pharma giant pfizer is spinning off its biggest brands. also on the show like it or leave it europe's top court rules against that ubiquitous facebook like button. on external web pages. and europe's single labor market has mostly been a boom for member countries with weak job markets but some citizens are still off the books would mean a romanian day laborer who moved to italy. this is your business report i'm stephen beers in berlin thanks for joining us. u.s. drug giant pfizer is spinning off its older branded medications into a merger with generic drug maker milan and pfizer would have a majority stake in the new business which would both sales of $20000000000.00 annually and own the rights to some of the most familiar brands of the pharmacy including advil and cholesterol pill if it's worth all of which have lost patent protection making them less profitable the spin off would allow pfizer to focus on newer patent protected medications which are more profitable and it comes as u.s. drug companies face intense political pressure to low

pharma giant pfizer is spinning off its biggest brands. also on the show like it or leave it europe's top court rules against that ubiquitous facebook like button on external web pages. and europe's single labor market has mostly been a boom for member countries with week job markets but some citizens are still off the books. median daily for who moved to italy. this is your business report i'm stephen beard in berlin thanks for joining us. us drug giant pfizer is spinning off its older branded medications into a merger with generic drug maker milan and pfizer would have a majority stake in the new business which would both sales of $20000000000.00 annually and own the rights to some of the most familiar brands of the pharmacy including advil and cholesterol pill limits or all of which have lost patent protection making them less profitable the spin off would allow pfizer to focus on newer patent protected medications which are more profitable and it comes as u.s. drug companies face intense political pressure to lower their prices. democr

pharma giant pfizer is spinning off its biggest brands. also on the show like it or leave it europe's top court rules against that ubiquitous facebook like button on external web pages. and europe single labor market has mostly been a boom for member countries with weak job markets but some you citizens are still off the books the romanian day laborer who moved to italy. this is your business report i'm stephen beers in berlin thanks for joining us us drug giant pfizer is spinning off its older branded medications into a merger with generic drug maker milan pfizer would have a majority stake in the new business which would both sales of $20000000000.00 annually and own the rights to some of the most familiar brands of the pharmacy including advil and cholesterol pill if it's worth all of which have lost patent protection making them less profitable the spin off would allow pfizer to focus on newer patent protected medications which are more profitable and it comes as u.s. drug companies face intense political pressure to lower their prices

pfizer there.

pfizer and mylan's drug deal. theer will combine with generic drug business which could trigger more movement in the pharmaceutical space. the cat is out of the bag and victoria's secret. the lingerie retailer is struggling with its image now with ties to jeffrey epstein. abigail doolittle is here. halfway into the trading day. >> we are off the lows to some degree, ahead of the fed on wednesday. investors eagerly awaiting to rate cutthe potential decision will yield. right now, the dow up 1.25%. the nasdaq down half a percent. a bit of a reversal from last and nasdaq&p 500 retreating from all-time highs. the vix popping ever so slightly, but very small moves. waiting for the fed. this is what we saw last summer. we had three months, greater than that in fact, of moves less than 1% both to the upside and downside. although the s&p 500 did reach record highs on that. huge volatility in the fourth quarter. this year, lots of moves up and down greater than 1%. in the last 35 days, back into these smaller moves. inter

pharma giant pfizer is spinning off its biggest brands. also on the show like it or leave it europe's top court rules against that ubiquitous facebook like button on external web pages. and europe's single labor market has mostly been a boom for member countries with weak job markets but some even citizens are still off the books would mean a romanian day laborer who moved to italy. this is your deed of your business report i'm stephen beers in berlin thanks for joining us us drug giant pfizer is spinning off its older branded medications into a merger with generic drug maker milan and pfizer would have a majority stake in the new business which would both sales of $20000000000.00 annually and own the rights to some of the most familiar brands of the pharmacy including advil biography and cholesterol phillippa tour all of which have lost patent protection making them less profitable a spin off would allow pfizer to focus on newer patent protected medications which are more profitable and it comes as u.s. drug companies face intense politic

>> pfizer offloaded some stuff, but i don't think pfizer's that great. we have so many good drug companies reporting this week. eli lilly is good, merck is really good, but good for milean, because they have mylan was in a permanent downtrend it's kind of a wake-up call. but pfizer, i thought if they offloaded this, people would like it, but no one seems to care. >> okay. jim cramer, we'll see you in just four minutes from now. >> thank you. >> and don't miss "squawk on the street" tomorrow we'll be joined by mohamed el erian, chief economic adviser at allianz, on set to discuss much with him tomorrow. back in a moment t not when to u. do i use aflac when the kids get slime in the plumbing? no. that's home owner's insurance. slime in my motorcycle. no. that's motorcycle insurance. slime everywhere? ughhh nooo, there's no insurance for that. do they help when i have bills health insurance doesn't cover? yeah! that's it! aflac! gross guys. get help with expenses health insurance doesn't cover. get to know us at aflac.com >>> final check on the markets, fla

we'll get more on mylan and pfizer in just a minute. macro perspective, here is how your week is setting up right now. futures not giving us a lot of indication about this market so far. let's call it down 15. let's call it flat to be generous on a monday now, last week solid for every index but the dow. small caps and tech both up more than 2%. we have a guest that says one of those is still a great deal for your money will bring that to you in a few minutes time bonds been more stubborn on an old mule benchmark ten-year note sitting still. the upshot of that mortgage rates going to continue to stay low. around the world, kind of a mix to lower trade you'll notice a trend. the trend is that we don't really have a trend. in the asia markets, look at that, we're down a little bit, hang sang okay down a percent. shanghai down a tenth. japan the same europe similar trade as well mostly in the red. ftse up a percent as well. we have the boris johnson put on this either way, we're not seeing a huge trend out there the markets clearly are wai

pfizer spin off a unit it calls up john and combine with mylan. it will create a sizable new company. yet to be famed. with sales of up to $20 billion next year. and the marger marks the closer of of a -- chapter for heather bresch. she's best nobody for the pubc for defending the price increases on the epipen and an episode thato contributede stock's major decline over the past few years. the mylan chairman robert coury will be the executive of the new company and pfizer head of up jon michael getler will be ceo. the deal is a culmination of a year long strategic review amid pressure on u.s. generic drug prices and a government rices in then into industry. >> i'll be the first to admit i was one of the skeptics about mylan to get a solution for the situation but clendly they f just the right party to merge with who had a lot of cash flow and also was willing to do the deal. >> pfizer reported the second quarter results today with revenue missing wall street estimates. forhat company, the deal marks a further streamlining of the business under n c

alix: let's go to mylan and pfizer. pfizer merging its generic business with mylan. my question is who else needs to merge? brooke: this is a unique situation. it reminds me -- remember pfizer trying to buy allergan and they were going to do a similar deal and merge to the higher growth assets, and then you have the lower growth generic asset. this is a win-win situation for both of the players. i do not know if you have that exact dynamic any world but it is a great deal for pfizer. they get a load of the new company with debt, and take the $12 trillion and invested in assets while getting rid of their less attractive products. for mylan, it gets it out of the holw. europeanan has a good presence. brooke: mylan was also the distributor of epipen. they are giving mylan significant control over the board and investors do not have the highest opinion of mylan's management skills given the company's struggles, so that dynamic is curious to me. i'll be interested to see if there's any push back down the road. alix: and here is debt. brooke: figure that out while you try

in terms of mylan's headlines, the company says fire -- pfizer share holds -- says pfizer shareholders would get more than 57% of the company. upjohn will issue $12 billion in debt prior to separation, and upjohn will be split off to pfizer shareholders. sam, do you know what a reverse trust transaction is? cuff.o, not off the sorry. scarlet: it sounds complicated. sam: it does sound complicated. let me go back to my desk and ask other folks what they can make out of this. now seeingr is revenue at 50's -- $52.5 billion. they are also getting us adjusted eps. 2.76 2.86. it sounds like they are bringing down expectations. sam: if upjohn is leaving the business, they are simply adjusting for that. at the end of the day, i think this is the right thing to do for pfizer. it is good they found a home for it. it creates a behemoth. and it really puts the rest of the industry on alert. generic pharmacy businesses. it will be an interesting outcome for both companies. sam fazeli, thank you for rushing onto the set and giving us analysis. once again, mylan to combine with pfizer's upjohn in an

pfizer and boeing lagged noticeably pfizer was to the downside new highs, modest new high group. colgate, at&t. not a particular pattern in the new high list. we need to see a little more breakouts back to you. >>> nasdaq big u.s. und underperformer let's go to bertha, a little bit of overperformance, and chips, and set to report later on this afternoon. the street is looking for 1.78 on $2.2 billion in revenues and was upgraded this morning by ever core. we have had new highs from texas instruments and from olin which is going to be reporting later this week. apple, tomorrow, and today, top $210, the first time since may 3rd. didn't stay there. went back into correction, but it's poised to fall out again if we see good numbers tomorrow back to you. >>> the meeting kicks off tomorrow with a rate cut since the first time since the financial crisis as of today, 73.9% say the federal cut by 25 points, why 26.1% say it will cut by 50 points . >> former federal reserve chair janet yelling gave her take on the upcoming fed decision at the aspen economic strategy committee. >> although

pfizer also announced a deal with mylan. mylan will receive 43% of the new company and pfizer trading down into that. about theis talking fed. here's the 10 year yield this year on the year, down 60 basis points, city three basis points which is a huge rally but this area could debt consolidation appears we can have the 10 year yield bottoming out of the fed supporting the idea is higher in the month of july which the first time we have seen them since april. it will be interesting to see what cut rate cuts they cut and the language. is the language priced into the tenure deal? technicals messages that will be the case but we will wait until wednesday to find out. sheryl: thank you so much. coming up, three months after talks broke down, u.s. officials are heading back to china to restart trade negotiations but was to have been a different. we will discuss,'s bloomberg. ♪ mark: president trump a signed a bill ensuring that of victims compensation fund for 9/11 never runs out of money. the rose garden with first responders

suddenly, she does this deal and people say, you know what, pfizer doesn't think they're idiots pfizer's willing to partner with heather bresch. >> so, mylan comes out, gets more bang for their buck on this one? >> yeah, and they got the up -- look, they're -- the margins are not great, one, generics but i think that heather bresch is able to say, you know what, you think i'm awful? pfizer partnered with us so cover your short. >> that's true you've got that. >> got to hand it to her. >> and sanofi beating and raising their guide, one of a string of raises. >> i think lilly's going to do that i think merck's going to do that i think this is a week where you're going to love pharma, except for the fact that if you think elizabeth warren is going to win because in her new -- her position paper that she released, she's basically calling for drug companies to make no money. >> this is true. >> because if you get a drug, a cancer drug say from italy, that's what they're going to sell them for here from bristol-myers, forget it there's no profit. there's just no profit, you know but elizabeth

for pfizer, it marks a further move to patented medicines which are often pricier. as we head into this week's democratic debates, the pressure on drug prices is continuing the latest, bernie sanders appeared to compare pharmaceutical executives who hike up drug prices to murderers. echoing comments from president trump who once said the pharmaceutical industry gets away with murder, guys >>peppery words there. stick around as we talk a little more about the mylan deal, which has been described as a goldilocks situation according to mizulo analyst irina kofler, but she issues a warning for the rest of the generic drug space more deals like this are unlikely she joins us now, has a neutral rating on mylan shares and a $25 price target irina, welcome i'm glad to have you here. >> thank you for having me >> i can see where this makes sense for mylan and may help its stock price. i can see where it may well make sense for the remaining company pfizer, because they're going to get to sell more pricier drugs that are still on patent but what eludes me is the idea of why a

when jane's comey signed the first pfizer application in october 2016, winter trump tower in january 2017, and told you it was unverified, months earlier, he swore on that application, the pfizer application that was verified, so he lied. what are your thoughts about these people today? >> president trump: well, comey is a liar and a leaker and that's obvious. all you have to do is just follow him along and see what he said to congress. klapper ends brennan and all of these people, mccabe, these are bad people. my opinion, they are very bad people. they've been very bad for the country. they were -- i used to think incompetent but they are really i guess competent at other things and maybe bad things but we will see what happens. i mean, i guess a lot of things are coming out and is going to be very interesting and it will be great to clean up a real big mess because again, it could never happen. this could never be allowed to happen again, sean. >> sean: mr. president, you have the power to literally release the pfizer application and the three oh two's and the gang of information a

pfizer has said that will continue. but this focus on cancer therapy. the bristol deal was a cancer deal. eli lilly made its own play their. there is a trend here that we specificg with m&a for high-growth, high-margin cancer therapy that we likely will see play out further. is bloomberg health care reporter riley griffin. caroline: we want to bring you up-to-date with some of the exclusive headlines we are getting from mexico. amlo saying that the oil company won't get emergency funds. also talking about migration, saying that migration flows won't improve without a development plan. mexico can't accept the third country deal. shouldo trump, trump tone down his rhetoric toward mexico. mexico is not growing as expected but no recession is inside. make sure to catch our interview with the president of mexico later today. caroline: time for a look at what stories are trending. terminal users are reading about that hired unit individuals convicted of crimes. allegedly, they didn't screen $1.25 millione a fine. , a shadow of jeffrey epstein two-decade reign

we beginonight with pfizer, which was downgraded to equal weight from overweight at morgan stanley. the analyst says that yesterday's spin-off deal with mylan may have inadvertently exposed a lower than expected earnings potential in pfizer's businesse price target, $40. that stock sells 6% today to $38.79. also at morgan stanley, micron was upgraded to equal weight from underweight. ths analyst s the trade tensions are driving short-term inventory accumulation right now. price target, $48. that stock rose more than 1% to 47.46. >>> still ahead, big pharma big profits. despite pressure coming from washington. ♪ despite pressure coming from washington. ♪despite pressure coming f♪ ♪ ♪ acquie ♪ >>> it is one of the largest-ever data breaches of a big bank. capital one financial says a hacker accessed the personal information of millions of credit card customers and applicants. the scale of the hack and questions over other potential vu erabilities sent the sto lower in today's trading session. aditimooy has . >> reporter: it is one of the biggest breaches to hit a bank, and

i think pfizer is -- mylan because it has a deal with pfizer so heather breast gets to buy more time? >> the quarter wasn't good at pfizer it wasn't good relative toment ment some of te other pharma companies johnson & johnson hands down you have to buy some things that have a little bit of hair on them >> hey, hey, hey >> sorry >> well that's why the uri, i get that >> a little bit. johnson has some hair on it but guess what >> that thing is -- >> $80 billion a year. >> 3m looks like it's a shaggy dog. >> health care was good. >> your dog looks like 3m. health care finally broke out. >> toss it all in there. >> love canal. >> we have to take a break this american teenager just won $3 million in the fortnite world cup over the weekend how can you play the big business of becaming we'll give you the edge. the s&p 500 sectors, real estate leading the way up 0.5%. consumer discretionary the bottom of the packow dn 1% "halftime report" is back right after this ... or its sign of intelligence? in crossing harsh terrain... or breaking new ground? this is the time to get an exceptional offer

why is pfizer down more than 2%? because it cut its full year profit and revenue forecasts during its earnings announcement today. so you can see, not a great day for pfizer. >>> okay, everybody. get all your binge watching of "big little lies" and "the office" and "stranger things" done tonight. at this time tomorrow, the federal reserve will be emulating "the thinker" scratching their chins as voting members ponder what to announce wednesday when it comes to interest rate policy. folks, this is going to be major. a quarter point cut is widely baked in. but there are some who believe it could be half a point. but wait, there's the earnings menu this week that is very crowded. beyond meat, apple with a side of chips. if that isn't enough, we have drug makers and big oil on the week specials, everything from procter & gamble, berkshire hathaway, under armour, lot of names that you own. what's filling wall street's minds and bellies? earnings or the fed? to our floor show traders. scott, i will talk to you first. we kn

pfizer is purchasing my lawn in and all stock deal. pfizer sure owners will own 50% of that new company. the deal is expected to close by the middle of next year. >>> at tesla owners may soon be able to stream videos and shows on their cars touchscreen display. tesla announces on twitter this weekend. the company will soon allow video screaming, adding that it could arrive as early as august. but drivers will not be able to watch the news on the go, only when there car is parked. elon musk says this could change if regulators give the green light to full self driving technology. >>> he walked away from a massive fortnite tournament. the 16-year-old from pennsylvania made a name for himself at fortnite's first ever sporting event in new york. he dominated the event. taking home and a grand prize for solo players. $3 million is the largest ever payout from a single player in an e-sports a surfer attacked b shark, why he decided to go a to a bar afe attack. >>> the pro server is recovering after getting bitten by a shark. >> instead of a

pfizer shareholders will own most of the new company. they could bring in annual sales of more than $20 billion. director quentin tarantino smashes his own box office record with onc upon a -- once n a time in hollywood. >> explain what it is exactly that a stunt double does. >> actors are required to do a lot of dangerous stuff. >> he is meant to help carry the load. tracee: the film brought in $40 million in its debut, not enough to dethrone the lion king. it made $75.5 million. spiderman, far from home, took the number three spot with just over $14 million. the film topped $1 billion worldwide this weekend. and discovery's shark week has officially kicked off and just in time. kelloggs announced its releasing a baby shark cereal. it will feature berry flavoredded loops and marshmallows. it ill wil will be available int in late september. lauren: that's a brilliant idea. if only the box could sing. still ahead, showdown in shanghai as u.s. and china trade representatives get ready to talk trade this week, is a deal in sight or will the

>> georgia in ie wowa wants to o should she stick with pfizer >> i've owned pfizer for about a decade at this point at $44 a share, a dividend yield down to 3.25, i think it's coming up as a source of funds i'm not selling it right now but if i find something to buy in the portfolio that has a lower multiple and higher dividend yield, pfizer is on the chopping block. >> jenny from the chopping block. we'll run through our experts' hits and misses. the investment committee will meet in the quarterly report here's your s&p sector check, "the halftime report" returns after this i consulted with your grandmother's doctor. we can do the screening at her house. hi. this is the man that's going to check your eyes grandma. cognizant ai solutions are helping healthcare companies advance diagnostics and prevent blindness in patients with diabetes. everything looks good. you have beautiful eyes. ♪ >>> all right. we're going to take a look back at some of the traders' most memorable calls from the second quarter. >> student loan processer, it's a cash cow with an image problem and a 6% yield >>

stuart: pfizer is a dow component. it will merge its off-patent drug business with mylan, that's the generic drug business. we have pfizer down on that 3% but look at mylan labs, up 13%. >>> big week for the democrats and their presidential candidates. they have two nights of debates. matt schlapp is with us. welcome back, matt. chair of the american conservative union. obvious question. is this make or break for joe biden? >> well, you know, stuart, the air of invincibility is over for joe biden. he was the clear frontrunner and now he's leading the pack, which is still a good position to be in. i think if he has another wobbly performance as he did in the first debate and he seems a little out of it, i think it's really going to be rough for him to recover. but if he hangs in there, remember, we have a long way to go. we have six months to go before votes are cast. stuart: is it going to be -- who's going to be the major target here? joe biden or president trump? >> you know, that's a great question. i think for joe

pfizer shareholders will own most of the new company. the deal could bring in annual sales of over $20 billion. did you go to the movies this weekend? quentin tarantino smashings his own box office record with once upon a time in hollywood. >> explain to the audience exactly what it is a stunt double does. >> actors are required to do a lot of dangerous stuff. cliff here is meant to help carry the load. lauren: the sony pictures film brought in $40 million in its debut. it wasn't enough to dethrone lion king. the disney remake held onto the top spot, making $75.5 million over the weekend. lion king helping disney smash through the all-time annual global ticket sales record for a single studio in just seven months' time. disney taking in $7.67 billion in ticket sales this year, that beat the previous record, $7.61 billion set by disney two years ago. so disney winning at the box office. charles: as a box office winning now, for first four, five months felt like they were down and all i'm hearing is records, records, records. lauren: the r

pfizer says it is buying mylan in an all stock a deal. the merger would combine the tender billion-dollar genetic pharmaceutical company with advisors on generic off patent business. pfizer shareholders were on more than 50 percent of the new company and the deal is expected to close in the middle of next year. >>> a new survey finds nearly half. 46 percent of millennials a monthly handout from their parents. the biggest items that parents are paying for include cell phones, groceries, and rent. also the survey, roughly 1/3 say they do not expect to be able to buy a house in their lifetime. >>> let's go live to wall street and get a look at the big board. it looks like the dow is up about 33 or 30 for points at this moment. >>> if you have a consumer problem or question, emails. consumer watch on kpix.com or call the hotline , we will be right back. >>> coming up, we have complete coverage of the gilroy garlic festival shooting including the latest update from police this afternoon. plus moronta victims an investigation into the suspects

pfizer there. chipotle is up 3.5% today. expect other restaurants to do well. the initiation includes stocks like starbucks. 500 is still down a quarter of 1%. we are getting some diverse action among the major indices with the now stack -- nasdaq and dow almost down 1%. let's get to our top story. let's start with the central banks. a massive week for central banks. overseeing the fed is at the nickel of that mountain -- pinnacle of that mountain. do you think that this 25 consensus is setting us up for a surprise later this week? it sounds slightly contradictory. we have 25 priced in. if we get to five, do equities fall on the back of that? is that an opportunity? if we get 50, does it go up? i am wondering what the opportunity for the pale risk scenarios are. >> it is fascinating. here is the first stop of a rate cutting cycle we have had since september of 2007. it is very unusual and a rare event. the market prices it to be a rate cutting cycle. the market is pricing 100 basis points out of th

pfizer i think we are still waiting for. alix: all pressure being put on it. david: a lot of attention. assets, we are taking a look at under armour, procter & gamble. under armour pretty good. they see full-year revenue coming up by 3% and 4%. the market still down by about seven points for the s&p. procter & gamble pretty solid, up by 3%. 2020 organic revenue growth coming in pretty strong, beating estimates. core earnings growth also beating estimates. david: they see more organic growth coming up, so a good forecast as well. we will definitely get a good read on the consumer through the next couple of hours. you're seeing the s&p down by seven points. it is a mix. the cable rate completely falling out of bed. where will you actually see the bottom? finally it seems like markets are understanding a boris johnson prime ministership and the potential for crashing out of the european union. yields pretty much go nowhere. crude up by about 1%. it is really the cable rate. it has been unbelievable. the gauntlet thrown down. david: as you say, boris johnson is pl

the pfizer application. john ratcliffe, all of us have been saying for a long time that it was a fraud that was perpetrated on the american people. because they said this was all about papadopoulos. it had nothing to do with papadopoulos. >> sean: the whole thing was a lie from the get-go. the people that did it knew it. they kept hoping they would find information on president trump. it's time that we actually tear it all back and let the american people see for themselves. >> why do i think, and i'll throw this to the lawyer, hannity knew that what i was presented to the court was an absolute live, and now we know there verifiable. even the fbi knew. my would be in jail. >> sean: it was a fraud on the court. he likely admitted that he warned the fbi they needed to vet this, because it was raw intelligence based on limited intelligence and unverifiable. >> they'd tried to literally commit a coup on information they knew was a lie. absolutely. they tried to undo an election. >> i would have gone to jail. >>

the biggest news of the week is the mylan-pfizer merger. pfizer is spitting out -- spi nning out a unit that is the old legacy drugs that have gone out of patent and merging it with mylan, one of the largest generic manufacturers. that is a significant play, a surprising want to some. but mylan watched the strategic review about a year ago today to tackle some of these u.s. generic drug pricing headwinds. guy: is there a sense in the markets as a result of the mylan transaction that some of the valuations on drug companies globally probably don't add up, that if you break these businesses apart there could be more value in there? riley: absolutely, that is a strategy that a lot of different drugmakers are taking. the pfizer ceo outlined that he wanted to streamline the company and focus on higher-market drugs -- cancer therapies, vaccines -- and he has been doing so. he made a play for a cancer company. acquisitionillion there. taylor: i want to talk about eli lilly, which we heard from this morning. one thing that stood out to me --that yo

where do you place your bets on this pete >> i'm not a happy camper on the fact i'm long on pfizer, merck and a couple of names long in the space. i think it will create an opportunity because they put a good hurting on day one of the news, right? it is a good shot to the down side so i'm looking at it saying, you know what, usually there's no one-day events normally. i will give it two, three days and see what p has out of these, but it feels oversold in terms of the reaction for them on the other side i think some of the providers, i think there's plenty of upside still after a day like today whether it is cigna or names like united health. >> you are in one, right, karen? >> i'm in anthem i had anthem for a long time, bought some when the democrats sort of were talking about dismantling the whole structure, and then sold it probably -- well, too early. but i was a little perplexed by the action today in that, okay, i get why the pbms and the insurers were up they get to keep parts of the rebate what i don't get is why the administration changed so quickly and, you know, it seems somebo

that's a big difference from the 80s when kimberly clark, coca-co coca-cola, colgate, pfizer were the real growers and motorola and ibm took a backseat with growth awesome number this evening. i think there could be more money going the way of the coke's and kimberlys because this evening the justice department is investigating the giant tech companies like apple and amazon, facebook, see if they are stifling competition. this is a change of heart for competition which has been a starch defender, abilities to compete globally but they will have to face scrutiny that could stifle their own create yeivitcy this is a buying opportunity, why? because the wheels of justice grind so slowly. what does the reversion to the healthy consumer package good stocks today, what does it mean for the market does it mean for you first and foremost, you finally got some fall back stocks, some very good stocks to fall back on if this market stumbles. as freight cost keep coming down and advertising becomes cheaper, the gross margins will continue to expand. normally i'd be worried about encroaching priva

pfizer is close to a deal with generic drug maker mylan to combine its off patented drug businesses a cnbc source says a deal is expected to announce today and would see pfizer die vest its business and combine with mylan. according to our source, pfizer shareholders would own majority and mylan investors would hold slightly over 40% of the new entity. >>> the u.s. justice department has formally approved the $26 billion merger of sprint and deutsche telecom owned t mobile. as part of the approval, sprint will sell assets worth $5 billion to satellite television company dish the company expects to close the deal in the second half of this year but need to overcome a lawsuit from 13 states before completing the merger. >>> and it's another busy week for central bank watchers with the bank of japan set to meet today and tomorrow followed by a highly anticipated fed decision on wednesday non-pharm payroll caps off the week on friday as well and let's not forget about the bank of england wedged in the middle on thursday let's bring in nick ford thanks so much for joining us. before we loo

scott gottlieb has a new gig he was elected to the board of directors at pfizer and appointed to the regulatory and compliance and science and technology committee joining us to talk about more of this and drug prices and the thoughts on medicare for all proposal is dr. scott gottlieb, the former fda commissioner and former cnbc contributor and it is good to see you this morning. >> thanks for having me. >> talk about the pfizer board position how did this come about? >> well, they approached me. i'm proud of the relationship. this is a big global public platform and it will give me a chance to weigh in on the issues i'm committed to pfizer has made big investments in areas of global public vaccine and drugs and generic medicine and there is a good relationship and i'm proud to be part of it. >> we'll put you through the paces immediately. a story in the "wall street journal" that said yesterday 20 different drug companies raised prices on official list prices for the drugs. i think the average was about 13%. so what do you tell pfizer in terms of raising drug prices because that is

to neutral, after pfizer's planned deal to merge its off patent drug business with mylan both of them cutting their price target from sort of the high 40s to the low 40s, similar sort of price cuts for both, and that's kind of why we're trading at the moment what's your take on this one >> this is another one very sensitive to regulation. there aren't a whole lot of things that democrats and republicans agree on, but drug prices they do and i think this a second trump administration or a warren administration or a sanders' administration there would be real pressure on drug prices i think the long-term outlook for these stocks is going to be interesting. >> so are you out of them? >> we do not own any i own j & j, which is well distributed in the med tech, but the core bio tech and pharma companies i think there's long-term risk. >> that's how you feel about social media stocks, stay away, too much regulation. >> technology, the two industries i think they could come at hard are social media and drug companies. >>> time to get a cnbc news update with sue herrera. hi sue. >> hello ever

pharmaceutical giant pfizer spinning off its biggest brands stevens going to be up next to tell you why that's a more right after the break. what secrets why behind the small. find out if any of our city experience and explore fascinating cultural heritage sites. d.w. world heritage 360 just.

whether the intent behind the misuse of pfizer was partisan, was to try to effect the election. really hope that's not the case because i would be a disaster for the justice department. >> mike: that's why we want him to take his time. and that -- we also want to be sure we don't give away any secrets or classified information when the report is eventually made public which i hope it will be pretty soon. >> let's take a listen to this. i will get you to react. >> look at what is happening. and that's the election in europe. you think this would happen on my watch or his watch? but didn't it? >> after watching the debate, when he was getting eaten up by kamala harris, the vice president's 2016 russia did interfere in our elections. if there is anything that the mueller report shows, that in 2016 the russians try to take advantage in the united states tried to interfere. the reason why i'm afraid is because after attack and attack and attack, the fastest military secrets, and that is any kind of deterrence or retaliation. have a wonderful weekend. >> there is fake news circulating

the people that will also have the merger between pfizer and mylan. riley: yes he would it is a little bit complicated, but the chairman of mylan will be heading up his new merged company between my land and pfizer's off patent business unit. yesterday's announcement came out, it really rocked the industry, much to our surprise. we now see that mylan will have greater scope and commercial distribution across the world, including in asia. he is heading up that business. but ceo heather bresch is due to retire. shery: let's talk about the generic drug industry and what is wrong here. give us some examples where the prices have skyrocketed. broadly, the generic drug industry has faced its own headwinds over the past decade. mylan is a great example of that. since 2016, we have seen the company's value depreciate by three quarters. they have had to figure out new solutions for what to do. price collusion that is being outlined in the state attorneys general suit, and what we are suing -- assuming is being investigated by the department of justice, that is

in the u.s we'll talk about apple more with elizabeth in a bit and procter & gamble, mastercard and pfizer to name a few in asia, we had a slightly better session nikkei, we had the bank of japan meeting. the index ending the session about a half percentage point higher not the case for europe. only one hour into the trading session. the broad composite index is down a half percentage point we're in a negative zone this morning. all the focus yesterday was on the ftse ftse 100 yet again bucking the trend. we had that big plunge in the currency yesterday sterling down 1.5 percentage points. that gives somewhat of a boost to the ftse 100. today the results are the index is being lifted a bit by those bp results we were talking about. that we also have bank of england on thursday xetra dax trading a bit weak we talked about bayer and lufthansa dragging it down and we had the cac 40, second quarter gdp numbers came out slightly weaker than expectations the ftse mib down 1% now actually we're a good 50 poin0 s lower than where we were when we went into the ecb meeting last week switching to for

pfizer and mylan are the latest example of that. the environment is very allowing for that sort of thing and this is just the latest example. deirdre bolton at the new york stock exchange with more on that. deirdre: hey, neil. this is merger monday in pharma. analysts are saying more is to come in this sector in the next 12 to 18 months. today, pfizer merging its off-patent drug unit with mylan. it will form a new s&p. mylan shareholders get 43%, pfizer shareholders own the rest. this newly combined company will have products such as lipitor, viagra, xanax and analysts say it will help pfizer focus on new medicines, new vaccines. for mylan it will give the company a bigger platform. that stock lost three-fourths of its value since 2015 as a market for generics struggled in north america. the point for this is they are going to be able to sell the off-patent products in developing countries, so china, other parts of asia. that's going to be in theory a big win for both. some people think going meatless is a healthier choice. not sure

what they say who sells that now you're a young neighbor and i want to put the stephen this comes and pfizer membered says in the black and minority ethnic office from london young loba and selects this point about this concept of the surprise have a. story to collection is tiring fast includes millions of people having sen of our country there is a consequence people heroes life and death situations because mr zinni returns this election really goes 1st don't think the bigger he ramadans the ground's it's my own that's number it is called black people pickaninnies and jeremy hunt has done more than anyone to dismantle our national health service. danielle is kind of i mean i think she she phrased well is simply and you know we've got someone who has and hunt someone who brook the n.h.s. and then we've gone out and bought a someone who wants to sell off to trump and so you know the can't be trusted and we heard from the young women there how much people feel let down by both of these contenders so it is such a false choice they're both absolutely complicit and status the measures which is so

charles: pfizer merging the off-patent drug business with mylan. it will create a new giant. the new company expects 20 billion in revenue and could reshape the entire generic drug industry. they make lipitor, viagra, mylan known for the epipen. pfizer will own 57% of the new company. >>> fires loyalist from capitol hill winning the new director of intelligence african coats resigns. we'll have the latest on that. >>> a past chairman thinks 25 basis points would be fine. i get the feeling president trump wants something a little more robust than that. we have a preview for you next. ♪ hmm. exactly. liberty mutual customizes your car insurance, so you only pay for what you need. nice. but, uh... what's up with your... partner? not again. limu that's your reflection. only pay for what you need. ♪ liberty, liberty, liberty, liberty ♪ when i walked through a snowthat's when i knewtte, i had to quit. for real this time. that's why i'm using nicorette. only nicorette gum has patented dual-coated technology for great taste. plus intense craving relief. every great why, needs a

the dow leaders and dow, pfizer, verizon, usually common once. one i was talking about with one trader, ralph lauren. sales being a problem for them. they talked about getting rid of their company jet because after cultural shift. these are little tidbits i heard on the floor this afternoon, liz. i will throw it back to you. liz: we heard that during the financial crisis. kristina, we're looking at flows. we're saying risk off, people are waiting for gadot. >> if you talk about the balance sheet. we have not brought that up enough. seems like a lot of traders around me are wondering if they continue withing tightening, 50 billion, shrinking it lower. should there be further tightening? or will they hold off, taper off. that could create more volatility in the market. everyone is expecting a 25-point basis cut. a few expecting more. you're right in that sense it will happen. liz: once again we got a new data point, consumer confidence. we also got, it soared basically. we get that data point, that for some makings them believe it gets harder to ju

. >> shannon, pfizer versus merck, who dow yoo you like better? >> we recently sold pfizer i think you want to be careful not to own too much pharma going into the 2020 election but we like merck it has a solid dividend and it has a good platform of drugs and -- >> what's your take on the memphis grizzlies, anything? >> why are we going with memphis? >> what are your thoughts? >> on the mavs, they have a strong young team. you know >> she's a celtics fan don't make her deviate from her -- >> they have boy zin guess who doesn't play >> okay, activision blizzard versus ea? >> let's start with this, ivan, a tough space. the sentiment is so negative in this space that it's probably ripe for a turn around but you won't know that looking at the chart and there's always some negative news that comes out. the answer to your question is ea because this isn't just about how many downloads of apex legends goes on. it's their esports franchise that's what differentiates them. >> do the raptors make the playoffs without kawhi >> more importantly does ivan care

pfizer, merck, lily, all the stocks down. why? because they expect trump to turn to directly possibly going after these drug companies to control drug prices. so this is all about fear and loathing in the stock market right here. eli lilly down 4%. pfizer down two and change. merck down nearly 5%. they're all worried about that, back to the s&p 500 for just a second. i don't know how much closer we can get to 3,000. we're a shade off of that. maybe when everything settles that is over the level. that is meaningful metric here. that is 500 stocks. not just 30 for the dow. thatconnell: that is a record, gerri. maybe one hat a day. jeff sica joins us and adam johnson. adam, we've been through this a million times. back to dow, 10,000, whatever it is, we get to round numbers people say it doesn't matter. sometimes there is some sort of psychological significance to gerri's point, whatever is going on in the world, there bs on the s&p 500, what is your take? >> round numbers mean a whole lot right now, connell. i know we've been saying

pfizer is offloading its portfolio of drugs no longer protected by patents. it is combining with mylan, which makes epipen's to create a new company, which yet does not have a name. >>> airlines around the world are reporting issues from the boeing 737 max affected their performance well into next year. it has already impacted southwest united airlines, european low-cost carrier and another carrier expecting their growth to take a 3% hit next year. earlier this month, boeing said it was set aside $5 billion to compensate airlines for the grounding. many airlines have already removed the 737 max through its schedules through at least january. >>> united airlines is investing in the security company clear. they say they will extend beyond the service to its largest cars. united says it will offer free or reduced membership to its frequent flyers. >>> coming up, continuing coverage of the deadly shooting at the garlic festival. a gunman opened fire killing three people, including a young child. a dozen other people were injured as well, we will update their cond

look at pfizer, down 5% compared to the dow up 15%. not a dow stock but kellogg is in the same boring lane and that stock is down 25%. so you know there are a lot of things to be unlocked. there is still a lot of opportunity. unless you have act crow -- agro phobia, the fear of heights. liz: i have claustrophobia, our fears aside, do you have phobias where you start to see people pile in sitting on the sidelines a little late to the party? folks 1 1/2 minutes until we're on track to see three record closes. go ahead, matt. >> you mentioned volume earlier. people are not piling in. they're being selective. rotation out of farm ma into transports. transports lagged. they are 1000 point off their highs. they haven't participated in this at all. there is room to the upside. financials another one. huge week as we approach earnings. watchwatch out for financials. there are room to the upside. liz: brad, are you looking for financials? you like apartment reits and consumer staples. what else? >> you play consumer goal and slower growth and y

so a lot of legal risks they are battling >> so i said it comes off the list along with merck and pfizer interesting. underperformers going forward. >> here is what i like about the list it is a referendum on the consumer chipotle, collorox and ford goig on, it is a statement on the consumer >> the pfizer and merck, they have a problem and that is president trump wants to come out with an executive order stating that the u.s. will get most favored nation pricing in any drug and it has hurt the sector i see the value there. i don't think that you can buy these names in front of an imminent executive order he said that he will do this that is troubling. i think that that is what is hurting though names >> another interesting list is from citi, they have their top global internet names. alphabet, baba, 10 crept let's take those first >> baba and ten cent are the two that i would go with i think a lot of people are dismissing in the second half of this year. if you are going to get a lower u.s. dollar, supportive global central bank easing, i think that you should see some healing in emergin

this week, pfizer, and today, merck and lilly. pfizer did lower its guidance. merck and lilly out today with beats and raises some interesting stories if you dig down into the numbers and look at their drug performances. let's start with merck keytruda is their huge cancer drug, and they go from success to success in terms of where this drug works. contributed a lot to their beat in the quarter but check out proquad, this is the measles, mumps, rubella vaccine, combined with chickenpox they put all that into one vaccine. that contributed $there 21 billion to their beat, which speaks to the fact companies are stocks up in this time look at eli lilly. remember, bernie sanders referred to pharmaceutical executives as murderers. he was talking about insulin, companies who raise the price of insulin over time. that missed estimates in the quarter. so did another older insulin from the company not all the insulin products missed estimates, but they're not printing money on these things as much as wall street expectations thought it was going to >> very interesting. n