valeant agreeing to buy salix. valeant's chairman and ceo michael pearson joins us now.hange. appreciate it. >> delighted. >> your shareholders are responding enthusiastically, i think. it's not an overstatement to say, with the stock up as much as 15% this morning to the deal. i spoke to some of your investors who told me not that long ago when talking to you about the prospect of a salix deal, given the inventory issues, you sort of said i would stay away from that company. what changed? >> people are always asking are you interested in this company or that company? you know we never come out publicly and say we're interested in a company until we actually announce a deal. so i think that what has -- the gi space is quite attractive. these guys are clearly the market leaders. the actual business is performing very well. if you look at the script trends. we've got full visibility into the inventory. >> you feel like you fully understand it. we've characterized it as an inventory issue. but it could easily be there's a little bit of accounting fraud here. that could be a

and valeant will buy salix. will do whatever he'll do. >> do charity work like his brother. david fi pooi yachtpyott will spend the rest of his life doing great work. >> rick santelli. >> good morning, david. if you look at just rates benchmarked against last night and yesterday's close, as you see on 24-hour ten, down four basis points. but what's interesting is, let's look on the week. 5s closed at 154 last week. they're at 59. tens closed at 205, now at 2.07. 30s closed at 2.65 now 2.69. so we are down from yesterday, not only rates up on the week they're up in a steepening sense, meaning long rates are up more than short rates. something to pay close attention to. flattening curve a trade for a long time. year-to-date of 10s, the stopper in the marketplace was the resistance of where rates were at the end of last year. let's switch gears to bunds. bunds moved lower off of their 40 basis points showing this trend down at .35. the winner the chart popular today, five-year out of the eurozone, it's now very clo

second valeant is a great acquire acquirement. you can see their growth from 2014. . saw it's consumer business soar 13% and prescription business soar the top brands are getting them more than other companies. we know one of the reasons that allergen fought off the hostile take over bid, is that allergen has a lot of research and development and valeant spends low numbers in research relatively. but it is not hurting them. they developed an ultra brand of contact lenss, and that is a gigantic improvement to take that much share. now, with this acquisition of symptom medicines, the company can expects to save $500 million in r and d cut backs. they think they can close the deal in six months. it's all cash and the money saved will hit this err 82's bottom line. the street was looking for it to earn $10 a share, and i think it can earn $12. sales are doing well after an inventory glitch that hurt them back in thof. that caused a big discount to the stock and that is one of the reasons they got it cheaply. the ceo of michael pearson feels confident that they will be scr

valeant will address to its stable of offerings. they had a whole in this area and that is why they went after this company? >> right. salix is the leader in this gastro intestinal space. >> this is kind of a surprise. they bid so hard for allergen and they didn't get it. most people thought things would slow down here in the acquisition front. >> valeant came out and said they will step back and focus on what we already do. the kind of came out of the blue with this. this has been in play for a long time. the question now remains whether or not they go after something else or stick with what they have. >> what do you think change their mind? other than the fact that this was a for sale and if it's a nice hole in their repertoire. when change their mind at valeant? >> they are notoriously inquisitive. they went with an experiment where they teamed up with an investor. even though they said we are happy with what we have and we don't need to do a deal, this is a company of scale with a very good portfolio of products. they thought th

valeant is known as a serial acquirer.ses the advantageous tax structure to buy companies and cut already profits to boost revenue. amazing, it goes from best in -- breast implants and botox to gastro-i can't even say it. just stuff for your intestines. the obama imitation is going to pick a fight with the wall street over retirement savings. the white house will throw its weight behind a new labor department proposal that would include new protections against biased financial advice and require brokers draft and a customer's best interest, which could limit their earnings of financial advisors. >> it is unfortunate that the white house would engage in this type of political discussion when they are picking a fight with 58 million american households that deal with the registered representatives all across the united dates -- united states to get the education they need to save for retirement. stephanie: the new rules on financial advisors could be modified. you can call it singapore's robin hood budget. the island state t

we mentioned valeant.omberg "surveillance" is discussing the business plan valeant uses. scott from new york university and josh from bloomberg economics. i don't know where to begin. the oscars or the fed? olivia: i want to go to the oscars. tom: a big deal tomorrow, chair yellen will do two days of testimony. what does she not want to do on the hill? >> she is going there with an agenda. she needs to stand up for fed independence. we could be in for two long days because this is a republican-controlled congress. the other thing she is going to try and do is talk about data dependence. those who watch this are going to hear that phrase in our sleep. tom: for guidance is dead? those>> the minutes from january suggest they want to get rid of it. olivia: the first time the other one seat was unanimous since july. is consensusbuilding? >> you actually find a fractious bed of y>>how you red inflation data. tom: scott with us. academy award watcher. i saw a fractious academy. it is not like they are going this

that will add a gastrointestinal drug to valeant's stable.completely eliminating any premium in the purchase price. luxury handbags fell, meaning a misss for prada. they plan to open fewer new stores in 2015 and have more bags priced in the $1100-$1400 range. google forced android makers to use its app, limiting competition. the judge gave them three weeks to amend their claims and refile their case. google faces similar antitrust laws in europe, where lawmakers have called for the company to be broken up. first half income coming in better than expected. they also instituted a dividend when they did not have one before. the ceo of the company is paul o'malley. he joins us now. thank you for joining us. you come out with better-than-expected results. your guidance is also better than before. your shares take a pummeling. why? do what markets will do. we have delivered an excellent first half result. the board has decided to declare a dividend for the interim. and we are seeing growth across our business as welker did i think the market is rea

valeant, 200.ever looked back since they announced the deal. >> allergen's a good company. i'm worried about -- this is where i'm worried but i can't poke holes. tell me where i'm wrong that actavis is bad. i don't see it. >> believe me you're going to fine few people who will. >> we'll look back and say, one of these companies, i'm not going to mepgntion, one will, i called foul on tesla the other day. i have to get a tesla so i don't look for a bomb in the trunk in the back. there's no trunk. >> model-s, best model overall in consumer reports for the second consecutive year. >> model-s per share fabulous. press release per share amazing. miles per gallon amazing per share. earnings per share not as good. >> pep >>perage farm. >> sent me salad dressing other day. i was complaining if you went to campbell's soup, they're almost trying to hide natural organic. they're say you can find it -- i like their stuff on the shelf. very good salad dressing. the problem with campbell's it's in the pantry and

so between the day that the valeant offer was announced, april 22 and when we -- or pretty much to datepart of that isn't just a takeover premium at the end, but we constantly ramped up our performance. not on the earnings per share but also sales. the sales from beginning to end increased about $300 million above the expectations we'd forecast at the beginning of the year. so real strong performance. now, some of that of course is good. you know you have the sort of damocles heading your way. you have to really tone things up. but i think we have to be really careful in corporate america that things do not become too short-term. you're always back to this it's not a sprint it's a marathon. how do you create value. not just for a quarter or year but over a long period of time. >> what's something that maybe would have been more difficult to do? something you can do at this point because you don't have people knocking on your door. >> yeah well. you know i think my attitude in general is companies that are not well performing do need a shakeup. that was the case when i was hired. because

that's what valeant should do but i don't want to lump valeant in the same sentence as actavis.king for rerating of johnson & johnson. people are saying alex gorsky wants to make a move with 14 billion in cash perhaps willing to sacrifice the aaa down to aa to make acquisition. a lot of people throwing cold water on that one the ft did a story, it's a done deal that was bad. i like the way j&j acts so to speak. >> interesting when j&j wants to get in i mean so many acquisitions that have been done including salix, already inverted themselves, meaning they conceivably can pencil out better numbers from an acquisition than can another buyer which means it's more competitive, harder for j and j or pfizer. they are enormous companies that have ability to pay whatever they want really. but it makes it more difficult. >> sure. to do those deals. >> at the same time j&j has good organic growth and they -- remember mcneil's almost fully back at drugstores, that's positive. >> yes. >> and i think that gorsky's saying i'm not going to tolerate divisions that are not doing well and it's ti

if they do i'm telling you that both stocks will go higher because it's extremely positive for valeant to buy a company with a high tax rate and have the tax rate slashed. they need to continue to roll up companies. that's the big story of next week if you ask me. one more panera and noodles, did you see that? missing the numbers. i think cracker barrel could put up strong rumts tuesday. this is the interstate highway restaurant chain. and the money consumers are saving while they drive courtesy of cheaper gas could find its way into cracker barrel's coffers. don't forget to order the apple pie and ice cream. wednesday is more retail. lbrands, die equity and applebee's. it wanted to come down. that's how you want it to come down so the trust can buy more. all three have terrific ceos, all expected to have numbers bump. listen especially to target's ceo hear about his vision for the company. after the close wednesday and the stock has been quietly climbing inch by inch. last year at this time sales force reported a terrific quarter. but stock initially went up and nosedived. it marked t

david faber reporting valeant is close to a deal to buy salix pharmaceuticals for more than $10 billionout $160 a share. salix's stock trading higher on the news. >>> fannie mae is going to pay a dividend of $1.9 billion to the u.s. treasury next month after another profitable quarter it will now have returned $228 billion in dividends to taxpayers in return for that $187 billion in bailout money it received some years ago. >>> in case you hadn't heard much of the u.s. is in a bitter cold snap. temperatures shattering records set decades ago in many places. central park in new york, for example, 2 degrees, new castle in western pennsylvania, minus 18 degrees. but it could be worse. you could live in cotton, minnesota, where it was 43 below yesterday without the windchill. that was the coldest place in the contiguous 48 states here in this country. he tried to say. saudi's new king trying to keep the masses happy and here's a way to do it. while europe is battling over austerity the king is dolling out by royal decree. that comes out to about $1100 for every living person in saudi arabia

valeant is likely to make an offer of more than $150 per share. >> english football giants manchesterunited looked to be heading for their first ever annual lost since its ipo in 2012. the loss is expected to be around 11 million pounds after the team failed to qualify for the uefa champions league. >> no comment. join the conversation on twitter. let us know what you think of the day -- of the show today. among the trending stories steve strange sadly dying from a heart attack in his 50's. sad day if you are a fan of the 1980's. >> that is a sad story. let's talk about what has been happening in ukraine. a source of many developments all this week at a cease-fire was the result of over 18 hours of negotiations in minsk. previous collapses have yet -- have left leaders skeptical. leaders have threatened further sanctions against russia should the cease-fire collapsed. let's bring in a senior russian analyst. thank you for joining us. what do you make of the deal from 24 hours on? >> not much. from the very beginning, the actual outlines of this deal, there was very little different fr

after valeant lost a take over fight for last year. apple announcing plan to build two data centers in europe for about $2 billion. they will power services including the itunes storage application store. imessage maps and siri for customers across europe. the company said the plans will be entirely powered by renewable energy and create hundreds of jobs. >>> honda announcing the ceo will step down in june. the move was not expected. the executive has said here ruffled some insiders by shaking up the company's traditional supply chain to trim costs and find new technologies. >> let's get a check on the markets this morning. we're looking a the nasdaq within striking distance of 5,000. nasdaq closing just about 45 points below that on friday. take a look now it looks like there are red arrows. these are modest declines. the s&p futures down by 5 points. the nasdaq off by five. if you want to check out what is happening in europe, all of that news we got over the weekend of a potential of a greek deal did help things up. the kak up by a

valley and -- valeant is known for taking advantage of the tax rate.ended himself as a member of parliament after the daily telegraph alleged he offered access to diplomats and exchange for thousands of pounds. another foreign secretary were filmed with hidden cameras talking about their offering. a full investigation could take months. markets in athens are closed today for a bank holiday. it is the first day of eastern orthodox christian lent. >> you can join in the conversation on twitter. don't forget the tv part. >> it does matter. i decided to just use my name. >> someone has taken my name. >> a deal was struck on friday with some uncertainties surrounding the future of greece. are the markets concerned? we will discuss the impact, coming up next. >> greece's new government is waiting for eurozone bosses to approve reforms while keeping the electorate against austerity. here is the mood in athens. >> i don't believe they are going to scrap the debt and they are going to say, we are going to do it our way. we never do it our way. from 97 until now

valeant, up 15%. down a bit today. >> go buy it. stop it.a lot of heat saying good things -- >> your interview so great. i was e-mailing david, i'm not getting that call, or on the call, but i was e-mailing, i'm listing to the interview. i keep thinking there's holes in the story it's a rollup it's a rollup, and i listened to the interview. gosh, darn this guy is real. >> i know. we have been through areas where there are other ceos that were embraced what for rollups, swv said he just knows how to do it differently. in fact that was not the case. you wonder i mean how is it that you can take old products from a line i asked this question, and have them put up the kind of numbers they are? >> there are people who say when you -- look an unbelievable sales team unbelievable sales team, and full disclose, debt weller's on the sales team -- when i look at -- i look at what they've done with the tired contact lenses what i see is just amazing share take. it's like they're better salespeople. we've seen that from a couple of companies. buy old dr

i'm looking at valeant. pushing 170 bucks, jim.ug stocks how is regender on doing? a very good story how their drug is superior and more money and meg interviewed him. i thought that stock should be up more than it is right now. the market has a bit of a gloom over it. >> let me get to discovery and then bob pisani. discovery didn't have a great quarter. of course, huge multiple compression in that name. but they didn't give us guidance in the press release. it appears to come out on the conference call. we anticipated reporting free cash flow growth low digitsing growth in cash operating business, offset by higher cash taxes due to prior year timing benefits. they also are talking about foreign exchange impact remember discovery, huge international presence one of its great strengths. reducing constant currency guided revenue by 350 million, 6%. adjusted ebitda by 150 million. also 6% versus 2014 results. they do say they have 1.5 billion of available capital for full year 2015 to fund both share repurchases and m&a investment, po

. >>> and valeant is to bide dendreon. reuters expecting to close by march.adjusted $1.12 per share for the fourth quarter. revenue also beating forecasts. the company saying it is pleased with its results but does expect a challenging and volatile global environment this year. >>> listen to this if you could, if i could speak, a record number of americans renounced their citizenship last year. that's according to new data from the treasury department. 314,000 americans gave up their men citizenship in 2014. that's up from the 229 announced the year bred before. among the drivers the new tax act that requires foreign banks to reveal american banks with more than $50,000. and that requires americans overseas to file tax returns. the law designed to catch tax cheats. >>> the republican party gearing up for 2016. the list of potential candidates continues to grow by the week. our next guest's name is being thrown in the ring. he's calling for across-the-board tax cuts and an end to the estate tax. joining us from former virginia governor jim gilmore. chairman of