david: valeant this morning made interim studio the powered schiller, the comes of the board. true arm star -- drew armstrong, you are our ex. -- expert. drew: the former member of the board, he was therefore essentially the building of the company. cfo for a number of years with mike pearson. he knows the company and helped turn it into what it is, for better or worse. a guy who has a lot of experience especially compared to other executives who have not been around as long. john: some people will wonder whether it is just temporary. drew: every time we talked to the big investors, the guys who own a ton of company and are the influential voices,

drew: howard schiller was with valeant for a long time an executive role. 2011-sometime last her. he has been around. he has helped michael pearson with the company strategy. they also refer to him kind of as the explainer in chief of who is and the guy always good at giving investors comfort with what a lot of people describe as a tremendous and latercomplexity serious complication with the drugmaker. it is good news for the company and investors have been responding to it as such. shares were way down and trading late last night when they said they were going to appoint some sort of interim ceo. sent them backr up and they recovered a little bit earlier this morning. he is kind of an old hand. he's been around and has been on the board and knows the company. it has been a comfort to investor so far. scarlet: what does this mean for michael pearson? this is a good or bad sign about his possibility of returning to the company? drew: the first priority for pearson and a company is getting hel healthy. he is in the hospital with severe pneumonia. it can take

valeant down 30%, that was primarily in the fourth quarter. canadian pacific down 30%, he is still fighting for that norfolk southern deal, herbal life his short up 63%. so based on these three names alone it was a really rough year. you know, he actually lost more in terms of redemptions after his wow year, his 40% up year. he has talked in his last investor letter about the redemption request they had q4 of 2016, they weren't bad at all. you have to assume people have faith in him or they are looking at their high water mark and want to stick it out for a while. you know, he has been a remarkable stock picker all in, but he has had some grand failures that we all know about. >> when the valeant thing was unfolding in the recent months you you a say lot of other hedge fund managers saying this is a levin for everybody, never become so huge in one position where everybody is staked on it your whole year. do you think that is creating any rethinking by ackman and his folks about their process? >> you know, i don't know if they are rethinking va

nicole: hillary clinton taking on valeant pharmaceuticals. presidential candidate criticizing the valeant for dramatically increasing the price of a migraine drug it makes. >> companies that do this, i'm going after them for predatory pricing. i'm going to go after them for taking advantage of a consumer and the patient in this country. that is absolutely unacceptable. lauren: nicole: shares of valeant fell 9%. it traded slightly higher after hours. lauren: amazon investors not happy with the largest quarterly profit in amazon's 20-year history. amazon reported profit that more than doubled to $482 million over the holiday. it was third straight quarter of profits but the profits did not reach investors expectations. it cost ceo jeff bezos $6 billion in premarket trading today. this is how amazon is trading, down another 11%. you're looking at the bid-ask right there. nicole: a day after we saw market tanking. this is huge. we see stocks moving. the yen dropping. shanghai composite index up 3%. hang seng up 2 1/2%. the kospi gains one quarter

shares of valeant fell 3% to 98.50.nvestors got the first chance to react to a weak report on gambling revenue in macau that was out on friday which showed a decline of 34%, making 2015 the second year in a row that revenue declined. and that hurt shares of wynn resorts, las vegas sands, and mgm resorts. >>> american express was one of the worst-performing stocks in the dow last year, and it got off to a shaky start today in 2016. shares of amex fell almost 3% after fidelity ended its relationship with the firm. mary thompson has more now on the latest piece of business lost by american express. >> reporter: after a tough 2015 american express stumbles out of the new year's gates. fidelity investments ending a 12-year relationship with amex and bank of america in favor of a co-branded card from visa and u.s. bancorp. >> this is part of a long list of losses for them. >> reporter: the loss of the fidelity business wasn't unexpected and not a big hit to the payment giant's top or bottom line. amex says the fidelity cards

and probably knows a few things about the business valeant has been doing. exactly.o me, they have got a problem with their company. they need to get through this. they need to figure out what went wrong or did not go wrong and get thattors behind them. steve: totally. the market does like clarity and wants to know what is going on and they have to get this behind them. no question about that. john: for me, if you are waking up on wall street and arrived at work, you are not talking about valiant. -- valeant. s&p futures -34 points. i'm not thinking about valeant right now. tradewe had a negative allen so 43.8 9 billion. this is a little tighter than expected. we got the adp headlines 15 minutes ago. at 250 7000 jobs according to adp. nowet the trade balance out . we will get some factory orders about 10:00,later, and durable goods orders and that kind of thing. we were down more than 300 points in dow jones contracts. a tiny improvement, but still down more than one point i percent on all major averages as far as teachers are concerns. -- concerned. this is an inter

what do we need with valeant. don. >> cramer, aloha. >> how you doing man. >> a great year, 54 to 94. today got slammed 87 i know the aerospace and flight systems. where do we stand with defense systems. >> this is a great call. i'm of two minds of this. a real theme for the show. there is no doubt in my mind that orb at the atk is doing better than any company that i deal with. the defense sector and number one sector in the stock market. second, it doesn't matter. all stocks are going down right now but it won't always be like that and we'll be talking positive about oa. sure a lot of these declines at least for now. and then wait for that oversold bounce because of the negativity and because of the oscillator that shows how oversold we are. "mad money" tonight. u.s. stock is partially dictated by the weakness in china. so how will it impact you at home? i'll give you the whole skinny. plus here's an interesting one. match group. we haven't talked about it. it's up 60% since ipo in 2013 but you know what, maybe

he was the previous people have called in the explainer in chief for valeant in the past.e is not considered a supermedia friendly or smooth. ofs not always been the face a company that people said we need some it we can turn to when a time of crisis to be out there. howard schiller did not do a lot of that. last night when we saw the news there would be someone as an interim, the stock dropped. it was down 7% or 8% at one point. now we are seeing a recovery. people respond to this. bill ackman was out there praising him this morning. it's generally good news for them. betty: it makes you wonder why they did not have a plan in place sooner. it's good news for the shareholders and for the company, but does it indicate that maybe things are not much better with michael pearson? drew: the company says he is still hospitalized with severe pneumonia. that is what you would expect. severe pneumonia knocks you out of your chair. it's a real disease and puts people at the hospital. it was young, healthy people in the hospital and can do so for weeks. he is 56. he might not be the

quite sharp declines for valeant. yum brands chairman david novak will retire in may.ompany is in the process of spinning off it's china business and let's have a quick look at verizon which is reportedly launching an auction to sell it's data center assets. reuters says the company is looking to get more than $2.5 billion for that. this is a crazy stock story and with a ceo out on leave for pneumonia that they would replace. it's unclear whether this is going to be a permanent shift. >> exactly and people quite unsure why it's happening. >> he was so much part of the company and turning it around. >> more corporate stories for you, novartis is working on a new inhaler device. it would let people with chronic obstructive pulmonary disease record data. planning to launch their models in 2016 and he is confident they'll reach an agreement with regulators on the diesel issues. listen. >> the diesel issue damaged us here and we can't dispute that. our dealership is fighting hard against it and really doing a fantastic job. also i think they're doing a fantastic job. i thin

mentioned valeant, mike pearson still quite sick. you have that new interim ceo, shiller.-- you can see it there. well below 100 again. >> did you see, when you look at that high yield index, how much is valued? >> yeah. >> sprint and valeant dominant that hyg, along with al tyson. >> altese. >> that is a story in and of itself, with patrick draghi. >> high yield, people are focused on financings taking place for leverage transaction. dell is the largest. you have the solera deal, veritas coming back to the market. and this morning micro semiput a press release out. they're buying p pmc-sierra, they're raising 450 million bucks at a blended interest rate of 5.4%. not too bad. >> are you serious? that's all? >> that's all. that's a small number in terms of the overall raise, perhaps a sign of life in what is a critical component of the credit markets and broadly speaking important, that is if some of these companies are unable to successfully raise in the high yield market, it will have a much broader effect than on their prospects. >> did you see pinnacle foods was upgrade

. >>> valeant announces it has a new interim ceo effective immediately. >>> and some new numbers out for chipotle and news on a subpoena. is this a tipping point for the company? first up, global markets back in selloff mode. north korea claiming it tested that first hydrogen bomb, if confirmed it would be the first nuclear test since 2013, violating continuing u.n. sanctions. the peopling bank of china allowing the yuan to weaken as data for december showed the services sector expanded at the sloeft pa slowest pace in 17 months. all of this sending oil down. after china and saudi arabia earlier in the week, the hits keep on kcoming. >> you have to look at south korea, which is more a theoretical blast zone. did well last night. we can ascribe the inability of being able to accurately present thermonuclear war as a factor in our markets. we have never done that. we have two instances of nuclear in the last few years. we know -- we know that fukushima caused the market to decline precipitously. you have a 3% and change. we know that august 24th in 1986, from chernobyl, we had a 4% dec

>> and valeant, what is the valeant situation and how long is he interim ceo here for. >> interesting. >> coming up, activist shareholders and board members all taking aim at yahoo. what is marissa mayer's next move. bob peck lays out the next companies in line to buy the company. that is next. you're watching "fast money" on cnbc, first in business worldwide. checking out the listing on zillow i sent you? yeah, i like it. this place has a great backyard. i can't believe we're finally doing this. all of this... stacey, benjamin... this is daniel. you're not just looking for a house. you're looking for a place for your life to happen. zillow. ♪ light piano today i saw a giant. it had no arms, but it welcomed me. (crow cawing) it had no heart, but it was alive. (train wheels on tracks) it had no mouth, but it spoke to me. it said, "rocky mountaineer: all aboard amazing". >>> welcome back to "fast money." star board sending a letter to ceo marissa mayer calling for management and business strategy changing. there is a settlement for a yahoo takeover. bob peck has a buy rating and a $45 p

in corporate news, valeant appoints a interim ceo chief. company said the group of executives would take over until he returned. >>> volkswagen going electrical. phil lebeau spoke with the chairman of volkswagen way again, joining us now with some of the comments. phil? >> joe, this is part of volkswagen's plan to rehabilitate its immaej and reposition the company's image in the mind of consumers as for one focused on pushing sale through diesel models to push sales through electric vehicles. we'll talk about that and they are concept at this point, talk about that in a bit, but first, here's where things stands in terms of volkswagen's legal woes, and there are many of them. the doj filed a civil suit on behalf of the environmental protection agency, and there are also several criminal investigati investigation, the state attorney generals looking into what happened with the rigged diesel emissions, and there's no fix approved for fixes about a half million diesel models with emissions rigged. against that backdrop, you have dealers sittin

still ahead on "bloomberg markets," more than a month after going on medical leave, valeant michael pearsono investors again. what he is not talking about is when he may we take the helm. company isrent looking to surpass -- the race is on. ♪ global volatility has been a major thing this year impacting all asset classes forcing investors to look for safe havens. seems to behat strong as commercial real estate with prices in major cities sore , like here in new york. manhattan developers announce that they are holding off on property to condominiums. how should investors interpret what is going on in the real estate world? thank you so much for joining us. we keep hearing people like you say this is going to be a banner year again. when you look at how the market are trading and where property values are going, and some projects that might be delayed, who do we believe here? forood morning, thanks having me. you have to look at the fundamentals. commercial real estate has become a choice for investors because of fundamentals that have improved. occupancies that have recovered across the boar

where will valeant and your industry be in five years?, in five years, i believe we will have much more integration, and a different partner of the industry. the money factor, we continue to different.ly of course the deductible must be independent because they have to be free to prescribe what they believe is the right thing for the patient. i believe that the cost of all these organizations in the u.s., and even out of town, is exploding. --will have to tom: will it mean higher prices for the customer? >> it should be the country, it should be lower prices for the payer at the end of the day. much, greatly so appreciated. wba? >> wba. tom: walgreen boots alliance. coming up, we begin our discussion on economics. posner.us, aadam we look at the economics and international relations of davos . stay with us. ♪ francine: welcome back, this is bloomberg "surveillance." date to of the world economic forum. i'm francine lacqua, in tom keene has the weather. tom: it is never quite right. although this is the least icy davos. i have seen no one

i wanted to ask you your opinion on valeant. >> i have so many problems why do i have to go down the food chain? that's why you have to think about it. this is not even in the league of the major farmers that i like. maybe in the 70 with the cash flow but we're talking about major fabulous american pharmaceutical companies going down. just crashing. don. >> cramer, aloha. >> how you doing man. >> a great year, 54 to 94. today got slammed 87 i know the aerospace and flight systems. where do we stand with defense systems. >> this is a great call. i'm of two minds of this. a real theme for the show. there is no doubt in my mind that orb at the atk is doing better than any company that i deal with. the defense sector and number one sector in the stock market. second, it doesn't matter. all stocks are going down right now but it won't always be like that and we'll be talking positive about oa. sure a lot of these declines don't make sense but you have to respect the bear. at least for now. and then wait for that oversold bounce because of the negativity and because of the oscillator that

we have a couple of names to the upside here, and i would say biotech, certainly gilead, valeant, eli liller is a bigger broader health care name and talk pharmaceuticals here, pfizer is pretty much flat. daal. that shares of mcdonald's, real green here, they touched a new lifetime high of $121.90 a share. shortly after today's open, they pulled back now, people are selling and trying to gain profits here, up about 1.25%. new record close, mcd must finish above $120.07, that's the number to watch. we're not there just yet. let's get on wall street. the snow definitely could not stop wall street today. markets are open. we've got a megamerger between tyco and johnson controls. volume currently running about 4% below average on the big board. but do we have at least the beginnings of a clear answer as to whether stocks are close to a bottom? get right to the floor show, traders at the new york stock exchange and cme group. so today we've got oil dropping about 6%, it wasn't the iranians but the iraqis to blame. blurting out today, we have record high production, yeah, that means lower o

gilead, valeant, eli lilly, pfizer all in the green, hopefully you own some of these stocks. take a look at auto stocks right now. it's a mixed bag but i have to tell you u.s. auto sales on track to report a record-breaking 2015, thank you, low gasoline prices across this country. mixed bag, ford gm down a little bit, nissan pushing its way into the green. yes, we are fighting our way back to the closing bell. all three indices back and forth over the unchanged line. what do you make of all of this? let's get to the floor show. experts lined up at the cme group and the nymex and ashley webster on the floor of the new york stock exchange. no conviction, ashley, at all today? >> none at all. this time exactly 24 hours ago, i looked up and the dow was up 410. the dow, the markets been able to fight off lower oil, confusion over the oil patch. the tensions going on in the middle east would naturally have you think the oil should be spiking, but because of that tremendous oversupply, despite what's going on between saudi arabia and iran, the oil market itself is coming down, the d

a bloomberg source says valeant pharmaceuticals will name a new ceo, while michael pearson is hospitalizeder contracting severe pneumonia. it is to clarify the new management structure, ahead of the biggest conference next week. manus: volkswagens head of brand has apologized to americans for the scandal. he was speaking at the consumer electronics show in las vegas. >> the current issue with a diesel engines is certainly nothing to be proud of. we disappointed our customers and the american people. -- i am trulyuly sorry, and for which i apologize. manus: hans nichols is standing by in berlin. we noted this yesterday. he is doing the apology thing. where are we? is this that trying to recover confidence? need to dostill something for the 400,000 vehicles they do not have a regulatory fix for. my colleague in las vegas, where i am not, caught up with him. here is what he had to say about getting an epa fix on what volkswagens working on now. >> we are really focusing now on solving the problem, solving the issue and getting the approval of the epa for our solution. keeping the customers ha

he said failing to sell shares of valeant shares was a costly mistake.n't looking much better this year. ackman's portfolio already is down about 14%. no word yet on whether he's willing to absorb 20% of the losses out of his own pocket like when you get 20, when you make profits do, they ever -- >> there's a high watermark. >> right. >> going to take him a long time to get back there. >> share 20% of the losses. no word yet on whether that -- not likely? >> probably won't share in the losses. but will take him a very long time to get back. >> shut that one down and start another one. >> you could do that. >> i don't think that's likely. >> hedge funds, heads of some well-known firms expressing bearish market views on energy, china and stocks. those comments coming at a closed investment conference. reuters reporting paul tudor jones is negative. when we return dow component boeing down 5% in the year. aircraft maker said to release earnings. the results are up after the break. we'll bring them to you in a couple of minutes. later ceo of taylor made will

scarlet: the ceo of valeant pharmaceuticals says he does not know when he will return to work.earson was hospitalized last month with pneumonia and has been on medical leave. his absence comes at a top time when the company is under scrutiny for pricing as well as a relationship with another drug company. that is the bloomberg business flash. go over to the markets where ramy inocencio has a look at some of the movers. netflix had some strength earlier in the day. the management is meeting with oppenheimer funds here in new york, and they are having a luncheon. it will be interesting to see what comes out of that. taking a look at the share price, it is going sideways, about .7%. out,hing i want to point january 20, oppenheimer did reiterate and outperform on the netflix share price, raising it to $140 from $130. interesting to see what comes out of that luncheon. i want to compare netflix versus the nasdaq 100. netflix shares are underperforming the nasdaq 100 in the past week or so. down by 2.5%, the nasdaq 100 up by 3%. if you look you today as well, something of a similar s

holdings has lost 11% this year after a loss of 20% last year on the back of a decline in drugmaker valeantall of their publicly does closed long holdings have fallen this month. leading the decline, platform specialty products. that is the bloomberg business flash. alix: let's head over to the markets desk where julie hyman has a check on the company movers. julie: lending tree is one of the stocks am watching. they are bouncing back after a huge plunge yesterday. company saying it expects to itsase 2016 guidance on call on february 26. yesterday, the company presented did not givece and updated guidance. that is one of the things that contributed to the decline on the stock. shares bouncing back by 12%. today.watching yelp the stock was cut from a cell to a neutral. it is trading above that still. the analyst says it's partly due to a quarter over quarter drop in traffic. there has been increasing competition for the local ratings on the internet. affirming aators decision threatening the developing of solar rooftops in the state. the management is planning to sell some power plants to fu

. >> you are seeing valeant rising on this news. a little certainty beginning forward.ike pearson was hospitalized on christmas with severe pneumonia. and last week they said they were appointing the office of the ceo plus three people on the board to oversee that. there was some criticism. now they're saying he's still hospitalized. they are pointing immediately an interim ceo and their former cfo. he left the ceo post pretty recently. people still want mike pearson in the ceo role and nothing would make them as happy as seeing him back there. some folks think, though, investors are saying maybe he's not going to come back. not buzz of his health, necessarily, but maybe he just doesn't return to the ceo role. >> likely to continue. >> i guess given that there's scrutiny of accounting and the rest, you wonder if the industry wants him to be running on an independent length of time. this company was all about pearson, his strategy. >> wasn't he a big part of making the acquisitions, of bringing up the prices, shall we say. >> there's also a question if schiller would wan

. >> some of his bets, if you look at two of his bets, valeant, nothing to do with activism, he justock. or mondelese where nelson peltz is already there. the opportunities are so limited he had to pile on on top of nelson peltz. if the big guys like pershing can't find opportunities, i think it's a tough ask. >> that's what underpins your belief to short activists, just lack of opportunity? >> yeah. what's happened is there are no more fortune brands. no companies own titleist golf balls and jim bean liquor, there may be a few, but very few. the whole idea of returning capital, people have recognized that's not a panacea for anything. it can be an appropriate thing to do, but buyouts in and of themselves are not as favored as they were. >> finally 2016, we're not going to get to 5 trillion? >> i don't think so. i think it's -- personally i think it's going to be a good year for m&a, but very hard to repeat what we had last year. >> rob, thank you. rob kindler, global head of m&a. sara? >> when we come back, weakness in luxury spending weighing on tume. that stock down 30% in the las

interestingly he says valeant had actually considered selling some this summer but were locked up because in possession of knowing the company was considering a large deal of some kind. doesn't give us indication of that. some of the more interesting parts of the letter, after he goes through the portfolio and the disaster that befelled it last year is a build potential bubble taking on the index fund force lack of corporate governance and unwillingness to engage and wondering out loud as to whether if we continue to see these flows into all of these passively managed funds, etfs, whether there will be anything left in the market itself and whether it will lead to an overvalue that reverses itself because it's simply the buying power of the index funds that pushes up prices too far, and there's nothing left and they start to decline and see outflows. an interesting read. >> to me, i always felt that would be nirvana for a stock picker. you can -- the index has 500 stocks, if you can figure out which of the 500 are undervalued, you would buy them. it would be an index fund with a brain, wh

just thrown in with the valeant situation.rtunities out there. i don't know what the market's going to do, but i see a lot of great companies very much on sale. >> yeah. you have the benefit of going in now. i don't know if you owned these for the last year or two, might not be quite as appealing, but these all look like they've come down -- if they do rebound, there's a lot of upside, i guess. we need a decent economy at some point. we need a lot of help. >> need a commodity bounce for those to work, don't you? >> somewhat. somewhat. you know, we do price in the fact oil could be lower for longer. >> yeah. sq >> you nknow, that's what the market's telling you already, oil lower for longer, but in doesn't not take into account you don't necessarily need a rebound in oil for these things to work and for these earnings to grow. you buy growth stocks at less than ten times earnings in three when you buy growth stocks that have these growth rates and are not paying market multiples, that's a great risk-reward >> okay. yeah. maybe.