23/08/2016 World Business Report

If you don't know the City of God there is a very, very good film

about that the -- favela. It is very, very

Those are the latest headlines from BBC World News.

Now for the latest financial news with Sally Bundock.

After it's mega billion-dollar deal to by cancer drug maker Medivation,

will it continue building up a collection of patented drugs

That was the rallying cry for the 1992 US Presidential

election, when America was in recession.

We talk with Donald Trumps chief economic advisor to find out.

And Rico Hizon will join us to tell us about the biggest ever foreign

acquisition by a Chinese firm. It is interesting. Stay tuned for that.

Now for some other news Many predicted there news would be

a lot of merger activity in the pharmaceuticals industry

and we've got it this week. Analysts are currently pouring over

the latest move by American drugs giant, Pfizer, it announced it

snapped up the Californian biotech Some say its paying a high price

for Medivation that produces the world's best-selling

prostate cancer drug. It's product could generate as much

as $5 billion in annual But Pfizer is paying a 120% premium

on the cancer drug makers stock price at the end of March,

this was before it grabbed the attention of the French

drugmaker Sanofi. Since then Medivation's share

price has been rising For Pfizer's this latest move marks

a shift in its acquisition strategy away from tax efficiency to turning

itself into a leading player Pfizer says it plans to decide

in the coming months whether to split itself up,

into separate companies selling either low-growth generics

or patent-protected brand medicines. Alex Tarrant is Assistant Editor

of Deal Reporter Europe. good morning. Good morning. The deal

has been done it would seem but Pfizer has the prize. So many

companies were interested. Tell us about this union. Sanofi kicked

things off with their hostile offer with Medivation. That got a good

three looking for other suitors. All of them are looking at it. Pfizer,

we know, after a couple of large failed deals back in 2014 and now

this one having fallen through, Pfizer is really out there looking

the other products. This comes off of the back of another $5 billion

deal. I know it sounds big but obviously for them it is quite

small. Even $4 billion for Medivation is not huge. What Pfizer

is doing is building itself up, possibly, with a view to splitting

itself into the next few years. We will talk about the split in a

moment, but about the cancer move now. You can offer skyhigh prices

with cancer being a drug company. And with prostate cancer. This is a

US organisations saying it is prolific, with treatment required,

with so many men being diagnosed with it. It was surprising We were

looking for a drug pricing debate in the US presidential campaign.

Hillary Clinton did come out and make a few noises on this. Some

people think this may hold Pfizer and other large companies like this

holding off deals until after November. And this goes to show

Pfizer's Desir to make acquisitions. -- desire. Tell us about this with

Pfizer splitting into two. So, Jean-Eric and innovative products.

-- generic. It will spin some off and given to current investors as a

way of basically saying, the acquisition strategy did not go

ahead. This is, effectively, Plan B. Be Medivation acquisition really

fits well into the innovative portfolio. I saw much coming from

them at Pfizer during the announcement of the Medivation deal.

This kicks the innovation products bite of Pfizer into the top tier.

And Pfizer wasn't hit too hard in the shares after the announcement,

including the premium on their shares. They aren't too worried

about it. Sometimes when you see mega deals than the share price will

drop editor bit. It didn't happen in this case. Everyone seems happy with

it. We will talk about it later. Thank you. It is in all the papers.

That's the rallying cry for Republican presidential hopeful,

And according to his campaign, corporate tax cuts and changes

to international trade agreements will help realise his vision

David Malpass is a senior economic advisor with the Trump campaign

and former chief economist at Bear Stearns.

Samira Hussain met him and discussed one of the central issues

in the Trump economic platform, protectionism.

You have used the term protectionism but that is not really what he is

describing. He is describing a trade policy that actually creates jobs in

the US rather than the emphasis on creating jobs abroad. And so, in

order to... And that is where the blue-collar worker, meaning that

people that work hard for a living everyday and are working with either

machinery, they are working with skills that create goods, those

workers have not done well in the trade environment that we have

created. Donald Trump has said he wants to cut the corporate tax rate

from 35% to 15%. How exactly will he be able to afford that? Right. How

can we not afford it? The reason is because the US now has the highest

tax rate, corporate tax rate, in the world. What that is causing is

corporations to move out of the US, not put jobs in the US. And so we

really cannot afford the rate we have now because we are losing so

many jobs. And so you already have a very high tax that discourages job

creation. Then what happens? How do you make up for the loss of income?

I don't think it would be a loss of income. You would actually have more

revenues. That sounds like how is that possible? But as the growth

rate of the country goes up you will get more jobs. There is a lot of

spin-off from corporate growth into small businesses that would have

more dynamism. We have had this dry patch for the US economy where small

businesses simply aren't forming. That has always been one of the

strong points of the US economy We have lost that now. The Donald Trump

plan is to get that job growth engine back. And that is going to

create just a bigger economy that will... That will, umm, be able to

prosper. That was David speaking to it. Let us talk drugs again.

Shares in the Swiss agriculture group Syngenta have climbed

after a US-regulator approved its takeover by ChemChina.

The $43 billion deal would be the biggest ever foreign acquisition

Sorry, it is not really drugs, it is mergers and acquisitions we are

talking about. Let us go to Rico Hizon. Sally! Nice to see you. We

are talking about deals today. This is interesting given what these

companies do. That is right. ChemChina, which just recently made

an acquisition of the large business in Israel and also own and Italian

tyre maker. They were given the thumbs up that it can take over the

Swiss Agri-Business Group. It was cleared in the United States which

checks deals for national security implications. The approval is the

big first hurdle for this megadeal. Because about a quarter of Syngenta

deals are North America. Europe will be scrutinising this acquisition by

the Chinese company and analysts are expecting other regulators will

indeed give the deal the go-ahead. The deal with Syngenta is only the

second one in... The biggest one in the past year, the biggest one over

the past year has been the $130 billion chemical merger last

December. Sally. Thanks a lot, Rico We will see you soon. The financial

markets now. As you can see, the Nikkei 225 up by a quarter of a

percent today. Added you shares falling today. And the price of oil

continues to fall you can see down by a percent. Not so long ago we

were talking about it going above $50 a barrel again but it is heading

in the other direction now. Wall Street, in next flat and to the day.

That is all from a business report. We will see you soon. More in the

papers in about 15 minutes. THEME SONG.

Women who have children can be paid up to a third less than men

New research by the think tank the Institute for Fiscal Studies

found that while the gender pay gap in general has been falling