this has given gilead a nice -- to go after these two markets.$75,000 for a first-round treatment. that sounds astronomical but apparently that's low. >> absolutely. my estimates were that this would be higher. it's quite an expensive cocktail that you have to use. we thought there was more wiggle room for gilead to price this higher. however, the list price is kind of like the sticker price on the drug. there's a lot more negotiation that goes on. gilead may have priced the sticker price lower but maybe reduce the rebate that they might be giving to the payers. emily: how are they positioned against their competitors? merck and others? >> i've been running my models on this one and what they could be doing here in also terms of pricing lower than anticipated, they may be taking a step at getting a larger volume than the rest of their competitors. we're expecting the drug to be approved by the end of 2018, merck's programs further only in 2010. so come in with a decent price. try and get as many of their parents using the gilead drug so that when

gilead is an interesting trade, if nothing else based upon what under performed versus what hasn't andation -- >> do you mean a pear trade. >> to be long gilead so make yourself essentially sector neutral but find a company under performing and why have the under perform but valuation is interesting at gilead. >> last question for you, meg. when you talk to investors, are they actually making any sort of portfolio changes based on what you outlined? >> i talked to mostly biotech folks so they are just making picks. for the most part no but i'll come back to you if i get a better question. >> meg terrell with stock therapy. >> love stock therapy. any kind of therapy, guy. >> good point. >> i don't know about any kind of therapy. i'm sure there are plenty of therapies you don't want. anyway, shifting gears because dan is not here anymore. he's -- >> where did he go? >> at the smart board looking at unusual options volumes. >> yes, in hersheys and this is speculation from time to time over the last decade of takeover chatter from here and there but the options activity speaks to that rumo

gilead's a good one. they have to make an acquisition. amgen is steady. the stock could go to 60 or four, who knows. don't know when the fda comes out with their decision. >> large cap biotech names. amgen is a name i like. gilead is trading at $88 which is ridiculous on a valuation basis with the potential growth that company has over the next three months. to place it in buy and hold category in biotech is very difficult. josh? >> i mentioned biogen last week. this name has been in the penalty box for eight or nine months but it's been consolidating. now you have an upwards slope in 50 day, 200 day starting to flatten out. this is the type of stock that once it gets going historically, really makes big moves. the other name i agree with on bristol-myers, bmy. i would look for a pull-back here. they have the pipeline, returning a ton of cash to shareholders, yield in excess of the ten-year treasury. all the momentum at their back in terms of the drugs they're working on and the areas of the market they are addressing. that's a really solid name. >> one m

it's led by gilead sciences coming -- gilead science of having his best day since february.ible sticking point is somewhat shocking price tag of $75,000 for a 12 week course of the medication. with: we will be talking the head of carnival cruise later on. what has caught your attention? abigail: american airlines is having its west day since october of 2015 after falling within 6% of its ipo price yesterday. stocks, is it a real rally? thank you very much. matt: tensions mounting in britain since david cameron and other leaders met for the first time since the brexit vote. here's a sample. >> we are leaving the european union. we mustn't be turning our back on europe. these countries are our neighbors, friends and allies. to start theready , without the enthusiasm you can imagine. we now offer a beacon of hope to democrats across the rest of the european continent. i will make one prediction -- the u.s. -- the united kingdom will not be the last member state to leave the european union. >> i am surprised you are here. fighting for the exit. matt: i want to bring in mohamed e

it's made by foster city-based gilead sciences.he company says it can be used by patients with and without liver damage. >>> meanwhile, harsh words from vice president joe biden today at a cancer summit in washington. >> we have to come up with a better way. what is the possible justification when a drug a life-saving drug is brought to market at the time it's brought to market it cost $26,000 a year? and 15 years later it costs $120,000? tell me! tell me! tell me! what is the justification. for that! >> biden also threatened to cut federal funding for companies that failed to share research results. he called on scientists to be transparent with their findings. >>> looking at the big board on wall street the dow is up about 288 points. global markets are rebounding after last week's "brexit" sparked a sell-off. that's good to see. dow is in positive territory. >> absolutely. time for our forecast with roberta. >> the weather has been changing minute by minute. in fact, if you look at our live weather camera, this one atop sutro to

gilead said that it is the first drug to treat ale strains of hep c and the company have been criticizede other type of treatment it makes. they say the new treatment will cost half as much compared to the most commonly used regimen for certain types of hep c. >> talk about the sound of music. ♪ >> why this bay area man thought he might never be able to play this spe >>> coming up on abc 7 news at 6:00, the abc 7 news i-team has new information on the oakland police sex scandal. the woman at the center of the scandal reveals the event seven years ago that sent her into a life of prostitution. >>> also a controversial plan one city is using to take the homeless out of jails and put them into housing. the chances we could see it in the bay area. >>> and fighting for closure. the effort to help widows about to lose their homes. it is all coming up in half an hour in abc 7 news at 6:00. >>> at( bay area musician got a phone call he never expected. san francisco police called him yesterday to say they found his stolen violin. ♪ >> that is 45-year-old clinton hicy and he is good. playing his f

gilead is a good story. because of its focus on hiv medicines.he more mainline pharma companies -- merck is the world's largest maker of vaccines. it is a business that absolutely make sense. why wouldn't you want to invest in a company that is preventing instead of solving problems? let's head to the markets desk. shery ahn has a check on company movers. shery: with treasury yields falling, it's not surprising that we are seeing banks taking a hit. the 10 year note falling to the lowest since january. falling for a now second consecutive day. citigroup falling almost 3%. along with financials come insurers are having a tough day as well. trading at the lowest level in more than a month. prudential at the lowest level 12.e april metlife also falling 2.2%. energy companies also falling for a third session. not surprising to see this longest run of declines for energy cup is given that oil is now trading below $50 a barrel. chesapeake energy seeing the worst day in a month. a plunge of more than 9%. yesterday, we saw ubs cut the stock to a cell. --

it is boosting the nasdaq on the index, gilead news earlier this morning that was approved by the fdax breached the february lows. looking at a five-year chart, we see how precarious this is. last fall, the uptrend started to reverse. biotech test support over and over again. will it hold or will the biotech their market get worse? vonnie: thank you. mark: let's get to breaking news surrounding the vote on the leader of the opposition labor party. cqua is ina westminster. jeremy corbin has lost the vote of confidence. francine: there are press that jeremy corbin has lost the vote of confidence. mps were29 labor voting in the house of parliament behind me. it does not mean much because it is not binding so this would he and advisory. unseat jeremy corbin. confirmation if the news is true that he has lost the vote of confidence. electionou trigger only beip, it can triggered if jeremy corbin resigns. he has made clear that he has no intention to do so. if 20% of the party possible lawmakers put their names to a letter backing a rival. we heard from jeremy corbin the last couple of days

judge has freed gilead sciences from any liability on the fight with merck.he judge found a pattern of misconduct by merck which includes lying under oath and other unethical practices. >>> sorry stocks to watch. fedex is raising its quarterly dividend by 60%. fedex's profits have topped forecasts the last two quarters, and that's thanks to a surge in online shopping. >>> united natural foods is raising its financial outlook. whole foods accounted for more than a third of its sales last year. and 30 quarter profit beating forecasts that's thanks to a 21% rise to rv sales. and it is the summer diving season and we might see more of those rvs on the roads. >>> let's move on to other corporate news, cisco reportedly receiving nominations from other executives. "the wall street journal" cites an internal memo. the executives were responsible for a number of key products leaving the company falling on what sisco calls a disconnect. >>> an executive at twitter. executive shuffles at twitter replacing the head of the products team. twitter does not have a permanent

abigail: the biggest drags on the biotech sector and the nbi are the giants including gilead, biogen.a look at the chart here, with the bull run reversing into a bear market last year. on monday, the biotech index actually put in a new lower low. typically this is bearish, which tells us sellers are gaining strength. a bit of a cautionary point here on the biotech index. it will be interesting to see what happens in the third quarter, david. david: abigail doolittle, at the nasdaq. for more full coverage visit pharmago on the bloomberg terminal or bloomberg.com/pharma. coming up, the latest on hershey, rejecting the offer from mondelez international, saying they did not see much complementarity. we will be talking about it next on "bloomberg markets." ♪ david: this is "bloomberg markets." i am david gura. vonnie: i am vonnie quinn. erik schatzker sat down with the ceo of barclays in london, and started by asking whether barclays needs to raise additional capital. >> the amount of capital we free up by selling a stake in africa is quite significant. we have all the capital and liquidit

gilead baptist church northwest. >>> a deadly officer involved shooting. d.c. police are investigating whether a 63-year-old man tried to commit suicide by cop. officers say it may have been sherman evans himself who called police late monday night. police found him there with what turned out to be a bb ginn. he weapon. officers opened fire and evans died at the hospital. >>> this is video you're only going to see on news 4. we're now getting a look at that confrontation between the gunman and the secret service and how it escalated outside the white house last month. in that video played in court on monday, you see 31-year-old jesse olivieri of pennsylvania there. he can be seen refusing to drop his gun near the south entrance of the white house. he's eventually shot by a secret service officer and then the gun is kicked away from his hand. moments later he received medical attention. they said police did nothing wrong. >> they did all the right things, it was textbook. unfortunately, this person wanted to get shot. he certainly wasn't listening to the directi

she worked in the youth ministry division of mount gilead baptist church.say she was taken too soon. >> we're horrified. we have to realize we have to keepoi step at a time. >> d.c. police made an arrest in this case and they pressed charges in goodloe's murder. >>> a deadly shooting is one of many violent incidents in the city this weekend. someone shot two men on f street early yesterday morning in northeast. 20 minutes earlier a man was stabbed on columbia road northwest. d.c. police are also investigating stabbings on benning road northeast and on valley avenue southeast. all of these victims in these attacks are expected to survive. >>> we just found out that police are now reviewing some surveillance video. this after a fan fell from a second deck following the nba finals. they say this happened during a fight with another fan in the arena. it happened right after the game. the 20 year old we know is in critical but stable condition in the hospital. so far no arrests have been made in this case. eun? >> angie, thank you. >>> right now fans in clevelan

the pill is sold by gilead sciences. and without liver damage, which could make it easier to use than other drugs recently approved by the fda which are taylored to viral strains or liver disease. researchers at washington state university have come up with a software tool that could speed up the development ofe1 vaccine for livestock and it helped scientists analyze bacteria. and this could further develop methods of keeping livestock disease free and running health iyer farms. >>> and car ownership is shown to show how much exercise we receive. londoners found travellering is an important form of exercise. owning a bicycle has the most transaction. and car ownership leads them two to three times less to exercise. >>> and apple wants you to take a deep breath and let it go with a new watch on your list. the new breathe app will join other meditation apps that will help find calm and available on the apple watch thisáo@ fall. from t from t from the nasdaq, i'm jane king, here's to your health. >>> the w!js"'s largest dia

the fda gave the go-ahead to the combination pill from foster city-based gilead sciences. it's designed for patients with and without liver damage. >>> one missouri man started his construction talents with legos as a child and now he built a home of his own out of shipping containers. here's a look at the final product a two-story home in st. charles missouri. it's made out of eight shipping containers gathered from a yard in north st. louis. the house has four bedrooms, 2.5 baths and cost $125,000 all told. he says that's a fraction of the price it takes to build a standard home. and now he is working on a tv show to show how he did it. >> can you tell in the video it was near a major thoroughfare, highway or busy street? >> how would you like to live next door to that house? i wouldn't like to live in it or next door to it. >> is it an eyesore or -- >> i think we have been trying to be politically correct here this morning. it's ugly. >> ugly. >> poor guy's wife who also lives there with him. >> here's the thing. if he is getting a tv show, he is probably not going to b

that's just about in line with what some analysts were expecting see gilead up 4%, tyler. back to you. >> meg, thank you very much. volkswagen, which we just mentioned a moment ago, just ordered to pay up for its admissions cheating scandal. wait until you hear how much the automaker has to fork over. it's a lot. and is the worst even over for vw? "power lunch" will explore that in two minutes. why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any

. >> you want to talk gilead? >> well, i don't have it in the halftime portfolio or my own. like the move certainly, and it took a big hit. >> and the best day for the ibb in two months. >> yes, a big hit, and fell by $2 a day ago, and here, it reverses that and goes to 83 to the upside, and a lot the like about is secelgene as well. >> steph? >> well, you want to be careful in biotech, and the political situation is not going away any time zoon, and have to deal with the elections in the faushlgs and even thereafter what they will do on the drug pricing, so you won't see the multiples that you have seen over the past year, and that said, some of the biostocks are down, and hammered like alex yon is the one i have owned, and sit down 25%, and it is orphan drug company and maybe they are more insulated on the pricing situation, and that i have a great pipeline so i have been slowly picking, but underweight on this sector. >> josh? >> yes, disburgs is surprisingly low on the biotechs meaning that they are moving a adds bloc more than ever, and they are not supposed to do that,

i think it's one of the things that held back gilead, gild.that because of unusual weekly activity so i might be a very short-term trade in that one. bought that today and weatherford in the energy space. that's one of the stocks we talked about again. top of the show, drilling, production, i love this one and i bought it today. >> let's throw up shares of tesla and pete, yesterday was an interesting day for the stock. >> yeah. >> because of what ron baron said on the billionaire investor, what he said on "squawk box". >> interesting. >> ten to 15 to 20-year. >> 20-year and he talked about $300 million investment he predicts could be in the bills. it's incredible but also tied in the battery factory being a much better factory. he thinks it will surpass the autos themselves so there was a lot to that whole thing and the paper that was coming in there, option paper was absolutely staggering yesterday in the weekly options. i jumped in late in the afternoon -- >> that's why i bring it up. this is the epitome of "fast money." i sold it today arou

regeneron gilead. he's got profit. but the others don't. it is hard to say, are they cheap, but they are 50% less than the used to be. shery: when you are looking at these companies, are you taking a look at valuations or some break or therapies? -- breakthrough therapies? >> indeed, the fda has a classification for breakthrough therapy in terms of new products. the technologies are very important and the speed of technological advance now is faster than i have ever seen in my career. things are really moving. new drugs new technologies are arriving. with that run pitfalls and when they don't work, stocks go down but when they do they go up. you are seeing the emergence of immutable oncology to treat cancer. they worked off some original work in japan. mark is in there as well. the patent cliff has receded and the resurgence of research productivity has made a big difference. shery: that peak you mentioned, we are seeing not just stocks coming down but also the flowing market for ipo. the slowdown is just correspondent to what is happening

gilead sciences, all 52-week lows and move around a lot as momentum traders come in and out of them aggressivelyback to you. >> thank you, bob. amid the financial fallout, next guest is calling for political leaders to act rationally not emotionally. joining us now is former wells fargo ceo dick kovacevich. everyone wondering what to do to lead the companies and why are you so concerned about a global recessi recession? >> i think this is about political risk and not economic risk. and if the politicians act rationally and not emotionally and kind of calm down and behave that way, we will not go into a serious recession. if the rhetoric, however, is one of anger and punishment and retribution, i think people will be so concerned that they -- that the actual results will be negative that they'll run for the hills and could cause the market to go -- to collapse, if you will, or go down further than they are today. what has to happen is the politicians have to say that they're going to work together for an orderly exit of the uk. probably meenls simply that they'll have different trade relationship

you see gilead, celgene.though they're good news today, the report does say that 2017 is likely to see an exceeding of that rate. so we're going to revisit this next year. >> we saw a huge move lower in the ibb. we're not seeing a move higher here. a lot of the stocks, biogen was down to a new 52-week low in yesterday's session. >> a lot of these stocks are feeling a lot of pain for other reasons including the elections. you have all of the political pressure coming. folks are happy for good news today. they're waiting for more good news to really drive the sector up. >> meg, thank you. straight ahead, between tesla, batteries and solar, what is really powering elan musk's empire? shareholders seeing record records in 2016 s that good or bad for a long term growth? plus, they boost the fraccers. we'll look at the effect on the energy market. that is ahead on "power lunch." hey, honey? yes, dear? you're washing that baked-on alfredo by hand, right? (loudly) yes, dear. dish issues? cascade platinum powers throu

michael ye is seeing amgen and gilead in the current list off environment as a weakness.derperforming the s&p and dow. jonathan: moore bloomberg and market reaction next. ♪ guy: this is bloomberg . i am jonathan ferro with guy johnson. 25-minutes into the session. a move to the downside. from thec decision british people to leave the european union. there is no drama in conversations. no friction between european leaders and british leaders. guy: i think there are some friction in terms of the timeline of getting things done. that is where the acrimony may come through. there are political factors in the mix. my take away is that anyone who talks about smart money should. everyone anticipated this would be easy. the brexit wouldn't happen. jonathan: down for asset classes. full coverage on bloomberg tv and throughout the weekend. special coverage on bloomberg tv and bloomberg radio. ♪ >> it is 10:00 a.m. in new york, 3:00 p.m. in london, and 5:00 p.m. in hong kong. i'm vonnie quinn. mark: i am mark barton. it is bloomberg "markets" on bloomberg television. ie: gl

biogeneral, regeneron and gilead have collapsed in the month of june.is straight line down didn't happen in the last two days, been going down since the brexit thing. low volatility ones have been doing a lot better. what's low volatility? well, you're dealing with con ed, for example. and the read simon property on the low rates, and of course your traditional consumer names, dr pepper and clorox and campbell's those have been doing well. so low volatility, dramatically outperforms high beta in these kinds of situations. then you've got your usual suspects that are 52-week lows potential slowdown global names, global economy. there you see the airlines sitting at the bottom. back to you. >> thank you, bob pisani. those brexit fears have people piling into safe haven as bob mentioned like gold, treasury bonds and utilities. our next guest says he would not add to them and also sees four things that can push us higher. jim paulson, also with us david kats chief investment officer. despite the downward spiral in those banks, he recommends holding u.s. ban

judge has freed gilead from paying assets.applied for the patents including lying under oath, and other unethical practices. >>> we should also tell you about global market news. a new brexit poll finds that the leave campaign is coming up. the 47% of voters voting for leaving the eu. at times, yougoff poll say 45%. and let's check out the currencies this morning. the dollar is down against the euro at trading at 1.1366. it's up against the yen. the pound is right at 1.4566. >>> hillary clinton clinching the democratic nomination with major primaries taking place in six states including california and new jersey. john harwood joins us in the studio. your siri just went off and said, sorry, i didn't get that. like bernie sanders, sorry, i didn't get that. >> the interesting thing when is bernie sanders going to confirm the ap delegate count. he said overt weekend it would not be accurate if journalists said hillary clinton after tuesday had clinched the nomination with enough delegates. >> and superdelegates right? >> yeah, but