The u. S. Stocks set to surge at the open. A hectic agenda on capitol hill with President Trumps 100 day milestone looming. Taxes, health care and avoiding a Government Shutdown all on tap. Robot warnings. Alibabas jack ma is predicting that robots will make many irrelevant. And first up though, global rallies in place a day after the first round of the french president ial election. Macron and le pen set to square off in a runoff may 7. Shutting out frances traditional ruling parties. Polls show macron as favorite to defeat the antieu le pen in second round and win the presidency. These polls, jim, somewhere 6436. Some argue this was one of the best outcomes the market could have hoped for. It is, but i wanted to distinguish between them and us. I think that we should not go up as much as they did. They had a lot more at stake. I think were going to quickly revert to what has controlled us which is oil. Which is already sinking. The Interest Rates which need to go higher. And our earnings, we were really one out of three. Just the last one. I warned people again that when you buy up this much, its usually not been fruitful. Wait a little bit. Wait till oil goes down. Wait until people says you know what, were focused on the Government Shutdown and then you get your chance because the Government Shutdown is a bit of a canard since all three entities of the house, the senate and the president are uniquely set to do something, but remember paul ryan is the key here. And so far he hasnt really been the delivery man that i think people expected. The senate gets back tonight. The house gets back tomorrow. Deadline is friday to extend the government funding. Now we have this dynamic where the president is offering a dollar and obamacare subsidies for a dollar for wall building. Right. Thats a horse trade thats within his cabinet, but not within congress. Look, i think that congress very much wants to keep the government open. I just dont think that theyre on the same wavelength. I dont. So do you give it a chance that we could be facing no. Most pundits give it a small change that well face a shutdown. 20 . So 20 . Just because i want to see what the tax proposals are. I want to see whether there is an immediate backlash from the republicans that were really busting the budget. Maybe we have to teach a lesson to the president. I think its odd but if you look at france, lets analogize. The ruling parties have disappeared and who knows how macron i mean, this guy he represents roths child. He worked for roth child, inc. Wilbur youre talking about . No macron. Former investment banker. Im saying that we dont have party fealty in either country. So its too early to declare an outright victory for the merkels of the world. The globalists so to speak. Well, he was the biggest fear monger last week. I think its important to point that out. I know that youre not supposed to. And i did it. I will be here again tomorrow, i hope. I expect you will be. As far as the tax announcement that we expect to get this week, mulvaney over the weekend now says its general Guiding Principles and apparently the president has not even decided whether or not this was going to be revenue or deficit neutral. Right. I know, but its going to be huge. Well, i mean, remember that the big splash effect of the president and then whatever happens will be viewed as a big splash. Im not being facetious. I just think when a guy announces theres going to be a huge plan, i dont think that i think that this administration does a little bit more on the fly than i think a lot of the other administrations do. I dont think that this is a president who sits down with hundreds of people. We had an interesting article who the advisers are. A very close knit group. Interesting to read. Many of those names are names we know certainly from the business community. Not unexpected that he speaks with carl icahn on stephen schwartzman, a frequent visitor toer the white house and they dont to be on the same schedule. The reference youre making to fridays interview with the a. P. In which he said the biggest tax cut of all time and seemed to indicate wednesday and then everybody had that walk that back, marley at treasury where they were particularly at treasury where they were unaware. This is unaware. A different kind of cabinet. Look, we have come to recognize that the president is his own guy. Even to the extent he has a lot of people discussing and then he reaches conclusions. And he is given to, um, to hyperbole is that fair . I think thats fair. Thats the way hes always been and always operated. As a new York Real Estate straight out of art of the deal. What was the most important show on tv. Best ratings. To the bigger picture, jim, i think there are those who wonder whether or not youre able to effectively marshall the resources you need to do execute on capitol hill. Right. And thats because there it can get somewhat complex as the number of people have learned. Right. You had the president say at one point he didnt realize health care was as complex as it turned out and mnuchin said that tax reform wouldnt be as complex as health care. We found out that china was more complex north korea was more complex, yes, when it was a lot of complexities. After ten minutes with xi jinping. Look, we want tax cuts though. No one wants their health care touched except for they want it to cost less. But in terms of the tax cut thats not something that people say you know what, im not going to stand for that. Theres a hard right part that says were worried about it. But america loves tax cuts. This is something that the president should really press because hes not going to get a lot of blow back. Provided it isnt just a tax cut or the for billionaires. The billionaire bears because they want to keep on the stock market every chance they get. The irs doesnt have thatdefenders. I know theyll try to outsource the debt collection. Did you ever get the debt collections . I was on more shaky finances one time. Its really interesting when they call you. One of the robocalls from india said i had to call irs immediately. The exxon is like the irs i gave them a payment plan but the bank those collectors get their man. If you dont want to be you dont want to be on the other side. They tend to be very reasonable up. If you can pay. For more on the French Election lets get to paris. A live report this morning from wilfred frost. Good morning. Reporter good morning, carl, yes indeed, so why are markets rallying this morning . Its because investors think this election is done and dusted. They think that the pairing of mr. Macron and madam le pen means for certain means that mr. Macron will win. Why do they think that . Lets look at the 2002 president ial runoff election. That was the only other time the National Front made it through to the second round. In that second round vote, chirac got 82 against Jean Marie Le pen who got just 18 of the vote. The thought is in the second round, voters unite against the outside candidate. Indeed the polls this time around show a big gap. More like 6040 to macron than 8020. But an uphill battle for Marine Le Pen. But things are different. In the first round the vote was much closer and more candidates at play. Therefore, key in the second round is what happens to the roughly 40 of voters who opted for the far right or the center right francois fitton. He was come to come out loud and clear and back macron in the second round and encouraging his voters to do the same. Melench melenchon, the leader of the far left party has not done that, even though in 2002 he did come out and back jacques chirac. To dive into that deeper lets look at how working class voters here voted yesterday. Le pen won and by a much bigger margin than people expected. 37 . Macron just 16 of the working class. Melenchon in between the two as you can see. Thats 24 . Which way it goes will be key for this election. But the bottom line, as you have already said the market very confident that macron wins. Two key positions that le pen has that arent palatable to middle ground voters. Firstly her tough rhetoric on immigration. Often labeled as xenophobic and her position on withdrawing france from the eu. This is much tougher to get past the voters than brexit. Its a bigger risk to their economy. Wilf, theres one big debate which chirac famously demured from participating in. I wonder if macron has made statements about whether hed face off against le pen in a debate. In terms of a Television Debate, im not sure. There were three in the last round in which in fact mr. Melenchon im not sure to be honest if theres a Television Debate at this stage. The markets are watching everything between now and may 7th. Wilfred frost in paris. Can i point out that wilfred frost was out there saying that maybe the polls could be right and that this was not something that if you followed him was all that surprising and congratulations, because it was certainly a different calm view into the election. I really appreciate what hes done. Good reporting. Do you think it was an affirmation in polling of sorts . Yes. I think the High Water Mark was the netherlands when they failed for nationalism. The you follow what wilf is saying, theres more of a globalist, pro euro feeling out there than people realize. The euro, really running here. I think that does matter for american earnings because it takes away the negativity we dont know what will happen with the currency. Listen, europe has been strong. Well, the german index is strong and takes the pressure of of what draghi has to say. We are so worried about the banks. Any one of them can refinance today. If you bought on the big deutsche bank, you killed it. I think thats very important for people to recognize that if you buy remember, all these banks are short of capital. I know the standards are quite different, but it takes the pressure off. All right. Interesting. The cac on pace for the best day since the eurozone summit in which they did arrange for easier financing of banks. I think we have to stay on this story because i think we all want to try to call a bottom in europe and that happened a long time ago. I think pvh has the best call which is tommy hilfiger, calvin klein. The best part of their product is europe. What does that say . Thats high end over there. So keep in mind that europe is stronger than we talk about here. Well gear up obviously for a big open here on wall street. When we come back, well get to movers on the m a front and also, jeanclaude trichet. The s p is less certain, but well watch it closely. Squawk on the street from post 9 is back in a minute. So what else is new . Hows your mother . Umm. Shes doing good. She needs more care though. She wants to stay in her house. I dont know even where to start with that. First, lets take a look at your Financial Plan and see what we can do. Ok, so weve got. Well listen. Well talk. Well plan. Baird. Hey youve gotta see this. Cno. N. Alright, see you down there. Mmm, fine. Okay, what do we got . Okay, watch this. Do the thing we talked about. What do we say . Its going to be great. Watch. Remember what we were just saying . Go irish see that . Yes im gonna just go back to doing what i was doing. Find your awesome with the xfinity x1 voice remote. Dow hasnt had a 200 point rally since march 1st when it was up 303. That was the last record high for the dow and s p. Well get close though. Looks to open at 220. We have some m a to get to, carl. Medical supplies Company Becton dickinson acquiring rival cr bard. Mostly cast and some stock. Ppg is back in the news. Why . Well, its once again sweetening the unsolicited offer to buy akzo nobel. This time up to 28. 8 billion in cash and stock and they did increase the cash portion by four euros. Akzo nobel says it will review and consider the proposal. Lets talk about both deals. Lets start off with the deal itself this morning. Becton dickinson, actually it was yesterday, about 5 00. Roomed into my rolled into my email. About 223 in cash. Theyre leveraging themselves up to 4. 7 times. Thats an inconsiderable amount of leverage on the Balance Sheet. Theyre using stock. They wont need a vote. Theyre not issuing more than 20 of their stock. About 15 or so. Some people see the fit and other analysts say, well, theres some fit, but not cleat. Its accretive. Theres some cost savings and ill be curious to see how the stock price reacts this morning. Look, i think the combination is great because youre shipping to hospitals and bard has an amazing, amazing catheter franchise that fits in well with the general suite of product. The hospitals have wanted over and over again and said they want fewer providers. We dont want a lot of providers its so much easier for us. Its so hospital friendly and that brings consolidation. 24. 7 times 2018 consensus numbers. Also looking at 18. 6 times ebitda. Im told high end of the range in terms of med tech transactions. Well, i had sent a memo to my mad money staff sunday around 2 00 saying, youve got to get to the bottom of why bard keeps going higher and then at 5 00 this comes out. Okay, at least we know why. Theres been some chatter so that brings me to question if there was someone else involved . I dont know there was. They seem to have gotten a good price. Well know when we get the background of the merger. I wasnt able to talk to anybody involved who indicated one way or the other. There was some sort of question, well, was bd feeling some pressure, again, levering up, not having to worry about a shareholder vote. But theres Becton Dickinson the stock has been a winner. See how that stock reacts. I live near the headquarters of bard about, i dont know a stones throw. I have to tell you, i guess i dont want to say who knows who will survive or whos not, these two are next to each other. You certainly dont need two headquarters. No. 25 premium to the unaffected stock price. To your point how do you hedge against this . They did a strange 222. 93 in cash. How do you short it to be able to make what are the you dont worry about that part. You worry about the stock parts. Lets move on though quickly to ppg which keeps coming, jim. They go up by four euros in cash. By raise by 7. 5 over the last bid. Interestingly they also this time say that theyre willing to include a reverse breakup fee. They dont tell us the number but if there are any antitrust concerns on the part of akzo nobel they want to reverse them. Please, lets talk. Lets sit down and try to get something done here. Its unclear what the response will be but you can see certainly the response in the stock price. And these guys would have to come hostile by june 1. Thats under takeover law over there. Theres a presence of a shticking and that can make a takeover difficult. Akzo nobel does have elliott in the shares which seems prepared to keep applying pressure. And theres sort of a diversion here i have to say amongst the takeover stock stock takeover investors as to whether or not ppg will find a path here that gets them to getting what they want. Which is sit down prior to june 1 and obviously we have the threat that they will go hostile. You have some thoughts about ppgs business. Well, i just think first of all, chuck bunch who ran that company excellently for a long time, i dont believe hed go hostile. They missed the quarter a couple of times which is disappointing. They have seen regular earnings. One of the things that structures me to get the deal done, think had to get rid of the division, sell it to axalta for a give away price. Youre dealing with the duopoly with the banking companies. I dont know how the Justice Department will handle this. They didnt like the valspar and Sherwin Williams deal. They take steps to make certain assurances about jobs and keeping jobs, you know, at akzo noble. Operations in the netherlands and those kind of things, jim. And of course the presence of this reverse breakthrough. Well be watching this one. But it is getting up there. Is it ugly . Getting a little ugly. Dont forget the shticking. Well get to cramers mad dash. Virtually every Global Market in the green except for china interestingly. Back in a moment. Six minutes before the opening bell. For the start of trading this week. We want to talk a little kimberlyclark in the mad dash. We have to focus on some stocks that really didnt deliver. Kimberly this is in relation to unilever not being able to be bought by kimberly. I mean, by kraft heinz. You better not outshort so unilever says no to kraft heinz. Start speculating about what others might be in their sights. You would have seen the same reaction in colgate. Thats right. So what happens now is we have to examine what if the earnings are a bit of a miss and they are. Now organic sales minus one, north american not that good. Tax rate was down a bit. Cash flow from operations down. I think that cash flow has been the mark of this Earnings Period so far. We have been looking at cash flow, that said no one ever got no one ever got buying kimberly on a discount. I happen to like the company very much. Be aware. This kraft heinz premium is just really created a level of you know, you have to look over your portfolio and make a decision whether you have been boosted by kraft heinz or not. Because thats whats going to cause this a great point, jim. Okay. We will be looking over a lot of portfolios. That is a lot of stocks of course when we get the opening bell. Netflix doing another 1 billion euro bond deal. We have other smaller deals. Well get to that when we come right back. At fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. And at 4. 95, you can trade with a clear advantage. And at predictable. An trade with a clear advantage. The comfort in knowing where things are headed. Because as we live longer. And markets continue to rise and fall. Predictable is one thing you need in retirement to help protect what youve earned and ensure it lasts. 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