At all in these two companies. When you do the math and look at everything, we dont have a concern. Andrew think about it as adjacencies. Area, we dontag anticipate issues, but we will go through the Regulatory Filings as normal. David whether the United States or europe, will they be looking at it as one company or will those be done simultaneously . Hard to answer, but they will take into account that it will be broken up into three businesses. Stephanie agriculture is a key part of this deal. We have got to ask about competition. How will Global Agriculture change, when you think about china and the strength they have . A governmentcontrolled entity has taken aggressive position good im referring to china. That is one of the beauties of putting these two ag businesses together. Andrew and i have said publicly that will be consolidation in this space. Have the firstmover advantage. We know for sure we are going to be one of the big leading players in the ag that was very important to us. When we have by putting these together, we have the seaside and the strength of the trade side of doubt and leveraging that through the Sales Channel is really going to create some great opportunities. It is really nice balance between the businesses. In the breadth we will be able to offer our customers is very significant. You are fairly confident about the Regulatory Approval and it will take some time, and i went through this when disney but abc, theres the natural tendency for companies to get fo frozen in place. What specific actions when you take to make sure your companies are going full force . Edward i have been through this before. It is a great question because you do have to be concerned about that. We did quite a few things. To me just say once you get merge and they know there are going to be three companies, the management teams get very excited. I know there will be a leader in industry in a business that will be together. They will have a chance to have the secret andrew and i have it is very motivating for them to perform as they get into the spot. In these deals you have to put retention programs in place. The separation is hard to do while you are still running your company. You need to motivate people extra to do that. They are doing double duty to get you there. Andrew you are right, we have spent an awful lot of time on that. 80 , 90 of our conversation is your question, david. Edsocus on materials and , we have divided our biggest so that it is together for focused. Blow us from the same. Below us, the same. Below them, the same. We have to operate, integrate, and split. We have to put teams in place to be focused on those and be incentivized. Stephanie those people are worried about cuts. Lets talk about cost synergies. What is going to get pulled out of r d, and why you need to have dual headquarters in michigan and delaware . Andrew because of the r d point. Edward r d will be where there is duplication and it is actually a small number in the scheme of the 3 billion number, literally down in the 10 range. When you look at the combined million. And 2. 8 we are not taking out r d working on a project where there is not. There are going to be three companies at the other end of this, and the materials dow, the other side is to punt. Is dupont. We know that is a future destination. Edward it is the same thing. We halve the hole corporate infrastructure, which, by the way, they are downsizing. We are in bloomington and will have to lean on that as we do these other two companies. I will say, andrew climbed from flint. Andrew, i am from flint. Not a bad place to be. Very busy day for you gentlemen good time for Bloomberg Markets. For that we go to betty liu. Betty david, stephanie, thank you very much for they are speaking to Andrew Liveris and edward breen who will join for this new company. In the making. I want to bring in our Global Chemicals analyst, who joins us from princeton, along with brooks sutherland. Brook, why dont we start with you . You heard andrew talk about how this combination is going to be synergistic, going to ebitdafriendly. Was this a conversation that should have been done earlier . Brooke i think it is a very logical combination. That havethings changed but it makes now a good time to look at doing this. You had the ceo shakeup t. It seems like coming in would be a catalyst for the discussions to get ramped up again. There are a lot of things that came together they just seem like now is the right time. It is the year of the megadeal. And now we see this in industrials. Ed wereandrew and cautious and confident. Are there going to be big regulatory challenges here . These are the top two chemical makers. Jason this seems there would be a lot of overlap with the Biggest Companies coming together but over the years these firms have restructured and refocused. These portfolios are supplemented. There is some intrigue in the Agricultural Sciences business. Now we have the biggest seat and crop chemicals business. There is still a lot of competition there. You get into a political area and the farmers are clearly watching very closely held the market power will play out once there is more opportunities to bundle. In general, the migratory regulatory and antitrust risk is pretty low. And this being a good moment in time with ed coming in is very accurate. Back when we had the proxy battle, the former ceo resisted any change the portfolio and mr. Breen has been very amicable. Betty he only came on board in november so he came on board to strike some sort of deal. Nelson peltz was at the forefront of the dupont shareholder and they just came out with a statement saying it is a long semen so i will not read the whole thing could essentially, they fully support this transformative transactions. There were approach, they say, i du pont and down to sign by dupont and dow to sign agreements. Ity nelson is certainly happy because he has made quite a bit of money from this, as well as other activist shareholders. Brooke this is really the dream of an activist. You get more scale and more focus of the same time. You are really getting the best of both worlds doing this. It seems like this is definitely something the activists as well as other shareholders are going to like. Is it unusual they were brought in so intimately in this transaction . Brooke it was a smart move on duponts part. You have the proxy fight which got a little vicious. Betty and led to the departure of ellen kullman. Just making sure they were on board probably didnt hurt them. You have more expertise to do this. It doesnt make sense what they are doing. It didnt hurt them. Betty he did it. Jason, what about pressure on other companies . Jason theres a couple of levels of pressure in the agricultural space. You have a lot of heated merger and m a activity. China has made a bid that was rejected. A lot of activity there. A lot of pressure on the major local conglomerates. This is a philosophy change in a way where the u. S. Chemical firms are looking at major firms overseas, a 90 billion revenue company, and saying that rather than these massive conglomerates , we are going to go at this whole thing in a leaner and more logical way. There will be pressure to spread the focus. And so you probably see a lot of dealmaking in the specialty forical space with a mecca the megafirms as well. Betty thank you guys for joining me. For more commentary for dfly, gadf on your bloomberg terminal. Lots of news related to the stock markets. Matt dow jones newswire put up headlines suggesting that china may devalue its currency by sening the peg, taking the pegging the yuan instead of to the dollar loan, to a basket of currencies. It looks like Equity Investors are little wary of that right now. Not huge moves, but a drop of 1 in change across the board. You can see the Dow Jones Industrial average down 200 points. It is not so much the price action as the size. If you take a look at my volumel, this shows you at any point in time compared to that point the last 20 days. We have treated double the amount of Telecom Stocks in the 20day average. By the way, those are on opposite ends of the spectrum. Materials are the biggest loser as far as energy groups. Telecoms are the biggest gainers. Take a look at crude oil, another reason for declined today. Over the last five trading days,. Hat to expect you see crude just drop all of a sudden. We have moved down to a 35 handle. Ery important to note take a look at natural gas, another milestone there as well. It has fallen below two dollars for the First Time Since april 2012. It is on the slick the bottom has fallen out almost like the bottom has fallen out. Betty people are racing to safety. Matt i will show you in a second bonds are the first thing you think of. 10year, 217, down to 215 a little bit earlier. This is true across the Government Debt market. You are seeing buying that pushes the yield down. It is considered a safe haven at times like this. Jump, but a huge these kinds of headlines, even if they are not yet verified, investors are wary of these things. Betty seems like theyre just nervous. Matt we are getting close to the expected rate hike next week. Last time we were looking for a rate hike, china came into the picture and it didnt happen. Will they shake it up again . Betty thank you so much, matt miller other markets desk. Stay with us. Betty good morning, and welcome back to Bloomberg Markets. Alibaba has officially entered into an agreement to acquire the South China Morning Post and other media. Rumors of the acquisition have been swirling for months. Emily chang addressed the rumors with the alibaba ceo with jack ma, in an interview last month. Ack we need media to help our small and Mediumsized Companies and to promote, and power advertisement dollars, huge. Media can definitely, using our status, we can tell the economy in an accurate way. Emily so are you going to buy the South China Morning Post . Jack i did not say that. Im watching companies know. Betty something was brewing, clearly. Joining us is cory johnson. Cory maybe she gave him the idea. Betty jeff bezos has the Washington Post and jack ma has South China Morning Post. Cory jeff bezos has the Washington Post, not amazon. He has not emerged those businesses together. He has pushed opposed to do more online push the post to do more online. Their app is fantastic. What is interesting here is how this business might work, this newspaper business, my work with what alibaba is doing to help businesses sell stuff. Betty they have gone into several media. And alibabaku, movie studio. They have some media assets they are building up. Cory to me it is kind of puzzling what they are trying to do, how they measure news helping Small Businesses. I understand that this play boxer sandbox, it is to try to find new ways to innovate around journalism and make Good Journalism available to lots of people. Betty what would be the logical explanation, then . Cory there is a lot of things that alibaba has done since going public that are just weird. Going back and buying back shares when the results were answer good for the company i would put this in the Company Category of you better proved to me this will work. Not the first time a billionaire has gone on and bought a media asset. It is not been doing it could that is why shareholders might look askew at this. Betty cory johnson, bloomberg editor at large. Much more in the next half hour. The plan to make the most fuelefficient cars out there. That is coming up. Betty welcome back to Bloomberg Markets im betty liu. Stocks are selling office we close our trading. Matt miller with how the etf markets have been holding up. Matt thanks very much. Mlpts. About a wild ride. A variety of rafters. Here to discuss that is our eta analyst. Talk to me about what we have seen happening in oil this week. That is why we are focusing on mlps. Have a seriouss problem because they have been hit from both sides. Betty these are Master Limited partnership with talking about, different tax treatment. Eric these are companies that have to pass on 90 of the income. The etfs come along and wrap up a bunch of them betty you can buy direct matt you can buy directly into mlps. Eric they come and wrap them up. Of about 610 . This was a big fat pitch, one adviser told me, because i can get a big deal and not take on that much risk. This is the downside to that from this environment. Is down 31 . No open and fund it is structured as a c corporation. A tax of 34 . Does, youhe index will fall short of it. That has been a real issue with the mlps. Matt there is one from jpmorgan that is etn. Eric they are just like any other stock you may buy. The issue with those is you dont know what they hold. Theyre basicallyif you look at them, they have credit risk. Actually lose your money. People like that because of the tax treatment. People normally say that you go to amlp for the yield but if you want total return you go to the stomachs a credit risk. They can 32 of all the assets. The tax issue is a major driver of those assets. Matt first trust northern American Energy infrastructure, this combination of the 2 is this the michael corleone, one is sonny, one is fredo . Eric love the godfather was quick reference. The other 75 will be basically companies that are related to mlps, energy companies. Dragill not have the tax in there as well. This is the largest actively managed equity etf at 800 million. I dont know if that says more about peoples hunger for this kind of exposure or how hard it is for active equity etfs. Matt always good to see you because i love hearing about etfs and because we know it is friday. Etf friday, betty. Betty still ahead on bloomberg television, a big week ahead with the possible fed liftoff. Take a look at the terminal function. Wirp. Traders are calling for a 74 chance of a right move. Live from bloomberg World Headquarters in midtown manhattan, i am betty liu. Has more from the news desk. David crying gases playing beat the clock with the federal budget. The senate has agreed to extend the deadline for next thursday and the house is excited to do the same the next day. New york state has won the latest round in the fight against Fantasy Sports sites. And draft kings have to shut down their new york operations for now. Keep operating while fighting an attempt to declare them illegal under state gambling laws. Tomorrow in saudi arabia women will vote and run for office for the first time. Winner is still not allowed to drive and must get permission from a male relative to travel alone overseas. British by mr. David cameron has been putting off a decision since 2012. Now you will not decide whether to add another runway to Heathrow Airport until next year. He says more time is needed for environmental study. The British Chamber of commerce calls the delay gutless. Prosecutors say today that criminal investigation is over, ruling out corporate prosecution of Rupert Murdochs british newspapers and charges against individuals including former cnn host piers morgan. That is a look at our first look news. You can get more 24 hours a day from bloomberg. Com. Thank you, David Garrard the news desk. We are five days with the most anticipated fed decision in years. We can safely say that i not go into hyperbole. If you take a look at my terminal here now guys, if you could pull that up hang on one second all right, i will get that going in a moment. Basically, 74 of traders believe that we are going to see Frederick Frederick hiked by next week. Janet yellen and the government has emphasized a gradual raise. We are joined by Bloomberg Economics editor mike mckee. We have a handful of pieces of data that could affect possibly this decision or not. Mike no, the fed in the it is going to, happen barring any huge event between now and next wednesday. There is no way for them to pull the markets back and they would not want a market interruption. We will not see anything that would change their mind. Consumer prices next week and Consumer Prices are going to start going up a little bit because we are seeing some of the effects of the Oil Price Drop last year at this time fall out of the calculation. We thought this would carry through into next year, and the feds calculation has been that Consumer Prices are going to start rising because of this and oil prices are going back down again. Prices, theyoil are looking at the core numbers and hopefully those will start to go up as well. That is the forecast. Wirp functionmy on the terminal so if you want to show that now, 74 of traders think. It is not unanimous. We were unanimous going into the ecb decision. E it is not a calculation on whether they can raise interest rates, it is whether they can as far as they think. The formula assumes that we will go from where we are, which is about a 13 basis point were not at zero. You have 70 of the people thinking that will happen. At 30 basis points or Something Like that, you get much closer to 100 . Betty i think that is another hourlong show. Mike no question that the fed is going to raise rates. Betty housing data is out before the fed decision. Mike housing starts, the interesting thing is not so much that number. When we raise rates, the Mortgage Rates will go up a little bit. To the rush out and buy houses ahead of rates or do they say we do not believe they are going up very fast . Betty economics editor mike mckee, you will be raising the death really bu