jonathan: novartis earnings and viewers will be tanking when you look at the novartis numbers and talkinghere, is a happening? sam fazeli: we do not talk about the discontinued operations. they sold a couple of business units or merged one and sold want to glaxo and to the animal health business. and those discontinued businesses had a negative operating result this particular quarter. which i think, all day they split -- although they split, parts of glaxo having the issues they had which is why novartis sold to them. difficult to make money. hopefully, glaxo can merge the immunization into there's. and the consumer business should hopefully be better. a better presence. jonathan: other business, the eye unit. what is happening? sam fazeli: what will seen before. a number of business lies in that unit. a demographic unit because as we age, we require i care, -- eye care in a variety of forms. lenses, which have been around for a number years, has been a problem area before and has come back. if this particular quarter, their operating margin fell by 5% to 31%. the point is i am worried i

novartis' sales were eroded. the explosion that destroyed one of his company's rockets was probably caused by a failure of a strut inside an oxygen tank. the company may have become complacent because it has eight times more staff than when it laste experienced a failure. commodity prices slide to the lowest price in 13 years. that is weaker than after the 2008 banking meltdown and the eurozone crisis of 2012. the strengthening u.s. economy is pushing the fed toward boosting interest rates for the first time since 2006. let's get a check on the markets. it is jonathan ferro. jonathan: manus cranny, thank you very much. we are on a nine-day winning streak. if we make it 10, that is the longest winning streak since 2006. the ftse 100 is unchanged. we are dead flat on the periphery in spain and italy. what is interesting is that it is not the miners who are the biggest fallers today, it is health care. there is a dollars story there. the commodity route, though, has been the dominant theme. gold is coming off a 2010

>> caller: i have a two-part question on novartis. the earnings came out this morning and the earnings were dunn 7%. sales were down 5% but in a quote, unquote, constant currency basis earnings were actually up 7% and sales were up 6%. not too shabby. so of course the stock sells off 2% to 3%. the question is what has to happen to let us get back to picking stocks without pickworrying about the strong dollar and the earnings growth, sales momentum and the second part of the question is the dollar so strong that it's negatively impacting foreign companies like novartis or is this still a residual from the swiss government depegging their currency? >> i think that you explained it better than i can. i think a lot of it is the swiss impact on the currency and but i'll tell you what's going on with novartis. people are figuring out how fast it's growing against pharma and it's not growing as fast as bristol-myers which people are back in love with and it's growing more like a j&j which people has -- i think j&j may like that growth but it

novartis is a unique company in the space. we have not only an innovative pharmaceutical business that introduces new oncology drugs and break through therapies but we also have an important generic's business because we believe while we are fundamentally pro patent because that's how medical science advances but we believe when the patents expire it's our responsibility to offer low cost versions through our generic divisions and we were able to laumplg launch a new generic drug for multiple sclerosis. we were able to develop this drug and get it approved through the fda and that's helping our generic's division. it had margin growth of 260 basis points partly because of the launch of this new ms drug helping to lowest the total cost. >> you think it's possible it does $5 billion in global revenues within what five years? >> well we've said that it should cross the $5 billion mark. we haven't given really a time frame because we said that's probably going to be the peak sales but the important thing is there's two type of chr

novartis saw its shares after reporting a decline in profits.s was drug giant hit by the effects of a strong u.s. dollar yet the ceo says he's optimistic about the company's pipeline. >> when you look at our results, the best part about the quarter was the innovation we just got approval to launch our new heart failure drug. this is a drug that's proven to reduce cardiovascular death by 40%. we think this is going to be a multimillion dollar drug for the company. >> shares slipped to $103.71. >>> baker hughes swung to a loss in its most recent quarter. the oil fueled revenue company saying it expects tumbling oil prices will persist for the rest of the year. sales weren't as weak as expected. shares rose 2% to $6.64. >>> an increase in trading activity helped post an increase in profit. shares flipped on this down day. harley-davidson also reporting mixed quarterlies, the strong greenback weighed on its international sales. the cycle maker refused to keep pace with rival discounts. shares revved up a little bit about 5% to 57.67. lifelong shares

we read about a deal with novartis leslie.pricing is going to come under pressure with the consolidation of the health insurance industry. is that something you agree with? severin: talking for roche specifically we have not seen much of an impact. i think at the end of the day it all depends on how much value do you provide for patients with your specific medicines. that is what counts. if you are truly differentiated comic if you prolong --, if you prolong life the society will continue to buy into this situation. i believe as long as you deliver innovation we will remain in the strong negotiation position as it comes to premium prices. anna: does that apply to the boost of share prices as well? the stock has gained 3.5% as well. that to behind some of the other pharma peers. what can you do to light the fire underneath the stock? severin: i have no doubt that the long-term success of our company depends on our ability to constantly rejuvenate our portfolio, to drive innovation to improve care. that is what we are focusing o

olivia: stocks are moving lower after a disappointing earnings report from ibm and novartis. attention apparently turning away from the macros reset as grief and what is happening in and what is greece happening in china. analysts forecast of 5.3% drop in overall profits across the board. the nasdaq inching up a little bit higher but clearly the dow back below 18,000. erik: that would be largely because of ibm. disastrous order for ibm. stocks getting hammered. 13 straight quarters of disappointment. bigger ibm being a much drag on the doubt. -- dow. erik: another tough quarter for ibm. 13 straight revenue drop. specifically we are talking about declines in revenue is declining, a lot harder to make more money. trying to overhaul ibm to be a seller of computing technology and data analytics, and that is working, but only off of a small base. the ceo has cut costs. the decline in services and software are the legacy business, and that is what is hurting the company. a shakeup at toshiba. several top executives are out and they will have to restate earnings for six years. annou

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. >> novartis shares off by 2.25%. this is partly due to the stronger u.s. dollar. they're saying that fx volatility caused it to take a hard look at its cost space around the world but speaking to cnbc earlier the ceo denied it would move headquaters away from switzerland. >> we're a swiss based company and there's a lot of good reasons to be in switzerland so we'll weather the currencies like the others around the world reporting in u.s. dollars. you have to look at our results on a constant currency basis. our sales were up 6%. our operating currency was up 6% and we were able to show margin improvement of about 30 basis points. >> now the swiss rival upgraded it's outlook for 2015 core earnings despite missing second quarter sales expectations. they cited progress in it's lung blood pressure drugs for the move. we asked if the firm is guarenteed to hit guidance. >> guidance is always a guidance. it's what we expect. you never know what happens but it's doing very well. we have launch in spain. we have launch in japan. the safety of the company is excellent and f

the medicine that we have today that a lot of companies have invested in including note and file novartis. >> despite the fact that there has been resistance to the drugs which have made them a little less effective. why after a half a century of major malarial defense why has it been so hard to fight this disease? >> it's such an excellent question. and the reality is we don't really know. what we do know is that malaria is the oldest deadliest disease in human history. it's essentially been around since humans have been recording history and some countries were able to eradicate it using ddt for instance, the united states eradicated it. the centers for disease control was founded in atlanta to eradicate malaria in the united states. there are times in the history that we have come close to eradicate the disease but if we take our foot off the gas malaria will come back. it is a really, really zedly disease that is able to adapt. what gets us out of bed in the morning is this generation has the opportunity to end the disease. we can stop malaria and eradicate it from the planet and ensu

>> the trend has been pretty dramatic since novartis moved to cambridge.asen, many of the have come into cambridge to effectively recruit and conduct research. pfizer is a good example. they moved literally four miles from their own facility in cambridgeport into the heart of kendall square and m.i.t. is building to building for them today. they are similar circumstances. betty: 15 years for a company with his track record. you would have no problem leasing them for 15 years? >> it's a developers and owners dream. betty: would you feel the same with a tech company? >> for sure, we have a long-term lease, 15 years with uber. i think it's the same kind of situation. although it's private, it has a big valuation but we believe it's a fundamental disruptive technology to urban transportation. we feel good about that. betty: even though they are getting a tax on all fronts? they are trying to limit the number of ubers on the road. when you have a disruptive technology that changes the face of how we do things, less traffic, less fuel being used, more efficient,

multiple sclerosis drug sales missed estimate as it sees more competition from a competing drug from novartisgreed to be bought anthem, but there are antitrust concerns, and abbve disappointed itsales, particularly arthritis medication, emeritus. -- human era. amazon has been paring gains affidavit of -- purported -- reported a surprise profit. the stock is trading at a record. shares of starbucks are also at a record after it reported sales in the americas on a comparable basis, up 8%, better than estimated. i mentioned what is going on with commodities and the continued declines there are incredible. oil is down for a fourth straight week. this is a weekly decline of the most 6%. for gold, it is the fifth straight weekly drop for gold prices. we see a drop by about 4% on the week. that continuing decline in commodities is also weighing on the stock market, and the makers, the producers of those various commodities dropping as well. mark: julie hyman, thank you so much. let's take a look at the top stories we are following. president obama is in kenya, the first stop in his two-nation africa

it seems as though novartis is taking some market share from the company. big declines.here also looking at trip advisor. the company's earnings missing estimates, the company also cutting forecast. it is taking a big tumble as well. tripadvisor, looks like talking about international pricing, --s taking ahead, feeling it's taking a hit, feeling the u.s. dollar. european travelers are taking shorter trips, trips that occur in europe perhaps a not going further abroad, and that is taking its toll at tripadvisor. capital one financial is another we are watching. shares down 12%. double digit declines series is pretty incredible on the back of the's earnings. the company gets more than half the revenue from credit cards and increased its amount that it is setting aside to cover credit losses. if you take a look inside my bloomberg terminal, you see what i'm talking about. so-called loan-loss provision, the estimate is way down here. this is where the company announced it up here. about $60 billion set aside to cover the potential cost of losses. the company saying is increa

. >> and you're the spokesperson for the i'm so ready campaign with psoriasis funded by novartis. >>e i was feeling so badly. i showed you pictures of me on the fourth of july. >> yeah people who have it, it's a terrible thing to live with. >> it's not a rash. it's an inflammatory thing and it could lead to other things and that's -- that's what the whole so ready campaign is because people don't talk about it. >> "so" spelled "pso." >> i was in england doing the graham norton show and i had to spray paint myself because it was all over and the girl told me her father had it all on his leg. but you don't have to suffer. you can find out more information. there's dermatologists that do cosmetology now, but there are some that still do dermatology. find a guy or the woman that knows it get better because you can get a lot sicker. >> let's play a quick game before you go. >> go ahead. am i going? wait! >> i know, you just got here. okay we're talking about kinky boots so describe whose boots these are. we'll show you pictures of boots. those boots. who is that? you know that. >> who is

they sold their cancer business to novartis acquired their vaccines business and established a joint venture in their consumer business. pharma looked like it beat driven by better than expected sales of their asthma drug and their hiv unit. however, it was pretty light on vaccine and consumers for the quarter. >> let's go to julia boorstin now on what we can expect from facebook after the bell. boy, that twitter report was an interesting one last night. will it be as much interest in facebook? >> i think there's going to be a lot of interest in facebook. i think that analysts are really expecting more growth from facebook, both in users as well as revenue and earnings. one of the key numbers to watch is going to be average revenue per user. it is expected to hit 1.5 billion monthly active users -- near i had 1.5 million. investors are also hoping for updates on key growth areas, including video ads that will be listening very carefully for commentary an the otension to make money from facebook's other apps including instagram where it's been slowly rolling out ads as well as messeng

the drug is made by novartis. studies show it reduces the rates of heart- related deaths and hospital daition compared with older -- hospitalization compared with older drugs. nearly five million americans suffer from heart failure. >>> halfway through the workweek. it's time to start talking about the weekend. how about two tickets to dierks bentley. he'll be performing at jiffy lube live coming up july 10. >> enter the wusa9 text to win drawing. text the words "dierks bentley" to 25543 for your chance if you want to run a business, not just a meeting. own the room, not just be in it. if "never settle" is your mantra, you're our kind of different. at keller graduate school of management. our professors bring real business challenges into the classroom so what you learn today can unlock the leader inside you tomorrow. it's what makes us different. on purpose. devry university's keller graduate school of management. learn more at keller.edu skippy!! yippee!! fun fun fun! shiny! you never listen! what? is someone ta

what we're describing right now is the fda has just approved a new drug from novartis.citement has been growing since a large clinical study showed the drug reduced the risk of heart failure more than any other medication on the market. that trial showed a 20% reduction in the risk of death from cardiovasural causes or hospitalization from heart fail. . >> the state of the confederate flag is in the hands of the south carolina house. they voted to remove the flag from the grounds of the state house. debate over the measure continues in the house today for two more readings. proith now, lawmakers are on track for a final vote on the issue tomorrow. >> an old law that could become a gnaw one. the bush era no child left behind education law is up for debate on capitol hill today. they want to tinker with it. the senate is working towards a bipartisan measure that will essentially rewrite the 2002 law, shifting much of the federal oversight of schools down to the states and local districts. the white house wants changes as well, specifically a cap on the amount of time spen

olivia: stocks are moving lower after a disappointing earnings report from ibm and novartis.ay from the macros reset as grief and what is happening in china

in europe we have big ones with the banks starting, we have novartis and daimler, we will see how daimlerly given the slowdown in china. then, you will take august off as you always do. manus: ok. let's leave it there. you have surveillance with tom keene taking up the bat. one response is is blankfein the epitome of a billionaire. ♪ announcer: this is "bloomberg surveillance." tom: the o's else in the room speaks. lagarde says the imf is not meddling. merkel faces growing revolt. greece tries to give the banks -- to keep the banks open till monday. markets react to a commodity implosion. oil, copper -- they all rollover. get out the checkbook. clayton kershaw and the dodgers are the best money can buy. we are live from our world headquarters in new york. it is friday, i say, july and 17. without question, the image of the morning was the financement surgery in a wheelchair. even i can see the bitterness in his voice. brendan: i am reading a headline that is taken from that speech. he says what really bothers me what tortures me is my responsibility to be just. this is his euro. he was pa

. >>> weakness in china spilling over attorneyings to microsoft and novartis.eme could play out strongly over the next week. >> brooning list of u.s. companies saying slowing growth in the world's second largest economy is taking a toll including 3m caterpillar, united technologies, vm wear all this week. that trend is only likely to continue as we get another full schedule of earnings next week. among them dupont which reports next tuesday, 38% of the chemical company sales come from asia. also food and beverage giant mondalez. 24% overall revenue and reports thursday. seagate another number to check out. drives 50% of sales from asia. that reports next friday. other companies to watch with china exposure reporting in the coming days procter and gamble colgate-palmolive, ford and baidu, the chinese online search company that trades here. go to cnbc.com. we wrote up a story detailing all that. >> thanks very much. morgan brennan reporting. >> we've got about 15 minutes before the closing bell. dow jones industrial average remains in negative territory as the s&

novartis the coast guard's problem. in the 70s the navy supplied icebreakers to the contrary wasn't it? >> yes i believe so. >> would need to get the bureaucratic red tape. it's clearly in the national interest. everybody stayed to need to move forward and quit doing a football back and forth between the navy and coast guard. would you agree with that? >> i'm not interested in a bureaucratic approach. we need to have a plan of action and i look forward if confirmed to working with partners in the coast guard to address in real terms. >> would be good to hear back from assistant secretary statically. he said he would get back to me and never has. a real quick question, yes or no answer. we have an amendment supporting the pacific rebalanced aside it was a sense of the congress that services should increase force posture to give credibility to the rebalanced. should services be free to ignore the defense guidance of the congress? yes or no. in the nba. >> no. >> i want to draw your attention and this relates to china's re

up for cancer and diabetes treatments in the acquisition of novartis health business.t the company's outlook. >> as we're laurgeing products and we're bringing drugs through our late stage pipeline you know, that drives a certain amount of expense. we want to launch our products well. we want to invest in the pipeline products. all in all even though we beat by 16 we think increasing a dime is the prudent thing to do. >> southwest also on the program this morning talking about its quarter. beating expectations by a penny. gary kelly joins us a short time ago with his outlook on fuel prices and on the company's rapid rewards program. >> down on a gallon basis 33%. and that was of course huge for the quarter. a lot of talk about the revenue environment. our revenue production actually was pretty solid. real exciting news for us is we've signed an extension with jpmorgan chase to extend our credit card. and that will bring $400 million in recognized revenue in the second half of this year too. >> check out this chart this morning. tool manufacturer snap-on posting results