eli lilly is the latest drug company to make a big bet on lo on. as the science evolves and ground-breaking new medicines are discovered. >>> pricing power. it's going to cost you more to go to disneyland, but wills consumeray up? those stories and much more tonight on "nightly business report." it i monday, january 7th. >>> good evening, everne, and welcome. the big rally friday extended into today. investors started the week in a buying mood, snapping up shares of technology stocks, as u.s. and chinese officials talked trade and the price of oil rose. the dow jones industrials rose 98 points to 23,531. the nasdaq added 84, the s&p 500 was up 17. asusual, there w volatility. but there was also a sense of relief, which stand contrast to what investors were feeling not too long ago.sa bob explains. >> it's remarkable how much market sentiment has changed just over the past few days. investors h had a long list of concerns but they're finally starting to see some progress s made oneral fronts. there were worries about the fed raising rates too quickl

that was daybreak's, the eli lilly ceo in sandbox -- that was dave ricks, the eli lilly ceo.more coming from that conference, i assure you.back to the breaking we had that, deutsche bank come at the company is said to be cutting its pool for 2018 by roughly 10%. frankfurtned now from . how are they going to do this without losing staff? >> that is the question they need to answer. cost are extreme pressures, but they are also under pressure not to lose that so they are trying to allocate bonuses selectively and try to reward those who bring in the most money and not reward those who do not bring in money, thereby saving costs are not the top earners, and that will be how they will try to spread the circle. vonnie: we are hearing this about deutsche bank, presumably other banks will come out with a statement on bonuses. context?ut it into what are we hearing about bonuses and other european banks and in general global banks? well, i think banks generally have seen a share prices that have seen bad year in 2018 and there is a lot of competition. we had a report before the winte

the eli lilly ceo saying they are looking to do more deals this year.ocused 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 buy's stores out of bankruptcy fell short. sears will focus on getting ready for liquidation sales that could begin as early as the middle of january. that is the latest bloomberg business flash. checking u.s. markets, it is about three hours into the trading session. we have the s&p 500 up 21%. the nasdaq is up 1.5% on a slightl

but in the hands of eli lilly, it could be blown out worldwide.an you image a shanghai hospital, if you have a gene for a lung cancer, loxo could be a lifesaver. initially eli lilly took a hit loxo's technology is visionary and now belongs to lilly and the stock went higher because of it. for a long time when we thought of pharma, we thought of drugs for the same old remedies. sales forces that pushed product. but that is no longer the case that is what is so exciting about being out here take novartis, a doctor, got a master degree of public policy from harvard and happens to be an actual scientist. this guy is reinventing it maybe solutions, i do. many of which could be turned out to be blockbusters that produce billions of shares you will hear from him later tonight. pay close attention to what he is doing with gene therapy, and heart therapy. how about emma wongsly who runs glaxo. yielding 5%. really exciting. that is what many investors want from big pharma, but not me. i want breakthroughs, life saving products. until they got there, the pro

still ahead, the pharmaceutical industry gets a big deal for 2019 we will out what eli lilly is proposing in their purchase. this is bloomberg. ♪ vonnie: this is bloomberg markets. start to the year so far in the pharma industry with eli lily buying loxso oncology. they develop cancer drugs and they are based in connecticut. it is up 65% right now. we go live to boston for more. why do these companies marry so well? said this morning they have been really focused on rebuilding their pipeline. they are not really alone in this. a lot of the big drugmakers out there have aging blockbusters are products that are going up athens and they really need the next new thing. this is the biggest deal that eli lilly has ever done. it's with a cancer company, loxo. of people'sa lot radars as a takeover target. it's unusual that eli lilly would be the buyer but it shows they are committed to cancer and rebuilding their pipeline. loxo does.lain what has it been doing so far in what's in their pipeline? an interesting company, working on one of the most cutting areas of oncology. it's known as precision

that shows you how much eli lilly wanted company.cewaterhousecoopers one of the consulting firms says there is more like this to come. alluded to the fact with cancer treatments, when patients are paying for drugs, the pharmaceutical companies are reaping anywhere between 60, to 80% premium and these pharmaceutical companies don't actually have to pay a sales force. a high cost sales force the same extent they do with other kinds of treatments, neil. neil: analogy of built-in babe ruth. you just bought babe ruth. jonathan, when you look at the sector, do you like it or all of sudden change valuation, far from encouraging deals it might inhibit them? >> no, neil. deirdre is right on the money. this is quietly one of the strongest performing sectors in 2018. everything fell apart in the fourth quarter. up until this point it was big cat pharmaceutical stocks. it survived as a big cap pharmaceutical you have to be involved in m&a. all the top 10 pharmaceutical companies globally are products of m&a. bristol-myers acquire celgene. takida

eli lilly shares are up 3% on the news.gan health care conference. shutdown showdown, we are in week three now of the partial government shutdown over funding for a border wall. president trump says he now is planning for a steel wall instead of a concrete wall. calling it stronger and less objecobtrusive. we'll have details on the extraordinary steps the trump administration is taking to keep national parks open during this shutdown. well, a word on privacy, apple is taking a swipe at google and facebook with a full billboard across from this year's consumer electronics show. we'll tell you about it. wait until you see this. big names set for ipos this year, we're taking a look at the most hotly anticipated offerings for the new year. new year. we've got familiar names like uber, lyft, airbnb, going public this year. we've got a preview. check out this video from the world's largest ice festival in china. more on the incredible visuals coming up this morning. all those stories coming up this monday morning. joining me to b

numbers. 14 for merck 17 for eli lilly why does it trade at is multiple premium compared to the restthe group, and is there anything that merck can do to close the gap? we had lilly's ceo on the show a couple of weeks ago. didn't you love him? they have a phenomenal diabetes franchise not to mention terrific management team that is willing to make opportunistic acquisitions be threw is one thing in particular that i think sets lilly apart. last year the company did something very savvy they spun off their veterinary division as a separate business, elanco animal health and this has unlocked a tremendous amount of value since it announced that lilly stock has rallied nearly 30% that's right meanwhile lilly's expanded from 14 times earnings to the 17 earnings level it is now there is more to it than the elanco deal, of course but that was definitely a major catalyst, made people really focus on lilly i mentioned this because, get what merck's also got an animal health business. when lilly told us they were spinning off elanco, so maybe merck should do the same thing hey, it worked for

dave ricks, chairman and ceo of eli lilly. >> jim reporting from the jpmorgan healthcare conference and a lot more to come from him, and as we head to break a quick check on the major averages. nasdaq and s&p both higher "squawk on the street" back right after this duncan just protected his family with a $500,000 life insurance policy. how much do you think it cost him? $100 a month? $75? $50? actually, duncan got his $500,000 for under $28 a month. less than a dollar a day. his secret? selectquote. in just minutes, a selectquote agent will comparison shop nearly a dozen highly-rated life insurance companies, and give you a choice of your five best rates. duncan's wife cassie got a $750,000 policy for under $22 a month. give your family the security it needs at a price you can afford. >>> time for our etf spotlight this morning taking a look at utilities. the utility select sector etf and xlu lagging amid pg&e's liability concerns surrounding the devastating california wildfires which david reported on earlier this morning. so

eastern time, an interview with eli lilly c.e.o. david rick.from that same kfrpblts >> president trump says he will address the nation tomorrow night about what he says is a risis at the u.s.-mexico border. mr. trump maintenance that more han $5 million for a -- $5 billion for a wall is needed to secure the border. the internal revenue service will issue refunds to taxpayers even if the u.s. government shutdown extends into the filing season. the acting director of the white house office of management and budget said "tax refpblets will go out." in previous shutdown contingency plans, the i.r.s. would accept tex refunds but refunds would be delayed until the government was funded. hillary clinton joifpbled andrew cuomo today for strengthening abortion rights in new york state law. it didn't give women the same rights gaurnl teed under roe v. wade. >> the struggle for women's quality is not simply something to be read about in the pages of your history books. it continues to be the fight of our life tivement women's abilities to get basic health

reporter: i think that is a really interesting point, something that the eli lilly ceo brought up onall. 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 the jpmorgan health care conference at 10:30 eastern, 3:30 p.m. london time. time now for futures in focus. for its longest winning streak since summer 2017. cne, where wee are joined by alan of agoura financial. do we get there today? guest: not quite just yet, but the $50 is very important psychologically. oil traded between $50 and $55 for many weeks before this latest breakdown. i think oil is all about the macro market. you look at the chart packet best the chart patterns you see in oil and it is honest exactly the same. a

in pharma, eli lilly will acquire loxo. >> this is the largest transaction eli lilly has ever done accordingerg data. it is interesting. there are paying about $8 billion, and investors seem to like it. it is certainly a premium price, but they do have a premium product. it is less risky. >> it is an incredible little company that took advantage of breaking science that allows doctors to identify the exact reason tumors are growing through genetic testing and then they make a drugs but block that action. it is entering the world of what we call precision medicine. it adds to our oncology business. the kind of transaction we said we would be interested in. strong innovation, compelling data from patients in terms of survival rates and complete response rates. we are excited to add it. >> german industrial production took a big step down in the last year, raising the prospect of a technical recession and european economic confidence has fallen to its lowest level in nearly two years. what is going on? >> well, i will tell you i think markets are shrugging this off. this is data from november a

. >>> welcome back to "fast money," eli lilly purchased loxo oncology, the deal sent the etf that tracks the biotech space up more than 3% nearly 10% since the start of the year jim cramer sat down with a number of ceos in the space at the annual j.p. morgan health conference here's what the ceo had to say about growth at its company. >> we have four areas of big growth right now we have cancer portfolio growing, cardiovascular portfolio growing, bone health and migraine and then nugs we're launching biosimilar medicine which is we expect to be an important source as well so we expect to be a company that continues to grow handsomely on the top line and earnings per share over the long term. >> for the full interview with jim cramer and the ceo of amgen, stick around for "mad money" at the top of the hour. so should investors keep betting on biotech and the health care space? two major acquisitions in two weeks. >> i think so. this is not monday morning quarterback stuff. this is something we've been saying for some time, probably since earlier in the spring. i do think valuations are st

. >>> one of eli lilly's cancer drugs as suffered asetback. the company said that its sarcoma treatment did not significantly improve the overall survivalnt of pat in that trial. the drug had been approved back in 2016 but continued approval was dependent on fthertudy to confirm its benefits. lilly is now discussing what comes next with regulators. shares dropped 2% today to $116.59. >>> and schlumberger reported quarterly revenue that toppema ess. given the volatility in crude, the ceo says his company's spending outlook remains uncertain. it is considered a bellwether for the oil field services sector,nd that stock popped pie 8% to $44.73. >>> time for our weekly market monitor who h aix of large and hadcap companies tt he sees growing double digits over the next year. he is david rainey, portfolio manager. lcome back, nice to see you again. >> good to be here. >> and you pick these from differ.t industri you say that basically they're all going to groonderably over the next couple of years. let's start with your first pick, whichri is an to

all of this is on the heels of that big deal by, of course, loxo oncology and eli lilly buying them fors why you're seeing the shares moving the way they are right now. if you take a look at the relative performance of biotech versus the s&p 500, over the course of the past year there may be a reason why some people are feeling at least a little bit better or at least a little bit more curious about what's happening with the pipeline. because if you look at that particular etf, the biotechnology stocks are trading at a bit of a discount to the overall s&p 500. treats all these companies on a more equal weighted basis. like the nasdaq, biotech ticker. but all of this will be made a little bit clearer in the 10:00 a.m. hour today when we've got a big interview. the ceo talking to david ricks about what it was. we know bristol-myers, pipelines, all of those big themes from these companies amidst the conference out in san francisco, california, happening right as we speak. back to you guys >> thank you very much >>> our next guest is predicting a big rally for global equities in 2019. rober

yesterday, eli lilly will buy luck so for a billion dollars. oversees health care coverage for bloomberg. i see you could use some help. drew: they seem to be involving oncology drugs. the pharmaceutical industry for the last year or so is been sitting on big piles of cash. .hey wanted to do something they need to refill the pipeline, they have problems to solve. valuations have been too high to go out and buy assets. there been some big pullbacks in the market. that's made some of those things must cheaper. -- much cheaper. we try to get some deals done. some valuations were too high. we have had these two big deals. we think there are probably more in the offing. we are heading for a time of transactions happening. things are lining up in the direction of money available, the need being there. all uh is a coming to a point where people are willing to bite. alix: we are hearing both sides. on the one hand, you have the ceo. >> my appetite is strong for that type of asset. base is $16 trillion. we gave 17% for next year. that does not include n

in september, she protested outside eli lilly headquarters. >> my son is not a statistic. his life saving medication was priced at a reasonable rate. >> reporter: minnesota's attorney general laurie swanson leaves office on monday but says her successor plans to continue the state's lawsuit. fda commissioner scott gottlieb says the fda is going to be changing the way they regulate insulin moving forward. >> at $1,300 a month, there must be a lot of people trying to ration. >> there are. he is certainly not the only one who's tried to ration his insulin which is very risky. >> frustrating to see so many redactions too, right? >> right. >> you can hardly read the thing. >> i'm glad we did the story. everyone i know who has had diabetes 1, 2, told me insulin prices are going through the roof and making it very difficult for them. all right, thank you. >>> china has challenged u.s. dominance here on earth for decades. now chinese ambitions reach all the way to the moon. ahead, a new space race takes flight with the first of its kind lunar landing. and if you're on the go, subs

eli lilly has agreed to buy loxxo for $8 billion in cash.n and it develops cancer drugs. sears preparing for a possible liquidation that could cost tens of thousands of jobs. bloomberg has learned the chairman's plan to buy several hundred stores out of bankruptcy, it fell short of qualifications. sears one-off focus on liquidation sales to begin as early as the middle this month. and president trump considering several moves as the government shutdown has moved into its third week. issays they ministers and planning a steel barrier on the mexico border, rather than a concrete wall. the white house hopes it could attract democratic support. he also says he will not rule out announcing a national emergency to circumvent congress and get border funding. david: we are not in the 17th day of the partial government shutdown, and although leaders met through the weekend, there is no ned insight -- end in sight. how made this change as time drags on? we still have with us lori calvasina, rbc's head of u.s. equity strategy. is it affecting the marke

eli lilly acquires. >> this is the largest transaction they have ever done according to bloomberg datait is interesting. $8 billion. investors like it. it is the big premium, but they do have an improved product. it is less risky. >> it is an incredible little company that took advantage of breaking science that allows doctors to identify the exact reason tumors are growing through genetic testing and then they made drugs. they block that action. it is entering the world of precision medicine. this adds to oncology. it is the kind of transaction we are interested in. strong innovation, compelling data in terms of survival. complete response rates. we are excited to add it. >> german industrial production took a big step down in the last year, raising the prospect of a technical recession and european economic confidence has fallen to its lowest in two years. what is going on? i tell you why i think markets are shrugging this off. this is data from november and around that time, both the bundesbank and finance ministry warned that germany would suffer through a slowdown in the latter pa

just churning on >> eli lilly their cancer drug hits a s setback. >> they are taking 17% from earningslike to help the group. >> all right nxpi >> can i be honest with you? >> always. hold on, aren't you honest all the time >> i'm going to break some news. i don't like these calls lie that i can are saying, still not going to have any reven growth we looked at the whole semi sector and looking at them on enterprise value this one is selling at the biggest discount that's the reason to buy it. there's no real catalyst nothing is going well for the stock. i don't buy these types of upgrades i almost feel like they are ob will recolle ligatory >> emerging markets on pace since january 2018 >> we are over weight emerging markets. they really got beaten up last year going forward we think there's three important things to watch. first is the dollar. the fed stepping back a bit. our expectation is a flat line and the other two are all about china. trade and chinese policy makers to slowing growth. really trying to take a conservative approach. >> all right gold prices pulling back on track.

and second, they're going to participate on a panel for us with david ricks from eli lilly.s going to be a great opportunity for them to talk about how pharma and these new entities can work more closely together to solve this problem around pharmaceutical pricing, access, quality, et cetera >> i want to congratulate you on the franchise you built. can't wait to get there next week and you'll help us learn that's lisa gill, jpmorgan's senior director. "mad money" is back after the break. >>> it is time for the lightning round. and then the lightning round is over are you ready? let's start with paul in california paul >> caller: hello, jim. how are you? >> i'm good. how about you? >> caller: great, fantastic. qualcomm is my question. i have a huge amount of it >> look, it yields 4%. i think they have the money. they can't lose the lawsuit to apple. the problem is, man, you are in cell phone hell. and i don't want you there because that is -- >> the house of pain >> let's not -- as it rallies and it can, i would do trimming. how about dan in illinois? dan. >> caller: hi, jim

well as the stock got a boost after eli lilly shelled out a fortune to buy a new company and i liked everything i heard now, this is a small biotech focused on the cancers where do i come on this? at a time where it seems like big pharma has gotten the urge to merge again, i think this stock can be worth buying for takeover speculation this is a rare biotech company that has earnings and it's cheap. trading at less than 15 times the next year's earnings estimates. i like this company here it's down 4% today if it continues to climb you have my blessing to snap it up on weakness. remember, it's speculative on october 18th, john in virginia wanted to ask me about max-r technologies and this one by the way has had the opposite trajectory. it's plummeted down to earth over the past few months it has been awful. this is an aero space company. making satellites related to equipment and services the current incarnation of this business was formed nearly at the end of 2017 when the old mda holdings merged with digital globe. now the stock has been a total disaster mergers haven't been going

eli lilly is lower on disappointing study results for one of its cancer treatments mgm is higher have striking a deal to get a board seat the stock has had a great erso far. up 15% now to cnbc's sue herrera for a news update. >> here's what's happening at this hour. former president jimmy carter speaking at a ceremony to mark the 40th anniversary of the normal san diego of diplomatic relations with china he said he was grateful president trump has met with north korea's leader kim jong-un. >> i haven't met kim jong-un, but i would say 20 hours in all i've spent intense discussions with north korean leaders about what they want and what the united states want i shared that information with president trump and with other leaders since then >> thousands of people who are against abortion gathering in washington for their annual march for life it marks the supreme court's roe v. wade decision which legalized abortion organizers say it's the largest anti-abortion event in the world. >>> now check out this video it has gone viral on the internet that's two shark researchers coming face-to-f

the major investment in juul the downgrade hurting the stock and loxo oncology after eli lilly agreed to buy the company. 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 we would all agree that that would be a good thing, but last summer, i wrote to the ceo of eli lilly and actually of some other companies, as well. asking him about the impact on consumers' out-of-pocket costs for different drugs., asking him about the impact on consumers' out-of-pocket costs for different drugs. and their response left a lot to be desired. and mr. chairman, i ask unanimous consent to submit to the record my letter, as well as the response from eli lilly. >> without objection. >> my question to you, mr. hall, have you analyzed the impact of pharmaceutical companies' decision to invest in buybacks rather than lowering out-of-pocket costs for consumers on the trajectory of our out of pocket health care spending for middle class americans? >> well, we do keep track of pharmaceutical prices, and we do try to monitor. we have done some looking at that. relying on my memory now -- it's not very good. but we can follow up and talk to you about what we see with the pharmaceutical prices and talk about what we think could be an impact going forward. if you like. >> in general

toomberg will be speaking chief executives of eli lilly -- cvs.omberg surveillance. i'm tom keene. we are all charting technical. chris is with us. we're going to do bonds in a moment. as a single best chart idea this is pretty cool. gorgeousitye real to it. these are climbing moving for those of you keeping score at home. how do you pick what this is relative to'? >> if we think of semi-'s as a cyclical index we should look at sammy's relative -- semi's relative to stuff like gold. that's where the underperformance has been most pronounced. semi's have one of the highest correlations with the broader market so the message from this group is very important to how we view the broader tape. i put industrials in that camp as well. industrials and the highest of any correlation to the s&p. it's imperative that semi's and industrials are involved. tom: let's look at the 210 spread. the trend is there from 60 days after the president took over. >> what surprises me how price action in this picture is very different than the narrative over the last coupl

combination will be going against merck with its keytruda anti-cancer franchise we learned about eli lilly'sn purchase we fleshed out glaxosmithkline's takeover from last december. again, to develop cancer drugs as a human being, i love that so many companies are spending big to beat cancer, but as a stock picker, i'm concerned this market may be getting saturated with competition at the same time, i like that glaxo and novartis are shedding their smaller businesses to become more growth oriented. they're combining with pfizer to create a new company that will dominate the drugstore aisles. i was impressed with vas, the ceo of novartis, and with emmett, the chief ceo of glaxo by the way, glaxo stock is very enticing i would buy that one boush health and aren january are both challenge companies, but i like the way their ceos are handling these challenges i think the turn around at baush is well under way. i came away thinking allergen stock has become too cheap and the power of its upcoming migraine drugs if saunders can get the stock to rally here, i bet the company might be acquired. sure,

eli lilly is closing higher. the what is interesting the company is acquirer. you don't often see that. sometimes the acquirer closing lower. not this case. lily closing up after it was making a strategic purchase of a oncology companies that developed a lot of cancer treatments called loxo oncology. that stock flew 65% higher. ge closing up for the sixth session in a row. ge up better than 5 1/2%, on the idea that private equity firm apollo global management may seeking a buyer, maybe helping ge to get a buyer for its airline leasing division. a lot of analysts say that could be worth up to $40 billion for ge. that company going through a huge restructuring trying to sell off parts of its business, spin off of others. a standout stock on that news. keep in mind the larger context, we know the company had very rough 2018. the stock was down around 55% in the past 52 weeks. so underperforming the s&p 500 7% plus or minus in that time period as well. melissa. melissa: deirdre, thank you. connell: with stocks climbing today, we had the latest round of u.s.-china t

you know what it reminds me of when eli lilly spun off its animal health become as elanco best of all, she wants to take the proceeds and invest them into developing new drugs, fast growing business it had been written off and left to dead for wall street. in reality, womsey is working to bring it back from the dead. glaxo announced it was buying a biotech with a terrific ovarian cancer drug. >> today the park class is prescribed less in the u.s. than other markets. where it's about 2/3, the second line treatment, in the u.s. it's more like 35%. the big opportunity we have is about going into first line treatment, and here the interesting thing is -- and again, we have a study that's reading out later on this year -- right now it's prescribed for 15% of ovarian cancer patients, women with the brca gene. obviously people have heard of with breast cancer we have a study that is going to be reading out for potentially three times as many women. >> wow, i think that's a great story, too i wanted to play all these bites because i find her enthusiasm about oncology to be infectious. she eve

positive, you throw the charts out the window, we wake up one morning and pfizer drug or merck or eli lillyays, you know what, we want to pony up with these guys and you see a 30% move i hear you on the technicals but you know what, the more you know, i'm throwingthe technicals out the window. you know what? can't make money with scared money, or something like that. >> something like that no more questions. time to vote buying or selling. dan, what do you say >> i'm not a buyer i don't know their story they're obviously doing great work on a horrible disease and we wish them the best. they were expected to do $300 million in sales and lose $278 million in gap income. it's not somewhere i can play. >> grasso? >> i'm going to say sell as well the technicals usually have all the fundamentals within them so it usually tells the whole story. yes, i do not disagree that they are binary events that you could see this thing up. either you don't play it or you sell it. >> tim >> guy, i'm your friend, i'm voting buy notice the color of b in buy is kind of like the color of your tie. so gene therapy

eli lilly is the latest drug company to make a big bet on oncology.cience evolves and ground-breaking new medicines are discovered. >>> pricing power. it's going to cost you more to go to disneyland, but will consumers pay up? those stories and much more tonight on "nightly business report." it is monday, january 7th. >>> good evening, everyone, and welcome. the big rally friday extended into today. investors started the week in a buying mo,

look at the deals we have two weeks in the year, $74 billion deal this is 22, gold deal this week, eli lillyith the important oncology deal things are busy. >> let's talk about that why is that? >> what i'm hearing is that if you wanted to do something, you can make a rational argument that the pullback late last year gave you the opportunity to argue on the economics, getting a better deal. >> celgene at 90, pulls back to 60 that's my -- first data, 23 and down to 60, stock is not cheap a lot of companies were saying, if stocks get cheap, we'll do deals. bristol. lilly. these are smart companies. >> this was in the works since october, but even then -- an all stock deal everybody participates and the potential upside from the combined company, you're not getting taken out for cash but there is a real pace of deal-making going on. >> you'll be so busy i'm sure they said, listen, we don't want to tell is. we got to move on. >> david will be much busier than usual. >> we'll see about that. a lot of -- big year ahead for m&a. we'll find out we'll get cramer's mad dash and opening bell in a minu

eli lilly recovered by losses after agreeing to buying for $8. billion in cash.elligence says it adds two first class assets. s&p has put the company on negative watch because the future debt implications. shery: united continental will take $160 million after-tax charge on his hong kong comedies said last quarter as it faces rising competition. that flights are generating higher costs after corresponding gains in revenue. beend routes have not reassessed at since it emerged in 2010. the cost ofiked its california theme parks by 10% ahead of the new star wars land. the price of a one-day ticket in the summer on holly at weekend -- on holiday weekend will jump to $149, the cheapest ticket at $104. disney aims to better manage demand. th emost expensive disney ticket costs $1949. let's take a look at some of the stories trending across the bloomberg universe. dominatingutdown headlines. president trump has four days till many federal workers miss paychecks. softbank set to be downsizing its event to $2 billion. a japaneseic toc, billionaire giveaway tweets brakes o

eli lilly has agreed to buy loxo oncology for about a billion dollars in cash, representing a premiumdevelops cancer drugs. in a year when stocks fell, bridgewater associates stood out. bridgewater's pure alpha strategy fund rose 14.6%. it trades globally across more than 150 markets. bridgewater is the largest hedge fund manager. apple and samsung have announced a deal that would have seemed unthinkable. the iphone maker will begin offering movies, tv shows on samsung tv sets. the arrangement demonstrates apple shift to developing into a medium service company. that is the business flash. ray so glad you mentioned dalio. francine, go ahead. francine: i was going to bring you up today with some of the headlines we had from the spokesperson of theresa may, saying they will set up a cabinet committee of no deal preparations. they said theresa may has spoken to angela merkel and president juncker. at the moment, we understand the u.k. and irish officials are in talks over brexit. for the moment, we do not have a date of when the vote will take place. we know it will be next week. we unde

. >> eli lilly buying laxo oncology. not surprised it is up $92 a share.l a three-week high. china trade talks apparently good for oil. opec production cuts good for oil. $40 per barrel on crude. and now this. >>> i've been a way for a couple of weeks. i was on the other side of the world, new zealand and australia. i deliberately got away from it all. i was celebrating the season of goodwill. then i came back. i suppose i should have expected it but the level of hatred and flat-out contempt from the left for our president still came as a real surprise to me. rashid talib, newly-elected democrat from michigan used a gross obscenity calling for impeachment of the p. i'm sure you have seen it all. i forgotten how der ranged and insulting to america the left has come. speaker pelosi says a border wall is immoral but would not condemn miss talib's obscenity. there was economic, pure economic nonsense combined with sheer nastiness from socialist alexandria ocasio-cortez. she really doesn't like successful people who make good money. she wants to nearly double t

. >> great point there is all capital on sidelines bristol-myers squibb, acquired celgene eli lilly yesterdayeal is that good for the markets. >> i think a great time for the market. couple things takes one ooh buyers oilt of market interesting, with celgene what it does it provides, for companies doing well that there is that kind of bid out there from big pharma private companies i think is go going to be more of that m&a, the way market works great time for bo tech. >> we've got big ipos coming in 2019, obviously securities and exchange mission has to open with government shultsdz you've got uber, lyft airbnb pinterest what are you expecting what is going to bring your business in are '19. >> i think others great companies, the growth of some of these newer companies in explosion of ares in terms of of tap line profitability even ones you haven't mentioned terrific ipos great for jandp yesterday drop bobs a bunch of others high he performer consumer branded companies uber lyft probably go pub this year we will have more fodder for the back great companies market share in short time i think

eli lilly shares are lower after study results did not confirm the benefit of a sar kcoma treatment.year guidance. tiffany says it's down by 2% also expects for the full fiscal year to be toward the lower end of its prior guidance. wall street consensus is currently at 477 stock fell about 3% earlier. since rebounded a little bit it is down less than 1% at the moment >>> okay the government shutdown now clocking in at one month long. we want to go to eamon javers who is back in washington this morning with more. >> good morning. a couple things here in washington to bring you up to speed on the first is this question of china tariffs and the second is the shutdown let's start with the tariffs that was all the market was focused on here in washington yesterday. "the wall street journal" reporting the treasury secretary steven mnuchin had suggested in internal strategy sessions the idea of ratcheting back on tariffs to china to induce them to offer concessionsof their own. white house officials responding to that with denials that anything fundamental has been decided yet. a senior adm

eli lily recovered from early a es after agreeing to buy company for cash. profile. lilly'segative watch because of future mplications. they've decided to -- against taking a controlling stake in we work. they had already poured more than $8 billion into the company but we're told it's backing away from complete control at $16 billion. one reporter said we want notice plunged, falling to their lowest since april. they have regained the haven status. global fixed income told bloomberg 10-year yield are unlikely to return to above 3% that we saw in october he also considered bonds a better choice. >> the reduction of this e-- on the balance sheet is happening simultaneous to the treasury issuing $1 trillion of net debt. that drains liquidity. when the fed raises interest rates, all that debt on the market, particularly short-term interest rates and short-term treasuries, become extraordinarily attractive. it draws money out of every other market. why would i buy high yield or loans or equities if i can sit at the front end of the yield urve at close to 3%. rishaad: market just

eli lily announced it will buy loxill oncology. this is an all-cash deal. it's pushing shares up in the session close to 66.5%. lilly seeing gains as well. let's get to china trade talks. investors waiting eagerly for positive developments as officials in beijing attempt to lay the groundwork for a trade deal with china. this as president trump announces a prime time address on the government shutdown ahead of his visit to the u.s. southern border later this week. let's get the very latest from washington, d.c. and joining us from the white house, edward lawrence. reporter: a lot going on here at the white house. the president now saying he's going to address the nation at 9:00 p.m. eastern time tomorrow, talk about the crisis as he calls it on the border. the president then on thursday going to travel to texas to see the border situation first-hand. he sees he wiays he will talk wr control agents there. he says he wants a steel border now which costs a little more, because steel costs a little more. the white house saying the ball's in the democrats' court. >> they're stuck right now. they are saying they are inter