:00:00. > :00:13.If you don't know the City of God there is a very, very good film
:00:14. > :00:14.about that the -- favela. It is very, very
:00:15. > :00:16.Those are the latest headlines from BBC World News.
:00:17. > :00:19.Now for the latest financial news with Sally Bundock.
:00:20. > :00:23.After it's mega billion-dollar deal to by cancer drug maker Medivation,
:00:24. > :00:26.will it continue building up a collection of patented drugs
:00:27. > :00:32.That was the rallying cry for the 1992 US Presidential
:00:33. > :00:34.election, when America was in recession.
:00:35. > :00:38.We talk with Donald Trumps chief economic advisor to find out.
:00:39. > :01:03.And Rico Hizon will join us to tell us about the biggest ever foreign
:01:04. > :01:06.acquisition by a Chinese firm. It is interesting. Stay tuned for that.
:01:07. > :01:08.Now for some other news Many predicted there news would be
:01:09. > :01:11.a lot of merger activity in the pharmaceuticals industry
:01:12. > :01:14.and we've got it this week. Analysts are currently pouring over
:01:15. > :01:17.the latest move by American drugs giant, Pfizer, it announced it
:01:18. > :01:19.snapped up the Californian biotech Some say its paying a high price
:01:20. > :01:23.for Medivation that produces the world's best-selling
:01:24. > :01:25.prostate cancer drug. It's product could generate as much
:01:26. > :01:28.as $5 billion in annual But Pfizer is paying a 120% premium
:01:29. > :01:32.on the cancer drug makers stock price at the end of March,
:01:33. > :01:35.this was before it grabbed the attention of the French
:01:36. > :01:37.drugmaker Sanofi. Since then Medivation's share
:01:38. > :01:39.price has been rising For Pfizer's this latest move marks
:01:40. > :01:43.a shift in its acquisition strategy away from tax efficiency to turning
:01:44. > :01:45.itself into a leading player Pfizer says it plans to decide
:01:46. > :02:05.in the coming months whether to split itself up,
:02:06. > :02:07.into separate companies selling either low-growth generics
:02:08. > :02:09.or patent-protected brand medicines. Alex Tarrant is Assistant Editor
:02:10. > :02:14.of Deal Reporter Europe. good morning. Good morning. The deal
:02:15. > :02:17.has been done it would seem but Pfizer has the prize. So many
:02:18. > :02:24.companies were interested. Tell us about this union. Sanofi kicked
:02:25. > :02:30.things off with their hostile offer with Medivation. That got a good
:02:31. > :02:37.three looking for other suitors. All of them are looking at it. Pfizer,
:02:38. > :02:45.we know, after a couple of large failed deals back in 2014 and now
:02:46. > :02:50.this one having fallen through, Pfizer is really out there looking
:02:51. > :02:55.the other products. This comes off of the back of another $5 billion
:02:56. > :03:00.deal. I know it sounds big but obviously for them it is quite
:03:01. > :03:05.small. Even $4 billion for Medivation is not huge. What Pfizer
:03:06. > :03:10.is doing is building itself up, possibly, with a view to splitting
:03:11. > :03:16.itself into the next few years. We will talk about the split in a
:03:17. > :03:22.moment, but about the cancer move now. You can offer skyhigh prices
:03:23. > :03:38.with cancer being a drug company. And with prostate cancer. This is a
:03:39. > :03:41.US organisations saying it is prolific, with treatment required,
:03:42. > :03:46.with so many men being diagnosed with it. It was surprising We were
:03:47. > :03:50.looking for a drug pricing debate in the US presidential campaign.
:03:51. > :03:56.Hillary Clinton did come out and make a few noises on this. Some
:03:57. > :04:00.people think this may hold Pfizer and other large companies like this
:04:01. > :04:07.holding off deals until after November. And this goes to show
:04:08. > :04:16.Pfizer's Desir to make acquisitions. -- desire. Tell us about this with
:04:17. > :04:23.Pfizer splitting into two. So, Jean-Eric and innovative products.
:04:24. > :04:27.-- generic. It will spin some off and given to current investors as a
:04:28. > :04:33.way of basically saying, the acquisition strategy did not go
:04:34. > :04:40.ahead. This is, effectively, Plan B. Be Medivation acquisition really
:04:41. > :04:47.fits well into the innovative portfolio. I saw much coming from
:04:48. > :04:53.them at Pfizer during the announcement of the Medivation deal.
:04:54. > :05:00.This kicks the innovation products bite of Pfizer into the top tier.
:05:01. > :05:04.And Pfizer wasn't hit too hard in the shares after the announcement,
:05:05. > :05:08.including the premium on their shares. They aren't too worried
:05:09. > :05:14.about it. Sometimes when you see mega deals than the share price will
:05:15. > :05:21.drop editor bit. It didn't happen in this case. Everyone seems happy with
:05:22. > :05:25.it. We will talk about it later. Thank you. It is in all the papers.
:05:26. > :05:28.That's the rallying cry for Republican presidential hopeful,
:05:29. > :05:31.And according to his campaign, corporate tax cuts and changes
:05:32. > :05:33.to international trade agreements will help realise his vision
:05:34. > :05:38.David Malpass is a senior economic advisor with the Trump campaign
:05:39. > :05:40.and former chief economist at Bear Stearns.
:05:41. > :05:43.Samira Hussain met him and discussed one of the central issues
:05:44. > :05:49.in the Trump economic platform, protectionism.
:05:50. > :05:58.You have used the term protectionism but that is not really what he is
:05:59. > :06:03.describing. He is describing a trade policy that actually creates jobs in
:06:04. > :06:09.the US rather than the emphasis on creating jobs abroad. And so, in
:06:10. > :06:14.order to... And that is where the blue-collar worker, meaning that
:06:15. > :06:18.people that work hard for a living everyday and are working with either
:06:19. > :06:25.machinery, they are working with skills that create goods, those
:06:26. > :06:30.workers have not done well in the trade environment that we have
:06:31. > :06:35.created. Donald Trump has said he wants to cut the corporate tax rate
:06:36. > :06:44.from 35% to 15%. How exactly will he be able to afford that? Right. How
:06:45. > :06:49.can we not afford it? The reason is because the US now has the highest
:06:50. > :06:52.tax rate, corporate tax rate, in the world. What that is causing is
:06:53. > :06:58.corporations to move out of the US, not put jobs in the US. And so we
:06:59. > :07:04.really cannot afford the rate we have now because we are losing so
:07:05. > :07:11.many jobs. And so you already have a very high tax that discourages job
:07:12. > :07:16.creation. Then what happens? How do you make up for the loss of income?
:07:17. > :07:26.I don't think it would be a loss of income. You would actually have more
:07:27. > :07:28.revenues. That sounds like how is that possible? But as the growth
:07:29. > :07:34.rate of the country goes up you will get more jobs. There is a lot of
:07:35. > :07:40.spin-off from corporate growth into small businesses that would have
:07:41. > :07:43.more dynamism. We have had this dry patch for the US economy where small
:07:44. > :07:49.businesses simply aren't forming. That has always been one of the
:07:50. > :07:54.strong points of the US economy We have lost that now. The Donald Trump
:07:55. > :08:00.plan is to get that job growth engine back. And that is going to
:08:01. > :08:05.create just a bigger economy that will... That will, umm, be able to
:08:06. > :08:11.prosper. That was David speaking to it. Let us talk drugs again.
:08:12. > :08:13.Shares in the Swiss agriculture group Syngenta have climbed
:08:14. > :08:15.after a US-regulator approved its takeover by ChemChina.
:08:16. > :08:18.The $43 billion deal would be the biggest ever foreign acquisition
:08:19. > :08:27.Sorry, it is not really drugs, it is mergers and acquisitions we are
:08:28. > :08:35.talking about. Let us go to Rico Hizon. Sally! Nice to see you. We
:08:36. > :08:40.are talking about deals today. This is interesting given what these
:08:41. > :08:46.companies do. That is right. ChemChina, which just recently made
:08:47. > :08:52.an acquisition of the large business in Israel and also own and Italian
:08:53. > :09:01.tyre maker. They were given the thumbs up that it can take over the
:09:02. > :09:04.Swiss Agri-Business Group. It was cleared in the United States which
:09:05. > :09:11.checks deals for national security implications. The approval is the
:09:12. > :09:19.big first hurdle for this megadeal. Because about a quarter of Syngenta
:09:20. > :09:24.deals are North America. Europe will be scrutinising this acquisition by
:09:25. > :09:30.the Chinese company and analysts are expecting other regulators will
:09:31. > :09:35.indeed give the deal the go-ahead. The deal with Syngenta is only the
:09:36. > :09:38.second one in... The biggest one in the past year, the biggest one over
:09:39. > :09:45.the past year has been the $130 billion chemical merger last
:09:46. > :09:53.December. Sally. Thanks a lot, Rico We will see you soon. The financial
:09:54. > :09:57.markets now. As you can see, the Nikkei 225 up by a quarter of a
:09:58. > :10:01.percent today. Added you shares falling today. And the price of oil
:10:02. > :10:06.continues to fall you can see down by a percent. Not so long ago we
:10:07. > :10:09.were talking about it going above $50 a barrel again but it is heading
:10:10. > :10:13.in the other direction now. Wall Street, in next flat and to the day.
:10:14. > :10:20.That is all from a business report. We will see you soon. More in the
:10:21. > :10:27.papers in about 15 minutes. THEME SONG.
:10:28. > :10:31.Women who have children can be paid up to a third less than men
:10:32. > :10:35.New research by the think tank the Institute for Fiscal Studies
:10:36. > :10:39.found that while the gender pay gap in general has been falling