shire made a $30 billion bid for xl to. -- baxalta.d the advance by shire, which is looking to become the world's biggest maker of drugs. shire closed down more than 5% while rexall to -- baxalta and in the day up more than 11%. let's get more on shire's bid. sam joins us in the studio. does this make sense, this approach is that we saw from shire? sam: when you have a hostile bid like this the other party is not just going to roll over and say yes on the first bid. i think it does make sense for shire. this is along a strategy that they have been talking about. the new ceo. it does fit. parts of baxalta fit very well with what shire is trying to do. this would create a significant powerhouse where you still can command some meaningful pricing power. anna: and rare diseases is something baxalta seems to specialize in. sam: both companies. shire has been mostly based on that. attention deficit disorder, etc. they are trying to bring their earnings into ireland and reduce the tax on it. pretty quickly, they get a significant uplift in ea

didn't take long for baxalta to come back and say no thank you. in fact they said no thank you on july 10th when this same offer was made by shire to them but back then it wasn't a public offer of course. it was behind closed doors. and in fact baxalta probably expected they would come back perhaps privately and raise an offer of some kind pf although frankly they were somewhat surprised to get the overture at all given baxalta has only been around as a public company for such a short amount of time. about a month. i can't remember ever seeing an unsolicited cross-border for a company that's barely been public. by the way, as we pointed out this morning baxalta does have significant takedown defenses. you can't call a special meeting. you can't act by written consent. poison pill kicks in at 10% and they have a staggered board of directors. and by the way they just had their annual meeting a short time ago. and not to mention cross-border, hostile, all stock. and big. so much so that in fact shareholders of baxalta would own 37% of the combined co

baxalta won't even talk about the proposal. betty: founder of greenlight capital says the month was the worst of the company's portfolio since 2008, losing nearly 6%. on a conference call this morning, he said it was hurt by insurance underwriting and weak results at micron technology. >> projections were affected by lower-than-expected computer demand as well as manufacturing issues that arose in the company began migrating capacity from computer dram to mobile and other components. the results surprised the market and led to lower forecast earnings and stock price. we continue to believe that the industry the a beer is more rational with three players and still expect current offerings to be higher than in the past and peak earnings to be higher in the future. einhorn says the current market is wrong for greenlight strategy. beating the republican presidential field by a wide margin. thoseis backed by 21% of surveys. former florida governor jeb bush's second at 10% and wisconsin governor scott walker is third with 8%. the sur

matt: we are getting breaking on on asphalt the -- baxalta.talked to buy job maker talks to buy the job maker may continue. we will have more on this story. look at the chart. down about 5% today. it does not look good for baxalta, especially since the drop is so sudden. matt: our senior market correspondent julie hyman will have more on the developing story when we continue in just a moment. ♪ matt: this is bloomberg market day, i'm matt miller here with mark crumpton. we are halfway through the session, and already stocks have gone a taste of the volatility that has returned with a vengeance. julie hyman has a look at the nasdaq tom in particular. julie: the nasdaq has been the leader of the day. we have seen it go into the positive and many negative again. the dow has remained in the red. the nasdaq is in the red today. you can see we had a climb into the positive around 11:30, and then coming back down again. as you look at the bloomberg terminal, it was not just today but over the past five sessions. what have we seen this week? this is a

apparently, baxalta management will not engage. had tried to engage with baxter before although they didn't quite say that but i read it in news articles here and there before the company went public. they didn't manage to get a deal done. could they pay more? we have just done a little analysis looking at the fact that shire would bring the earnings of before axalta into its lower tax jurisdiction. the fact that you could easily historically speaking cut 10% of operating expense s of a combined group and that would be $500, $600 million dollars. it can still be a break even deal for them, even if they we want to $50 a share. the moment you add cash, you immediately start increasing the -- per share basis. francine: what are the strategies? we have seen it in the past where companies have enrolled white knights. could it be a similar situation? >> they have an exasting white knight. baxter doesn't wan to pay -- this is the company that knows baxalta best. if they start making sounds as to no, we're not going to sell. other sellers

baxalta, they were 71 when they did the split. it's now at 84. everyone laughed at baxter that they were trying to unlock value. they unlocked a huge amount of value. >> they are talking about a significant buyback should they succeed with this. again, a lot more coming up. >> that company spun off the day that akahne called the top. >> when we come bangck, better than expected results from coach. take another look at futures. we have 13 dow components in correction. we had 12 yesterday. but apple makes it one more. a lot more "squawk on the street" from post nine in a minute. here at td ameritrade, they love innovating. and apparently, they also love stickers. what's up with these things, victor? we decided to give ourselves stickers for each feature we release. we read about 10,000 suggestions a week to create features that as traders we'd want to use, like social signals, a tool that uses social media to help with research. 10,000 suggestions. who reads all those? he does. for all the confidence you need. td ameritrade. you got this. much lead

some say this implies that baxalta could be a poor quality target and is why is offering the lower pricethis deal does eventually go through. among other stocks we are watching, i want to look at e*trade. those shares are surging after d themrd and poor raise from a poor. they have been building their own capital position. the risk-adjusted capital ratio has improved to a level of 17.3%. e*trade shares rising. rg -- take a look at nrg energy. the company may consider splitting officer noble business in 2016. it had already's let off some of its power generating businesses into a separate company that holds those assets. olivia: thank you. energy can telling -- energy continuing to sell off. latestime to check the headlines -- firefighters of northern california are trying to stand their ground again the huge wildfire. the blazes about 100 miles north of san francisco and jumped a containment line and expanded to about 97 square miles. thousands of people have evacuated their homes. two dozen homes of been destroyed but fire crews are getting held today from lower temperatures and higher

i'm sue herera with breaking news on baxalta.t it has publicly received a highly conditional unsolicited proposal from shire for $30 billion, but we should note that the board also says that this is the same proposal that they received previously and rejected privately back on july 10th. baxalta's reaffirming its unanimous conclusion that shire's proposal undervalues the company significantly and a merger would be severely disruptive. it says it is not prepared to engage with shire. the merger presents a, quote, significant and real risk to value for holders. at that point the halt was $38.12. we will get you a quote on that as soon as we can see on the board. so baxalta unconditionally rejecting shire's bid for it at $30 billion. bill and kelly, back to you. >> yeah, looks like it's trading lower, $37.90 and change. it's strange. the traders look like they're waiting for something to happen. >> absolutely. >> rather than it trading. it is trading right now, baxalta. >>> meantime disney shares at an all time high. the company's e

baxalta is not cooperating and investors do not like what this means for shire. shire is a stock that another company wanted to buy and that deal fell apart because the united states changed rules on tax and version, so the question ever since then has been, what is shire going to do? shire's stock plunged when the audi transaction disappear but it has since rebounded. it has since rebounded to above that price but trading down this morning. it shows us that after $340 billion this year, more to come. stephanie: $340 billion and from goldman sachs, they said a few weeks ago they think the possibility for m&a in that space is endless. erik: number three. we will take you out to julie hyman. julie: i am on earnings watch again, media earnings in particular and entertainment to be more specific. disney reports after the bell that the shares have done. well this year. shares have rallied 30% of trading, if not at thing close to a record. interested to hear latest thoughts on is pain availability over the top services. we will also be looking about any kind of forecas

we know that ariad did reject an initial offer from baxalta.t inconceivable this deal could happen. they are fending off a $30 million attempt from shia. they are looking to replace one of the founders of the company. they are close to potentially naming a successor. they said they would do that by the end of the year. >> sounds like this is a defensive measure. >> potentially. bloomberg is reporting maybe a $2 billion deal. it's hard to say that would fend off a $30 billion one. >> thank you. let's bring back in art cashin. as we approach the final hour of trading here, how are you feeling now? >> as i said it was unlikely we would see margin calls. the interest on market on close orders is exceptionally light. that could change but it doesn't look like they are going to do much of anything. it feels like they almost want to glide to an unchanged close. the last hour can bring surprises. >> are you willing to call the close when you say unchanged? do you think we can get back to positive territory? >> i think the dow looks like it wants to flo

, and you still have an 18% gain if you own baxter and baxalta in the spin-off and congratulations to fave which knocked our socks off today with the decision to split it off into not one, not two, but three different companies always makes a ton of sense on their own. the remarkable ceo with the stand alone financial communications and data services company and a customized multi-channel communications management outfit and a printing services business, with the stock up 2.8% with the stroke of a pen. before this new configuration was announced r.l. donnelly did seem like a confusing mosaic of businesses. donnelly's got a hammer lock on the aspect of public company and dissemination and the multichannel management business can catch up on the desperate need of bricks and mortar retailer and that's the omni channel thing you keep hearing about, but the most exciting division will be the print services business which i think you can continue to consolidate in an industry that prints catalogs and periodicals and the print space has little to no growth, but there is averagel opportunity

the company went public for the offer this tuesday after baxalta rejected the approach. the number of jobless people in spain felt by an -- fell by an unexpected number in july. it pushes the unemployment rate to the lowest in years. it means unemployment is at pre-crisis levels. >> austerity politics. the politics are not increasing expenditure. if we compare ourselves with other countries, members of europe, we see how they don't >8e;ccccccccccccccccccccccccccch [captioning made possible by democracy now!] amy: from pacifica this is democracy now! president obama: today we are cleano announce america's power plant, two years in the making, and the most important step the net estates has ever taken. amy: president obama unveils a plan to slash carbon emissions from u.s. power plants but does

. >> pete talk to me about baxalta and the big bid. >> shire bid $30 billion.ompany that just got spun out of baxter at the beginning of july. an amazingly fast transition, trying to build their franchise pipeline. they love the pipeline, shire does and all the tax ramifications. is it going to be something they accept? it's so early. you wonder if baxalta will push back and look for more. >> car sales have been strong, we know that on the pace of 17 million for the big boys here. what's up with toyota? weaker sales. >> i think it's a comments from audi and bmw and comments from toyota, regarding guidance that is in china, what production is going to be pulling back, not seeing the demand they expected to see. overall things are good, for toyota motors, it's pulling back, i view it as an opportunity. but you have to be concerned about the chinese auto market. >> stef, aig, big beat. dividend boost, buy back? stock down 5%. >> that's because the earnings quality wasn't that good. they beat on market gains and derivatives. i think the underlying p and c business

bloomberg news has learned that baxalta is a target of a $30 billion takeover offer.hey're said to be looking to boost its oncology business. it's unclear how the acquisition would affect the pursuit. joe: the head of the company that owns ashley madison will step down. the stepdown of the c.e.o. comes after the break-in to the customer database that exposed personal information of 30 million members. alix: and the head of the minneapolis feds says central bank should not take steps based on recent market volatility. >> we should be telling a coherent story that we're not about what happened the last 10 days on wall street. we're about trying to shape inflation and employment in a year to two years, which is what our usual tools are. if we tell that story convincingly, then i think we can have the right effect, which is upward reflection on inflation expectations which i think is needed that the time. alix: he isn't a voting member of the open market committee. he is set to step down from his job next year. and those are your top headlines. joe: and now we go live to

shire says becks also --baxalta has declined to engage in substantive discussions over the new proposal. matt: and all cash deal to buy icc health care, representing a ipc's shareice of price yesterday. the man who has been overseeing george soros's fortune will leave to form his own and hedge fund. bessent will have one of the ofgest hedge fund start severed. he will continue to advise the soros family. the fortuneves, will be overseen by someone he put in place. a matt: manufacturing held back by and i in the dollar dampened demand in exports and falling oil prices, which have cut into energy industry investment spending. mark: the stocks plunged in greece, but investors say it could have been worse. athensdropped 45% on the stock exchange. the benchmark fell 16% on monday. limits on on -- buying and selling limited the damage. bank shares were pushed toward the downward trading limit yesterday, 30%. chairman bill rhodes said the bailout will not work if greek banks knew not bounce back. they have to capitalize their major banks quickly and they have problems. they are nonperforming.

barrier there it shire may have approached them before the deal -- before the ipo of bucks alta -- baxaltareality is that 20% holding is either going to be independent or it will help you jon: a deal to watch. still to come on the program, we preview standard charter's earnings and what you should be watching for the rest of the day. stan chart -- can they deliver? that is the biggest stunt gainer stocked and delivering the best profit since the financial crisis. back in two. ♪ jon: welcome back to bloomberg tv. i am jonathan ferro. that is almost it for this hour of bloomberg tv. we'll take you what we should be watching for the rest of the day. standard charter us out with earnings and it is the first set of numbers. the new ceo reports and in 20 minutes, we will get the answers. what are we expecting? stocks generally the best profit since 2007. not expecting that. >> standard chartered is a very different beast from stock gender and we're are looking at how that revenue has fallen and our concerns they are not making enough money anymore. we will be looking very closely at that and we

matt: some of the top stories we are following at this hour, baxalta looking to make itself -- according to people with knowledge of the matter, they're working with bankers to buy a us-based hematology oncology specialist valued at about $2 billion. the discussions are ongoing and no certainty a deal will be reached. it is not clear how any deals whyb would affect the pursuit, specially is a small size. hillary clinton's camp claims the former secretary of state has the inside track on claiming the democratic presidential nomination. her aides tell bloomberg she or he has commitments from more superdelegates, or 1/5 of what she needs. those are a couple of the top stories we are following at this hour. mark: coming up, an exclusive interview with u.s. defense secretary ashton carter. matt: he is visiting silicon valley. emily chang will be speaking to him in 30 minutes. ♪ mark: the bay bridge in san francisco. welcome back to "bloomberg market day." teslas elon musk is going back to his days at paypal to the electric carmakers first incentive offer. if you buy a tesla models after being

. -- oncea'ss 'scks all to -- wants baxalta portfolio. experiencerst hand in dealing with activism. >> when one looks of the tax code, it is clear that american-owned domiciled companies are at a severe this advantage. having a fair and competitive playing field is what it is all about. that has really been the strength of this country, one of the reasons for the dynamism of our economy over a long period of time. cost jobs, you say how many jobs did it cost allergan and how many jobs are you talking about in this country? bob: when one looks at the activity,ng pace of it is clear you can't say the only motivator is tax. but clearly, aviary big source of arbitrage is tax difference -- a very big source of arbitrage is tax difference. us, valent first approached the first bid from valiant was about $10 billion, going from $37 billion to $47 billion in the first bid. when i looked at the tax savings proposed by valiant, it was $500 million. you put a price-earnings multiple on that fairly modestly, you can come up with $9 billion. therefore

session in london as it became apparent that it is going to bid $30 billion in an all-stock offer for baxaltainitially plunged 10%, it's recovered some ground during the course of that. the bigger news by far for most europeans is the earnings that are coming through and they're notably more mixed today. if not on the earnings, perhaps on the commentary. credit agricole, a french bank saying it can't restructure and simplify the trading portion from the savings bank voting portion, it's kind of or contain. but people had hoped that might unlock shareholder value. it's not. they're down. other stocks with a negative bias, it's true to say that the italian, spanish and portuguese banks have let us down during the course of the session. spain is lower, italy lower. it may not be insignificant in that in catalan today, barcelona that region the spain, that actually last night, the catalan premiere declared an early regional election for september 27th. he's not saying this is going to be a referendum on independence from the rest of spain, but clearly the tensions are going to rise with madrid as

yesterday's, well, flawed though it may be, $30 million bid from shire from baxalta eclipsed the full last year. since we have deal after mega deal right now for the first half of 2015, the busiest on record, what can we expect? more of the same? well, let's bring in blair effron. >> thank you for having me. >> nice to have you. rare in my long career have i seen a period like this and it feels like it has momentum, but it brings up the thought are we at the blow off stage? >> it's a question we all ask. rare in my career with this much activity. the next few months strike us as continuing to be busy. you can tell by the nature of some of the dialogues out there but you have to step back and look at valuations. the average valuation in the m&a market today is 13 times ebita. as reminder in 2012, it was ten times. the last time we were at 13 times was 2007. the last time year to date 40 2007. i think most people in my community, are asking the same question you're asking -- what will change the environment to get us back to a more normalized period. >> back then a lot of activity was l

shire pharmaceuticals making a bid for baxalta and if the bid goes through it would makeshire a leadertreatment for rare diseases. regeneron pharmaceuticals raising its sales growth forecast for its drug to treat macular degeneration, shares up more than 80% over the past 52 weeks and the ibb is higher today, and it's about 25% so far this year. brian? >> well, it is becoming the new manufacturing hub of the southern united states, and increasingly it's the choice for both plane and car manufacturers as well as their suppliers who are all looking to build new plants. phil lebeau is in north charleston, south carolina. why south carolina? >> well, a lot of people will focus on the fact that this is a right-to-work state and for big companies like boeing or bmw or micheline or a number of other companies setting a plant here means you're not required to walk in the unions and to say are you going to organize. here at boeing which by the way three dream liners a month at the facility, they have 7,500 employees and not a single one is a member of the machinist union which represents most o