reporter: from bloomberg headquarters in new york, good afternoon, i'm alix steel. here's what we're watching at this hour. plunging after a report saying the company is pharmacies to make their sales higher. we will speak with former treasury secretary, larry summers. shareskluster ipo market for ari going public. -- ferrari going public. for more on the activity, we will head over to julie hyman. again, not a lot of momentum. julie: not a lot of momentum, and less you are talking about

valeant. the story is astonishing. it will be the biggest one-day drop since 2006. i want to start here. as you heard her mention, citron research with a report asking if valea could be the pharmaceutical and runnt -- in run--enron. this reference a report from aother website talking about allegedlyhat valeant owns is reporting it as a sale. this report is highly inflammatory. it also draws other parallels enron, valeant and including quotes from the company leadership at various points in time.

what you're looking at behind me is the top shall -- shareholders. it is a huge drop in company stock. we can see as of the last filing date who owns the stock. the operator of the sequoia fund, 10% of the shares. bill ackman is a big shareholder. we have big institutional ownership as well. a company spokesperson declined to comment. obviously these are inflammatory accusations. alex throw -- alex: we also have a lot of earnings as well. julie: we don't have economic data out today. people are focusing on these earnings. if you look at these winners, it is tough to see why the dow is

up. general motors beat estimates. ex: we want to update you on some news in terms of vice president joe biden. he will be making a statement at 12:1 5 p.m. eastern. the question is, will he run for president? conference this morning, john boehner says he thinks paul ryan would make a great house speaker. ryan said he is willing to be speaker on his terms. he wants backing from all of the republicans upfront. i am in the job i have always wanted in congress. i came to the conclusion this is a dire moment. paul ryan: it is a dire moment for our country. our country is in desperate need of leadership. alex: we are joined with betty liu and larry summers who is at

the center of american progress event. betty: thank you so much. larry, it is good to have you here. there is a lot to go over. we were listening to paul ryan and what he was saying about becoming the next eager of the house. -- speaker of the house. he says he will do it if he thinks they can bring republicans together. is he the right person for that job? larry: that is not for a democrat like me to make a judgment. -- aryan is thoughtful thought the legislature. a strong leader. -- if they dos choose him as their speaker, i would hope that he would be able the separated elements of their caucus. those are caused problems over time. i would certainly hope both

sides could work together to address crucial problems the country faces. who the speaker should be, that is for the republican congressional caucus. betty: the republicans right now are pushing for this bill. this debt prioritization bill that ryan supported. you don't agree with that, right? larry: that will not work. there maybe some technological feasibility, but there is no practical reality to picking and choosing among 80 million checks that need to be written. even if there was come away -- was, why should we decide -- like choosing your children -- why should we decide if we are paying the workers at the fbi or whether we are going to meet our obligations to the students for scholarships. why should we be deciding

whether we are going to pay a soldier, or whether we will keep the computers of the irs functioning. the government has a set of obligations. they have to meet their obligations. if congress wants different obligations, it could have chosen for the government to have different obligations. this whole debt limit thing is not obligated. i have kids. my kids have overspent at college. when they do overspent, we argue about whether i should pay or they should pay. we do not consider as a family that we will stiff visa. that is what this is all about. vise did stiff these the -- a, it would do a lot of damage to our credit rating. that would hurt us going forward. that is what this debt debacle is all about. betty: republican say this is a

good stopgap measure. we cannot get together. larry: it is simple. it is a simple situation. there is no prize here. we have -- surprise here. we have known this is coming. we knew this was coming for a long amount of time. democrats are not confused. they have no difficulty coming together. frankly, the majority for republicans have no difficulty coming together. i don't think there is real complexity in this. not paying your bills to resolve your internal fight is just not rational. i don't think it is more complicated. betty: on the face, no. be alicans say this could good stopgap measure until the site can come together and figure out what it takes to raise the debt ceiling. larry: except it is not a good stop gap measure, it is a disaster.

it runs into real feasibility concerns. in any event, it means the government is stiffing people to whom it owes money. the greatest nation should not stiff checks. that is the wrong thing for the most powerful country in the world to do. they say it is a stopgap measure until we come to an agreement. we know the agreement we have to come to, we need the obligations we have already entered. we pay for the bills that we have already incurred. that is the agreement. nothing obligated. nothing -- nothing complicated to figure out. there are important issues on next year's budget. we should work those through. there is nothing that needs to be figured out or compromise to be struck. it is simply a matter of paying the bills that we have committed

ourselves to. betty: let's say we compensate the situation and we get to the point where we are almost falling off of a cliff, do you think that will throw the u.s. into a recession? larry: growth in the third quarter is looking to be 1.5% range, a good chance the second half of the year, it will be below 2%. lots of problems in the global economy that will ultimately affect us. interest rate is already elevated because of the debt limit problem. there is certainly not risk. -- certainly that risk. we don't have the opportunity to raise -- respond to recession. with interest rates of zero, the fed does not have room for traditional response. i think we are near the edge of an abyss.

in that situation, all the more reason to avoid doing anything that will create extra uncertainty. betty: you wrote an op-ed about the results of the canadian election. what is it about the rise of the liberal party in canada, what can we take away -- what you take away from the results to apply here? struck by waswas -- after just intrepid no -- justin trudeau decided to build the economy with a structured program was the right policy for growth. after he made that judgment, if you look at the polls, the liberal party started doing well. i think we could never know what is causal, but i think there is a relationship between those things. i think that people do not like paying the equivalent of a $.40 gasoline tax to repair their

--s because of an adequately in adequately maintained infrastructure. i think you need strong support for a program to rebuild america. betty: do you takeaway the lesson from canada and say this may be supportive of what you talked about here in the u.s., which is more stimulus. larry: you could call it stimulus or you could call it a program to rebuild and renew the country. stimulus sounds like a mechanistic short-term gimmick. what we'reink that's talking about. i think we about an economy with low growth. we need to augment our investment capacity. betty: have you heard anything about the candidates and the presidential campaign -- is it in line with what you would want? larry: i think there is the

recognition about the importance of public investment. i certainly don't think that question has gotten as much attention as it should. betty: and how do you do that? larry: i talk about it when i can. i know a lot of people are concerned about promoting public investment as well. that is part of what we need to do. we need to promote private investment. reform questions or tax -- over tax reform, regulation, financial rules. betty: larry, thank you. i will hand it back to you. mark: joe biden will come in and just a moment with the president. the question is, will he run for

president? speculation about what he will say has gone on for several days. factis case, given the that he is scheduled to be with the president, the widespread belief is he will announce he is not running. there again, the rose garden. we expect president obama and vice president biden. question,address the washington and the world have been wondering, will joe biden enter the presidential race? john, what is the scenario under which this unusual setting might be used to announce candidacy? john: it is hard to figure it out. the most likely possibility would be for biden to essentially address what his ongoing official duties would be in the context of the campaign and say, i have -- i am a vice president first. this is how will i had to -- address my duties going forward. a campaign fore

the presidency, i will continue to serve president obama, etc.. not entirely is far-fetched, but it is a scenario that requires more imagination than one normally uses a presidential announce ment. mark: he has run twice before. he he knows -- he knows if he announces that he will run for president, the occupation he has -- if he does not announced he will run, he will be a lame duck vice president. over whether he will run has recalled around his family. -- withh of his son whom he had a close relationship with him in a emotional state of some trouble. he has had to do these

deliberations against the clock. not just the rising candidacy of of bernie sanders and the strength of hillary clinton, in a few weeks, the deadlines kick in. all states have different rules and deadlines. the vice president has delayed this decision for four weeks. advisers have told him, if he does not decide soon, he will miss the chance to participate. by any rational standard, he would be way behind if he did get in the rice -- race. he would be behind and fundraising and hiring staff. john: except for name recognition, hillary clinton close to 100% name recognition. we have seen in the polling that he is popular among the democratic nominated electorate. he would not start as an unknown.

mark: the late start would put him at a certain this advantage. -- disadvantage. john: he would put himself as an alternative to hillary clinton. he could run sort of a half campaign. not campaign fully in iowa and new hampshire, wait to see how things went in those states, and see if there is a ready alternatives if hillary clinton was beaten by bernie sanders -- that is an imaginable scenario. after the the day vice president made a number of comments directly addressed at secretary clinton. it gave people the sense he was about to jump in. john: -- mark: you are looking live at the rose garden. joe biden will make a statement. not to prejudge what he will say or predict -- most people

, theve in this setting fact that the president is with him suggests he will not run. family considerations and the difficulty of finding a path to be the democratic nominee would in the end lead to the conclusion he would not run. we expect to have an expiration -- explanation. here they are, let's listen. joe biden: good morning, folks. forpresident, thank you allowing me in the rose garden. as my family and i have worked through the grieving process. what isaid all along have said time and again to others. it may very well be that that process, by the time we get through it, closes the window on

a realistic campaign for president. it might close. i have concluded it has closed. i know from previous experience that there is no timetable for this process. the process does not respect or much care about things like filing deadlines, or debates in primaries and caucuses. that i could do this -- i could not do this of the family was not ready. the good news is, the family has reached that point. as i have said several times, my family has suffered loss. i have hoped there would come a time that sooner rather than later when you think of your loved one, it brings a smile to your lips before a tear to your eyes.

that is where the bidens are today, thank god. inspiration. unfortunately, i believe we are out of time. the time necessary to mount a winning campaign for the nomination. while i will not be a candidate, i will not be silent. i intend to speak out clearly and forcefully. ,o influence as much as i can where we stand as a party, and where we know that -- need to go as a nation. this is what i believe. i believe that president obama has led this nation from crisis to recovery. we are now on the cusp of resurgence. i am proud to have played a part in that. this party, our nation will be making a tragic mistake if we walk away or attempt to undo the obama legacy. the american people have worked

too hard, and we have come too far for that. democrats should not only defend this record, and protect this record, they should run on the record. we have a lot of work to get done over the next 15 months. there is a lot of -- there is a lot that the president will have to get done. , we will beear building on a solid foundation. it all starts with giving the middle class a fighting chance. i know the press love to call me, middle-class joe. i know in washington that means you are not sophisticated. it is about the middle class. it is not just a matter of fairness or economic growth, it is a matter of social stability for the nation. we cannot sustain the current

levels of inequality that exist in this country. i believe the huge sums of unlimited and often secret money pouring into politics is a fundamental threat to our democracy. i really mean that. i think that is a fundamental threat. the middle class will never have a fighting chance in this country as long as several hundred families, the wealthiest , control the process. it is that simple. i believe we have to level the playing field for the american people. that will take access to education, and opportunity to work. we need to commit. we are fighting for 14 years. we need to commit to 16 years of free public education for all children. we all know that 12 years of public education is not enough. as a nation, let's make the same commitment to a college

education today that we made to a high school education 100 years ago. children, and childcare is the one biggest barrier for working families. we need as the president has proposed, triple the childcare tax credit. that alone will lead to do erratic -- dramatic increase to the number of women in the workforce. that will raise our economic standards. there are many ways to pay for this. people say, how do you pay for this? there are many ways. we could pay for this with one some. one simple step, limiting deductions to wealthy people. the wealthy will pay a little more. it is my guess they will be happy to help build a stronger economy, and a better educated america. i believe we need to lead more by the power of example as the president has, then merely by the example of power.

we have learned hard lessons for more than a decade of large-scale, open ended military invasions. we have to accept the fact, we cannot solve all of the world problems -- world's problems. we cannot solve many of them alone. the argument that we just had to do something when bad people do bad things, is not good enough. it is not a good enough reason for american intervention and to put our sons and daughters lives on the line. put them on risk -- at risk. i believe we need to end the divisive politics that is ripping this country apart. it is petty and mean-spirited. it is gone on too long. i don't believe that it is naive to talk to republicans. i don't think we should look at republicans as the enemy. they are opposition, they are not in these.

-- enemies. for the sake of the country, we have to work together. as the president said, compromise is not a dirty word. look at this folks, how does this country function without conferences -- consensus? how do we move forward without that? four more years of this kind of battle could be more than this country can take. we have to change this. it is personal. i know we can do this. the president and i have already been working hard on increasing funding for research and development. there are so many breakthroughs just on the horizon in science and medicine. the things that are just about to happen. we can make them real. with an absolute national commitment to end cancer as we know it today. i will spend the next 15 months

in this office pushing as hard as i can to accomplish this. i know there are democrats and republicans on the hill who share our passion. our passion to silence this deadly disease. anything, i would want to be president that ended cancer. it is possible. i also believe we need to keep moving forward in the arc of this nation towards justice. the rights of the lgbt community , immigration reform, equal pay for women, and protecting their safety from violence, rooting out institutional racism. at their core, every one of these things is about the same thing. it is about equality. it is about fairness. it is about respect. as my dad used to say, it is about affording everything up

person dignity -- every single person dignity. every single one of these issues is about dignity. the ugly forces of hate and division will not let up. but they do not represent the american people. they do not represent the heart of this country. they represent a small fraction of the political elite. the next president will have to take that on. most of all, i believe there is unlimited possibility for this country. i don't know how many of the white house staff have heard me say repeatedly, we are so much better positioned than any other country in the world. i have been doing this for a long time. when i got elected as a 29 years old kid -- your kid, i was called an optimist. there are possibilities to meet forward. i believe to my core that there

is no country on the face of the better positioned to lead the world in the 21st century than the united states of america. washington has to begin to function again. instead of being the problem, it has to be part of the solution, again. would have to be one america, again. -- we have to be one america, again. at our core, i have always believed that sets america apart from every other nation is that we, ordinary americans, believe in possibilities. unlimited possibilities. for a kidility growing up in a poor, inner-city neighborhood, a spanish-speaking home. a kid from mayfield in delaware, willow grove in pennsylvania, like jill and i. to be a will to be anything we wanted to be. to do anything, anything that we

want. that is what we were both taught. that is what the president was taught. it was real. that was what i grew up believing. it has always been true in this country. if we ever lose that, we have lost something very special. we will have lost the very soul of the country. when i was growing up, my parents in tough times looked at to me, myld say brothers, and my sister, honey, it is going to be ok. and they meant it. they meant it. it was going to be ok. me and i say,ver go back to your old neighborhoods. talk to your contemporaries that are not as successful. there are too many parents who

do not believe they can look their kid in the eye and they with certain to -- certitude, honey, it is going to be ok. that is a we need to change. it is not complicated. that will be be true measure of our success. have met it until every parent can look at their kid in tough times and say, honey, it will be ok. and mean it. that is our responsibility. i believe it is totally within our power. the nation has been a before and difficult times. -- in difficult times. i have had the good fortune and privilege to be of public service most of my adult life. since i was 25 years old. through personal tryouts and tragedies -- tryouts and tragedies, my entire family, the corny,amily, it sounds

we found purpose in public life. we found purpose in public life. we intend to spend the next 15 allhs fighting for what we care about. with every ounce of our being. working alongside members of congress and our future nominee, i am certain we are fully capable of accomplishing extraordinary things. do,an do this and when we america will not just win the future, we will own the finish line. thank you for all being so gracious to jail and me for the last -- gracious to jill and me. .e can do so much more i'm looking forward to continuing to work with this man to get it done.

thank you are very much. [applause] one of the biggest scenes we have seen so far. occurof eventful things in presidential race today, one of the most momentous. vice president joe biden announcing he will not seek the presidency, standing with his wife and the president. he basically said, although his ,amily had come together dealing with the aftermath of the death of his sonbeau, there was not time to mount a credible campaign several months before the iowa caucuses. the front runner, hillary clinton and bernie sanders. john: he said the window had

closed. there will be a lot of second-guessing for people who saw him move his timeline back. he was supposed to decide by the end of the summer and it was pushed back to the beginning of october and back further. people wonder whether he allowed that window to close on him in some respects. i thought for a long time that in the end this was a decision joe biden had to make that was not as much about his family, although his family impacted him personally, but about his own heart. he said the question was whether he had the emotional fuel and i think every time that window got closer to being closed, he did not find it. i think he probably thought that was a path but what he could not find was the internal resources, internal fortitude to bring himself to this race. this is on some level the swansong for joe biden. he has effectively ended his

political career. as a functional politician in america which he has been since the early 1970's, he is no longer running for anything and that has been joe biden's life. he is run for office cycle after cycle and now he has decided that cycle is over. mark: let's talk to a couple of colleagues. al, where does this leave the contest for the presidential nomination? al: it does not change it at all. i was not surprised by today, not based on any reporting but just instincts and knowing joe .iden i met him 43 years ago i think there was not a pathway. i think some of his people told how difficult --

it would be. this man is through incredible heartache. a loss that is unimaginable. you can't run for president unless you are 100% into it. there was no way that was going to occur. i don't think his functional career as a politician is over. he will be a more formidable figure than mitt romney and other people who have not gotten to the presidency. i think he will be in demand next year for hillary clinton or whoever the nominee is and even after 2016. does that leave the president and vice president in terms of supporting hillary clinton or not? do you think they will stay out of the contested nomination given the strength senator sanders a showing in iowa and new hampshire? al: i would be surprised if they were to endorse early. i think they will wait.

maybe an opportunistic moment if she does well in the early contest. i would be surprised if they did it early. john: we have phil mattingly with us. phil, you have your finger on the pulse of the political class. do you think today, given so many journalists and others predicting over the course of the last 96 hours that joe biden was in, do you think the people are going to be more surprised than al hunt professes to have been? a thoughte was always that there was not a clear pathway. what you were hearing from all reporters, theom roller coaster that was going on inside his own team. you would hear that a lot of times from his people when you talk to them. today it seems like he is considering it. i figure was more a reflection of that than anything else. mark: in the last 36 hours i

talked to four people who had been in touch with the vice president in the last several days. all of them claimed not to know what he was going to do. all four of them had the sense that in the end he would not do it. although the speculation was make or break, that this would be a route what -- about whether the family was ready. he said the family was ready at the logistics were not. i talked to one of the people who would've been the architect of abiding campaign and he suggested logistics would've been there. john: it is been the case for my reporting that the inner circle, the closest people, they had argued with him that they could raise the money, build a staff, do the mechanics and that that was no longer the issue. that the only issue was about joe biden and his heart and to some extent his family. it's surprising to hear him citing the fact that the window had closed when i know all

political advisers in that inner circle were telling him the opposite over the course of the last six weeks. joe biden took some shots at hillary clinton yesterday and there were lines in the speech he gave just now that could be interpreted as a little shade thrown in the direction of secretary clinton. do you think that is joe biden trying to influence her behavior she go forward or is there something else going on that motivated the vice president to do the things he is done rhetorically with respect to her in the last 36 hours? phil: yesterday sounded like during his remarks in the q and a sounded like he was testing out multiple lines, not just attacking hillary clinton but that he was testing out five or six solid attack lines he could utilize over and over. -- this ispose was the role he's going 20 play. he will be out there for whoever the nominee will be. he is going to be the guy who is

talking about unifying people, bringing people together. he will campaign for the democratic nominee in his own way, not necessarily what the nominee wants. john: does listening to that the first you cut out two minutes of it in which he declared he was not going to run, it seemed everything else could have been part of an announcement speech. every other element would have been a stump speech. do you think there is a chance that on the basis of that that that was in fact the announcement speech he would have given had he decided he was getting into this race? mark: i think those themes would animate any public space -- any public statement joe biden would've made for the presidency. i think the ideas would have been. al.st thought from you, is this for hillary clinton a sigh of relief that her life is less couple kid about another establishment candidate in the race?

al: a bit. i did not profess to say -- i said on your show i'm sorry you missed it, i think he probably makes it -- it probably make that easier for hillary clinton but i don't think it changes the basic dynamics of that race right now. mark: al hunt in washington and fill with us. that concludes our coverage of vice president biden's announcement from the white house. announcing he will not seek the white house this year. that leaves hillary clinton and bernie sanders as the top two democratic candidates. wrap up all of this at 5:00 eastern time on bloomberg. bloomberg market day will continue after this break. ♪

alix: it is time for a look at the biggest business stories in the news right now. america's love affair with pickup trucks is driving general .motors earnings truck sales were up in the u.s. and g.m. overcame a tough car market in china by boosting sales of more expensive suvs. a huge deal in the semi conductor industry. 10.6 million dollars -- $10.6 billion. both companies manufacture the equipment used to make chips. biogen is cutting more jobs. a biotech company will/11% of its workforce and shutdown research programs. biogen officials say the restructuring will save about

$250 million a year. you can always get more business news at bloomberg.com. we want to see what's moving in u.s. markets. we want to head to the nasdaq where abigail doolittle is standing by. abigail: today is a mixed day at the nasdaq. we opened up, we were down, up a little bit, now we are about flat. one stock on the move is yahoo!. this company reported disappointing third-quarter results missing expectations on the top and bottom line analyst estimates and also guided revenue below where analysts were estimating. to the positive, the company did talk about its planned spinoff of the ali baba stake saying it is likely to happen in j murray 16 -- happen in january 2016.

that spinoff is still on track for either the fourth quarter or 2016. he maintains his overweight rating and he raised his price 32.et to 33 from shares are up nearly 4% at this time. another stock down is micron technology. this flash memory maker is down on a number of analyst downgrades following intel's plans announced yesterday to make flash memory chips. micron closed down 10.8% yesterday. bank of america is out with an underperform from neutral downgrade and also putting out a $12.50 price target. needham & co. cut from a hold to a strong by. shares are up more than 50% relative to the stock. the philadelphia stock exchange semi conductor exchanges off a little more 3%. alix: thank you so much.

shares rising as much as 17% in early trading to an initial price of $52. that price is a top end of its range. fiat chrysler limited the number of shares available in the offering to about 9% of the company. joining us as matt miller who spent the morning at the new york stock exchange talking with happy automakers. matt: and big owners. i'm enthralled by the brand as are millions of people around the world. it was interesting to see the nyse carry out the ipo so smoothly and quickly. within 15 minutes they had the stock opened and within five they had traded 10 million shares. a really interesting story. the history of for robbery -- the history of ferrari. i talked to john elkann who of the voting9%

rights. i asked him what he is planning on doing with the stake. >> it is a great day. we look forward to remaining the largest shareholder of for larry and enjoying -- shareholder of ferrari and enjoying the ride ahead. matt: 34% of the voting rights. what is most important to you with this brand going forward? i know you have said you will make a few more cars up to 9000 year. john: the import is to keep it as it has been. there is no doubt that what ferrari means. we have seen this today with the interest from everyone and also the general excitement about it. is yet chrysler somehow becoming weaker -- is fiat chrysler somehow becoming weaker? >> this enables ferrari to have a life of its own.

it allows the shareholder to have a lot of clarity between these businesses. they both have a great journey ahead. matt: i should point out the guy with his back to the camera is tommaso e part -- bhardt. he is a journalist. alix: what is fiat chrysler going to do with its $4 billion it is making off of this? matt: sergio told me it was less than that but they are taking about $3 billion out of for robbery in cash plus they raised ferrari inon out of cash. it clears the way for them to move forward the ultimate strategy. if you ask sergio what the

strategy is, john did not want to talk about it much today but sergio loves talking about it. byt is to keep costs down combining global automakers. he thinks general motors is the best partner. >> there is no doubt that there is a down cycle and softening of demand coming. the reality that we manage gets completely of a different color. unless you really secure the utilization of capital in the most efficient of fashions, i think you're going to fail in delivering returns to the shareholders who have lent you money. in the case of gm and our case. gm was resurrected with taxpayers money that was shifted onto the capital markets but it was given a chance by the american taxpayers. we were lent money. let's not forget the failure. you cannot and/or -- you cannot ignore the event. you will realize how tenuous

your life is. in a business that makes relatively acceptable margins in uptimes, you know you're done something -- you don't want to go back there. based on our analysis, gm offered the greatest benefit associated with the merger. of the pairs i looked at. matt: it was great fun down there. er, tomd to jeff press farley. a tunnel ferrari's out front. tommy was popping up everywhere i went. ipo market has not been doing well in the u.s. so impressive that you get one that is up 17%. matt: brand like ferrari do not come around often. asle, coke, very few brands

well known. michael jordan and santa claus. that's about it. alix: great work this morning. reportup, a new research says it has a smoking gun on one of bill ackerman's biggest holdings. wide-out yet is -- wide-out it is being called the next enron -- why valiant is being called the next enron. ♪

alix: welcome back to the bloomberg market day. valeant getting pummeled today.

it shares were down almost 30% after a report by the shortselling firm citroen research asked if the company could be the next pharmaceutical enron. bill ackman lost 700 $80 million just today. here to help us sort out the details is elizabeth joining us from san francisco. what was the main point that citroen research was making in the report? reportth: we got the saying that valiant has been working with pharmacies related to fill a door essentially taking some of their products in inventory, stuffing them into the channels of fill a door and counting them as a sale. this is the first we've heard of philadore. they have said they have been working with the specialty pharma and they have the option to buy them and they have been

consolidating revenues. this is a brand-new entity we are hearing about. this is not confirmed. this is from the cintron report is morning. alix: they are short seller so they are happy when the stock is going to fall. when i look at valeant sales, they were up 60% in the third 36% in the third quarter. they alluded to this in their third quarter call on monday. suggested 10% to 20% of u.s. revenue could be related to the specialty channel. that would equate to about $1 billion if that is actually true. alix: quite a lot of their revenue. any word from valiant on how they are responding? abigail: they have knots -- elizabeth: they have not said anything yet. they have been under fire for pricing probes. they will be speaking in front of congress on some of the

increases we have seen for two drugs under a lot of scrutiny for nearly 500% increases. they talked about moving away from that strategy of acquiring smaller companies and jacking up the price but so far no comments on this. they alluded to it in the earnings call but perhaps -- so perhaps they knew it was coming. alix: in terms of their business is a serial m&a company in the do not intend to make their own drugs like that. when they are under this regulatory scrutiny for pricing controls, when you have this kind of report out, what does that do for their ability to do m&a? day -- to do elizabeth: i think their integrity has been undermined, not just with the report today but over the course of the few weeks. last year, you may recall there was the bid for allegan.

if you read through some of the letters, they talk about valeant's model. that it can be detrimental to the company they are acquiring. there is a negative stigma around the company and i think we would see other companies that could be targets doing similar defense moves. allegan was ultimately acquired by activist last year. alix: a fascinating report digging into the details you have to wonder how much of that is rhetoric and how much has underlying fact. , joining uslizabeth from bloomberg intelligence. coming up, angus deaton is a nobel prize winner of economics -- in economics, joining us live. ♪

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.lix: 1:00 p.m. in new york welcome to the bloomberg market day.

i am alix steel. here's what we're watching at this hour. groundbreaking work helped shed light on the spending habits of the poor. angus deaton's this year's winner of the nobel prize for economics and tells us how he did it. and what has the drought done to california vineyards and what impact hasn't had on the price of wine? the president of one of napa valley vineyards is here to tell us. a conversation with two computer joining us to talk about the next phase of computing. desk, write to the markets with julie hyman who has the latest. it looked like we were going to climb higher but the dow cannot keep up any kind of momentum.

julie: dell has the largest, nasdaq turning lower. it has a lot to do with biotech. the movers that are on because it is very micro-driven as we've been talking about. biggestare is down, the drag on the s&p 500 and having an effect on the nasdaq. industrials, consumer staples of the two best-performing groups today. let's look at the nasdaq altec index. we have been watching it so closely on concerns on higher pricing. about that now concerns how these drugs are being sold through the channel. this being brought up by concerns over valiant pharmaceuticals that alix was just talking about. asking, could this be the pharmaceutical enron and alleging that indeed there were some channel stuffing here between valeant and accompany it

allegedly owns, according to this report from citroen, and report earlier in the week from the investigative reporting foundation that first brought up some of these concerns. you can see right now the stock is down 30%. that is the biggest decline since at least 2006. it is having a ripple effect among other specialty from cynical makers as well. you can see into how solutions taking a tumble, 70%. although --o lower and analysts give out and said allergan does not use the specialty pharmaceutical channel. earlier today, bloomberg news reported allergan was going to be sharing -- selling funds to share in acquisition. alix: unbelievable. it was a truly scathing, fascinating report. it will be good. i did some cap galatians and it seems like elegant lost like

$780 million in just a few hours. -- i did some calculations and it seems like allergan lost around $789 in just a few hours. julie: these losses have been getting worse. alix: what is holding up the market? julie: industrial stocks are doing pretty well, the leading group in the s&p 500. we have a couple of companies still rising after yesterday's earnings. bowing out with earnings today. it raises full-year profit. lower costs associated with the dreamliner. alix: thank you, julie hyman. now let's check in on bloomberg news. mark compton has more from the news does. mark: joe biden has made it official, he will not be a candidate for president. the vice president, whose decision was complicated by the death of his son earlier this year, made his announcements at

the white house within the hour. >> as my family and i have worked through the grieving process, i said all along, what i've said time and again to others, that it may very well be that the process by the time we get through it closes the window on mounting a realistic campaign for president. that it might close. i have concluded it has closed. mark: the vice president's decision finalizes the democratic field and sets them on a path for the is of his decades long political career. -- for the end of his decades long political career. paul ryan to secede him as speaker. biden has told his colleagues he was to be embraced as the gop's consensus candidate -- ryan has told his colleagues he wants to be embraced by the gop the's consensus can did it won't seek

the job. for dixie will get the support he is looking for. hillary clinton's one of the top aides about the deadly attack in benghazi is public. democrats released the full transcript with the chief of staff at the state department. the former secretary of state herself is expected to give testimony tomorrow. president obama is on his way at this hour to west virginia to tackle the issue of drug abuse. he will speak at a community center in charleston to outline a new plan to help communities battle the growing problem of heroin and prescription painkiller abuse. the president is expected to announce new training mandates for federal doctors, federal insurance plans to provide treatment for drug addiction. and you are right if you thought september was a scorcher. month was the hottest september ever

worldwide. they also say it is the seventh month in 2015 to set a record for heat. it ties 1998 for the most monthly heat records broken. the national oceanic atmospheric administration also says this has been the hottest first nine months of any year and 2015 is shaping up to pass last year as the hottest on record. chris rock has been tapped as the next host of hollywood's biggest night. academy awards producers announced there were going with the actor and comedian in an e-mail today. it will be his second run as host. he hosted the oscars in 2005. the show will be seen on abc on february 28. first news.our you can find a letter latest news at bloomberg.com. has shown how the force in the money. assuming goods and services. he won the coveted nobel prize in economics. angus deaton worries about a

world in which the rich get to write the rules. he sat down with tom keene to talk about his message. i think what happened in the late 1960's and then much more into the 1970's was the government started making available the household survey data but individual level data, the firm data that we did not used to have before. that was very exciting to try and work on that, on the methods we had did not work very well so it was a real feeling that i was in a fairly unplugged field, along with a bunch of other people, and we were having a lot of fun trying to find out how you look at individuals and how individuals can together to make -- of: this idea that we think data always being there, he really wasn't there just something like 1947. and then you had to move forward into the 1960's. you talked about, i love this phrase because i always flunked it in school, carefulness of

measurement. what a lovely phrase. professor deaton, what is carefulness of measurement? >> it is being suspicious. it is not taking the numbers. we call them data, which means they're given, but there really never given. does there put there by someone with purpose in mind. you want to be suspicious, careful, cross track, try to make sense. all of that is carefulness. it is not taking these members as data as given, but trying to pull them apart. tom: let's talk about the item most acclaimed in your award, and this is inequality. it seems to be widening. the political debate in your united kingdom, the political debate in america speaks of a new kind of inequality. what is different in 2015 from your seminal paper of 1980? >> i think it has gone on. there's a lot more to worry about now than there was then.

inequalitylways been . there was inequality a long time ago and now we're going through a phase of inequality. one thing that delights me apart from surprise is that this will help push inequality even further into the debate. i have been interested in inequality all my working life, but it has not been a central public public debate. it is wonderful but that is happening. and i think the fact there is a lot of disagreement about it is not really the point. i actually think that both sides in this debate have valid points to make, and that we have to find what is the ideal level of inequality? you have to have some, but you don't want too much. we struggled find out where it should be. time: what is the deep prescription to narrow inequality of income or wealth? >> i think there lots of possible tools we have if we

want to use them. i think this has a lot to do with political questions, which is why the debate is actually so important. you know, that is the debate that we are having. does this election will be very important for where people come out on that will top there plenty of tools narrow inequality. there are lots of things we could do. the question is whether people want to do them and whether the majority in our political system can deliver that. time: you are eisenhower are inor -- tom: you eisenhower professor. those names carry an awful lot of weight in the 20 century. if we could close out today with the idea of the policy prescription that is required, are we searching for a policy prescription within a modern plutocracy in a modern gilded age such as would row wilson -- would row wilson reacted to in the previous century? >> that is exactly where we are,

and i love that analogy with woodrow wilson because he opposed inequality when it was president of princeton and the rich people who ran as university basically ran him out on a rail and yet it often be governor of new jersey and president of the united states. woodrow wilson was far from an ideal president, but he certainly did things that tackled inequality and had a mandate to do that. maybe that will happen again. maybe it won't. nowt of what we're seeing happened 100 years ago. alix: that was tom keene's interview with nobel in economics winner angus deaton. it was a great interview. coming up in the next 20 minutes of the bloomberg market day, emerging markets are showing signs of life, but they still face significant headwinds. is now the right time to pour your money back into countries like brazil? with california still stuck in a drought, how's this years wine crop holding up? the president of a never valley

wine in your joins us. ceo will ceo and dell give us their perspectives, coming up. ♪

alix: welcome back to miami alix steel. time for a look at the biggest is no stories in the news right now. shares of valeant pharmaceuticals getting pounded today, down almost 30% and that dive on reports of shortselling from citroen research looking at specialty pharmacy that they used to facilitate drug sales to patients. the report says valeant may be using pharmacies to store inventory in the record

transactions as sales. it also asks the company could be the next pharmaceutical enron. coca-cola has been on a cost-cutting binge and it seems to be working, third-quarter earnings beat estimates. coke is smelling smaller containers of soda but charging more per ounce. off to the races on the new york stock exchange, the shares of ferrari coming as much as 70% after initial public offering. the ipo is the first step -- 17% after initial public offering. prices at the top and of the range. fiat chrysler has kept demand high by limiting the public listing of the iconic brand to a 9% stake. you can always get more business days at bloomberg.com. i want to head over to the market desk where julie hyman has a look at some of the company movers. you're looking at some consolidations. julie: a lot of it rumored upon. this is a done deal, acquiring

$19 billion deal. this is a hard disk drive maker getting into sandisk. western digital turning lower. -- this is a $10.6 billion deal. mergershad some smaller in the semi-quitman industry halted over and try -- antitrust concerns. thank you so much, julie hyman. emerging market sing some reprieve in recent weeks after months of decline, but is that all about to change given brazil's deepening political and economic disarray, to say the least? santos focuses on brazil and latin america and joins us more -- for more.

haveruck my eye that we some high-profile lawyers are basically filing documents to dilmah president rousseff. it has been tried before. is this different? >> i was a there are so many separate proceedings for impeachment for president dilma rousseff, and it is very hard to know which ones are going to be successful and how quickly. to us, the takeaway is political uncertainty and volatility in brazilian assets are here to stay. we're still having a hard time finding a reprieve and volatility as a result of that uncertainty. at myif you look terminal, you can see how ugly it is. it compares brazilian credit default swap with other emerging markets like russia, chile, turkey, peru. brazil is the worst. quite frankly, this surprised me. >> it is clear that brazil is being treated different from other markets because it has that commodity headwind, that is, to other countries, but also has its own it is a credit

story. part of that is unraveling some of the sustainable and some should and fiscal policies. a lot better specific -- a lot that are specific to brazil. the spread increase, right before result was downgraded a low by standard and poor, that risk is also seen prices in brazil. currency, ag at the traded 30% below its 10 year average. at what point to you say it is so cheap, so ugly, all of it has to be baked in right now? ofthat is what a lot investors are asking themselves. at one point in recent years, brazil was trading close to 40% expensive and has reversed in exactly 30% cheap. we are of the opinion as a result, a lot is already baked in and maybe we can see more stability in the currency, but that is not a consensus view yet. buy, not necessarily a it's a don't sell. thank you so much, gabriela

santos. still ahead on the bloomberg market day, california's grape harvest this year is low yielding, but will the quality be in short supply? we will hear from a nap of valley vineyard owner coming up.

back.welcome i am alix steel. the 2015 california grape harvest season is said to be low yielding, but high in quality. in fact, u.s.i sales were 6.2%. we want to head over to carol massar and cory johnson. this is bloomberg advantage. we want to talk to the president of joseph stop vineyards. he is based in california, but we find him in our new york this wednesday. welcome to bloomberg radio.

you guys have been around for a while. your dad started the vineyard. >> my father, mr. joseph phelps, started our family-owned winery in 1973. it was a second career for him. a really dramatic time for the napa valley. >> you guys have seen a lot, the industry has become a very big industry and a lot more players in it. you have been dealing with the drought as of late. talked about the impact that has had on you. >> it has been very significant. it is been a four-year drought. we, ironically enough and napa and sonoma where we grow our grapes, have been quite a bit more fortunate than many. we had enough rain at the right times and are hanging in there. however, we are all hoping for what they call the godzilla el niño to land soon. corey: why? what has the drought done for the duration of your season when you decided to go to crush and for -- when to do harvest? >> i'm certain was a consequence

of the drought, this year was very early. floweringeak and started very early. we started picking grapes in early august this year, which -- cory: really? >> we finished october 5, i believe the date was, which was on average probably three weeks ahead of normal as well. definite impact in smaller crop yields as a result, i think, of the drought. cory: but that can make for better wine. >> it could be. the theory as it concentrates the flavors a makes it more intense. carol: it has been a four-year drought and maybe you been immune from it, but what you do in your capital expenditures to plan for this may be going forward? >> we make sure our water sources are both secure and abundant and available to us. supplied by our own wells and we have some very small reservoirs as well.

fortunate, if you maintain your wells properly, they do hold up pretty well during the drought. we of been fortunate in that regard. cory: we're in the midst of an boom, realrket estate values certainly in northern california are through the roof. at the same time you have this drought that is making farming of all kinds more expensive in california, what have you seen in terms of real estate value both in sonoma and napa? carol co desk euro: you have bought up a lot of land in the past years. years or soabout 15 ago, we bought a quite a bit of land. the real estate values -- i actually think they have not been affected by drought. i believe the real estate values are at an all-time high in one country. , which i think logically would defy the importance of a drought, guess, people have faith in a long-term proposition. carol: you guys are known for your wine insignia, i think you brought it up in 1974.

it really helped establish you guys as the leading cabernet provider. how do you continue to evolve? how does technology play into what you are doing? >> you're right, 1974 was the first vintage of insignia and we have made it ever since that year. it is certainly our flagship we're beste wine known for. i would turn that question back to you and say, it is not really technology that has not helped so much as farming. we have continued to buy land whenever we have had the ability to and have changed over the years from being entirely sourced by a grower fruit that we purchased to a state fruit that we own and farm ourselves. there is certainly a technology component. there is amazing wine technology that has developed in terms of thomas a, sorting and even mechanical harvesting, which we are doing at the moment. but there's a lot of great technology and it is all farming related. carol: and a lot of great wine

out there. it is a favorite topic of cory and mine. cory: did he bring samples to new york? carol: . bill phelps. alix: thank you. a favorite topic of mine as well. still ahead on the bloomberg market day, a conversation with two tech titans. you do not want to miss. we will be right back. ♪

alix: from bloomberg rolled headquarters in new york, welcome back to the bloomberg market day. let's start with the headlines

this afternoon. mark crumpton has more. mark: foreign ministers from russia, united states, turkey and saudi arabia will meet on friday to discuss the crisis in syria. the syrian president met with vladimir putin today in moscow. sincerst overseas trip syria's civil war began in 2011. without russian military help, terrorists have taken control of .ven more territory fo benjamin netanyahu meets tomorrow with john kerry in germany. their second meeting in less than a month. heldsraeli prime minister a news conference with angela merkel. in other news, the when secretary -- u.n. secretary general urging palestinians and israelis to end months of violence. he's in the middle east with

mahmoud abbas. iran's supreme leader signing off on his country's landmark nuclear deal with the west. he endorsed the agreement in a .etter to president rouhani his expression of support was not very enthusiastic. he warned his government to be vigilant saying the united states can be trusted. this cannot be trusted. a big announcement for carl icahn. he is 100 and $50 million into a super pac. -- $150 million into a super pac. last month, he threw his support behind donald trump. that is a look at our first word news right now. you can find the latest news on bloomberg.com. alix: austin, texas is hosting

the fifth annual dell world conference this year. emily chang is there. she's moderating a q&a panel. amazing. emily joins us now. the conference is happening a week after dell announced the acquisition of emc. how did that play into the conversation? emily: the landscape is changing quickly. inc. about microsoft created the most historical tech system in the world and delving a company dell being a company that orbits that planet. you have microsoft getting into dell territory by making pcs. even though they appeared on stage together, there was a bit that needed to be clarified about the relationship. are you guys friends? what is really happening here?

satya: we've worked for years with microsoft. we help customers with a variety of other systems and platforms. when i look at what microsoft is 10 and thewindows surface family of products, what they are doing is they are pushing windows 10 inch new spaces -- into new spaces and driving the platform forward. i'm excited about that. drive the windows 10 ecosystem faster. nice nadella has some products. the volumes are not high, the prices are high. icebreaker and we are

coming with products that are you volunteered -- are evolving. satya nadella and microsoft are a biggest customers. satya: at the core, we are friends. the friendship is about serving our customers. that's what grounds us. that's why michael talked about all the things they do beyond just what we do together. that's the reality. if there is one truth i've thered, you have to live realities. to me, that's what guides us and that's what guides success. the concrete things, take windows 10. ecosystem.row the invent new categories, stimulate

demand. we partnered with you on surface. to make sure that we have a vibrant ecosystem. a lot of people think about devices being crated. we are in the job of creating computers. we will keep pushing. on the cloud, the same thing. we built this hybrid computing and michael talked about the other things that michael will do along with emc. , weroviding the choices will not only drive up our partnership and success, but address the needs of the customers. emily: if the cloud is the future and everyone is fighting for a piece of that territory and amazon is making it pretty easy, how much success are you saying in taking customers from aws? michael: we see a world of many

clouds. there are public clouds, software as a service, private clouds come on premise workloads. if you look at the enterprise workloads, you have about 160 million of these in the world. roughly 10-15 million of them exist today in public clouds. the rest of them are on premise or in some kind of private environment. the vast majority of those are virtualized. what we see is that virtualization and the automation of these workloads of i.t. tomanagement be extrapolated up to a higher level. you are managing at the application, user, workload and security level. equipment into s

atya's cloud or to a customer the software on the premise, if the software is the same, there may not be much of a difference in the benefits of one versus another. each customer may have another set of requirements. i think the ultimate supreme answer here is the hybrid cloud. you will not have everything going one way or the other. we think aboutld the size of your cloud compared to something like aws? satya: one thing is true is the public option has taken off. this --o think about amazon is the leader. we are number two. $18 billion of run rate -- we

-- we have a lot more revenue. we have great traction if you are unwittingly machines plus if you are on-- one million machines. what is the future? is it all public cloud? said reading a report that customers believe there will be only cloud. hybrid.them will be if that is going to be the reality, you need to be able to account for it. even today, there are approximately 8 million servers sold each year. you count all the hybrid skill people like us and google and amazon, it's probably 2 million.

there are still 6 million servers being sold in the world. that infrastructure requires new approaches. that's where the hybrid infrastructure will play a significant part. emily: if amazon spoils the margin for everyone, does the software enjoy slimmer margins than it has in the past? this by don't come at starting with margins. if there's one thing that all of us have learned in tech, how you grow the pie. what matters to me is the magnitude of revenue and the impact it can have. i grew up in services. i dragged of selling lots of small business servers. -- dreamt of selling lots of small business servers. now, we have 50,000 customers each month, small businesses

signing up for a missed 365. -- signing up for office 365. they get skype for business come exchange -- business come exchange.- business, that is a dream come true for me having lived through the beginning of that cycle. as technology is more easily accessible, the available demand expands. .hink of technology as a gas it fills the space available. newwill find all kinds of applications, new uses, new creativity. think about all these enormous number of devices being connected together, all of this has to be turned into results and outcome and success for businesses. it's not really just looking at

today's environment moved to something else. the whole world keeps changing. tox: when you guys decided get into laptops, did you call michael? satya: that was before me. emily: what was your reaction? michael: i wanted to understand why they were doing it. when we understood that the intent is basically to drive the platform, the icebreaker strategy, push into new territory and then we come in with a product that is more affordable but we can sell 100 times more, great. networks. -- that works. dealt makere seeing the biggest tech deal in history. microsoft has done a lot of smaller deals. why?

why not a bigger deal? is it too risky? michael: this is the stuff he lives for. [laughter] don't start by thinking michael did a deal last week, i should do a big deal tomorrow. that is not the way i think. emily: is it something you would consider? satya: we have a very clear -- in of what it is to be want to stay true to that. the biggest bet we have is our organic bet. on top of that, we will look at any opportunity that fits with where we want to get to. i don't want to be in every part of the tech industry. i want to be in things that are addressed in markets where

microsoft has a unique conservation to make. that sense of purpose and identity is what makes companies successful. to me, that's what will drive whatever we do organically. emily: we've been talking a lot in silicon valley about the valuationsd the which are going up and up and up. what do you see there? michael: i think there are some different things that can be done. when i.t. moves from the realm of making companies more efficient at doing the old things into this digital transformation, it is a game changer for new industry. you see these new companies being created. are all the valuations making sense? probably not. there are some fabulous new companies being created. i would not overlook that. emily: say there's 150 unicorns.

how many of them are real? are we in a bubble? satya: i think both sides of this argument have their place. byre's this book i read corletta perez about financial cycles that impact technology. it's been true from the industrial revolution to today. you have these booms and busts. during the boom because nobody wants to be left out, there's over funding. lots of ideas get to flourish. out of that, they will eventually have to be -- there will have to be a correction, but there will be very successful companies.

that is what is great about the american entrepreneurial system. that's what fuels the competitiveness of this country. we should celebrate that. investors have to have caution because you have to really make sure that you know there is a poem and a bust to be cycles. it will always be true in our economy. bust to is a boom and a these cycles. recentlyu did invest in the most expensive unicorn of them all, the most highly valued cleared whyll, uber does that make sense for the future of microsoft? satya: we have a partnership with uber. it started with mapping. mapping.me assets and we realized there would be others. the car companies and companies

like uber now have deep interest in mapping and we want to partner with them. there are things we can still provide. we will be customers of the mapping providers and partners with mapping providers. that's what led to less having investment in the strategic partnership with them. it runs on dell, by the way. emily: i would love to get an update from you guys about windows 10, how well you think it's going. if we can get to your goal of one billion devices. there's 120 billion pcs -- 1.8 billion pcs. 700 million of them are four years old. , we are off to a fantastic start on the consumer side and enterprise side.

we arethe exciting part now looking forward to the next year to get the new computers and new phones -- new forms of computing. on our we are well course to the goal of getting one billion pcs to windows 10. i think windows 10 is the best windows we've ever seen. we are seeing a more rapid adoption of windows 10 -- i can get you some numbers on that. we are seeing more rapid updates to windows 10, consumer and small business. the enterprises are pulling windows 10 in and they are starting to plan their deployments next year, second half of next year. the interest in windows 10 and --erprise is far greater

--n we were talking to your a year about the pc refresh, nobody was saying in the second half of 2016 we are going to go to windows 10. that is the topic everyone is talking about in enterprises. emily: at the end of that conversation, i asked them to give a bit of advice to each other. satya nadella coming at microsoft from being a non-founder. michael dell being the founder and ceo of his company for 30 plus years. they do talk to each other a lot privately, but publicly, michael dell said it, just don't screw up. enemies.ien thank you so much, emily chang.

we have some breaking news for you. sales of valiant have resumed trading. the company responding to a report that likened it to enron. this report had erroneous claims. we will dig through their response. we are back in a few. ♪

alix: welcome back to the bloomberg market day. time now for the bloomberg business slack. disney's espn is cutting jobs. the company says about 300 jobs or 4% of its staff will be eliminated. espn under pressure as people skip the cable bundle or choose keeper -- cheaper tv packages. boeing soars past wall street estimates. 25% jump in earnings.

also boosting their full-year profit forecasts. lower-than-expected costs connected to its 77 dreamliner -- 787 dreamliner and cash from its backlog of plane orders. a huge deal for the semiconductor industry today. -- bysearch will die kla uy kla. you can always get more business news at bloomberg.com. valeant is it saying the citroen report that the company was using phantom pharmacies is erroneous. the stock has not resumed training at. resumed?ll -- hasn't it might have resumed trading. it's unclear. news was bending. -- news was pending.

we want to bring in drew armstrong for the latest. say?did valeant >> they are saying this report is erroneous. is a short seller. they say they have a network of specialty pharmacies that they own and control and use to make up-fake sales. share the same call number and appeared to be reelected -- related. valeant saying the reason that is the case is because they all share a same common call center. they claim this is legitimate. these sales are happening and it's merely a message for them to distribute drugs outside of normal channels. i don't think we have a definitive answer here. this is very fast developing

this afternoon. alix: what is that company and what is valeant's relationship with it? rno? is ou what does that mean? drew: exactly. there are other short-sellers out there raising additional is one of these companies selling drugs in a state where they don't have authorization. there's a lot of information out here that people are trying to confirm and digest or review. has resumedaleant trading. a horrible 30% decline on the day. quite a lot of money at stake. 's u.s. portfolio --ing from saloo

drew: the real question is over the last several months, it has been attack over the pricing of its drug. this question of specialty pharmacies is coming up. there's some fundamental parts of its business that are in question. they said monday they would not focus on getting product where they can jack up the prices. you are talking about a significant shift in strategy announced just two days ago. the short seller report comes out and attacks the remaining parts of their businesses. that's really battering the stock. alix: it doesn't help -- we need to be clear on how does valeant book its revenue. do they take the revenue and book it at sales when they sell the drugs in the pharmacy or put it inventories -- in inventories? drupal and they say they record sales once they are on their way to the patient. drew: they say they record

sales once they are on their way to the patient. there have been scandals in the industry before over the years over that. there will be really serious questions -- a company they bought was in trouble for that same thing a year ago. this is not something that has not happened before. we need to get to the bottom of what's happening at valeant. alix: amazing story. thank you so much, drew armstrong. we will be following this story closely throughout the day. vice president joe biden says he will not run for president. we will get reaction to that announcement. ♪

>> it is 2:00 p.m. in york and 2:00 a.m. in hong kong. tupac p.m. in new york and 2:00 a.m. in hong kong. bloomberg market

day. -- 2:00 p.m. in new york and 2:00 a.m. in hong kong. good afternoon. i'm david gura. ferreri drives to its wall street debut in style and investors rush to get behind the wheel. jill biden says he will not run for president after months of speculation. -- joe biden says he will not run for president after months of speculation. let's head to the markets desk. valeant is the biggest story. julie: stocks being dragged down by health care. more&p now down a bit lagging.the nasdaq is healar