david: good afternoon. here is what we are watching this hour. combining to create the world .lus's biggest drug company how much you pay for prescriptions. commodities continue to collapse. the bloomberg commodity index traded at its lowest level since 1999. how low can they go? obamacare,season for secretary matthew burwell joins us for an exclusive interview to talk about the program after the world's largest health insurer said it continued to cut ties. let's check with the markets desk for the latest. julie: a little bit of a pause after the biggest rally of the year weekly last week. things have been fluctuating in a tight range for much of the session per major averages

higher and the dow nsc -- s&p have turned very slightly lower. remember it is a holiday week so we see trade down there take a look at the bloomberg terminal for the various group volumes. here is the zero line here. anything going down from here means volume is down to one exception is health care where we are seeing trading volume 40% over thean the average past 20 days. a lot of it has to do with the deals announced in the industry. pfizer and allergan, 100 $60 billion. our is technically buying pfizer so it can be domiciled in iowa and get the tax benefits but as we talked about recently, there are questions about whether the u.s. treasury will clamp down on --h inversions nearly inversions. hillary clinton commenting today. this is a specialty battlingtical company

recently along with valeant about concerns on the specialty model. the company's earnings estimates and we saw a strong demand for various medications streak, things like lupus and critically ill infants. -- see the shares of 7.5 yesterday. six straight sessions, we have seen the yields go higher and the price go lower. we have not seen a streak like that in some time. right now, it goes down to unchanged after earlier, the higher. if you look at the chart in the past year, you see pretty dramatic movement. the president of the san francisco fed said today once again indicating december is likelier than not. let's get a check from

mark crumpton. mark: in brussels on the highest level over fears a terrorist attack may be a minute. the belgian capital has been on lock down for three days. charles giving that warning earlier today. in the meantime, after containing 15. wanted toime minister join the fight against the islamic state in syria. he met in paris yesterday. mr. cameron says he wants parliament to allow britain to join and stress against isis. absolutely right to take decisive action to stop terrorists when they threaten the lives of innocent citizens. the united kingdom will do all in our power to support our friend and ally in france to

defeat. completemised to counterterrorism cooperation. the president is scheduled to hold several meetings this week with president obama, vladimir putin, and angela merkel. an associated press analysis finds airplanes spent 23 minutes and 32 seconds on average passing between gates and runways, the longest it has been in a 52nd increase over last year. include massive runway construction projects, schedule changes, and new distant runways that would leave congestion but require more time to get there. politics or star wars? for americans, it is a tough choice. americans say they are as excited about the iowa caucuses as they are about the new star wars movie. they are still 10 weeks away. star wars opens next month.

you can get more on these and other breaking stories 24 hours a day on the new bloomberg.com. i am mark crumpton. david, i will not ask you. is rising greenback against most of its major peers after john williams said there is a strong crease -- case for rate hike in september. still worried about lowflation despite gains in jobs. mixedhink it is still a picture. we see continued improvement in the labor market. the environment for inflation is still one where there is a lot of uncertainty. >> i am joined by tim. thank you for being here. --: i want you to react thank you. david: i want you to react.

think it will probably be good for markets. we are thinking it should be rather modest going forward. we expect a rate in september and then probably on a quarterly basis, look for about 1% more. you have been traveling a lot. it is great to have you back. i am curious from being overseas, with the u.s. economy looks like. what are people saying about the strength of the u.s. economy? tim: you look back and it is actually a pretty good shape. we are sanguine on the u.s. economy and compared to a lot of other regions where you still have some issues, it looks pretty solid and pretty stable and it will probably lead growth

through next year. david: let's talk about china appear you were there as the commodities started to soften. what did that look like and what were executive government officials saying? further down the path of weaker commodity demand. it will flow over and also impact other countries in the region. david: what about the timing of how long this will last? what are people saying? a commodities perspective, it will be a while. we are probably in the beginning stages. probably the silver lining here is china has a lot of wherewithal to deal with a slowing economy aired we will see a continuation of the pickup in spending.

our base case scenario is stable growth in china slightly less than it has been in the last couple of years but whattheless, stable david: were people saying about that over there? reaction was very negative people on this side of the pacific did not see that type of activist intervention. -- we have to we remember china is not a complete market system yet. frequent flyer miles. mario draghi speaking last week, alluding to the fact there will be over -- tim: i would air on the side they would be more accommodative. when you look at

currencies, it is already started to emerge between what is happening. emergence in a foreign exchange rates, and you can see that coming down quite a bit. certainly, there will be front running and the federal race and certainly that is the case shared with that said, the euro is a rather sticky currency. aret of institutions required for historical reasons have -- told a lot of euros. they hit parity this year might be surprised. it will be a little stickier than many things. effect do you see the terrorists attack cap and.

tim: the entire economy in brussels does not have that effect. if you take a step back, one of the things europe needs is more fiscal stimulus going forward. physical need more stimulus. you actually see stronger growth just from this one segment, from this one effect. thank you very much. coming up in the next 20 minutes, a deal for the record books. how pfizer and allergan will deal with their $150 billion marriage. we will hear from president obama's advisor and the e. coli out rake, the latest in a string of problems for chipotle. ♪

david: time know for a look at the biggest stories in the news right now. cars with rigged diesel and -- diesel engines. it is a sign the country is making progress. the german automotive regulator approved a software update. venture -- investor carl icahn says he will shake up the leadership with aig.

he is unhappy because peter hancock rejected his plan to split in three companies. not willing to take. and aig says it will accelerate its previously announced strategy and provide more details before reporting fourth-quarter results. ford has decided to stop airbag inflator's that can explode with too much force, sending shrapnel to eightengers late deaths and hundreds of injuries. you can always get more business news at bloomberg.com. julie hyman has some check that checks on company movers. it is worth mentioning we are seeing in the biotech index, it was up nearly 1% and now up today helped in part by a company not strictly fast it is out with his earnings.

another company doing well in today'session, it rose friday sharply after the fda raised questions about medications to treat a rare form of muscular dystrophy. it is developing a competing drug and is due to get the fda review conclusion in february. we are looking at a company that is rising for the second straight day as well. a trial shows us it's experimental medication to treat a type of fast-growing brain tumors, that their folks lived at least two years had a relapsed case of it. though shares rising by 13% and horizon pharmaceuticals, more of a specialty pharmaceutical company as well. said it iso notably potentially looking for acquisition targets, and there is an enormous amount of activity on that front caps off by the mammoth record settings

today, which i know you will talk about. david: thank you. 2015 will go down in history as a record year for m&a for a $100 billion deal that pushes the 2007 at this megamerger could spur more deals in the health and space. a look at the future of the industry is cynthia, good to have you here once again. what does it say about where things are headed? >> i do not know if we will see anything of this size. the companies in the ballpark to do something like this, you're talking j&j and merck. the ceo said he is not interested in a deal and at least j&j. be thet think this will start of massive inversions. it does not mean there will not be more inversions, i can see that continuing. i think there will be more at

open the door and say hey, it is possible. david: hillary clinton speaking on this saying the government cannot delay ashes on inversions. what are regulatory hurdles that look -- standard regulatory hurdles it also those now as we have the treasury taking a closer look on inversion deals? >> treasury can do some things, there are issues like other financial ways where companies are able to potentially make more money than u.s. counterparts and there are ways the treasury could tinker. it is possible there could be more regulation but also because stocks move, reaction with headlines, depending on what they say and the stronger languages and what the tone is like, i think that will impact stocks but i do not think the deal itself is in trouble or

compromised by potentially what is going on. the regulatory process will be a long one. there are other jurisdictions, china has to win on any deal on their soil. it deal has a long way and will stand up to a lot of scrutiny but it does not look like now that there are major hurdles or major pieces that do not fit together. tom e what you make of allergan's trading today? is showing ast investors seeing this as, it will take a long time and we do not know if it is worth putting it in now. higher price. the price, some people were thinking over 400. this rice came in a lot lower than expectations and investors will digest that and i think it will take a while for the shares to come in because there will be concerned about all the noise we

are discussing. there will be a gap and we will see if shareholders will come out and be opposed to the deal and we have not heard anything like that so far. it is enrollment season for obamacare. coming up, i will speak with secretary of health and human services right here on bloomberg television. still ahead, another official joins us to talk climate change. how the president is getting prepared in paris. ♪

david: welcome back. united nations climate conference kicks off next week, involving the whole world are president obama will head there to join the fight and so will john holder. from the white

house. great to have you with us. i wonder if we can start with you telling me what the principal objective is for the white house and what would constitute -- over the few weeks? agreement that locks off targets for all the rest of the world. we had 160 plus countries that entered with the framework on climate change. a very good sign. we are looking for a framework that provides for ratcheting up ambition over time. we're looking for an agreement that improves provisions for financing in countries that do not have adequate resources themselves close to invest in energy sources, clean and efficient, and to invest in preparedness and adaptation for climate ongoing and will continue even in the face of the best possible mitigation efforts. david: you have come out and

somethingif there is here that prevents global temperatures from rising by two will notelsius, that be enough. talk to the skeptics who think perhaps the horse is too far out of the barn, what good could come out of a conference like this and is it too late? >> i think it is not too late. climate change is ongoing and we are already experiencing harm life, health, property, ecosystems, and in the form of more extreme hot weather, longer and more intense droughts, more powerful storms, smog year days, rising sea level creating coastal flooding and coastal erosion problems. it is not that there is a safe level to stay below, but it is possible to avoid the worst impacts if the world asked to gather and ask now. that is the aim of the paris

conference. david: as the u.s. makes its case to the world, how big a component of that is the economic case, economic benefits to doing more? >> there are two sides of the economic argument. one is to avoid damage from the future of climate change and the other is the economic edifice associated with developing and deep deep -- and deploying technologies, advanced ways to use energy effectively and efficiently for economic growth. we are in a sense being driven to innovate in ways that will ultimately benefit our economies. david: when you look at this conference, what makes this one different? are you more optimistic than in the past? >> i am in one of the reasons is the joint announcement last november when president obama and the chinese president jointly announced in beijing the

commitment of the two countries to reduce their emissions. never before happened that the united states had the two biggest economies in the world, the two a ghost in the world, had set up together and said, we are contributing to it and we in the solution. that changed the whole tenor of the international discussion and led to the circumstances today that i mentioned. over 160 countries entered their nationally determined contributions for emissions reductions after 2020. we have never seen anything like that before. the other thing that is different is the evidence that climate change is not only ongoing but causing harm all across the world. it has become so compelling that countries have realized a have to join in in their own national interest. it is not something the countries or join because the united states is telling them it is a good thing to do. they are joined because they

understand climate change is already harming them and everybody will have to participate in a solution or it will not be enough. thank you for joining us today in the white house. mcdonald's has been soaring while chipotle shares have get coli gotten lacked in e. shares. ♪ the only way to get better is to challenge yourself,

and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20.

it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. david: let's start with the headlines on the bloomberg first alert news here at mark crumpton has more from the news desk. feeling thearters

effects of heightened security in belgium following terrorist attacks in paris. staff members are being asked to work from home and external business and visiting groups are being canceled. those are authorities have raised the alert level to the mask -- maximum rating oh officials say schools will reopen wednesday. having a attacks are major impact on tourism. figures show 10 days later, a dozen -- other museum -- other tickets down 30%. the french prime minister will be meeting with industry officials to come up with a plan theimit the debt -- limit damage. finding ways to diffuse random violence will be john kerry's top priority. an israeli woman and three palestinians were killed on sunday. vladimir putin is in iran for

his first visit since 2007. leader ali hominy. the two countries discuss the civil war in syria. russia had been a key ally of syrian president bush are us -- bashar al-assad. a muslim boy arrested after taking a homemade clock to his school saying he was publicly mistreated and deserves $15 million. he took his clock to his texas school in september and a teacher thought it was a bomb. the family has since moved. you can get more on these and other breaking stories 24 hours a day on bloomberg.com. i'm mark crumpton. david, back to you. david: the bloomberg commodities

index began its lows since 1999 and recovered. placed to work with opec's and other producers. of uti rose as much as 2% following this report. copper fell below $45 million a metric ton for the first time in six years, a nickel touched in its lowest in more than a decade, slowing china command covering up with a strengthening dollar. more expensive to buy and cheaper to produce. thank you for being here. possibly stop this slide? >> either one, china needs to buy more copper, or two, copper companies must realize things are bad and so far, what they're saying is, don't worry, things are not very bad. we will keep producing and we have no issues in the world. until they wake up and realize how bad the role market is, it will continue to have more days

like today. david: are we seeing more people get on board with what goldman sachs wrote last week, that essentially cuts will not be big enough and we have to see an uptick in chinese demand? 2% tonese demand is down 4%. the rest of the world is not helping. copper production is up 6% through nine months of the year. thing that could really make things move is priced. until price punishes copper enough that you see even more cutbacks, it continues to be worse and worse. what about production costs, is that pretty stable? >> snooki are copper prices were almost too high to begin with. 202 though we were around per pound, they can get their .ash in under $150 a pound auto traders are looking at saying, we do not think we will

see massive copper production unless we see the prices drop further. david: let's talk about naples. seeing the same thing as well? >> similar but nickel has been used as a financial means inside of china. was a big scandal a year-and-a-half ago where banks stopped using nickel as a financing tool and that cost a lot of the nickel come back onto the market in a very big manner. nickel is plunging, $23,000 two years ago. $8,400 today. a massive decline. zinc actually has seen the most amount of cuts and there is one century mine in australia. it is supposed to close sometime this year. santa claus is coming so it better close soon. joining usk you for

from princeton. a rough two months from the late. has been a different story and mcdonald's where shares have rallied recently under the direction of the news eeoc the easter brought. .et's look at the tail looking at the share prices of , mcdonald's is going up and pull it is going down. let's start with mcdonald and what this involves what else has mcdonald's done well? >> they took a look at the menu and said we need to signify things. they said we are getting back into the value equation and a promotion with a tube -- two for two meal. all have not really gone for the results just yet. there will be a lot of people looking at what happened in the next quarter. menu had gotten

incredibly immense. more than one item -- more than 100 items to a lot of stuff seems like no-brainers, focused on customer service and slandering the menu. >> i think they had taken their eye off the ball and felt easterbrook came in and knew the business and ran the british division of the company, he just said, we need to get back to convenience and hot and tasty food. they sell food and have to do it fast. being alling menu things, that is slowdown service when you are getting in and out of the restaurant. it is a big deal for them and they are focused on it. the drive-through is still hugely important for mcdonald's. >> yes. they are now taking a hard look at it and trying to get the orders right and that is a huge issue. if there is a backup of the drive-through, those franchisees live and die with the drive-through.

incredibly important part of the business. the e. coli scandal, a handful of states, how damaging is it went something like that happens? >> there was a feeling of to this point in seattle and you hitat the time those restaurants come you get the cdc and new york and california, there is a sense this has gone coast-to-coast. food withredients, integrity, these are bad headlines for chipotle. worried about how much guacamole would go up with you pull it. have a managed any problems? >> in some ways, they have reached middle-aged. they have already said they

would end this year in low to mid single digits. the question is where is the growth going to come from? people do not know about a and we need to educate them about the story. thank you so much for joining with us today. after the break, and exclusive interviews coming up right here. ♪

david: welcome back. it is time for the bloomberg business flash, look at some of the biggest business stories in the news right now. capital partners and the canadian pension plan investment board will buy the pet supply

chain for $4.6 billion. petco is taken private by leonard green in 2006. according to a person familiar, attorney general is investigating possible manipulation in foreign exchange trading. placing fakeay be orders, a technique sometimes called spoofing. also ghosting because they create the impression of activity not really there. fiat chrysler is expanding a free tuition plan to include spouses and children of dealership workers. online or any university campus. can always get more business news at bloomberg.com. let's head back to the markets desk where julie hyman has the latest. julie: a little bit of a leg lower we have not seen that much change but now things are going in little more decisively south, even though still only off about

one third of 1%. kicking off this holiday week. i wanted to talk about ceo changes and other comments from ceo's is. remember the company has a trip or -- triple structure. it owns some of its assets and those companies had their ceo replaced. carl is being replaced by chief financial officer ryan, who gets more authority here. by can see the shares are up 7.8%. they are down more than 80% for the year today and there has a lot of questioning about the structure and its various affiliates aired getting a new ceo as well, the online one pricing data provider or the gentleman who is taking over for scott painter, who is retiring, is chip perry, an internet auto pioneer.

you see shares getting a big bump off of that news. up holding auto trade.com into the largest online vehicle marketplace. so now coming back to that industry. , group on,pany andrew mason, the former ceo of the company commenting today saying groupon deserves to be liked and a new ceo from the company should be positive, reiterating some of his comments made last week in the log post and shares up 3.5%. very much.k you open enrollment is once again underway for health insurance under the affordable care act aired it remains a controversial program with one insurer threatening to drop out and some participants complained the coverage is not as informal as it should be. joining us to discuss health care reform is the secretary of health and human services. great for you to be here. thank you very much.

let me start with the news and the about-face. about expanding its program and getting into the new market and in a conference call, saying they would scale that back and the ceo saying to investors we cannot really subsidize the marketplace. it does not appear at the moment to be sustaining itself and i want to get your sense of what he said there. >> i will speed to the broader marketplace. when we think about the solid nature of the marketplace, thinking about the consumer, we know in this open enrollment, we had over one million consumers come in and we also know within 24 hours of that statement, whether it was aetna, kaiser, or other issuers, they all stayed solidly in the market base. to move forward and we will always want to listen and learn but we feel as

we move forward, we have a product the consumer wants and is satisfied with and it is it lays were issuers want to come grow their business and innovate. i wonder how regularly you have conversations with someone like this. is this a regular dialogue? >> with regard to governors and others, i have regular conversations. there is not a day that passes that i am not in touch with one of those groups as we continue to listen and learn about the broader issues in the industry. you have some insurers that are worried and perhaps some hospitals as well. we have analysis looking at the index,in the health care and we see a really reasoned uptake there. is anxiety their when we look at hospitals.

sylvia: it is also probably good to look at the insurance industry. doing very well in terms of the insurers, that is not just well in terms of their market but the stock market more broadly. with regard to specifics in the half no, it would be important to break that down into what states. we do know there are differences in what is happening in the hospital industry. avid: there still seems to be perception issue. as you look at hospitals in the health care sector, it has performing -- in performing pretty well. you see millions of more people getting insurance. when you look at the most recent health-care poll, 40% of people have a favorable impression and 42% have unfavorable impression. what more are you doing to get the numbers to turn around? one thing we are doing

is talking about substance, the substance of open enrollment, the marketplace today, more than seven in 10 folks of the marketplace can find a premium of $75 or less with the tax credit. making sure we are getting substantive information about what the affordable care act is and is not is an important part of us changing the numbers. david: i have heard from people deductibles are too high and too high to keep them down. what you say? sylvia: it is important to look at total costs. we agree with the concept and we're giving consumer tools to do that. whether that is an out-of-pocket estimator on the website, they can allow a person to think my total costs, and therefore make a choice, or changes that took place as part of the formal care act that many people do not realize which actually cap the out-of-pocket expenses.

people tools so they can shop and get the best plan for them. released revised targets of 2016. that is radically different than what the budget office has predicted. it is the second year in a row that has in the case. what accounts for the seeming disconnect? sylvia: the most important thing to focus on is the reduction in the number of the uninsured as the starting point. we are at 17.6 million in terms of the number of americans no longer uninsured. it was predicted we'd be around the 17 million range at this point. with regard to the people in the marketplace, one of the largest differences between us and cbo is cbo in their estimates, and that was before we has this experience, 6 million people would move from an

employer-based insurance to the marketplace. it is not something we have seen. david: when you hear people saying this continues to be love -- rolled out, you disagree? sylvia: i think it is imported to focus on, is it a product in terms of specific to the marketplace, what consumers want, and are issuers a part of doing that. i think it is important to go back to, we want to focus on the production of the uninsured. people enroll in the marketplace or because they have low unemployment and the nation. positive ways to impact and and thatey uninsured is the outcome we want to focus on. to youi want to talk lastly on the expansion of medicaid. you mentioned you are in regular conversations with insurers among other people. are you talking to the governors among the states who for whatever reason might have been there areor du think

starting to come around or is there room for you to come tound to make suggestions change the contours of the law? we have been opened to how we work with states. since i have been secretary, before the change, a republican governor in indiana, montana, alaska has come in, we want to work with states to make sure we can expand insurance for the citizens of that state and the economies in ways that work for the state. i've had many of those conversations with governors across the state and we welcome the opportunity to have more. david: thank you for your time today. up, jack ma following in jeff asus is footsteps. we will bring you that story next. ♪

david: welcome back.

alibaba's jack ma is in advanced talks to buy stakes according to people familiar with the matter. emily chang asked him about this earlier this month in beijing. >> i have to be careful for my shareholders and our strategy. invest a lot of online media. we also invest in a traditional business. because people say internet ed the off-line retail business. if we can do better and work together, we can do better. working with us, why the other people? think it might be very

interesting. for them to understand us. we just want to set examples and also for us. help tometeors to way, huge. by the the media can definitely using our data, -- >> are you going to buy it? >> i did not say that. did not say that, he said. so much has changed. emily joins me now. i was surprised by what he had to say about how his company now surprised you are it wise alibaba so interested in buying this? >> we have seen the small stake in some companies. the flagship english-language

kong, a prizeong itself on a bit of political separation from the mainland. two years ago, jack ma and the paper came to blows over this comment he made, virtually in support, the reporter ended up so ultimately come a could be fraught with political we haveions but look, seen former facebook executive chris use by the new republic. interesting, they have been struggling like many newspapers with online viewership and making that sort of transition while jack ma knows a thing or two about the internet. david: no one ever has a quick answer as to what alibaba is now getting into media, does this

company seem to be drifting farther away? make awe have seen the lot of interesting and curious acquisitions. a stake in a hollywood studio and when asked why are you making these across so many different areas, on the one hand, we say look, we need to experiment and want to be on the forefront of whatever is next. we do not know necessarily what that would be. thank you very much. emily will be talking tonight with the shop kick ceo right here on bloomberg television. in the next hour of bloomberg markets, the markets have been on a roller coaster ride. will that continue? more after the break. ♪

>> 3 p.m. in new york, 4:00 a.m. in hong kong, welcome to bloomberg markets.

i am scarlet fu. market seeking some direction as stocks fluctuate between gains and losses. after three years of losses, from the election of a new president in argentina to the plunge and commodities, we explore which nations may be poised for kickoff. is going in the record books as the best year ever for m&a. pfizer targets a tax move to ireland. are one hour away from the close of trading on this monday so we need to check in with julie hyman for the very latest. we are now in the red