Good morning a warm welcome to Worldwide Exchange. Im wilfred frost. Im seema mody. Great to have you back at headquarters its great to be back lovely to be alongside you thank you lets quick off with that big breaking deal news comcast making a 31 billion cash offer for british broadc t broadcaster sky. Sky shares shooting higher on the news sky up to 1,332. The bid price was 1,250. For most of the last year or so since the fox deal for sky had beenagreed, it traded below that bid price on expectations that regulators could block the deal now there may not be regulatory hurdles, but also now a bid war. Comcast lower in the premarket comcasts bid does rival the current offer from fox well have much more on the breaking story straight ahead. Great analysis and guests coming up throughout the show. Lets check Global Markets following yesterdays big rally. It was a strong start to the week with the dow gaining 1. 5 futures indicating a higher open for the dow which is up 18 points in the premarket. Nasdaq lower by 4 points s p 500 basically flat check out how far the markets have come back since the february 9th lows. The dow is up as much as 10 similar story for the s p 500. The nasdaq is up by 12 . Keep in mind were still off our january alltime highs for the dow, just around 3 . Nasdaq just 1 clearly this comeback has been strong and swift the tenyear note has been a big part of the story. It eased back from the highs of 2. 9 2. 87 for the tenyear treasury note as we await jay powell to take the seat in his testimony on capitol hill today. Lets look at markets around the world. Asian equities a bit negative. Japan up 1 . Elsewhere declines over a percent for china. European trade for you, which was largely positive yesterday, around a half percent mark mixed earlier in trade, but just improved over the last half hour or so. Germany just higher as is france and the ftse 100 up 0. 2 sky rising to the top of the ftse 100 look at Oil Yesterday it gained about a half percent. Today were lower. 67. 42 for ice brent crude. In the dollar world the month to date dollar index is up about 1 , on pace to break a threepothree threemonth losing streak. The dollar has been mostly weaker against a basket of currencies, today higher against the yen. 107. 03 rounding things off, looking at gold 1,335, higher by 2. Lets talk more about the markets big comeback joining us is gina sanchez, cnbc contributor. Thanks for joining us. To what extent do you feel this bounce back will continue and it was a oneoff blip i think it was a significant blip, but you have to remember all of this happened in the context of a strong economy, a strong global economy. And so while we do have kind of concerns around the levels of spending relative to wage growth, we think wage growth is way too weak to support the spending levels were seeing, its in the midst of a tax stimulus that should be offsetting Monetary Policy tightening so everything looks like its all everything is set to keep going up at least for some time we think well have some issues towards the end of the year. For right now theres still enough stimulus and Global Support that this could keep going. If there is enough stimulus, where do you see the gains the dow gained almost 400 points yesterday. Where is there more room for upside in the market i dont think there was ever any room for upside. I think youre touching on an important point. This market has been overvalued for some time. I think were getting towards the end of that rather than the beginning. I think earnings will have to work hard to sort of earn the valuations if anything were set for disappointment i guess my point is that this can sort of continue to go this could continue to go almost sideways for the rest of the year and still be fine we have seen this market as a tremendously overvalued market we have been overweight meaning markets on the trade story relative to the u. S. We think thats where you need to be. In terms of the yield picture, yields well above 2. 9 on the tenyear early last week. Pulled back from there is that a crucial factor to watch as to whether or not equities can continue higher clearly in general the trend of higher yields did hurt equity markets earlier this year. And it should continue to hurt equity markets if you continue to see higher rates without a doubt, higher borrowing rates will be challenging especially given the levels of debt in the corporate sector and in the government sector so thats not a good thing you need to get well above 3 before you start feeling that pain on the whole were continuing to be underweight bonds for the rest of the year but that doesnt mean we wont see ebbs and flows i think that the expectations for inflation are still probably a little overdone. Thats a lot of whats been pushing the bond market. So you could see that come back and you could see bond yields fall we recouped a significant amount of our losses that story is not confined to the u. S. Stock market. Abroad, in europe, japan has come back a lot. Given the selloff, is it better to look overseas or domestically for opportunity . Thats another great point. One thing we noted in the way this downturn happened, it happened primarily in the u. S. Where it didnt really affect yap these european or emerging markets nearly enough. Thats a normal. Normally when you have a nasty selloff, you see it significantly more else where. Basicallyemerging markets shrugged it off. They went down half as much as the u. S. Markets in the thick of it european markets also. Japanese markets were resilient. Youre right theyre bouncing back tremendously as well so we do think that you want to be we have put our money over broad, we recommend clients to put money over broad thats where we see opportunities. Gina, thank you very much for joining us lets get back to the breaking deal news. Comcast making a 31 billion cash offer for sky sky shares shooting higher on the news theyre at 1334 pounds, up 20 today. Comcasts offer for sky is up from a current bid Brian Roberts say sky and come bast a comcast are a perfect fit. Lets bring in our guest we are now trading above 13 pounds the latest comcast offer is 12 pounds 50. For much of the last year when fox was trading, we were trading below the fox price. Why are we trading above now the price on the table good morning. Yes. Its a great gopment for a businebi development for a bizny storusi story. The reason why sky is trading above the price is markets are pricing in and expecting a battle to break out between disney and fox and comcast theres been regulatory hurdles for fox when they were trying to take over the 61 of sky that they din odnt own one reason why the price traded below the original fox offer do we think this would be an easier takeover company for u. S. Regulators to approve as a buyer of sky one thing is clear, the comcast offer is cleaner its a smoother proposal its all cash. They dont own much overseas they have 9 of the revenue base internationally. So for comcast to pursue this, its a much easier thing whereas we discussed multiple times on the show and in the financial times, murdoch has a long legacyin the uk, and that legacy hung over him since he struck the deal to buy sky in december of 2016 its now february 2018, theres still months to go in that process. Its because of who Rupert Murdoch is, what his history is in the country, the assets he owns and when you think of comcast, its a blank slate comcast has lack of history in the uk theres nothing in pay tv, versus murdoch who has been in the papers, all over the country for 30, 40 years, that legacy is haunting him a bit today if the objective of the sky acquisition is to gain more market share abroad for comcast, why look to europe, why go to emerging markets where theres higher growth and a market thats unsaturated at this poin point. We spoke with Brian Roberts this morning, he believes this is all about the customer of the future, which is they want bundles of content he believes sky offers customers in the uk, italy and germany, its primary markets, quite a bit of content he thinks that fits perfectly with what comcast already has. Comcast in 2014 tried to buy Time Warner Cable and expanded its footprint in the industry. So comcasts growth in the u. S. When it comes to owning more cable and the distribution channels, comcast had run into trouble on that front in the u. S. Its latest deals for dreakworks animations, and theme parks overseas, but it has not been able to expand the cable foot print in the u. S so that is why theyre moving on sky this morning you spoke to Brian Roberts this morning, he wants to offer bundles of content across europe what are other key things you took awayfrom that conversation one thing is that comcast already went for fox, if you remember theres been press reports in november and december when disney and fox were in discussions that comcast made a superior offer to murdoch and fox. But murdoch calculated that the disney offerer had a better chance of passing through regulatory hurd ms in the u. S. It also allowed him to solve multiple parts of this jigsaw puzzle now comcast has struck back, coming just for the sky asset and it has thrown a wrench into the murdoch and disney plans forgive me for going further on this, are you getting the sense from that conversation, something you want to press him further on, that he wants to go in for more of the assets from fox or not i believe theyre squarely focused on sky now this offer that comcast has put on the table, hes laid it out with an acceptance threat hold of 50 plus one share. So they dont expect fox to cooperate in this offer, so this is a hostile offer for sky essentially. Brian roberts said the first communication they had with sky happened moments before they unveiled this offer. There was no discussion behind the scenes as one analyst quoted this morning, this is hostile in effect clearly the 61 of shareholders that are not fox will like this bid, its higher than the fox bid but realistically, if we get two big separate u. S. Institutions owning two large chunks of this, would it be able to continue to operate in terms of shared ownership . Brian roberts clearly has suggested hes willing to proceed ahead that way is he likely to be truthful there or does he want to buy the whole company . I can assure you this thing will play out many more ways in the coming months. This situation were seeing has thrown a wrench into the discussions and put comcast firmly on the lawn of sky and in sort of the troublemaker position when it comes to murdochs thinking about his company and what hes doing with fox. This is not the final twist. Theres no way to predict how this will play out if kol cacomcast emerges as a 5 holder and murdoch is at 39 , thats going to be an awkward juxtaposition. I dont think were headed there now. This is why the stock is trading above 1250, way above in the 13 pound a share range. The market is expecting a counter offer from the fox disney camp. We have a long way to run before we can make judgments on how it will look. Thank you very much turning to todays wall street agenda, we have january durable goods orders out at 8 30 a. M. Eastern thats followed by the december s p caseshiller home price index at 9 00 a. M. February Consumer Confidence at 10 00 a. M. Auto zone, macys report before the bell after the close we will hear from square, workday, etsy, weight watchers, booking holding. The fed will be front and center as Jerome Powell testifies before the House Financial Services committee its his first public appearance before Congress Since taking over as fed chair. Cnbc will have full coverage of the testimony starting right here at 10 00 a. M. Eastern still ahead on Worldwide Exchange, palo alto pops, fitbit flops, the good, the bad, the ugly in todays trade. And later, 50 fesses up. What he said about bitcoin that is getting buzz today. The tadeils when Worldwide Exchange returns. Your toprated thing. 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That lady, these houses yes, yes and yes. And dont forget about them. Uh huh, sure. Still yes xfinity delivers gig speed to more homes than anyone. Now you can get it, too. Welcome to the party. Welcome back to Worldwide Exchange. Im wilfred frost. If youre just getting up, lets get you up to speed on Market Action futures at this hour, after a strong rally yesterday, 400 points for the dow, were now just over 3 away from the alltime highs for the dow and s p. 1 away for the nasdaq its been a fantastic bounce back from the lows on february 9th. This morning flat in the premarket. Treasuries, we have seen yields slip back significantly from early last week. We were at 2. 9 then on the tenyear rising yields has hurt equities. Unsurprising to see the bounce back of recent trading sessions come in. Stocks to watch today, a u. S. Regulatory panel reportedly started looking into broadcoms plan to buy qualcomm broadcoms Corporate Headquarters are in singapore. Reuters say republican senator john cornyn is urging Steve Mnuchin to have a panel review the deal before a key share holder vote. Microsoft technology is in talks to buy micro semi, the largest u. S. Supplier of chip equipment to the military and Aerospace Industries the potential deal would value micro semiinto the 60 range fitbits Fourth Quarter results missed forecasts weak sales over the Holiday Shopping season is to blame. The company also expects lower revenue from new products. Palo Alto Networks second Quarter Results beating forecasts. The Cybersecurity Firm giving upbeat Third Quarter guidance. Revenue from its product business rose 20 and the stock is up 5 shares of neurtisystem are down today profit and revenue outlook for the year are well below analysts estimates. Down 27 Tenet Healthcare reporting betterthanexpected Fourth Quarter results. They posted their first increase in patient admissions in more than a year. Its also raising guidance for 2018 some big movers. Still to come, the big money battle breakingout in the nfl. We have the details coming up. As we head to break, another check of futures, mixed at this hour essentially flat after big gnsai yesterday. Back in a couple minutes some air fresheners are so overwhelming, they can. Send you and your family running. Introducing febreze one for fabric and air. No aerosols. No dyes. No heavy perfumes. It cleans away odors for a pure light freshness. So you can spray and stay. Febreze one, breathe happy. Welcome back to Worldwide Exchange. Im seema mody lets get you up to speed on the Market Action. Dow jones looks to open higher by 12 points the dow and nasdaq set to break ten month winning streaks. Yesterday the dow saw the best day in more than six weeks look at the story in the commodity market with Oil Trading Slightly Lower by 0. 3 for wti crude. 63. 73 lets check in on whats happening outside of the world of business. Francis rivera is in new york with the latest for its good morning to you nfl commissioner Roger Goodell is looking to rekoocoup millionn legal fees from jerry jones for jones alleged efforts to derail goodells Contract Negotiation goodell could issue the punishment in the coming weeks spokesperson for the cowboys and nfl declined to comment. Hope hicks is expected to appear before the House Intelligence Committee today she was scheduled to appear last month but that interview was delayed while both sides worked out what types of questions she could and could not answer. The tsa today will Start Testing new suicide vest Detection Technology at new york citys penn station. So back on over to you thank you so much still ahead on Worldwide Exchange, your Global Market rundown and another check on the top business headlines. Plus more on the breaking deal news, comcast making a major bid for sky. The full details when Worldwide Exchange returns in a couple minutes. Cnbc parent comcast making a 31 billion befocash offer for s wall street roars back to life putting the dow and s p 500 within a stones throw of recouping february losses. And in the hot seat, jay powell faces his first big test today as he heads to capitol hill its tuesday, february 27, 2018. Worldwide exchange begins now. Good morning a warm welcome to Worldwide Exchange on cnbc. Im wilfred frost. Im seema mody. This is wilf in person, back at head quarters. Back after two weeks. Great to be back great to be alongside you. Lets kick things off with breaking deal news comcast making a 31 billion offer for sky. Shares in sky shooting higher on the ne