there. these are what these people are dealing with. as i reported last hour, most people do not have flood insurance. how they will recover from this is real good question. look at this. we're 10 days out. stuart: just dreadful to see that kind of thing. all of us can associat

serious about carrier he would have found some way to put the brakes on he could have said to united technologies if you move the jobs to mexico i want to review every contract that you have meanwhile the steel industry is still suffering waiting for the commerce department to finish a report on unfair trade china and especially south korea are dumping steel at a rate which threatens the entire steel industry in america tax cuts are an easy sell in washington. but increasing wages and workers' rights is what the middle class seems to be focused on when do you hear people getting on the talking heads whether they're democrats or republicans on political talk shows getting up and say you know the reason that wages have been flat in america is that there's been an attack on the labor movement since ronald reagan and the labor movement has gone from thirty percent to thirteen that that didn't happen as an accident that happened because there's a plan by corporate america corporate global companies to push wages down to reduce workers' right to have a vote in the society work reduce workers' right to

orbital specializes in rockets and earlier this month united technologies bought it for $2.7 billioner>> new records on the way for the dow and s&p. big gains last week. the tao of 58 points. an all-time high. s&p also up. the nasdaq gaming 20 points in the early going.>>> we will have another check a traffic.>>> it is so bad out there along south bound 680. there some relief in sight chp just reopened the lanes along 680 at north main street. we've been tracking and earlier accidents -- two separate accidents and that caused a backup. the backup continues to stretch spilling onto highway four. that's a live look a 26 minute commute from the interchange down toward highway 24. we are seeing slow downs if you're making your way across the bridge. no problem just crowded, 14 minutes in the westbound directions no delays east bound. westbound 80 right near carlson you can see the traffic with a lot of rake lights 24 minutes down towards the maze. another 27 minutes getting across the upper deck into san francisco. on the san mateo bridge stop and go. a tough day out there.>>> as if hurr

united technologies says it is funding the cash portion through that assurances and cash on hand. one of the biggest deals in aviation history is expected to close by the third quarter of 2018. the u.s. house of representatives will vote wednesday on a hurricane harvey that will contain language aimed at staving off a default on government debt. republican leaders are for now the bowing to the demands of the and conservative members, won't combined registration, which would raise the u.s. debt ceiling. the bill would provide almost $8 billion in aid. and mexican president have pledged to defend multilateral free trade after meeting on the sidelines of the summit in china. told xipena nieto jinping that nafta had promoted growth, competition, and prosperity in north america. however, bloomberg is told the latest round of talks is nearing conclusion without any major breakthroughs or new agreements. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm haslinda amin, this is bloomberg. rishaad: let's revisit north korea. lifel

united technologies is the biggest one on the tao one day after announcing it would swallow whole russell collins. two wall street firms cut their price target. to puerto rico. it is right now in the path of the most powerful storm ever recorded. the island territory not just a draw for the beautiful weather but hedge fund types. and then others for tremendous tax breaks. they will tell us what they see in the moment. the two residences at there. one of them had been evacuated. will get right back to count on. poor mouth breather. allergies? stuffy nose? can't sleep? take that. a breathe right nasal strip instantly opens your nose up to 38% more than allergy medicine alone. shut your mouth and say goodnight, mouthbreathers. breathe right. >> we are watching the clock very closely. it is less than five hours from puerto rico and the 3 million americans living there in the line of fire. the storm's outer band you can see that right there. already whipping the famed beaches. residents of the island paradise now preparing for the very worst. they moved to puerto rico in the past couple of yea

including the stock i told you to buy at 109 the other day, united technologies. sneak in ar conic here, one of the remaining players not snatched up. going on for months, what is take so long final reason so shrug off the apple fang blues oil. repelled oil for ages and probably do it again but didn't count on the short-term demand for crude because of the hurricanes if i were to short these stocks fear updates from lurking bulls in bears' clothing and want to desperately recommend the one area of value left in this market, petroleum. even as we know from alpha, short sellers targeted as hapless and lacking spending discipline not wrong. but bottom like, only a rotational play. doesn't take much to get short-term rotation going. even if many of the moves might not have long-term staying power. not saying relax and enjoy the ride opposite that's complacency, i'm saying observe and understand make sense of the action steve in virginia. >> caller: colonial boo-yah from gainesburg >> what's up >> caller: long-time viewer going back to todays with larry and cramer than

. >> united technologies snapped up rockwell collins $423 billion.e of the biggest takeovers in aviation history. makes a lot of strategic sense, clearly creating the world's largest aerospace supplier with $40 billion in revenue, which tops thege's and honeywell's of world. it creates a tremendous opportunity for scale. the financial sense is a question mark that has yet to be answered. 14 times ebitda is good value. i think that is another question that remains to be seen, the financial aspect. forhird time's the charm schneider electric, the french company reaching an agreement to take control of british software maker of eva. it remains to be seen how that goes through. it's an interesting deal structure. they are getting control of andt 60% of the shares, it's like a reverse takeover almost. the deal is definitely happening. there's complexity of untangling the business. has a lot changed since the last two failures? aveva is arguing they have spun off some of their businesses. the markets have changed over the years. let's see how shareholders

growth where we can have some ideas in the public market and. >> i want to ask you about this united technologye seem to be living in a moment of monolithic companies. you've got amazon dominated the retail space. now you have united in making this big deal. what does this mean for investors in what is aiming for workers when you have so many big companies to dominate the economic landscape? >> means a couple things. companies have a hard time growing in if you like they can grow and get more efficient with more workers. richard also said about job growth is it does usually lead to jobs being lost. big company mergers obviously provide legal departments. it also says all the job growth, a lot of the job growth we've seen has been emerging growth companies. if you look at statistics, dashed >> would've less now because the big guys are dominating so many markets. from an investor perspective, should they be putting their chips on the blue chips and not the smaller? >> as you said a lot of investors looking at the companies. emerging growth companies have gone public yet these are the winningest

voicingnd airbus concerns about united technologies acquisition of raw well:'s. -- of rockwell collinsare merger will embark on the biggest production ramp up for single-i'll aircraft, their largest source of profits. emerging from an aggressive effort to slim down with promising prospects in stronger sales. revenue rose 2.5% to $8.2 billion in the third quarter, the first time in five quarters that the business technology provider has beat estimates. andomers are buying storage networking gear, although server demand was slightly down. rishaad: pimlico's total return fund once the world's biggest mutual fund to see is biggest and flow in four years. saw parliamentary net inflows for august of $348 million, not including reinvested dividends. that takes total assets for the fund to $75 billion, the increases the first since 2013 when assets peak at $293 billion. recapping all straight second-quarter gdp data coming in at 1.8 percent, slightly disappointing against estimates of 1.9%. our next guest says we should not take the figure at you. he joins us now from melbourne. david come in

i don't think greg hayes, the ceo of united technologies was as good as you charles in new jersey. >> caller: boo-yah gym question for you long-term take on clr? >> it's okay long-term, it's been wrong in short-term but long-term, as i tell club members, it's apache, apa. still believe in alpine high and mr. crispin. rochelle in new jersey >> caller: calling about anthem. it's true in the last couple of days it did creep up somewhat. however within recent history it did go down about $14 from 196 high to 182. i was wondering why that big drop what do you think about the future >> political story went down on politics. same with united health. all buys i like that group very much. charlotte in texas >> caller: hey get them aggies. >> i love the aggies what's up? >> caller: calling about pfizer. reading up on it, seems like going in direction of taking about four of experimental drugs, decided to shelf and putting into new company springworks therapeutics i've come in a large quantity of pfizer stock and wondering where should i go with it? >> hold on to pfizer stock it's doing a terrif

united technology's buying rockwell collins for $23 billion. t gives united greater strength in airline components, rockwell specializing in cockpit and communications technology. they own several other businesses including carrier air-conditioners an and otis elevators. >>> dow is down in the early going. nasdaq and s&p are also down. >> thank you, jason brooks from kcbs radio. >>> time now 6:49. let's check traffic with jaclyn. >> we started over on the eastshore freeway last time and we're heading back over there because we're tracking a new motorcycle accident and this is continuing to keep your ride very slow along westbound 80. if you are heading in this direction, be prepared for brake lights. we have speeds dropping below 15 miles per hour. this crash westbound 80 at gilman street, we have one lane blocked and traffic is a mess just trying to get over to the bay bridge toll plaza. there's a 42-minute commute from highway 4 to the maze and then another 30 or so heading into san francisco. there's macarthur the spider. good morning. we are

you think that the government would want united technologies to own a huge part of the plane to the point where it becomes such a powerful supplier that can box out honeywell, i don't know if the democrats were in charge they'd block these deals, they'd be justifiable even the mergers that were blocked in obama times --. look once investors start to recognize the companies are given a free pass that will be a huge positive for the market i want to be skeptical of this rally, we have had a much too much big move than i thought could happen some of these valuations are difficult to defend. i think it's worth taking some but whether you see these kinds of deals, the bottom line is it's hard to be as disciplined as you might like. when discipline constantly cost you money you have to worry if your discipline's misplaced. after all, to be in has been the smart call if the justice department really decide to look the orr way then this waive of mergers is still hurling and it will last for as long as the market keeps greeting each deal with tremendous love for the inquirer tonight, the market lo

. >>> speaking exclusively to cnbc, united technologies ceo greg hayes defended the deal >> is the right deal the reason, 30,000 new aircraft will be delivered in the next 15 years. the aerospace business is growing dramatically we see passengers up 5% every year growth is coming in the aerospace business with that growth comes pressure from customers to take costs out, continue to innovate. having scale in the aerospace business is essential if you're going to deliver the value to the customers that they expect >>> the german savings bank association warned small banks are being choked by regulation that's been designed for big banks. annette ta spospoke to george fahrenson in frankfurt >> the regulatory burden we have the regulatory systems and rules, they were developed for the big international engaged invest ba investment banks and even in europe, too big to fail we are coming to a situation where he can have to discussion too small to succeed and survive. so europe has to act soon just to get the right solution for our very stable and resilient diverse banking industry in europe es

. >> a major deal in the airspace sector as united technologies snapped up rockwell collins for $423's one of the biggest takeovers in aviation history. >> i think it makes a lot of strategic sense, clearly creating the world's largest aerospace supplier with $40 billion in revenue, which tops the ge's and honeywell's of the world. it creates a tremendous opportunity for scale. given the growth opportunity they see it commercial airspace. the financial sense is a question mark that has yet to be answered. 14 times ebitda is good value. granted, it was probably the most interesting effect in space given high-margin and cashless. -- cash flows. i think that is another question that remains to be seen, the financial aspect. ♪ mark: third time's the charm for schneider electric, the french company reaching an agreement to take control of british software maker of eva. >> the shareholders have not faltered on the deal, so it remains to be seen how that goes through. it's an interesting deal structure. they are getting control of about 60% of the shares, and it's like a reverse takeover al

in houston united technologies shaking things up in the aviation sector announcing a mega deal to buysidy competed with united technologies while at honeywell. probably not totally surprised by this deal in the works for awhile make sense >> you know i guess it does make sense for utc. i think rockwell collins was a more significant competitor on a stand alone basis than they'll be with utc. i think customers don't like these big suppliers, because they lose their power in terms of exercising of price so i think it's a good thing for honeywell indirectly in other words i think they'll be the recipient of more business, because customers, big customers, boeing and airbus are going to be concerned about the size and the potential power of new utc. >> what was it was it a defensive deal? an offensive deal? was it a deal you do when you're growing gangbusters, or a deal you're doing because you're not growing gangbusters? >> number one, honeywell took a shot at utc last summer and didn't go any place. they've got a great business in elevator, turns a lot of cash, no growth. they think the