bristol-myers squibb is down. investors are saying this is a good deal between bristol-myers and celgene. >> and think it is interesting that it is not trading even close to the offer price which is 102. it is only trading up 55%. is this an apple problem or a china problem? it is a little bit of both. remember that the smartphone market has been challenged. out, apple is a luxury good in china. we also have to consider there are geopolitical issues at play. apple is a large american brand. the chinese consumers are starting to feel the concerns around the trade war. perhaps reacting against apple to some degree. i think that is part of the issue. .e will hearwe more i think that is definitely a factor. is this good news for google? are people switching to android phones? >> i'm not sure it's a win for google because it is a broader smartphone market issue, not just apple. there is the potential that google and android could grab some share back from apple. the vast, android owns majority of smartphone market shar

we get one share of bristol-myers.s no longer the case. >> it's 102.43. >> put your m&a hat on. you know what we had in the month of december? >> nothing. >> big, big, big. >> small, small, small. people don't realize i was being facetious. what else is in the pipe >> we start the year with potentially what will be one of the biggest deals of the year. >> we have been waiting for the consolidation. we have had more losers in pharma than i can shake a stick at. >> your point is being heard because gilliad is up 3.8%. bio j biogen is up. you are going to be covering a lot of this next week at the jp morgan conference which everybody goes to and is always a place where companies can also talk to each other and discuss the possibilities of further alliances, linkages, merges, takeovers and the like. >> i like that. have you noticed that f.a.a.n . f.a.a.n.g. -- it's not the aa. i come back to the idea, where are the big sellers? like people are waiting for a big one, i recommend body guard. we are seeing it knocked down. >>

alix: bristol-myers buying celgene, it's in cash and it's also in stock. they are also talking about the 2015, $4.20 onr the interested earnings. david: looks like celgene is up 43%. that is of course a biopharmaceutical company working on things like cancer and immunotherapy. interesting, there was a big divergence between the app with the seller saying -- look, we just had this insane and it'sve in december interesting that this happened right after the new year despite a big selloff. everyone comes in saying that health care is the place to be, with consolidation being one way to go. that is definitely the case. bristol-myers squibb is buying celgene. transactionhe cash was one share the $50 in cash. will definitely be taking a look at this as we go. work in the premarket, looks at care having some reservation about the price grabs. the markets, though, the negative apple sentiment is outweighing pretty much anything. [no audio] deal with one&a dollar-yen being the least of it, filled by 1%. the 10 year yield selling in the hit pretty, getting hard, the

it is about bristol-myers and celgene, not about somebody else having interest in bristol-myers or anynothing that i've been aware of that took place. >> thank you for saying that, david. because there is a lot of people who think, wait a second, now that bristol is down so low, pfizer will buy them there were multiple buyers of celgene. it is all phony. your reporting puts the end to this notion that what you're going to see is bristol being bought for 60 by pfizer. i want to cut that stuff out we're back doing m&a and thank you for telling the truth because the number of lies i got this weekend were extraordinary. it is almost like if cody parkay were to hit the uprights twice and -- oh, sorry, that actually did happen >> certainly the jpmorgan health care conference is one of most influential conferences we get all year long. we're glad to have jim there today. the other news is on china and u.s. trade talks in beijing. and then the commerce secretary wilbur ross talking about that apple warning from last week and whether or not it was truly due to conditions in china take a listen

may be bristol-myers squibb holders are just a bit more nervous.e getting a lot with this deal. squibbbristol-myers investor perspective, they are getting a handsome cash flow over the next five years. celgene is a moneymaking machine. you look at it as a purely financial deal for bristol. celgene shareholders are getting a way to get out of their stock. the stock has been punished over the last 18 months. if you look at where the shares are trading, there is a lot of hate selling going on. it was below what we thought was fair value for. the share prices are being hit hard today. the celgene price trading well below the offer price. why? >> there's a bit of hesitance as to whether bristol shareholders would block this deal/ perspective,ials asr will kick in if this deal there might be some worries in the market. guy: many of the asset celgene has have been acquired recently. is that going to make it harder for bristol to incorporate these assets? some of these assets have been bought by celgene within the last 18 months. >> that is a lesser part o

bristol-myers will hold 69%.runway carcinogens by 2022. >> you're right, mike, 150 the high -- what did you say, 149. >> i saw the closing price, 146 in early october >> 146 and now all the way -- back in '12, 2012, it was $20. so it went from $20 to $146. and back to the mid-60s where now it's being acquired. >> i would also point out that bristol-myers is saying the transaction is not subject to funding positions. they're going to be funding the cash portion with cash on hand >> and it's one of those drug centers refract forms of cancer. it cures people, essentially it's a really powerful drug. and a life-changing drug for a lot of people. >> you don't think of that. >> really, the group getting cut down, gilead bid up a dollar on this type of news. the idea that certainly the more mature bio-teches with general cash flow, but maybe a limited amount of products >>> i was just going to say, the ceo is here, and the news just hit coming back from break what is your expectation looking at this? >> yeah, this just

i've got one and what can bristol-myers do? i'll give you my take. all your calls on the lightning round. so stick with cramer [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today. >>> so you're worried about a serious worldwide economic slowdown, something that's more apparent by the day, what stock can still work in that environment? you won't secular growth stories that keep on working health care, consider amn health care service, which is a managed service provider, that provides hospital and workforce and staffing solutions basically, handle the business side so doctors can focus on treating patients. in an environment like this one, with high labor costs, health care providers need staffing services more

a premium greater then fifty percent above its closing price at the closing bell yesterday and bristol myers squibb plans to take sixty nine percent stake in the merged enterprise the new partners say they will hold the patents and profits from a combined total of at least nine drugs which produce more than one billion dollars in annual revenue on that point bristol myers c.e.o. giovanni kapoor e o has hyped six expected new term product launches from the new company markets seem not to be buying it as bristol myers stock fell more than twelve.

shares of celgene soared by 20% while bristol myers squibb went in the other direction dropping 13%. the focus of the combined company will be cancer. treatmen but as frank holland reports that's not the only reason for the tie-up. >> s bristol myersibb is bulging up, the acquisition will create a dominant pharmaceutical company with a focus on cancer treatments. but both compaes face challenges. and that may have been the real driver of this deal. >> i don't see this as really a -- a deal that is driven by enthusiasm, excitement on either end. i think it's reallympwo mature ies with, you know, consolidation benefits. they have a lot of r & d salesforce getting eliminhaed. that'ss driving the deal. >> the companies say the deal will create $2.5 billion worth of savings by 2022 and increase rusts profitsly roughly who% next fiscal year. these savings come as bristol suffers set bax in development d of newgs. it's facing competition from merck. celgene will lose patent protection for its best selling drug by 2022. celgene shareholder will receive bristol myers squibb stock and cash givi

a premium greater then fifty percent above its closing price at the closing bell yesterday and bristol myers squibb plans to take sixty nine percent stake in the merged enterprise the new partners say they will hold the patents and profits from a combined total of at least nine drugs which produce more than one billion dollars in annual revenue on that point bristol myers c.e.o. giovanni kapoor e o has hyped six expected new term product launches from the new company market seem not to be buying it as bristol myers stock fell more than twelve percent on the news trading around forty five dollars per share in new york while celgene stock price increased by more than twenty seven percent but look at that they're going from around sixty six dollars to almost eighty four dollars per share up nineteen bucks on that news before backing off a little down to about eighty two dollars just moments ago.

at these levels the darn thing was too cheap for bristol-myers not to buy it.o cheap because biotech had fallen out of favor with the wall street fashion show bristol-myers doesn't care about the fashion show it cares about earnings and new drugs in the pipeline. celgene has both, which is why this deal will be so beneficial to bristol-myers shareholders. we know from the big bank conference calls that there are a lots more deals in the pipe. again, that's because the stocks got too mutilated. they're so cheap that opportunistic buyers would have to be crazy not to pounce. deals that were simply unworkable because of price four months ago are now being done with alacritalacrity i bet this merger mania is just getting started. stick with cramer. people tell me all the time i have the craziest job, the riskiest job. the consequences underwater can escalate quickly. the next thing i know, she swam off with the camera. it's like, hey, thats mine! i want to keep doing what i love. that's the retirement plan. with my annuity i know there's a guarantee. annuities can

the latest bigger merger in the field of health care leads our global report today is drug giant bristol myers squibb move to acquire a biotech firm sell gen for a price of seventy four billion dollars the deal values stock at a premium greater then fifty percent above its closing price at the closing bell yesterday and bristol myers squibb plans to take sixty nine percent stake in the merged enterprise the new partners say they will hold the patents and profits from a combined total of at least nine drugs which produce more than one billion dollars in annual revenue on that point bristol myers c.e.o. giovanni kapoor e o has hyped six expected new term product launches from the new company markets seem not to be buying it as bristol myers stock fell more than twelve percent on the news trading around forty five dollars per share in new york while celgene stock price increased by more than twenty seven percent but look at that they're going from around sixty six dollars to almost eighty four dollars per share up nineteen bucks on that news before backing off a little down to about eighty two do

both firms have been facing tough times, with bristol—myers's shares down 15% last year and celgene'se models from its stores in germany over a patent dispute with chip giant qualcomm. a court ruling in munich on 20 decemberfound apple had infringed patents on power—saving technology. the german case is qualcomm's third attempt at blocking the sale of iphones. the california—based chip maker has made patent infringement claims against apple in the us and china already. that's it for the business briefing this hour, but before we go, up next, newsbriefing. we'll take you through ther stories making headlines in the global news media today. police believe members of organised criminal gangs are getting jobs in prisons, so they can smuggle drugs and other contra band to inmates. it comes after an "x—ray" body scanner was installed at leeds prison. the prisons minister, rory stewart, says he'll quit if levels of violence don't come down by august. here's our home affairs correspondent, danny shaw. stand up on those marks. spin around and face me. just place one hand on to that. using x-ra

you see trough valuations in bristol myers. i know pfizer trades more expensive than the rest of the space but it's the best out there. for my money pfizer works. >> mel introduced this segment by saying a bright spot upon a crappy day >> she didn't say crappy. >> i'm saying crappy you know what happened when you take one piece of crap and another and put them together. you have a bigger piece of crap. the celgene still down 37% from the highs. two companies really struggling. >> biotech has been trending downside. >> it's for the a broit spot if you see acquisitions out there. >> you see the names out there that do have growth. >> single digit pe names. >> yes that still have growth and throw off incredible amounts of cash. knows are the names -- with the pipeline, knows are the names that are going to actually be very, very attractive. >> they were just all underappreciated. >> i put them together. >> let me tell you something, biotech right now is got -- we can split them up. biotech has gotten cheap we see the single digits

this let's talk about bristol-myers deal.t to start with a headline to a analyst report from bank of america. they were talking about bristol-myers just minutes before this announcement. question got to us feel sorry for the -- >> you have got to feel sorry for the guy. let's not get too carried away. people are excited going into the health care conference next which is typically a kick in all .4 many deals in the sector. volatility in the market, the trade war, and these worries do persist. think this won't be the best year for megadeals and that may yet be true. the celgene look at share price, yes, it is down. sorry, i mean bristol-myers. not rising as much as you might think. some cash, getting alongside is trading where you would think. it is not as high as the offer price right now. last year was not a great year for either of these companies, by the way. both their shares were hit quite hard. >> am wondering what the regulatory pressures will be like. nancy pelosi was talking about high drug prices. how much pressure

why did the market hate this so much from bristol-myers squibb perspective? was such a surprise. nobody saw the deal coming. celgene has been a toxic name and biotech for the past several years after a series of research thatities and some worries it might face competition by going off patent. iswhen you say toxic name, it deep problems or just underperforming? >> there were some real problems in that they had unenforced errors. they had a drug that could have been improved by now if they had run the program effectively. it got denied because of -- by the fda because they had not provided enough data. the kind of thing that should not happen for a company of that size and stature. when you couple that with other errors, people were starting to doubt management. what is bristol-myers squibb seeing? >> they are seeing the best selling cancer drug in the world. it will continue to grow going forward. the swing factor is when that revenue starts to decline. they are getting incredible cash flows at a discount because of the management issues. then a pipeline of n

arlene >> caller: hi, jim i wanted to know what you thought about avv. >> they have to do what bristol myers because they have too much money in one drug i will say this, it's a well run company. so is bristol, but they need to do a deal. i bet you we talk about that next week. i'm going out to san francisco for the jpmorgan conference. let's go to mike in the illini mike, mike, mike >> caller: hey, jim. >> huh >> caller: go bears! >> go bears. >> huh >> caller: ericson >> it should be kicking butt and they're not. they should be the big beneficiary of the chinese turmoil, huawei, but they're not. that's because they're not that good of a company. a lot of judgment. and that is the end of the lightning round. >> the lightened round is sponsored by td ameritrade >>> monday, kick off the trading day with "squawk on the street." live from post nine at the nyse. >> this is the greatest -- this is like 42 different things. >> it is a lot of things going on here. >> somehow, it's regarded as being a nonevent what else do you take with you every second >> it all starts at 9:00 a.m. eastern. pattern

let's do final trades. >> bristol-myers we like bristol-myers.he market didn't like their acquisition. they are the leader in immuno and oncology we own it with cover calls around it as well. >> thank you thanks for being here. >> t-mobile also participating in the 5g. >> alumina, back to where it was when they reported a very good court and good outlook it's a compelling opportunity. >> t-mobile. you own that >> a little bit. i'm more interested in a company call tigo. milicom is owned by a swedish company. going to be merged down 7 today you have to buy it >> pfizer got downgraded it's wrong they've got a great pipeline >> great seeing you. >> thank you for having me "the exchange" with kelly starts now. >>> thank you. welcome to "the exchange." i'm kelly evans. stock picking is back. some big names up on big beats today. we'll tell you about one cautionary sign still emerging from all of these earnings some trade talk reality. we'll talk to one of the president's top chinese officials. and unconventional mortgages are making a return. should w

major acquisition in by tej bristol-myers squibb acquiring celgene, for 74 billion dollars.ure brought on by apple. apple shocking the stock market tech giant slashing sales guidance the first time more than 15 years apple shares down 8% in premarket trading about where they've been all morning as we get an hour half away from the opening bell. the chief of staff of apple tim cook says weakness in china is to blame stock sliding ahead of the open but isn't this weakness that we already knew about? we will weigh in on that warning taking toll on big technology stocks, and broad markets we talked about this yesterday one of the major reasons the market has sold off, in the last several months is technology stocks got way too expensive. we have losses on netflix facebook microsoft, alphabet amazon, all those selling pressure seems easing among names futures losses across the board apple shaving 90 points off dow at open the dow futures are now down only 290 points, a choppy session yesterday the major market gauges posted slight gains for the first trading day of the year, i wa

revenue on that point bristol myers c.e.o. giovanni for e o. has hyped six expected new term product launches from the new company markets seem not to be buying it as bristol myers stock fell more than twelve percent on the news trading around forty five dollars per share in new york while celgene stock price increased by more than twenty seven percent but look at that they're going from around sixty six dollars to almost eighty four dollars per share up one thousand bucks on that news before backing off a little down to about eighty two dollars just moments ago and turning to tech apple has cut their revenue projections citing reduced demand in china for their signature product the i phone china is apple's third largest market and accounts for about a quarter of the company's revenues apple c.e.o. tim cook said his company had been surprised by quote the magnitude of the economic diesel or is ation particularly in greater china referring to china taiwan and hong kong mr cook also cited rising trade tensions with the united states as a contribu

try to get at the future of pharma, why do you think shareholders are so upset >> so the reason bristol-myers likes this deal, it offers them two things first, they're very focused on oncology, lung cancer, largest drug, and what celgene brings is diversification into the very adjacent area of hematology. so bristol's oncology, celgene hematology and they fit together quite well very good overlap in the logic and organizations. they like it for that reason also diversify them to a set of other issues the biggest problem for bristol shareholders was the neither patent decision on revlemade 40% of evaluation difference makes the shareholders of bristol very, very nervous they specifically did not buy celgene for that very reason. >> is there a buyer for gilead is there somebody who can buy an $85 billion company in today's current market rate? it is trading higher as if perhaps this deal makes it more likely it will be taken over as well. >> yeah, i find that hard. there is no good -- no good match for them it will have to be like a pure financial transaction. and i guess most boards and pharma

a deal of the new year this comes, of course, after bristol-myers squibb announced last week it was buying-gene after a look at how the companies reacted, loxo oncooling up a whopping 66%. eli lily, little change. now, keeping in the pharma space, the chief executive of novartis says the company will focus on developing core innovative medicines after spinning off eye care company. he made the comments in an interview with jim cramer. >> my conviction we need to focus the company and focus the capital. there is so much great science there is so much possibilities in cell and gene therapies in our core pipeline. we can't use our capital across all of the different areas we're in what we're doing with alcon is a spin, the tax neutral spin, to our shareholders say, shareholder, look, you get to own alcon, which is a leading medical devices company, leading in its space, great company with a great outlook. you have the opportunity now to own that great leading company and own novartis, which is a compelling thing >> it's really important because that is science. you're willing to lose the surg

bristol-myers squibb sank around 14%.eredcyberpolice have baidu and sohu to suspend services their news for a week. authorities clicked off a campaign to eradicate so-called vulgar information on online media including messaging services and live streaming platforms. investigators haven't explained why they were bun anybodied or needed for them to resume operations. we have.s what on the way down. hang seng, looking at the currency, 6.85 for the offshore. moves, a look at those luxury goods companies connected with china feeling it. taifook on the way up. a pull back here. 1.8%.onite, down let's have look at some others. downgrade from morgan stanley yesterday. 8.2%. losses at levels not seep since may 2017. petrochina, hold. mgmchina, what we have there is upgrade that. to sign up a deal with nokia. with nokia. >> we're 90 minutes into the trading session in tokyo. really, not a good welcome back traders in tokyo here today. thanks to that surge in the yen. seeing the nikkei 225 down 3.74%. the brings us back to lowest l

differential between what celgene is worth based on the 50 bucks share in cash and the share of bristol-myers>> the reason for that is because of this continued belief or concern -- not belief, concern that perhaps bristol-myers would get some sort of a bid. frankly i've heard nothing that indicates that's true. >> nothing >> again there i've heard nothing that indicates the presence of a significant activist in the stock. so that is why you're looking at a very substantial spread. interesting the company chose to come out with this very long deck this morning in which they share their financial targets with the deal. remember they talked about it being 40% right off the bat but going to some level of detail as well about the various therapies that they have at bristol-myers and at celgene. >> i think the deal is a good one. i believe in the celgene pipeline i like the cvr although i don't trust those drugs. that's okay. that spread is daunting. i'd buy bristol. i'll tell you why. that was a major decision to pull on this small non-cell lung cancer the stock is barely down what does that tell

i don't like the bristol-myers shares take the money and run >> altria? i'm losing a lot >> yes, you are. >> better times ahead? >> no. i'm concerned you'll lose more i don't like the investment in juul i rather you in another name >> john, albermrarle long island real estate police i understand >> i still own albermarle. came down with the market. has not bounced. so you have a lot of v shape recovery in other industrial-like names that are similar and in this one you have no bounce. maybe it's a late bloomer. maybe you getit. it doesn't matter to me. i own this as a long term investment electric cars are inevitable and will become the standard and this is one company that will refine the right kind of lithium you need i'm not trading it for five points in either direction >> liz, hyg, looks like it topped >> so hyg it could go up further if we have big rallies in the market it will follow a big rally up. we're much more constructive on investment grade than high yield because rates continue to rise slightly this year and that transition from qe to q 26r

yesterday's move, you have some interesting thoughts that i didn't realize so bristol-myers at 45 was takeover >> absolutely. >> and it still might be you think something could happen between now and when this deal closes >> absolutely. if you look at the deal between bristol and celgene. bristol has been looking at celgene for the past two years given its issues and bristol being one of the leaders in the immuno-oncology space, we believe others have been looking at bristol as well. given the pullback, there's a narrow window for buyers to come back before how old shareholdern this deal. so we believe 40 to 45 is a nice support level for bristol. >> immuno-oncology, we'll call it io. that's a crowded space bristol was too focused on that, if they have failures with their important pipeline they could because so many other people are working on the same thing. they needed to -- that was their rational for going after celgene? to diversify into other areas? >> absolutely. if you pull up the two-year chart on bristol, you will see a lot of volatility. those are immuno-oncology trials th

we'll hear about the ceo and bristol-myers ceo on the acquisition of cell gene or the one awarded by the people? uh... correct! you don't have to choose, 'cause, uh... oh! (vo) switch to the network awarded by rootmetrics and j.d. power. buy the latest galaxy phones, get galaxy s9 free. i am a techie dad.n. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome. >>> tumultuous times ahead for altria invested in juul vivian, great to see you a key thesis is you believe this investment of juul is a right one but you think this will incentivize altria to accelerate the declines they're already seeing i understand the declines have been going on for a very long time, but why are they incentivized now to see that go faster >> certainly, so as a function of the deal, juul and altria have entered into a client service agreement. essentially putting altria's cigarette and broader tobacco sale

bristol-myers squibb buying drugmaker celgene. combined companies have nine products with more than a billion dollars in annual sales and significant potential for growth. is this just the beginning of many blockbuster deals, not just in the pharmaceutical area for this year? i want to bring in ben share cio be ben phillips. ben, we've been seeing smaller deals and some deals in the biotech space. it feels like though this could be the year we see even more megadeals for a variety of reasons. what is your assessment? >> yeah, i think that's right. particularly health care and pharma, we're expecting more deals there, given where valuations are in the space. these drug companies have been beaten up over the past 12 months or so, on expectation for bad policy that will impact earnings, to drug pricing policy. we don't see that materializing or impacting these companies. we think valuations are attractive. that makes those acquirers on the hunt for targets like this. charles: is one of the things driving this, at least what i've seen

we had the merger of course with bristol-myers squibb. a new cfo at insite.n conviction buy list at goldman. laggards, quickly on the other side of merger of celgene, bristol-myers squibb. apple supplier getting hurt in the apple downgrade. we have allergan getting their price target cut after raising drug prices. you got that, liz? liz: i got it, girlfriend. thank you so much, susan li. markets are charging higher, with let's call it three minutes to go. but the russell 2000 firmly in bear market territory. volatility continues in 2019. bad times are not over yet as charlie gasparino just said. where should you put your money. let us bring in the "countdown" closer at this hour. jamie cox and andy brenner. jamie, managing partner at harris financial and andy is net alliance as top guy for fixed income. it is clear, andy, james powell suddenly saying i'm out for now on rate hikes? >> clearly threw in the towel, liz. he is not only out on rate hikes, do what is necessary and possibly reducing the balance sheet runoff. he is well aware the markets sending him.

. >> this makes you wonder if the bristol-myers deal is going to speed up the acquisition process.s about a deal feels like they need to get out and ramp things up jim cramer is sitting down with the ceos of bristol-myers and celgen >> he was watching then, huh he wasn't in chicago >> no. >>> investors had this weekend to digest friday's big market moves. now, to discuss what could be ahead, drew mattis, chief market strategist at metlife investment management, brian bell ski, chief market strategist at bmo capital markets. before we get to actual equity predictions and how we're feeling now, brian, let me just talk about this jobs report and how much more in terms of the participation rate is possible because that's key in holding down inflationary expectations you can't -- i don't know anyone who would have predicted -- look at what mark zandy said two years ago, we're not going to basically add jobs anymore because we're at full employment somehow 312,000 people were somewhere, some came out of the participation rate how much higher could we go on the participation rate >> it sh

will get one bristol-myers share, a nearly 54% premium. we have celgene at $81.65. moving up by 15 bucks. chris to i want to get our traders in right now because we are now six minutes off the top of the hour here, 54 minutes before the closing bell rings. do you blame the apple warning yesterday for triggering all of this? >> i tell you what, yeah, because of the nature of the modern market, yes, the bad news in apple, the lousy ism number which came on top of lousy survey numbers from all the regionals, these all conspire in a zombie-like market. ever watch "the walking dead"? somebody kicks over a can, here come the zombies. that's the market now. somebody has a little bad news, here comes 80 algorithms in a shot and the first one kicks off the second and the second one kicks off the third one. so on down the line. that's the nature of the beast now. all this exists in a world where the fed took out all the liquidity and continue to take out $50 billion of liquidity from the economy every month. $600 billion a year. not $5 billion for a

bristol-myers buying celgene a bit of a bounce today for bristol-myers. >> eight times earnings. >> payingthis year, eight times next year. the ceo did comment to the "journal," not buying it for revlimid, that's good, because that has a cliff buying it for the other cancer drugs they think they can establish through celgene. other people saying this is a sign of weakness on both fronts. >> i won't disagree with that. celgene, why was celgene where it was because it was doing well? no, it was a recognition of the cliff. bristol is historically close to the vest, but they're getting their head beaten in by merck. at the same time merck does not pound its chest. merck is not that kind of company. nor does merck want to give false hope to people who have cancer, which i think is right, having lost my mom to cancer i didn't want false hope nobody should get false hope frazier gets that. i think that this is a good sign david, we have to talk transports for a second. totally overlooked yesterday >> okay. >> delta reported a number that wasn't that bad. >> wasn't that bad, though it did take the

bristol-myer squib is buying rival cell jean in a $74 billion cash and stock deal.ned company will have nine products with more than $1 billion in annual sales. celgene would receive 1% of britt to mire plus, $50 in cash for each share they own. they would own about 69% of the company. shares of bristol fell about 13% yesterday on the news while >>> airline stocks took a beating yesterday after delta trimmed its revenue expectations for the fourth quarter. the airliner announced that fourth quarter revenue will rise about 7%. that's a half point lower than expected. the air carrier said sales of higher-priced tickets sold closer to departure less than anticipated in late december. shares of delta sank about 9%. it's worse the one-day showing since 2012. the cofounder and long time head of southwest airlines herb kelleher has died. he revolutionized the industry by helping to create the low-fare carrier that made air travel more accessible to passengers. he was a lawyer in san antonio when a client came to him in the late 1960s with the idea for a low-fare airline th

onekholders get bristol-myers squibb share and $50 cash for each share.gest pharmacy deal on record. squibb increasing around 14%. stop selling his stock as the company's share price tumbled 20% last year. sharespledged to unload as part of a pledge to give away almost all of his fortune. since that announcement, he has sold 30 million shares worth $5.6 billion. --ex trapping a plan dropping a plan to fly to cuba. the trump administration has imposed new restrictions on u.s. companies doing business there. said it was having problems finding local partners and getting airport ground services. yvonne: we are still watching stocks after the apple troubles. these luxury makers worried about what it means when it comes to demand. pradaite down, easing off earlier losses. let's look at the board. beijing capital international .irport plunging 17% earlier how a newng about plan for another airport could mean a loss in traffic. , a third day of losses on concerns of inventory. jeffries saying the market is overly concerned about that issue. it has fallen already

the guys that win are bristol-myers. >> >> so more leverage to the smaller bio tech. >> so bristol on the announcement on that deal -- >> not so much. >> that wouldn't be a reason though for you to be invested in bio tech, the takeout. >> if you believe they're not expensive as they are which is what you believe. >> plus you want the kicker. >> right. >> for more on the biggest headlines, head to cnbc.com. i'm melissa lee, you're watching "fast money. here's what sells coming up on "fast." >> under no circumstance are you allowed to take off your blindfold. >> actually, can you take off your blindfold for this? that's better. because netflix shares are surging and now could be your best chance to buy the stock we'll explain. >>> it's been a wild ride since the market highs back in september. but the chart master says there are three stocks you can own no matter what happens next e ad "e'll give us the names and thtre,fast money" returns right after this break a luxury car to create more teched out than silicon valley? with a cockpit fit for aspaceship. hang on. radar that senses thing

celgenek we got a huge -bristol-myers news.company like celgene is billion,en out for $74 some of these other companies we've always thought of as a choirs -- as a choir -- as acquirers, all eyes are going to be on the large biotech stocks at jpmorgan. gilead, biogen, and all of your smaller biotechs as well. guy: a lot of this seems to focus on oncology. are there other areas of the market being left behind as a result of that, potentially creating opportunities? reporter: i think that is a really interesting point, something that the eli lilly ceo brought up on the call. they are going to be looking for opportunities in neuroscience and diabetes, where it's always been strong. that said, what the ceo mentioned is all the biotech's coming out of cambridge, a lot of them are focused on oncology. there's just more opportunities in the space, which is why we might be seeing more of ecology -- more oncology deals. vonnie: back to bloomberg's rebecca spalding. tomorrow, don't miss our exclusive interview with eli lilly's ceo from t

. ♪ >> a megamerger on the second day of the year, bristol-myers buying -- for $74 billion in cash andes sense? the market right now seems to be skeptical. and it'stely, interesting because this deal came literally minutes after there was a call from bank of america, saying it was unlikely that mega pharma deals would happen. drugest-selling cancer seems to be one of the big draws here, and a few other companies are rising in the market on the talk that they could be emerging in the sector. there was a lot of skepticism at the end of last year on whether big m&a is going to continue, and dealmakers seem scared about that, but this is interesting. second day of the year, a mega-farm a deal. >> college football won't go dark on new year's day, narrowly of earning of old a blackout of college football games, agreeing to a multiyear agreement. what was the deal that got made? was today ande they managed to wrap it up yesterday. i don't think there was any doubt they would do a deal. they still need each other, even with everything going on and all the angst about falling ratings for sports

taylor: we've seen a lot of m&a this year, bristol-myers squibb brought -- bought celgene.ow much pressure do you feel is the conscious needs of around you? and tokey is to innovate be able to deliver highly innovative missions through r&d, that's our strategy. in the areas we have selected, we selected for their of the areas on which we want to concentrate r&d, we feel that we are highly competitive, we have the know-how in the knowledge and the best team, we have the financial resource. that is our strategy to be able to compete. vonnie: the president and ceo to acadia pharmaceuticals speaking with taylor riggs. this is bloomberg. ♪ vonnie: this is "bloomberg markets," on vonnie quinn. the white house is announcing nelly lange withdrew from consideration for a seat on the central bank's board of governors. she dropped out of her own accord was not pressured by the white house. let's get some context from jeanna smialek. this is a high-powered economist women, there aren't too many of those that could be on the fed order of governors in her name was put forward and she has

a few days ago, we had bristol-myers squibb buying another for $74 billion. that was a 53% premium.emiums nothing new in the biotech space. those deals were both cancer related. you can see a lot of cancer makers are higher today on the prospect of more deals to come. a lot of companies have cash and looking to make strategic acquisitions like this. the eli lilly ceo saying they are looking to do more deals this year. he is focused on rebuilding the pipeline so he said they could be looking to do more cancer deals but also neuroscience and immunology. there could be a lot more to come from eli lilly as well as more probably. vonnie: thank you very much. it is time for the latest bloomberg business flash. couldars of wildfires lead pg&e to file for bankruptcy protection. shares are plunging today. bloomberg has learned the company is considering bankruptcy because of billions of dollars in liability may face from wildfires their equipment may have started. the legislature to come up with a rescue package. they are preparing for liquidation that could cost thousands of jobs. plan to b

. >> who thought that bristol-myers could -- >> you see this transformational deal, others talk aboutwe know they moved more firmly into having a more significant oncology franchise. >> i just find that when you take these giant companies like lily, so lily did a bunch of quarters that are like what happened with pfizer and then they spun off alonco. that is okay $11 billion company, health care, veterinary medicine. and the stock goes to 115. i'm saying you can't write off these drug companies when the stocks are down a lot. that the health care business at 3m is what turned it around. you get 3m going back up we had jim paulson on before me, on "squawk box" and he was saying things are going to be not so great this year i'm saying that's why stocks went down. what was that? >> my highlighter. it is not working. >> i got some highlighters >> we have allergen, they spent $5 billion on acquisitions they wrote off. i'm 95, and one of my 72 dermatologists said, jim, do you mind looking like a pelican for two weeks? that's what happens if you use it i said i just come back from -- pelican

yesterday with the ceo of bristol-myers and celgene.nd to them, more constructive on the deal in some ways than we did in our initial conversations about it but the investors don't seem particularly constructive yet. if i told you it was going to be down more than apple this year, so far, and it is, at a 7.5% loss, interesting. they just did a deal they didn't want on earnings >> well, look, they're buying celgene at six times earnings. this is a company that if you wanted to, you take out a lot of costs. synergy is real. i believe there are five drugs that will replace revlimid, revlimid is a lot of what celgene is some say it is all that celgene is some don't like the doubling down on oncology there are too many companies focused on the needs of oncology instead of unmet needs nobody is focusing on. i think the combination is going to work. i love the word that you said that i was being kind. i'm not comfortable with being kind but i do believe that you have to be, let's say benevolent toward this combination. >> jim, as we're talking

third theme, big pharma is making huge bets on anti-cancer drug you have bristol-myers and i think bristolaxosmithkline, for ovarian cancer and put it all together, and i think there are a ton of biotechs that might be worth speculating on here. anything with a credible cancer immunotherapy pipeline might be a play fourth digitation. you've heard that many times on the show, is relentless. i think we're still in the earl innings here given by how many companies wins we're seeing in all sorts of industries. that's the message we got from ibm which is doing powerful work in health care when you think digitation, i urge you to think of companies like vmware which is down off this rotation and cisco, which is cheap enough that it wasn't part of the sell-off not a new one, but anything related to housing or autos should be avoided. let's say you should avoid those stocks like the plague these are no growth industries globally there is nothing good happening here unless we have a great spring selling season which right now i'm not so sure about. the estimates come down for any company. from 3m w

good level to start accumulating last week at the jp morgan conference i listened to the ceo of bristol-myers when they report on thursday i expect he'll talk about how adamant this deal is for the business earnings. i think after thursday people are going to embrace this deal we've got dueling railroad reports on thursday, you know on the pacific and norfolk southern csx had a good number yesterday and it was initially panned. union pacific has a new chief operating officer who is the disciple of the late hunter harrison i would be a buyer of any dip. almost every line item was good. you know i have been a huge, huge fan of mccormick the spice company. i bet we'll hear great things particularly from frank's hot sauce division if you see this label in the supermarket, snap it up. let me know. here's a wild one, freeport, cotton and gold miner. they have been perky of late my friend stephanie link was on halftime with me and she was talking about it it's interesting because copper has been a real dog. we have to find out what's going on here. i can't figure it out. but i like the way it trades

. >> a megamerger on the second day of the year, bristol-myers agreeing to buy celgene for $74 billion and stock. why does this deal makes sense? the market right now seems to be skeptical. >> absolutely, and it's interesting because this deal came literally minutes after there was an analyst call from bank of america, saying it was unlikely that mega pharma deals would happen. we definitely get get the sense -- definitely get the sense that it is all about the cancer drugs. the best-selling cancer drug seems to be one of the big draws here, and a few of the other biopharma companies are rising in the market on the talk that more deals could be emerging in the sector. there was a lot of skepticism at the end of last year on whether big m&a is going to continue, and dealmakers seemed a little scared about that, but this is interesting. second day of the year you have a mega pharma deal. >> college football won't go dark now on new year's day. as the denver rising -- disney and verizon narrowly avoiding a blackout of college football games, agreeing to a multiyear agreement. why did it g

thursday, the major airlines release numbers along with bristol myers, starbucks and intel. on friday, colgate palmolive and d.r. horton. is there one name that might have the most power to move the market? to the floor show. our traders at the new york stock exchange and the cme group. john, is there a particular name? we know some names tend to be sort of a benchmark for the rest of the markets. anything you see there that could really move one way or another? >> you are absolutely right. historically over time, earnings season helps on markets and kind of brings rejuvenation back into the overall market activity. i think we are in such a unique period right now. let's go back two weeks ago, when apple warned about tariffs and trade relations and china and how that's going to affect everybody. they were the first major company to come out and say it openly. all these companies have been talking about it in the boardroom but never openly. i think now that everyone knows about the big elephant in the room, whatever large company we hear from in the earnings season coming up,