julie: i want to start with valeant. pearson had been hospitalized with a case of severe pneumonia. on company is now commenting it saying he is not on medical leave of absence effective immediately. it the board of directors has created a new ceo that will callan, andrt, dr. an executive vice president. those three individuals will be serving in an interim capacity. michael pearson has been hospitalized with a severe case of pneumonia. there is this office of the ceo that has been created in the interim to take over for him. the board of directors of valeant created a committee to oversee and support the office of the ceo for berries members of the board. -- for the ceo of various members of the board. the company has come under a lot of scrutiny because of its pricing practices. stocks that individual just to get a check on the broader -- we are seeing a decline in u.s. futures. we got the saudi arabia and budget numbers. ionic increasing exports -- ran increasing exports. take a look at the bloomberg terminal. at the

move today, on the valeant.own on the news that the company's ceo mike pearson is taking a medical leave of absence. let's head to bloomberg radio where cory johnson and carol massar have more on this. it was not necessarily stress. it was a case of pneumonia that put mike pearson down for now. carol: welcome to "the bloomberg tv andge," on bloomberg bloomberg radio. carol massar with cory johnson. in the studio, our own drew a bloomberg news. the valley's ceo has a medical leave. what is going on? yeah, over the holiday he was admitted to the hospital in new jersey with severe pneumonia. this is not your regular, run of the mill pneumonia. this is a serious medical condition. he is hospitalized. our understanding is he was discharged for morris town medical center in new jersey. we do not know what his condition is at this time. they have appointed a three-member executive management team to's in for him -- to sit in for him or it also a board to oversee that executive management team. carol: that's pretty seri

all is not over for valeant here. still the subject of multiple federal investigations into the drug pricing practices. they have an investor day tomorrow in new york. they're expected to give a new forecast so it will be interesting to see how investors receive that. >> not to put it too strongly, but this is a company maybe in search of a new future. if it was roll-ups and now it's having holes poked into the cost of the drugs. >> they packaged it all so nicely. the core questions remain -- is the function of philidor which was frankly to push valeant products as hard as they could be going to be fulfilled by walgreens in the same way? i suspect not. >> megan, with some of -- the toenail fungus with mario lopez -- what is it -- >> jubilee ya. >> right. are these price cuts enough to spur demand? >> you know, it's interesting, the doctors just want it to be easy for their patients. that's what's so magical from the valeant's perspective about the specialty pharmacy model. it takes care of co-pays for the patients so

did want to change subjects to valeant.ny holding an investor-day meeting, this one day after it introduced a new policy, if you will, to try to cut out the pharmacy benefit manager and even insurance companies to a certain extent, having almost a direct sale crew at walgreens for a number of drugs initially, and more over time in this new deal. the stock was up dramatically yesterday, crossing that $100 threshold. responding positively today to what is new earnings guidance from the company, total revenue previously seen between 11 billion and 11.2 billion, that's for full year 2015, now 10.4 and 10.5 billion. they lowered adjusting earnings per share. lowered cash flow from operations. and investors seem to have expected worse is basically what you can say here. for those interested, a worth while read in the journal about the accounting at valeant and the way they do construct their own metrics, if you will, to be judged by is worth reading. that stock rebounding again. a decent day for mr. ackman and pershing square whi

plus it was also linked metaphorically with valeant. i think valeant could be out of horizon can continue to go higher. >> hey, jim, how are you? >> i'm all right. how about you? >> pretty good. my question was in regards to amba. they reported earnings and beat on eps and revenues but issued conservative forward guidance. sales and commercial applications do you see any strong catalyst for the work in the next few quarters? >> i'm growing cautious in the semi-conductors. i liked the simple ones. i like intel for instance. i just think -- and i like lrcx where we had the ceo on recently. that stock is going, i believe, higher. the word of the day, crudeness. crudeness. the market could demstrate some wild reactions and that's why you need to be on your toes for tomorrow's fed announcement. oh, wall to wall coverage absolutely. maybe tune into the show too. i'll probably have so things to say about it. oil soared nearly 10% since yesterday's low. that action may be exciting but it's what it isn't doing to the economy that should have you

valeant will be run on an interim basis by a committee of three executives.he stock has lost half its value in the last six months as the company faces scrutiny over its drug pricing practices and short sellers took aim at its business. the stock sank again today. for "nightly business report" i'm meg tirrell. >>> shares of wearable device maker fitbit getting some pep in its step today. and that's where we begin tonight's market focus. the fitbit app was the most downloaded from apple's app store on christmas day, suggesting strong holiday sales for that company. shares of the company up over 3% to 29.86. freeport mcmoran's executive chairman james moffett stepping down after a brutal year for the company's stock. freeport is also facing pressure from carl icahn, who took a large stake in the company earlier this year. shares of the miner fell 9 1/2% today, down over 70% for the year to $6.85. intel completed its takeover of chipmaker altera today after announcing its $16.7 billion takeover bid back in june. shares of intel little moved by the announcement w

furious seven and the avengers. >>> wanted to talk about valeant. the stock is down over 4% on news from the company we got over the weekend, additional news this morning, announcing that the chairman and chief executive officer michael pearson is on medical leave of absence effective immediately. he apparently has a severe case of pneumonia, according to the company. in his absence the board of directors created an office of the chief executive officer that will include an executive vice president and general counsel, another chairman and a chief financial officer, all of whom will be getting together in the so-called office of the chief executive officer and operating in an interim basis while mr. pearson is on his medical leave. michael pearson is the architect behind the strategy at valeant that has over the last few years that has included aggressive acquisition and cuts in r & d spending. this do spend some money on research and development. it's a unique approach in some ways that's been rewarded until the last six months by the stock market.

. >> let's switch gears to valeant. the stock was down 10%. mike pearson, the ceo, taking a leave of absence because of severe case of pneumonia. the family not commenting on the condition. but what they've done in response to his leave is create these two weird offices in which six executives are basically taking -- i thought that was a -- the strangest announcement i've read in a long time. >> yeah. so three folks who are executives at valeant are composing this office of the chief executive officer on an interim basis running the company and the board is supporting that role. and there has been a lot of talk about a success plan for mike pearson at valeant given the turmoil they had this year and there is so much uncertainty in the stock right now. probably the fact there isn't a single person named adding to uncertainty. and you saw the stock go down 10% today. >> is the company going to create a succession plan. you would think now they would say it is time to create a succession plan. >> there was a analyst report out saying that the suc

and she is out just three months after valeant. the -- bought the company. faces questions over its pharmacy practices. that and more straight ahead. ♪ betty: good afternoon. welcome back to "bloomberg markets." i betty liu. it's time for the is no splash. talk facing an increasingly crowded u.s. fast food market is ramping up its locations overseas. s mexicands says it' chain will grow by 1000 locations abroad. to better help customers understand their options, they enter new countries with smaller menus. rocket testk says a firing is set for next saturday in florida. come three days earlier. spacex has been struck on earth since june when a broken strut doomed its falcon rocket. and general motors, 400 claims against faulty ignition switches. more than 4000 claims, and 90% of those than were deemed eligible for payment. changes at aig, the company herzog is cfo david among top managers leaving as -- peter can talk hancock shakes up upper management. shares are down almost 2%. joining us with his reaction, paul newsome. a badul, net-net, is this thing for a

and valeant stock has tanked this year. lawmakers are skeptical and now the ceo is on medical leave. ♪ david: welcome to bloomberg go. i'm david westin. brendan: and i'm not stephanie ruhle. david: we welcome brendan. brendan: matt winkler is also here. inventor of bloomberg news. and vonnie quinn is also here. good morning. a suicide bombing in pakistan has killed at least 18 people. more than 30 others were wounded. people had been lined up outside the building to get their national identity cards. no word on who is responsible. police in brussels arrested two people described as suspected terrorists as part of an effort to prevent terror attacks in belgium during new year's celebrations. the texas teenager in the so-called affluenza drunk driving case has been arrested in mexico with his mother. ethan couch had been missing for weeks. his lawyers argued that his wealthy parents coddled him into a sense of irresponsibility. he could end up in prison. we are seeing a rebound in futures today after declined yesterday on the

shares of valeant under pressure in pre-market trading.wo weeks ago and they have been under pressure beyond michael's health issues. >>> alibaba buying a stake in a chinese online food delivery service. >>> makes you wonder about, had pneumonia. makes you wonder about drug resistance, doesn't it? >> antibiotic? it takes a couple of days for it to work. >> you worry whether it works, whether there's resistant strains. >> he might have -- a lot of people with pneumonia don't know they have pneumonia. >> the very stirs statement said it was a swar case. >> elderly people more than people in early life. want to get rid of a christmas tree in san francisco feed to it a goat. residents can bring their trees to a landscaping company city grazing where a herd of 80 goats will take care of the disposal. they will eat anything. chew on your clothes. i love them. they are so docile and very peaceful. the company says the trees provide vitamins and minerals to the goats and help prevent intestinal warms. they are limited to two degrees a day. they sa

and he's seen much of profits eaten away by bets on drug maker valeant pharmaceuticals and specialtyducts that tumbled in the fourth quarter. ackman says he is sticking with valeant saying he doesn't believe the company's long-term earnings prospects have changed. they plunged 70% in august. but shares have recovered 16% on tuesday as ackman and other big investors bought more shares. uncertainty surrounding valeant could start to disappear when the company updates investors on its 2016 outlook today. >> thank you for that. mondelez ceo says she is frustrated with the market's fast nation with activist investors. she is successfully running the snack food maker without their help. they have been offering suggestions on everything from global strategy to the amount of and dealing with their concerns is consuming a quarter of her time. mondelez shares in germany up by almost 5%. it's her job to cater and speak to their investors. but still. >> never a nice thing i'm sure. moving on u.s. congressional leaders and the white house reached a deal on a massive tax and spending bill that wil

i'm very proud of the people that work at valeant. i'm very proud of the business model that we've created. and it is going to be very successful. if the board wants to fire me, they are welcome to fire me. but until they do, we're going to get through this thing. >> in answering a question about how confident he is and committed to staying at valeant. he was pissed at seeing the citron research report. he used that word. >> family show. >> i'm sticking around. this is a family show. i'm just reporting the facts here. but it was a very interesting meeting. and you are seeing the stock rally and move past philidor and filling it in with walgreens which is a trusted name. there are things overhanging. government investigations and their own investigation into what was going on at philidor and pearson wouldn't comment on that. but investors reacting positively. >> meg, thank you. meg tirrell. let's talk about this. and what is outstanding and from the wall street research i read today, still outstanding in the minds of investors is the r

. >> we'll talk some deals and valeant next.ncer: sleep train thanks all those who helped make a difference last year for thousands of local foster kids. thank you for helping foster kids. thank you for the school supplies. thank you for the new shoes. thank you, secret santa. and thank you for donating money. announcer: your generosity proves that while not everyone can be a foster parent, anyone can help a foster child. thank you. thank you. gracias por su ayuda. [baby coos] thank you. >>> you're watching "squawk on the street," live from the financial capital of the world. day one of a two-day fed meeting today. cpi hits 2 year on year. oil managing to climb almost back to 37, jim. we're in a market that oil -- i was doing work last night. alphabet, formerly known as google, ticked up $20 when oil went up 75 cents. no correlation to anything else. i did a correlation analysis on "mad money." it was amazing, that's what controlled things. when you're in that environment, anything goes. meaning that if oil is going to move a st

in valeant's case it's more the latter than the former. >> in valeant's case you remain short even thoughs are down significantly. >> we remain short. they are up quite a bit from the lows. we don't think the model works. the company has free cash flow, it's going to be down in the fourth quarter versus fourth quarter a year ago it looks like that that $5 a share assumes no amortization of the purchased drugs and they have $43 billion end vested in their a company, half of that is r amp d and if you write that off over ten years that's $5 or $6 a share. >> and drawing a beat from that to other companies. >> you have to do it company by company and drug by drug. they have all different and the compounds are different and the pricing mechanics and the payers. the one thing that i find shocking in this whole valeant story is just who were the payers who were dumb enough to pay these prices because it's not generally medicare reimbursement, it's not government, it's private payers, who is paying $8,000 for a toe fungus treatment. >> that sounds like the next possible chapter of the story. bef

valeant is also rising, with valiant shares pretty much soaring, up 18%. accelerating gains within the past half hour or so. this is after reaching a drug distribution agreement with walgreens. it looks i can investors are looking at the deal as more legitimate than an earlier deal. a new 20 year deal may lead to a $600 million cut in valeant's u.s. drug prices. hownt to take a look at this is performed against the s&p. up nasdaq biotech index is 8.76% year to date. the s&p is down by about .4%. key biotech indexes are on track to be the s&p for the sixth beer in a row. as i said, this year is not as big as in years past. because of some corrections in the second half of the year. and concerns over drug pricing and government regulation. the question into 2016 is whether that has been priced out of the markets, and whether companies can find a strategy to increase profits. david: ramy inocencio at the market desk. we continue to follow developments in los angeles. brendan greeley has more from the news desk. lawdan: los angeles enforcement and city leaders

we do have a news alert on valeant.eema mody has more. >>> pershing square announcing after the bell it is cutting its stake in valeant pharmaceuticals. the reason, year-end tax planning. the investor has been defending the embattled drug company for a while. from 9.9% to 8.5%. we did see shares slightly lower in after-hours trade by around 0.8%. >>> thank you so much. >>> should we believe the story any less? >> i believe that he is selling for tax laws. i think it's a story you still stay away from. there is uncertainty. it's not a name i want to own to next year. >> i would say, why wouldn't this guy have taken chips off the table around $120 which is where the stock got back to? i would think it's probably that. the stock sold off from that point without any news. >> i don't know. it doesn't pass the smell test. it's essentially friday night, new year's eve. tax law selling? it's probably in an offshore account which is that really taxable? i don't know. hedge funds have multiple different investors around the world

. >> valeant, what's going on? >> some sad news. hearing that pearson is out on a medical leave of absence. we asked the company just how long they expect him to be out. they aren't providing any more details. he was hospitalized with a case of severe pneumonia. a lot of folks are pretty worried. the stock is down today on that. mike pierson is linked to the strategy there. folks don't know what the succession plan is going to be. they worry if this is something very serious it spells trouble for valeant. >> sam eisley, a top rated fund manager. sam, thank you very much for your time. we understand that you do have a small position in valiant. what's your take on this news? >> i think we take it at face value. i think the man is ill. pneumonia is sort of a critical usually very short-term disorder, disease, and expect him to get pumped up with antibiotics and get out of there. but sometimes it can get more difficult. i have no idea of the specifics of his infection. but usually it's something that's treatable, you go back to work an

valeant pharmaceuticals taking a big hit. michael pearson has been hospitalized and has take an medical leave because of a severe case of pneumonia. his illness comes amid government scrutiny into drug pricing and pressure from investors on how the company plans to grow profits. we have more on this story in the next hour. >>> let's get to seema mody for a market flash. >> a bright spot on our radar. sign signet jewellers up 1.5%. the company was the focus of an article in barron's over the weekend suggesting shares are expected to rise and the recent sell-off and credit concerns are largely overblown. for the year, shares though down about 8%. brian? >> seema, thank you. turning now to the broader bond market. how are investors balancing their positions as we head into next year? thoughts now from jeff, manager of the five-star $3.8 billion thornburg limited income fund. joining us from beautiful santa fe, new mexico, this afternoon. thank you for joining us on "power lunch." i guess the delicate balance, the basis of your j

it is reducing its stake from 9.9 to 8.5% in valeant, shares down just about .6% after hours.over to you. >> tax losses for taxable investors, that's what he says in the filing. >> and there have been losses, significant losses. he is down -- his fund is down 20%. >> he sold high cost basis valeant shares which means he paid more for them. >> another one we've been following that fire' downtown dubai dress hotel in downtown dubai. sue herrera has the latest details. >> the latest we are hearing is that the fire which ungufld this 63-story hotel is now under control. earlier today is in a matter of minutes a massive blaze raced up the side of the address hotel in downtown dubai. billowing smoke can be seen for miles. an eyewitness telling nbc news she heard a loud explosion and that the air smelled like burning plastic. the fern know reportedly began along the outside of the building at the 20th floor but never spread inside. four fire squads responded to help contain that blaze. local officials con if i recall 14 people including one person who suffered a heart attack were hur

so for the viewer they might want to look, hey, certain names like valeant avoid.t is going on there. bottom line, look at teva pharmaceuticals or allergan being acquired by pfizer one may say those are opportunities that have been disproportionately technically impacted in the short term. liz: look, you have daniel lobe. he is about flat but then you have other names that are not looking good. einhorn is down, about, 20%. bill ackman as you mentioned it is trouble. but you're talking about guys who took chances on specific stocks and piled a whole lot of money in them. >> correct. the federal reserve meeting what is your advice on how the quarter comes to a close. >> we think structured credit. colatealizeed loan obligations. liz: those sound scary to those watching. >> if you believe the housing market is doing relatively well. commercial real estate market does relatively well unless we have recession. you believe most of the pain in high yield and credit is caused by oil sector, all of those options should perform well with good cash flow and some price appreci

and joining me is anthem ceo, in particular, i want to start with the news on valeant and the reaction leave and that's all we know, could really crush a stock in the pre-market. what do you make of it? >> i think it's very sad news, i'm here in dallas and we've been faced with sad, tragic news in garland and greater texas area suffering tragedy. anytime you have a leader, a ceo and a company that's done as well valeant, it's a concern, but i think that leadership with supercede is. cheryl: i want to move on other things we have been talking about with you. particularly the financial markets. you say there's an increased credit risk in the markets right now after the fed's decision to raise interest rates. what do you mean by that? >> yeah, so, what we're seeing is real a deterioration, credit risk and lack of liquidity. so we've seen over 800 billion dollars worth of u.s. corporate bonds and we've also seen lots of treasuries, hundreds of billions of dollars worth, in fact, from china, brazil, russia, different emerging markets that have been forced to sell treasuries to protect the c

breaking news on valeant.striking a deal with walgreens to distribute their drugs, specifically in dermatology and opt molkg. through the deal, there's a deal to walgreen's of 10%, saying they are going to distribute branded drugs, about 30 or more at generic prices through walgreens, answering questions what to do after ending its relationship with fill philodar. this saves annual for the health care system, and it's very interesting in terms of the branded drugs, discounts of 5-95% for drugs that have generic competitors. coming in here with a big deal, about 8,000 pharmacies saying it's a 20-year agreement. there's questions about the path forward, but this relationship with walgreen's, biggest drugstore chain in the u.s. potentially giving it, you know, sort of a bode of confidence here. questions about, you know -- >> that's the good news, but the business model totally shifts. >> that's the question. if they have to cut prices by so much, they have to strike discounting deals. can they make up the volume

what it all means for valeant pharmaceuticals. all cutbacks and shrinking bonuses -- we will tell you the best jobs to have on wall street next year. and the holiday retail report card. what it says about the way america shops. we are 90 minutes into the trading session. julie hyman is standing by. we continue the slide in stocks. julie: the commodity-driven slide. how many times have i said that this year? the losses are accelerating to some extent and it has a lot to do with what's going on with commodity prices as we see the 10 worst performers, all with the exception of one related to the commodity markets. consol energy, marathon oil, those things having to do with the energy complex are taking a hit today. freeport-mcmoran copper & gold is one of the worst performers this year. company iser of the stepping down as chairman. he has held a position at the company for two decades, so this freeporta switch as has struggled with the falling prices of gold and copper. out theant to point global commodity monitor. change,-day perce

we sat down with the valeant ceo earlier.like he's trying to move out of the penalty box. >> after they cut ties with the very controversial pharmacy coming out this deal with walgreens and it spans 18,000 pharmacies in the united states. they're going to be offering a 10% discount to walgreens and drugs and dermatology and ophthalmology. they were so worried about where growth is going to come from as they cut ties with filador. it also covered more than 30 branded medicines that they're going to offer at generic-like prices, discounts of 5% to 9 a%. those are for drugs that have generic competition. folks are wondering what they're going to do to replace filador and whether this is going to lead to the same amount of revenue. they're saying the discounts are going to lead to $600 million in annual health care savings. we did talk to the ceo on "squawk box" this morning. >> this is going to drive growth. right now if you look at our branded products, for example, that have generic competitors, we have small share. >> is this

valeant shares are up.usted lower than previously predicted and fourth quarter blow below it than expected. the 2016 is slightly over. they will host a meeting with investors later today. labors erik schatzker's thing numbers dancing around. all you have to do cash erik schatzker is -- erik schatzker's favorite thing, numbers dancing around. sam: make it up as you go along. stephanie: do you have a view on the drug pricing scandal? you have drug companies doing more research than anyone and they are under scrutiny because of pricing. sam: i only get involved in one clinical trial myself in a particular investment we made. it was horrible experience. stephanie: why? sam: there was no certainty. wake up every morning, another three weeks, three years, you do not know what happens and how do you plan or allocate capital? i think the r&d site is an enormous challenge and if you do not pay the companies, then they're going to eliminate rmb. valeant is an example of somebody saying, i will show you what we can do

the ceo of valeant pharmaceuticals is taking a medical leave.he team of executives will replace him while he is out. and cofounderrman of freeport-mcmoran is stepping down. james moffat helped form the company in 1969 and will ease the board of directors following that carl revelations icahn had taken a stake in the company. famous dave's of america has a new ceo. he joined back in june. the restaurants are located in seven u.s. states. addedr models are being takatalist of cars with airbags. at least nine deaths are blamed on explosions caused by the airbags. changes itsne policy on kids traveling alone. $150 up to agee 15. delta and american have a same fee covering a similar age range. that's your business flash update. still ahead, it was a happy holiday for retail. we will take a look at mastercard's numbers. brendan: welcome back to bloomberg markets. it was a very happy holiday for u.s. retailers according to data from mastercard advisors -- thanks to a late surge in shopping, sales rose 7.9%. we sat this morning and waited for these numb

valeant has hired a crisis management firm and an attorney. this according to reports the company is under increasing pressure over its drug pricing policy. shares up 1% at 94.14. >>> bridgestone's retail unit has hiked its offer price to purchase pep boys to more than $850 million. the move is an effort to match billionaire investor carl icahn's bid for the firm. shares fell a fraction today to 16.22. and royal dutch shell announcing its plans to cut 2,800 jobs after it completes its statakeo of its rival b.g. group in an effort to cut costs. shares fell more than 1% to 43.95. >>> today is december 14th. also one of the busiest shipping days of the year and the busiest bar none for the postal service. morgan brennan takes a look at how the shippers are faring. >> reporter: today is green monday, the third largest online shopping day of the year. before holiday shipping deadlines come to a close later this week. it's also the third peak day fedex forecasted for this season. and the u.s. postal service's expected busiest day for mailing cards a

i have some number, valeant increased the price of sodium nitroprusside. on next day of the the drug by 625%. isuprel, the drug they , the next day it went up by 820%. penicillin, a drug that was used read in my medical school, went up by 2949% in a day.cra vansandt: if i might interrupt you there, i gather that you're very concerned about this for your patients' sake. i'll ask you to talk sosoe about what your ceceer does in a mimite. jon, i'd like to get you in here as well. i wonder if you could tell us a little bit about what@ idpc does and your interest in drug pricing. jon rosmann: yeah, absolutely. the whole mission of our organization is quite simple. it's simply to connect low-income, uninsured or underinsured patients with access to free and low-cost medications. much of what we're talking about today is simply the issue that we're trying to address. we're a safety net provider. we work to try and provide access to affordable or free medications. we have essence" recycling medications, taking previously dispensed medications, having those medicat

betty: what are the expectations for valeant? what is the big move expected out of him?i think there are a couple of things. first, clean up the mess and reestablish distribution channels for their drugs. the next thing i think investors will be watching is ensure they can continue to grow on the next thathave without using controversial channel and that they can do it without relying heavily on price increases. are they going to do another deal? at the same time, they are carrying a ton of debt. what you have to watch right now, assuming pearson comes back, do they continue this path of pivoting from scandal to a lot of m&a to a company that can grow on its own merit and turn into a mature come a still growing business. thank you very much. certainly a lot of drama on this company. we are headed for the close of trade in just about 20 minutes time. here's a look at stocks near their 52 week high this final week of the year. ♪ betty: welcome back to bloomberg markets. currencies have had a tough year with exchange rates in turkey, south africa and brazil, all falling at

valeant pharmaceuticals and platform products. read this letter. it's quite a remarkable letter for a couple of reasons. he really does outline how terrible the performance has been and also shows they have under performed since 2012 now. the stock market across the board. so it's not just bad performance this year. this is now the underperformance of just about everything else. at least since 2012 and the other poes of it is since they do have so much capital from public investors none of the money is moving. and some of this public money vehicle that he has done. they have quick redemptions and how the whole thing can blow up is almost impossible. he compares himself to warren buffet and says he thinks there's more value in these companies than the markets give them credit for and more importantly even goes as far as to argue there's more value in valeant today than a year ago. >> did you see the story about valeants unconventional books and the accounting measures they have taken too. so the questions continue. ask him more about it. >> i guess

and i think you hate valeant. >> i have a lot of questions about their business model. put it that way. >> but even if you think the accounting was right i'm not sure that you respect the model unto itself. >> right. >> but the question that i have about interest rates and everything else, is that going to change what's going to happen here? do you think that actually people are going to invest in the research because the economics are somehow going to be different? >> i think we need to get back in measuring him on that. i think so. now they have been trying to raise the price increase and they have been impressive in my opinion. it's an unfolding story but valeant, look, mike pearson is one of the great deal makers of this era and now they have to get back to operating. he has 18 billion of debt. he has a low stock price. he can't just continue to buy buy buy. and that means that they are actually going to have to invent drugs. >> as a health care ceo would you be long or short that company at this point? >> i wouldn't be investing in that company, okay. >> because yo

just crossing the bloomberg terminal, pershing square, bill company is selling 5.5 million shares of valeanteuticals. we interviewed the editor and publisher of the doom, gloom, and boom report. joe weisenthal and i asked him where he thinks interest rates are headed. >> i don't think the u.s. will continue to increase interest rates. in fact, given the weakness in the global economy and the deceleration of growth in the u.s., i would imagine that by next year the fed will cut rates qe4.again and launch so i don't think rates will go up a lot. i would just like to mention, basically u.s. treasuries in 2015 did not perform particularly well, but they did not lose any money, because the bond market, the government bond market was relatively steady. so you had a total return that was actually satisfactory, particularly if you measured it in euro terms. joe: i want to look ahead at what investors should look for in 2016. where should investors place their money next year? day: i just read the other onerron'ss cover, and not strategist was negative about the stock market in 2016. i think the u.s.

valeant, a huge pharmaceutical company. deirdre: there were a lot of m&a deals which took investors by surprise. >> bill ackman down 16% through last week. they are huge numbers. deirdre: they're huge numbers indeed. they had a rougher holiday season. who are the managers who either didn't have money in the calls that a lot of people, did or just saw things from a completely different, more profitable perspective? >> i think a really interesting one is lee ainsley who runs 10 billion dollars of maverick capital. he was worried there would be a rush for the exits that everyone wants to sell the popular positions, he switched out and started shorting apple component makers, chinese stocks, china hits huge trouble and he's up 16%. deirdre: he made a contrarian call which is what they get paid to do, think differently than anybody else, find the opportunities where if they tau talk about them, people say you're crazy and make money. there are a couple of ones, radialio continues to churn out cash. >> the s&p is basically flat.

this is a company that's been lumped in with valeant in terms of that business model. it's up 56% this year. this brings to light all these questions about biotech. we talked with steve miller today. he had interesting things to say about drug pricing. >> we always supported high cost drugs. if you look at cystic fibrosis, we do that reimbursement. there is no other option for those patients. we shouldn't waste money anywhere in the health care system. our job is to drive out waste. >> we thought that was an interesting comment. they pay for the high cost drugs if they are not wasteful, in mayor minds. he was talking about vertex. they cause a huge consternation when they pitted two hepatitis c drugs. it will be interesting to watch. people expect this pricing debate will continue next year into the election. >> what is the temperature of investors at this point after we have seen this massive run? then you have large cap companies like gilead that don't have much in the pipeline coming up to replace those sales. >> absolutely. what people are telling me they are feeli

. >>> valeant jumping more than 15% today. that kicks off our top trade. ceo michael pearson spoke about the new deal and how it would replace its partnership. >> we entered it quickly because, two things. one is if they were true, it's a real, real problem. second, given the investor reaction, we just wanted to separate and move to a new solution. this morning we announced our new solution. >> we should note that shares are down about 50%. so dan, what did you think? >> that quote is amazing. it wasn't just investor reaction. investor reaction is what sent the stock down 70%. i read that or i saw that interview and i thought a lot of it sounded pretty disingenuous. but i'm not involved with the name and i wouldn't touch it with a ten-foot pole. >> well, i touched it with some controlled risk on the downside. i'm not sure how long my pole is, but i put myself at 100. people are looking for a path forward to this company in terms of their game plan and pharma and distribution. walgreens is a major credibility boost for a company that needed it. that was rea

valeant, no stranger to controversy. the activist investor. value act also a large shareholder as well. that's not been where the controversy has been. it's been related more to its strategy which has included cutting r & d at many of the companies it requires, using of course a very low tax rate to enable it to have particularly strong numbers when it does acquire companies that have higher tax rates. and also raising the prices of many of the drugs that it brings on board. at least that is some of the criticism. also extending to a unique relationship it did have for some time with a specialty pharmacy which it sold some of its products. all that said, it was only a couple of weeks ago that mr. pearson led a very long analyst meeting in which the company introduced the new model, if you will, in terms of selling drugs. direct distribution to patients through walgreens. a specific deal with walgreens at the time. all the products in walgreens were beyond consignment. walgreens would be paid a distribution for filling fee. this in an effort to

valeant hurting hedge fund managers. mark, when you looked at market, when you see opportunity, what looks good to you for the new year? >> we agree with hilary's view on dividend paying stocks. out of favor over the last couple of years as investors bought growth at any price. you see terrific valuations, perhaps a sleeper pick in the telecommunications sector. one is cheap, secondly is viewing within the pricing power. at&t trading at similar valuation with a 5.5% dividend yield. i think in a year which returns are muted out of the equity markets starting the year with 5.5% coupon will get you towards return no better than that on a year-over-year basis. deirdre: i want to ask you both, steve moore is an economist with the heritage foundation about oil, this is a big theme, especially in the last quarter of this year, really pulling down sentiment for the stock market. how much does that influence the price of oil, the low price decisions that you make? >> going forward, energy and the price of oil will start to break

another mover we are watching a valeant pharmaceuticals dropping on news that the ceo is out on medical leave of absence right now, meg tirrell has the story. >> we had him on squawk box joining us on a big announcement they had about how they are going to replace that lost specialty pharmacy revenue from shutting down their relationship with sit adore and replacing that with walgreens. it seemed like they were getting on a path of less uncertainty. this case that mike pearson has a severe case of pneumonia, he has been hospitalized. the company not saying how long he is expected to be out, not sharing a lot of details. his family asking for privacy. but folks just a little nervous. there has been a lot of uncertainty over valeant, recently under several government investigations, just getting over a lot of the things happening with the short sellers looking into the stock and really driving a lot of the value down there. so he will have an interim replacement made up of a committee of three executives and folks hope you will be back on the job very soon. >> you don't want to mess with

that's thanks to an almost 10% rise in shares of valeant on tuesday. drug maker is one of the largest holdings. >> meantime, citigroup is reportedly planning to keep the bonus pool for its bankers and traders unchanged from last year. they told senior managers of the decision but it could change depending on how the market performs this month. jp morgan also plans to keep it's bonus pool the same but other banks including goldman sacks announced plans to cut bonuses by up to 16%. it seems in this case unchanged is the new up for bonuses. >> i think you're right. you're absolutely right there. now when it comes to chase lending, jp morgan is jumping into the online lending business teaming one the specialist lender on deck capital. under a private program started back in january they'll offer loans to its roughly 4 million small business customers. the company promises almost real time approvals and same or next day funding. on deck shares jumping some 28% in after hours trade in germany this morning higher by 12%. >> now, gold posted one of its worst m

the pharmaceuticals that were doing great month after month after month, vrx is a perfect example, valeant, and all of a sudden they pull the plug on it. liz: great example. bet on the tides, don't play the waves sometimes in the choppy market, right, scott? >> i agree. there's another report that came out about six weeks ago where citisaid we have a 65-07% chance of going into a recession next year. we've seen the big black clouds on the horizon. you want to own stuff that's got a little return on it, bigger stuff that's going to give you yield, but at the same time, you have to be very nimble because it's going to be that kind of trade. liz: exactly. great information. that's exactly right. terrific information, we've got two major banks saying three and four odds of a recession or the next three years. you heard investing and market ideas from teddy weisberg and scott shellady. merry christmas to you both. >> to you too. liz: struggling health care, could change the way they do business. how will this impact the business going forward, though, and the shares in the company? we've got je

. >> well, in the case of valeant that's a good example and they didn't take the stake, did they?i don't know. but if they don't then that's a different case. >> so separate to china as well he's also arguing now that europe might be an opportunity to put some shorts on and he's arguing for one reason mainly and that's that we had cheap money and low rates for a long time and a lot of companies that shouldn't have been propped up and shouldn't have been surviving they have been because of that flow of money. look out for the smaller companies propped up by debt where it's unsustainable in the long-term. >> let's continue to talk about that easy money. it wasn't so easy yesterday was it? the additional monetary easing was unnecessary according to the ecb governing council member. he's saying new forecasts did not raise concerns. joining us now on the phone is one of the so-called wise man and thank you for joining us. do you think we're overplaying the rift? >> thanks for inviting me to talk. i don't think you're overplaying it. the jered macgerman representatd concerns and was aga

a spotlight has been on valeant. people have missed that he made an acquisitional score that had a drug that went from $1,000 to $33,000. going forward this year, there's going to be a lot of challenges in the drug pace. i think he is going to be one you watch as one that, again, is falling through the cracks. >> good to talk to you, as always. a happy new we're. >> i just want to say, mandy, happy new year to you. i know it's going to be a great year for you. love you. we'll see you. >> love you too. bye-bye. >>> coming up, a few hours left of the portfolio challenge. one lucky trader, no names, will take home this classy and stylish belt. looks like josh might be this year's winner. he will break down the strategy that got him to the top. >> i hope you made that belt in size huskey. >> xxxxl. >> yeah. >> bob pasani has details of the ipo. the good, bad, and youingly, and those that never even happened. bob -- >> it was a good year for a few and a bad year for a lot. let's just take a look at the winners right now.