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00:00BEEN LIFE-SCIENCES INDUSTRY, TELECOM, TECHNOLOGY. DISTORTED A LITTLE BIT BY THESE MEGADEALS. WHAT WE SAW AT THE BEGINNING OF THE YEAR WAS A SLEW OF MEGADEALS THAT REALLY DROVE THE VALUE AND DROVE THE NUMBER OF DEALS VERY HIGH. THAT DISTORTS THE PICTURE A LITTLE BIT. I THINK THAT WE LOOK AT THESE NUMBERS, WE HAVE TO BE A LITTLE BIT CAREFUL ABOUT EXTRAPOLATING TOO MUCH. I THINK THERE IS A DISTORTION. ANNA: IF WE DID WANT TO EXTRAPOLATE ANYTHING , WOULD THAT LEAD TO SOME SORT OF CORRECTION? >> I THINK IT IS TOO EARLY TO SAY WHETHER WE HAVE PEACE. I THINK MOST COMMENTATORS THINK WE HAVE PEAKED AND THAT THERE WILL BE A SLOWDOWN. INEVITABLY, WHEN YOU HAVE THAT -- HAVE THESE MEGADEALS, THERE WILL BE FOLLOW ON DEALS THAT COME WITH THOSE AS REGULATORS LOOK AT THOSE TRANSACTIONS, BUT WHAT WE MAY NOT DO IS QUITE SO MANY MEGADEALS. ANNA: STAY WITH US FOR A MOMENT. LET'S BRING INTO THE CONVERSATION BLOOMBERG'S MANAGING EDITOR FOR GLOBAL DEALS. TOPICS THROUGH SOME OF THE BIGGEST DEALS. WE HAVE BEEN TALKING IN THE STUDIO SOME OF THE SECTORS THAT WERE CRUCIAL TO THE M & A. >> THERE IS NO DOUBT THAT THIS YEAR HAS BEEN DOMINATED BY NEGATIVE DEALS. THE ACCOMMODATION OF PFIZER AND ALLERGAN , WITH THE INVERSION SO THEY COULD MOVE ABROAD, LOWER THE TAXES, GET SOME NEW DRUGS. AS WELL AS MAKE A BREW, THE TAKEOVER OF SAB. THIS SEEMS TO BE THE YEAR THAT THOSE DEALS THAT WE WERE WAITING FOR OUR ACTUALLY HAPPENING. ANNA: WHAT IS THE OUTLOOK FOR 2016? DOES THIS TELL US ANYTHING? THIS HISTORY HELP US INTERPRET THIS BIG INCREASE IN M & A? AARON: WE WERE CRUNCHING THE DATA JUST YESTERDAY, LOOKING AT WHAT HAS HAPPENED IN THE PAST WE REACHED THESE TYPES OF RECORDS. IN 2002 AND 2007, WHAT WOULD BE THE PREVIOUS RECORDS, THE YEAR AFTER, THERE WAS A BIT OF A CORRECTION. NOW, WE ARE ASKING OURSELVES, CAN THIS HUGE WAVE OF DEALS CONTINUE? I THINK THE COMMON THEME IS THAT NEXT YEAR WON'T SEE AS MANY MAKE A DEAL BUT THAT THERE IS STILL SUFFICIENT COMPETENT -- SUFFICIENT CONFIDENCE. WE WILL SEE SOME ACTIVITY, BUT I THINK PEOPLE THINK IT MIGHT NOT BE QUITE AS SWEET OF A YEAR FOR DEALMAKERS. ANNA: I LEFT KEEP GOLDMAN SACHS HAPPY, PERHAPS. I SAW FROM ONE OF YOUR STORIES THAT GOLDMAN BREAKS A PERSONAL RECORD. ANNA: SIMON, LET'S GET TO YOU ON THIS SUBJECT. THE FEDERAL RESERVE AND WHAT THEY CHOOSE TO DO WITH INTEREST RATES IN THE YEAR AHEAD, IS THIS SOMETHING THAT COULD DERAIL THE M & A BOOM WE HAVE SEEN? SIMON: I DON'T SEE THE FED MOVING WITH SUFFICIENT SPEED WITH A U.S. PRESIDENTIAL ELECTION IN THE SECOND HALF OF NEXT YEAR. I THINK WE WILL LUCKY TO SEE 2%. IN TERMS OF LOOKING AT M & A ACTIVITY, THERE WILL STILL BE A CREDIT MARKET NEAR HISTORICALLY LOW RATES TO RAISE CREDITS TO FINANCE THESE DEALS. THEREFORE, SUPPORT FOR DEAL TO BE DONE. ALSO, LOOK AT THE GEOGRAPHICAL BREAKDOWN OF THE DEAL THIS YEAR. NORTH AMERICA, ASIA . ALMOST FLAT EUROPE. QED, LOW OIL PRICES, A LOWER EURO START BUILDING MOMENTUM, THEN WE SHOULD START SEEING THIS -- SEEING THESE DEALS FROM THE EURO SIDE. ANNA: THE MOTIVATION BEHIND SOME OF THEM HAS BEEN TAXED IN THE VERSION -- TAX INVERSION. THE U.S. TRIED TO CLAMPDOWN THAT, HAVEN'T THEY? WILL THAT BE SOMETHING THAT WILL CARRY ON AS A MOTIVATION? >> THE U.S. GOVERNMENT WAS ABLE TO GET THROUGH SORT OF THE FIRST WAVE OF RESTRICTIONS. WHAT WE ARE PICKING UP, I THINK, IS INCREASING CONFIDENCE THAT THE OBAMA ADMINISTRATION WILL BE UNABLE IN HIS LAST YEAR OF ITS TERM, TO DRIVE THROUGH THE SECOND WAVE OF RESTRICTIONS ON INVERSION TRANSACTIONS. AFTER A SPIKE IN A LITTLE BIT OF A LULL, WE HAVE SEEN INCREASED INTEREST. LOOKING AT THE POSSIBILITY OF STRUCTURING THESE TRANSACTIONS IN THE CURRENT YEAR. THAT MAY BE A DRIVER AS WE GET INTO 2016. ANNA: WENDY POSSIBLE TO SHAPE A SHAREHOLDER PERCEPTION AROUND THIS LEVEL OF DEALMAKING? WE SEE THESE PEAKS AND PEOPLE START ASKING QUESTIONS ABOUT, DO THEY REALLY RETURN A VALUE TO SHAREHOLDERS? >> I THINK SHAREHOLDERS WILL

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