could ever beat the great merck? >> well, merck has a biggest oral pill for type 2 diabetes on the market. between 6 and $7 billion a year. so we thought with our new disruptive once or twice yearly therapy, we ought to go head to head in a clinical trial. therapy. we thought it would be good to run a head to head study over a year when show what our medicine does against theirs. and we saw over the course of a year, we nearly doubled the glucose reductions and tripled the weight loss compared to their medicine. >> i read your release. i said, in a perfect world i would say, i don't want to use this merck product anymore, i want to use what intarcia has. but that's not the way it works, right? >> no, because today there's only pills and only injections for diabetes type 2. >> and why is that? because it's such an alien thing to put in your body? show me how alien it really is. what have we got here? >> right now this is called "buddy." and doctors in our clinical trials on before they ever touch a human being with ou

i think for merck, it was not a strategic product.y're refocusing the company onnen colle oncology. >> we've got a debate coming up in october with the republican candidates. i intend to ask them how do they feel about drugs that cost $400,000. what would happen without your drugs to these people? >> i mean, we are treating devastating -- most of the diseases are lethal. the patients would use a lot of healthcare resources that they're not using today thanks to our drug. it would be very bad news for those patients if these drugs were not available. >> why would you bother to do it if we didn't have legislation? >> that would reduce the incentive to develop these kind of drugs, no question about it. >> you have got in the pipeline, you have five commercial drugs already, nine in the clinic. which ones do you think next year we'll be talking about? >> we've got the product for muscular dystrophy. there is likely an advisory committee of the fda coming in late november to decide whether our product should be approved or not. we're looki

when merck passed gm in 1985, people said it's ridiculous what merck is valued at. should not have bought cisco at 600 billion. >> no, there was a period where things didn't pay off, and lots of periods where it did pay off. >> all right, jim. i'll see you out there somewhere. war room maybe. i want to go to the war room. i need a helmet or what? i don't know. see you. >> thank you. >>> u.p.s. reporting quarterly proo profit of 1.39 a share. the company giving a forecast for the upcoming holiday season. morgan brennan has more. what can we expect? >> on the conference call still going on, u.p.s. releasing its peak holiday season forecast. u.p.s. expects to complete 10% more deliveries between thanksgiving and new years versus this time last year. in it's planned peak day, the busiest day it expects of the year, it anticipates delivering 36 million packages worldwide. in terms of the way the company is looking to execute on this strategy and these higher volumes, it says it is going to be collaborating with customers to make sure capacity is in line with those custom

pfizer getting a lift from oncology drugs, merck helped by lower costs.ristol-myers driven by results of its cancer and blood clot medications. all looking up. pfizer up quite strong. let's start there. i got some commentary on that. basically it looks like sales of prevnar were good. they beat because of better revenue. and they beat on gross margin. >> stroke drug, terrific. there was a great basketball player who played for the 76ers who recently passed away, moses malone. he talked about when they were on that great team, '83, '84, he kept talking about four, four, four. this is four, four, four. you know what they're doing it with? cancer franchise for bristol-myers on fire. pfizer, unbelievable pain. this lyrica drug is unremarkable. the stroke drug is remarkable. all we ever do is talk about biotech, quietly these guys have built up their franchises. >> the coe, mr. reid likes to talk about the tax rate a lot. the fact that he's unfairly penalized by being a u.s. corporation, as opposed to some of his competitors. then we talk about mma what they c

. >> reporter: i have to tell you, merck boulevard has been lined with people well before the doors of the church opened at 9:00 this morning. cardinal dolan is inside, and just a short time ago, officer randolph holder's family arrived. we have video of them coming about temon minutes ago into a church where people are actually signing a book of memories to get in, but even before that, many offered memories of the officer whose life was cut short. with each step, the nypd's honor guard left randolph holder's flag-draped casket closer to the alter where thousands will pay their final respects to him over the next two days. those who lined merck boulevard early to say good-bye say the emotions are already evident inside. >> people is just weeping and crying. they can't really understand. >> the officer crying, everybody's crying. everybody is. this is a young man laying there. it's awful, awful. >> reporter: it was a week ago that holder, a five year vet of the nypd was fatally shot in the head in a gunfight while pursuing a robbery suspect in harlem. the captain of his precinct says t

thousands upon thousands of police officers, even civilians to gather here inside the church and also on merck boulevard and the side streets. in fact we've been talking with members of the community. people who didn't even personally know officer holder, they want to be here to honor him. nypd officers have been clearing the streets in the section of the jamaica queens are where new thousands are expected to attend the funeral of officer randolph hold they are afternoon. as fellow policemen brought him to the church for the wake yesterday, many cried out and wept. >> a lot of people, his colleagues, police people, everybody was sad, grief. >> reporter: he idn't know officer holder personally, but fenolt he had to pay his respects. officer holder, only 33 years old, was shot and killed eight dad ys ago by a suspect police describe as a career criminal. holder will be buried in guy ya in a where he grew up and where his father and grandfather served as povicemen. he said the death has left her heartbroken. >> it's really hurtful thing. they c 't make a live -- they come to make a living. al>> i

there is another drug in 24 class known as cept inhibitors being developed by merck. in addition to lilly's stock getting hit today you did see a little bit of a read-through into merck as folks wondered if we'd see a similar negative outcome tore that drug. some positive read-through to those drugs from amgen and rejenneron sanofi as analysts said this removes a potential competitor to knows those. you did see the stocks of those companies going up. another company we should mention, asperion. another drug maker working on another kind of cholesterol drug aiming to lower bad cholesterol. initially that stock rose as well as the others from amgen and regeneron sanofi because folks thought it would lessen the competitive landscape. but as the day went on that stock fell as folks started to worry that company would need to do what are more known as outcome studies before getting approval of this drug. because this market is so big, mltz of patients in the united states, billions of dollars at stake, a lot of stocks moving on this big negative surprise from ely lilly. fo

merck which also benefited from cost cuts last quarter au gains of 1%. >>> fellow dow component du pont saw its sales and earnings drop in the third quarter. the strong dollar and weak agricultural demand in emerging markets contributed to the decline in profits, but the interim cea said he was considering potential deals in the ag industry. the stock climbed more than 2.5%. >> ibm says the sec is investigating the way it accounts for certain revenue from transactions in the u.s., uk and ireland. ibm says it learned of the investigation in august but disclosed it today in a required regulatory filing. ibm says it is cooperating fully with the regulators. the disclosure sent shares of big blue down 4%, didn't need that. separately the company's board has approved a $4 billion share buyback. >>> ibm shares weighed on the blue chip index along with disappointing economic data just one day ahead of a policy statement from the federal reserve. the dow jones industrial average fell 41 points to 17,581. the nasdaq dropped 4 and the s&p 500 was off 5 points. >>> walgreen boots alliance will bit

biogen, merck, and gilead 7.s one month. >> valiant is specific because, basically, they're going off them, and all they're doing is taking companies not spending r & d and raising drug prices. you're looking at all the other ones too. especially companies like a gilead or a biogen that are one or two drug ponies. >> you are looking at biogen, merck, gilead. you look at the weakness there, and do you say i got to buy tease here? >> not those guys. i like merck because they're more diversified. my issue with gilead is you have one or two drugs, and when those things come off patent and if you don't have replacement, that stock can get hammered, and we've seen that hamm happen in the past with am gen and other biotechs too. you can do the in a moment yum just like we're talking about, but when the hedge funds get out, if you are still in it, you are going to lose a lot of money like what happened to valiant. it's such a big hedge fund. >> it's a big everyone play. >>. >> you want to take the other side of the gilea

merck is testing a similar treatment. meanwhile both amgen is trading higher. those companies received fda approval for their drugs. >> how about lilly? cramer this morning said you buy it here and it was down like nine points today, 9%. >> talking about both sides of my mouth. one, i am surprised they are in this space. the cetp space. nine years ago pfizer absolutely blew up this space. it's no fault of theirs. raising good cholesterol by this class of drugs doesn't work and the drugs actually cause harm. this is the third failure in that space. now that we've got that out of the way the question of why they were in this space. lilly is an excellent franchise to be in. it's very safe stock. apropos of value versus growth in is a good value stock you should own. the dip today is a buying opportunity. >> not on your list, pete. >> i was. i was in there and flipped out of it to buy disney when disney got under 100. i'm looking at it again now because along with jim cramer, look at the chart. the 200-day moving average shows you -- it got right down to that today

merck. those names are down.hen on the other side you have the energy names. >> i know. >> you have a big move in oil. i'm more focused on the move in oil because i think there's tremendous opportunity there. i don't know necessarily if the move in health care extends to the down side. others on the desk probably know better than me, but in oil -- >> it confuse medicine a little greatly when oil has risen, the market has risen. >> true. >> not necessarily getting -- that's breaking apart. >> it's breaking apart, but i think that's more about what's going on in health care. >> we're seeing a little bit more of value versus growth. that value versus growth trade kind of thing. you have energy. you have industrials doing well. look at technology. you have actually value tech doing better than high growth tech. i think this is kind of a pause here. we have to wait until earnings. i think earnings are going to be decent. so far we've actually gotten pretty good earnings. that might just at least settle it down for a l

wasthe merck scenario, that -- there was no beat on the sales number.r quality beads from pfizer and bristol-myers and slightly novartis --rk and merck and novartis. they have issues with regards to the eye care business. scarlet: perhaps this would put it behind company. in terms of the price increase debate we've been hearing, it's been very politicized -- our companies backing off raising prices on their drugs? sam: no. let's not forget this is a big discussion about a specific group of companies. where you see those large price increases. on what are essentially generic products. this question was asked of all the companies in the quarter. drugs such as the bristol-myers cancer drug, they are having a push back. -- no pushback. innovation leading to major advances in treatments for patients in extra survival is not seeing pressure. you see pressure on the types of drugs -- a company like pfizer and merck say they are investing in r&d. nt.s not the same as valea farmer just came up a bunch of big patent expirations -- pharma . beattoday, bristol-myer

that is also thanks to earnings by company like pfizer and merck and bristol-myers. betty: let's get a check of the headlines. mark crumpton has more from the news desk. and athe white house bipartisan group of lawmakers have reached a tentative two-year budget agreement to avoid a debt default and reduce the possibility of a government shutdown. the proposal already faces conservative opposition. john boehner big knowledged that the agreement is imperfect, but he called it "a good deal." a voteis especially -- is expected in the house on wednesday. the u.s. and israel were the only countries voting against an embargo in cuba. vote had the highest ever number of countries voting , 191.demn the embargo in other news, the next time international talks are being held over syria's future, iran could have a place at the table. u.s. officials say, for the first time, an invitation has been extended to iran to participate. it is a shift in strategy for the u.s. and its allies as they seek to halt the civil war. iran has not yet accepted the invitation. the next diplomatic r

stunning decline in lilly and merck. put up lilly and merck here. down 7%.billion off of lilly. piper jaffray had a note saying this drug would have been 2% of their sales in 2019. the consensus was 1.5%. that seems like a dramatic decline considering it would only be a small contribution to their revenues. the ipo market is starting to get exciting. put up that one for ferrari. ferrari announced the terms. this was a surprise given how tough the market has been. they came out of nowhere. high-end sports cars. 17.2 million, 48 to 52. talking about roughly 10% of the company going, raising about a billion dollars. the company would be valued at roughly 10 billion. look at what the shares are and the way they float this particular thing. ipo about 10% of the shares outstanding. ferrari family will keep about 10%. fiat chrysler will have the remaining 80% but are saying they will distribute the remaining 80% to shareholders l early next year. we'll see if that happens. before that, the markets have got to absorb the biggest ipo of the year, it's this week. that

. >> merck, biotechs are getting killeded buy, sell? >> no, merck is very tampa bay leer, i don't want to touch it. helping it, we have a lot of the drug stocks. a reordering in the drug stocks, the one i like, it has both diabetes and anti-alzheimer's is lilly, lilly got hit really bad today. let's go to curtis in north carolina. curtis? >> caller: yes, hey, jim, thanan to you and the mad m mey team for taking my call. i can't wait to see you on the debate feel. >> that will be fantastic. >> caller: raytheon, what are your thoughts. >> i think ray thighen is real good, i happen to like lockheed martin now more, because they were down today, but raytheon is terrific. all these countries need defense these days because of all the troubles worldwide, that means you need missiles. and you need to be able to shoot them down. how ababt key in florida? >> caller: kramer, looking at paypal long term, in and out. mark cap, looking at 41.71. investment. >> this is a position owned by the chapel trust. we think it's bottoming here. it's been a te

for more, i am joined by the ceo of merck kj a. great to have both of you with us.give me. i will not be the first to point out there is another merck and you are trying to differentiate yourself and you have done it now. you are reorganizing the company and rebranding it. classes mainly a consequence of the transformation. the company today is not what it was 10 years ago with the acquisitions. the branding gives us his own character, bold and vibrant and focusing on what happened. about thek to me organization. you have been at the helm for eight years and the time has come to a close. talk to me about how the company has changed over the last eight years and what your focus is now? turned from a conglomerate to a company focused on three areas. health care, performance materials, life science. leading positions in all three sectors, very much focused on r&d. i would even say we bring the best of both worlds together. we have a long and sustainable and are with the family very much results oriented and before mr. evan this combination now has to be expressed. in t

some drugmakers like merck did not comment at all, but pfizer and novartis were able to tell us theyaking sure the drugs are safe when they finally go out to americans. david: thank you very much. our bloomberg washington bureau. still ahead, the u.s. economy slows down in the third quarter. we look at what it could mean for janet yellen and the fed as they consider whether to raise interest rates. ♪ david: welcome back to "bloomberg market day." abigail doolittle has the latest from the nasdaq in midtown manhattan. abigail: we are looking at earnings, with many companies disappointing, starting out with nxp semi conductor, plunging the most in four years as the company unexpectedly forecast a decline in fourth-quarter revenues when the street was looking for an increase. the company talked about a slowing global economy, companies pulling back orders. the ceo said he does not see the matter turning in the near term. the street remains somewhat bullish, with many analysts talk a buyings as opportunity. buffalo wild wings reported a disappointing third quarter, missing sales growth es

citizen who spent decades working for merck. a man from china was rewarded for discoveries concerning a novel therapy against malaria. new hampshire governor maggie hassan will run for u.s. senate. our sister station, wmur, breaking the news. the second-term governor is the first democrat to announce she' s in the race to challenge republican u.s. sen. kelly ayotte. hassan is considered the best challenger for ayotte in a swing state that could be pivotal in the contest to control the senate. erika: democratic candidate or clinton unveiling new gun control measures. she will propose legislation that excludes some gunmakers and distribute her. she also backed efforts to stop selling guns with background checks and band ms. clinton: when it happened, people often say that they offer their thoughts and prayers. that is not enough. how many people have to die before we actually act? erika: clinton has emerged as one of the fiercest proponents for tougher gun control after reignited debate over gun laws in the presidential campaign.

twitter, dow, dupont, merck, alibaba, so many more reporting along with apple. then there's the fed meeting. and all of it coming against the backdrop of the best month for stocks in four years. can this week keep it going or grind it to a halt? >> suddenly we see the market take off. absolutely incredible run. you're talking a move up 4% today, just to get it back up over 15. we start it off way back in september. they get back to october, in the mid-20s. now back at the 15 area. it's been sustained underneath that for a while now. i think we're seeing right now this great rotation. energy was initially, when you got into the middle of september. that was really the catalyst starting to push things to the upside. pharmaceuticals have basically stalled for a while now. but you got different leadership. because of that, i think this rotation has allowed the market to continue to elevate up to the upside. >> retail rollover too, which is really interesting. it sort of started last week, maybe a little before that. you have some downgrades today macy's, michael cor

merck will have of a competing product.cheap for a reason, the market is not seeing those earnings necessarily being as robust once there is' competition. >> the hillary clinton effect have any effect on pharma right now? >> i think that's been a weight on the entire sector, gilead has held up better but that's going to be an issue weighing on the market. i don't think this specific reaction right now after hours, it's only a couple of hours, is going to be a big impact on the stock. longer term -- >> tim seymour, you own twitter, correct? >> i do. >> so as we a waited for those results which should hit the tape next what are you hoping for? what's realistic at this point? >> i thinked to understood going to be definitely about a little more substance or formal substance i should say. we already got the guide on the third quarter numbers, they filed the release a couple weeks ago, we know they will be behind on the range, and i think if you ultimately look at the stock to me it's the early stages of a long-term monetization

twitter, dow, dupont, merck, alibaba, so many more reporting along with apple.hen there's the fed meeting. and all of it

merck still has one in trials. stock.bit of a this morning's trading. on bigdo you have a view pharma in general? >> from time to time we have owned them. there are times to come in and times to come out. erik: you are a value investor. i wonder how these volatile markets are treating you. there are some very sound companies who got hit pretty hard. how does it affect your business? >> it's challenging. we will probably talk about passive versus active. there are a lot of trends in the environment that make what we do even harder than what it is that we do. which is sift through companies and try and find good ones for our clients. it is a trend of passive growth. stocks just aren't performing the way you would inc. they would because of macro events -- the way you think they would because of macro events. we have been in business for almost 30 years. some of them have been with us from the beginning. we have very patient investors. we like to think for the long-term. where would you rather be right now, equity or credit?

when chancellor merck and president hollande arrived at the european parliament they face aid continueet by challenges. the u.k. conflict. youth unemployment and the linking affects of the greet debt and eurozone crisis, it's the humanitarian crisis and the arrival of nearly half a million refugees irefugees in europe ths created rifts between countries willing and able to help and those who want to keep them out. in the mediterranean, e.u. warships have begun patrolling the waters. it's hoped this joint e.u. task force will help tackle people smuggling 3,000 people have died trying to make the crossing to europe this year. hungary, the check republic, romania and slovakia have reject the the noons share refugees numbers a is who the continent but president hollande urged them to overcome differences and rise to the challenge. >> translator: with each crisis fears emerge, we have to live with fear. but we must not live dominated by fear. nonetheless, there is a temptation to retreat in to the national shell each time there is a cries, nothing is more in vain than to turn inwards to sav

we're seeing read through to other companies including merck.lysts are trying to parse out how many similarities we will see there. some are taking this as positive news for this other class of cholesterol drugs, companies like amgen, regeneron, and sano sanofi. they are thought to be multibillion dollar drugs. there's another stock which is esperion. it also has an experimental oral drug in the pipeline taken by pill. initially you saw the stock drive of esperion when folks thought it was removing a class of competitors. now it's declining when folks got worried that you have to see more studies showings what the cholesterol drugs do. a big day regarding cholesterol drugs. >> esperion is that a cetp inhibitor like littlly's and mek he is or a different class of drug. >> a different class. >> meg, thank you very much. so what does it mean gr your money in the pharma space. let's bring in tony butler covering in pharma. you think that the stock reaction is a bit overblown. at the same time your estimates for this drug and the impact on lilly was

disney up by 15% and merck by 25%. so even within those realms of large mega, mega cap stocks there could still be value if, of course, you believe what the analysts say about what the potential for the stocks could be. >> dominick, thank you very much. mandy? >> so with the s&p 500 down more than 4% since july, is it time to add some big caps to your portfolio? let's bring in two money managers who are finding value there. ted morganlander and mark travis. gentlemen, great to see you. which particular mega caps are you looking at? >> we love cisco as well as microsoft. let's go through cisco for for example. they have $40 billion of net cash on the balance sheet. the stock multiple is nine times and our upside potential is roughly $35 a share with a 3% yield or dividend and that dividend will be growing at roughly 10%. also microsoft, for example, same kind of consideration. $55 stock price. it's a company that's going through a little bit of a transition but net cash on the balance sheet, $75 billion. dividend yield

lots of dow components reporting their earnings, including du pont, merck, pfizer, and apple.ta front a read on durable goods orders and the federal reserve begins its two-day policy meeting. and that is what to watch tuesday. >>> toyota is once again the world's largest automaker by sales. toyota sold about 7.5 million vehicles this year through september, and that's more than volkswagen's 7.43 and general motors' 7.2 million. volkswagen has been in the lead for the first half of the year but many say the full impact of the emissions test scandal is yet to be felt. that scandal was disclosed at the end of september, and it is expected to show up in fourth quarter sales. >>> "the new york times" reports that uber has obtained a 60 to 70 billion dollar market valuation as it seeks to raise another billion bucks. according to the report, the san francisco on-demand ride hailing company was raising its eighth funding round in five years and separately newly compiled data obtained by the "wall street journal" shows that uber use in new york city quadrupled in july. >>> well, the a

we look to you about price increases by pfizer and merck. alix: the s&p 500 is headed for its longest rally this year. we will show you why it happened. scarlet: we will hear from paul tudor jones. what is behind his latest investing insight? stay with us for his exclusive remarks. ♪ alix: welcome back. will head over to the markets where julie hyman as a check on movers. a lot of gainers to talk about. julie: i am looking at the best performers in the s&p 500. there are not necessarily fundamentals that are driving them higher. micron, this stock is up by 10%. it came out with profit and sales late last week that drove the stock higher on friday. that rally continues today. the magnitude is larger than it was on friday. joy global, we are watching that maker of mining equipment go higher but not seeing any sort of fundamental news and driving it that way up 7.5%. united rentals, another equipment company, up by 8%. , upgraded to hold over deutsche bank largely on valuation. what all of these have in common is that they are some of the very

deirdre: the tone did see more merck zhuzhou bided they and hillary clinton. what was your take to raise the stakes for this looming budget discussion? >> no surprises he believes republicans but what struck me is like a professor republicans need to learn how to govern but the last time i looked we had divided government with that executive and legislative branch just as much she wants to put the onus on republicans him and his entire two administrations has done very little to govern with the opposing party the president turns to executive order time and time again he should take his own advice. deirdre: we are thankful for your comments as always. and also our democratic strategist. more on the international issues that the president spoke about p discussed what is the way space in syria with the cooperation iran. >> i did not see after that speech suddenly is 60 nation coalition to line up behind him. are ron and a side makes up the coalition at the moment the rest of the world makes up hours. i don't think people are fooled by the current strategy. deirdr

merck,-myers squibb, they are watching for this price gouging scandal to go on.ally, due tech stocks power the stock market, at least as of late in the fourth quarter? we have seen some leadership change, especially since the market bottom and in august, so it tech stocks are really big. we kind of need them for the market to rally, but you know, it it is a good week this week, and things could change next week, too. absolutely, as, we have seen with the earnings reports. what is this do with the strategist' targets? peter: there was a big selloff -- joseph: there was a big selloff and bloomberg surveys was 2150, and we are only at 4% right now. we are 15% away. there are some people who capitulated that there were banks that were really cutting and now there are people who didn't do that and they are the winners. that: is anyone saying they are going to be raising their targets after this? anna-louise: there might be some upside to the target at our sbc c, which is00 -- rsb $2100 right now. he just said he had been surprised with how big and how strong this rall

a lot of earnings including results from apple, pfizer, merck, exxon, dupont, starbucks, twitter. the two-day fed meeting, on wednesday, right here on cnbc, the republican presidential debate. coverage at 5:00 p.m. eastern time. as far as stocks go, jim, october remains the best month since 2011 for all the major indices. >> we have seen an incredible rotation out of health care, out of retail after the vf corp numbers last week. into industrials. into technology. the financials have held up fairly well. not great. not bad. insurers have been good. visas of the world have been good. the money sloshing from health care into the industrials and tech helped the s&p. the rotations, these rolling bear markets, have been positive for the s&p overall. when you go through the charts, a lot of stocks are damaged, but in the end the big cap stocks, a lot look good. >> just come around. at what point do we worry more about this -- put me to mind of it, you guys going to the debate. the debt ceiling issue. we had the two-year auction put off last week. jack blue writing an editorial in "usa t

worse, a few weeks ago ani pharmaceuticals announced they had bought two new drug candidates from merckould compete directly with acktar, causing mallinckrodt to lose value. not only have the worries about questcore come true, but the drug is way less proprietary when mallinckrodt she would out $9.5 billion for the company. i talked about the litigation with the ceo when they bought questcore. they bought a drug called tenactin. as part of that transaction, questcore was required to file with the fda for approval of tenactin in the u.s. mallinckrodt hasn't made any effort to get the company approved in the u.s. another company turned around and sued questcore, alleging antitrust violations. the lawsuit caught the attention of the ftc, the federal trade commission, which then launched a full investigation into whether questcore was engaging in anticompetitive behavior. and because mallinckrodt bought questcore, they're potentially on the hook for all of this. how about another red flag? holy cow. mallinckrodt's general counsel just right hand from the company not that long ago in the mid

merck shares are trading lower we are seeing declines in health care more broadly.ike is down after the stock was downgraded. those on the counterbalances for the increase in stocks. counterbalances that are being felt less in the -- than the other major averages. betty: we will talk more about nike and white might be time to sell. thank you, julie. a quick look at the headlines. mark crumpton has more from the news that. good afternoon. mark: the pentagon says the united states and russia have reached an agreement that minimizes the risks of incidences in the syrian airspace after u.s. and russian military aircraft came within close contact earlier this month. specific safety follow. to professional airman ship at all times, the use of specific communication frequencies in the establishment of a communication line on the ground. the u.s. and russia will form a working group to discuss implementation issues that follow. russia began flying bombing missions in cooperation with the syrian government earlier this month. they lead an international coalition that is cond

merck has been donating this drug and having consumers here in the u.s.here, pay for heart worm medication. so we're really close to eliminating those diseases as diseases of the poor in many developing countries. >> these are wonderful developments and thank you for explaining it to us. >> my pleasure, richelle. >>> the volcano in mexico resulted this morning, spewing ash and smoke. look at that, thousands of feet in the air. the volcano has been experiencing activity since july. nearby villages have been evacuated after being covered by thick coats of ash. >>> an artist in france has baked an animated cake. it shows a layered chocolate cake coming to life. alexander duebows calls his latest work, melting pot. i'm just hungry. and very impressed as well. pakman. i'm richelle carey. thank you for watching. john siegenthaler will be back in just a few minutes and then after that, an international hour with antonio mora. and you can always check out the latest news if you just go to our website. it just takes a minute. it's aljazeera.com. thank you so much

remain the leader of something we have gotten ahead on and we want to make sure we stay there because mercknd pfizer are developing similar drugs and mark is in the market as well. it's very competitive. oncology is the area where these guys are trying to make their mark. about the me ask you report that walgreens is interested in acquiring rite aid. not totally surprising giving walgreens has talked about expanding more the u.s. market place. , he hasince the merger said they could do a good deal of their looking across the landscape in the pharmaceutical benefits manager space, where that would allow them to control the prescription flow of it a bit more. it's not surprising he would describe -- decide to go the way of the retail channel. that's when a background is more than managing a pharmaceutical benefits manager, which is a very u.s. specific type of business. it's something that is management team would be new to. the market has been waiting to see what their big move is. is it buying express scripts or buying a rite aid? if this is it, it's going to make them a formidable competit

we hear from merck and bristol-meyers and juno, kite pharma. they can be very volatile. a private investor has launched this etf. 30 subpoenas, seven big companies, 23 growth companies all equal weighted. it's a way for folks to invest in this space without having to pick individual names. folks who don't focus on biotech and feel comfortable choosing names but want to invest in this area it's an interesting time to launch this etf after we've seen what etfs have been blamed for doing in biotech. bringing down individual names. people were selling on sentiment. it's an interesting time for immuno oncology. they were hot earlier in the year and have come back. is this a good point to get in or not? a different way of investigating it. >> is this actively managed? >> they rebalance it every six months. it was last rebalanced in june. the top holdings or top weighted companies are just the best performers since june. >> this thing was up 15.5% today. seems like there is an etf for everything. >> it does. i don't know why it makes me skeptical. shouldn't have anything to do

these are biogen, merck, gilead. these aren't endos for horizon or valeant. each one he said has no ownership with or affiliation with in terms of ovwnership or exclusive relationship. horizon pharma, endo, allergan yesterday, these companies all getting hit in the last couple of days over fear of their use of these pharmacies. we have this pamphlet which is what valeant uses. this is a speciality pharmacy in question here. the questions arise on it controlling financial interest in its speciality pharmacies. these companies all putting out statements saying they don't have controlling interests in the pharmacies they work with. all is very small portions of their revenue. for valeant even, analysts saying this is about maybe 10% of revenues going through speciality pharmacies. the question has to be raised with all the scrutiny on this practice, whether there is anything fishy going on here. is this going to be allowed to continue? these speciality pharmacies are seen as a way for drug companies to keep the price of their drugs high. to circumvent insurance

including what chancellor merckful said today, and if you listen to the prime minister or the spanish prime minister, british prime minister, they're install -- all in favor and want us to move ahead, president hollande was in favor of ttip. what we hear from american counterparts is european leaders need to make a better effort at explaining what is going on. i can tell you from the inside, from the european commission with -- we work very hard to make it more transparent, to explain more. we never communicated about a trade agreement in laings -- languages other than english. now we explain ttip in 22 languages. more than ten documents explain what ttip and is is not. in many other languages. the tools are there for people to communicate about it. business to communicate about it. it's true that european companies were not used to have to do any advocacy work in favor of trade agreements, so they are awakening, but it's a slow progress, and in an environment where companies are cutting budgets for government affairs, and that kind of thing. so, it's not clear if a project like ttip

you also saw negative read through to merck because it is developing a similar drug.ple trying to sort through whether that drug might be in trouble as well. >>> you also saw some positive read through to other companies working in cholesterol like rejen roll and amgen which have these inject i believe drugs that just got approved. it was thought that these drugs being developed could potentially complete compete with these inject i believe so. you saw stocks of a.m. jeb and rejen ron rising today on this news. the last company is esperion also developing a different kind of cholesterol drug taken orally. that stock initially popped on the idea that it would have less competition but settled lower as folks started to worry that the fda might require for studies to see how well that drug helps reduce the risk of heart attack, stroke, things like that. because cholesterol is a huge market, millions of americans, billions of dollars, lots of companies working and lots of stocks moving. >> i remember when we were talk being i think this very drug when it was in developmen

big pharma names that actually kind of almost trade like biotechs the bristol-myers of the world, mercky're under heavy pressure and you wonder how much more pressure could be added if some of the hedge funds decide to release some of the positions. >> weiss, do you have 20 seconds on this? >> it's not just the hedge funds. value is one of the most overowned stocks in the entire universe of health care. you're seeing the unwind. the long mutual funds take a while to get out. i own gilead. with their war chest they can buy stocks and companies at a lot cheaper price now. >> dr. j, thanks so much. we'll see you back in new jersey sometime soon. three hours left in the trading day. we'll get you set up for the second half. your game plan plus joe terranova on fireeye and the downgrade. can't wait to hear what he has to say about that when we come back. >>> we're back. want to get your second half setup, but, joe, give me a thought here on this fireeye downgrade. in light of the fact that you like palo alto, you focus on a lot of these stocks, you know them better than a lot of folks. give