sanofi is appointing a ceo from novartis them and giving them a 4% boost. others down almost 4%. the open, "surveillance" is up next. at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond. francine: room to maneuver, the pboc governor tells bloomberg that china has more tools to fight. and vice president mike pence warns mexico tariffs are coming, talks continue today. and the road to recovery, crude extends a rally. we have been speaking to industry leaders in st. petersburg. good morning, everyone. welcome to "bloomberg surveillance."

value, how do you pay for that and do it in such a way to fund innovation like bluebird and what novartis how do you make sure that the system can digest it? the challenge we have, most medicines which can go into the millions, this is the runaway train part, the annual price adds up year over year with the life of those patients in many cases. that turns into a very big number and this actually helps that we have a one-time treatment, but we're actually going to plan to charge over five years, cap it so we define it up front as five years. spread it equally over the five years and willing to say, 80% of them, meaning payments 2, 3, 4 and 5 only get paid if the drug works. so we're trying to find a balance in here saying this is an important innovation to fund. at the same time, it has to make sense and sensible for the system. >> nick, one of the, i guess you could call it criticisms or as i understand it, people say, well, wait a minute, this is just a way for you guys to have a free option on does this work instead of having to prove, really, it really does work over this longer period

novartis is one of those.see the swift stock, as you will have difficulty trading it outside of zurich in the near future. holdings,e roche dragging down the stoxx 600. you see royal dutch shell as oil prices come down. the: novartis and roche, biggest losers by points. interesting the contest of that swiss story. european markets, opening a bit cautiously today. this afternoon mixed session in asia as traders await the weekend's meeting between trump and xi. >> anymore tariffs? >> no, nothing. anna: president trump saying he hasn't promised to hold off on new china tariffs. we will wait to see what the meeting delivers. we have the head of flow solutions at societe generale. great to have you with us. i have a chart which illustrates a point you were making today, the weakness in some chinese data points we have seen. this picks up on new lows and the weakness there. is this something you think will mean china gives ground at this meeting over the weekend? >> it will clearly be a factor in the marketing power

. >> by the way, i find that what is working, novartis why is novartis working?hey have got the perfect combination of decent drugs and fabulous future drugs. that's what people want. what they don't want is something like bristol-myers, which is me too, and so many different categories, including revlimid people worried about revlimid, comes off patent, which is what you get when you get celgene novartis the winner the whole way. they have a vision, the vision is traced out by having both the future and the present pfizer people feel like it doesn't have the present and needs the future lilly has okay, merck has one drug this is an area that is fraught, lilly had a setback with diabetes last week because -- >> it is interesting to see how large pharma companies are relying on small, no sales companies for their science. >> right. >> instead of having it -- they spent plenty of money on their own. there is sotheby's, opening up enormously and i'm hitting myself for not -- >> oh, stop it don't beat yourself up. >> they have been working on this sale for some time

hudson has been named as novartis' next ceo.n has been a part of the pharmaceuticals unit since 2016. and that is your latest bloomberg business flash. guy: still ahead, we are live in arkansas for walmart's annual gathering, and we will speak to this retail giant. a quick look at the european markets. we are looking at positive markets. i wonder if this is a reaction to the negative payroll data? central banks will be delivering on the upside. we are seeing bones trading where they have never traded .efore this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. guy: and from london, i'm guy johnson. this is "bloomberg markets." it was -- let's go to kailey leinz. trump's tradeent policies are weighing on the u.s. economy. payroll only rose to 75,000. the trump administration is pressuring mexico to make a deal to avoid tariffs. saysesident mike pence that they will oppose 5% tariffs on mexican goods next week. president trump has threatened to oppose tariffs to make mexico do something about immigration. the u.s. has

by the fda in the past couple weeks from a swiss particle pseudo-gold -- pharmaceutical company, novartisreat spinal muscular atrophy. that is the goal overtime. there are those long-term uncertainties that still need to be resolved. jason: right. let's talk about the costs. as you say, multimillions of dollars. what is the cost so much? some question. james: if you consider the cost to treat some of these conditions, like hemophilia for instance, the standard treatments can cost hundreds of thousands of dollars a year, upwards of $1 million per year. and there are very expensive to develop over a long period of time. the pharmaceutical companies are trying to recoup investments and charge what the market will bear, but they obviously are under a great deal of pressure to price these that responsible levels. the drug price controversy in the u.s. is well underway and of this will only add to the debate. carol: also in the "sooner than you think" issue, using a product from china and lessons from india. jason: it is all about getting africans internet connections tailored to their needs on

was a product just approved by the fda in the past couple weeks from swiss pharmaceutical company novartiseat spinal muscular atrophy. that is the goal overtime. -- over time, but there are those long-term uncertainties that still need to be resolved. jason: right. let's talk about the costs. as you say, multimillions of dollars. why does it cost so much? james: if you consider the cost to treat some of these conditions, like hemophilia for instance, the standard treatments can cost hundreds of thousands of dollars a year, upwards of $1 million per year. and there are very expensive to develop over a long period of time. the pharmaceutical companies are trying to recoup investments and charge what the market will bear, but they obviously are under a great deal of pressure to price these that responsible levels. the drug price controversy in the u.s. is well underway and of -- and this will only add to the debate. carol: also in the "sooner than you think" issue, using a product from china and lessons from india. jason: it is all about getting africans internet connections tailored to their

hudson is moving to the french drug maker from novartis where he has been been ceo of the pharmaceuticals business from 2016 onwards >>> and shifting back to the banking space, deutsche bank's investment banking boss is among 70 current and former employees under scrutiny in relation to a tax stripping scheme according to multiple reports. german prosecutors have extended their investigation into the so-called transactions which allow two parties to claim with dividends on the same shares a deutsche bank statement confirmed the probe had been extended but referred only to, quote, further former and current employees and management board members. >>> and in the geopolitical space, the u.s. and mexico showed signs of progress in border security talks ahead of trump's monday deadline to impose a 5% tariff on all mexican imports. negotiations are set to continue today after mexico proposed putting troops along their southern border. mike pence reaffirmed the monday deadline, but sounded an optimistic tone of the prospect of a deal. >> we're encouraged that, frankly, the mexican delegation bro

danish giant down sharp sharp after it resized its outlook and sanofi approaching an executive from novartis is one of several to leave over the past one year after an ipo lull, we're starting to see more companies across europe go public. there's iceland's biggest company jumping on its first day of trade in amsterdam. it's a supplier of equipment used by meat the and food processing industry across europe that stock down about 3% in amsterdam. foreign policy front, russia criticizing washington's freemt of huawei and its attempt to block the buildout of the north stream gas pipeline to europe. putin saying quote states that previously promoted the principles of free trade and fair and transparent competition have started speaking the language of trade wars we'll have to see what's response is to that. take a look at how staocks are i june s&p 500 outperforming stocks in china and europe up about 4.5%. jon, back to you >> thank you to sue now for a news update >> hello, everyone here's what's happening. the u.s. treasury is imposing new sanctions against iran this time targeting iran's larg

the stoxx 600, one of the biggest stocks on the index, novartis. rstead up almost 6% there.ising as well as louis vuitton. take a look at the losers. british american tobacco. down 1.5%. defensive play. hsbc is down as well as ericsson. volkswagen. i do not see daimler on there just yet. what happens to the stock when it opens? not only did they release their third profit warning in the year , they did it kind of stealthily , on a sunday night when few people are in the office. interesting move from the press team on daimler's new profit warning. european markets opening mixed after a similar session in asian markets. is acomes as there high-stakes meeting between president trump and president xi. bob, what do you expect from this meeting? do you expect this to be at? will there be a deal? is this argentina part two? anna: is this going to be our ginny -- argentina part two? n buenos ng import u aires went well. i think the probability is virtually zero. i say that because the trade talks stalled 2-3 months ago and little contact has taken place recently. do not expect a tra

. >> i like novartis looking for a bit of a place to hide, but numbers are a little messy from outcomen, but outcome spin is behind them, 18 pe, i think they have a strong pipeline good technology. >> good to have you here as well today. >> there's no premium in baba. >> walmart >> that stock is ripping up 1.5% again today. great weekend. "the exchange" starts now. >>> thank you, scott hi, everybody. here's what's ahead of us. tensions escalate, ten minutes from striking iran when the president called it off. we have the latest from washington, and why the market seems to be shrugging it off. >>> and a story that's never been told before how the biggest deal in trump's pregnancy involving china hasn't delivered, what it can tell us about current trade talks. >>> travel industry on edge and deaths in the dominican republic continue the industry is starting to see impact we begin with the markets. dom chu has the numbers. >> not on edge for

you see novartis, hsbc, allianz, by verywn, but not much.vestors putting conviction traded down. as we pointed out, that could change. lately in this sessions, -- these sessions, we have been seeing the flip halfway through the trading day. yesterday we started very much in the red, even though we knew powell was going to speak. we turned out at the end of the day up very high. anna: one of the other interesting stories, the biggest fallers on the stoxx 600 is the largest investor as of may 10, according to bloomberg data, the biggest investor in one of nielsen woodford's trusts, one of his funds. we keep watching that story. let's step away from the individual movers. european markets are opening generally pretty flat. this is the federal reserve chair, jerome powell -- as the federal reserve chair, jerome powell, expressed possibility of a rate cut. here's what he had to say. . >> two thirds of all the recessions since world war ii have been caused by some fed policy. some fed policy either being too slow or too fast. wevery hard to say wh

we're seeing $60 for brent, $50 for wti, the novartis, roche, the biggest stocks weighing on the stoxxan markets opening lower as you highlighted, 545. stoxx 600 moving to the downside as the u.s. moves against mexico and india. china retaliates. closing us, stephen isaacs -- joining us, stephen isaacs. good to have you with us. we've seen many fronts on this tariff trade war. it's a beautiful word, according to president trump. where do you see this heading? are you reassured by anything happening over the weekend or does it all add to the wall of worry? stephen: the mexico story is a distraction. i am reassured that the language coming out of mexico, they will be able to find a way or wanted to find a way. there's an issue the president identified, which is migration. and i think perhaps there is some common ground there. anna: the interconnected nature of the economies. the u.s. is a standalone economy. but interconnected with anybody, it's its neighbors. stephen: and to pull apart the free trade arrangements, big in would be a much bigger escalation to the trade war. i think trump

drugs being affordable in the future and we cannot ignore a recent gene to be approved recently from novartiss disorder in infants and children. it came up with a list price of $2.1 billion or so, most expensive drug now on the market. when were thinking about the future and now we have a gene therapy that is more than $2 million and a list price, how can we as a society afford that kind of thing when more gene therapies are on the horizon for presumably bigger -- without wrecking our financials in summary. >> the cost of goods for these products contain starters of thousands of dollars -- >> but 2.1 million speedy right, not to think it but they are not our mystical tight margins. one question, derailed is it's it's going to cost a lot of money to develop a cure, one-time administration that is a cure for disease that treat a very small population. you have to recoup all the cost of development at all incentives to innovate in one-time administration, the old pharmaceutical model was an annuity. people would be undercut their entire life. you have situations or companies are trying to recoup

affordable in the future and we cannot ignore a recent gene to -- therapy that was approved recently from novartiseats a rare spinal disorder in infants and children. it came out with a list price of $2.1 million or so, the most expensive drug now on the market. when we are thinking about the future, and now we have a gene therapy that is more than $2 million as a list price, how can we as a society afford that kind of thing when more gene therapies are on the horizon for presumably bigger disease dates than this one without wrecking our financials in some way? dr. gottlieb: the cost of goods for these products contain isn't trivial. it is for starters thousands of dollars -- bob: but 2.1 million speedy right, not to think it but they are not our mystical tight margins. dr. gottlieb: it's going to cost a lot of money to develop a cure, one-time administration that is a cure for disease that treat a very small population. you have to recoup all the cost of development and the incentives to innovate in one-time administration, the old pharmaceutical model was an annuity. people would be on a drug th

that i've heard, sara, is well they need scale, if you want to compete with the big guns, namely novartisj&j, pfizer, merck, and compete for some of the smaller companies, you need that scale. and this they hope gives it to them but somebody i spoke to, very familiar with this area, and even thought about this deal in the past said this may whab is the best of a bunch of mediocre alternatives for abbvie >> it is a way to halt the exit of four year slide in the stock since pfizer deal collapsed in 2016 and for abbvie it diversifies the revenue. a few things to talk about number one, the tax deal, this is a victory for trump. >> freedredomiciling in the u.s. pfizer wanted to use it to invert that fell apart. but they will redomicile in the united states because tax regime is markedly different now. it will have the effect of increasing in some fashion and, you know, everybody likes to make sure they know that because who knows, might get a favorable tweet from the president. >> there is also some serious -- the antitrust authorities started looking into these megadeals, right, in -- >> very