the forecast range is good for mercik. -- merck.e will talk about the tesla stories all day long, shares soaring, yesterday was an incredible day for them because it looked like their entire production staff was leaving. they have lost five important managers over the past two or three months and they said the unbelievable target that they will make 500,000 cars in 2020, now they say babel do it in 2018, -- now they say they will do it in 2018. it,market seems to like though difficult to get your head around how he will do it. jon: a highly intelligent man, is this a business or ego? conversations in new york, the biggest names in the hedge fund industry gathering for the conference, the overriding message clear, go short. stan druckenmiller says the bull market in stocks is wearing itself out, he says i now feel the weight of the evidence has shifted the other way, high evaluations, three more years of unproductive corporate behavior, limits to further easing at excessive borrowing from the future suggests this bull market is exhau

guy: the cfo of merck, thank you very much for your time.gratulations on the numbers; we look forward to hearing more details. -- of our other big stories the federal reserve saying officials want to raise interest rates in june. now it is up to the u.s. economy to confirm the views. the slow growth in q1 was effectively temporary. minutes of the fomc april meeting used the word june 6 times in a policy context. oft follows several warnings not dismissing a midyear hike as they moved close to zero. jonathan bell joins us now. why did the market this crisis? has it? >> the news coming out at april , sowe are going to hold off the market was hearing what the fed was saying, we will because if and data dependent. this is not only yesterday's fomc minutes but what we have heard from previous speeches and will probably here later today. data has got slightly better. they were data dependent and as long as there is no shock, it looks like there will be a rate rise either in june or july. it, and nowxpecting it is 32%. almost a 50% chance you will

but merck is optimistic that growth from its newer medicines, including a hepatitis "c" treatment, will help revive sales. that prompted the company to raise and narrow its earnings and revenue forecasts for the year. >>> fellow dow component verizon hosted its annual shareholder meeting amid one of the largest labor strikes of the past few years. and those striking workers made themselves heard to executives and investors. jane wells reports from the gathering in albuquerque. >> we're disgusted! >> reporter: what is usually a boring affair, the verizon annual meeting in albuquerque, new mexico, was suddenly breaking protesters from the union representing tens of thousands of striking workers on the east coast descended on the southwest as verizon's second strike in five years entered its fourth week. >> if a company like this doesn't preserve good jobs, how are we going to have good jobs in the future in our country? >> reporter: the sticking point is verizon's desire to move customers calls for service to calls outside the local region and workers fear this means shipping jobs out of

. >> yes, look at merck which is off by more than 1.5%, and the revenues was small, and merck saw negativempact from the currency and other stock drop off because of a drug slash in medicaid. and also, amerisourcebergen is down overall due to drug introductions, and becton dick inson is beating stocks today up 3.33. back to you, scott. >> our next guest is the fifth largest holder of sarepta, and one of the top shareholders with his fund up more than 50% in 2015, and joe edelman is here on set with us, and our own meg terrell as well. and melg, so good to have you here, and kick us off. >> well, joe, you have to start out with the sarepta, and the up and down road in what was thought to be a negative are revow to the panel advisers and after the panel concluded with the vote negative against the approval, and what is the way you stand on it? is this drug going to be approved? >> i think it is extremely likely. and first, you have to see what they are talking about accelerated approval which is designed in the cases of the deadly disease duschenne muscular dystrophy. can it be approved in e

"e research was published in the journal of the merck and medical association," and found these prescriptions are written each year in the u.s. will not respond to antibiotics, like viruses. this video is breathtaking. a woman dropped her three children from a burning four-story building in south korea. among those waiting below to catch them, a group of u.s. soldiers who were there. after they save the children, the woman jumped for her life. >> the fire was horrendous. you could barely see her. everybody was screaming, just yelling come you have to jump, you have to jump, and she jumped. alison: unbelievable. the woman hit the ground beneath the blanket, but somebody had the foresight to put cushions beneath it. after the ordeal, the family from nigeria got to meet the soldiers and thank them, and there were no serious injuries. can you imagine? leon: as scary as that looks, at least it had a happy ending. -- oh, my goodness. steve: and then the kids smiling in the mother smiling. we will smile this weekend. alison: we have to wait for the weekend? steve: trying to segue the right way. alis

a lawyer for merck, she still has not returned to work.ineer of amtrak 188 has not been charged and may never be charged. >> there has to be accountability, and there has to be responsibility. and we've seen neither so far. >> a civil lawsuit is pending. jeralyn and her husband say that will play out. they haven't thought about bostian, too focused on jeralyn's recovery. >> nobody can tell me, you know, that i am going to be ok and that i am going to be anywhere close to feeling how i used to. and that's hard to deal with. >> the ritters attended the memorial service at city hall hoping to meet some of the emergency responders that helped her that night. they didn't meet any, but the paramedics said this they would work to make it happen. in the satellite center, chad pradelli for channel 6 "action news." >>> "healthcheck." pop warner people eliminating kickoffs in the name of children's safety. the ban affecting the three youngest divisions from ages 5 to 10. it begins this coming fall. the move is meant to reduce injuries keeping youngst

reaction to those shots yesterday and she said, "no, no, no, no, i'm waiting for a representative from mercki don't think it was a reaction to that." sharyl: the accused cdc officials deny wrongdoing -- and powerful interests have led a fierce campaign to stop the film. last month, under pressure, tribeca film festival co-founder robert de niro withdrew plans to show it. mr. de niro: i think the movie is something that people should see. there was a backlash that i will fully explore and i didn't want it affecting the festival in ways that i couldn't see. sharyl: del bigtree produced "vaxxed." del: what the people have just seen with "vaxxed" being pulled from tribeca is censorship. it's the power of corporations over media. sharyl: the whole episode has ignited a larger debate over control of ideas in the media. american university professor patricia aufderheide teaches about documentaries and says some ideas should be suppressed. she defends the decision to stop "vaxxed" in part because she claims it's scientifically inaccurate - though it should be pointed out she hasn't seen it. mr. de n

we are hoping to have more news about merck and following the news conference later on. three hours into the european trading session, up, energy leading a lot of these gains and this is a picture for turkish lira after the prime minister of turkey may resign. ♪ tom: good morning. francine look what an tom keene. -- francine look while an tom keene. the euro churn. remember he gives away a little bit. renminbi gives away a little bit. tomorrow, interesting to see how markets react. francine: you are not giving me much emerging market currency chat so i will turn to bloomberg . maybe they will have more of an angle. news for you and tom, we continue the conversation of the conference in new york come along on short ideas. has the bull market exhausted itself? stanley druckenmiller thinks so. , in a sleeping bag, that is what he has to do to get production where he wants it, we will talk tesla and talk turkey, the president trying to tighten his grip on power. you saw the markets. francine: thank you. thank you. futures up 11. we are with callum henderson. the simple t

the xlv is the top five holdings, companies like johnson & johnson, bristol-myers, merck, things that very well. i think there's a potential for some of the other names to play a little bit of catch-up. some of the stocks that are well off of their 52-week highs versus the ones i just mentioned. a few percent from the 50-week high. >> how much of a weight is biotech? >> that's what's so interesting. traditionally, the real key here is traditionally this is a defensive area of the market. biotech has skewed all that. in terms of the -- in terms of what's important here, the top is the big pharma names. what does act well, devices act well, health care facilities act well, managed care, so forth. you need a little bit of play from some of the big biotech names and this thing can -- >> some of those companies actually, if you're taking a look at what the valuations look like, those are actually the cheaper names in the group right now. the big cap names you're talking about, johnson & johnsons, 22 times multiple names, actually trading in the mid-teens and have much more growth potential

the xlv is the health care select, the top five johnson & johnson, bristol-myers, merck, things thatwell. i think there's potential for some of the other names to play a little bit of catch-up, amgen, bio jen, some of the stocks off their 52-week highs versus ones i just mentioned that are a few% from their 50-week highs. >> how much of a weight is biotech? >> that's what's interesting. traditionally -- the key is traditionally this is a defensive area of the market. biotech has skewed up a that. in terms of what's really important here, if the top is the big pharma names, devices act well, health care fa sill tiz act well, managed care, u in h. you need a little bit of play from some of the big biotech names. >> some of those companies, if you're looking at what the valuations look like, those are the cheaper names in the group. the big cap names, the johnsons and johnsons, gileads and like that trading in the mid teens and have much more growth potential. from my perspective, they don't present a great deal of risk to the group but they do offer a good potential tail wind. >> is pa

merck and caterpillar leading the way. >>> and speaking of tesla, would an apple takeover of tesla makesmpanies? and both ceos? it may sound crazy, but tesla's market closing is colloid to a billion. we have a guess that says apple really niece elon musk to replace tim cook. we discuss next on "power lunch." this clean was like, pow! it added this other level of clean to it. it just kinda like wiped everything clean. my teeth are glowing. they are so white. i actually really like the two steps. everytime i use this together it felt like leaving the dentist's office. crest hd, 6x cleaning, 6x whitening. i would switch to crest hd over what i was using before. >>> sharing of tesla are lower today despite meeting earns expectation and bullish outlook. on the conference call last night elon musk talked about production of the new mowedle 3. >> would aim to produce 100 to 200,000 model 3s in the second half of next year. that's my expectation right now. >> as tesla ramps up production, does it make a more attractive takeover? he thinks apple should buy tesla and make elon musk the ceo. and al

merck coming out with sales and missed estimates.nd l brands reporting pulmonary profits below analyst estimates. on the plus side, we do have some winners to talk about. those stocks that are supporting index point wise. craft times saw not only an improvement from cutting costs, kraft h saw note only an improvement from cutting costs, but an increaseins in sales. vonnie: in fact, the index level, the s&p is about to give up all its 2016 gains. julie: it is getting very close to those levels. if you look at those averages and what we have seen thus far, the s&p is only up .2%. indeed, if we continue this losing streak am i free lose seasoneam after earnings really draws to a close, you will see that go negative. the nasdaq has been going more deeply negative for the year to date. i mentioned that a lot of these negative sentiment indicators -- even though this one has come down to some extent after the recent rally in stocks, it is still near bull market highs. that is one of the indicators we have been watching to show, despite the

among the highlights, aig, fo s pfizer, alli baba and merck. >>> on jobs, we've seen better job growthwhich is really interesting, compared to a very weak economic growth. that gdp in the first quarter, 0.5%. can the momentum continue in jobs? and can we see higher quality, better paying jobs with higher wages? >> even so, i don't think people are expecting a june hike anymore after the fed was cautious. so it's a big week always when you get the non-farm pay rolls. but perhaps it's already been pushed back, that expectation either way. one to watch along with lots more earnings. >>> now puerto rico won't make a $420 million debt payment today. the governor has issued an order suspending payments. the move comes after officials were unable to agree to a settlement that would have avoided the default. they couldn't make the payment without sacrificing basic necessities including keeping public schools and hospitals open. >> one to watch, and we'll see whether the damage continues. the creator of "hamilton", has become one of the biggest outspoken advocates. >>> when we come back, the ra

and alibaba and merck report results before the opening bell and we'll hear from news corps, square andopro after the close. >> tesla posting a slightly lower than expected loss. target moves up two years. it was supposed to be by 2020. but tesla is cautioning that spending will increase as that production ramps up. on the conference call ceo elon musk also suggested his company will be raising capital. have a listen. >> for us to raise some amount of money. some combination of equity and debt. and make sure the company has a good buffer of, you know, cash on hand. >> shares of tesla rising on the report here in the pre market. they were sort of all over the place in the after hours market. popped originally. now up it looks like almost 4%. not everyone is a believer in tesla. at the sohn conference that we were at yesterday, jim chanos says he's shorting tesla. listen. >> one of our historical sign posts of a company in trouble is when numbers of senior people leave over a short people. tesla fits that bill. we have a chart i guess we're going to have to update this afternoon of senior

pfizer and merck are 15%. this isn't a knock-off drug company. they have to spend more money. you have to be able to pay this debt. you must have to sell some debt. this is a situation that's dire. >> he know we have some things to work. on i believe we'll be generating cash. we've got over $10 billion in sales. i do think the foot present is in place. do i have to execute on things? the first thing i need to do is stabilize the company. working with patients. then i have to turn it around and that will be launching some new products. i have to make sure that i take care of the debt holders. i'm comfortable we have a plan to take care of debt holders. and then generate the total share on the return. >> you do stand to benefit, according to the press reports, $65 million is the package if things go right. you left and you get this. are you doing it for the money? >> this is not about the money. this is about to me, i love the pharmaceuticals. this is an industry that does more good for people than any other industry if i can may a small role, i think i will have done something

i have little good to say about merck. 21, microsoft. it didn't grow the market fast enough.t represents both value and a call on the reacceleration of the cloud. and i'll get ceo will not, i'll say, screw up again. don't give up on microsoft. your first buy may not be it. nike. people have given up on it. the stock does tend to underperform during an olympic here. it is expensive. and it is vulnerable. if you need to buy it and i don't think you do, why don't you wait to see what foot locker says on the 20th. 23 is identifieser and they have paid too. . a strong dermatology franchise. that was this morning's business. but the drug competes, some say the delivery is he's yfrl i think pfizer was nuts. despite the 1.2 million acquisition, it is little for me. 24, how about proctor and gamble? so buffett lost faith with the giant. not me. my travel trust is buying it. this is a huge consumer of priced reduced commodities. it makes proprietary out of it. you don't sell just because buffett sells. 25, travelers i can't. say i was fine with thor quafl it wasn't that great. i can sa

merck really put it on the map. qatar is very different today. they can be more selective.go out to the market and test for new technology, squeeze partners and try to get a better deal than the one they got in 1992. a bettererybody wants deal, that's for sure, and everybody squeezing the petrodollars to petra pennies. giving us the latest. checking in on a few other stories making headlines around the world, we got selena line with us today. good day. fellter: alibaba shares the most in four months as it is investigated by u.s. regulators. thefec is looking at company's accounting standards and whether it violated any federal laws. they are looking at related party transactions and data from its single day promotion when it made nearly $14 billion in 24 hours. alibaba says it is providing documents and cooperating. egypt at this -- egypt has hired french and italian companies to flightthe black box from 804 as the search for debris continues. says they chairman are perceived to be at a depth of about 3000 meters. dna tests are being conducted on a few small body parts retr

merck has reported profit that beat estimates.arnings, and exceeding some cause, rose 27% to 1.1 billion euros. thiss are higher in morning straight. thomas cook shares have slumped this morning after the travel operator said underlying earnings before interest and taxes will be at the lower end of estimates. the company says that summer bookings have fallen 5% after terror attacks in turkey and belgium. that is a bloomberg business flash. francine: thank you so much. as oil approaches $50 a barrel -- opec's strategy is working. that is the view of kuwait's oil minister. we go live in kuwait city. tell us more. will the seven-month high hold? he seems fairly definite, the $50 level is going to hold. but i certainly got a sense from deputy prime minister, oil minister and finance minister -- the opecat for meeting. we are perhaps underestimating that thus far. is a theoryt share that was implemented by opec the last, coming down from 2014. to me, i believe the theory has been working well. see better prices in the market. demand ha

. >> net profits at german pharmaceutical company merck more than doubled in the first quarter. sales were up 21% mostly on the back of integration with lobtry equipment producer sigma aldrich. >>> and there could be 10 million deaths each year by 2050 if nothing is done to tackle antibiotic resistance. speaking to cnbc i had the chance that ask more about this report and he explained. >> they are crucial to the supply of new effective drugs. no one else can do that other than the pharmaceutical companies. if you can find somebody else to do that it that might be an easieasy er thing to do. and we thought about that but you can't. these guys have the technical expertise to do it. so you need too wrote re ward those those who are prepared to go through the very time-consuming highly cost consuming exercise. in terms of getting the money as to how you finance those rewards, there is a number of options. it could be you and i being taxed. it could be part of existing budgets. it could be part of existing international financial mechanisms. another alternative, which is one that we

and alibaba and merck reporting results before the opening bell and also news corp, square and goprohe close. and don't miss an exclusive interview with john williams. that happens this afternoon at 1:40 p.m. on power lunch. >> bullard an here a lot. >> he comes here a lot. >> if he wants to say something. >> he could some here and that's it. >> so many approximate of them the time that the if they really want to say something to us. come here and do it. else we're not going to cover it. fitbit first quarter profits fell. costs nearly tripled and --. expected to fall well short of analysts expectations. whole foods kept costs under control. also cut prices in the face of stiff competition in same store sales fell a little more than analysts had forecast. cutting its full year outlook. stocks doing okay but kind of had a long fall. and i can't do it. used to call this yakky. i yas >> and the media business. >> professionals. >> professionals. >> and now they are trying to sell subscription asks things. >> you have been on it? >> i've toyed around with it. yeah. we actually internally

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obviously -- i own pfizer, merck. i actually was looking at how do you trade china right now. that's the way i would trade china. >> he's got a sharp mind, baby. he took you from point a to point b. just saying. we move fast here. we don't lollygag around. >> let's go from china to the smart board with dan nathan who's tracking michael kors ahead of tomorrow's earnings. >> i wouldn't exactly call that a gra tutuitous lead he made th. of course, reports tomorrow before the opening. about 10% move on the average over the last four quarters, moving 16% over the day following its earnings events. options volume hot today. six times average daily volume. the june 46 calls. break even at 47. force when you think about it, look at the chart. the stock is down 30% from its 2016 highs. look at this gap. this is when retailers, apparel makers were getting slayed last year. the stock was down in sympathy here. i think we need to take a day to trade like this. this trader is trading to fill in that gap. think about the move, down about 60%. this is one way to play in a contrarian fashion

we had merck, the ceo saying they are actively looking for candidates to bolster. >> it can. right candidate i think are slim and none. and i think you have to play with it ibb and guy brought up that one level. i'm going to bring up the 50-day moving average, which is $267. it has to close above that, 258 last, and stay above that that's how you keep it tight to your vest. i don't think anyone has an edge here. so i would play it that way. >> but what meg is talking about, i think she is also referring to there could be a on the rarian call. we're starting to get to place where things are oversold. analysts which were cheerleaders on the way up, is this the beginning of a bottom? i wouldn't go for it, but maybe starting to work to that point. >> well, dan is not here next to me. >> where did he go? they can only mean one thing. actually two things. either that i kicked him out, or he is at the smart board with a bearish bet on the metal as trade. >> as negative as the sentiment has been in 2016 for biotech stocks, it's been really positive for metals and mining stocks. today

york, there really aren't any individual proprietary traders anymore like there are on the -- on the merck and the board of trading and commodities. liz: yeah, and i think it's an important point to be stressing here that if you start taxing trades. look, these guys in the cme, they pay their corporate taxes. but perhaps it's an issue right now at least if i were to go inside the brains of the protesters that they would like to see some loopholes closed but the real problem stems from chicago from the budget because there isn't a budget. and i want to get to luka. the games were gone after early morning moves, and we now have oil moving lower after we get a quick touch on what happened, i don't want to ignore the fact that you had a major switcheroo who has for many decades been in charge of the saudi oil industry. he's out and they're bringing in a guy who has been groomed. is that a factor here because at the moment we have crude down. >> yeah. that's the biggest story in the crude. we're going to have to wait and see what they have planned to do with it. so that's probably the biggest s

joining us now from stanford, california is the president of merck investments and manager of the markin fx. --t happens to that we all to the real? short-term, much cannot get worse. the real challenge we have with brazil long-term is their constitution was changed in the 1980's to tie entitlements to inflation. entitlements are up significantly. they are squeezing spending. with that, unless you have a strong government that can make structural changes, those problems will not go away. the new government can set a different tone that is beneficial in the short term. if you take a look at the bloomberg. , you arehart 1306 looking at the implied volatility on the real. that is that blue line. the white line is swapped contracts. they were buying u.s. dollars and has now stopped. it is interesting, we talk about assets moving, but volatility is quite low. aboutt: what do we know how the former finance minister will approach his job as a central banker? the case for more intervention? >> if i am not mistaken, that should suggest less intervention going forward. the whole concept of the a

many outstanding leaders, john merck, homestead, stephen matthew and others advocated that there should be one agency responsible for administering these rich natural and cultural resources. they prevailed and congress did over a period of sessions marked of a bill, signed into law by president woodrow wilson. it established within the department of the interior national park service the. -- interior the national park service. before there was a national park service the secretaries of the interior had difficulty in maintaining these areas and protecting them. they tried it with a civilian workforce. well, i need to turn to an organization that has a lot of personnel, a lot of help. so obviously that was the department of war, that we know today as the department of defense. the department of defense secretary said i'm willing to help you if congress says it is ok to do that. congress authorized at the request that if the secretary of the interior requested the department afford to provide services, which it did, so you found the cavalry protecting the yellowstone, yosemite, sequoia. fo

merck is going the opposite of bristol myers. >> they do raise their full year just a touch.t once again on easier 4x -- >> i'm no go. that's why we can't lose that prop. if you look at the quarters that pfizer talked about a weaker dollar. we need a weaker dollar to be able to make the numbers and raise numbers in the future. if we lose this day three, we can't lose that, that's the major theme. >> meanwhile, whole foods beats by 3 cents. though revenue missed, they cut their guide as cutting these produce prices isn't driving sales. comps down three. >> i wasn't crazy about that quarter. they are rolling out 365. there's a lot of excitement on the conference call about 365. just because i'm a creature about the -- there's a lot to like in terms of buyback. but if you're just looking at how a typical retailer does do well, they didn't have it. stocks inexpensive based on a real turn if you get one. look, same-store sales, they were ul a little bit for the previous. just not a great quarter. >> shares of alibaba, that is taking yahoo! along with it, given the 15% ownership ya

we're going to be looking for a lot of data from big pharma companies like merck, bristol-myers.hich just got a new approval this afternoon, well ahead of schedule. so this has really turned into an immunotherapy dmompbs soconf some ways. but others are being closely watched. >> i'm glad you mentioned because it seems like an interesting quirk how this happens. we have to kind of wait until the actual event for more clarity? >> yeah. often this can be earlier data sets and they will be updated or sometimes the final data gets released tonight and you hear more presentations at the conference but it is odd how it works how some data sets are released in advance and then you learn more at the actual conference. >> thank you for joining us. we'll let you go for now. and those results will start coming out after the bell. well after the bell. 15 minutes to go here. dow is down 53. s&p is down 56. the nasdaq is hanging on to a gain of 8 points. >> next, has the fed lost control of the yield curve? talk about that after this this is my retirement. retiring retired tires. and i never ge

sharon epperson at the new york merck.yle who joins us from gasbuddy, the ceo of gasbuddy. are you there? nice to see you. welcome to the program. >> thank you. >> so you've done a survey and this is really interesting, the survey of the degree to which people are going to travel this summer. what are the figures in particular the distance figures that people are expected to drive this time around? >> sure, simon, we recently did a survey coming into this big weekend as it were memorial day one of the highest traffic weekends of the year with over 100,000 respondents 56% of those responsibilities will be driving over 400 miles, 2% increase year over year those consumers will purchase over $12 billion worth of tul this weekend. >> what are the sort of prices people will pay as they travel though? because you hear for example hotel prices are rising. >> correct. well, as you noted earlier we're seeing historic lows. in fact, with a national average of about $2.31, this is the lowest price in ten years for this weekend. and a

good earnings reports from merck and time, inc. and tesla. seaworld down a little bit.ave been fighting the controversy over their orca whales. the killer whales. but we want to check in on the numbers in general. pretty good day across the board. looking at the dow, this is the opening bell. just about two hours ago the dow, the nasdaq and the s&p 500 have been up most of the morning about a half of a percent or so each there. but we were talking about bay area based jamba juice. they are relocating the headquarters to texas. they are moving to frisco, texas by the end of the year. it's expected to bring 100 corporate jobs to north texas, but some of the employees from emeryville will be relocated. the company's lease is set to expire at the end of the year in emeryville. the ceo of jamba juice says it will better position the company to extend its brand and continue to support its franchise partners for the long term. >>> as we have been reporting, takata is adding more cars to its airbag recall, and now tesla is on the list. the japanese auto supplier recalled anothe

these are with firms like johnson ampbdz johnson, merck, sun pharmaceutical industries, which is thegest drug company in india, and i can understand how it would be difficult for an analyst to calculate those and deliver a discounted cash flow, especially since many of our projects are so explosive in terms of valuation upon success. and it will be a while before we can show you that we have succeeded. for example, we have a meth methanotropic, we have a bacteria which consumes gas and translates to isobutanol. >> i'm glad you mentioned that. >> there are a couple of explosive things under way here, the gas-to-liquid bioconversion being one of them, and zika, the headline, obviously, for your company very frequently. but on both of those projects, how close are we to commercialization? >> well, as you -- as you probably know, we have a temporary registration, an approval in brazil right now. we announced last week that we are commencing a program to eradicate the aedes aegypti from the cayman islands, which certainly changed my caribbean vacation plans, as in i'll be going to caymans

with almost a year left nominated merck garland to this -- merrick garland to this position. elections matter, decisions matter, and the supreme court, there's a wonderful piece in this morning's new york times about the marginalization of the supreme court as a result of this effort. and i just hope, and i join you in wishing that some of your colleagues across the aisle were here today to understand this and to hear this. there are real consequences affecting real people. some of these are matters of life and death. i don't know if you're familiar with the case of duane buck. duane buck is an inmate in texas on death row who was sentenced based on testimony that he posed a future danger pause he was black. because he was black. and that issue, whether one's race can be considered a future danger -- in texas you have to establish future dangerousness -- can be taken into account in determining eligibility for the death penalty is now before the united states supreme court on a cert petition. this is the fifth consecutive week that the court has not acted in conference, decli

jackie deangelis has the latest on the inventory report of the new york merck. >> prices pretty muchport came out just a few moments ago. we saw a bit of a spike because crude drou down slightly less than what we were seeing from the api last night. but a drawndown nonetheless. gasoline actually built 2 million barrels. traders weren't expecting that which could be why prices are flat but higher on the session so far this morning. i will say this, these are backwards looking numbers. the demand is supposed to really pick up for gasoline and for crude coming this memorial day weekend, actually drivers start hitting the road as soon as tomorrow according to aaa. let's talk gas prices for a moment. the national average right now $2.30. it's actually up 16 cents in a month, so that may hurt a little bit, but from last year at this time it's down 44 cents. so aaa saying about 38 million americans will travel for the weekend, this is the highest on record expected, second highest that is since we've been keeping tabs. and these are the lowest gas prices we've seen in over a decade. so as t

merck sold its consumer products division, they put it out for ayer,a global business, buy a german company, and it was only the chinese rate. p&g had the bid, assuming it would pay the u.s. rate. it is asset startups. it is not called creeping acquisitions which is slow loss of market share of u.s. firms. some of you may know a great new tax large, who said the biggest mistake was when u.s. had all the capital in the world and all the headquarters from should have dropped our corporate tax rate to 20 percent, adopted a territorial system, and not let these other places nibble us to death slowly, having attracted investment deal assets, etc. and we would have had a higher tax base today, more headquarters, or investment. in a global economy you cannot place,bile capital in a tax it at a high level when other countries are not taxing is. they be when it was bermuda or bahamas, but not when it is the u.k., developed countries, you just cannot do it. >> [indiscernible] >> source meaning where the income is earned? ini do my r&d -- we do it six different places. raw materials were in one place.

if you want to become merck, if you want to become pfizer, you have to pay the price.he price is a lot of that cash flow the $2 billion in cash flow, you don't have it. >> when you have $30 billion in debt you have to make sure you can maintain a nice cash flow generation pace to your point margins will potentially decline if they're no longer able to raise price and/or also have to spend a lot more on right turn. >> -- r & d. >> he did talk having to roll back. you're talking 15%, these guys are three and change. joe made a point that he wants to be in that milieu so to speak, allergan 19%. >> 19%. >> and now i've not seen this morning's. >> the deal we're talking allergan still to close perhaps as soon as june, jim, a lot of money coming to the balance sheet. they'll be able to prepay some debt. >> they have $40 billion in debt, you have $40 billion in cash. >> obviously they're in a position to buy back a lot of stock. >> but remember the volume restrictions will keep them in there every day most likely, but they can't do -- or it's not as earnings per share overnig

anastasia: it has to do with the rates of the ceo of merck is complaining about that companies that might'veto pair up will actually go it alone. jeff: i just don't know. they're supposed to be $60 billion in cash initially, but if we could do an all stock deal, we could more than likely do a deal that is all stock. the $60 billion in cash, more certainty up front, but it looks at this will hit a wall and die. amanda: bloomberg deals editor jeff mccracken. can tesla get back on track or is elon musk setting up investors for a big disappointment? why tesla shares could run out of battery. we have the world's most influential bond investors are not counting out a gene rate hike. should you expect the unexpected in june? we will discuss this in our morning meeting when "bloomberg " returns. ♪ ♪ last week we learned that tesla motors is stepping up its production plans rather robustly further mass-market kazan. -- for their mass-market sedan. many believe this will only disappoint investors, including our next guest. he believes tesla will not meet its production target. they have it pretty

i know you have 25 years experience at merck and novartis bringing drugs to market and working your wayr pharmacist so i am aware of the compliance problem. talk about the size of the market. how much do we spend every year treating diabetes? we have worldwide 415 million people with type ii diabetes. the market right now, just for the drug part of the market, is $50 billion plus. in the 2020s it's projected to grow up to an $80 billion market. the disease is huge. it's probably one of the biggest diseases on the planet that we are struggling with. >> 90% of diabetes is type ii. >> yes. >> to try to treat that, it's mostly pills? it's not insulin. >> it's pills and injections. >> and injections for type ii even? >> yes. most people are on two to three type ii diabetes medicines at once to try to control it. the problem is, for the last ten years, we've never had more than 50% of people treated to their goal, and over the last ten years these trends haven't changed. we have had 70% to 80% of people stop taking their medicine. that's the bad problem. >> you can solve that with diet and ex

companies like merck trading at attractive cash flow multiple. it's about 30 and a half times. has a vast pipeline of new drugs which will be coming in the market. >> but is betting on health care contingent on betting that the entire industry won't be upended by whomever comes into office next january? >> we have this conversation every four years. every time there is a presidential election the health care sector comes into focus about price -- drug prices and health care costs. i think there are good actors and not so good actors and it's up to the shareholder to focus on the right one. >> you also like u.s. energy. >> yes, i do. >> to say it's been out of favor in the last year is an underestimate. >> this is a very contrarian view, but i think that the current price of oil is not sustainable, at least in the medium term, to make -- >> not sustainable at the high level? >> at current levels, even up from $26, we are at $45 but it's still not enough to make the finding of new replacement reserves economical. on top of that, you have had drastic exploration cuts by a number o

are talking people about most are genes that are , potentiallyitoes drive this type of merck -- mosquitoo extension. host: a self annihilating mosquito. guest: the biggest funder of this technology is the bill and melinda gates foundation in seattle, the foundation of microsoft launder bill gates. he and his foundation have been funding this technology for a little over 10 years. they have spent about $44 million, which is not a lot from the gates foundation perspective, but it is a lot for technology. is run out of london out of imperial college. it is a big program. they have concrete plans to release them in africa in the future. host: when could they be released? what are the risks? guest: there are a ton of contingencies, has a technology is only being developed right now. the gates foundation to put foundationbusiness -- a business plan here they are looking at releasing the technology and or by 2029. in africa. in terms of the risk, we are talking that something people have never been able to do before, change the genetics of all species, including eradicating them. the biggest ri

i nominated someone as qualified as merck garland. now it's time for the senate to do their job. give judge garland a hearing. give judge garland an up or down vote. treat him and our democracy with the respect they deserve. host: democrats are calling this the nine, nine, nine campaign and amid that push the president's comments, this story from the "washington times" this morning. anti-garland ad set to air in key states noting the judicial crisis network is highlighting what it calls judge garland's iberal record. here's one of the latest ads from the judicial crisis network. we'll show you that in just a second. since president obama nominated judge garland nearly seven weeks ago, only two senate republicans have come out in support of holding a confirmation hearing for merrick garland, fewer than 54 republican senators have agreed to hold courtesy meetings with the nominee. there's a picture of circuit court chief justice merrick garland in today's "washington examiner." we're asking our viewers to weigh in. we want to hear your thoughts on who do you trust the most when it