greg hayes, the ceo of united technologies, who will also be the ceo of the combined entity known as he call, really talking about numbers, cost synergies, free cash flow, this idea of a more resilient, more sustainable company that will be well positioned for growth over the next decades and ceo tom kennedy of raytheon, who will be chairman of this newly merged company, this merger of equals, also sounding off with comments about what the two will bring as a combined entity as well take a listen. >> sounds -- >> we're listening. >> sounds like the sound bite wasn't coming in, but again, utx owns -- will own 57% of this raytheon's shareholders will own 43% of it. both of those stocks are up sharply this morning on this news and joining us right now to talk a little bit more about all of this is united technologies shareholder tim lesko. he's a partner at granite investment advisors. they own under 73,000 shares of utx. what do you think of this deal >> on the surface, it looks like a pretty good deal since greg hayes took over at utx, he had set apart a honeywell-like divestiture of s

close next year after united technologies us -- technologies is separate its businesses.re are additional agreements between the u.s. and mexico the public does not know about. a day after he said that the u.s. will make large purchases -- mexico will make large purchases from the u.s. the deal and the threat of u.s. tariffs on mexican goods for now. president trump acting budget chief reportedly wants a delay technologyin chinese huawei. he said the blacklist could lead to a big reduction in the number of companies that could supply the government. the chief executive of hong kong vowing to press ahead with controversial extradition legislation despite massive protests. estimates up to one million people demonstrated in one of thisity's biggest protest, since the former british colonies returned to them more than two decades ago. it would allow for more extradition to mainland china. global news, 24 hours a day on air and @tiktoc on twitter powered by more than 2,700 journalists and analysts in over 120 countries. this is bloomberg. tom: thank you. extraordinary images o

expecting to close in the first half of 2020 that will be when united technologies is spinning off thes elevator and carrier hvac units. when that spinoff happens is when you'll expect this deal to close. in addition to it being the second largest air and space company behind boeing, it's going to be the biggest defense prime. it really does, as you mentioned, bring together poo poo% defense it will be bringing together many different parts of the supply chain and many different programs raytheon's the largest producer of missiles and they have their hand in every major missile defense program out there as well as things like the tomahawk, hyper security and all of the next generation technologies that the pentagon is looking to develop more. >> morgan, i know when these deals happen they love to say we're a merger of equals sounds like this is really united technologies taking over raytheon >> reporter: they're going to have the larger stake. we're going to be hearing more about this there's an 8:00 a.m. investor call and then the ceo will come out and do some interviews yeah, you're

strategically it is a great deal for united technologies.f the outstanding questions you still have? eff: definitely the pace of the migration of the businesses. 2020. looking into we will look to get more details on that as we go through it. is full approval process always at risk with any merger or acquisition. it seems like it is less onerous than we first anticipated. it looks like there is only 10 jurisdictions we have to go through. alix: are you can -- david: are you concerned about management bandwidth? as a practical matter, that takes a year or two, they are distracted and not inventing new products. jeff: that was one of our concerns and one of the surprises that developed over the weekend. they have a lot on their plate. they trying to address some of that in the call, talking about how this is a corporate initiative and not taking away from the operational focus that the businesses have, but that is definitely still an issue when talking about the sea suite and people having to manage the day-to-day operation. this is probably o

united technologies is my answer.riple v and surging to buy because of raytheon because raytheon is a higher rated company. this is an all stock transaction. you can see the idiosyncratic event is what caused the bonds to search. throughout the market, cbs for example is in for the market. you have general electric which has gotten a boost as they sell off some assets and try to shore up their balance sheets. there are deleveraging stories that have propelled the gains and given fundamental reasons for optimism. the question is whether we will see the downgrade wave people are worried about and whether there could be some pain. right now, the specific story seems to be on the positive side. scarlet: thank you. we will stick with bonds. what has become clear is the days of rising income rates are over. look for whole business securitization backed by some of america's best-known restaurant brands to be on their menu. why are restaurant chains the best candidates for this kind of securitization? why is it a good fit? th

i would buy united technologies today. i want to thank dr. tom kennedy and mr. greg hayes >> throw it in, jim! >> we'll get to the opening bell here and a look at the s&p 500 at the big board is the bank of montreal celebrating their three-times lo lon long,. we have not mentions sales force. i know we got to let you guys go i appreciate you coming on >> straight shooter. >> thank you >> fantastic >> sales force deal. sales force is down huge very similar deal, seven days later, sales force of a total coverage you buy sales force today, he's getting adam lipsky, tabloid data used to be less cloud $30 billion for benioff, buy, buy. sales force was interested. >> oh, very much >> it was not fair when i talked to mark, i was so thrilled of what adam was saying this is acombination where you can use the dashboard on top of us, 360. that was the missing piece of the puzzle a lot of people can argue they pull ahead you will see microsoft is up you can argue it is not so great. how much it is negative for adobe. i think those two have been hammered it is a great deal f

third, we will create a ton of jobs. 20,000 jobs a year between raytheon and united technologies. ented job creation and high-value, high technology spaces. ed: have you spoken to the government already? greg: we have had some conversations and a look forward to having more conversations later today. we will have an opportunity to explain to everyone why this merger makes so much sense. it will increase competition, not hurt competition. ed: talk about the headquarters being in boston. that is where raytheon is based. what does that mean from a tax perspective? tom: the tax perspective will remain the same. we don't see a major area there. we do see the ability to leverage technology that resides within the boston area in terms of the engineering folks and sciences we can hire and bring into the company. -- scientists we can hire and bring into the company. we will be hiring over 20,000 people a year with this new company. we need as much talent as we can get. boston is one area we can bring that talent. one other element is that the department of defense is going through a major m

united technologies and raytheon will create a new company.ned company will be the second largest in aerospace by sales behind boeing. united technologies makes everything from jet engines to elevators and owns pratt and whitney. raytheon is in defense. the companies both supply airbus and boeing. the merger comes after united technologies announced last year, it was spinning off elevator and hvac to focus on aviation. >>> coming up, broadway honors its best at the annual tony awards. >> the tony award goes to. >> the big winners and losers next. granny always says... the crew are so lovely with... can i get you anything madam? my uncle loves emirates for... the thousands of channels... plus i never miss a live match... and my sister, if she ever spoke to me... would say... it's the free wi-fi... duh! you get so much more on an emirates flight... even the baby would say... fly emirates. fly better. when i had my brother take me places, it was always like, we had to get there early so i could smoke a cigarette before we go inside. i'm a pain -

morgan has the details for us. >> hey, wilf the combo of raytheon and united technologies, ex otis, ex carrier work create an aerospace and defense giant second only to boeing in sales. about $74 billion annually the new raytheon technologies, as it will be called, expects a billion dollars in cost synergies in year four but it's really about the tech when i sat down with the ceos, greg hayes of utc, raytheon's tom kennedy, they talked about leveraging applications across commercial and defense platforms. >> i think about artificial intelligence and autonomy in the cockpit, for instance. there's a need for 500,000 pilots in the next ten years around the world tough to solve that problem, but we can get there because of autonomy and machine learning. a lot of the things that tom has. >> now, kennedy as well also talked about hypersonic missiles which raytheon is developing and which produce a lot of heat. that's an issue pratt & whitney knows how to counter with its own jet engines as well. and guys, one of the key questions here is going to be looking forward this is a major deal it'

butng $93 billion there united technologies spins off its carrier as an open unit that would bring thatn to about $74 billion. the white bar is going. -- is boeing. boeing would be one of its bigger competitors. the deal would faced a number of hurdles. unitedi also notice that technologies stock is now down. in the premarket it was up. it was said they would have synergies four years. that is a long time. emma: it is a long time. it will take water her years, and also what hurdles the company would face was expressed by president trump. raytheon is the fourth biggest federal contract they would need approval from the defense department, which is run by enacting defense secretary who spent his career at boeing. president trump is concerned about negotiating with defense contractors and what that means in terms of how much the government would end up paying. united technologies will speak with the president and tell him how this would be good for him. david: we saw him say some of the savings will go back to the people who buy from us. president trump was complaining about the price of s

defense strategies that sort of thing and the merger also comes another interesting point after united technologies announced it would spin off its otis elevator division and carrier building systems unit so that means they've broken it up where their company can focus primarily on aerospace so the merger with raytheon exclude excludes those companies and they're expected to completely separate from united in the 1st half of next year and of course it's all happening at a time when so many aerospace and defense industries are looking for ways to cut costs to please their potential clients and they're also getting more pressure to use their own money to invest in new technology but it's hard to do that when you're just trying to keep your businesses afloat i think that's what they're hoping will happen by combining these 2 businesses are going to be able to survive a number of business cycles and my how is this affecting the stock before mrs do the shareholders approve of this deal. well i think. if they approve it and i don't think that's going to happen till later in the year but so far i think it

united technologies and raytheon.ense industry, right behind boeing. i was surprised that futures aren't higher based on this news. this has a lot of impact, i thought. >> we had a huge week last week. to pack on even more it is tough. it is a big deal. united technologies is doubling down on defense. they're going to be selling everything from jet engines to missiles. raytheon is back in the news because the president is coming hard at turkey, forcing them to dump their idea that they're going to get a russian missile system. he wants to go with the patriot defense missile system. raytheon's ceo started talking about part of the reason for the deal is to come out with hyper sonics and it's a big deal, a $100 billion combined company. cheryl: it's going to be a big market story today. the bond market, real quick, the yield story has been a little bit off the charts and this drop in yields that we've seen in the last few days has been interesting to watch. so many people thought we would have higher bond yields this ye

with thed discussed ceos of united technology and raytheon. about re-creating a conglomerate. this is about creating a focused a&d company. >> if these two companies are similar, shouldn't the regulators be concerned about overlap? >> they shouldn't be. there's less than 1% overlap in our businesses. synergistic combination, and it is not a competitive issue at hand. >> talk about the connected place. companyhe combined going to be best positioned to serve that market? >> i think it comes to bear against a major technological challenge, integrating an airplane together, the ground systems together, and the communication between those. one of the things raytheon brings to the table is cybersecurity in order for utx to provide that to their customers. >> i think it benefits the entire aero ecosystem. rockwell collins. this is more about just the connected aircraft, the connected aerospace ecosystem from the time you book your ticket through the flight and through departure. it is about controlling the information in a secure fashion to make flyi

alix: coming up, bill ackman once united technologies two digits plan -- bill ackman wants united technologiess is bloomberg. ♪ david: time now to look at three companies we are watching's morning. up, a really mainline, ,raditional publishing company kkr is saying we will buy out as many shareholders as we can get, up to 20% or so, to take them digital. alix: all of that dry powder for you. david: that's exactly right. alix: we are watching beyond meat yet again. first, the last bullish analyst throwing in the towel on valuation. then we learn tim portman is going to add sandwiches to about 1000 shops. but the last bull to downgrade wasn't on fundamentals. it was just that the evaluation of the company ran so much that the potential could be huge for this kind of market. david: trees don't grow close to the sky, and this one is getting pretty close. alix: that looks really gross. any view of dripping cheeselike that is not my jam. david: if you need to put that much stuff on it, i'm not sure it tastes that good. the third company we are watching today is united technologies' plan to take over

some hedge funds not on-board with the united technologies, raytheon merger. cheryl casone with that story this morning. cheryl: that's right. good morning, maria. bill akman sent and e-mail to the ceo of united technologies arguing the $120 billion deal makes no sense and that shares would be diluted in an all-stock trans asks. the wall street journal is pointing to both company's lackluster performance as a possible sign the defense sector itself might be in trouble. there are both stocks, as you can see. maria going to be speaking with the ceos of both companies, 8:0s morning. now to the proposed merger of t-mobile and sprint. it is facing a new hurdle from a group of state attorneys general. 10 states led by new york and california are suing to block the $26 billion deal, claiming it will drive up cell phone service prices and reduce competition. the lawsuit comes ahead of a review of the deal by federal anti-trust officials. connecticut is one of the states suing. maria bartiromo will speak with that state's attorney general 7:00 a.m. eastern time this mo

major defense deal, united technologies and raytheon combining in an all-stock deal.t uber, the company's ceo is consolidating power and taking direct control of operations. and move over kiley jenner, we will tell you who is the new queen of instagram likes, all that and so much more coming up this morning. joining me, cleary strategies president, former white house correspondent, ronica cleary, mitch rochell and lawrence jones. welcome one and all. i promise i'll begin to speak more clearly. i feel like i've had marbles in my mouth despite speaking all weekend. i apologize for that. >> somewhere between law and order episodes you caught some sleep. dagen: a little bit. nothing wrong with law and order. but what do you make of the data coming out of china, mitch. we were texting about the yield curve between the 10 and the three-month treasuries is still inverted even this morning and what about the -- which, again, signals the federal reserve will probably be cutting interest rates shortly. >> china's economy is softer than we can imagine. that's a big part of the c

when i hear united technology which is a great company, i know it well. it is a great company but when i hear united and i hear raytheon, incredible company, when i hear them merging, does that take away more competition? it becomes one big fact, beautiful company, i have to negotiate meaning the united states has to buy things and does it make it less competitive because it is already not competitive. you look at the budgets of other major countries. take a look at russia, they spend $68 billion a year on military take a look at china, $250 billion a year. well, we are many times that part of it because we spend so much money and we have no competition. we don't have competition. >> the treatment you set aside with google and facebook, just in terms of market size and market dominance, do you think there is a monopoly antitrust problems with those companies, setting your personal feelings aside with them that needs to be address or an update on competition, competitor laws ormondor or monopoly laws what do you think? >> the person at the european union t

this great technology base. >> reporter: the all stock deal is expected to close next year as united technologies spins off its otis elevator and carrier ilding system segments. it would combine one of the world's largest defense contractors with one of the top aerospace suppliers. to create raytheon technologies, valued at more than $100 billion and second only to boeing in ldsales. this wring missiles like the tomahawk and missile defensk programs l the patriot system together with airplane avionics and jet engines made not only for boeing and airbus but for the f-35 joint strike fighter jets as well. raytheon technologies could be positioned to benefit from more defense spending and more commercial orders. while greater sle could also mean the ability to weather any future slowdowns more >> the commercial aero side, we expect growth around 6%, 7% annually for the next 5 years. tom, with everything that he's won and the modernization focus of the d.o.d., he's probably looking at about 5% or 6% growth, so this is not about one company growing and the other not. >> reporter: they expect a illion

in other business headlines, united technologies has agreed to buy raytheon.deals ever, it would see united technologies spin off its carrier air—conditioning business. renault has signalled it will block reforms proposed by partner nissen in the wake of the carlos ghosn scandal. the french carmaker has informed its japanese counterpart it planned to abstain in a shareholder vote on the plans. now, this month on our ceo secret series, we‘re looking at young entrepreneurs. and today it is turn of amy golding of the firm opus. she became ceo of the recruitment firm at the ripe old age of 31. here is some of her advice. i think people are some of her advice. i think people a re often some of her advice. i think people are often surprised when they meet me, as the ceo of a £100 million global company. i don‘t know what they were expecting, but i guess it is not someone that looks like a 12—year—old. very early on in my career, i got my first feedback. it was that i was doing a really good job, but if i wanted to progress, then i would have to act less young and le

both less than 1% stakes in uniteds. technolograytheon shareholders own it as a stable income-producing investment and united tech vestors are betting on a soon to be pure play commercial aerospace manufacturer and once the carrier building system and otis elevator unit is spun off and that's why they're skeptical, too. and that muddies the investment thesis and a lot hanging on execution and united tech saying we are confident that our shareholders will see the merit of the transaction and the value it brings to them and the company. >> we will be working diligently in the days and weeks ahead to make sure that the detailsraf the taction are presented to and fully under stood by all shareholders. meantime, the stock has fallen since the deal wasou aed monday and it has spread to the broader aerospace and def se group. bottom line, investors wonder whether this signals a top for t e spending and whether this deal in particular will pay off. for the nightly business report, i'm morgan brennan at the new york stock exchange. >>> it

united technology last year said it was spinning off hvac and elevator systems to focus on aviation.>> more than a million clash with police as protesters take the streets in hong kong. more information next. >>> 4:46 eastern time. china censoring information on social media about the huge demonstrations in hong kong. over a million people taking to the streets clashing with the police over a government plan that would allow for extraditions to main land china. is this a one-day event or do you expect it to continue today? >> reporter: the fight is definitely not over. no more protests today but we are going to see more protests on wednesday because that is the next time the hong kong parliament will be debating this very controversial bill that could go into law at some point. this law, which would allow hong kong to extradict to main land china which would allow them to use the opaque legal system that would allow them to crack down on dissidents or journalists and allow them to take advantage of people here for political reasons. the leadership in hong kong doesn't agree with that

united technologies.ver the weekend we learned they are merging with raytheon, the defense contractor it's a confusing deal. if it happens it will create a fantastic aerospace and defense company. what makes it confusing? united technologies is breaking up into three entities, climate control, aerospace and defense play the latter business will be merging with raytheon. there are a lot of moving parts here it's hard to figure out what the combined entity might be worth it's a complicated story defense contractors reporting a series of suboptimal quartersing in part because of problems with the missile manufacturing business that's another complication. last night a hedge fund manager who has position in united technologies says ceo gray hayes in a letter that he may have to fight the transaction. the stock falls from $132 friday to 122 at these prices kwuonceagain i think united technologies has had enough in other words, it's a buy be careful with what i call sentiment-based bottom calls like here is the

focused united technology.ense to giant -- defense giant worth of $71 billion, one of the largest transactions. let's bring in joe easton. transactionugh the first. they are buying raytheon and taking the name. joe: yes, i think that's what the details are. in terms of why this is happening, there's a lot of pressure because of the dominance of airbus and boat -- boeing, and this is a chance to get power back. think this will make on the commercial military side. a diversification play to get power in the market. stagedoes this set the for further m&a? joe: it was have the value, but $30 billion, a huge amount of money. i think that, we've seen two bg ig deal and companies in europe will be looking that,.as well . matt: we're looking at other businesses, but it is focusing on aerospace and defense. joe: it seems to be narrowing ocus, but perhaps companies supplying these companies have sub -- supply chains. these has have a big supply chain. a lot of companies would how it will affect. your keeping an eye on th

we do have united technologies down 2.5, raytheon up 1.33. both have agreed to an all-stock deal to merge. it does not contain any takeover premium, hence, no really huge moves in either stock involved in this deal which is expected to close next year. what would it do? it would create the aerospace giant with a defense component now. the defense part coming from raytheon which is a missiles and aerospace company and it'll be called raytheon technologies. you've got to understand united technologies, uts, boy, that is an old school name. yes, they own otis elevator, hairier air-conditioning business. we'll have much more on the story including the hurdles that do face this deal straight ahead. even though it seems there isn't much crossover. we've got united technologies doing all kinds of other businesses, and raytheon is that defense piece of it. >>> we've got a tale of two food stories, beyond meat. today that brings its two-day share rise to 69%, not a bad move. the plant-based meat company now trading at nearly seven times what it ipo'd

joining us on the latest on the united technologies and raytheon deal.is our global battle of the charts. that is next. this is bloomberg. ♪ we're the slowskys. we like drip coffee, layovers- -and waiting on hold. what we don't like is relying on fancy technology for help. snail mail! we were invited to a y2k party... uh, didn't that happen, like, 20 years ago? oh, look, karolyn, we've got a mathematician on our hands! check it out! now you can schedule a callback or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not. guy: 53 minutes past the hours. that means it is time for our global battle of the charts. you can find the charts on your bloomberg if you run gtv . kicking things off, jessica summers. jessica: i have to bring up opec. they are facing many obstacles ahead of their key meeting to make a decision on whether to extend oil output cuts and one of those obstacles is u.s. shale. you can see my chart on the top panel. output from the permian basin rising higher since 2017. bl

you have the united technologies and raytheon deal.berg put out an interesting story about m&a and the windfall wall street may be getting. bank of america is the only advisor they could be getting between 30 and $40 million. tableau could be getting about $70 million from this deal. a lot of merger action. vonnie: that is for sure. our stock of the hour. time for the latest bloomberg business flash. synchrony financial is explaining -- expanding its relationship with amazon. the companies are combining for a new store credit card that targets customers with low credit stores. the park requires customers to deposit a minimum of $100, which serves as a credit limit. agency has travel confirmed is in talks with the chinese company about buying its tour operating business. thomas group deals in everything from pharmaceuticals to insurance. some china exporters have found a way to dodge u.s. imposed tariffs by using fake made in vietnam labels. the non-says it has found dozens of fake product origin -- experts from vietnam -- exports from

raytheon and united technologies

fair value those facts right now united technology.est defense contractors on the planet. everything hunky-dory until we got word that the president is concerned. after this. what you need. oh... yeah, i've been a customer for years. huh... only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ can the past help you write the future? can you feel calm in the eye of a storm? can you do more with less? can you raise the bar while reducing your footprint? for our 100 years we've been answering the questions of today to meet the energy needs of tomorrow. southern company today's senior living communities have never been better, with amazing amenities like movie theaters, exercise rooms and swimming pools, public cafes, bars and bistros even pet care services. and there's never been an easier way to get great advice. a place for mom is a free service that pairs you with a local advisor to help you sort through your options and find a perfect place. a place for mom. you know your family we know senior living. together we'll make

raytheon and united technologies announce plans to join forces creating the second largest u.s. and defense aerospace company. >>> wow, finally a straight old white man gets a break! >> a big night for bryan cranston and the best of broadway as the tonys awards light up radio city music hall. early today starts right now. >>> good morning. i'm marley hall. >> and i'm phillip mena. we begin with that breaking news. red sox legend david ortiz was shot in the dominican republic. the former red sox sluer was at the dial bar and lounge in the capital of santa domingo when some men apparently riding on a motorcycle ambushed him. police say the bullet pierced ortiz in the back and exited through his stomach. this morning he is in stable condition. police say one of his suspected assailants was captured by the crowd and is beaten up. the other escaped and is at large. tributes are pouring in. the red sox issued a statement offering all available resources during his recovery. sports castor aaron andrews tweeted this sports illustrated cover writing boston is with you. and heisman trophy

so, every day, we put our latest technology and unrivaled network to work. the unitedtes postal service makes more e-commerce deliveries to homes than anyone else in the country. e-commerce deliveries to homes that's what happens in golf nothiand in life.ily. i'm very fortunate i can lean on people, and that for me is what teamwork is all about. you can't do everything yourself. you need someone to guide you and help you make those tough decisions, that's morgan stanley. they're industry leaders, but the most important thing is they want to do it the right way. i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley. the flexible class schedules d me tremendously. allowed me to go to work full time, run my catering business and be a mom and parent. when i reached this accomplishment, it was like, it's here, it's happening, it's now. we at southern new hampshire university are the ones who succeed. we are the ones who break through. what do all these people have in common, limu?oug [ paper rustling ] exactly, nothing. they're com

raytheon and united technologies have plans to merge forces for the largest arrow defense company. >> wow, finally a straight old white man gets a break a >> big night for brian cranston and the best of broadway as the tony awards light up radio city music hall "early today" starts right now >> good morning. i'm marlie hall. >> and i'm phillip mena. we begin with that breaking news, red sox legend d oidrtiz was shot in the dominican republic the former red sox slugger was at the lounge in san tto dingo when men on a motorcycle ambushed him the bullet entered his bacand exited his stomach one assailant was capturednd beaten by the crowd. the other escaped. tributes are pouring in. the red sox issued a statement offering all available resources during his recovery. tweeted this sports illustrated cover writing, boston is with you. and heisman trophy winner reggie bush is wishing him a quick and speedy recovery. >> many questions remain in dallas, texas, this morning. one person was killed and five others were injured wh a massive crane crashed into an apartment building and garage. this

that is unite technologies truly frothy market wouldn't punish sales force and united technologies like this i think the people were relu reluctant to buy stocks. sure, he gave us tariffs, but this morning, he attack the u.s. chamber of commerce. and i'm quoting here they have to start representing the united states. not just the company that's are members of the u.s. chamber of commerce i get where he's coming from that's not how they work you never know whether you're going to get pro business trump or populous trump. he lashed out against mexico and threatened them f you're a u.s. company with business investment that, is terrifying. then he agreed to do a border deal then he had a chance to buy back the stocks he sold last weekend in good for now. other than walmart, costco and target, retailers are dogs let's see if i can hit the dog >> buy, buy, buy there you go now bottom line. we still have enough mornings that i don't want it to clear this market out of control i believe still that beyond meat is a bit of of an outlier -- that doesn't make any noise at all. there you go however

today, maria bartiromo will speak with united technologies' ceo, greg hayes, as well as raytheon's ceo, tom kennedy. renault shareholders are expected to vote in support of chairman john dominic cenard today. renault's biggest shareholder, the french government, says he has their full confidence. tensions report as he considered resigning hours after fiat chrysler withdrew the merger offer last week bans france failed to -- because france failed to back the deal. in honor of what would have been his 95th birthday, the u.s. postal service unveiling a stamp to honor former president george h.w. bush. the stamp features a striking image of bush. america's 41st president died last year at the age of 94. cheryl: we've got a lot more coming up this morning. president trump and former vice president joe biden going head to head in iowa with biden making far-out promises and stealing a quote from someone else's playbook, again. we're going to have the latest on what biden is doing in iowa and how he's pulling out all the stops right now. and justin be bieber challenging tom cruise to a royal s

>>> shares of united technologies are lower this hour raytheon agreed to a $121 billion mega merger.ff the highs coming off the comments from president trump on cnbc. >> i want to see competition two great companies, i love them both but i want to see that we don't hurt our competition >> morgan brennan joining us now with the company's reaction to the president's concerns morgan >> tyler, i put it like this quote, complementary, not competitive. that's how raytheon explains this merger. there's almost no overlap between the businesses and that business really all about technology so even though their products don't overlap, the underlying technologies be it ai, analytics, engineering techniques, those could be applied to different programs and production lines, whether it's in defense or commercial. so basically, across the portfolio. i sat down with greg hays and kenedy here's how they see it >> the commercial aeroside, we expect growth for the next 6 or 7 years. the modernization focus on the d.o.d., probably looking at 5% or 6% growth this is not about one company growing and the

. >> united technologies and raytheon have agreed to merge in the second largest defense contract in, second only to boeing. explain why this deal makes so much sense. i understand it is sort of patriot missiles meet pratt engines. >> as we see with the planned spinoff of otis and carrier through united technologies and the acquisition here of raytheon, united technologies ceo greg hayes is building an aerospace defense behemoth. we estimate combined revenue of about $80 billion next year, which makes it second only to boeing. it is going to be the second largest defense prime contractor to the u.s. government behind lockheed martin. >> what are you going to have to do in terms of convincing government and president trump that this is a good deal for america? >> there will be three points i would make to the administration. one is this is good for america, good for defense. we are going to bring unparalleled technology. we will also save the government money. we have $1 billion of synergies, half of that goes back to the d.o.d. through cost-reduction on contracts. so half a billion d

it will become raytheon technologies with $74 billion in sales. united become more focused on aerospace after spinning off its carrier climate control and elevator units. shery: the fourth division of kind -- of a chinese conglomerate has filed for an ipo in the u.s. they listed the size of its offering at $5 million. revenues rose to $1.3 billion last year. profit fell to $62 million. they say they will use some of their ipo proceeds to repay loans and restructure. coming up, we will bring you our interview with the italian central bank governor, including his thoughts on the ecb and italy's monetary policy. this is bloomberg. ♪ asia.this is daybreak let's get to first word headlines. treasury secretary steven mnuchin said talks with the people's bank of china governor were constructive but no major progress is expected until the president's trump and she meet -- xi meet in osaka. furthers threatened action. the stephen mnuchin said the u.s. would be happy to resume trade talks if china wishes. president trump hinted at additional measures agreed by mex

raytheon is up four times the number of calls and united technologies up more than six times the numberlls traded relative to puts and the most active amongst those calls and those were the ones that expire a week from friday and these buyers were paying about $2.40 so they're making a bet that would be up 2% and they're obviously looking to see some profits and i would point out one other thing that if you do see premium sellers and those are common in deal stocks like this, these could be pointing that this merger would actually take place because they might be betting that the combined entity would have lower volatilitytha the individual stocks did before they merged. >> mark, you like defense? >> i do. i do i like defense i think that's a great area right now and you see good performance coming out of defense and i think that will continue as far as this merger, i think it's a great merger for both companies and it creates a 50/50 split between defense and commercial revenue so i think it's a good deal. >> general dynamics was my pick the other night figuring that a rising tide lift

machines of war — the weapons—maker raytheon and aeronautics firm united technologies agree a mega mergering an defence giant worth more than $100 billion. european markets look like this getting a boost after the us reaches a deal to avoid imposing tariffs on mexico, a sigh of relief from investors. and do you need an extra pair of hands in the office? we'll be taking a look at a desktop robot designed to boost productivity at work. the business of sleep — scientists from the uk and australia say they have found the secrets of adjusting your body clock. today we want to know what are your top tips for a good night's sleep? let us know, just use #bbcbizlive. hello and welcome to business live. welcome to the programme. we start with trade. the uk and south korea have signed an in principle free trade agreement that seeks to maintain existing trade arrangements post—brexit. the uk cannot sign a formal agreement until it leaves the eu at the end of october. the total trading relationship between the two countries is worth well over $13 billion dollars. the deal includes keeping zero—tariffs

united technology makes the engine for that plane.t plays out for raytheon as well. >> there's some geopolitics wrapped up in this as well meantime, another deal we mentioned a few moments ago with roger, that is salesforce buying tableau. shares up 34 on that news. we'll get more on that but first, gold man initiating uber with a buy, a 56 target we'll talk to heath terry right here at post nine as we are trying to get above 2900 back in a minute 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 curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade. you guys be good. i'llshe's gone.ter. it's a dangerous world. [ screaming ] [ grunting ] woo hoo! [ screaming ] pops are your friends gonna die? pickles don't be so dramatic. but yes p

to some other business stories making news trump has called it the impending merger between united technologies corp and briefly on concerning the deal would create a new aerospace defense giant 2nd only to boeing prompting concern from the white house over competition among other things that u.t.c. produces engines for america's f. 35 fighter raytheon also defense kerrick contractor is known for building the patriot missile system. canadian prime minister just introduced as the country plans to ban single use plastic as early as 2021 speaking at a nature reserve in quebec he said manufacturers would be held responsible for the entire lifetime of their products it's not clear exactly which items would be involved in the bad conduct canada says it's taken inspiration from the european parliament's proposed ban. more troubles for germany's biggest lender door to bank it has discovered a serious deficit in it and see money laundering and sanctions controls allowing checks and payments to be processed without screening the news comes after deutsche bank shares slid to a new all time low last week w

aerospace defense giantess newman on the horizon i just bounce to shake up the industry to united's technologies call and raphael agreed to a merger of equals among other things u.t.c. you could use engines for america's f. $35.00 fighter ready and also a defense contractor is known for building the patriot missile system. well h.b.o.'s hit series game of thrones has just come to an end to the dragons and white walkers are all gone does this mean we now have to face reality 247 no because the world's biggest electronic games convention in los angeles also known as ethe really comes to our rescue let's take a look at the highlights. the atmosphere was boiling over as fans from around the world came to celebrate the newest and greatest in the world of gaming i this is what they came for. me. to. write that. microsoft exploits platform impressed visitors with the newest versions of its blockbuster games. please. nothing. good games. we need to rule. no we need to fight. for many will help fuel the launch of its next generation console which they've dubbed project scarlet. boasting graphics and up t