Businesses. Jason joins us from princeton. What can you tell us about the deal . Jason firstly, the name is fascinating. The name is downdupont. That is the sign of the temporary nature of it. Is dowdupont. That is the sign of the temporary nature of it. There is very little that the market did not expect versus what was originally murmured what was originally rumored. It is going to break into three bundles, in a very tax efficient way, the way folks had thought. The synergies look like we have been told as well. There is 3 billion, another billion dollars of operational cost savings they are pointing to. Timing will be the key question. This all needs to get done relatively quickly or it will start to fall apart in peoples minds. Stephanie according to the news breaking, we will see a 10 jobs cut. Put that into perspective. Jason that will be in the thousands. We have not run through it from an Employee Point of view. We hope that the benefit comes from the synergies. The focus is a little less on cost. If you create three new countries if you create three little if you create three new companies, you will add a little of it back. Agriculture and the crop chemicals space, while it is easier to point to a cost number, management does that up front. There is skepticism around revenue synergies. In this case i think theres a growth synergy. Stephanie and a lot of people say this is Financial Engineering at its best. If this is not a sign that the ket is hitting the Top Companies merging so that they can break up. What does that do . Will help the shareholders p you have to think breen had aen ed terrific track record. Nelson peltz has been pushing for this. Really sophisticated about how these large conglomerates should not be together and could operate more successfully. David from an operations point of view, as jason said, we are hoping it is a lot of synergies. But on the costcutting side, there is a b i report that suggests they can save as much as 4. 5 billion a year. They are talking about a writeup of 780 million. That is a good deal. Amazinglys an creative financial structure. We have not seen, as far as i split, twony Companies Getting together and making three out of it. If there is precedent, i would love to know about it. What is going on at yahoo , they thought through in advance a lot of these tax issues. So you do not see that downward pressure, what taxes might bring. David jason, there are a lot of positive things being said about the deal. What is the likelihood that it will go through . What about antitrust challenges and other issues . Jason one of the surprising things about the deal is how little overlap there is, given the way the headlines look. Large Chemical Companies. Given the way they have restructured themselves over the years, and even up to this year, shedding units, there is little overlap. And s vertical there is vertical connection in the markets that they serve. After this, it creates another strong impulse where there already was a lot of m a fervor. You talk about sin genter with cam china you talk about sin le the overlaps are not as significant as you would think. It seems to me very likely that this will go through. It is a very logical deal, and it will create stronger competitors on the global stage. David josh, you have spent a fair amount of time in washington. Chemicals companies, that is not the way it is looked at. Josh this is partly about the real substance in the individual markets where there is overlap, then the politics behind it. There is no question that the spin will help with the politics, not to have one huge company at the end of the day. Alan normally you do a merger of giants as a condition of agreeing to sell something. In this case they have agreed to create a third company. Stephanie what are the stocks doing . Matt lets not forget that we knew about this deal he couple of days ago. We are getting verification now, but we had the scoop. That is being priced into the shares. Dow shares are up 12 . This morning you are going to see less followthrough in the actual share prices because we had it all. Massive moves yesterday, for 60 billion dollars stock. These are both 60 billion companies. A 12 gain in one day is very substantial. This is a chart over the last eight years or nine years, and you concede to upon and dow, dupont in green, dow chemical in white, have both outperformed the s p. Over the last few months they have both shot up here from a drop they had earlier in the year. David there have been activist shareholders involved in both sides of the deal, and they are doing all right by that chart. Thinks danbloomberg loeb has made almost 150 million bucks on this merger. It was december 13 that his hush order expires, and i am saying that the timing is not a coincidence. Jason miner, are there really sizable roadblocks that could stand in the way of the deal going through . Ison iraq my brains wracked my brains. It comes down to the regulatory front. Ou may have pushed back perhaps even subsequent to the deal there will be push back on g fronts. On the a worrying about changing concentration if you are bundling things like seeds and crop chemicals, which will come from these two businesses. They really are pretty minimal. What you are going to need to do is look at the merger agreement, and get a sense of whether the executive see the risk. If there is a big breakup fee, the expectation is you will not see risk. If the breakup fees are low, one begins to wonder, maybe they are concerned. Reading the document will give us a lot of color as to how executives and advisers are thinking. Stephanie we will be speaking and eddrew leverett breen. Jason miner joining us from princeton. Thank you so much. The other thing we have not spoken about this morning is oil. Prices are continuing to slide. Matt miller, you have got to take us into the terminal. Yesterday the South African president booted the finance minister. This is a country that is completely commodity dependent. If you look at Commodity Prices, currency, Commodity Prices in south africa, we are starting to see the democracy crater there. Who is controlling that country . When you see Commodity Prices fly, you see emerging markets panic. That is absolutely what we are seeing in the markets today. Take a broader picture of oil and where things are. Matt just to touch on what stephanie was talking about, i have grasped the dollar versus i have aasped graph on the dollar versus the rant. Really oil is what is driving the market over the last few days. Here you see futures have come down, taking a substantial leg lower. About an hour ago, s p futures and Dow Jones Futures are down 1 . T 2 3 of take a look at crude oil right now. The glut that we are seeing, the supply glut will continue until at least late 2016 because of the demand growth not accelerating. It is decelerating. And you are seeing opec countries ratcheting up supply in a bid to put everybody else out of business, including maybe each other. We look at wti in the u. S. , the brent mobile benchmark of oil coming down well below 40,. Ight now 39. 07 remember, it has been a rough couple of days. Havethe last few days we seen a real correlation between oil and the equity markets. Here you see oil in blue. This over the last 24 hours. Futures are in white. They are very well correlated. That has not been the case if you look over the last year. If you take a look at the chart over the last year, you have crude in yellow coming down, and the s p in orange coming up. There is real divergence that october. In September Stephanie amazing. David it is quite a story. Josh, it strikes me, not being in oil expert, that what is going on here is that it is going down, but there is a hope that it will turn back around and companies are coming to terms with the fact that we may have low oil prices for a while here. The economy goes off the cliff in 2008, 2 thousand nine, and the expectation is that it will recover. That is a cycle. For the first time in oil for a very long time, we have supply shock. That is not a quick problem to solve. Opec is willing to continue to produce to remain tame to maintain all to maintain market share. Stephanie the 10year yield today, just this morning, has gone from 8. 8 to 10. 5 . The impact of Oil Prices Drive bring the impact of Oil Prices Dropping david also it is a certain unt of uncertainty because we do not know anything about him as finance minister. Theseyou see a lot of emerging markets, which are heavily commodity dependent. When they see the downward pressure on the economy, you do not know how they will react. We can see how the united its react during an economic downturn. David if that is not enough, next we will talk about Falling Oil Prices in russia. Decision tot the keep rates unchanged their banker that is next on number go. David welcome back. We focus on russia. This despite battling the first recession in six years and a slump in oil prices. Ryan chilcote has covered russia for decades now and joins us from london. For those of us who have not been following closely, this is stagflation in the United States years ago. They have high inflation and a slow economy. Ryan that is exactly right. Russia is in a recession. The economy is set to contract by more than 4 according to the central bank, and they have inflation around 15 by the Central Banks own admission a few moments ago. They have all kinds of problems. David what are they planning on doing about it . Is this the Central Bank Governor talking or is it Vladimir Putin talking gecko how independent is he . Ryan i have talked about that before and interview to her and interviewed her a couple of times. She is independent. Stephanie of course she says she is independent. What else is she going to say . It is fair to say that the kremlin has a significant amount of influence. I think it is the case that they probably see pretty i try and that the russian president , who is thought of as the autocrat dictator who hands decisions down from above i think he probably really respects her view and listens to it. He certainly did when she was economy minister. As to what they are going to do about the troubles in russia right now, the answer is, they are both concerned about inflation at the moment. They are concerned about the economy and contraction, but there is nothing they can do about the oil price. She could help by lowering rates, but the fact that inflation is at 15 and you have oil continuing to fall, which in a country where the import a lot of things means you get a weaker ruble and higher inflation again is something that she has to be focused on inflation right now. It surprise you when we see big investors that are bullish in russia, when you look at the credit default swap over the last several months, it has tightened. Are they longterm bullish or is it shortterm trading . Bonds,ussian dollardenominated bonds are the best performing bonds in the world. That is a no brain are from a shortterm perspective. Nobrainer from a shortterm perspective. Longerterm, it is the biggest Consumer Market in all of europe. Tell you,sses will irrespective of what is going on with bonds and stocks, that not only should they be there, but they have to be there because it is such a growing economy. Naturally this recession is a hiccup in the plan. David josh, they have some problems in the russian economy. Whether it is ukraine or the sanctions on imports from turkey, there are geopolitical actions that they are taking that are not helping their economy. A balance between Vladimir Putins desire to be a major actor on the world stage how does it balance against getting his domestic economy growing again . The big thing to watch is foreign reserves. Those are still quite significant. As long as they have that offer, get gives them room for a long period of time to maneuver. Alan do not dismiss the average russian consumer. There are signs of discontent, and they have been more vocal than they have been in a long time. You cannot dismiss that. I think that is right. David and i were talking about this on the show. Russianally, the consumer has endured a lot of pain for a long period of time. The russian government is counting on the fact that oil prices will increase and Vladimir Putin will maintain control of the government and they will suffer for that long period of time. If supply and inventory keep going up, even storage costs to say the price will turn around on oil, come on. When . Josh i am not making that argument, stephanie. You see Long Term Oil prices close to you could produce today, you could store, and sell it in the future at a higher price. That trade has disappeared. So the market is not anticipating a quick turnaround in prices, and that has the russian government scared, as evidenced by the fact that there they are not longrun Interest Rates further. Stephanie our own Ryan Chilcote joining us. We have more to cover. Next, the stories that matter to you most on the bloomberg terminal this morning. Stephanie you are watching bloomberg. We are giving you the top trending stories. No surprise excuse me. And missing billionaire from china, stocks are going down with oil. Barclays ceo is freezing hiring. Stephanie good for you, josh. This is the most important to me, not just the belgian billionaire behind him. We should probably talk about oil. Josh you do see that people are not just financial machines. What do they think about . They are thinking about the markets but also their passion. Their passion is football. Everyone around the world loves football. Stephanie but they get so frustrated that they cannot make soccer a big enough sport in the u. S. David you have got to college football. Alan it is changing. We have several teams opening, so we will see a lot of activity happening in that area. We talked so much about the surplus that is coming. How do wee costs factor in the cost of storage . Nextcould send prices down year. People have not even factor that in. Slowing down. Saudi arabia has their foot on the gas. Josh if you look at the Second Derivative story, you have to look at chipping. Think about the impact on the people who own the search the super tankers who store it here it look at what is happening at the storage of oil there. Stephanie man. Alan i am looking back at the 1970s and 1980s. Stephanie sorry, we have to leave. We have more bloomberg. Sure, tv has evolved over the years. Its gotten squarer. Brighter. Bigger. Its gotten thinner. Even curvier. But whats next . For all binge watchers. Movie geeks. Sports freaks. X1 from xfinity will change the way you experience tv. Tand thats what were doings to chat xfinity. Rself, we are challenging ourselves to improve every aspect of your experience. And this includes our commitment to being on time. Every time. Thats why if were ever late for an appointment, well credit your account 20. Its our promise to you. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. David welcome back. Alan is still with us and tom keene is joining us. We are following two big stories. Falling Oil Continues to fall dupontt they dow and merger, but first, first word with david. David republicans discussing the contested president ial Convention Next summer. They would be forced to challenge Donald Trumps nomination if he gets to the nominee. They discussed the issue at a dinner on monday night. Russias president warns that any threat to Russian Forces in syria will be eliminated. He spoke at the Defense Ministry and set the base in syria has been beefed up with more planes and antiwar craft weapons. For russiandown airplane at the Syrian Border last month. In saudi arabia, women will be able to vote for the first time and they are also on the ballot. Almost 300 municipalities have women on the ballot. You can get more on these and other stories 24 hours a day at the new bloomberg. Com. David thank you. We are joined by tom keene, but we will also be joined by jason. That will give you a hint about what the morning is about. Tom we looked at the annual reports of dupont and from dow and this is written by the people this is what you do when you do m. D. And a. This is the executive chairman we believe the dell of tomorrow is here today. I work is not done, 2009 was the year of investment in our transformation, and while it is well underway, it is not yet complete. I will say. Annual reports are a work wonderfully constructed hot air. That hot air came to rest today. The bottom line is this is about the lack of growth. Martin was all over that today, as he should be. I talked about it is ago. Growth . Hat is the jason you are looking at gdp growth and you have two factors coming together. Dupont has been so long and broad. Dow has the energy volatility, so his oil were to double, my answer would be higher. That is the 1. 1, 1. 2 times gdp growth. It is still too difficult except area wherescience they will be more synergy on the growth side and more excitement in terms of new products in the markets. There is a fair amount of cost opportunities. Alan isnt there a solution of the dow . Cornering the situation tom that was out earlier. Jason i think dow will become dow. Tom you and i are the only guys who understand the romance of dow. They make a lot of the glass, stephanie. Stephanie how about innovation . Thing majorly companies on the Balance Sheet can do right now . You if you look at r and d, cannot do that unless you have growth. You have got to have the topline growth to afford the technological progress. Jason,tom is right, but there is a school of thought that you cannot have innovation unless you have focus. As companies have gone more diverse, they have become less focused. About the arguments is focusing on particular areas. Jason when we go back to the nelson and dupont battle, one of the only use unifying stories, the dupont is so dissonant that the notion of science was one of the only unifying themes they cou