tv Boom Bust RT June 26, 2019 8:30am-9:00am EDT
you gotta back shoulder they should go and dive right in. drugmaker abby announced it will the choir botox maker allegheny for about $63000000000.00 gaining control of the biggest name in medical as said x. in order to reduce its reliance on key arthritis treatment humira as the has been under pressure to diversified portfolio as humira the world's best selling drug posted its 1st ever drop in worldwide sales this year as a face competition from cheaper biosimilars in europe under the terms of the deal at the well pay point $86.00 of its shares and $12030.30 in cash for each share of allergen marking a 45 percent premium on allergen share price this deal comes as the latest in a string of acquisitions for the pharmaceutical industry as they begin consolidating earlier this year bristol myers purchased sell a gene for $74000000000.00 and eli lilly bought locks on college e. for 8000000000 dollars this is not a typical big pharma for the last 3 decades 2 radically different couple spending
activities and a versus r. and d. have jostled with each other for preeminence brands saunders the current c.e.o. of allergan and legendary deal maker grew out again when he was named c.e.o. of forest labs 5 months later he sold for us to act tevez for $25000000000.00 activists then acquired al again for over $70000000000.00 and took on its name with more on this transformative acquisition you welcome back adam mesh c.e.o. of the adam mesh trading group so adam this is certainly a big day for allergen in 2016 allegan had attempted to sell themselves to pfizer in a $160000000000.00 merger but that deal ultimately fell through so the question is will this deal close we know that bristol myers and sullivan have been delayed due to antitrust concerns so will add the or allegan need to divest any of its assets to push this through. i think the devil may have to divest us as they've proactively announced that they're going to do so for example we will. it's
a question of how much and we know from the bristol myers celgene deal that they had the best in fact on monday bristol myers announced that their divesting want to sell jeans top products to avoid those antitrust issues and the government's taking a more conservative approach so it's definitely going to be an issue and it's smart they brought that up because that's something that we're going to look out for. and on this and position will return the company in the us after heading completed its tax inversion deal to ireland in 2015 something we've seen apple do to great effect as well saving the company hundreds of millions in taxes and you really this is a good move for l. again. so inversions were a big deal a couple of years ago than the government took measures to make it a little more difficult to do but it's definitely go move 1st because of the 45 percent. up increase they received today on the buyout is but also because they'll actually save more money through add vs tax structure than their own their tax
obligations will go down because abby has a much better rate than allegan had even with their inversions so it was definitely a good move for allegheny and and investors are happy and as this acquisition i mean fair for shareholders many works previously expecting allegan to split in order to be shareholder value and activists investors were pressuring the company to separate out its chairman versus the seal roles as currently both are actually held by brant saunders. the raymond james analyst said that it's like christmas in june for alegate in so many think it's a good deal but i think his investors it depends on where you bought it the 52 week high on allegan this year was 197 it was trading at like 114116 before the deal went through maybe a little higher and it's up almost 40 points on the news so if you bought it lower than you're happy if you paid in the $19.00 these you're not happy but overall they missed out on the bigger deal the $63000000000.00 deal is probably the
best they could have got right now and i'm right now this deal looks like essentially temporary band-aid or perhaps a blood infusion for as it loses their exclusive rights to humira humira accounting for more than half of the company's revenues can our games pipeline make up for that loss. blood in jews and that's good for the bottom there yes you know it will it can do is it will add new products and rather than. rather than saving it it is more of a ban it does buy them more time. which is important as they need to come out with more products on their own so yes this isn't a killer this is a band-aid but it's a time bind and it. and now the entire. up today even with the market down on the news as we speculate who the next m.n.a. targets are so there are always a lot of rumors surrounding targets. and clovis so who are you betting on and who
are you watching for to be the next murders. when bristol myers and celgene did their deal the 1st thing i did was trade for a short term trade that stayed up for over a week and. my number 2 choice because they remain in the news they have some key pads expiring in the 2020s which will give them motivation to be acquired but my number one choice is clovis. they're the last stand alone in their area and many have said they're the number one take out target of 2019 and they already have activists that are gunning to get that company sold so so clovis will be my number one and would be my number 2 but for sure whenever there's a merger like this of this is the fallout and the increased price of rising tide so to speak lifts all ships the whole biotech sector should stay somewhere good for a couple weeks so who do you think will be a good partner for clovis and gilliatt who is going to be big enough and as well
who will actually have those needs to fill fill their niche. so for clovis it's probably going to be one of the bigger players that didn't require any to be better because the last one so one of the biggest ones left the didn't get it done. or who that's going to be. but there's not that many people that could come in and do a deal of that size either so so the choices will be limited you know there were a lot of rumors surrounding market potentially excel will definitely have to keep an eye on that adam mesh the c.e.o. of adam mesh training kit thank you so much for your time. thank you so much for having me. global delivery service fed ex is suing the united states commerce department after the company's attempts to comply with new regulations targeting chinese tech manufacturer wall way put the company in the middle of the transit transpacific
trade fight fed ex piled suit on a u.s. district court to enjoin commerce from enforcing export administration regulations against fed ex and other so-called common carriers that access the regulations deny the common carriers their rights under the 5th amendment of the constitution by holding companies responsible for package contents that exploiters argued that the regulations place an impossible burden on the carriers of knowing the contents of all shipments last month fed ex was embarrassed after 2 while we related packages sent to addresses in china were diverted to the united states leading chinese authorities to open an investigation. while huawei has gone the lion's share of attention in the wake of the us sanctions as part of the raging trade war sends an cross-town rivals c.t.e. has been quietly stepping up its business following a near wipe out from american actions the chinese telecom giant has announced that it has secured around $25.00 commercial 5 g. contracts as a race for high tech speed internet heats up this stands as
a pretty remarkable feat for a z.t. as they hit some dire straits in the 1st half of 2018 following those sanctions just look at that drop at the start of last year the company has since managed to recover but is still reeling quite a bit this news comes as a huge relief to c.t.e. who at this point has managed to top ericsson of sweden in terms of 5 g. contracts however that's telecom giant is still behind nokia fenlon and the fellow chinese company huawei 5 g. is slated to be an economic boom in the near future with the del oro group forecasting more than $100000000000.00 worth of expenditure by 2020. and the upcoming g 20 summit in japan is already making waves with investors anxious to see what will come from some head to head meetings of the gathering stocks are wobbly at best this week archie's alex mahela pitches in water where he's keeping an eye on things welcome alex thank you alex the current mix market is being influenced by a number of unpredictable factors a lot of balls in the air so to speak perhaps none greater than the highly
anticipated talks between president trump and china's president xi china's president xi who will plan to meet at the g 20 summit what can you tell us about that. you know we have that other thing going on also the tension between iran and the u.s. and that obviously is affecting markets as well and that type of instability always affects markets we have gun play we have cyber attacks we have all those wonderful things and nobody really knows which direction that's going but as you just mentioned it seems to be overshadowed by trouble meeting now the markets have been reacting just to what president trump has been saying in recent days and he said he had a good phone call with president g.m. and the markets go up of course it has put a lot of optimism out there so especially if you follow up by the fact that high level negotiators from china and the u.s. have spoken nothing really heard from that other than the fact that hey they're moving forward and that's a very important thing to do especially at this point in time so once we move from there what we have to look at is just this uncertainty that investors still see
because we don't know what's going to happen when they meet we've been very optimistic in the past the last time the 2 met a lot of people by you know this is going to get done and then more tariffs popped up so now the question could there be more tariffs well this is when we get it's a really scary territory don't you just look at the states right now china's imports of u.s. soybeans has dropped over 70 percent year after year just think of this the u.s. exports in the past 60 percent of soy exports were going to china so this is not only affecting china and china is talking about also cutting more agricultural buys from the states so this really is affecting that level within us our culture of the farmer and the farmer as we know it to many of us is the backbone of our society so this is a terrible terrible thing with you look at if this continues so optimism like i said maybe something could come out of this another area that the u.s. is getting data also is pork pork sales of the china have gone down and this is an
opportune time for the u.s. to be selling pork to china the african swine fever that's out there has basically disseminated. stocks of pigs in china and asia but now china has turned to canada to brazil to the e.u. to south asia all these other markets to sell them pork meanwhile the u.s. is missing out on a huge opportunity here you can look at this this is kind of give us a good idea of what's happening here in the past month at the shanghai composite index this is china we're looking at a one percent drop today but this tells us give us a picture of what's happening around the world the sort of instability this wall belief area you know everything is kind of going up and down markets aren't stable but besides that though there's one other thing that people aren't factoring into play here there's more to talk about your which is small caps and transportation stocks this is sending chills down some people spines because many see this as a crisis era signal so when you see these stocks go down the bells start ringing in
a lot of people's heads and this is what we need to be worried about what could fix it all though would be a deal between china and the u.s. and things would get better not only for those 2 countries but for the global economy. now japan the g 20 host country seems to be doing a little dance when it comes to its policy with climate change commitment some are saying that this is because japan is trying to suck up to the u.s. is there any truth to that oh yeah there's a lot of truth to that let's let's face facts japan has been playing this game sucking up to the u.s. for a while you know just their leader i mean come on you know that everything's kind of changed from what we knew of japan decade or so ago to now the countries playing this very different game almost hawkish japan was one of the most peaceful countries when you put it in your mind for the past since world war 2 and now we have this kind of japan now what we're talking about here is climate change the paris accord japan has changed its language where it's coming to the g. 20 with what it's talking about climate change its tone down everything so that it
could appease the u.s. which has basically been talking about leaving the accord since 2015 and why is what's japan i should say doing this. because of trade cars and agriculture 2 things that could get hit hard by the u.s. and japan is a very scared that i might be sent down the same direction as china if it bites heads with president trump so that's why they're playing this game and that's why they're sucking up interesting takes is always our chief correspondent alex mahela bitch thank you thank you. time now to hang here because when we return as we see global markets and. one precious metal ring game is china. pacific capital will be joining us to dig into gold teeth and tear things up and as we get a break here the numbers that close.
shape our lives is the answer the been engaged and it was betrayal. once and many find themselves worlds apart we choose to look for common ground. backs geysers financial survival. housing bubble all. oh you mean there's a downside to artificially low mortgage rates don't get carried away that's cause a report. from. good food descriptions. even for the owners. how to choose pet food
industry is telling us what to feed our pets more based on what they want to sell us necessarily good for the pet turns out may not be the best people believe we have animals that have you know diabetes in arthritis they have auto immune disorders allergies we are actually creating these problems it's a huge epidemic of problems i believe can be linked to very simple problem of diet and some dog owners so heartbreaking stories about their pets streets to larger corporations are not very interested in proving or disproving the value of their food because they're already making a $1000000000.00 on it and there's no reason to do that research. turning to southern africa zimbabwe is attempting to revive its national currency
10 years after staggering hyperinflation made the zimbabwean dollar nearly worthless some bubbling officials were forced to effectively adopt the u.s. dollar and other foreign currencies as legal tender in 2009 now the government has banned the use of the u.s. dollar the british pound the south african rand and botswana's pula. on monday the zimbabwean finance minister announced the bands which are intended to compel zimbabweans to use the real time gross settlement dollars and formally known as the zoller as a medium of exchange the finance minister also decreed this all is official value at parity with the zimbabwean dollar zimbabwe zoeller was seen as a means to easy full transition back to the zimbabwean dollar but its value has steadily declined since it was introduced in february. we have big names and they kept us facing 2019 1st we have j.p. morgan who will be starting customer trials of its j.p. am quine by the end of 2019 j.p.
morgan reports an increase in interest from global customers in the potential benefits of the bank's stable point and its capabilities in speeding up interferon remittances as well as to be able to settle securities and bond transactions these trials for select customers are being conducted on the assumption regulatory permission will ultimately be granted secondly we have wal-mart the largest retail company in america is also diving straight into the world of watch as its chinese subsidiary announced a partnership with the chain the chain will be providing the block chain infrastructure to track all the goods and wal-mart china supply chain the v. chain platform will initially be used for the food category tracking traceable fresh meat vegetables seafood and private labels in order to ensure food safety standards customers can acquire detailed information of the food products and where they were sourced processed inspected packaged etc just from scanning the product code the chain coin take are immediately shot up over 40 percent on the news extending its year to date gains by over 150 percent. and one key measurement the
cryptocurrency can effectively track is uncertainty typically as volatility and risk rise so does the price of cryptocurrency however there is another asset that is also bullish in times of instability and that would be gold this familiar dynamic has been reflected this week as approach precious. metal has seen a major spike following instability in the persian gulf and the continued turbulence between the world's 2 largest economies china and the united states after all of that gold prices are now writing a 6 year high but what could be the outlook for met the metal going forward here to help us break it all down and get into gold is peter schiff c.e.o. of europe persisted capital peter welcome back. thanks for welcoming me back peter arms and bitcoin prices have risen recently causing many to iranian slee conclude that the 2 are rising for the same reason but stock and bond prices are also rising
to corn and stocks are rising as speculative assets while gold and bonds are rising as safe havens peter can you explain on that important clarification. sure i don't think that anybody who is by coin thinks they're doing something safe or conservative or they're buying big congress they think the price is going to go to the moon so in other words they're speculating now some of the speculation is that one day in the future because it will somehow evolve into a safe haven asset like gold but it's clearly not there yet and so some people might are betting that that will be the case in the future but i think as pie in the sky i don't think that's ever going to happen but that's not going to stop people from placing their bets on the other hand i think people are finally buying gold because they're waking up to reality something they should have known a long time ago and that's that the fed is never going to be able to normalize interest rates it's never going to be able to shrink its balance sheet in fact the fed is now cutting interest rates again we are beginning another cycle down we're
going to 0 the fed is going to go back to quantitative easing they basically said as much today powell had a q. and a where he talked about how the fed was ready to use q.e. again as part of its tools for the next recession or crisis and so gold is now adjusting we've left a world where people thought the fed was going to keep tightening and and shrinking its balance sheet to the new world of reality we're going to get lower interest rates more money printing more inflation and so investors are now looking ahead against that and they're buying gold. i don't think i'm right on the point where the pickling isn't really necessarily a safe haven assets but it is and differently correlated asset is a separate asset class altogether and they cover that investors can actually. beta from the client so in that respect it would actually make decline some time to heal gold. well it's nothing like gold so it's not visual gold it's just digital assets if you want to call a mouse as they may not be correlated to anything it's hard to say yet but i don't
think they have any value so i don't think they're correlated to reality i think people are gambling with crypto currency is just the way you would gamble in the casino but that doesn't mean i would advise portfolio managers to take an allocation to buying lottery tickets or you know or going to las vegas but look right now the reason that bitcoin is rising is because few people are selling and a lot of people are buying so all of the gains are on paper maybe a few people are getting out but a lot of people are holding on because they think this is just the beginning and again we're going to the moon and people don't want to go want to sell but if we can't make a new high which i think is likely i don't think we're going to take out the 20000 high the question is how much more progress will we make right now or you know 11000 and change everybody thinks it's a sure thing that we're going through 20000 but if we don't if we turn back down and bitcoin starts to break down again remember we were at 3000 or show so at the
beginning of the year but if this rally fails then we're going to come crashing down and we're going to take out those old lows this could simply be a repeat of the big manic runup that we had in 2017 up to 2018 except you know at a lower level we won't peak out as high as we did then and you know that people keep talking about the fact that the institutions are moving in now that somehow it's different that even though you're not getting a lot of individuals interested in crypto which clearly is not the case if you look at. the google search numbers for people searching for bitcoin it's not like it was back then people are speculating that institutions are moving in and i highly doubt that i don't think institutions are that foolish in general there's also speculation that central banks are buying there is no way i mean central bankers may be done but they're certainly not that dumb they are not going to include bitcoin or any other crypto currency as part of their reserves they are buying gold they will continue to buy gold and that is the smart thing to do but there's
a lot of risk in these cryptocurrency is there krypto risk digital risk and once the bottom drops out it's a long way down and a lot of those paper profits are going to vanish people think they're making a lot of money right now and bitcoin you haven't made anything unless you sell they don't pay dividends they don't pay rance they don't pay interest you only make up you only can make money if you find somebody else to buy the bitcoin that you self . as it does anything bad because while not a lot of the central banks are actually buying what they claim to have been a lot of government institutions and government entity and i saw a lot of institutional and that's that such as just the j.p. morgan coin that we pleased to mention who are heavily invested in both the watch chain and the coin the assets out as well. but i don't think they're heavily invested in big quine but we do have institutions that are looking to allow trading in bitcoins because they want the trading revenue to the extent that people are gambling you might as well get a vague but also you have institutions like look at facebook at libra j.p.
morgan is looking at its own type a coin these coins would compete with bitcoin and i think the bitcoin community is trying to put a positive spin on this negative development and so it's helped create the buzz and the photo right now is that oh this validates a big point no it doesn't it repudiates bitcoin what these companies are trying to do is create a crypto currency that actually can work that actually delivers on the false promise of bitcoin so this is not a positive development what we're seeing happening with competitive coins that might actually have some type of stability and might actually work as a unit of account in the medium of payment media exchange vick one will not do that and it will never be a store of value because it has no value that can be stored hot takes from peter schiff c.e.o. of euro pacific capital thanks so much for your time. sure thing. and
finally ordering groceries mia what's out is not just between you and your significant other anymore wal-mart to mexico all the mexican arm of the retail and grocery giant is now offering grocery delivery from a super on the store's mia the facebook messaging app users in mexico can now simply send a text message with their order to what's that number operated by wal-mart and a representative from super amo will respond and confirm the details and the order is on its way the fee for delivery is roughly $255.00 orders delivered within 90 minutes and $2.00 for later delivery super rama runs more than 90 of wal-mart stores nearly 202500 stores in mexico the retailers largest market outside of the united states the grocery chain already takes orders via their app website and corner shop a 3rd party app that also offers additional vendors. that's it by this time you can catch boom bust on directv channel 321 dish network or streaming 247 on the t.v.
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