perrigo up 6.50%. mylan will be under increased pressure to make the perrigo deal happen. there is another name in this. a fifth stock and that is abbott. abbott is mylan's largest shareholder after it bought part of mylan's generalje ne sais quoigeneral generic drug business last year. abbott's ceo came out in support of the perrigo deal and against the teva deal last month. folks are annoyed that isn't happening on the abbott side. >> you made the point earlier allergan could go in your words, elephant hunting, looking for the big deal. >> one analyst was picking names like amgen, biogen as potential targets. and he talked to sam eisley act actavis could be shrinking itself to be bought. >> how much consolidation and concentration are we seeing in this industry? what effect will that have on prices people are paying for these drugs? >> one side people say consolidation we are seeing among insurers is driving this consolidation among drug companies to keep the power balance. insurers are pushing back on high costs of drugs. they are getting together to push back on that.

the simple question is what are perrigo shareholders willing to accept.jected a price -- the price is below with management rejected because of the fall in shares. a significant fall that teva is suffering from too. they own 4 .6%. they bought that stock in order to get standing in the dutch courts. they'll be a seller nature presents something of an overhang. one would expect they'll get rid of it in due course. >> this is going to get tougher and tougher with these mergers. all these hmos -- >> that is the key question. you do want to see consolidation among the players but you're right. >> could there be a bit of peak or anger, teva toward mylan saying you could have had this amazing bid that we're giving to brent at allergan but we're giving it to him so take that. >> stick with the bachelorette. >> stick that in your pipe and smoke it. i don't know. but i don't get to say that very much after this. >> you won't have to say it anymore. and i may not bring up the running man if baidu keeps going down. >> let's go to rick. >> reporter: good morning. as

and could perrigo lock down a sale to get a better buyer than mylan?lan was down double digits. >> long mylan, long teva which we call a texas hedge, as teva dropped their bid for mylan but was rewarded i guess, good earnings on the street. liking this. but it seems like as long as the street keeps rewarding large acquisitions even if they're dilutive, even if they're expensive, why not continue to do it when you have those huge cash hordes? >> it is interesting to see the acquirer being rewarded. >> this deal sounds so friendly, right? these guys -- the head of generics ran allergan at one point. lightning the mylan deal -- i think people are throwing a premium on this deal because they think they can work together. >> guy, what's your trade? >> pete has talked about ways to play mylan vis-a-vis options i'll let him do that but i think identifies yers interesting. pfizer's definitely in the game. the stock's traded well in the last six months. i think mylan down here is big. i don't think there's any way anybody buys amgen. a 10% premium on their mark

teva has rebuffed its offers until now, and mylan has also tried to make an offer for perrigo to fend teva's offers. we are talking 86 to $88 a share, that is whatever might offer. that would value mylan around $42 billion. ofhave seen a vast amount consolidation within the pharmaceutical industry since april without any resolution. we will see if this higher price does sway mylan more than it has thus far. the pharmaceutical merger beat continues, even if we are seeing this destruction. pimm: cava has about a 4.6% stake and mylan. has about a 4.6% stake in mylan. taking a look at china, policy makers coming up with new tactics to try to stem a route that has $3.2 trillion off the world's second-largest stock market. that: not everyone finds plunge disheartening. >> china is taking an economy of $11 trillion or $12 trillion in trying to grow it at 6% or 7% a year. year and at at 10% a but had ever done it at that rate. there are some areas of concern but generally i think the chinese economy is a good place to invest. betty: we are joined by bloomberg's laura score be who boris -- fou

is perrigo going to this money? laura: it doesn't sound like it.ave to look at where the bond price is. they trade between $.10 and $.15 and a market does not believe it will be paid. you a different government officials say they don't have the money to pay but they have not actually said they are not going to. mark: what are the consequences for puerto rico? would this be technically a default they don't pay? understand that the rico, some of the parisian journalists have said -- some of the reagan -- eureka and journalists have said it would not technically be a default. there is usually language what they call an event of default which is a legal definition. in these bonds, they don't have that investor protection. they are really viewed as bonds that are low hanging fruit and that's why people think puerto rico will default on these rather than others. nok: so if there is technical default, there should be a ripple effect? laura: that will the impact to the larger market. some people expect puerto rico two to date down on the thought that this

then we get to the perrigo side. which is when will mylan set the date for a vote of their own share holders for a pair i go bid? they have their own decisions to make in terms of a tender offer there under irish law and what would follow. yesterday, with he had miles white come out and say, the pair i go acquisition is something they clearly endorse. my own assessment of that as a shareholder of mylan, it is not likely to happen. >> on that one, couldn't agree more. we will see what happens from here. >> it had been a while. >> a lot changed at 8:30 eastern. we saw the big drop in jobless claims. down 26,000. what's going on? there may be issues seasonal issues, plant closing, residual implications from hol isidays. there could be percentage working in labor force participation. maybe a lot of the people that would have issues with jobs aren't counted. they aren't in the system anymore. what's left and the type of workers and positions they may have may have leveled out. those that want to work are in demand to some

perrigo is an israeli company that's based in ireland.he manufacturing products are in michigan but it's really from philadelphia. >> and mylan is a pennsylvania company but actually dutch, although for tax purposes it's a uk jurisdiction. uk taxes. corporate but -- >> who can understand this stuff? >> incorporate ratedd in the netherlands. >> >> let me hash tag head explosion of pfizer ceo. >> it is not a level playing field. it is not. with the taxes and everything else, it is not. what has happened with the inversion change done by treasury, they've cut it. now it makes it difficult but our companies are disadvantaged versus companies that do business here. it's not quite right. >> that's why if allergan takes power and buys am jen, it can make it to am jen and make it so they pay fewer taxes. >> tablo is out. >> this was the first time they were below 70. they hit 65. they've had this great so to speak. and the revenue has had growth. they have high expectations. the highest expectations of anyone in the work now that sales force jamm

folks are wondering whether this puts pressure on mylan to do something including up its bid for perrigoear it will get bought out by mylan. you see a lot of upside. looking ahead to tomorrow this ties into today because we're going to be hearing from merck and pfizer, something people are talking about in health care. folks will be listening to whether they could be interested in buying the newly shrunk allergan. that's something on the call. people will be listening to how the launch of the new breast cancer drug is doing. the potential m&a activity. for merck they have a cancer drug on the market. people will be listening to that. all of these multinational companies will be a dollar story. what is the impact of that. for gilead, people will be wondering what they're going to buy. also the health of its hepatitis-c franchise and what the growth trajectory looks. gilead often has been a bellwether for sentiment in biotech. as things have been looking so negative recently folks are wondering whether gilead can bring the whole industry up, scott. >> wow, meg, there's so much to keep your

this puts a lot of pressure to do that deal with perrigo. their stock up about 4%. in an environment in health care where it appears consolidation gee begets consolidation. allergan's ceo saying consolidation among pharmacies went into the rationale for doing this deal. and now you're seeing allergan might be able to turn around and do more deals and mylan may be forced to buy. we're in the middle of the swarm. >> it seems we have a new deal every single day, meg. we appreciate you keeping it straight for all of us. meg tirrell at 30 rock. we want to check in on the broader markets. the dow, s&p and nasdaq are trading lower for the fifth day in a row. that hasn't happened since january. the dow is down by 104 points. off the lows. the s&p down by a third of a percent. the nasdaq down by about half of a percent. the nasdaq still up about 7% this year. still up about 1% for july. that's a different story for the dow and the s&p. grubhub, the first mover advantage for that company could be eroding that stock down 10% on that down grade and shares of box rallying, overw

teva is dropping its bid, perrigo is up. this puts more pressure on mylan to get this deal done. of the deal in the drug space continues, carl. >> it's so hard to keep track of in story it's amazing, thank you, mech meg terrell in new york. when we come back this morning disney's bob iger speaking out on "squawk" early this morning, what he had to say about the future of espn. more on that exclusive in a momentch before we head to break, another check on the market. the s&p moved, it is obviously still very early. we'll be back in a minute. >>> disney's bob iger speaking out if an exclusive interview, talking everything from china and the future of television and espn. our and drew ross sorkin joins us, what an interview, man, it's all everybody is talking about today. >> thank you carl thank you for presenting that. we did have ob iger on. perhaps the big news we haven't heard him talk about this hinting at what happens in the world of real unbundleing, two it's prized asset, espn a third of disney's business questionings have always existed to what happens to that in an unbundl

perrigo up. now that mylan is going to continue to per sue perri go o in that biotech game.o some big caps that are doing well today, american airlines even as the airline index is off 3% is up after posting better than expected earnings. as usual, the usual suspects amazon and google are up on a day when the rest of the market is down. >> bertha thank you. >>> china and europe roiling the markets today. uncertainty overseas causing a lot of anxiety for traders and maybe even for you. but how will it affect the fed which is meeting this week? let's bring in senior economics reporter steve leisman. steve? what say you? >> i think it is a big factor. i think the factors that are out there now. so they pretty much have -- are where they want to be on jobs and job growth. that's one. the big factor outstanding on domestic is the inflation level. then the third factor i would say, determining whether or not they hike rates is what happens globally overseas. i want to give you a little heads-up. folks, this is off the record so don't tell your friends about this. it's our fed surv

mylan is out, they say they've got other plans and looks forward to merging with another drug maker perrigo're up and down. >> i've got my scorecard . stuart: well look is who is the next. eric balling cheap oil good for the economy. butbut 150,000 people already lost their jobs because of the chal cheap oil. we'll have that in a moment that's where at&t can help. at&t has the tools and the network you need to make working as one easier than ever. virtually anywhere. leaving you free to focus on what matters most. [ male announcer ] some come here to build something smarter. ♪ ♪ some come here to build something stronger. others come to build something faster... something safer... something greener. something the whole world can share. people come to boeing to do many different things. but it's always about the very thing we do best. ♪ ♪ >> i'm nicole with your fox business brief. the dow industrial average has been down close to 170 points now. down just 82. we are seeing selling across the board. we took it from china the shanghai disintegration had its worst day in 8 years. and that's wa