at takeda pharmaceutical wants this company. absolutely.rewind back to march of this year we saw large pharmaceutical giants considering getting involved in a bidding war so you can see that shire is a company that has attracted international attention in the past and this is because of its rare diseases sector. at takeda pharmaceutical, rare diseases already encompasses a certain percentage vote shire is a market leader. it is expected to be a fast—growing market and takeda pharmaceutical want to snap it up. are there any concerns about the price, the $59 billion. takeda pharmaceutical will prop burghley need to borrow quite a bit to snap this up. that is the question that was waning ahead of the extraordinary general meeting that happened this morning, whether or not the leveraged ratio would be so high it could threaten the potential dividend that shareholders have come to know and love. the company has already announced that they plan on doing $10 billion —— to divest $10 billion and the lion of takeda pharmaceutical throughout this acq

despite the fact $59 billion, a lot of money, and takeda will have to ta ke of money, and takeda willke on quite a bit of debt to make this happen. roughly $31 billion of debt, a lot of money in an almost $60 billion transaction, naturally there were shareholders concerned about the size of the debt and the ability to maintain dividends. the ceo is determined to go for this, they are talking about the big benefits, what do you think this will look like, this newly formed company, what will be the big and if it's for them and some of the headwinds? one very big benefits, it will give takeda much larger access to the biggest pharmaceutical market in the world, the us, at the moment, about one third of revenues are generated in the us, once the deal goes through, it will be roughly half their revenue generated in the us, which is massive. the other attractive area which they operate m, attractive area which they operate in, rare disease treatments, whereby they have pricing power, because they have pricing power, because they are the only people that can provide drugs that help to treat

it's been approved by takeda's shareholders.trategy to become a global pharmaceutical company. the firm wants to buy shire to strengthen its cancer, stomach and brain drug portfolios. the deal, which needs to be approved by shire's shareholders, will saddle the japanese firm with a lot of debt. david madden, market analyst, cmc markets. he is here to talk about this. shire's share price has risen around 396, shire's share price has risen around 3%, is it likely shareholders will approve the deal? i think it is looking likely they will approve the deal although i am not sure why takeda went down this route. the proposal on the takeda side will put forward a major amount of new debt forward a major amount of new debt for the new group and net debt will increase the video group by about $47 billion and in return the new organisation backed by shire shareholders will have a global revenue of $32 billion so it seems they are paying a lot of money for a small return in terms of revenue. the share price of shire has rallied about 46% s

then, in late march this year, takeda said it was considering a possible offer.the news on that day. they have been going back and forth with various offers. in fact, five offers later, in early may, takeda struck a deal to buy shire £446 billion, so that's about $64 billion, so that's about $64 billion, and just last month the eu gave its blessing with conditions. let me show you how the two company shares have been performing since the beginning of the year, especially march, quite typical that the buyer shares were not doing well, while shire shares have been doing very well so far. takeda shares are down some 1% ahead of the vote, we will continue to monitor what happens. 0k, vote, we will continue to monitor what happens. ok, if it happens, it will change the face of the pharmaceutical industry. thank you so much, mariko 0i. moving onto the energy market and many of the world's biggest oil producers are gathering in vienna, austria tomorrow, as opec and are gathering in vienna, austria tomorrow, as 0pec and non— are gathering in vienna, austria tomorrow, as

. >>> shirer provides a bligright spot for europe as shareholders of takeda secure a $46 billion takeover of the firm >>> good morning, everybody. lots to get through. first i want to start off by bringing you pmi data out of euro we got the final pmi services number for november, that came in at 52.7 versus the 52.4 flash. a bit higher for the final number crucially still lower than the october number which came in at 53.1 again, just to reiterate, these are the lowest numbers since september of 2016. the final composite future output pmi has come in slightly higher than the flash, 59.5 versus the october number of 60.5 that's a picture for the final pmi numbers out of europe being reviewed a little bit higher but still much lower than october. let's get in and talk about some of the broader market action we've had over the last couple of -- 24 hours or so let's start off by looking at the european heat map. as you can see, i'm almost blending into it completely today. very little stocks trading in the green. about 85% of the heat map is trading in the red we had a heavy selling day in u

i'm sally bundock. japan's biggest—ever overseas takeover gets the go—ahead as shareholders in takedareed in trade talks between presidents xi and trump "as soon as possible", easing investor scepticism about the truce. and how other financial markets in asia now given the massive losses soar on wall street on tuesday. as you can see we're seeing declines but for some markets they

keeping an eye on stocks like to cater -- takeda.t is just a look at what to watch when the markets open in japan and korea. this is bloomberg markets. ♪ haidi: a very good morning. i am haidi stroud-watts in sydney. asian markets have opened for trade. shery: good evening. i am shery ahn. sophie: i am sophie kamaruddin in hong kong. welcome to "daybreak asia." haidi: our top stories this tuesday, asian markets head for declines after the wide selloff in wall street. the s&p 500 facing its second-worst december on record. opec has its work cut out for them to stabilize oil prices. crude is trading below $50 in new york for the first time in a year. shery: the fed is under attack before the last meeting of 2018. president trump leads criticism of an expected rate hike. of course, that rate raise would be the fourth this year, coming amid concerns over slowing trade tensions, and geopolitics, and the potential government shutdown here in the u.s. that all weighing on the markets, really risk off markets, across the world. let's see how

this is one of the last hurdles that takeda needed to cross.s down over half a percent -- volkswagen is down over half a percent. ford in the with hopes of building vehicles in the united states. shareholders are not buying this will appease the white house. appley, stmicro -- is saying they're getting their marketing team to push iphone sales. punishing sales are pushing stmicro today. theresa may is locked in a power struggle with the house of commons over brexit. she lost three votes yesterday. parliaments now has a potential over britain'sy plan b. 48 hours onbusy brexit, hasn't it? succession of votes. the pound has drifted lower. have to lookuld back more than two years. we first heard about the result of the referendum and said this was ludicrous. we will have to restructure the renegotiate all of the trade agreements. is no surprise we could not have had this type of vote, to vote much earlier. f thishedged for most o fthis time our sterling risk. not so much today. there is a real reduction in u.k. growth. we don't have any more answer

takeda will maintain headquarters in japan. as 100 million $180 as much asloans -- $180 million in loans. the bank is considering an internal shakeup. they have had a tough time of it this year. industry on track right now, the worst performer since 2011. extending handout payments for citizens totaling almost $7 billion. >> this is the largest budget in history of saudi arabia, aiming to support economic growth in the kingdom and raise the efficiency of spending and achieving sustainability and financial stability as per the goals of vision 2030. talk us through. the budget raising questions about the government's commitment to trimming its wage bill. toef: the government wants make sure that it continues to shore up the mastech support it -- domestic support. it has been a difficult time. the numbers are nonetheless encouraging. you could even say a little overly optimistic. that's why -- that's why our chief economist in the middle east is saying the number stone out of. economic growth is set to expand from 2.3% of 2.6%. re

tory: takeda pharmaceutical hold a news conference in a final attempt to convince investors to abandonkeover of scheier. they say for my members and shareholders want to derail what would be the biggest ever international takeover by a japanese company. investors will be asked to approve the deal wednesday. china have agreed to tone down trade rhetoric, but it is only temporary with a natural deal still a long way off. how might this affect policy decisions at the fed? our editor kathleen hays is here to connect the dots. how concern has the fed been about this of trade war? kathleen: the federal reserve has been watching and commented, but the longer it lasts and the more shares get thrown back and forth, the more concerned they have been. when i asked myself this question i thought, let's go back through the minutes and see what things came up. there was a dozen references in 10 pages of minutes of the things like trade policy boosting uncertainty. in other words, the sense it is getting worse. trade tensions obviously weighing on global stock market , andment, in their minutes the s

takeda has received shareholder approval for its $62 billion acquisition.re holders will vote later today. jpmorgan ceo says fourth-quarter trading revenue is on track the roughly equivalent for the same time one year ago. banks budget for technology spending will continue to increase and the bank is continuing to improve its efficiency ratio. a new phone with a camera will take three-dimensional pictures. princeton, it will be announced this month. accuratelyogy can measure distances by bouncing light off services. >> thank you. is retreating after the biggest two-day gain is since june. minister isn'ty sure if the cartel will stabilize the oversupply to the market. joining us now from the, is our reporter. great work on the interview and great to see you. >> good morning. the countries can really put their cards on the table. these are really the two big leaders of the group. delegates have told us there are negotiations involving how much they should cut and how they should share the burden. these are things that have not been decided and this is really

the takeover would make takeda one of the world's top ten drugmakers.on wall street yesterday and asia overnight. analysts are also blaming continuing uncertainty over us president trump's trade pact with china for investors' nervousness. russ mould, investment director at aj bell markets. why are markets nervous? at the start of the weak markets had been concerned about president trump's tariff plans and about federal reserve interest rate policy, whether it is tightening to quickly and slowing the economy and in the uk they have been concerned about brexit and at the start of the week there were hopes donald trump was backing off and we may get some agreement on brexit. today, hopes look like they have been disappointed so we are sliding down the slopes of hope as it were. the pound is a good barometer of what the markets think over brexit. today it sat around 1.27. an 18—month low. 1296, it sat around 1.27. an 18—month low. 12%, 13% lower than before the eu referendum. what is unusual over the past two years as the pound has gone down the uk stock ma

--dy's downgraded the stock takeda pharmaceuticals is interesting. odys downgraded the stock.dding to the disappointment that we did not hear new reforms x thei weeklies, from wall street, and disappointing corporate news leading to a pretty bleak day. manus: it looks as if the bulls are getting crushed at the moment. thank you, juliette saly in singapore. mliv question of the day. this is what we have got for you. what assets will move the most on china reforms? you can debate that with the team, reach up to us and the mliv team. what will the economic stimulus be? that may be the question that moves markets rather than the speech today. first word news to be had. >> we are going to stick with those reforms. president xi jinping says china will stick to with policy agenda, despite pressure from the u.s. and others to about more. competition in its economic system. . in an 18 minute address at a ceremony to mark 40 years since the economy opening up, president xi jinping said 1978 was a turning point for the nation. he says his government will continue on effort against pollut

cut.redit rating was tokyoers in london and announcing the impact of shire .erging into takeda on thenergy index, lundin petroleum, all these companies are down. below $49 aalling barrel, brent below $59 a barrel. it seems shale is over cutting this cut opec made. anna: theresa may has set the week of january 14 for a parliamentary vote on her brexit deal. in the meantime, she will seek assurances over the irish tax stop. guy miller, chief market strategist at zurich investors is with us in london. let's talk about the u.k. economy, you can assets. we had a dire warning from the retail space. house prices have seen the steepest decline since 2012. do you assess the backdrop to be? in 2018, and in 2019. it is still a robust labor market. we have real wage growth creeping up. that should be a good thing, but you are finding consumers households more likely to save them to spend. all of that is around uncertainty around the brexit situation. -- what areo british people buying for safe haven here? globally, you get into the u.s. 10 year, the yen, maybe old-school people like to buy gold,

getaad: and we will response on to canada -- on takeda. yvonne: looking ahead to brexit.resa may is fighting for her political life. rishaad: they have three parliamentary defeat in as many hours. yvonne: also a bit about this legal advice on the divorce. basically holding the government in content for refusing to publish that [indiscernible] more to come. this is bloomberg. ♪ i am a family man. i am a techie dad. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome. unstopand it's strengthenedting place, the by xfi pods,gateway. which plug in to extend the wifi even farther, past anything that stands in its way. ...well almost anything. leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today. ♪ emily: this is bloomberg technology. tumbleup, tech stocks with mounting concerns about trade and global growth. we will talk about the con

it produce commitments in the bridging facility takeda enters into and may.ucturing plan. ford has yet to detail the extent of job cuts. they expect much of the company's plan to focus on europe. morgan stanley values that -$7 billion. david: quite a number. speaking of negative, dollar china. here is a one-day price move look to the inception of dollar china. the move we saw yesterday was quite something. we are also seeing more downside to this. strength coming through. where does that take us on the exchange rate? for the first time going back to make him a we are below our 100 day moving average on dollar offshore from 6.96. we are at 6.86 right now. really did expect strength coming through here in the currency. how are equity markets shaping? up or down as we go into the lunch break. volumes are quite light. 2.8% pop yesterday. almost nothing today in that market. we will see how things play out. here is your currency story. ♪ ♪ i am a family man. i am a techie dad. i believe the best technology should feel effortless. like magic. at comcast, it's my jo

the takeover would make takeda one of the world's top ten drugmakers. huawei's phone mast antennas and other products deemed not to be at the "core" of the service. it follows security concerns. other things about global trade are dominating things. the false continue on the ftse 100 which has fallen around 1%. it follows some sharp falls in new york yesterday, the s&p 500, billions of dollars we re the s&p 500, billions of dollars were wiped out off share values. there are real concerns that despite this 90 day cruise that has been called between the us and china, the talks will not achieve very much if anything at all and the planned ta riffs anything at all and the planned tariffs rising from 10% to 25% could be imposed after all and that is concentrating minds. he has had some calming words for the german car manufacturers? this was a hastily arranged meeting between the representatives of bmw, daimler and volkswagen. there is real concern in europe as well that this threat of increasing tariffs on european goods, around 25%, could in fact come to f

takeda, saying they will make the balance sheet work here it ♪ >> it is 10:29 in hong kong.re the first word headlines. the arrest of the cfo of huawei continues with an investigation. the wall street journal says the dealings were flagged as suspicious, although hsbc is not under investigation. the trump administration said it was aware of the arrest before talks with china, but the president himself did not know. jerome powell has a bullish assessment of the economy. in a speech to a housing conference, he said the u.s. economy is doing well for all which are creation and gradually rising wages. they are expecting a healthy rise in payrolls despite data indicating a possible cooling. loyal under pressure as the opec plus meeting ended with no agreement on production curbs. the talks wrapped up in conclusively after russia showed is growing influence refusing to commit to the reduction wanted by saudi arabia of one million barrels a day. acceptance, and the saudi energy minister does not expect to reach a deal. do you have roughly of target? one million barrels a day. >> we

japanese pharmaceuticals make up takeda are poised to become the one of the biggest drug companies inthe world and rang reporting who singapore thank you so much graeme. maples is associated with many things but not a budding startup culture well think about think that an organization called in part out of five to learn to do helps young entrepreneurs to go into business for example by tapping into italians love because. ringing his bicycle bell and singing giuseppe she saw no pedals his car through the working class spanish quarter of naples forget queuing in coffee buzz the twenty five year old entrepreneur takes his coffee to his clients don't care if they can go with the flow set up shop wherever there's foot traffic curiosity clients their coffee and kick their new bones and then actually pitch. thing is that this idea has come from the spanish quarter. as is common in southern italy she's on no has no tail and cannot ask for money for his coffee people are free to give us they see fit that way he can't be arrested for not having a vendor's license and doesn't pay tax on his earn

to cater -- takeda pharmaceutical has secured a loan, wrapping up the refinancing of the loan to buyl help reduce commitments in the bridging facility that it and you're into and made. the pursuit of shire is valued at $62 billion. paul: unilever has agreed to indian consumer business for 3.8 billion dollars. it will boost its presence in the emerging markets that account for about point two thirds -- that account for two thirds. the two companies fell in london and amsterdam respectively. shery: this company is said to be missing -- offering an iphone that can connect to the next generation of high-speed services. in the past, apple has been proven correct in saying new networks and the first versions of rival devices would ring problems such as only sporadic coverage and hesitant performance. qatar has rocked the oil world by deciding to quit opec. has decided to focus more fully on gas. bloomberg asian energy editor aaron clark joins us now. is this a sign that the group's unit is crumbling? aaron: it's interesting. qatar said yesterday that they plan to leave opec. they cited tec

to be approved by shire shareholders which are expected to wave it through later today then making takedaone of the ten largest drug companies in the world now for more on this let's bring in our correspondent there she joins me from singapore andrea this is the biggest foreign acquisition by a japanese company ever as we've heard what the us tech a to see in shire well lots of things but not without a lot of dissidents from is a founding members who believe that the that your accusation is going to take them away drive them away from their japanese roots eyes a deal that took some nine months to find of you convince them convince the majority shareholders to settle now it's a lot to do with the economics of japan's pharmaceutical industry the working age population is declining is shrinking in japan as we all know and that means that this is the cause of it because if the pharmaceutical industry is supported by the social security system so with a shrinking population the government is really keen on driving down from prices not without some kind of diversification to pay the cost of for