That the u. S. Will walk away from the table. Use in switzerland with negotiations with irans foreign minister. There talks about iran building a nuclear weapon. Senator kerry reiterated criticisms of senators who sent the letter to iran last week. This letter was directly catalytic to interfere with these negotiations. It inserts itself directly to the leader of a another country, saying do not negotiate with these guys because we are going to change this. Betty the deadline for reaching a deal is at the end of this month. Vladimir putin makes his first public appearance in 11 days. He is alive. The russian president emerged today in a talk with st. Petersburg with his counterpart. His absence sparked speculation about his health. It was his longest disappearance from public view and more than two years. One new service quotes couldnt saying as it would be boring without gossip. The man accused of shooting Police Officers in ferguson missouri, says he was not targeting them. The 20yearold suspect says he was aiming at someone else during the dispute. The officers were rounded during a protest last week. And Prosecutor Says that police are not sure they believed the man story. If you blinked, you missed the oils rout. The price of oil dropped 10 this week. It is starting this week the exact same way. West texas intermediate traded a barrel before rebounding slightly. The nations Storage Capacity may be to blame. The dollar peaked against the euro last week. Will kentucky go all the way or will they break hearts . The unbeaten wildcats are favored in the upcoming ncaa basketball tournament. The other top seeds are due, wisconsin, and villanova. The last two teams that entered the tournament undefeated they all lost. Those are your top headlines this morning. Now to some breaking news right now. Valiant agrees to a deal. There joy now with the latest on this. The increased bill got this done. Guest it looks that way. They have been negotiating very hard all we can. It is up to 173 a share now. It looks like sailing has agreed to this. They entered the fray with a cashbox it. This is going to force them to explore whether or not that could be true. Valium. A stops out and saying theyre going to go hard after this. Betty is this the end of the game . Guest they could try to increase again. I suspect that this number will be quite hard to do that especially during the mine that is an all cash deal. Betty that a pretty lucrative good what happens next . Guest assuming that salix accepts this and they do not come with a counter bid, i seal i see this deal going through. It is all caps. It will close very quickly. Valiant is in the most place to get this done. Barring another approach, i think this is it. Betty barring then coming back and saying they are going to bid higher. You mentioned the gastrointestinal drug. What does valiant get out of salix . Guest it is really an area of the market that they are not in at the moment. They want salix is kind of a leader in this phase field by buying them, they get full exposure in the area. The of arty got a huge amount of synergy. They have already got a huge amount of synergy. Getting this deal done, they get salix and they come out well from it. Betty thank you so much. Breaking news about valeant merging with salix. Staying in pharmaceuticals, a new drug and a generous pseudocalls showing signs that they can reduce heart competitions by half. The drugs both cut cholesterol levels by more than 60 in studies published yesterday in the new england journal of medicine. This is big news because i majority of this country suffers from heart issues. Olivia sterns has been following this story and joins us now with more. How much of a game changer are these drugs . Olivia it is a big deal. And is a whole new class of drugs to treat Heart Disease which is the number one killer of americans. Another majority of americans are on a step in right now. Were talking about a new drug to replace that. Obviously, that could be the next couple hundred billion dollars. The judge were better. Theres less rights. Less risk. The study come out from the new england journal of science. These are from an aa studies and they were funded by the issue is whether or not they can recreate the enormous success that lipitor has had. A few reasons they might not there are a lot of portions. They are teaming up together on this drug. Theyre going to be the first to market, it looks like in july assuming they get the green light from the fda. Pfizer has a drug. It is unlikely that anybody has the lean time that limit tour lipitor have. Obviously, is going to make a lot of money. Betty how much . Olivia we just all the price forecast for it depends on what the indications are. The companies are concerned with the way that they would go and request for communications. Initially these drugs will only the to patients for whom the statins are actually working. The idea is that over time these trials will send the usage in the patient population. These trials are not definitive and theyre both working on multiyour trials that will come out over the next several years. Betty and results . These results were published in the new england journal of medicine. Are they the final word . Olivia they are not the final world but they will bolster the case for insurers to cover them. Theres going to be a lot of Competition Among the chug companies which is going to betty mean that they lose pricing power. Betty betty Olivia Sterns on some new drugs. Betty moving and shaking this hour. Uncle sam has run up against the legal limits on how much he can spend. This is also known as the debt limit. The ceiling on the debt goes back into effect today after a oneyear suspension. The current debt limit is about 18 trillion. Last week, treasury secretary hearst urged john boehner to raise the ceiling as quickly as possible and not let it become a political default again. Even if it does though, this treasury has a way to keep the government funded through october. Armageddon will not be until the 10th month of this year. Staying on washington budget matters, it will resume much of the weekend this month. The chairman of the house and Senate Budget panels plan to release their budget blueprints this week. The senate on wednesday. The senate under republican control for the first time in eight years. Joining us now is the man who understands the washington budget panel. David stockton. David is the former u. S. Congressman and best on author. Bestselling author. I like the new look. David it is a commemoration of when i first grew facial hair in 1955. The Balance Sheet of the fed was 30 billion. It is now 4. 5 trillion. It is up 150 times. The economy has been up 30 times. Youre in a world that did not exist then and that is pretty precarious now. Betty if only it werent so easy to just save your beer. Your beard. Mitch mcconnell said that i am not going to let the government shut down again in the face of another debt height. Do you believe him . David yeah. When push comes this shot of to shove, he clutches. He is not willing to face his political monster. They made a huge mistake last time when they went for two or three weeks and capitulated. It is clear to everyone that repulse in stew not have the will to do anything about the deficit. Republicans do not have the will to do anything about the deficit. I did not believe that after five years of recovery, the idea that if i hundred billion dollars deficit is progress. It is not progress, it is just getting in harms way. We have not abolish the business cycle. Sooner or later, there will be a recession. Sooner or later, we will you back you back in the chilean dollars. In the trillion dollars. I think we are in a careless place. The bottom is falling out of the economy. The kingseynsian followers are a cacophonous chorus trying to explain what is going on. Betty let me parse one part of your statement. Use that you said the the economy is falling apart. When you say that where do you see that . David china is sliding a slippery slope. Japan is recovering. Europe is in a constant turmoil. Commodity prices everywhere are collapsing. This is a sign that we have deflation worldwide. We are not going to escape it. There is a big story this morning about how the industry is getting nailed in the United States is a big issue. It is not just a little sector. In other words, theres so much over investment in mining and manufacturing worldwide due to financial repression that all the Central Banks. We now have massive capacity. China and the rest of the em is producing all they can to pay their debt. That is flooding the World Economy. It is going to hit us. Exports are going to cool. Imports are going to rise. The oil industry is the major source of job growth that we have had in the last five years. All the jobs that have been created since 2009 are in the five shale states. No new jobs outside of the five shale states. Look at what has happened to the rig count. In october, it is down 43 . This is not a minor thing. This is an overnight collapse that is going to ricochet in many directions. Betty let me just pile on the bad news. Theres a timeline of what is one to happen in washington. , april, doctors are going to see their medicare payments drastically cut. This is all part of the agreement made in congress. In may, the Highway Trust Fund is also going to be looking at running out of money. This is for most infrastructures of in the United States. In june, the bank will see you there if their charter will be renewed. In october, that means the government will run out of money. What do we do about that . David they ought to let it expire. For crying out loud i was trying to do that back in 1981. If ge and boeing cannot finance their own exports, then shame on them. For crying out loud, all the money goes to about four or five big companies. Everybody knows that. Betty that a solution number one. David we happen expiring on Highway Trust Funds every single month for the last couple of years. They will find some way to put a rider on a personal mission bill an appropriations bill. If they believe we need more highway investment, raise the gas taxes. If you want to spend more, raise the gas tax. If you do not, reduce the program. Is that simple. The debt ceiling they often face it down because we have able budget momentum that is out of control. Someone will blink and they will send it. It is not necessary because we do have the power to allocate expense. We are not going to ever to fail to face our interests or social security. Betty it is kind of like a fake threat. David it is a total fake threat. Betty david, hold on. Youll be staying with us for a little bit rate coming up, and big event for tesla on thursday. A deal that elon musk tweeted out yesterday. A press conference on 9 00 a. M. On thursday. Ending anxiety on a Software Update. That has a lot of people excited. Well be right back. Betty heres a look at our top stories this morning. In a famous cold case, robert durst is being held in new orleans. He has long been linked to his wifes disappearing and to kill. This was just before the finale of an hbo documentary. He was caught off camera saying he killed them all. People familiar with the proposed deal say that the risk of unraveling between the two sides on financial terms and leadership. The merger would be worth 40 billion. Another sign that ge wants to reduce its role in consumer finance. Ge has agreed to sell its Consumer Lending business in australia and new zealand to an investor group. The deal has an impressive five an enterprise value of 6 billion. The company is reducing its reliance on the capital unit. Once considered a big growth for general electric. Elon musk will make a general announcement on thursday. He will reveal a solution to a major drawback on electric cars. It is called range anxiety. That is the fear of running out of juice as you are driving. Elon musk says that the range anxiety issue will be addressed with a Software Update that will be deemed down to tesla owners. Very high tech. That is your headline. Vladimir putin has made his first public appearance in 11 days. That fueled intense speculation about his health. That was his longest disappearance from public view and more than two years. It comes just hours after reports on full combat ready this readiness and western russia. Ryan chilcote joins us now in our studio with more. Has been reporting on the kremlin for so long for us. You were saying that he looked rough . Ryan he was sweating a lot and he was very conscious of the fact that he was dealing with neighboring countries. Betty role some pictures of putin. Ryan he was very conscious of the fact that the press was looking at him. He made a joke about how it would be boring and there was not any ghost of if there was not any gossip or rumors. He said and made a point of saying to the president of courtesy and that we were meeting as we agreed. He felt a bit in battled, to be honest, for a guy who has an iron rule over russia. He felt like a bit on the defensive. Betty look at those pictures there. Ryan he works out like a madman. His 62. He is probably in better shape than i am. Betty we have all seen him without his shirt on. Ryan let us not go there. Betty theres speculation of a coup attempt. Ryan that is laughable. He is very much in charge. Basically, no one can watch launch a two against val vladimir putin. 162 against vladimir putin. These are the hawks. These of the old guys that are supporting a policy in ukraine. Many liberals against the grain would not have the power to do it. Betty what about the troops in western russia . Ryan people are worried about whether they are going to go back into the ukraine. That is one thing that the russian president clearly likes to do. Betty i know that you were in Eastern Ukraine just last week. Ryan chilcote here at bloomberg and a new tablet made by saul samsung with technology from ibm. Is this the beginning of a new partnership . Betty youre watching in the loop with betty liu live on Bloomberg Television and string alive online. This is a story that made us all smiled. 18 millio,716,000 miles that is how many miles he got for an 18 an ancient chinese ceramic. He used it to fly to his family in new york over the weekend. The spending do not end there. He just flew to hong kong. He paid 45 million for 15 century tibetan ceramic. He must be unlimited. It is 26 minutes past the hour on Bloomberg Television. Youre on the markets. We look like you are making a little bit of money if you are a bull on the markets. Scarlet fu is here with more. Scarlet crude oil is trading at a fresh sixyear low. It is falling to its lowest since march of 2009. Oils declining by more than 9 . The question is that is there more downside ahead or could this be finally overdone . Joining me now is bob, who is a chief strategist. Good morning to you. Is this a matter of supply and storage . Is that what is tracking Oil Prices Lower this weekend go . Bob it is coming to quite ahead faster than physical oil shops would. The amount of oil that is being stored when those higher prices are not coming to wii had a bit of a rebound a week or so ago and when you consider the strength of the dollar which really has a negative correlation between the dollar and crude it has not been on the tip of everybody turns. Of everybodys tongs. Oil actually rebounded quite a bit. I think when you take into supply considerations in the storage situation and the continued strength of the dollar. It is following a little bit today, but we think that strength will continue. There much more downside for oil. Scarlet quantify that for us. How would you be trading oil right now . Guest i would trade short. I think you cannot sell into the hole. Because at certain times, trades put you in a situation where the reward does not exceed the risk. There is plenty of reason that crude could rebound temporarily. I do not think it will be above 50. If i was with put this trade on, i would wait until the 49. Generally when we approach is even numbers, we see more pull back. I would sell crude around 4 9. 10. I think you will get down also 35. That would be the prudent thing. Crude is going to put its news lows and look for a recovery at that point. Scarlet 35 . When will that take place . Guest if it does not happen before may, you will see a rebound that will sustain and till the summer driving season. The Second Quarter is the weakest time and demand for crude oil. That will push the supply into a tighter situation in terms of the shortest. Shortage. Production will continue to grow. I do not think it will happen before may. The downside is that all production has not slowed yet. Scarlet what will be the catalyst for oil this week . Is this a knock on effect . Guest i think it is a dollar. I think the f1 see is going to start to telegraph this rate hike. I think the rate hike will come in july. I think of symbolic in normalizing the rates. It can push the dollar higher before may. They will take the patients language out. It is not going to be a cycle of rate hikes, but there will be this coming in july. That will be the catalyst. There is a warning out of the u. S. Embassy in saudi arabia. Brent will top and wti will rally you. Scarlet geopolitical concerns as well. Thank you so much. Bob viaiaccino. Betty thank you so much scarlet fu. Heres a look at our other top stories this morning. John kerry says that it is either a good deal or no deal when it comes to talk to iran. The secretary of state hints that the u. S. Will be willing years in switzerland that today for more negotiations with iran. This letter was absolutely calculated directly to interfere with these negotiations. It specifically inserts itself to the directly of a leader of another country saying we will change this, so do not negotiate. Betty the man accused of shooting two Police Officers in ferguson, missouri says he was not aiming at them, he was aiming at another person after a dispute. A Prosecutor Says the police are not sure they believed the story. And president of an island nation in the South Pacific says he must rebuild everything. The storm killed eight people injured 30. It is one of the world poorest countries, and the president is leading for aid from the international community. And an auction house is under pressure after a record sale last year. Sothebys said tad smith w