for valeant ceo mike pearson.st cuts and shares have been halted pending an announcement from the company. ♪ david: just under 30 minutes away from the opening bell in new york. this is bloomberg go. i'm david westin here with stephanie ruhle and jonathan ferro. manages 450is team billion in fixed income assets and bloomberg deals reporter at hammond joining us. we will talk to matt miller in a moment but we have to talk about valeant. replaced theeant ceo. it names ackerman to the board. valeant to replace the chief executive. byected to file the 10k form april 29. stephanie: you have to put into perspective replacing mike pearson. before he went out on medical leave in december he was the chairman and ceo. during that time the board had a supercommittee reviewing management and even though there were questions, should we bring mike pearson back? that is the guy who created the business model. the guy behind the partnership with phil adore. is now to replace him, this wow. david: most in or had they brought him b

when you look at the chain of events, we know mike pearson had been on leave for two months.e know that they had announced a restatement and subsequently withdrew their 2016 guidance, and then he comes back and they announce a call that they had canceled. the next day, he is on the phone with a handful of analyst who all happen to have buy ratings on the stock. carol: and the day after. he talked about greater transparency for the company. so many questions about the company, relationships with other companies. why would you do something like this, especially when he says he wants to be more transparent to investors? david: if you want to come back and set a new tone, this is not the way. even if there was no wrongdoing, the optics do not look good. matter.arket, optics perceptions matter. there is obviously a credibility gap here. you are coming back after a two-month absence, and you want to get off on the right foot. this is not going to do it, at a minimum. carol: do you feel like you got a new information that has been useful since he came back? david: personally, no. ce

one thing i don't think they should do is retain mike pearson during this time. have to take the lid off and find out what's going on until pearson is out of there, they can't do that. my candidate for that until they find a ceo is bob ingram the chairman who comes from gsk and knows the business, they've got to move very quickly. i said six months ago they should make a change in ceo. i think they waited a very long time. >> our meg tirrell spoke with david pyott. coming back, you said it's a caretaker roll, i guess. is that enough here? i mean, you can argue that mike pearson didn't help or people tried to point at the cfo or whatever. thgs a strategy which i'm not sure how you either double down on it and it seems like if pershing square is on the board, they supported the original strategy or perhaps want to see a continuation of that. if they don't go that route. are you suggesting they are trying to make themselves into a very different company? >> absolutely. they have an unsustainable business model that's been clear from the outset. you can't continue to

you heard becky bringing you the news that mike pearson is out.he president in cuba, starwood marriott, a lot more futures steady, and europe muted. oil contract rolls over today. our road map this morning, marriott sweetens the pot for starwood. we'll talk to marriott's ceo, arnie sorensen. the president in cuba raises questions about economic opportunity there. and we're hours away from apple's highly anticipated event. we'll look at what to expect. valeant has been halted for the past half hour or so. as becky pointed out, mike pearson leaving the company. ackman to the board. predictable or not, jim? >> no. but there hasn't been much that is predictable. there's a mea culpa note from lehman brothers taking the price target from 135 to 134. taking numbers from 10 -- the reason i point this out is because the numbers are all of the map. no one knows the cash flow, what the company is really do. ackman joining the board is a sign he can't dump the stock. they couldn't dump the stock. this is a great mystery, carl. when you have a company where yo

welcome back from mike pearson. a company facing multiple challenges. in this week's issue of bloomberg's this week, weighing the pressure and giving background to pearson. moment, how at the much of it is self-created? >> this is a guy who said i have a new model for the industry. the department wasted too much money on drugs, it is better to buy drugs. it worked really well for a long time but now falling apart. was a management consultant basically and then they asked him to come in as ceo because he was doing a good job. what do you think his final goal is. is adjust ticket valeant out of trouble? >> absolutely. he wants to be one of the top five pharmaceutical companies by this year. i don't know if he is going to make it. >> not everyone is a fan. warren buffett, a longtime partner described his practices as the plea of moral. -- as deeply immoral. >> hillary clinton is running a ampaign, saying we have to do -- we have to put a stop to this. i think that is over and a big problem for mike pearson. >> obviously he has been on medical leave. >> the

mike pearson, the ceo who returned after a significant medical leave has been on the call this morning. the stock, as you see, looking like it may trade below 56 bucks a share on this guidance or on this lack of meeting anywhere what had been expectations for guidance. fiscal 16, now seeing ebita between 5.6 and 5.8 billion. investors were expecting more than that. eps 9.50 to 10.50 per share for the full year. that gives you a sense of the multiple we're talking about here. well off what people were looking for. at least well over $11 a share. first quarter has clear disruptions of business. people talk about de-stocking in dermatological products. here's what pearson had to say if they don't get things together and what will happen in terms of the stock price. >> if the stock police does not recover, i think that will be as much of not delivering the cash flows we're promising and/or exceeding the cash flows. and then the company should think about other moves it can make. we are here to serve shareholders. i know the board is committed to that. i know management is committed to it.

wapner has that. >> carl, i've been able to do some reporting around the situation of outgoing ceo mike pearsontold by a source that the company's move to replace mr. pearson was, quote, not a mutual decision. that valiant's board of directors was concerned about the organizational tone, and decided to oust pearson during a series of phone calls regarding the board over the weekend that the board informed pearson that this is what was happening. that they were taking a series of steps, including initiating that immediate search for a ceo. and that he was no longer in the company's long-term plans. they did send out that press release earlier today, of course, stating that they were looking for a new ceo and that mr. pearson would stay on until that person was appointed. we also know that bill ackman personally will take a seat on valiant's board. i have attempted to obviously contact mr. ackman this morning, as well. that's been unsuccessful. just a little color for you, in the way that all of this transpired over the weekend, concerned about the organizationel judge tone and that it was not a

ackman is doing a town hall style meeting with mike pearson, who is out as ceo and chairman of the companyey are saying, there will not be major layoffs, and they're looking for someone to replace him as soon as possible. >> what is happening to howard schiller? can he be made to leave the board? it starts to get really messy. former board member, cfo, is accused of handling of some statements. bonus thatmillion in he is sitting on. it is probably easier to fight that from inside the board than outside. insharp shares tumbling tokyo. .early a month the bailout deal risk that the-- a deal could fall apart? >> there is. we are coming up on a month it was approved. it is a growing list of issues that foxconn is going through before it signs the defensive agreement. they are looking at some bones loans that has -- sharp has. they are also looking at the performance in the quarter. there are reports that they may try to decrease the amount of money they are putting into sharp in additional equities. ast was originally proposed a hundred ¥49. we may see that come down a bit. anwhen can we expect

ceo mike pearson is stepping down, and billionaire investor bill ackman is joining the board.ormer cfo howard schiller is being asked to resign over what valeant calls improper conduct. he denies the accusation and may be forced to pay back millions in incentives compensation. dennis fed president lockhart says the u.s. economy is strong enough for another rate increase as early as next month. inthe text of a speech savannah, lockhart said there's sufficient momentum evidenced by the economic data to justify a further step at one of the coming meetings, possibly as early as the end of april. margaret says he backed the fomc one sees -- the decision, it is likely to require that rates normalize next year. the fed meets again in april. meantime, jeffrey lacher says inflation will rise once oil prices stabilize and the dollar stopped appreciating. he spoke at a conference in paris today. inflation, core inflation of close to 2% next year. i think it will generally be firmer this year than it was last year. memberhe is not a voting of the fed's policymaking committee this year. pa

a lot of people loved mike pearson. there was a lot of confidence in this guy. of course, if you look at his record up until the last six months, it was really, really amazing. he was considered this sort of guy who's bucking all trends in the pharmaceutical industry. so it's just completely turned around. now folks are saying what else could happen? nobody's comfortable saying we've hit a bottom here because they've got $30 billion in debt, and they haven't filed their 10k from 2015. if they don't file it in the next 30 to 60 days, they can start tripping on their debt. >> so what about the medium to long term? how plausibly could they dig themselves out of this hole? >> folks are saying the most important thing they can do is to pay down that debt. the problem they see there is that there isn't a lot of visibility into how much cash flow they're going to be getting because they're changing their business model. they're saying they're not going to be taking those big drug price increases anymore. if they can't do that, how much growth are they going to get from

he spoke to mike pearson, a statement from bill ackman, second largest shareholder. 're delighted's mike's health has recovered and he's returned as ceo so he can work with the shareholders. we expect that much of the uncertainty will be resolved in the short-term based on publicly available information. it appears that valeant's core franchises remain strong and they believe valeant will do a much better job managing investor and public relations. >> when you say you're investigating yourself, the government tends not to think that that investigation is good. let's say you hire an outside firm. they're doing an investigation. the government wants to see the investigation. it's not like they're saying, look at that, they hired a blue chip firm, they have paul weiss, i'm fine. no, still you have to come down and explain yourself. i think there was another unreal aspect of -- listen, we did this internal investigation. we're cool. government doesn't like that. hey, you know, we're fine. there is no fine. the company can't declare itself fine. doesn't work like that. i w

. >>> coming up, valeant ceo mike pearson is on the way out. the stock is surging today.atest reporting on the story, next. >>> here's what else is coming up on the "halftime report." >>> still ahead, president obama in cuba. what the historic trip means for the island and what companies can benefit. >>> plus, cashing in your chips. is it time to bail on intel? find out why one analyst says the stock is a sell. >>> and whether our traders agree. >>> and spring cleaning your portfolio. ♪ ♪ clean up everybody clean up >> the stocks you should kick out of your portfolio as the new season kicks off. that's all ahead on the "halftime report." there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be. here at the td ameritrade they work all the time. sup jj, working h

. >> reporter: three months since the street heard from mike pearson and investors will be listening closely tomorrow for clues about the drugmaker's future. his return at the end of the february from a two-month medical leave of absence recovering from severe pneumonia and other complications. analysts say he needs to make sure that the company has no more surprises in store. valeant's stock has lost more than 60% in the last year after a series of seemingly never ending setbacks. scrutiny over federal investigations, accusations of accounting fraud and finally pearson's illness. the return brought negative surprises. valeant postponed the fourth quarter earnings release and conference call and the s.e.v. filing on last year's results will be delayed even further. news of another federal investigation came to light that day depressing shares even more. investors are awaiting the outcome of a specialty pharmacy answering accounting questions and a delayed 10-k. the company is focused on paying down the $31 billion in debt and make fewer acquisitions. investors are also concerned that

in the same boat as mike pearson right now. people are starting to ask exactly pass. morning. we have breaking news? i thought he is only just come to us, as he is gone already. takeover approach from apollo. [laughter] i am talking about ferro corp., it is a u.s. chemicals maker. people say they received a takeover offer from apollo. up 7.25%,e the stock and it is only getting back to its 2015 level. stephanie: up next, a tournament of champions. many togetherg for a vast will competition. you were watching bloomberg. it is time now for a special contest we are having here at bloomberg tv. founder,ed by our michael bloomberg. we have brought together 41 ceo's bringing in their teams. last year the president and ceo of goldman sachs was the game. going -- $420,000 going to charity. jeanie buss from the lakers, phil jackson, there are some people that have a little bit of advantage. but with all of these teams, it is anybody's game. matt: i wonder who will lose the most in productivity during march madness. stephanie: steve ballmer heckling is going to be amazing. peop

mike pearson the ceo is back after a couple of months of medical leave.king to wall street for the first time in a half hour. we're an hour away from retail figures. and new jersey voters can decide whether to allow two casinos in the northern part of the state. >>> we're talking about lyft launching a car rental program with gm. the goal is to let drivers work for the ride handling app without having a car. >> in the united states alone $2 trillion is spent every year on car ownership. and so there's a massive opportunity as more and more millennials and others in cities switch over from car ownership to transportation as a service, they are picking lyft and we want to stay focused on that big opportunity. >> lyft is fighting to take market share from its larger rival uber. >>> a few coveted ferraris help offset weakness at a classic car auction in amelia island. a 1961 ferrari, 250 gtspyder. it sold for just over $17 million. the auction company made a total of 60.2 million in sales including 22.2 million brought in buyerry seinfeld's sale of three extr

sitting on this board after yesterday's announcement and doing a town hall style meeting with mike pearsonen outed as ceo and chairman of the company. they are saying there will not be major layoffs. debt is the priority to pay down here. they are looking for somebody to replace pearson as soon as possible. >> what is happening to former cfo howard schiller? can he be made to leave the board? drew: it starts to get really messy. howard schiller, former cfo and current board member, they have accused him of impropriety and how everything is handled with some of the restatements there and have asked him to resign from the board. he has refused. he has $26 million in bonus he is sitting on. it is probably a lot easier to find that, fight a clawback from inside the board than from outside. angie: sharp shares tumbling in tokyo. nearly a month and since it's board voted in favor of the bailout proposal from foxconn, but the deal has been held up. peter, is there a risk that the deal could fall apart? peter: there is. there is. as you mentioned, we are coming up on a month now since sharp's boar

sitting on this board after yesterday's announcement and doing a town hall style meeting with mike pearsonen outed as ceo and chairman of the company. they are saying there will not be major layoffs. debt is the priority to pay down here. they are looking for somebody to replace pearson as soon as possible. >> what is happening to former cfo howard schiller? can he be made to leave the board? drew: it starts to get really messy. howard schiller, former cfo and current board member, they have accused him of impropriety and how everything is handled with some of the restatements there and have asked him to resign from the board. he has refused. he has $26 million in bonus he is sitting on. it is probably a lot easier to fight that, fight a clawback from inside the board than from outside. angie: sharp shares tumbling in tokyo. nearly a month and since it's its board voted in favor of the bailout proposal from foxconn, but the deal has been held up. peter, is there a risk that the deal could fall apart? peter: there is. as you mentioned, we are coming up on a month now since sharp's board vot

ceo mike pearson is stepping down after a series a call made in company shares.e're joined now by two of our in-house experts. let me turn to you and give us the very basics of what exactly transpired this morning. has two seats but we do not know who is ceo yet. >> that is right. we do not have a new ceo yet here pearson will be staying in until they found -- until they find one. they asked the former cfo, howard schiller, who is still on the board to design because they accused him of financial impropriety. this is a 24-year-old goldman sachs veteran who had just been accused of financial impropriety. because heis this did not get it filed quickly enough? i think there is more to the story. he indicated there is a lot of digging to do. there is certainly more at stake here. afterwas it inevitable last week's massive selloff, was it only a matter of time before fall on histo sword? today, stock reaction says everything. does.it the stock has been surging on the news. it is not clear if there is a fell on the sword here. i do not know what is inevitable with the

is it mike pearson won them over? >> it's different things. they were there prior to mr. . ackman as you know got involved when he joined with valeant in pure suing allergan. now he bought the allergan stock then and affirmed his stock by buying valeant. some people disputing whether it was -- it was legal but didn't look great. >> who could forget that soap opera. still running. >> still running. >> we'll keep an eye on it. we're also keeping an eye on washington. show you a live shot here of the white house where president obama will announce his nominee for the supreme court. we'll bring you that live as soon as he starts speaking. set for the top of the hour. squawk on the street will be right back. tavi gevinson. trendsetter, tastemaker, and teenager. watson, you sound like a fan. millions look to you for advice. i know... i can't believe it. i am learning to analyze social media to spot trends and predict demand. sounds like you spend a lot of time online? i constantly absorb online content to follow shifts in pop culture. so... you're learning to think like a teenag

that's when mike pearson took the seat again.ike could've said to the board listen, i just got back, i haven't been inside the company for two months. we need a little bit of time, it doesn't necessarily make sense to release any sort of guidance we don't have a clean payout which is in the highlands -- in the hands of price waterhouse. david: it's hard to do that when you have an investigation with the fcc. you want to make a disclosure that wrong. stephanie: if you are mike pearson, you might say let's hold off. winnie: among the things we don't know -- we don't know what their auditors found. price waterhouse and cooper has to sign off on this. the sec has questions back and forth. the question isn't whether they can, it's whether they have any idea what the numbers actually are. and that's the bottom line. the question is what this means for investors with the next six months. if it takes six to nine months, this is dead money sitting there. you are to have shareholders sitting in mock because there is no clarity. david: i ha

. >> what does that say about mike pearson? came back into the company, they do not come out with numbers because he said, we are not ready. here they are, boom, a big mistake yet again. who is checking the spelling over there? >> i am at a loss for words. mike peterson reassured everybody and in the time he has been on the telephone with analysts, the stocks fell more percentage points. things are getting weird. >> the approaching square coming out, saying the vice chairman is going to be on the board. they still say the underlying business franchises are worth multiples of what the current market price is now. when you hear things like that, how do you interpret that? >> i can interpret it that he is wrong and has been wrong. he is a very astute investor. but he has been wrong. the business model that they adjusted to when they built this company in the past several years is gone. the capital for them as high. their leverage is massive. the products they look to grow have been going down, not up. alix: other companies took ag

the announcement began with the return of mike pearson.nce call on 15th of march to update their financial guidance for 2016. remember, it was withdrawal of that guidance that seemed to scare investors along with so many other things. seemingly a number of communications missteps at the company by the very least. in a quote, mike pearson who is the ceo, no longer chairman, says we're looking forward to providing shareholders with an update on the company's progress. february 29th was my first day back to work since a two-month medical absence. now that i've returned, i've been working diligently to look at the business so i can share the latest performance with stockholders. stock is up a bit on the news of that conference call, webcast on the 15th. he got some criticism as well for some calling a friendly disclosure. talking with people, but never holding a broad call. scheduled a call, canceled that. it was a strange week. >> the gretchen morganson piece in the "new york times" questions what the cash flow it. the cash flow has been the

saide call, mike pearson we are working on it, but it has a lot of work to do.to involve a lot of work working with the companies who pay for the drugs. this is part of the problem had a lotd --valeant of areas. they had to convince insurers to cover the drugs and because of some of the reputation issues they have been dealing with an issues with pushing the price of drugs, there has been some pushback. we don't quite know exactly what played into the significantly downgraded forecast but part of the thinking is they are getting pushed back from the payer community. if that is what is happening, that's a problem they have to deal with. is either commit more to it and double down or is there a possibility they could sell the drug out into the market? cynthia: i doubt they would do that so quickly, but they could. i talked to a lot of people who really believe in the drug and say it really work for me. it does seem like there's a market therefore, it just needs to be run through a traditional channel and needs to be done right. a lot of research has to be dedicate

putting out a note saying analysts there talked with the ceo mike pearson by phone and saying that the rationale behind the guidance withdraw was related to the fact this was pearson's back day at valeant and needs:to understand the business performance. there should not be any surprises which investors are unaway. whether it's giving more confidence, we'll have to see. >> thank you for now. let's good more on this story with vickie bryant. i understand they are saying it's first day back on the job but the clock is ticking in a number of ways, you have bond investors that have covenantses that may be triggered. how much time do they have to get the information out there? >> i think they are overdo on reporting to investor, they did a disservice yesterday by canceling the call. the interim ceo, perfectly capable of conducting the call. this is the company is definitely in crisis putting off even more information that they have available now, i think was wrong. i think that was a wrong call. and so we don't need to wait until one man comes back to run the show. that's been kind of valea

mike pearson returning is the first time he has addressed the public and wasn't able to reassure folksthere was a typo on some of their guidance for earnings for the next four quarters which they said it was different in the slides. people getting really worried about that. while it is going to try to cut costs as obviously revenues come down from where they thought it was going to be they're going to try to beef up in areas like financial reporting and public relations and government affairs and compliance and things like that. a lot of uncertainty about what's going on here and wondering where the bottom is and they have been wondering for months now carl. and lawmakers are meeting on the hill today to discuss that very topic and phil has the details. >> john to answer your question the rules do need to change because not all of the federal motor vehicle safety standards are applicable to self-driving cars and that's why you have the senate committee on siensd transportation and commerce meeting today talking with executives about what rules need to be adapted from self-driving cars.

valeant is up by 8% after announcing the departure of the ceo mike pearson after also say the cfo of the company, who had been the acting ceo during his absence would resign from the board. howard schiller, who is identified, says he will not resign from the board, i have not done any wrong. the saga continues. incredible story that first out of the heat this morning. thank you. let's check on the bloomberg first word news this afternoon. david mentioned we are waiting to hear from president obama who is in havana meeting with raul castro. the president's first stop on his first full day in cuba was revolutionary square, home to a memorial of a cuban independence hero. is the firstma u.s. president to visit in nearly 90 years. tomorrow history continues with a major speech that cuban officials say will be carried on television. before leaving for argentina the president plans to meet with cuban political dissidents. henry clinton took several shots of donald trump today during her address at the is really it -- american israeli public affairs committee. she said israel's security is

still confident in valeant mike pearson and future of the company. >> he is incredibly driven, incredibly. he's a great problem solver and we're solving problems as we speak, as the model changes and shifts. we think mike is the right guy for the job. >> do you think it will be a $200 stock again? i think you could earn your way into it. we haven't been able to control the narrative. the short sellers dying for some crisis like -- >> darn media. >> let's bring in senior markets commentator mike santoli for more. ubben also said, he only gets rewarded if the company can sort things out and today that looks tougher. >> i will say that the company still continues 24 hours later not to be able to control the narrative. what you're seeing in the stock is mass abandonment of this story. this is a $240 stock six months ago, it's not just about the earnings disappointment or guidance being lowered for this year. if you can believe the guidance of $10 in adjusted erngsz per year, this is a screaming buy. the complicating factors, $30 billion in debt. it's about a $12 billion market cap right now o

sitting on this board after yesterday's announcement and doing a town hall style meeting with mike pearsonen outed as ceo and chairman of the company. they are saying there will not be major layoffs. debt is the priority to pay down here. they are looking for somebody to replace pearson as soon as possible. >> what is happening to former cfo howard schiller? can he be made to leave the board? >> it starts to get really messy. howard schiller, former cfo and current board member, they have accused him of impropriety and how everything is handled with some of the restatements there and have asked him to resign from the board. he has refused. he has $26 million in bonus he is sitting on. it is probably a lot easier to find that fight a clawback from , inside the board than from outside. scarlet: sharp shares tumbling in tokyo. nearly a month and since it's board voted in favor of the bailout proposal from foxconn, but the deal has been held up. peter is there a risk that the , deal could fall apart? peter there is. : as you mentioned, we are coming up on a month now since sharp's board approv

i watched big ackman and ceo mike pearson tag team the positive story. but my rule is severe. i still hadn't heard anything indicating that all of the accounting was kosher. i never heard of a reputation of what citron was saying. as it plummeted down to 70 i was glad my rule hadn't failed me and then walgreens announced a deal with valiant and the stock went up to 15 because of walgreens good housekeeping seal of approval. as we much as we like and respect walgreens, my charitable trust owns it. the valiant stock drifted down as owing to the pearson stepping aside because of illness and some real negative publicity from hillary clinton including this gem. >> it's called valiant pharmaceuticals. i'm going after them. this is predatory pricing. we'll make sure it is stopped. i'm hillary clinton and i approve this message. >> the guy who said that there's no such thing as bad publicity had not watched that message. anyway, then came a second accounting bombshell. the company said it recognized too much profit in 2014. then valiant exonerated itself. the s.e.c. does the investiga

as you know, valley of the ceo mike pearson is in the process of stepping down as the company looks foreader. we are also looking at wynn resorts, of about 2.5 percent. it was upgraded to overweight from equal rate over morgan stanley. the company will be a cash flow machine once a couple of its new casinos do open up. alix: thank you, julie hyman. wall street is wrong when it comes to analyzing liquidity and stocks. its going to new research from standard & poor's. scarlet: analysts there have a new model for examining liquidity. they are saying the way we look to liquidity all along has been wrong. the popular know soon as the less liquidity there is, the more return there's going to be. you are taking a risk premium. what s&p is saying we looking at the wrong measure. instead the level of liquidity, we should be looking at the rate of change or whether or not it's increasing. that's easier said than done. is veryething that intuitive. if liquidity is increasing, that usually means profits going up. alix: it's after the fact. joseph: it's just a matter of recognizing and and building

sitting on this board after yesterday's announcement and doing a town hall style meeting with mike pearsonen outed as ceo and chairman of the company. they are saying there will not be major layoffs. debt is the priority to pay down here. they are looking for somebody to replace pearson as soon as possible. >> what is happening to former cfo howard schiller? can he be made to leave the board? drew: it starts to get really messy. howard schiller, former cfo and current board member, they have accused him of impropriety and how everything is handled with some of the restatements there and have asked him to resign , from the board. he has refused. he has $26 million in bonus he is sitting on. it is probably a lot easier to fight a clawback from inside the board than from outside. angie: sharp shares tumbling in tokyo. nearly a month and since it's board voted in favor of the bailout proposal from foxconn, but the deal has been held up. peter, is there a risk that the deal could fall apart? peter: there is. as you mentioned, we are coming up on a month now since sharp's board approved of the d

mike pearson saying we lost a quarter. the first quarter was really bad. a quarter.e're in the first quarter and he's saying it basically doesn't count. it's not in the guidance. nobody understand what is is going on. >> meg, appreciate it very much on top of the story and will be throughout the day. welcome to the program. it's good to talk to you, sir, welcome back. >> nice to be with you. thank you for having me. >> you're probably happy that you no longer own valeant as we sit here and have this conversation today. what do you make of this situation? >> well, i kind of see -- we have both seen this movie before. the company crew as a result of a roll up strategy. they took high priced stock for a lot of businesses, used a lot of debt and they lost their multiple which meant their equity was not a currency for acquisition and they exercised their debt on options so they couldn't put more debt on the balance sheet and the market is striving to figure out what the recurring earnings is and this company's here and we got out sometime ago an we're an innocent bystande

. >> that sounds like mike pearson's to-do list and when do you think actually happens. >> it was moregy and how valeant goes about repairing their business. don't forget that $51.30 that you see there is after the company and in reality how are you going to make them more valuable without having to raise prices. that's obviously going to help you. >> do you think that's high at this point? >> the market is looking? >> is it tempting to even do so now. it sounds like it could be at risk of defaulting. >> no, i'm not tempted right now to buy it. at the end of the day valeant is a black box and people woke up this morning and saw the earnings report and during the day when analysts went to their fund manager and said what ex t exactly do we know and when you don't know what you own it's probably time to sell and there's no reason for me. have to put my capital in somethi something. >> stocks that also felt the sting in the aftermath of what happened with valeant. you've called to it. do you think that this is the next one? >> i think, as i said before, they make valeant look like choir b

we have spoken to mike pearson and valeant management and we're delighted that his health has recoveredand he has returned as ceo so he can work on behalf of the company and shareholders. much of the uncertainty will be resolved in the relative short-term hopefully over the next few weeks when we expect the company to issue results and update guidance and file it's 10k. valeant's core franchises remain strong but we continue to believe valeant could do a better job with it's public and investor relations. who know what is will happen in the next couple of hours with that name but that stock remains under pressure. hillary clinton rolling out an attack add and more news on the regulatory side there. coming up, apple and the fbi back on capitol hill today. we have the latest on privacy versus security and the fight there. plus pete has a hot hand with his trade in the casino stocks but is his best bet to take profits now? find out if he's folding on wynn. >> i see what you did there. owen! hey kevin. hey, fancy seeing you here. uh, i live right over there actually. you've been to my place

ken ceo mike pearson do it? ♪ david: i'm here in the green room -- coming up in the next hour is a special guest, tom preston. we will talking to him about the media, of course. julie: this is the bloomberg business flash. a big push into electric cars and self driving features. harold kruger will broaden the range of lucrative luxury models to pay for the strategy. moreans to come out with suvs and wants more versions of high-end models like the bmw seven series. prosecutors say there is insufficient evidence that setbacks are hampering prosecutors of high-profile cases. oracle has reported fourth-quarter profit that beat estimates. that oracle is making progress in shifting away from the traditional software. shares are trading higher. stephanie: shares of valeant still falling this morning after dropping more than 50% yesterday. the selloff was sparked by an earnings call. concernspearson faced from analysts over the health of the company. discuss, a piper jefferies analyst. what has been your call? when 28 o

mike pearson the ceo of valeant has taken steps to ensure employees over the company's plunging share he sent a memo saying the business won't go bankrupt and apologized for the recent turmoil. shares are down by around 57% this week after having -- halv ving in value. me to the eu president the turkish prime minister this morning to discuss a deal to flow ofkey stem the refugees into europe. go onto brussels this morning. the weather looking pretty foggy , as is the politics, perhaps. ryan: look, the eu countries agreed amongst themselves to a draft deal with the turks. now they have to get the turks on board. there are three things the turks want. first off, they want an additional 3 billion euros on top of what was already agreed as an exchange or compensation for their assistance in the refugee crisis. it looks like they will get that. the second thing they want are speedier or more intensified membership talks. there is a feeling in brussels that while few countries are prepared to accept turkey into the eu anytime soon, they can fudge around the edges politically to grant that r