welcome to "street signs." i'm carolyn brock. >> here are your headlines hurricane irma swamps florida. it weakens to a category 1 but still cuts a vast trail of destruction as the storm moves north towards georgia. reinsurance stocks rally as they count the relief. it could top $65 billion. highs and lows for the drug

makers roche falls on the failure of a skin cancer drug while novartis rallies astrazeneca gets a boost. and leaks ahead of apple's product launch reveal the tech titan could be ready to unveil a phone that costs $1,000. good morning, everyone it's monday. how are you? did you have a good weekend? >> i did i was put to work in the garden by my mom. >> you were physically active? >> very, very physical very active. >> in a way if we take a look at markets today, they're seemingly very calm. it's because we didn't have the latest missile test coming out of north korea

that was factored into the markets because we saw that founding day in north korea over the week end are you surprised it didn't happen or do you think it's precisely because everyone was expecting it that they didn't do it >> i think it's going to ebb and flow it's going to be very, very episodic i think september is going to be one of volatility led by the geo politics and nobody really knows the end game on this one so i think it's just going to be yet another brink in the wall that the markets have to deal with. >> at this point in time, on this monday morning, we are ignoring that threat we are higher to the tune of 0.8% i want to show you the markets one by one the ftse 100 is up by 0.6% the cac 40 is rising north of 1% and the xetra dax is putting in a really respectable increase of 0.9% when it comes to the sectors,

there's one standout sector and that is the insurance sector let's have a look at that sector the insurance sector is up by 2% best day in almost five months insurers leading because irma has been downgraded to a category 1 storm the cost to the insurance sector is going to be lower than feared there were estimates of 65 to $100 billion now the estimated insured loss could be anywhere between 20 to $40 billion so that's pretty good news for some of these insurers munich is up by 4.5% swiss re and zurich up by 4.7% shares of roche calls to open 1.7% lower than the price we saw at the lower. this is the price into the trading day. that's after one of the pipeline drugs failed clinical trials

roche says it failed to deliver significant benefit for patients who had undergone surgery for skin cancer. however, they still see the drug to be used for early stage treatment. rival drug maker know vart t -- novartis has successfully trialed a drug for skin cancer the risk of melanoma returns at 53%. with novartis it's only 1/4 of 1% astrazeneca has a cancer drug. the trials delivered positive results. shares are up by 2.34% we'll bring you analysis with the drug makers from novasecta at 10:45 ct. i did get through all of the drug names without messing them

up. >> impeccable. >> i didn't even practice. >> there you go. >> there you go. >> seasoned professional, that's why. hurricane irma has been downgraded to a category 1 storm as 100 mile per hour winds batter florida irma made landfall dozens are dead as a result of the storm. this morning irma has been making its way up florida's gulf coast even though the storm has weakened, forecasters say irmarie mains very dangerous this as trees have been toppled and power lines have been damaged. tornadoes have been spotted in the southern part of florida according to reports nearly 4 million homes and businesses in florida have lost power with full restoration possibly weeks away. that's according to the utilities. most outages were reported in the southern and eastern parts of the state nbc's sarah dallof has been following hurricane irma's

destruction and filed this report from tampa. >> reporter: morning up the florida coast, hurricane irma has weakened but still dangerous. high winds and high storm surge leaving homes inundated by water, city streets transformed into rivers and millions without power. >> irma is deadly. it is massive. there will be damage to our system we're already seeing it. >> reporter: more than 100,000 filling emergency shelters across the state. >> we're trying to survive, helping one another in whatever way we can again, my grandkids are safe >> reporter: the phenomenon, sometimes called hurricane bulge, pulling water temporarily into the storm stranding two man na tees into sarasota miami escaped the eye of the storm but not damage part of the city submerged. >> whoa, i just got it.

>> reporter: it forced emergency rescuers off the road. >> my home is everything i own i was doing everything i could to save it and it just got out of hand. >> reporter: a monster storm not yet releasing its grip on the sunshine state this morning curfews remain in effect for tampa and st. petersburg, miami, and most of southern florida to keep people safe and off the roads and also amid reports of arrests for looting. in tampa i'm sarah dallof, nbc news >> meanwhile, flight cancellations remain high as the storm threatens to hit much of the u.s. southeast airlines have called off over 12,000 flights with more than 7,000 in florida alone that's according to flight aware. the number could rise as irma heads north towards atlanta, home of a delta airlines hub and the world's busiest airport. >> and miami's finance district

also underwater this morning this is the second largest financial hub in the u.s. with about 60 international banks and nearly 100 hedge funds based there. the biggest names of which include david tepper's appaloosa and eddie lambert's esl invest zblmts speaking exclusively with cnbc fed william dudley anticipated the effects on the u.s. consequences. >> the first consequence is it pushes down activity it disrupts commerce it will tend to push up prices initially. we saw in hurricane harvey big increase in gas prices but those effects tend to be pretty transitory the longer run effect of disasters is it lists economic activity you have to rebuild all of these things. >> for now joining us nitash i want to kick things off with

the impact on the oil and refining industry. in the wake of harvey we saw u.s. refines was at a seven-year low. some of that has been restored and recovered. what about the impact of irma. how destructive will it be for irma >> it's primarily impacted irma. irma has a lot less refining irma is not going to be as impactful as harvey, but we have seen back-to-back hurricanes and after irma comes jose. there is an impact but it won't be anywhere as near as harvey. >> we see wti has a spread wide to a two-year high last year speculators raised the year's crude loss once again in anticipation of that spread probably narrowing once again.

do you think that's too premature given the back log of weak refining could take longer than initially feared? >> yes i think there is a risk to refining not coming back as quickly. specifically as the production in the gulf of mexico. it's back on stream again. there's a lot of production coming out of the shell producing areas but the refining capacity is not quite there yet. looking at the pipe lines, the colonial pipeline is not fully operational again. it's very difficult to get oil from the gulf into the east coast. that's also going to cause problems i think there is going to be a back log of crude waiting to be refined. >> we have to appreciate the economic toll it's going to take as well on economic activity in fact, goldman came out with a note saying that the hit to demand could be in the region of 600,000 barrels a day in september. does that sound right? does that mean oil prices could remain depressed below $50 a barrel >> yes

i think the damage to demand is going to be there. initially we are going to see that spike up just as refining capacity comes back in and there is the backlog to work through, but thereafter wards we'll see weakness we're past the high demand season as well driving season is gone we already saw a trend of falling petroleum demand in the u.s. anyway. so we're going to just see a lot more weakness to come. >> i'll bring in the geo politics and north korea if i can add to that a softer dollar for that matter where does that put the up side targets for gold in the next 6 to 12 months >> so gold is trading at an elevated level just because of the geopolitical lists in absence of the geopolitical lists of north korea, we've seen gold trading around $12.60 by the end of this year and $12.45

at the end of the year that's the fed raising rates and by next year and the balance sheets and the timely process but geo politics matter. what we've seen in the past is when we see a shock, like for example the global branch crisis in 2008, the resignation of nixon, we saw gold prices rising 20%. what's going on in north korea could be another calculus for another increase in gold prices. >> what's the in flows been like into gold etf? we've seen gold in flows going higher into a safe haven do you think in flows will be sticky or do you think when it comes to ets and gold are still pretty fickle? >> they are very fluid so initially when these risks

were rising, we saw strong influence into gold etps, but more recently we're seeing out flows. that's on the basis of a profit. there are a number of investors building hedges into portfolios. >> nitesh, thank you very much director, commodity strategist at etf securities. we need to keep you up to date with other corporate news this morning ab foods trading higher. the growth was projected to fall sales up at the clothing unit grew 13% while the company expects margins to improve on the first path. e-mail the show. the address is "street signs"europe@cnbc.com. >> does anybody shop there

>> i'm not that age. >> i have some. >> they're pretty low maintenance like me. >> yeah? >> i just dribble over anyway. >> you're going to have to con tend with a lot of 13-year-old girls, you know, when you walk through. hey, maybe i'm just completely out of touch when it comes to primark shopping. >> i think you have to leave your options open. >> i think you do. >> guscci, gucci. >> not that. >> you can tweet us @cnbc. coming up on the show, we will be live from seoul and the lead up to the latest united nations vote on the north korean sanctions.

welcome back the united nations is due to vote on fresh north korean sanctions later today with south korea looking for an oil embargo to be included the rogue state has threatened retaliation saying the united states will pay its due price for spearheading the latest restrictions this as the country's leader, kim jong-un, held a party over the weekend to celebrate conducting his largest nuclear test a week ago. sherry kang joins us from seoul. sherry, what incite are you getting on the next step that the dprk could take? what sort of preparations are you seeing in seoul? >> reporter: well, it certainly looks like there was a push for this vote from the united states, but at the same time we saw a great deal of push back coming from countries like china and russia so the sense that i'm getting, while over the weekend as well as this morning, is that we

might get passed a diluted version of the u.n. security council resolution on north korea in their reaction to the latest nuclear test. we saw the draft resolution that was released by the united states this is rare, by the way, that did include items such as an oil embargo such as ban on north korean textiles as well as a labor over seas. some experts actually point out that oil embargo may not get a green light. but we do also have some north korean experts who say maybe this is washington's way to build some sort of a foundation so that it can move unilaterally to sanction those other countries that do business with north korea. in fact, that was the very point that was raised by fitch ratings this morning in their report talking about the potential spillover impact on the trading

relations between the united states and other countries that trade with north korea and that was in the wake of the latest north korea tensions by the way, i asked that very question to imf managing director, christine lagarde, as she was giving a press briefing this morning right here in seoul on her meetings with south korean officials as well as the president of south korea and she was rather optimistic about the resilience of their economy. listen to what she has to say. >> korea has transformed itself into a thriving economy. it has proven it is highly resilient to shocks, as we all know, including shocks from geopolitical tensions. i take away from my visit a good and strong impression of the korean economy its performance is of good

quality. its numbers show it. 3% growth. >> she seems to indirectly at least agree with the report that came out of fitch ratings saying that imf is also conducting a study on the trading relations between the united states with countries like vietnam, cambodia, and laos for potential negative impact coming from this latest round of north korea tensions. >> let's bring in tom blanch good to see you. an oil embargo, is that the next step is there any guarantee that is going to bring north korea to the negotiating table? >> well, in the world of north korean analysis, i'm afraid there are no guarantees of any kind however, i mean, analysts over many years have said an oil embargo or some restriction on

the flow of oil into north korea are some things that could seriously threaten the regime's hold that's stopping potentially strikes at the heart of it whether or not it's a complete embargo or whether or not it's completely effective, that's one of the things we have to wait and see. >> china is going to have to lead this? >> china would have to be on board if that was going to happen as you heard before, there's really no guarantee that that's the case is it genuinely in chinese or even russia's interest to get them to the brink to get them to come to the program? most annual liss, including myself, would say no the question is could something more limited be done or is that still a no go area personally my opinion is the latter is the angle that they would go down. it's not impossible that they

would but in general their interests don't lie down in that region. >> you said the current sanctions simply are inefficient to solve this crisis what would a solution bring. they want to give their approval to oil sanctions >> i suppose what i was trying to get at was a sanction based approach you can't economically coerce north korea to the table what could you do to their economy that hasn't already been done it was quite instructive that vladimir putin said, we will eat grass. they will eat grass if that's what it takes to develop a nuclear weapon what he referred to is the leaders of pakistan. look, no matter what you pressure us with, we will press on in our part that's where china and russia

see north korea coming in. pressures won't be the answer. >> thanks. let me just pick up on this u.s. strategy at maximum pressure then through military, diplomatic and economic channels is it working or is an entirely new model needed >> i think it's too soon to say whether it's genuinely working there's no sense that north korea is close to coming back to the negotiating table. when it got there it is barking up its limited consumption on the other side that's not to say that military messaging can't be helpful in racheting up the tension, but that messaging has to be credible and i think the problem with some of the messages we've seen coming out of the u.s. administration in the past weeks and months is some of the messages haven't been credible. >> tom, let's be frank about this this do you think this conflict can

be solved through diplomatic means or military threats or do you think this is something that will blow over in a couple of months, it will fizzle out once again and will be back to status quo and will simply accept -- regressions but maybe on a smaller scale? >> that's a really interesting question i mean, i think that the only solution to the issue of the north korea/u.s. issue really is almost a demographic one this is going to be a problem decade in the solving. but this specific crisis is something you can imagine being solved by what you say we've had a pause over the weekend and will it return to diplomacy. i hope things are going on behind the scenes. there are channels that would exist to allow that to happen. maybe this could be the next route that the u.s. and others take to pursue the problem, but in the longer term, you know, leaving aside crisis management, what we're really looking at here is trying to contain the

risks that north korea posed while trying to promote, yes, internal gradual change. >> thank you so much for that. director of proliferation nuclear policy at rusey. is trump going to deliver on tax reform what's going to happen to north korea? we'll put these questions to guests at tomorrow's conference. stay tuned for that. we have all of the coverage. stay tuned on cnbc chances are, the last time you got a home loan,

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welcome to "street signs." >> these are your headlines. hurricane irma swamps florida. weakens to a category 1 storm. still cuts a vast trail of destruction as the storm moves north towards georgia. >> reinsurance stocks rally as the official counts of the storm made estimates the overall insured costs could top $65 billion. highs and lows for the drug makers roche fall on the failure of a skin cancer drug while

novartis has the best tests ever and astrazeneca has a boost for a possible cancer drug. weeks ahead of apple's product launch show the tech titan could be preparing to unveil a limited addition iphone x that could cost as much as $1,000 let's take a look at these european markets it does look as though it is a very large risk tone to equities today. reinsurance and the insurance companies are doing very well leading the gainers and i think overall, karen -- carolyn, pardon me, as we've been discussing, the geo politics seem to have abated in terms of north korea and the risk there,

but it is going to be a problem and that means volatility. >> relief for the time being three people in the market were expecting that we were going to have a missile test from north korea over the week end. instead, we had a celebration of the folks who did the nuclear test last week. >> very uneasy time i think. >> it is. >> shall we have a look at those. reinsurers in the wake of harvey and irma broadly they are up on expectations that the costs and gains may not be as bad as initially. if we can move onto the fx markets as well. the dollar is catching a bid a bit of a reprieval for the green back 108.46 is where we are standing against the japanese currency.

the japanese yen is taking a break before the japanese equities markets don't have a great deal of data this week. >> not at all. >> do have the cpi and retail sales state side. >> yeah. >> at the tail end of this week. that should give us some clue in terms of the way forward for the fab and webber december rate hike is up on the cards. u.s. consumers expecting a flattish open for the major indices. as i said, it's all about the insurance companies. very active and destructive. it's in the news as well. >> yes, i'm not a meteorologist, but it seems as though jose might not be as damaging as irma and harvey our top story, returning to

that, hurricane irma has been downgraded to category 1 storm 85-mile-an-hour winds. dozens are dead as a result of the storm. president donald trump has declared florida a disaster. he plans to visit florida and discuss the recovery effort with nbc white house correspondent chris welker take a listen. >> reporter: mr. president, how's the irmarie spons been going so far >> i think it's going well. >> reporter: president trump trying reassure people about the recovery >> i think we're well coordinated, as well as we possibly can be. we have great people. >> reporter: the trump administration is throwing the full weight of its resources behind irma. some 13,000 federal workers already committed, nearly 2,000 pre-positioned throughout the affected area. supplies, more than 7 million

meals, generators, tents, medical equipment. the president briefed this morning. what concerns him most >> the power of the hurricane. i think the hard part is now beginning. we'll see what happens >> reporter: mr. trump vowing to visit florida very soon and saying right now he's focused on saving lives kristin welker, nbc news, the white house. >> meantime, north korea's lack of action over the weekend has seen gold slide and it comes after the precious metal saw the biggest in flows over the past few weeks. as tensions on the korean peninsula saw investors flock to the safe haven jamala joins us now for more and how sustained do you think this move is going to be because as i've been saying, it's going to be very episodic we're going to see volatility in a lot of these asset classes the sense i'm getting is that it is really about capital preservation >> so i think when it comes to

gold itself you can break it down to multiple factors one of them is obviously the geopolitical back drop gold has been a safe haven flow if you want similar to fixed income, but that only tells you a little bit of the story. it will not tell you the complete picture i think the bigger thing going on is actually twofold first, the dollar weakness so the dollar index, dxy, clearly benefits the commodities complex and more specifically gold the other thing is interest rates in the u.s. remain at new levels real yields and gold levels have a high correlation this correlation is continuing to hold up so i think the bigger risk is less so geopolitical at this point but rather when we see a turn in the fixed income cycle fixed income flows specifically similar to the way gold saw a large in flow, we saw a number into government funds and

treasury funds the most flows going into that asset class since the brexit time again, could be a function of geopolitical also questions about whether the fed is credible, whether there is an inflation target whether this inflationary climate is here to stay with us and also function of how much liquidity the central bank community have actually injected into the system. that liquidity needs to find a home it is going as a fixed income and investment trade. >> seems like a risky strategy they're anticipating tightening from the fed, reduction of the balance sheet. last week we heard that the ecb is probably going to announce tapering sometime in october probably do you think these are short-term flows or do you think there's a lot of conviction behind this? >> i think a lot of stickiness with the fixed income flows have come in. if you look at the past two years or so, more than $300 billion have gone into the asset

class. that's not going to be taken out overnight. it's going to take months if not years for the flows to come out again but i think what we will see first is that on a week-to-week basis some of the flows will start subsiding and then at some point you should have a larger effect but that's not going to happen until we get some scare possibly on the back of quantitative tightening again, don't know when the fed is going to really start doing that. >> positioning in the bond market and the u.s. dollar at least is very, very short, isn't it does that suggest that if we do see some positive data this week, either on the cpi or retail sales, dollar moves higher on the back of that as the market is more seriously about more tightening and a rate hike in december >> to rephrase what you just said, i would say there is a lot of pessimism priced into the u.s. markets both on the currency side and fixed income from that perspective, yeah, if we get a positive surprise on

the data and on fiscal measures, so we actually get a little bit more clarity out of the trump administration about their policy initiatives, maybe on tax reform, infrastructure, all of those things could be positive for the currency and negative for u.s. treasury. so i think if you -- if you look at some of the research that's coming out of the streets the last couple of days, my feeling is that people are beginning to turn a little bit bearish on fixed income that 2%-ish would be the cap. >> the market seems to be getting a little bit more optimistic thank you very much, indeed. all right. let's move on. crude oil prices are trading higher after saudi arabia suggested there is a possibility of extending the current supply. the world's largest oil producer said it discussed the deal with venezuela and kazakhstan

the current pact is supposed to end in march reports that riyadh was revising a section of the reforms have sparked fears that the whole overhaul might be in danger. there have also been concerns of the kingdom's plans to sell saudi a ram could he it remains on track. let's turn to china. china has considered phasing out fossil fuel vehicles however, beijing failed to cite a time china is the world's largest auto market. earlier this year france and brittain announced plans to ban the sale of combustion auto moebls by 2040 china is working to scrap a

reserve requirement rule on currency trades making it cheaper for investors to buy dollars while selling the yuan the yuan trading at a 21 month high it's risen 7% gheagainst the gr back this year that probably went against what the pboc said. they said for much of the past year and this year the bboc has been trying to rain in the yuan. now they're probably surprised by the strength of it this year. that's why the measures taken over the weekend probably make some sense. >> it's a very, very delicate balancing act that the pboc and authorities in beijing are having to deal with at the moment if it's too weak, then it's open season on beijing and the chinese by the u.s. administration, which is incredibly hawkish and increasingly hawkish in terms of

tight policy in regard to china and currency policy. they're open up to policies of currency manipulation. if it's too weeak if it's too strong, stability is the watch word here. the politics are going to remain a feature of this relationship in october twice a year the u.s. treasury decides or judges whether china is a currency manipulator. >> last time it didn't, it retrained from that. >> exactly. >> it was very significant at that time donald trump was probably loepg for china to become a good friend in the aggressions with north korea didn't turn out that way i guess mr. trump's patience is running thin. >> that plays a part the chinese currency is stronger chinese growth prospects are strong as well that gives beijing some cover.

>> now this. >> right let's move on. the united nations is set to vote on fresh new north korean sanctions. while in manila the asean nations have been meeting to discuss economic trades. >> reporter: good morning, the asean economic ministers meeting wrapped up a short while ago the conclusion was a bit anti-climatic after pushing to try to get the china-driven rcep free trade plan across the line by november, it looks like it's not going to happen. it's going to come up a few yards short. the philippine trade secretary, ramon lopez. >> even some indication on recalibrated, more realistic landing scones or objectives which was deemed important if we are ready to move forward the discussion on rcep

so essentially we have agreed to adopt a set of key elements that will lead to a substantial conclusion by the end of the year >> reporter: so substantial completion of rcep negotiations by the end of the year used repeatedly in the communique at that press conference. a bit of a disappointment there, but the larger story overhanging these meetings here in manila and also proving to be a bit of a distraction, of course the north korean nuclear crisis. these talks began four days ago, friday, and thankfully the weekend passed peacefully without north korea firing off another missile or conducting another nuclear test saturday, september 9th, was the key day there. have been a lot of worries that north korea could do zwlaus to coincide with the anniversary of the pprk thankfully nothing happened. the attention now turns to

monday afternoon in new york the security council voting on what are likely to be the toughest sanctions yet on north korea cutting off oil supplies as well as exports of textiles, one of the main ways it continues to earnhardt currency. the funding regime and their weapons program there. now australia, which is not a member of the current five, has been very vocal about tougher sanctions. here's australia's senior trade administrator, steve ciobo. >> we need to send a strong message and i think the world has to demonstrate consistently that we will not tolerate this kind of provocative and rogue behavior from north korea. that is fundamentally australia's message. if we can use trade sanctions, investment sanctions, travel sanctions, et cetera, to good effect to produce hopefully a more compliant north korea, then that would be a good outcome.

>> reporter: australian trade administrator steve ciobo there. it gets a little muddy despite pushing for tougher sanctions, no conflict on negotiated peaceful resolutions with dialogue. we've had the prime minister malcolm turnbaugh saying that they are joined at the hip suggesting that australia may be willing to join nicole ligs should u.s. president donald trump opt for military action. >> now we're going to go for a quick break, but still coming up in the show, trials and tribulations, roche has a failed drug study more on that and other news after this short break do stick around. your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain

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welcome back to the show details of apple's tenth anniversary edition of the iphone have been leaked ahead of the company's highly anticipated launc launch two trade websites have two features of the phones, facial recognition and they have revealed the name of the new model, iphone x. apple is launching the new device which is expected to be priced at around $1,000 at the cupertino headquarters kind of sounds like a tesla. >> they're teasing everyone. in the meantime, astrazeneca shares are pushing higher after the company reported positive results for trials for two lung cancer drugs they say two drugs significantly extended the time for their patients living. it's a boost after the mystic

trial which wiped 10 billion pounds off astrazeneca shares in july. shares in the swiss pharmaceutical firm roche are up this morning after one of the pipeline drugs failed a clinical trials roche said the drug for skin cancer failed trials they see scope for the drug to be used for early stage treatments >> rival drug maker novartis has successfully tried a drug cocktail against skin cancer the drugs worked 53% of the time for the return of skin cancer. shares in lundbeck fall to the bottom of the prospect now let's discuss all this

pharma news this morning with john let's kick things off with roche. pretty bad news that the drug failed to reach the end point. potential $2 billion in sales that might have to be priced out of this scenario how damaging is this for the sales forecasts and the prospects for the company? >> i think analysts are going to have to have another look at the sales forecast this is the second from roche. when the data trial came back i remember thinking you get s setbacks and the notable thing is this is the second one. they have a natural hedge with the genetex side this is another blow and i think, you know, people start to question that ability of that part of the organization to deliver quality development. >> investors would be a lot more sa

sanguine if they knew that they were going to continue to innovate it doesn't seem like there's a real strategy in place at this point. at the same time they have three of their key drugs competing with many of the bios similar for patent protection. how difficult is the future going to be if they don't have a viable strategy? >> i think they have a viable strategy they're continuing to innovate and they're investing a lot in r&d. the biosimilar is a threat for them and they have to work harder they just have to keep plowing ahead with that innovation, otherwise, the whole thing falls. >> it's not all bad news though, is it? because roche has got several approval wins including -- approvals, excuse my miss pronunciation and the hemophilia

medication so broadly when you put all of this together, what does it mean for revenue? is there still going to be a hit because of these trial failures? >> i think each one is going to damage the forecast, but i think the bigger picture is that there's an enormous machine going on to innovate people, i would argue, don't bet against roche. they have a lot of history on the genetech side, the double power of r&d of other big pharmas. yes, they have a set back, that's the nature of pharmaceuticals. it's down a little but not a lot. >> move on and talk about astrazeneca. the shares are pushing back higher the last time we had a lung cancer trial for astrazeneca, that was bad news. down double digits back in july. you were on the show to talk about that put that into perspective for us how significant is this lung

cancer trial when compared to the others. >> i think this is significant because it's the same combination that failed. it's a justification that that molecule has something in it it's also i think interesting that it's in much narrower indication, which is fine. i think that's going to be the name of the game smaller indications and stage three, really late stage cancers. i think it's fantastic that they've managed to do this in a more fish indication it's a smaller market. that's the way the market is going in smaller indications and diagnostics. >> it also means peak sales are going to be a lot lower. >> yes. >> it simply can't replace the mystic >> no, it can't replace it we're still waiting for more results from mystic. you would hope that would come out good >> we're still waiting for that second readout from the mystic trial. that could change things up again. john, as always, thank you so much for that perspective.

before we wrap up the show, quick look at u.s. futures and on friday the dow eking out a very modest gain held by 4% rise in shares of the insurer company travelers. dow jones now extending that gain in triple digits. in fact, 152 the s&p 100 up by 30 and the nasdaq up by 48% what boosted european shares is the absence of any european aggression of north korea and also that irma has been downgraded. >> can it be sustained that's the big question. that's it from us. "worldwide exchange" is up next. >> see you bye-bye.

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breaking news. hurricane irma downgraded to a category 1 storm as it pushes into northern florida. we have the latest of the storm track straight ahead. millions without power at this hour as irma leaves a trail of destruction up and down the florida coast. we are live on the ground for you with the latest. dramatic pictures into the cnbc newsroom as irma barrels into the florida coast a special edition of "worldwide exchange" begins now good morning and welcome