and allergan shed those 100 points. yeah, you know what? in an era where deals have been killed left and right with the most activist antitrust department in 50 years, i don't think there's necessarily a reason to believe that any deal is going to be a given going through, especially one that is now politically unpopular. yeah, i trusted the government to keep its word. meanwhile, the government claimed there was no word even offered and allergan and pfizer were acting as rogues. the government changed the goal post. but if i knew enough to take profits from walgreens on the spike, why didn't i know it would be too dangerous to hold out for the pfizer/allergan merger? simple answer. i was greedy, and the bottom line is that in this business, greed is just plain bad. don't let anyone on or offscreen tell you otherwise. "mad money" is back after the it only takes a second for an everyday item to become dangerous. new tide pods child guard pack. helps keep your laundry pacs safe and your child safer. align, press and unzip. it's the phillips'

allergan has growth in spades. i trust the ceo to deliver a ton of new drugs in 2017, and i hope he comes here very soon. finally, i think it's worth noting that walgreens boots alliance sold off yesterday on the commentary from cvs. but one of the main problems with cvs is they're losing money to walgreens. plus we know the earnings were excellent. now, today walgreens regained all the ground it lost yesterday. but with trump taking the white house, i think the prospects get even brighter. why? it's more likely the company's rite aid acquisition will pass muster with the regulators once president obama is out of office. so i've been telling you we can figure out how to make money regardless of who wins the white house. with last night's surprise trump victory, things are looking a lot better for the health care cohort even after their rally today. there's still plenty of subsectors within health care that have their own problems. but if you know what you're looking for, i think you identify long-term winners. i'm

and we got earnings from allergan and alibaba and many others we'll get to as well.ant a great way to help our children thrive? then be sure to vote yes on proposition 55. prop 55 doesn't raise taxes on anyone. instead, it simply maintains the current tax rate on the wealthiest californians to prevent education cuts that would hurt our kids. no wonder prop 55 is endorsed by the california pta, teachers and educators. because all of us want to help our children thrive. it's time to vote yes on proposition 55. it's time to vote yes he's the drug company big shot who raised the price of a lifesaving pill by five thousand percent. said he wished he'd raised it more. prop sixty-one targets drug company price-gouging to save lives. the drug price relief act will save californians nearly a billion dollars a year. join the california nurses association and aarp and vote yes on sixty-one. the drug giants won't like it. and he'll hate it. it begins from the the second we're born.er. because, healthier doesn't happen all by itself. it needs to be earned every day. using wellnes

finally bret saunders at allergan, who now is despised. he's made shareholders a fortune but this recent run with allergan, it's now become a real loser. it could have been a huge winner when pfizer tried to buy the company last year, but then the treasury department changed the rules, moved the goal post-on tax inversions, blocking the deal. it has really been downhill ever since. yesterday saunders announced a $10 billion buyback coupled with a 70 cent quarterly dwejd, but allergan also missed estimates and the stock has been crushed, falling from 209 to 189. this is just in a two-day session. that's down a stunning 45% from its high. we own this stock for my charitable trust, and we've been telling actionalertsplus.com over at thestreet.com that saunders isn't getting enough credit in this vicious environment for drug companies, but do not touch the stock until it gets to 180, which is about nine points below this level. why? at that point it will be cheaper than jongsen and johnson, pfizer, america, bristol-myers, and eli lilly own tho

i do like allergan. that stock is down 30 plus as well. it's trading at 12 times forward estimates. their profits are not focused on the government reimbursement. they don't have as much pricing concerns as some others. they have a $10 billion buyback. i actually think that one you got to stay patient. alexion and allergan are volatile, but they have to stay patient. >> j & and pfizer who are really in the midst of the conversation about repat yags of capital. j & j, they have $40 billion. it's over 90% of their cash balance that's overseas. i think bringing that cash back here is going to allow them to really develop and go out and initiate some growth strategies. steph mentions the potential acquisition here for the swiss biotech. talking about a price somewhere around 25 billion. yes where, in the near term. you're talking about j & j. it has had one spectacular run. it's now pulled back, i believe, from the august highs about 10%. i'm not necessarily sure that there's more down side here. i think you want in building this longer term looking forward to some of the things like re

pfizer's attempt on allergan. investors expect not only a potential lowering of the u.s.orporate tax rate but a potential tax holiday, as well. where companies could bring overseas cash back into the u.s. at a lower rate than what they would normally pay. this, a potential boon to companies like amgen, which holds $34 billion. gilead with $25 billion, and merck with $21 billion. according to evercore isi. but it's not all smooth-sailing. donald trump has also said he would repeal the affordable care act, which could create a lot of uncertainty for the future of health care in america. for "nightly business report," i'm meg tirrell. >>> and a bill later in our program, we'll take a closer look at what might happen next to the affordable care act. >>> dow component caterpillar along with other industrial stocks also performed well today on trump's pledge to invest heavily in bridges, roads, tunnels and other infrastructure. >> it's not just a deeply divided populus the new commander in chief will have to repair. infrastructure is on the agenda, as well. in his early morning

allergan -- what do you do with the money? distribute as you will. come out with earnings, a plan.ip equivalent. they had a dividend and they toss $15 billion back to shareholders. at least that is the plan. we will continue with willem buiter. our fed coverage this afternoon will be at 2:00 p.m. stay with us. next, willem buiter. this is bloomberg. ♪ guy: 10:42 in london. why am i here and francine is not? well, she is downstairs. she is talking to a great guest here at bloomberg. talking about how he is confident with what is happening with iron ore. what is the right direction for china? they will carry on the conversation and we will bring you the headlines. here's taylor with "bloomberg first word news." taylor: the maker of botox, allergan, will begin a quarterly dividend of $.70 a share. $10 billionadding to a buy back program previously announced in may. the company posted third-quarter earnings that missed estimates. in london, a former blackrock fund manager has pleaded guilty to two counts of insider trading. littleton'sys trades were carried out for his own personal gai

the takeover of allergan.bearing down on than eric companies in a sweeping criminal investigation with shares in the markets down by two thirds of 1% today. u.k., right to move says that u.k. house prices fell by 1.1%. it is normally a slow month to sell. asking prices in london fell for a six-month. much smaller than the 1.5% average seen in november. donald trump may be good for the london housing market, so says right move today. his victory could spur the return of international investors seeking a safe haven. london's most expensive districts have fallen out of favor since brexit. we have a surcharge on investment properties as well, just to give you a flavor of the movement we are seeing in yields .cross europe on market earlier, i showed you the difference between spain and italy. the italian yield is now 50 basis points wider. yearss the widest in five which affects -- reflects risk of the italian referendum. this is the brexit on the 23rd, , weday of the referendum have 1.37%. .own in august, we fell

so he loaded up an allergan but was working with pearson at valeant.aleant pog as well, but his reason for being here was different. >> it can go up 20% a year for the next ten years and still be nowhere near its peek of just a year ago. >> right, but if you're these investors, you have no choice but to try. >> thank you. >> all right, now, let's talk about something that we've been pretty active on. which is fees in the market because here's the thing, david. and you pointed this out, we were in san diego, we saw you. a lot of our viewers and investors buy etfs and funds, low fees. you've done a lot of verge. exclusive stuff, and you say they may not be as cheap as we think. how come. >> it's like an iceberg and you have a low management free. delusion, equity plans. more of the plans are going to sopping up these equity plans. it's about 4. is%. because of the way it works is that what goes up, they have to buy more of because the market value. what compounds the risk with etfs and index fund ss that 95% of the time, these index funds vote in favor o

lpl and i really got hurt on endo, in the health care side and allergan, where i own the options and were very, very painful trades. >> jimmy? >> look, a sector that has just gone nuts all year, particularly the last month, small caps, right? so a lot of names here you're not going to know. i'll pick one you do know, winnebago doubled off the february lows. that's been a great trade and great for our clients who own it. on the foul side, and i hate to take the opposite side from you, jon, but apple, for all its movement really hasn't gone anywhere. there has been all this drama with it. every time you wake up in the morning, some news article on apple, i'm tired of it, i want it to be a sleepy slow grower and can't get that from it. >> got to get it at the right time. as we said, some of these -- the stocks, you know, like the so-called fangs and apple, since november 14th, when they seemed to bottom, they all had a nice reversal. apple is up 5.5% since then. most of the names are up about that level with the exception of amazon, which is up 10-ish. >> they sold off after the electio

they paid $40 billion to allergan which owns 10% of the company. so i say teva, i don't know. if it can get -- back -- no, no. i would sell this tomorrow. there is something -- this is not working out. bob in new york. bob. >> caller: hey, jim. how are you? >> i'm good. how about you? >> caller: not bad. first of all, you're our family's financial gps. wanted to let you know that. >> thank you. >> caller: and over the past week, visa has taken quite a hit. i'm thinking in terms of a trump administration, quite frankly in any environment, visa seems like a company that would thrive unless the fundamentals of the company have changed, and i don't see that. >> bob, it's total flawed funds. here's what happened. visa, mastercard, and american express, they're considered to be faux financials. they're what you buy when you don't like the banks but you want to show that you own financials if. banks are good, you got to sell something. so they're selling the faux financials. i agree with you. we think visa is a buy down here. i think you're right. patient ensz. dorothy in massachuset

it is odd because allergan is a pharmaceutical company and while i was there started losing my vision. i came to the san francisco bay area when i could go longer drive because i diwant my life to be over and i-but i-the only thing i couldn't doot the time is drive. i could still work and so insed of working for a pharmaceutical company because i moved to the city, what a great city for transs portation i didn't to-catch a bus to catch a bart and shuttle. i decided to go to executive recruitjug i came in 1997 and began my career as a executive recruiter so i have been fortunate enough to work in the city with many of the large corporations for many years. that is why i think that i'm the luckiest person in the world because it was just serendipitous that my life was able to do continue doing what i was doing before but serving the community i became a part of. thank you joannea. sorry? >> that is quhie i wanted to you to tell your sorry because through that wealth of experience and being able to reshape it and service to the community is what is really important and you know, earlier

they focus on six large funders, drug companies, j & j, merck, pfizer, allergan, and calling them criminalselled ceo ken frazier's name. yes on 61 appears to be losing its edge on the polls. the latest from field research shows support has gone from 50% yes with 16% no to 47% yes, 47% no and 6% undecided in late october. that may be due to a massive spending imbalance. $109 million to $17 million. no campaign telling us, quote, prop 61 is a deeply flawed and confusing measure that won't deliver on its promoters big promises. supporters continue their push in the state with senator bernie sanders campaigning for it in both los angeles and sacramento today. clearly, tapping into some of that anger around drug pricing. >> it's going to be a close one, thank you. if only we had someone watching the exit polls to tell us what was happening in key states? >> that would be me. i'm the numbers guy. i have a parting thought,. >> place share. >> everybody should vote. and there's data and research that shows that you need to make a plan to vote. you can't just say i'm going to vote. >> right. >> if y

allergan sold their business to teva. people getting worried about how much that means prices are rising. >> how much she talked about it being the system and not just us. thanks for joining us. >> thank you. >> we have about 45 minutes to go. dow is down 6 points. ritzer not the size of the decline but the fact that they are continuing to fall. nasdaq is down 37. >> coming up, we get the latest developments on the fbi's probe into the clinton foundation. >> starbucks, cbs and go pro expecting results. you are watching cnbc, first in business world wide. for the holidays. before his mom earned 1% cash back everywhere, every time. [ dinosaur growls ] and his dad earned 2% back at grocery stores and wholesale clubs. yeah! even before they earned 3% back on gas. danny's parents used their bankamericard cash rewards credit card to give him the best day ever. that's the joy of rewarding connections. learn more at bankofamerica.com/getcashback. is that they contour to tempur-pyour body.esses... you just have to lay back in my t

biggest laggards allergan, mylan, gilead, the sector lost 3% year-to-date and second biggest sector outng attention. back to you. >> thank you very much, dom. president-elect donald trump busy working to fill high level administration positions this morning officially picking alabama senator jeff sessions for attorney general. michael flynn is his national security advisor, and kansas republican congressman mike pompeo as the director of the cia. meantime, with protests continuing, our next guest says to heal the divide a president trump needs to build something inspiring. joining us here at post nine pulitzer prize winning "new york times" columnist jim stewart. we were talking just during the break, you've gotten a lot of feedback already on this column which says let's do something big and bold and build, which is what of course he knows how to do. >> absolutely. this is what trump has said he does best and he has a track record there. somewhat to my surprise i've gotten this avalanche of responses. i think there is a tremendous hunger out there for something we could all rally aroun

taking a look at allergan, shares moving slightly higher. it did cut its full-year earnings forecast but that is ok because it issued its first ever dividend and added to $10 billion in share buybacks. david: coming up, the fed wraps up its two day meeting. how strong will the signals for december be? strategyad of ethics is here to tell us why his bank rates will be on hold until 2017. ♪ david: this is bloomberg, i'm david wein. the federal reserve rate decision is at 2:00 p.m. eastern time and if you look at feds funds futures, probability of a rate hike is 68%. us.d kotok is still with me about this it seems to be the best kept secret in the world that they are not going to do anything. matt: we want to see how interested they are in cycling -- in signaling a move in december. last year at this time this meeting before the december meeting, market probabilities were quite a bit lower. around, it is more of an open question because the probability is already sell high, so do they need to be as forceful this time? david: but sending a signa

pfizer doing the allergan deal to get the cash overseas. so everybody doing inversions to get access to cash not going to have to worry about it anymore. and that certainly crosses off one big reason for doing them. >> let's talk tesla for a second. okay. i mean, tesla is a company that i would not imagine gets as many tax breaks. >> no. >> right? >> but tesla does benefit from subsidies, doesn't it? >> oh, of course. >> we've seen the impact of those being taken away. >> so they're going to hit tesla on solarcity. >> yes. >> essentially that was like a hillary clinton dream come true stock. >> right. solar, wind, electric. you know, he doesn't think climate change is real. so he doesn't -- that's not going to be part of the agenda supporting those, i don't believe. but again, who knows. >> going to privatize prisons. i see the corrections. >> maybe. >> can i just say things don't happen overnight in our country? they don't happen overnight. >> i once had a boss who said there are some meetings you go in and your world changes as you walk o

some of the companies holding back the gains on the s&p 500 are companies like allergan.king at the brookings institution. text. a prepared he says that bond market fire sales are a policy concern. he says we must watch the potential for market stress. he says the flash market events may be more frequent and he is not commenting on the u.s. , it's all fed policy about market liquidity which he says is adequate i most measures. -- by most measures. fischergo to stanley when he starts his comments. text of the speech of market liquidity -- he joins a string of federal officials meeting this week. more on what we are likely to hear in the wake of the election, we are joined by joe weisenthal. let me take one headline -- stability benefits may out -- may outweigh the cost of liquidity? a conversation emerging after the donald trump election about what happens to financial markets. seen a huge rally in financial stocks since the election of donald trump on the belief that there will be a rollback of some of the obama era regulations. no one knows what it will look like. signal

allergan falling in premarket trading after an initial gain.nced a stock buyback. >>> electronic arts shares are jumping. the video game maker beating estimates on the top and bottom lines. shrugging off what was a forecast. >>> and airline operator -- how do you -- >> avianca. >> higher this morning. citing that avianca is looking at a sell of the controlling stake in the company. said to be among potential bidders. have you flown avianca? >> i've not. i've luckily heard it said before. >> yeah. looks like a jumble of ivanka. >> today's was especially hard. >> it was hard. siding. siding is not hard. it's the ing. >>> alibaba posting better than expected results. with the company's conference call, we're joined. good morning. >> good morning, guys. alibaba is defying concerns about the chinese slowdown. handily beat expectations on the top and bottom lines. its core e-commerce business remains strong. it's also having a lot of progress monetizing that growing base. now, annual active buyers rose 14% in the september quarter to 439 million. but

va also bought activist from allergan am some of the other others that are fall, as well s i mentionedare necessarily household names, but they make generic drugs. but they could ago fect by this probe. many of these companies did decline to comment beyond the companies mav that me mid or didn't respected for comment for question. e're seeing a ripple effect. mall and crew seems to be very reactive to issues of drug pricing. i think we'll motion more on these story throughout this great afternoon. >> >> than while, we're going to have coverage of this covepble stock of this is bloomberg. ♪ scarlet: this is "bloomberg markets." we want to get back to the news we broke earlier. we have u.s. prosecutors said to ready file charges against generic pharma companies by the end of this year. this comes up as they wrap up an almost two-year criminal investigation into suspected price collusion. joining us now with more is bloomberg's caroline chen, who helped break the story for us. this is a two-year-long probe. what exactly is it about? it's about executives coming together and agreeing on pr