Minute look at quick u. S. Equity futures at this hour show you how things look to be opening up in about 3 1 2 hours from now dow would be off about 20 points nasdaq looking to open up 15 points s p 500 looking to open off a little off well call it 3 1 2 points right now and also show you whats happening overnight in asia right now as we speak. Youre looking at red arrows across the board but well call it marginal except for the hang sang take a quick look at european equities as well as we flip that board around youre looking at mostly red picture, except the ftse 100 looking up 1 right now and finally treasury yields, tenyear notes unless youre looking for a 30year fixed right now the tenyear note is at 2. 060 joe . Big deal of the morning. Big. Big. Mylan, potential pharma deal to tell you about. Unit of pfizer with mylan. Thats right. Were expecting this news to be announced sometime this morning. What were hearing is that pfizer plans to spin off a unit called up john, off patent br d branded drugs to combine with mylan. This will be a combined company, new company that could have more than 20 billion in annual sales. It will be majority owned by pfizer 60 and about 40 from mylan shareholders its a unit that pfizer calls up john brought in about 3 billion in First Quarter sales its 20 brand that you know well, viagra, lipitor. With mylans epipen. In terms of management, mylan chairman Robert Courey will be the chairman of the new company, Heather Bresch is going to depart and pfizer executive who currently leads up john will be the ceo of the new company it will be domiciled in the u. S. And will get a new name which we dont know yet and mylan shares are up quite a bit this morning. If you look at whats happened to that stock over the last few years, quite a demise. Im excited that its going to be based in the United States because this was one of the great tax dodgers in the world right . They moved they were one of the great mylan is domiciled in if you think about why is this happening, the tax policy is working on the corporate side i told you i would surprise you this morning, thats what im excited about. Thats something we have heard from a lot of pharmaceutical executives. Allergen is overseas and inverted theyre coming back to america, people. They are. See, joe. You should be excited. I am. I can say a lot of nasty things on certain days, this i can Say Something nice about. You know Heather Breschs father, too. I do. Which is bizarre the whole epipen joe mansion, the democrat deno he is. No, he is. Here i am throwing you a bone im throwing you a bone deno or die know im throwing you a bone. Im just saying tax policy. Companies are coming back. Its weird that shes joe manchins daughter right but up john at one point was i think so way back yeah so pharmacia bought it. Pfizer bought that company. But really pfizer only started breaking out this unit earlier this year and calling it up john. Its kind of a whos who of drugs that were huge before they went off patent. Its kind of depressing. Huge. These are some of the biggest names, yeah. The biggest drugs in the world lipitor at bun point was the biggest drug in the world. You can see from pfizers perspective, a lot of very Large Companies that have an older slow growth division, they want to clean up their story and hive it off spinoffs make sense in this context, i guess now you get do it in a way that has scale with mylan, i suppose. Whats going to be the story with what remains of pfizer . What will be the things that drive that company thats a great question theres a new ceo who has been pushing to move the company to sort of streamline into a more traditional bio pharma driven company. They bought a cancer drug company array earlier this year. So really trying to focus in on those highly inknow vainovativiy priced vaccines. You remember the epipen controversy. I do. Heather bresch got hammered and her father is on the other side of the aisle trying to get drug pricing under control and shes you know, thats whats interesting about this those are the dynamics that you dont want to talk about. Whats going to be the legacy of Heather Bresch . Thats a really good question i mean, most of the public probably associates Heather Bresch with the epipen pricing. 60 minutes story and all the things. Yeah. Of course mylan is its most visible product but the Company Sells a lot of generic drugs part of the reason the stock has been doing so poorly in addition to other issues is that generic drug prices in the United States has been going down quite a lot. So the company does sell a lot of very cheap medicines in addition to the epipen it got dinged ding is a light term. More and more women coming into the s p 500 Running Companies. Vertex. But this will take one off the list. Its unfortunate. There are very few women. Every time i write these articles about women Running Companies and you sort of keeping a tally because sadly the tally is so small. So any time one comes off even though a number have come on in the past year. Yeah. We just got a new ceo announced for Vertex Pharmaceuticals is a woman and thats exciting. Automation. Auto nation and the defense industry. Autonation a s p 500 company . No, its not. Remember the day we had them on. It was in 2003 right. It became an s p 500. No. I just looked it up that day because i was going to say for you, since youre always talking about it, i was going to say the ceo of fortune 500 i was going to say it to make sure i didnt say it in error. I looked it up and it exited the s p in 2017 and became a mid cap, what is it, 400 and bright side financial replaced auto nation theres all the do you remember mylan and king i do mylan and king. Carl icahn. Carl was watching this show shaving, watching this show, shaving and he heard that. What is this thats ridiculous. He made his mind up that quickly. And actually thwarted the okay. We have another deal to talk about this morning yes, this is very interesting and deals with a competitor of ours, joe. The London Stock Exchange says its now in talks to buy Financial Data firm refinitiv. The old thompson roitders would include debt blackstone bought a majority stake in refinitiv less than a year ago which valued the firm back then at 20 billion when i say it has to do with a competitor of ours it would put the London Stock Exchange directly into the line of sight with bloomberg. How much debt are we talking about . A lot. So its not really worth that much were hyping were not hyping. You dont use transaction value. Yeah, you are what is the debt actually in this we actual factor out the debt. Enterprise value of the company includes the debt. We never use enterprise value when we talk about mergers. The total price which we can do, hopefully the folks who are doing the deal know the price, the larger issue is, a, is it worth this b, having a Stock Exchange effectively in the business of bloomberg, does it force bloomberg to actually do something . Thats sort of the larger piece of this. You remember the news operation of refinitiv has now been spun off as a separate piece. I cant really say were in fullon competition with them, but given that the terminalings are a big deal also, joe, you happen to use this service i thought you would care. Tell me, when. Thompson. Thompson. You use ichan in there on your system . Its not called that. You mean the where we have the scripts, the rundown and everything no, no, no, no, no. You always look at the wires, right . I have all news is what i look at. When theres earnings reports on the computer. Usually i have them memorized. First of all, fascinating that it would be such a quick flip from blackstone, right, that this was a deal thats not that old but also underscores that exchanges are just data platforms and information being exchain exchanged. Youre right, in terms of distribution of it, Stock Exchange and member firms. Find out how much debt i will find out during the commercial break maybe well get see whether this is she can talk to us about exchanges to see whether this is its data. Nasdaq is actually data we look here and you think about ipos but thats not business. It is. Its part of the business. Coming up, buckle up for a busy week from a bierage of earnings how long do we go back me and you, 25 years yeah. I thought we were talking these kind of numbers. No, were not i said your old name its michelle girard, but im entitled to mess that up. We go long ago you get grandfathered in. Well get you ready for it all right after the break. Right now here is a look at the biggest premarket winners and losers dear tech, lets talk. We have a pretty good relationship. Youve done a lot of good for the world. But i feel like you have the potential to do so much more. Can we build ai without bias . How do we bake security into everything we do . We need tech that helps people understand each other. That understands my business. Weve got some work to do. And we need your help. We need your support. Lets expect more from technology. Lets put smart to work. It will be the biggest week in the summer for the markets on the earnings front well hear from nearly anird of the s p 500 companies, including apple, exxon, chevron, merk, pfizer and gamble, verizon. Trade talks are resuming between the u. S. And china Robert Lighthizer and Steven Mnuchin are set to arrive in shanghai tomorrow to meet with chinas top negotiator the Federal Reserve kicks off a twoday policy meeting tomorrow. Its expected to cut Interest Rates for the First Time Since the financial crisis and its also jobs week. Polled forecasters expect an increase of 166,000 nonpharm jobs in july and decrease in the unplace of employment rate at 3. 6 bad jobs number and most recent one which seems like its just like couple days ago but it wasnt apparently. Any way, joining us now, a fed rated investors and our guest host, michelle girard. All this is happening in the backdrop of the summer, rj when i read its going to be a big week, it is. But im not sure its going to feel like that because you just cant, you know, late july, early august you just everybody is just kind of ah, sleepy but, pick the biggest data point, pick the development this week that the markets could key off of, r. J. Well, interestingly enough were heading into a Federal Reserve meeting week and it feels like the conclusion is baked in usually fed meetings are in a pretty high profile. This certainly is, but the spotlight on the fed now is whether or not theyll deliver and meet the markets expectations, not whether theyll ease or not. I think everybody expects that theres still some question of 25 versus 50 basis cut in terms of size of the cut maybe more important is what do they say our view here is we think theyll cut 25 and insurance ease, calibration of Monetary Policy given they probably tightened a little too much at the end of last year what do they say clearly the main focus is beyond our shores the u. S. Economy is in pretty good shape people wouldnt complain about inflation below 2 its just not that bad we have brexit to a clear global deceleration and Global Growth the fed is huge. I think the jobs data would be the second thing i would focus on jobs have been a bit saw tooth of late. They have been strong but up strong one month and a little softer the next. I dont think any one jobs numbers is going to change the feds mind however Economic Movement in the u. S. Is good the focus is abroad. So the whole reason for the new transparent shed is so were not never surprised. Theyre telling us 25. Its not going to be 15 or 0, right . I still talk to a lot of people and you still have people betting on 50 in the market. That surprises me because i feel like the fed has been clear in sort of telegraphing why 25 makes sense, but yet you still see the markets betting on 50. A lot of people looking at some of the signals that the fed has sent and suggesting that maybe they back the market off to expect 25 so they can deliver 50 so there is speculation about a larger number. The thing that is interesting and r. J. , i would be curious to get exactly what youre talking about. The other question is what do they say and will they be able to outdove the markets as they have done in previous meetings thats really the question can they do enough given what the market is expecting to actually meet or exceed expectations i think they can. When you look at the Federal Reserve under powell, they havent been wed to their position, to put it lightly. It wasnt that long ago that i was on this show talking about fed tightening its been a complete 180 chairman powell has been clear walking in a darkroom with respect to the fomc use of Interest Rates to try to find our star, te quill librium Interest Rate. He doesnt know where the chair is in that darkroom, hes pretty modest in terms of his profile and how confident they are about where theyre going next right now inflation is 1 5, 1 6. The target is two. They cant hit it with any sustained. They can be asymmetrically progrowth and asymmetrically focussed growth even though the u. S. Economy is right. What he says up at the press conference, his terminology, can say, look, were going to react. Were focussing on what the Global Economy is doing and not just the u. S they can be dovish enough even if they just do 25 they never do just one. Its always a series of rates. Its like if you got an infection and give you a half dose of penicillin maybe it will work if not, well give you the other one. Just knock it out. The new york fed president had stated which got the markets excited for 50 when you see the lower bound in view, you want to act more aggressively exactly. People would say, oh my god the world is ending. I think were beyond that time when people actually say, oh the fed must know something we know they know nothing. This is not a bigger sign leaning toward 50 could just be if this is a technical adjustment to get the short end yields down to where it makes sense relative to the rest of the world, thats why 50 and say now were patient, now were on hold. Does the market like 50 and a signal that thats it . Or do they want 25 with expectations and signals theyre going to do more r. J. , thank you michelle will be here. You know nothing, jay powell. Ill be watching all that. Im getting close, sorkin. Season 5 episode number 6, i think. When we return, were going to talk about the impacts impact of the grounded boeing 737 max on airline earnings. Phil lebeau is digging through the Quarterly Results for a look at what it will mean for airlines back in a moment were changing whats possible every single day. , and if you run a business, that means a lot. We create Financing Options for your customers. To help them get the things they love instantly. Our data provides insights into what your shoppers have already bought. So you can offer them what they might consider buying next. Our financial and Tech Solutions are changing whats possible in all sorts of ways. So, how can we change whats possible for you . Can the past help you write the future . Can you feel calm in the eye of a storm . Can you do more with less . Can you raise the bar while reducing your footprint . For our 100 years weve been answering the questions of today to meet the energy needs of tomorrow. Southern Company Ryanair out with Quarterly Results this morning phil lebeau joins with us a look at the impact of the grounding 737 max. Good morning, phil good morning, mike. And remember ryanair like southwest flies a 737 lineup so the impact of the max at it is supposed to filter in those planes thats going to be felt and they noticed it in Quarterly Results in the most recent quarter. Overall profits down 21 revenue per passenger simply because their Load Capacity is close to 97 it was up 11 . But with regard to the max, the ceo of ryanair never wanted to pull punches basically saying, look, its january at the earliest that we get the first of our 737 maxes and even then he has said in recent interviews its questionable whether or not thats going to be delivered at that time. They have about 30 maxes due to filter in to the fleet next year theyre saying, look, were only expecting to get maybe, maybe half of those in 2020 and then in terms of savings from those 737 maxes because theyre much more fuel efficient, they do not expect those savings to filter into the bottom line until 2021. So as you take a look at shares of ryanair and the Conference Call is going on right now, guys not surprising to see this kind of a chart remember, theres so much capacity in europe as well right now. Thats the other issue thats weighing on shares of ryanair given whats going on in germany. Thats their second largest market and theres just its a capacity war and theyre just flooding the market with seats the whole industry is right now in germany thats partially weighing on the results as well. Okay. Hey, phil, stick with us because we have another big story on your beat thats breaking right now. Clear has a new stake holder united following deltas lead bringing clear kiosks to all of its hubs including right here at new york liberty this will help joe kernen only likes to go to teterboro you are a clear member. A big fan big fan. Early adopter. Im an envious nonmember who wants to be a member i was sitting in a line at atlanta and was watching all those people go through clear and i was sitting there even in the tsa line dying effectively. Because the tsa lines are getting long clear to be able to go in, n