what does it mean for celgene? in my opinion i think you buy this weakness.uggesting somebody else comes in to scoop them up, but at this price the stock is undervalued. >> reportedly the fifth largest shareholder and then starboard, the activist who wants seats on the board of bristol unhappy with the deal. >> well, if anything, to me bristol seems the place you could maybe take a nibble. we'll let the options actions guys deal with that. this is a stock that has not participated in any snapback of the markets. it was a deal that seemed to be made out of not desperation but not out of strength. there's a lot of overlook, there's some expiring pipelines in both companies. it's like let's get together and eliminate some cost overlinks. >> i think the opportunity is still celgene. bristol is masquerading as a pharma company that's actually a big biotech. >> you've got appen activist th you can invest alongside >> i look at it if the whole deal completely falls through, i think celgene is way cheap. >> it already had that huge pop. it popped 40% off the recent l

celgene shares are down almost 8% now.r star board out with a statement that it is opposing a tie up with bristol-myers squibb , just hours after the normally quiet wellington publicly said it is opposing the merger. deveau coversott investing and joins us now. bny buys celgene in a massive deal. then we see five directors nominated to the board. yesterday, wellington out in opposition, and this morning starboard. but they are not opposing for the same reasons, are they? reporter: they do think this is a bad deal for bristol and aren't going to support it. while generally might be some fine points that are different, generally what they agree on is that this is a bad deal for them. vonnie: but wellington is not supporting starboard? reporter: no, they are completely independent and that. but it is a bit of a snowball two,ct when you have especially as combative as starboard, coming out. this may be the only time wellington has been on the record as publicly opposed to a transaction. vonnie: exactly. guy: the bloomberg merg

if you own that, you want to vote in favor of this deal if you also own bristol myers because celgene go down a lot more were the deal to break than bristol myers would go up if you get a deal price break, you get 74 bucks in celgene. it goes down a lot it brings to the fore this continued concern there will be mounting opposition to this transaction. >> when i read their filing, geez, talk about not having any rigor in filing. >> there's no plan b that's what i continue to hear it's not going to be a string of pearls where they buy this company and that one >> there's an outfit called beijing which has the chinese celgoo celgene. sales were flat quarter over quarter. those numbers are bad. if you're watching this and you own celgene, this is bad ammo to have this deal close bristol myers are more dead set than ever. >> you've been a supporter of the deal >> i think that the five things that ccelgene's put forward -- >> if bristol myers remains without celgene, what happens then. >> some of these drug companies have really fallen on hard times and they have been really bad stocks they

optivo and ref la mavlimidrevlia fantastic pipe you don't know about for celgene.k it is bad for bristol. that's why everyone is so excited. i disagree with that. >> i know you do there are many who do think they got a good buy here in terms of at least when they bought and the multiple they paid for celgene, the deal will be creative right away. many datas i think i termed it in some way two drunks holding each other up so, yes. >> when i was at jpmorgan health care conference, i think you laid out a very good case. >> you're a believer. >> yes, i am a believer. i think bristol is a challenge company and this takes the pressure off bristol has a number of good drugs. they do not have enough to be able to make it so people are excited about it this idea is, david, i think more putting bristol in play >> yeah. >> we both think that's -- >> look, i could be a supporter. >> any interest out there -- first of all, it would be hostile in nature. >> that's ridiculous. >> very hard to imagine. pfizer does not seem interested at all. >> at all. >> pfizer -- pfizer had a --

starboard coming out against the idea of a merger between bny and celgene. we will see how that goes down. the vote isn't until april 12. guy: the month is coming to a close, and there have been some really big outperformance is from some markets. one of those that really stands out is the chinese onshore equity market. 14%.00 up circa most markets around the world, the s&p, for example, up around 3%. the question we are trying to figure out the answer to his does this continue. does china, particularly the onshore market, continue to outperform the rest of the world? what will be the catalyst for that? it is coming from a very low base, it is worth remembering. marcus asked where's of bloomberg opinion joins us on set to discuss all of this. massive outperformance did come from a low base, but is it sustainable? >> it has been really spectacular. the tech heavy china index had -- the tech heavy china index has seen some momentum slowing it and 3000 level. there have been several factors behind this rally. better u.s./china relations, a steady yen, policymak

does it have to do with the celgene transaction? reporter: it does.hey are trying to expand bristol-myers with this multibillion-dollar deal, and bring in a biotechnology side with celgene. that is a bigger question, what exactly is starboard after? you think about their past dealings, i thing about darden restaurants, really where starboard made their name, being able to dictate how the pasta was cooked in olive garden. it is a whole lot different than figuring out how to run a drug business. it will be interesting to get more of a sense of what exactly starboard is seeing in bristol-myers' business. it is a bit of a departure for them in terms of the industries they focused on the past. -- focused on in the past. guy: can we focus a little bit on the grocery sector? u.k. authorities are pouring cold water on this merger between sainsbury and asda, owned by walmart. how big a blow is this to walmart? it is a blow in the sense that they've had their struggles in the u.k. over the years. when you talk about the grocery business, you just got results fr

ibb, cap weighted toward celgene, so forth, up 26 there is the market up 20. and of course hemalth care up te least. so let's zero in on biotech in particular and the real problem is, and tim you referred to this, this has been poor relative performance for quite some time. here is the chart. i see something that is just stuck at prior highs now, if we put in relative performance, this is the real issue. if i were to draw a line, there was alpha coming off the low yes? because what has happened since this is that basically after the initial spurt, you have had relative underperformance compared even as you basically trended higher and this is important. i have compared to the xlv which is its broad sector. so ibb not delivering for the past basically six, seven weeks. and speaking of not delivering, here is a relative chart same chart and let's pull it back and watch the following the peak actually was almost five years ago and basically what we've had is this, nothing but underperformance now, another way to draw these lines would be as follows. take it all a

caroline: $71 billion search for celgene seems to be on tenterhooks.tor welling agrees the store markups should be an active business development but don't believe a celgene transaction is an attractive path forward. another active investor nominated five directors to the --rd of bristol meyer's crib bristol-myers squibb. let's talk politics. we talk brexit with none other than our bloomberg editor in chief. there is back and forth in the throes of political drama. it seems this is getting quite amazing in the u.k. right now. >> it may just be the can is kicked down to one bit of the road to where it's quite difficult to push further. and now looks as if on march the 12th, we will have a vote on theresa may's deal. as mark crumpton laid out in the news. after that, if it does not get through, which i suspect it's likely they will then -- likely it won't, they will then rule out no deal. meanwhile, a fact that a deal could get through, that got to little bit more likely. joe: we've seen a little improvement in her odds. hard liners say maybe we can supp

. >>> celgene is lower as well bristol-myers top shareholder coming out against the proposed deal to buy celgene saying it's too risky and expensive. >>> now to sue herera for a cnbc news update. >> hi, kelly at his press conference, president trump commented on the michael cohen testimony. he said he was a little impressed that his former attorney told congress there was no collusion between his presidential campaign and russia >> he lied a lot, but it was interesting, because he didn't lie about one thing. he set no collusion with the russian hoax i was impressed that he didn't think i was well for this reason or that. he said no collusion. >>> new england patriots owner robert kraft has pleaded not guilty to solicitation of prostitution he was charged by jupiter, florida, police last week after hundreds of people were arrested in an investigation regarding human trafficking an massage parlors. >>> kia and hyundai are recalling nearly half a million vehicles the larger recall covers neely 379,000 kia soul models from 2012 to 2016 hyundai is recalling 152,000 tucson and sportage suv

, look, when bristol-myers bought -- decided to buy celgene, they said there are other assets coming other hits they need more shots on goal i did not like the quarter i do not like the quarter one bit. i did not like the border, eggs and ham. what has to happen is david tepper has to put it in play i don't think he puts it in play to say you want a chairman. >> his focus seems to be on, again, getting a seasoned independent chairman with extensive pharmaceutical experience to exert a favorable influence on executive decision-making. >> look, botox is one day. i'm trying to get evolus on air, which has the new -- botox is an amazing formulation. i don't think the dermatologists can be so quick to run away from it but if there is price competition and the numbers come down, the analysts deserted allergan one after another after another. tepper's note will send it up ten. >> it is up, yeah, not quite that much right now. we got a lot of other stocks we're going to be getting to this morning opening bell, about five minutes away stay with us on "squawk on the street." your favorite rest

jim, alxn, i've been watching that for a while and watching the market and kind of looking at celgene bristol-myers i wouldn't be surprised if somebody snatches up -- >> normally i would not recommend a stock on a takeover basis but you're right always a bridesmaid, never a bride. i agree with you i don't think it's expensive i'm on board with you. steven in new york, steven >> caller: boo-yah, jim from putnam county. how are you? >> i'm good. how about you? >> caller: i'm good. thanks for all you do for the little guy. >> you're welcome. >> caller: i'm calling up about u.s. concrete, uscr. >> bill sand brook is a good guy. we keep thinking there is good infrastructure nobody likes anybody anymore so i don't know how it's going to get done i wouldn't sell it at 36 too cheap. i bet you the real estate they have is worth more than the current price of the stock and i'm not kidding. i know some of their lots. let's go to mark in new york mark >> caller: hey, jim. this is mark from brooklyn, new york >> yes >> caller: yeah, brooklyn. so i'm a huge fan of yours. >> thank you. >> caller: i

bristol-myers squibb and celgene.nion carries a lot of weight in early january bristol announced a deal to acquire celgene. wellington saying it believes the transaction asks bristol-myers shareholders to take on too much risk. back to you guys. >> okay. eric, thank you very much for that bit of a movement. down 5% or so, celgene, at the moment. >>> tesla's elon musk tweeting big news tomorrow but some think it could be a distraction from another big event the automaker is facing. phil lebeau joins us phil >> a lot of that surrounds what the company will be doing with a bond payment that is due by friday they will be making this payment for $920 million it is a convertible note we should note that the conversion price, if they were going to be able to pay it with all stock, tesla shares had to be above $359.87 clearly they're not going to come close to that come friday they'll make that payment. it raises the question we've heard from a number of people, is there a cash crunch at tesla? that was a concern six to nine

your own death can actually help in a new way this has already have celgene in the raw you because a. brussels aat that you would be outed to the tickle me shown towards the when there was a dish of discussing a deficit for next year for the sierra next year that she was already there because a war was happening in france and because of the fact because of the decision. because of my cause this sea shown to raise the deficit the spending to spend more and raise the debt. in two thousand and nineteen so we already see some consequences of the trouble that mccauley saving these old country so like you said sell meenie hailed the yellow vast anti-government movement in france a success and saying that there's was actually no that was actually that was actually more of the five star movement heard so many actually sat. that france doesn't deserve a president who is again so. he says she supports the people and he she doesn't like because she said against his nation so. the question ease with the budgetary defeat in italy does risk running into its own yellow vests problem. the yellowjacke

brister my all square -- brister squibb bristol-myers down, having to do with the celgene merger. bristol is in conversations with ofrboard with the option adding to that position, so we will just have to see how active starboard gets. five directors is a pretty active stance to lead off with. i did want to point out the yuan as well. ever since china said it wouldn't weaken its currency deliberately, that it would agree to u.s. terms, we can see the yuan has been strengthened just a little bit. 6.714 right now. guy: let's talk about what is happening with develop and's this afternoon worth paying attention to. theresa may getting hit with defections from her conservative party. joining theps independent party. bloomberg breaking a story a little earlier on suggesting we are seeing a new text being hammered out in brussels. this report was generated out of spain from the spanish government. joining us is our bloomberg --xit editor, russ thomas editor, ross thomas -- editor emma ross thomas. does the spanish story today hint that we are getting very close? the comments from the spa

go to break now look at the biggest gainers for the nasdaq 100 a lot of familiar names on the list celgene. s&p up back in a minute ♪ hawaii is the first state in the u.s. to have a hundred percent renewable energy goal. if we don't make this move we're going to have changes in our environment, and have a negative impact to hawaii's economy. ♪ verizon provided us a solution that lets us collect near real time data on our power grid. ♪ if we can create our own energy, we can take care of this beautiful place that i grew up in. ♪ when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. >>> welcome back amazon is delivering a third straight record profit in its holiday quarter. jeff bezos saying alexa was very busy during her holiday season echo dot was the best selling item across all amazon products globally and customers purchased millions more devices from the echo family compared to last year the stock began a drop during the earnings call. investo

will review star board's letter but says they are confident of a confere -- of a combination with celgene. some of the tech companies had earnings reports yesterday, where outlook really came to the fore. they declines in hewlett-packard and fitbit. fitbit down 13%. it beat in the fourth quarter, but outlook was bearish. hewlett-packard falling the most since august 2011, down 16%. disappointing sales and outlook there. and the cloud storage provider losing a quarter of its value after forecasting the annual revenue would trail below estimates. and this is the online travel agent projected lower-than-expected profit, so that outlook not helping these companies. david: tech moving once again, not in a pleasant way. nuclear weapons front and center. from the summit in north korea to the standoff between india and pakistan. we will speak with mike molen, next. this is bloomberg. ♪ david: this is "balance of power." i'm david westin. now kailey leinz with first word news. >> talks between the u.s. and north korea are not over, the word today from mike pompeo who says negotiations will presume

celgene contacted party a. had no interest.m to say no came back and agreed to the deal, 50 bucks a share and 50 bucks a share in cash and one share of bmy not much drama to share there. regional sports networks, amazon, bidding on the yes network. wanted to get more on that auction we have been following closely here on the faber report disney forced to sell. we talked about this not going well as much as raising enough money as hoped initially bloomberg reported, major league baseball stepping up to make a bid in the second round. second round bids due yesterday. they're in there now none of this is binding. go to the next round it is interesting to note that mlb steps up don't know what the bid number was. sinclair has interest. would they get together with sinclair i don't know if they have in some fashion sinclair a very small company would need to raise enormous amounts of private equity money to mount a bid for all but the price in question that i'm hearing, may come in at a multiple below 6 1/2 times, 1.6 billion in ebi

them look fine, some are getting extended but i think you're asking about the big cap names like celgene i think many of those haven't participated in the rally. they had their peak in 2015 and are basing out if you look at biogen and regeneron, lower risk going into the second quarter. >> do you see a test action and i know the numbers have changed and retracements have changed. things have dramatically changed, predominantly with powell and the fed so 2350 can be off the table, but do you see us coming in anything dramatic from here? >> i don't thinks going to be a dramatic pullpack. if we go back to 2016, the setup is very, very similar. the fed is on hold, the concerns of a global recession are behind us, cyclicals have rimmed off the bottom and you could see a 5% pullback in the second quarter. i don't think you're coming all the way back down. any pullback will be very shallow. that's why we like pfizer here. >> rob, if you're looking for sector rotation are you disappointed in the way bank stocks act or maga acts, microsoft, apple, google and amazon >> look at microsoft sort of a

they have met another dissident from the acquisition of celgene.rd some doubt about it. now, the second largest shareholder coming in saying we don't think it's a good idea. alix: interesting. how many activists are in the market right now. i'm taking a look at in bed. -- ab invev. the huge write-down they had to fourth quarter beat estimates. they are more bullish on the u.s. even though shipments that fall. -- did fall. it is global, not domestic. alix: beer is beer. david: the third story we are watching today is about technology. still with us, abhay deshpande of centerstone investors. this piece crossed late yesterday that there were a couple of tech stocks that didn't do so well. >> you had a couple different companies -- fitbit was down double digits following its earnings report. voxas another, booking.com, -- tech earnings had been relatively good leading up to this dismal series of reports yesterday. there are two trends that emerge. with fitbit, they are looking to make their devices more accessible. that means they will be cheaper. that

value will engage the level of support among bristol-myers shareholders for the company's deal to buy celgenestarboard has not yet decided to support the $74 billion deal that would bring together two major producers of cancer drugs. the u.s. auto industry is urging the white house not to impose steep tariffs on imported cars and auto parts over the weekend, but the commerce department sent him a controversial report that could impose the new tariffs the president has 90 days to review the recommendations and decide whether to act on that. >> all right eunice, i like this time of day. u.s. and chinese officials are headed back to the negotiating table this week. this time in washington. let's find out what the chinese are expected -- what is expected from these trade talks that until they get just called off and everyone gets mad, we have to assume that it's a positive for the markets, right eunice, who joinds us now from beijing. we're moving forward are we not >> moving forward. yeah the chinese want the americans to get off their back. the skmanz vice premier is heading to washington, and

did to us in dow dupont people are coming around to david's view, not mine, that the bristol-myers celgenet of desperation. i don't agree with that. >> you don't believe that? >> no, i don't i think it is good get the cash flow, use it to buy more r&d, get a loxo, eli lilly did. dow due poiupont is me. i did all the homework i absolve mr. green. i am the one that if karen cramer were here, she would make me put the post-it on my head, dwdp and make me go get her a soft pretzel go get me a soft pretzel that's why i loved her still do my wife is on a train. i don't have to worry. >> okay. >> amazon -- on a very thin tape here, jim, amazon is down about 2% along with other names that -- twitter and so forth, micron, good year, even after -- >> no divorce there. >> no -- >> trying to do divorce versus no divorce what stocks can be sent down by divorce. >> yeah. >> goodyear is sent down by the fundamentals the auto business, it is bad how about union pacific doing a big buyback right here i don't know that could be wrong headed i'm looking at tech making a turn right here, right now i think tha

a major shareholder saying it does not support the deal to buy celgene and they are accepting too muchansaction. they say it is being purchased and will create substantial shareholder value. >>> a number of pedestrian deaths hit a 30-year high. >> i'm going through horns because people like spotlights >> they are stopping >> stops to read their taxes >> thiit's always the same thing i have to look up to see that. i do not -- no i have apple play where i can do all of my messages and do it all verbally >> yes >>> coming up, digging for gold, the ceo on the bid squawk box coming right back people know aflac... aflac! ...but not what they do. so we're answering their questions. aflac is auto insurance, right? no. uh uh. is it homeowner's insurance? no... uhuhuhuh! is it duck insurance? nope. ahhh! do they pay me money directly when i get sick or injured? yeah. aflac! you got it. you know aflac! boom! get help with expenses health insurance doesn't cover. get to know us at... aflac dot com. >>> take a look at gold this morning. $1,327 joining us right now is mark bristow. we are thrilled t

maria: what was the last big deal, i think it was the celgene deal. buying spark therapeutics. maria: ge something the biopharma business to danaher for $21.4 billion, takes ge's stock up 4%. we know it's no longer a dow component. it is at $10.62 a share. we'll keep following the impact here. our top story this hour right now is the deadline has been he delayed for the president to put tariffs, higher tariffs in place on china. president trump postponed an additional round of chinese tariffs, originallied scheduled to kick in on friday. the commander in chief offering investors an optimistic outlook for a deal, tweeting this over the weekend, he said i am pleased to report that the us has made substantial progress in our trade talks with china on important structural issues including intellectual police iy protection, currency and many other issues. as a result of these very productive talks, i'll be delaying the u.s. increase in tariffs now scheduled for march 1st, assuming both sides make additional progress. we'll be planning a summit for presiden

defend it or not >> prices have gone up on a lot of drugs a drug to treat multiple myeloma, it's a celgenehas gone from under $250 for a 10 milligram dose back in 2007 to almost $720 today. that's the type of things that make people so angry when they hear these things. it's the type of things that unites both democrats and republicans when they go after issues like this what is the real problem aside from just a lack of competition. when you start talking about the rebates that's handed out. >> i don't want to talk about any specific drug, but when we do have discounting in the market, when you have the expected competition in the market place and pricing systems that allow that to distract discounts in the market. in medicare, we don't have competitive bidding so it's hard to extract discounts but when you have the right conditions and you canextract discounts, the problem is that the discounts come in the form of back ended rebates that go back to the health insurer those are used to pay down everyone's premium everyone is getting lower premiums because of the discounts on the drugs but

in fact, in this context we recently announced our plans to acqui acquire celgene.t is to bring together two companies to do even more for companies. as a physician, i do recognize that medicines are only helpful if facial patients and health care system sebelius afford them. we share the committee's concern with escalating health care costs and believe that our responsibility extends to ensuring patients have access and can afford our medicines. for this reason, the average net pricing across our u.s. portfolio of medicines increased by 5% of less year over year for the last five years. importantly, it did not increase at all in 2018 and we expect that it will not increase in 2019. despite this fact we do despite this fact, we do recognize that patients are a pocket costs continue to increase. we believe it is possible to work together to realign incentives to ensure patients can ensure medicines without stifliing innovation. so what are the solutions? we are supportive of the proposed rule aimed at reforming the rebate system with a focus on what is best for patie