Lets bring in michael ye and another health care analyst. Michael, first you to. Given the deals that we have seen, not just today but in the past, why do you believe a biomarine or vertex may be takeout targets down the line . Two reasons. One is if you looked at biotech valuations, theyre down 35 off the top in the last 6 to 8 months on political rhetoric that we talked about. So asset prices have come down and become a lot more attractive. The second point is that theres no change to the fact that Big Companies need commercial products and they need pipeline. Thats exactly what youre seeing. And what will those companies have that make them attractive you to or to potentially bottom . Les, we can hear you. Well get to you in a second. What makes them potential buyout candidates . Both vertex and biomerine have real revenue. Theyre out there right now plus pipelines. You get both of those with that. And so both of these companies have asset value to acquirers. You know, les, when you look at it, obviously you want to probably own companies that get bought rather than companies that do the buying. Do you agree with michael or is there anything else out there that you see as a possibility . First of all, in order to do an acquisition, you have to have a willing seller. And i think that a lot of the bioteches are still anchored to the two week highs. Im not sure its going to be that much activity in that sector. I think what you saw was st. Jude and abbot today was a med tech and others have not participated in the m a sweepstakes. I think that sector in particular is due for a catchup. And id say med tech in, particular because of the fundamentals are doing so well, we own Boston Scientific and edwards which have done well this week and the hospital stocks which benefit from utilization increases. I think youre going to see more consolidation there. Towards the end of the year, i think reality may sink in with the bioteches and you might start to see more deal activity in that sector as well. But les, even though some of the Companies May be richly valued, when you look at a deal like santa fe now cross border hostile for medevation, it looks like theyre willing to pay up for companies they want. Do you think that company wouldnt be a willing seller at the right price and that they wobbling to pay that price . You know, a lot of the larger pharmas are desperate for pipeline. To michaels point, they need products. And so theyre one of them. Astrozenica. Theyll pay up. Im not sure overpaying for an asset is a great strategy. You can wind up in a lot of trouble. So, yes, it will happen. But i think it will happen in a strategic way, not in a sort of stampede way. Michael, when you look out there in your coverage universe, you gave us some names you think could be takeout candidates. We appreciate that. Is there one name out there that may not be a takeout candidate but youre watching them closely now and saying, hey, down the line, theyre going to be really, really valuable . Yeah. So we would say kite another one. Kite has phase three cancer assets in the pipeline. And theyre hanging out there, too. Its a pretty hot mid cap stock that we have a buy rating on. So thats another one. So they have a deal with amgen. Amgen talked about the fact that theyre looking at things, biogen just last week said theyre looking at a lot of assets. So the point is that Bigger Companies are saying theyre looking at these assets. I it this bid spread is coming together. Michael yee and les from esquared, good concrete ideas. We appreciate it. All right. Thank you. Meanwhile, more on the other big deals today in just a moment. First, some news in the bond market. Seven year notes up for auction. How is it going, rick . Ill tell you, you put two Central Banks behind you, three including the ecb, you push yields down. You have everybody jump in long yesterday after the fed statement. You talk about the perfect landscape. This was an a. I almost gave it an a plus. This auction, they were just dying for these seven years. Lets go through it. Final of will 88 billion in supply today. 1. 634. Looked to me like 1. 645. This was strong. Bid to cover, 2. 65. Way above the 2. 47 auction average and the best since february of 14. 65. 5 at indirects. If you take out the three that we added in january at 69. 4, this would be the best read going back to 09. If you 14. 2, up 13. They take 20 are of the auction. If you look at all the charts, whether its the sevens, twos, fives, tens, or 30s, the auction is behind us. This one went great and all yields are moving down a bit. Thank you. Lets get to the other big deal story today and that would involve cnbcs parent comcast. They are buying dreamworks animation. Dreamworks at 39. 98, up 7. Comcast, moving higher as well. Up a third of a percent. We have details live from l. A. Hi, julia. Hi, tyler. Investors are certainly bullish on this deal for dreamworks animation. Comcast shares budged slightly. The analysts say a deal helps comcast get established brands, greater presence in china and better exposure through digital. I spoke to Nbc Universal ceo about why he is paying 41 a share, a hefty premium over the 27 a share that the stock closed at on monday. He said that the deal will bolster the studios animation business, building on the success of the franchise and plus assets such as shrek and kungfu panda will help the theme park divisions. It shouldnt be valued on assets and cash alone but should take into account the synergies. Because of that poshs of integrating the acquisition into nbc used assets, burke says it makes sense to shift into a consulting role and focus on the digitsal division. A number of Media Industry insiders compared thl tis dea disneys marvel, pixar and lucas film accusations and bob egers strategy of building and buying big Family Friendly brands to exploit across multiple platforms. As for what this means for other m a, this deal bodes well for the valuations of lions gate and viacoms paramount. Brian . All right. Thank you very much. The push for electric vehicles is in full force, even in china. But plugging in can be, shall we say, baa bit of a challenge, especially for those living in highrises. Here is phil lebeau. How tough is it to own an electric vehicle in china . Check this out. This is parked outside an Apartment Building. They have to run this cord to e recharge it every night across the street, up the cord yaurtya their Apartment Building and up here and goes up to the third floor. Thats what they have to do every night in order to recharge their electric vehicle. That is dedication. Speaking of dedicated, phil lebeau left beijing but joins us now from the chinese city of shen zen. I bet that plays out all over the city. It does. And we were surprised when we first heard about. This somebody said, look, there is somebody that has a stretch of cord 100 feet to charge in their electric vehicle. But thats one of the challenges here in china. That said, were seeing growth pick up here in china when it comes to electric vehicles. Sales last year outpaced the u. S. 188,000 electric vehicles sold in this country. The goal is to have 10 of all vehicles in this country be electric. That is by the new sales by 2020. Byd is the largest maker in this country. Last year sales totaled 62,000. One reason sales are picking up, first of all, the federal government here as well as local governments give incentives that start at 8500. Those go direct to the buyer. Also, the buyers get the vehicle licenses quicker, immediately. They dont have to wait for the auction or some type of lottery in order to get the vehicle licensed. However, the challenge which we just showed you is finding a place to plug in every night. Chinese consumers generally live in large apartment complexes, not in stand alone homes where they can more easily have a charging solution. So one of the problems is where do you charge it . Are there teslas in china . Did you see many teslas . Yes, weve been driving around, we have seen teslas more in beijing than down here in schenn zen. We went to a super Charger Network station for tesla and there were a line of teslas recharging. There were people waiting to go in and charge up their tes l. A. Keep in mibld, teslas imported in here so there is a hefty tax on them. Thats limb ilimited their sale far. Great stuff about chivenlt 1 00 in the morning, there phil. We know youve been working ultra long days. We appreciate it. Really cool stuff. Thank you, buddy. Appreciate it. Were just Getting Started on power lunch. Coming up, this is big and exclusive with billionaire investor carl icahn. Lots to talk about with him. Scott is going to join us. Going to be a big free for all. No topic offlimits. Plus, more on the big nothing out of japan. Trust us, that nothing is really something. But first, were headed back to iran where Michelle Caruso cabrera continues her series of amazing reports from that country. Thank you. Last hour i showed you how they trade stocks in iran. Wait until you see how they trade gold. Coming up right after this break on power lunch. Gold futures are trading higher here in new york. But in iran, the gold trade is a completely different story. Lets get to Michelle Caruso ka br cabrera who is live on the ground in tehran for us. Michelle . Hey there, yeah, if you go to the bazaar here in tehran, youll see this, hundreds of gold traders out in the main square doing open outcry to exchange gold. Who needs an exchange . Very similar to say the button wood tree the way wall street trading got started in new york. Now that may look very old school but there are a lot of people who think the iranian economy is changing and for the better. In fact, we have run into exiles whos family left as a result of the Islamic Revolution in 1979, theyre thinking of coming back to iran because they think the economy is changing. Al this man is an economist. He was raised in france when his family went into exile in the 1980s. He made sure he was on the very first air France Flight that took off from pair tois tehran. The first one in eight years. It occurred because the sanctions had been lifted and that flight was only about two weeks ago. He said he was very, very excited. He got on that flight because he believes this is an historic time for iran. You can feel it. I just came from paris, france, with the first air France Flight to tehran after eight years. And when i entered the flight, i was feeling the excitement of the people. Its not just because the nuclear deal. Its also because under the president , the president here laz made it a point that he wants to enlarge the private sector. This is an economy that still has deep, deep intervention by the government. But he wants to change that. However, he says he still has one very big concern. This corruption which is unfortunate system is a very, very significant constraint to the development of the country. And i think the government of iran, the current one, is very much aware of this issue of governments, of corruption. And theyre trying to solve. That but this is a very difficult problem. Its going to take time. It is an incredibly difficult problem, especially when there are vested interests. Thats where a lot of corruption comes from. Well have to see if iran really is changing. But there is hope. Back to you. Michelle, you have explored every facet of the economy there. I know well get a little more from you a little later on. Michelle Caruso Cabrera in take ra tehran. Why ford shares are in overdrive right now, kusht currently up 3. Full details when power lunch returns. Welcome back to power lunch. Marriott adjusted profit of 87 cents per share, three cents above estimates. Revenue at the company beat forecasts. Ford beating estimates, revenue below forecast. The automaker saw record Profit Margins globally and in north america. And mastercard reporting profit that declined year over year but less than the street expected. Customers are spending more using its cards and mastercard is ramping up spending on technology, did so less than expected. Over to you. Thank you. Last month a security lapse in the bank of bangladesh led to an 81 million theft from an account at the new york fed. Now a fed official says theres little the u. S. Central bank can do to prevent Something Like that from happening again. Alarming words. We have the story live from washington. The new york fed official told Steve Liesman and i that fed is taking this issue very seriously and that cybersecurity at the banks around the world that fed tranacts with is critical to the system. What happened in february is crooks got into the Computer System and authorized transfers of nearly a billion dollars out of the banks account. Systems blocked some of the transfers but released 81 million to accounts in the philippines and slee lafrpga. Some was sent on to casinos in the philippines and converted to chips on the gaming table theres. Authorities dont have any idea who stole all of that money. Now despite that heist, the fed official told us that the fed has no control over cybersecurity at the global banks that it does business with around the world. And that means theres potentially an enormous amount of money at risk here. Now as many as 250 Central Banks and entities around the world have accounts at the new york fed totaling 3 trillion in assets, roughly 80 billion is wired into and out of those accounts every day, the official said. Now that staggering pool of munn represents a rich and tepting target for cyber thieves. But if cyber thieves strike, it doesnt have to tell anyone about it. The official said there is no law or regulation that requires the fed to reveal the heists have occurred. Steve liesman and i asked if there are other cyber thefts like at the bank of bangladesh and the official replied that there have been none in a central bank context. But the official and a fed spokesperson declined to respond to several questions about whether accounts at private banks at the new york fed have ever been victimized. Back to you. So lots of questions arise here. Sounds like there may have been other incursions into the fed one way or another. They dont know. But why we began the piece by saying they cant guarantee the security or that wont happen again. Right. Why arent they taking steps to make sure it doesnt . I assume they must be. This is the Global Nature of this problem. They say they cant tell us any specific steps theyve taken for security reasons. They also say theyre ham strung by the Global Nature of this. The fed has that 3 trillion pot of money in new york. But the global bafnks dont hav operational control over the cybersecurity at other global Central Banks. And thats the key issue here. That seems to be what happened in the bank of bangladesh. Someone got into their systems and then withdrew the money out of the new york fed account. It is just me . I know were highlighting the story. It is 23 minutes after the hour. I think if there was somebody literally Walking Around inside of ft. Knox that it would be this gigantic story. I feel because this is happening on computers, but effectively the same thing is going on, there is a crook literally Walking Around the hallway, if you were, it kind of gets pushed down a little bit. Yeah. Youre an a block kind of guy. Look, what were so used to all the hacks happening and all the news, it all blends together. But remember what the thieves tried to do here. They tried to steal a billion dollars. Exactly who can carry a billion dollars out of ft. Knox. It would take up too much space. National news headlines, whatever is a couple Million Dollars at the time. Were talking about a billion bucks. But because this is on a computer, it seems to happen so much, i feel like its not us or you, its sort of as a country or a world weve become so sanguine so to what is true monumental crime. 80 billion is being wired back and forth on every single average day. That is a lot of money in motion right now. Its a lot of big hugearget for cyber thieves. The goal is to get a billion. This ended up getting 81 million. You say that Security Systems caught the others, i guess. Yeah. And we dont know exactly what happened there. The new york fed is not providing any details about what happened. There is a member of congress opt hill in washington who sent letters to the new york fed asking why some of the transactions were approved and others were not. It may be something as simple as a spelling error in the electronic file that requested the transfer. The other question here is why arent there human beings involved in the transactions . Why is there completely Electronic Transaction here . There is simply so much money moving in the global economy, xrupt human beings process this every day. Its that much money. Another check on gold price wlz theyre sold at the button wood tree in eiran or whenever, up 16, almost 17. 1268 even. That is your gold check. Look at silver, copper, platinum and palladium. All higher as well with copper the lagger there, up just. 25 . Others up more than 1 in the case of silver, palladium and platinum. Big scandal at price line. Well tell what you the controversy is that led to the resignation of the companys ceo. Power lunch returns. Hi, everybody. Here is your cnbc news update this hour. A u. S. Attorney reporting three people connected to the shooter farouk have been arrested on conspiracy, marriage fraud and false statement charges. One of them was farouks brother. The attack last december left 14 people dead and 22 wounded. Syrian rubbles blaming russia for the deadly air strikes over the last 24 hours, one of them hitting a pediatric hospital. Rush yashgs however, says it was not behind the strikes which killed at least 61 people in the city of olepo in the last 24 hours. The United Nations urging north korea today to stop further provocative actions after reports it test fired two intermediate range ballistic missiles. They were detected by the u. S. Last night. They pose nod threat to n