We are about 30 minutes into the training day in the u. S. We are right now on the second day of losses after fridays losses. That is happening in part fisher of vice chair saying potentially there may be a rate on the table for later this year. We are seeing this waiting on the boards right now. The dow is up i about a third. The nasdaq is closer to the zero line. Rate on the table for later this year. We are seeing this waiting on the boards right now. The dow is up i about a third. Ae nasdaq is the dow is off t third. We do want to talk about mergers and acquisitions because it is a true m a monday. Talking about visor and it bid for medivation. This is on track for a record close. Look at the function. It looks like it is at the highest jump since march 31 or so. Billion,valued at 14 81. 50 per share. A are gaining a Prostate Cancer drug. Analysts are predicting by 2020 will pull in 20. 3 billion. Cst, Canadian Tire up with brands, up by about 10th of a percent. This is in regards to a Convenience Store chain in canada. Ard is interested in buying the texas gas stations. Also, taking a look at what is happening with the bloombergs dollar index, especially after what happened with the most recent fed comments. The recent mark is up by about a quarter of a percent. It had been hire earlier this morning but it is offered that after Stanley Fischer, vice chair Hanley Fisher saying that potentially growth will continue. Vice chair Stanley Fischer. Fed funds futures, we move see how it is impacting their. We are seeing a pop by a couple of percentage points. 26 , had been down by 24 . Over to you. We are about 90 minutes from the european equities closed. Here the markets have been fromted by the comments sally Fisher Stanley fischer. We are seeing the ftse 100 off why. 6 . It had the worst week since the prebrexit last week. The euro pretty much unchanged now. The sterling down against the dollar. The germany 10year yield, down four basis points. If i take you to the stoxx 600 and how is great different Industry Groups are performing,. Xporters benefiting we saw the Dollar Strengthened on fishers comments. The gains in the stoxx 600 , it was a bit of a shortlived rally. Market pretty much flat right now. Why . Commodity producers really weighing on the benchmark, producing a big downward told. We are down 2 . Producing a big downward pull. Chemicals at the moment leaning the gains up for person up. 4 . Risen as much as 13 , heading for the biggest oneday jump in more than a year. Receivedr chem china approval for the takeover of syngenta, seen as one of the biggest hurdles to the deal. Finally, one to show you what is happening in emerging markets, because the stronger dollar has been waiting here. Last thursday we saw emerging markets hit the highest level in more than a year, but down for a second day on both of these asset classes. Now checking on the bloomberg first word news. Emma russia will quit using bases in iran for strikes on syrian rebels, at least for now. The russians began the attack last week. The defense minister criticized russia for saying it is using iranian faces calling it an gentlemanly bases, calling it lemanly. Among concerns, the eu deal with turkey because of last month attempted coup. South korea and the u. S. Began the annual military exercises today, and north korea is morning in may launch prenuclear attack. South korea says the drills are defensive in nature. Tourist ship sank over the weekend. Only two of the 17 people on board were killed were rescued after it capsized in seas. The search and rescue efforts involved 20 ships and 50ish in both that it been hampered by highways and strong currents. The summer olympics in rio are over, and yes, this is the Prime Minister in japan guest as super mario. Was at the closing ceremonies to preview the 2020 summer olympics that will be held in tokyo. Checking the final metal scoreboard, the u. S. One the most, followed by Great Britain and china. 121 metals for the u. S. , 26 gold. Third. Ritain the u. S. With 46 gold medals. This is bloomberg markets. David getting back to the latest hawkish comments from the Federal Reserve over the weekend. Fisher signaled a rate hike is still on the table. Hanley fisher signaled a rate ike is still on the table. Stanley fisher. He has set the stage it seems. Now investors are waiting to see what janet yellen have to say when shes weeks in jackson hole, wyoming, when she speaks saturday. When she speaks. We look for reaction and indication this ill may be on the table. What did you hear when he spoke yesterday . I describe it more as an aggressive talk and an ill tempered does. Dove. L tempered david do you think a rate hike is on the table . I think without question they should be considering a rate hike. The conditions in the u. S. Warrant one. The real question is how can the Global Economy cope with this . Have notomething they previously looked up at something theyre much more attuned to today. What a rate hike make any difference to the bench we have seen in credit markets . The binge we have seen and markets . No question he would make a difference. We have seen Central Banks are becoming key. We think a surprise rate hike would have a negative impact. David there was a pretagore at the end of the speech that Stanley Fischer gave. We have heard that from many fed numbers. Do you sense that there is motivation for it to change . We think there is desire for that to change. How quickly and where it will occur will be the real question. Changek it is tough to quickly across the world. Look at japan to see where changes first. We have been talking a lot about how Foreign Investors investing in treasuries are really not getting a return based on currency effect. I have a great chart to show you entitled stretching your dollar. This will quadruple the yield of u. S. Debt. Wesley what this is showing how negative really what this is showing is how this is turning the bond market upside down. Also, complicating longstanding investment strategy. My question to you, what about uncharted territory could the negative Interest Rate push this this represents one of the biggest opportunities from negative Interest Rates. Investors historically have not looked at global bonds from a hedged perspective. They u. S. Investors hedge foreign currency. You can generate a pretty attractive return in the form bonds that are negative yielding. A lot of this is about Dollar Strength as well. This is already priced in. What does that mean for fixed income market . We have seen the dollars day in a range over the course of the past 612 months. That is because we saw a big move in the dollar about a year and a half ago as we went through taper and the first rate hike. I think given the pace of the should not be expecting a rapid move in either direction. Toking the tightrope tightening policy and not derailing the economy. That represents an opportunity for investors to go into hedged global bonds. I know investing in the oil and gas set of business. Where do you see that heading . We see a significant need for capital. It used to be it was almost free in that market. Investors were falling over themselves to invest. Now it is really tough, even if you have an attractive project to go in there and get the capital you need. We think you can find doubledigit returns and the energy space, but you have to be really selective because there a lot of public bonds that do not make a lot of sense. Other are there any sectors that are attractive to you . We are seeing attractive opportunities across the real estate sector. Particularly u. S. Residential real estate. You think about the challenges we had 10 years ago and that market. They are being really disciplined. And vesting in that part of the market represents real opportunity for fixed income investors. Just looking at u. S. Treasuries, how do you see the 10 year yield ending the year, and given what you think about that policy now, what do you ask that to happen to the yield curve . We would expect, given a nonaggressive fed, that you should see further steepening in the yield curve. Will they be a tremendous amount buter . We do not expect so, there is that risk. We think it makes a lot of sense to diversify your portfolio. Look for Central Banks that are being more dovish. Look for more hedge opportunities. Look across treasuries as well as credit in creating fixed income portfolio. About the comments from the bank of japan earlier today . Is that making any impact on how you view the u. S. Credit market and the markets locally . We have not seen a material impact. One thing that has been weighing on our mind in terms of investor moves, japanese investors have coming to the u. S. And giving negative Interest Rates there, u. S. Investors as they are going from active to passive investments, they are expending extending duration, which is quite dangerous considering how low Interest Rates are. Thank you so much. The italian oil firm says a balance between oil supply and demand will be reached by the end of 2016. More of the exclusive comments next. This is bloomberg. Live from london and new york. David i am david gura. You are watching bloomberg markets. Buying the gas for nearly four billion dollars, expanding the footprint in texas in eastern canada. The offer valued at 4. 4 billion. Including debt. This is before the Company Takeover speculation by saying it would explore. Trategic alternatives Rowland Smith is retiring after replacement he found. This comes three months after rivals drop the 6. 3 billion buyout. It was blocked by a federal judge. Smith expected to remain as chairman. Crashing at the box office, taking in less than 12 million. Production costs topped 100 million. Was first place for the third week. Sausage party number two. Ar dogs number three. Ti and brent starting the week sharply lower. Opec talks may lead to action of stabilizing the market. The ceo of italian oil firm shared what he asked x from the opec talks. Start. Ge i find this a wise decision to have stabilization production. The ceo also discussed talks with iran. We are always in there. I dont know exactly when. Possible talksme that are still in discussion. That was the ceo of eni speaking exclusively with bloomberg television. Still ahead, janet yellen aces High Expectations in jackson hole this week. We have your etf playbook. This is bloomberg. Live from london and new york. I am david gura. You are watching bloomberg markets. We are seeing pictures arriving and maples for a discussion about the future of the European Union. You can see them arriving, stepping off the plane. David the fed is meeting in jackson hole, wyoming, this week. This could trigger Currency Exchange rates. Joining us with more is Ramy Inocencio and michael regan. Before we get into the currency and terms of expectations for jackson hole, what are we thinking that the dovish comments from the fed and bullish and hawkish comments. What are your thoughts . Beach, it seems to change. Stanley fischer seems to be laying the groundwork for a rate hike. In general, i think the general idea is most people believe they will stand packed, at least through the election. The action in the dollar is really backing that up. People are pretty confident they will stay where they are, at least through the election. David fed futures are pricing in a 28 chance in september. The currencies, the u. S. Dollar is up about a quarter percent now. Talk about currencies and the etf now. What are the best performing so far the sheer they are the ones tracking the yen. Yen is up about 40 . The currency shares etf is the fxy up about 9 . The dollar weakness has been good for some of the funds that are basically tracking other foreign currencies. David if an investor wants to get in, talk to me about writing strategies. Buying strategies. A lot of them, especially from guggenheim, the strategy is to track the currency, whether it is the british pound or the euro. They have one for most of the major currencies. Some of the other ones did a little more asked her to eric. Play thethe futures currencies. There is some with leverage. Anything with altra will be a Leveraged Fund trying to double the return of the currency. With three times it will be triple leverage. The bestperforming of the group , that is obviously a Leveraged Fund. David talk to me about volatility as well. Currency etfs versus stock etf. It all depends on the product obviously. And generally a are not more. Olatile you have to come at them with a bit different strategy. This can be your typical buy and hold. For these, it is more you are buying to protect against currency swings and holdings bet onu have or to events like the fed coming up or the british referendum earlier this summer. That type of thing. With currencies being as zero some investment, it is not something you can necessarily buy and hold for a long time. Is something you have to be hedging against some fluctuations in the currency based on your holdings elsewhere in the policy in the portfolio. David a massive deal in the world of pharma. 14 billion dollars leaving santa fe in the dust. This is bloomberg. Hey hows it going, hotcakes . Hotcakes. This place has hotcakes. So why arent they selling like hotcakes . With comcast Business Internet and wifi pro, they could be. Just add a customized message to your wifi pro splash page and youll reach your customers where their eyes are already on their devices. Order up. Its more than just wifi, it can help grow your business. You dont see that every day. Introducing wifi pro, wifi that helps grow your business. Comcast business. Built for business. York city on august morning. Bloombergth World Headquarters in new york, im david gura. Checking in with the bloomberg first word news. Of thehe president philippines is threatening to withdraw from the United Nations over controversy concerning his war on drugs. He took office in june, hundreds of doubt hundreds have been killed. The u. N. Has called for an investigation. Around 100 american troops have been deployed to a Southern City in a guinness and for the risk of falling to the taliban and. The soldiers are in the provenance of hellman providence. Hellman is strategically important to the insurgents because the opm crop produces most of the worlds drugs. Produces most of the worlds drugs. Mr. Obama will spend time with aids trying to determine what they want from congress before the lawmakers shift to campaigning for reelection. He will also campaign for Hillary Clinton and other democrats in the fall. Powell is pushing back against Hillary Clintons testimony that he pushed her to use a private email server. A federal judge in texas is temporarily blocked directly from the Obama Administration on transgender students in schools. Federalmay the government told the schools transgender students made must be able to use bathrooms and locker rooms consistent with their chosen gender identity. I am a mets chandra, this is bloomberg. David pfizer snaps of medivation in a deal valued at roughly 14 billion. Pfizer gains a blockbuster drug in the lineup while santa fee is less jilted after months of talks. The deal will help improve innovation. Together we will be a strong force in making meaningful advances with innovative treatments that can improve quality of life. David starting with the deal as we see it today, 81. 50 per share. All cash. How did this fit into what you . This is at strong bid from pfizer. Definitely outbid santa fes previous bid. Deal. S a very attractive if you look at it on the estimates out there, the upper around 77ave been per share. Clearly pfizer coming in with a very strong offer. David pfizer has a very cancerful breast treatment. What is the motivation to acquire medivation . A lot of things going on. There is a lot of money to be made. Drugr has a relatively new that is doing fantastically. We are talking a lot of physicians and oncologists who love the drug. When they go to see the doctor they want more than one key drug in the lineup. Medivation trading at 80. 49 right now. What does that say about the likelihood of a counter bid . I am very skeptical. Theynk in the pfizer offer have a decent sized walkway clause. Santa fe themselves bowed out quite extraordinarily. They had the chance to speak to medivation. This is pretty much a done deal. An interesting approach from santa fe trying to force the deal at one point. Think they have lost in credibility because of that approach . Right now prospects are leak. Elatively be this was a great opportunity but they lowballed it. They should have gone a bit more aggressive. Especially with santa fe. This has been a great way for them to reestablish. I think investors would be a little bit upset by this. Where do santa fe go from here . The company has capital. It can leverage the debt structure to do some deal. They have other companies they can look at. Shortage out there. Companies in biotech alone. About bothous comments ian reid made saying it is good for innovation. Gotten fda approval. It is a profitable company. How does this fit in the plan buying a drug ready to order . This makes it very attractive. Also, they are getting to other drugs. It has had some hiccups, and they were not sure what the mechanism was. Is a big drug potential drug and Ovarian Cancer and breast cancer. It is a new space. We will see some details in the next couple of deals years. Medivation paid up front. That has pfizer quite excited about it. Been one ofhis has the most active drug makers in terms of dealmaking. What does this mean for that side of the story . Investors have been focused on this for quite a while. There was a sense for when you would be able t