A better place to run its business than the United States of america is burger king. The company is in talks to buy canadas donut chain, tim hortons. Back to our top stories, roche has agreed to buy a u. S. Biotech firm and wit will get 8 billion itcash it will get billion dollars in cash. A record year for m a. Olivia sterns joins us live more. Welcome. Good monday morning. So nice to see you. Why intermune . Big bet on a drug that treats a rare long disease. The fda has already designated the breakthrough category. It has got a lot of pricing power. It is a disease that kills about 40,000 americans per year. The other reason is this is gets roche further. The asthmao build jokes a section of the business. The third reason is this is exactly the kind of old on acquisition we knew that roche and a lot of other players in the industry are looking to do instead of paying a billion dollars without any guarantee, they want to buy up their pipelines and buy jugs in late stage development. That is what they have got here. This drug is already on the market. It is a guarantee for you much that it will yet the green light in the u. S. About a billion dollars by 2020. What does that say about the price . What are people paying lately . What struck me was all cash. That is interesting. Yes. Roche has a lot of cash. Their cash flow for the first half of the year. They have got plenty of money. We knew they wanted to do a deals. The rumors were they go they were going to buy the rest of eighth japanese pharmaceutical a japanese pharmaceutical company. To makens are hard sense of. It is still a hefty premium. A 60 premium before there was any interest in the takeover of their company. About a 40 premium to fridays closing price. 8. 3 billion in cash, seven dollars per share. Keene likes to break down how much a deal is worth relative to the number of employees. Always sunny when he talks about stunning when he talks about biotech companies. It is about 23 million per employee. Good for them. Swiss but they probably will not move their headquarters to the u. S. Not want to pay more money in taxes. Smart choice. To otherthis stack up deals we have seen this year . Have there been a lot . There have been a lot. Record year for m a. Were justsions you talking about. The big one that did not go buyugh was wiser trying to for 117 billion astrazeneca. The biggest deal year for biotech in 10 years. Forhe midst of buying shire about 45 billion. But they are moving there. Companies are moving there but none of them are moving here. What should this tell us . To canadais going yet. Not yet. Thanks very much. We will go down to washington, speaking of this. Islamic state is cementing its hold in syria. ,he capture of a key area base the first to be fully outside of the control of president bush are us all aside. President assad. As a lot of come people are paying closer attention to what the Islamic State are doing in iraq and how they have pushed back been pushed back by iraq he forces. What happened over about five days of fighting in the northeastern part of syria was these militants were able to not only overtake one of the Largest Military bases the Syrian Forces hold, but also gain complete control over province. This is the largest robbins to be taken outside the control of assad and his Government Forces. The complexity u. S. Officials are facing as they look at how to do with the Islamic State. There is a real chance that airstrikes are expanded from not just iraq but into syria. If you are doing Something Like that, you are actually going out and helping assad, the individual the president stated two or three years ago must step down and go away. A lot of complex issues here. Is fact the Islamic State continuing to make major gains in syria only complicates the process that u. S. Officials are having to deal with. Not just in syria. I believe they took over an airport in libya as well. Looks like they are putting up a window across the board here. Lets move to france. President Francois Hollande was asked to form a new government. Latest oning you the that. We will actually go to france with Bloomberg News reporter Caroline Conan in paris. Has the french government effectively resigned here . Exactly. The entire french government actually resigned this morning. That was the big surprise of the morning. That comes after the economy meeting openly criticized the economy of the government. Prosperity was fading. He proposed 16 billion euros of tax cuts per household by 2017. That incized the fact france, the situation is not getting anywhere because of the austerity policy, not only in france, but also across europe. He also criticized the policy of germanys chancellor, angela merkel. He set it was said he crossed a yellow line. The big surprise was president fired him butnly replaced the entire cabinet. Want any trouble makers in his government. He does not want anyone to divide his policies. Say aboutes this french gdp . What are we looking at there as far as the Economic Growth or lack thereof . Is the main, that problem. There has been zero growth in france for the past two quarters. Earlier this month, the government had to revise its Growth Prospects from here zero to 2. 5 only for 2014. They also had to abandon their targets for 2014. Now they will be hard higher than four percent of gdp. That signals president hollande wants to maintain the currency. Earlier this year, he announced includes tax cuts for companies and in exchange, he wants to cut spending by 50 billion euros during his monday before 2017. Of course, that could start a europe. W debate in lande had tol react. His approval rate is at a record low. The lowest since world war ii. So much from paris for joining us. We have breaking news on a deal here. Oak hill will buy Berlin Packaging for 1. 43 billion. Rigidl by the supplier Packaging Products and services. 1. 4 billion. We will continue to cover this story as more headlines come across the wire. Alibabas chairman is the visionary founder of the commerce giant. There is another executive working behindthescenes and aroundtheclock sometimes to execute on that vision. Two weekb to roadshow across three continents. Hostt to bring in my guest for this morning, a serial entrepreneur and early stage investor and technology, media, Health Related ventures. Peabody, the cofounder of village vendors. He has been in the business for a long time. He has got a lot of knowledge and wisdom in the area. Also with us with a lot of knowledge and wisdom, leslie has been covering this story and many others like it for us. Welcome to the show. Thank you for joining us. Leslie, why dont we start with you . Talk to me about this across playing now super billionaire because of alibaba. The vicechairman of alibaba, the one behind all of the legal structures we have seen put in place in this country. He is the one that handles a lot of their acquisitions. This is a guy, the one behind the scenes who does the hard work and the executing of the vision. One who, you have to take 600 per year to work with me in the beginning. Offered to work for alibaba for free but jack said you have to take at least 50 a month. This guy went to lawrenceville, yell, he play lacrosse, making almost 1 million per year. How does someone like that sounds like he made a good decision. Definitely. Over 7 billion. But you must run into people like this all the time who make a decision and say i do not want to make just a few hundred thousand dollars a year for the rest of my life. I will take the da month with the promise of 7 billion later. Amazing the similarities between a late Stage Company like alibaba and earlystage companies we look at. The key indicators is a visionary founder coupled with a great operator. Those two people find each other and it is always worth taking a risk on the company. It is a recipe for success. This guy looks like he can easily be the face of a company. I wonder what puts jack in the spotlight because this is the first time i have heard of joe tsai. He is really the heart of this company. He is the guy who makes everything take. Tick. Goodlooking guy. He speaks great english. He has got everything wall street seems to want. It all comes down to his personality. People who know him say he is extremely humble despite coming from a very privileged background. Createdand grandfather a prominent law firm in taiwan. Very wellse was educated in the u. S. He speaks with no accent. He speaks just like you and me. He is the guy who wall street is going to want to get to know during this roadshow. The roadshow provides an opportunity for them to meet him. He is not as wellknown yet he is the one they are entrusting with with the Big Investments they may be making. He is also a guy who, ahead of hisas time. He went to lawrenceville in 1977. He went to yale and played lacrosse with a Pink Triangle on his shirt. He was protesting for gay rights. I do not imagine it was such an important issue as it is today. These are exactly the types of people who take risks. To 50,00000 a year here. These are the people we look for in our business. He is the perfect profile of that entrepreneur spark. A fascinating story. I so we can read it on bloomberg. Com. You will probably tweak it out. Leslie picker. Us,eabody will stay with guest host this morning. Coming up, heading to the middle east. They have had problems in a lot of other places, even though we all use it constantly. Serena williams tried for something that has not been done since the mid70s. Peek at the u. S. Open. Can she do it at her age . Stay with us. Coming up in the next hour, verizon sustainability officer james gowen talks with us about solar energy. Its rideis taking hailing app to israel. Regulatory issues are not likely to be the companys biggest obstacle. Hey probably are when buber debuts its service there today, it will have to taxi, a tel aviv start up that raise 150 million in funding weeks ago. Cab cap hailing act hailing app is a competitor. Joining me, cofounder of village ventures. Joining us as well is brandon, because i heard you talking about buber on surveillance. I am a fan boy. A regular viewer. Brendan made a point earlier that buber at some point could possibly be taken over by another apple or a number of barrierss because of entry are low. I hear drivers constantly complaining about the company. Why doesnt somebody else come up with an app we use just as much as uber . We both use uber constantly. Im sure this is just like amazon back in the 1990s. This is an arms race. If uber can keep raising capital and bringing prices down, why wouldnt you take it . They are also advertising two taxidrivers on the bridge to offer them to go over to uber. Why is this not like groupon . It was an amazing idea. Execution is reputable and it turned out to be. Amazon stole the idea, as did many others. Was it what is it that will keep buber the company to be a from being overtaken i grew by uber, the idea. Lost focus on the game. Amazon has been a 20 year multiwinning game, where jeff bezos has been at the helm the entire time. I think if uber can maintain the intensity, they will win. Groupon for you is not innovators curis. No. I thought it was a great concept. Gotst think management distracted. Ran. Ok the money and there are certain businesses where the product is so unique and so innovative that it can make up for a lot of mistakes. Uber and amazon, these things where you are basically taking something and modernizing it, those are not those types of businesses. They are execution businesses that require management. Out everywhere else besides israel, regulation is a row problem. But they just steamroll over it and do not care. That bothers you. For me, i think it is great because it is sowing the seeds of their own demise. I think that is possibly true. I just think they are too clever about the idea of regulation. It is true the tax businesses overregulated. It is definitely beset with regulations that are a problem and raise the barrier to entry. Ratherblem with uber is than working to get the regulations changed, that there is at least one low consistent set of regulations every driver is dealing with, they are just pretending that they are just a technology company, which is a little disingenuous. Theyre going to have their moment where something really bad happens. Hopefullyat happens, they can raise their capital to buy out of that. Thank you. Bo, you will stick with us. Stay with us here on in the loop here come loop. In there watching loop live on Bloomberg Television and streaming on your phone and bloomberg. Com. We are modern and hip. I and matt miller. Betty liu is back tomorrow. I want to give you a look at our top headlines. Mario draghi is nudging the European Central bank closer to quantitative easing. The president the ecb president warned meanwhile, the dollar hit an 11 month high against the euro. Once again, it will be tougher to make partner at goldman sachs. More thanll name no 70 partners this fall. That is about as many as it names two years ago, the smallest since 1999. In 2006, 119 partners were named. Partners can make millions so they have to keep the number as low as possible. The bazaar series of incidents involving sonys playstation unit. Sonys Online Gaming and Entertainment Networks were knocked offline by an attack. Hackers warned about an explosive on a flight carrying the president of sony entertainment. American Airlines Says the plane was diverted for a security issue, probably that one. Speaking of gaming, that is the sus that the subject of todays big number. 48 , the percentage of gamers that are women according to the Entertainment Software association. Of malesthe percentage at just 52 . Compare that to the number eight years ago when men comprise 53 of the total. Even more surprising is the number of adult women playing video games. They now outnumber teenage male gamers at 36 to 17 . Female gamers have increased by one third. The reason for these trends is not that more chicks are playing call of duty. It is candy crush and the kardashians. Still, if you sign onto halo, it will be a bunch of 12yearold boys kicking your but. Butt. More. Tt has thank you. It is time for futures in focus people futures are Holding Around 93 per barrel this morning after last weeks slumping to seven month lows. , is now with perspective craig bender, and also the Senior Market strategist with us as well. Morning,lizing this but what helped to drive them down to these levels . This market has been extremely successful in digesting political arrests. The airstrikes, depending on how you are measuring them, are starting to be effective in iraq. Despite the bad news there, has continued to be strong. You also have seasonality playing in right now. This is august, september, october, generally not the best months. Shouldnt Economic Data the giving oil a lift . Exactly, plus the fact, like we were talking about before, you have Hurricane Season coming up and traders are starting to look at things like that. Plus, Money Managers are exiting the market, the lowest level participation in a year. Metrics arese stretched. We are looking at things in the volatility market, the options market, to see if traders are going to take the other side. In mind, how will you be trading oil at the moment . If youre going to look at the futures contracts, you want the target to come into play because of the issues greg had outlined. We are most likely going to trade down to that level, next week, especially if we have another build. You start to look at a long futures contract. It will be a little oversold at that price point. The upside, around 95 and 96, i think that is all the gas they have. They will buy at 90 and stock down at 80 nine. Maybe widen it to 2000 if necessary if volatility picks up. Take that target up and 95 or 96 gives you a good return. Oil currently trading at about 93 per barrel. Phil is waiting for it to drop to 90 and then he will be a buyer. He plans to sell when it tops 96. He would actually make 5,000 on his trade. Back to you for a moment. Gas prices are starting to come down as well, with crude falling and staying at these lows. What that help wont that help to have a counter effect . Exactly. From a fundamental perspective but also a technical perspective, lets remember that global Commodity Prices like gasoline, crude, our pricing dollars, at alex the dollar had an extremely nice run in the last couple of weeks, specifically the euro and the yen. A lot of traders are looking at that. It will be a quiet week in the market this week. Labor day weekend, have those pairs gone too far, too fast . That is the question. When we talk about trading futures and commodities, we also hear the word take. Tick. A the smallest amount security can trade in. For stocks, it is easy. A penny. Very standard. For commodities, it gets more complex. Not only do the sizes vary, but the amount it is worth can vary greatly. Is a oil, the minimum tick penny. It is 10 a tick. Silver, 25 a tick. Thank you. We are on the markets once again in 25 minutes. Coming up, the next generation of tennis stars will see a number of tennis stars in the next couple of weeks at the u. S. Open. Also, strap on your helmet, fire up your console. It is time for the latest version of one of the most Popular Video games ever. The new madden nfl. Tennis fans all over the world will tune into the u. S. Open, which begins its 14 day run today. This years event is shaping up to be the most up for grabs grand slam in years. Serena williams, the winner of the past two u. S. Open womens titles, has 17 grand slam titles to her name. But she has never won the same grand slam more than five times has yet to reach a corner quarterfinal in every major event. Can you imagine . [laughter] us, chairman and ceo of the womens tennis association, in town obviously for the event. She joins us to talk more about this. Bo peabody is still here, as and i thought