. >> it's all about shyer willing to recommend the proposal of 53 pounds 20 per share. aty are valuing the deal $53.7 billion takeover. you have a stock of eight percent at the open this morning. done now? finished? >> fit time lucky. if the fifth time they have put in an offer, and it seems to be welcomed at last are the board of shyer. they have said they will likely recommend the deal going forward. this is 31 billion pounds. this is more than $51 billion. attractive? corporate tax a key issue. you're going to move your legal to the from ireland united kingdom. why bring it to the u.k.? are clearly enough executive offices to make it. it is about diversification. bbvie is very much focused on rheumatoid arthritis drugs. you get on board with a company like scheier, somehow you are in rare diseases. you have more diversification. it's about not having to re-patriot. arthritis those snowboarders. no borders.- knows >> are they going to change anytime soon? >> the short answer is no. are going to talk markets after the break. european stocks fell more than three percent

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." >>> sweetening the offer to buy shyer and that's where we begin the market focus. the new cash and stock proposal is worth $51 billion, that's $5 billion more than the last bid or 11% higher. shire's board said take over approaches under value the company but no comment on the latest one. shares of abbvie fell 3% to 55.69 and shire down 3%. >>> cummins announced plans to increase the dividend. it upped by 25% to 70 cent as share. the board authorized a stock buy back of $1 billion after it completes the current $1 billion repurchase program but despite that shares fell to $155.96. >>> elon musk's plans to expand in china hit a detour. they face a trademark inflingment lawsuit in china. tesla announced a settlement of the case between the company and a chinese businessman in january, but now, he is taking the auto maker to court and demanding that he stop all sales and marketing activity in that country. shares of tesla were down more than 1.5% to 219.07. >>> this dividend from kla, increased by 5 cents to 50 cents a share and also announced a $1 billion stock buy b

humirah beat on the top and bottom line and last week the company announced it is planning to buy shyer for $55 billion. despite the earnings, shares off to $53.18. >>> xerox posted mixed results with revenue coming in belowest h estimates. investors focused on that good news and the shares of xerox up to $13.15. >>> shares of swift transportation went the other way, after it issued a disappointing outlook and warned of a driver shortage. the trucking company said it was going to have to spend more on wages and training to attract additional drivers. but the ceo of riders sees the trucker shortage as an opportunity. >> there is a shortage of truck drivers, that's a great opportunity for rider because we have 6,000 commercial truck drivers that are employees. so we have an extensive driving recruiting network to bring drivers into rider and companies having trouble recruiting drivers will outsource that. there is clearly a shortage of drivers today. there is some wage inflation over the last couple years and i expect that to continue. >> shares of swift transportation fell 18% to $21.20

pinnacle foods has scrapped its sale of the hill shyer brand.eive $163 million in a breakup free -- breakup fee. it frees up hill shyer to be purchased by trending for the companies. the nba free agent -- free agency begins today. all onwade, chris bosh, the market. lebron james, named the most valuable player in the nba, opting out in the final two years of his contract to become a free agent for the second time in four years. where will will lebron james go? 26 minutes past the hour, meaning that bloomberg television is on the markets. equity futures are showing another day of gains where we have been on six quarterly winning streaks in the market. all of which has been help by overnight,at we saw including chinese manufacturing, accelerating more than expected. just giving is more to explore for investors to get into it around here. "on the markets" again in 30 minutes. in just a few minutes jack lew will be speaking in washington on the state of u.s. china relations. a discussion that is being hosted by the u.s. china business council ahead

and pharma trying to buy shyer.ing the pipeline, getting ahead of patents expiring. this is the disruptive innovation, if you like, catching up with the boardroom and chief executives saying they have to act. >> matt, thank you for joining the m & aand and a -- boom in the u.s. up, mohamed el-erian is joining me to break down the it means forhat the u.s. economy, and the fed. that is tomorrow, starting at 8:00 a.m. eastern time. ♪ >> it is 56 minutes past the hour and that means bloomberg television is on the market. we are minutes away from a read on factory orders and right now, makes read -- a mixed read on stocks. the dow jones is little changed from yesterday stop within three points of reaching 17,000. we are not quite there yet. look there,taking a the adp employment number was better than economists anticipated. perhaps that sets us up for a fairly decent june jobs report that comes out tomorrow because of the holiday shortened week. at 2.6 zeroyield is percent, the-about a week. and copper is 2.7%, fairly f

what price will anybody pay for shyer -- for shire? frenzy in the market seems to has -- seems to have dissipated. and when all -- and renault had a good first half. the kind of models that are selling -- europe sales rose by 18%. argentina, russia, down double digits. argentinian sales fell by 20%. russian sales fell by 10%. we talk about the differentials in terms of what is going on in the currency market. euro-dollar trades just under 1.36. traders have not been this short on this currency since 2013. momentum is building on the short euro position. back to you. >> thanks. as we head to the break, it is time for today's pulse number. 54,250. that is how many tennis balls it took to get through the wimbledon championship. the balls are stored at 68 degrees fahrenheit and changed every nine-game. the official ball supplier for wimbledon since 1902. later on on bloomberg tv, we will be talking live to the new wimbledon champion, novak djokovic. the bead roger federer in five sets to reclaim the number one ranking. ♪ . >> welcome to "t

the shyer chairman thomas who is -- chairman, who is a nonexecutive chairman, led the process. that was entirely appropriate. here you have a chairman and ceo who was entirely conflicted leaving the office bin in we try to do a shareholder referendum. the company fought back. it would cause delay. we launched a special meeting process. the company could hold a meeting of the shareholders to ask them what they think. it is what people call defending the company. on the conference call they talk about doing an all cash deal. i am frightened about that, as is every shareholder. right and allergan is ignoring its largest shareholders, don't you think we would have heard from some of these people before? wouldn't people be speaking up? in a public way they are. here is how they are speaking out in a public way. they sold their stock after meeting with david piatt. the reason they stole the -- they sold their stock is they believe the company could justify the value of a valiant transaction. i think david piatt told him, as he told everyone, that he has no interest in doing a deal ov

they have been re-bought three times abide shyer. -- by shire. what happens as this week?t do we expect? war whichin the air andat the making of case the presentation for the takeover now we have the ground chief executive here in london a meeting with investors and trying to make their case and also signed -- sound out shire's deal. everybody expects abbvie to make bid and gauge where it needs to be to push shire. they are trading at 45 and what is the number that the abbvie management is talking about? >> in the analyst world, a number of estimates of what it will take. they tended to all-star with a five or a six. does all starts with a five or a six. a all start with a five or six. >> it is a different a case. a week or so ago, it has succeeded at going up power as it has done when we talked about pfizer coming over and trying to take over astros in a call. are there similarities? or shire does not do a lot of a redevelopment here? there's always a domicile which is in the dublin. a difference? >> it is right. it is not a political story. zero chance of the executives

and in a, more shuffling of the deck chairs, abbvie over shyer.here is a lot of cash sloshing around. what is going to drive us in the second half? more m&a or earnings? where should i be focused as an investor? >> in the u.s., it is going to be the taxi version issue. -- the tax in version issue. obviously, essentially a tax in version driven strategy. essentially highlighting the difference in tax rates between the u.s. against a country like ireland. >> why couldn't they move to changing rates? everybody is talking about whether they get the legislation in place. how quickly could that be done? >> i don't think they do anything quickly in the u.s. from a legislative point of view. there is enormous resistance. in many ways it is the right policy because it enables companies -- enables the government to redistribute income. the companies definitely aren't passing the savings on to the employees. >> most assuredly not. tell me about some of your top themes. you've got energy and materials. now you have the cost of the rate cash return, for exampl

they've been seen to be a little shyer about sanctions than president obama has. >> it most certainlys an uptick. in fact, i was reading memoirs. it was interesting to hear the sound bites you started your show with with reagan and gorbachev. i look at what the united states did after the crackdown on solidarity in poland. there was big debate between the european union and the united states over pipeline building. they were lesser sanctions than the one we saw today. so that gives you a comparative of how serious this is that says, you're right, there was a carve-out for gazprom. the russian bank was left off the list, and, of course, i think most disappointingly, so far the french have continued with their sale of their warships to russia. that in my mind is a disappointment. >> that would also imply, though, that there is more room to grow if russia continues to act in a way that continues to be provocative enough that it inspires more of a crackdown. i mean looking at this in historical perspective, raising the issue of how the west dealt with the soviet union who when it was in a

the ink in the record books had barely dried when abv announced its intention on friday to require shyer for almost $55 billion. according to the july 15 edition of marketplace -- and i'm going to quote here -- what's going on now is a feeding frenzy. every investment banker now has a slide deck that they're taking to any possible company and saying, you have to do a corporate inversion now because if you don't, your competitors will. the congress has been aware of the inversion problem. the underlying sickness continues to gnaw away at our economy with increasing intensity. the american tax code is an anti-competitive mess. accountants, lawyers and fast buck artists looking for tax shelters feed off it. this mess is driving american investment dollars overseas, and according to the joint committee on taxation, it is costing american taxpayers billions. on a bipartisan basis, the finance committee must respond now. the in verversion loophole need be plugged now. second, let's use the immediate steps to apply the indisputable ultimate cure: tax reform. let's, however, recognize that what

coming up, we will talk more on to and dive into the deal buy shyer pharmaceuticals. ♪ >> you are watchingp." let's go back to the business of deals. shire was bought for $18 billion in this is the latest of a huge wave of m&sa. this year. 53%activity has climbed from last year. is still with me. the biggest distraction for you between m&a and back in 2005? happened -- it's don't think we are in an animal instinct environment but these numbers are crazy. the fear is gone. all of this stuff going on in the ukraine and the middle east and the rest of it, if this were 2011, everything would have come to a halt. there has been some impact but not the kind of ferocious impact we had in the shadow of the financial crisis. . inhink the fear is gone and the meantime since 2007, companies have told a lot of cash and deleveraged and bought back tons of stocks and you can only do that for so long and you have to do something strategic eventually to buy or build on that usually results in people buying. you make a good point about buybacks. a few analysts said to ge to just buy back stock. they have b

abbvie has agreed to buy shyer.ing about the retroactive law. >> we are not into merger arbs . greatt to find fundamental companies. the u.s. has not done them many things on a retroactive basis. i think this is more of a warning or a stick. >> saying, don't do this going forward. is another company like. we wanted to get your thoughts on why you like mastercard. a lot of headwind for the industry overall. what elected over visa? particularly in the long term when you look at all of the digital disruptive startup payment companies coming online that are going to compete with the old-line companies. >> the majority of technologies we have looked at still use the existing system. mastercard and visa are entrenched. >> there will be the eye wallet out.allet coming >> will you let them go straight to your bank account or do you want an intermediary? i one intermediary. most transactions or paypal are funded with credit cards. >> that is very true. you do know you have a backstop when you use mastercard, visa, or america

the ink in the record books had barely dried when abv announced its intention on friday to require shyer for almost $55 billion. according to the july 15 edition of marketplace -- and i'm going to quote here -- what's going on now is a feeding frenzy. every investment banker now has a slide deck that they're taking to any possible company and saying, you have to do a corporate inversion now because if you don't your competitors will. the congress has been aware of the inversion problem. the underlying sickness continues to gnaw away at our economy with increasing intensity. the american tax code is an anti-competitive mess. accountants, lawyers and fast buck artists looking for tax shelters feed off it. this mess is driving american investment dollars overseas and according to the joint committee on taxation, it is costing american taxpayers billions. on a bipartisan basis the finance committee must respond now. the in verseversion loophole needs to be plugged now. second let's use the immediate steps to apply the indisputable ultimate cure: tax reform. let's, however, recognize that wha

theher deal, looks like making of fifth offer for shyer, based in ireland. wherer inversion deal they would move corporate headquarters to the u.k. week for you,ay earnings season is truly upon us. we have two people from two different worlds, jonathan golub and marshall sean &. marshall, these deals we are seeing, the idea of lindt chocolate and russell stover, are these deals from 20 years ago? >> in some ways, yes. , attremendous run-up in m&a a run rate is that continues at $20. comments from the same industry getting together to say, let's have more market share, take some cost out of the more prominent stock. >> why are we seeing almost 1930's combinations versus financial transactions? >> you're talking about these of equity and deal, mergers, strategic corporate mergers. stages of alatest five-year bowl. >> the latest or late? >> both. you have companies with very, very solid equities and everybody knows it. they're using the equity as a currency. >> do you believe this rally integra girl is of interest rates increase? >> the big issue here is, i yea

news, now retracting statements on support for a transaction with shyer. -- shire. >> the company sayingt to clarify some reports that were misleading. >> interesting to see what share pricesshire as they open. >> citigroup may be up to $7 million to settle allegations that it sold mortgage-backed ons before the 2008 crisis. that is according to the new york times. jonathan ferro joins us. what can we expect? >> another big fine, by the looks of it. i said, what is the biggest headwind for the industry right now? it is clearly litigation costs. multibillion-dollar fines. we study credit suisse find it bigger and bigger. confirmation at how big this particular fine will be for citigroup. according to a person familiar with negotiations, we could get eight -- an agreement with the justice department. it is not about conducting transactions with entities under sanction. this is not about helping clients avoid taxes. >> this is legacy stuff. >> it is about a program into mortgage ons and a probe -- bonds and a probe into them. said -- isself has said to have offered half of this to prosecuto

making a bid to buy shyer. will it be enough?ll discuss . . >> welcome back, you are watching "the pulse." i am guy johnson. these are the top headlines. israel has launched its largest offensive in the gaza strip and nearly two years, carrying out an aerial assault, killing three palestinians in the process. an army spokesman says hamas has to pay for the rocket attacks on israel. citigroup i settle a probe into the mortgage-backed wants with federal prosecutors as early as next week. "the new york times" reports the figure could be $7 billion. united states and china kick off their annual economic talks in china. u.s. treasury secretary jack lew and secretary of state john kerry are both in beijing. both countries are facing off the south china sea. to the markets. >> there's absolutely no reprieve to these equity markets. yesterday, 85 points the biggest one-day drop in four months. in dax had the biggest drop 44 sessions. we are continuing this momentum will stop mario draghi speaks later this evening in london. we don't real

bbvie is making a fourth bid to buy shyer with an increase over the last proposal.mmerzbank might be the next target in alleged violations. they're likely to pay a penalty of at least half of a $1 billion. the u.s. has brought 22 cases against banks since 2009. last week's fine against bnp paribas is the highest on record. during this with more is rumored into being editor bill cohan. , the latest example of what seems to be a crackdown on big banks. what you think will be the bottom line, the overall impact? >> well, betty, this is a long time coming as well. there has been wrongdoing by banks that we have known about 2008, andince 2007, here we are in 2014. obviously it takes a long time to develop the cases are now they are pursuing them. they all seem to be coming at once. you know, the bottom line is these are all foreign. -- finds. fine, andpay the hopefully not repeat the behavior again, but it is not peoplee as holding personally responsible or putting out of business. >> anyone that is at a bank right now and looking at the career on wall street and saying

the us drugmaker is buying shyer of ireland, page $54 billion for it.s will allow you and other us company to leave america for greener tax pastors overseas. they're going to to dublin, ireland. ed, this is a flood and it's an increasing flood and frankly i don't see it stopping. quickly. >> washington in these high tax hasn't figured this out. money will go where it's rewarded and right now this -- they have lost all the tax revenue. cubbies will drop their tax rate 9% from 22 to 13. they with them billions of dollars and their shareholders will be happy and that is what the game is. that's who they report to, their shareholders. stuart: mary, what you have on this? >> abbott lab ceo, where he says this is legal. look at the facts, the reasons companies do this is because when they get foreign earnings after they do these deals they can do whatever they want with those born early without being punished. it's a great up and and kudos to him for standing up as a ceo and taking a stand. you don't often see that. stuart: he has been pounded for being unpat

in this way, which is the right honorable member -- the right honorable member for north west ham shyer has served in this house of commons for over 40 years and he will be retiring after the next election. so when it came to replacing an extraordinary politician and someone who has given so much to this country as the chief whip, i wanted to find the very best candidate and i am proud to have done so. [shouting] >> ed miliband. >> is obviously got a short memory, mr. speaker, because this is what he is to say about the education secretary. i want to stress the education secretary to get on with that job for many years, rather than saying i am now going to shut the welfare somewhere else. so why did he do it? isn't a shortage of unqualified to teachers or the failure of his preschool is quite >> ltd. with the former education secretary cheats. a record number, new preschools, standard rising across the country unreformed that will ensure. it isn't an extraordinary that the day at a record increase in the numbers of working in our country, he will do anything not to talk about economic r