novartis expects core income to rise in the mid to high single digits this year and ahold delhaize hasncrease in sales over last year and at the upper end of analyst expectations the supermarket chainsaw the sales number lifted by strong growth in the netherlands. i want to bring headlines from the brexit minister here in the uk, david davis. he said two years for a transition agreement looks about right for the uk he says he's relaxed about getting that transition deal his primary concern is the future trading relationship with the european unit r. yuon during the transition period the uk may not have the ability to start trade talks with non-eu countries. he does believe that is something that's possible. he said the uk will not adopt every piece of the canadian free trade agreement. that's the model proposed by michel barnier, the chief negotiator of the european union. david davis saying existing free trade agreements with the eu provide the floor, not the ceiling for their future planned agreement. akiko, this is some interesting developments in terms of david davis' position on s

novartis expects to return to growth in 2018.nting on a new drugs, increased sales, to offset its decline in revenue. four bonusade up of cuts by --. the world's largest asset manager increased the size of pool.nus they have benefited from a global rise in stock prices. google has lobbied more than any other technology company. facebook spent more than $11 million. congress scrutinized both companies on charges that their platforms influenced presidential elections. with haslinda now amin. she has done so much in our coverage of the challenges in finance and economics across all of asia. she has an important avenue with the central bank leadership of with africa -- interview the central bank leadership of south africa. when in doubt, hire and economist -- higher an economist.- hire an studiedt to hosea, who at harvard. they provided economic wisdom to any number of managing directors. he joins us this morning, as chairman of standard chartered. what did you do on day one when you moved to the world of standard chartered? what was

>> totally >> caller: i'm calling about novartis and their acquisition of advanced accelerator whichs the symbol aaap. a company that did a really good job for me and i made quite a bit of money and now that novartis has taken over, what do you think of the company >> i like novartis very, very much i think they do a lot of things right and i don't think they're getting enough credit and i think they're an excellent company and an excellent buy each up here okay, okay, everybody. it's raining cheese if you're in south carolina tax reform is not baked in can we understand that from now on this is what this was about to show you it's not baked in i think it's just the beginning. on "mad money" tonight, i'm checking the dogs of the dow and to see if those puppies can be your best friend this year there goes nvidia and then is there still time for a place in your portfolio for children's place after a phenomenal run i'll take a look at what's on ahead for the retailer and a company that can help you stick to your new rear's resolutions like not eating cake and being on a cleanse don't mi

we have got financials trading lower with numbers out from novartis this morning.ve consumer discretionary's and consumer staples are a little bit more mixed. there is the i.t. sector. i have a few brighter areas this morning. i am wondering if that semiconductor sector is trading a little softer. and energy, not as much of a sector, but financials are weaker and i.t. looks weaker. look at the trades out of london as well. let's show you what is happening in terms of the individual names. let's look at the individual stock stories. we will wait and get some details coming through. here is the screen on movers. there is what it looks like on the upside. let's take a look at the downside. what is happening there. let's look at where some of these utilities are trading. equity micro, down. the eula trading softer this morning. a couple of the retailers are showing signs of weakness as well. utilities and the semiconductor sector that is of weakness. tech and utilities, week in europe. we will get more details as we get the stocks opening up this morning. of go back an

novartis is a gainer. thehave got some of up aser staples stock well again today.nd we saw last week with nestle gaining among the big gainers. take a look at fiat chrysler automotive. ofery interesting stock late, up 20% over the last month. it looks like there is some thought about the value, the undervalued price. investors are looking to move that around. as far as the losers go, you did see a big green slice of the high for financials, but hsbc is the biggest loser as far as who is taking index points away from the stoxx 600. you see some more consumer stocks here, although these are the ones you cannot really live without. tobacco is up.n unilever as well. consumer stated box doing poorly. again, unilever on the red side of the leisure. -- ledger. thele on the green side of ledger. equities have started 2018 on a tear, pretty much. up, with its best start since 1999. in europe, the stoxx 600 gained more than 2.86%. it has opened fire this morning. joining us now is the senior investment manager at aberdeen standard investments. saying hek cudmore met with 20

tying the price to the outcome achieved, we've seen a few examples already in the united states, novartis has a cell therapy for cancer that was recently approved, and the price there is $475,000 per year, but cms will only pay if patients actually respond. another example would be the high priced cholesterol drugs. some companies have deals in place, full price only if patients see the lowering of cholesterol in trials. >> i was also interested in i guess you would equate it to almost an annuity system for drug payments, where you would pay -- the insurer would pay every year a certain amount as long as the patient kept responding. so it almost amortizes out their cost and it allows them to plan and it allows the patient to know that they're going to get their treatment. >> yes, so the installment plan that spark announced today, that's interesting, because it essentially allows payers to spread out the payment over multiple years. rather than paying $850,000 up front, maybe you pay 425 this year and 425 the next year. that's useful because of two reasons. the first is if you're a smalle

erik: you think that doctors will willingly drop the novartis drug or other drugs in favor of yours?ere is more -- room for more than one drug. if you look at some patients in europe, many patients battling that disease. those patients, we all need to do well. i do feel very confident that the profile we have means we will be highly competitive against others. erik: patients and doctors would agree with you that there are room for many therapies pier 1 potential therapy -- therapies. one potential therapy that poses risk is the off-the-shelf therapy very what happens if those potentially begin to work and work better than yours? hans: they are more difficult to use. it is not clear they have .ompetitive levels of efficacy one of the big challenges about them is to avoid my cells being rejected by yours. the patient has to be given heavy immunosuppression. that comes with lots of risk. we feel the data we have really points to an advantage and notmately doctors choose for convenience but will help the patient. erik: you describe one of the principal reasons why it has menus so far. ha

johnson and novartis as well.e have for this edition of a jampacked "bloomberg markets: middle east." all the top stories from around the world coming up. "bloomberg technology" is next. this is bloomberg. ♪ we use our phones and computers the same way these days. so why do we pay to have a phone connected when we're already paying for internet? shouldn't it all just be one thing? that's why xfinity mobile comes with your internet. you can get 5 lines of talk and text included at no extra cost. so all you pay for is data. choose by the gig or unlimited. and ask how to get a $150 prepaid card when you buy a new lg x charge. it's a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com >> the following is a paid program. >> the following is a paid advertisement for the three-week yoga retreat brought to you by beachbody. leeza: are you a woman of a certain age? if you are, pull up a chair and stick with me, because i'm with you. it was a big year for me, i turned 60. i'm all about ag

the counterfeit handbag, whether it's the narcotics, whether it's, you know, i also have a case of novartisial drugs being given to a u.n. organization that ended up, through corruption, funding an islamist group in west africa. so it's absolutely everywhere. a friend of mine who works with me wasfr just down the street wn two bombs went off in small ya, in -- somalia, motion dish she -- mogadishu. so it's been, what i wanted for us is, first, to understand our role and how interconnected we are in a world of commerce and in a world of morality, really, and causality. so the closing line of the book -- but you have to still read the rest of it -- is money does not need to -- money may not buy happiness, but it need not pay for misery. so i hope that you will buy the book. you can have a cocktail as you read it. [laughter] which you probably need. and i thank you so much for coming here this evening, and help us also, help us understand by understanding these connections and the links with corruption and how it is actually -- the other thing i say in the book, it's actually the goal of these

the who's who of european businesses from novartis and sap and a host of others representing a half a trillion by my math in market value, all eager to do business in the united states, all interested in his favor. what is going on here? >> look. there was two meetings. the meeting with the u.s. business leaders, which i said, enthusiastically they are embracing him. then the meeting with the foreign business leaders and then trump in between told the network that another network that, you know, his -- mnuchin's comments of a weak dollar were taken out of context. he wants a stronger dollar. foreigners want a stronger dollar for investment in the u.s. so he's singing the tune that every major business leader wants to hear. that's why the markets are up. by the way, you know, here's the stark difference. . obama for eight years attacked major businesses. tried to tax them. tried to put their ceos in jail or at least fine them through his justice department. didn't have a very good impact on wages and as you know, even though the headline up employment number went down, underemployment

it's up 1.3% novartis reported fourth quarter results that beat forecasts.ompany says sales of new drugs including a treatment for psoriasis will fuel its operating profit this year it's up 3% >>> time for the top trending stories. landon joins me. i can say all of those words >> psoriasis it's like papa john's and "squawk box," that's for joe >> that's a pronunciation thing. >> i was trying to give you the credit >> psoriasis it's tough that's a tough one >> that silent "p. >> it's the rest of the world as well all sorts of vowels mixed up >> so many letters >> we'll switch to trending. you know what's trending boy bands. are you so excited this is your favorite topic. >> i know what the punch line is >> can i just do it? bad news for boy band fans it looks like the band is not getting back to better joey fatone shutting down rumors of the boy band reunion at the super bowl half time fatone telling, it mz that if they were performing he would be in rehearsal now >> i don't see this as an outright shutdown. >> you think there's going to be a surprise >> if t

. >>> novartis says the fda granted break through status to treat breast cancer in premenopausal womenthe stock is flat in swiss trade. >>> still ahead on "worldwide exchange," decision day for financial regulation everything you need to know about the mifid ii rules going into effect across europe. >>> and north korea opening dialogue with the south. we're headed to the korean peninsula for a live update. >>> welcome back to "worldwide exchange." let's get you up to speed on the market action. futures pointing higher relative to yesterday's gains treasuries, yields rose yesterday. it was a traditional risk-on day. selling of bonds, buying of equities 2.465 on the ten-year. >>> following the developing story out of the korean peninsula. north korea reopened a cross-border hotline with south korea. it's the latest sign of slightly easing tensions between the two nations. let's get to chery kang with the latest on that good morning >> reporter: good morning. so north korea is starting the new year with a charm offensive. it revived the phone line with south korea at the interkorean borde

i'm ceo of novartis we're one of the largest healthcare companies in the world we focus on innovatives eye care. today we have about 22000 employees in the u.s. across 21 sites. we invest about $14 billion every year into the united states including 3.5 billion in research. it's one of our key markets but also key places where we drive innovation and we're really pleased with the tax reform but also very pleased with the great progress being made at fda. we believe we have a great leadership team there and they're doing the right things to celebrate innovation. president trump: scott a great and alex is great. alex is just starting and he's highly respected so that's fantastic. scott gotley, as you know, is a star. >> he is a star and i think his vision for tobacco and trying to improve and reduce the use of tobacco around the world is very inspiring. president trump: that's very good thank you very much. >> mr. president thank you very much for having me tonight. i serve the people of abb. we have business in more than a hundred countries of the world but have made the last eight yea

do you still feel the pipelines as well as the partnership with lilly and novartis justifies if initiationi think incyte is oversold. we -- you know, when i saw it today, man, maybe i'm nuts, i think it's a good value. larry, i think it's worth a buy. and thank you and dettwiler will be home from all the different cities that she visited that a lot of americans don't go to matt in louisiana, matt. >> caller: happy new year to you. >> same, matt. >> caller: a couple of years ago, i want your opinion i purchased some smith & wesson stock and it's kind of tanked. i don't want to get rid of it. so i'll keep kind of telling myself the buffett quote if you don't want to own it for ten years don't own it for ten minutes. what's your thoughts >> well, i think you're going to need a change in the house, the senate or the president. because this is a stock you buy when the democrats are trying to make it so you can't buy guns. then you sell it when you can buy guns i wish there was more to it, but there isn't. that's what i have to say. >>> now i wouldn't call this a buy list but i think 2017 losers

novartis is down. novo nordisk is down.se companies are taking away index points, as are the oil asducers total and shell, are bhp billiton and the miners. again, you see on the gaining side of the ledger asml still adding the most index points to the stoxx 600. you do see glaxosmithkline there as well. red today,ies turned pulling back from the record high. the dollar is that to rise for the first time in six days. talk to the head of the u.k. rate strategy at ubs. equities have been on a tear. we are in a situation where we are trying to figure out what the rate story will look like for the rest of the year. you are not an equity guy, but i'm curious as to what your take is on the broader market. seems to havement shifted away from the bond story. equities have been on a tear. what is that telling you? >> well, it is reflecting a clear pickup in sentiment generally, where the economy is the inflation expectations, too, to a degree. there is a compelling underlying story here, which has been drawn. that said, when we look

because the market is trading just slightly down, novartis is one of the big losers. a lot of other defensive stocks on here as well. loser on here. these are the stocks you sell if you think you can take more risk. that may be the case today. you do see sanofi there. only down a quarter of a percent. take a look at the upside. the leaders include airbus. we were talking about that company earlier. see siemens, boko santander. maybe some of the auto stocks will be doing well and more of a risk on trade, slightly down market this morning. as the european at the trade gets underway, let's introduce our guest for the next 40 minutes. he is the head of the u.k. investment office at ubs wealth management. on this continuing rally we saw last week, and it we are down an if bit today on the stocks first hundred, we are look at the gainers on the riskier stocks and losers on the defensive stocks. when will investors get tired of getting into this market? >> i don't think they are getting tired at all. it is surprising optimism. it is more of taking a step back, looking at the

working for 30 days based on 30 days for cancer novartis doesn't get paid at all.is situation, they pay a rebate. >> it can make the insurers much more willing to say go ahead and try it >> people do want to move toward paying for medicines that work for people >> let's talk about drug prices. drugmakers are raising their 2018 prices by almost 10% which sounds like a lot and there's a lot less than they have in the past >> we came back to the new year with a lot of new drug prices. these are just a few of the companies that announced new prices for the drugs and a lot of them are raising the drug prices between 5% and 10% as of january first or as of this week allergan raised the price of a dozen and a half drugs by 9.5%, biogen, gilead also raising prices of drugs. these are the list prices of drugs, companies like to say this doesn't include the rebates and discounts we pay back into the system they'll be getting more revenue by two to three percentage points this year probably. so drug prices are going up. >> for some drugmakers, i'm sure, drug prices are keepin

nassir ghaemi, professor at tufts university and harvard medical school and research ear the novartisnstitutes. would you like to first react to anything you just heard me say? >> hello, michael. first, thank you for having me and let me just say my opinions are just my own, not those of any of my employers. i partially agree with what you said. we actually, i organized a meeting at the american psychiatric association annual conference last year on the goldwater rule, in which i argued against it, and i think the problem with the rule it's too absolute. not that it's completely wrong but it goes too far. the problem with goldwater you well described and i think currently with president trump, it is easy to use the epithet of narcissistic personality disorder as has been done by psychiatrist you mentioned to criticize him, if one disagrees with him politically, and i think that's the problem that needs to be controlled. on the other hand, i think absolute censorship doesn't make sense either and that there are public behaviors and signs, as well as documentary evidence like medical re

novartis for example. they are all on the upside. among the losers.side of the nestle trade is unilever. is moving those stocks in opposite directions this morning. you will see material stocks and energy stocks on guy's map this morning. bp is off slightly. such a heavy stock, it weighs down the index. rio tinto is off a bit. changedtch shell has just a little bit but even just 0.1% change take something off of the stocks. 337 gainers. only one of just 76 following this morning. falling this morning. asian stocks look to complete their best week and almost six months as investors around the world pile into equities at the start of 2018. the dow jones industrial sailing past 2500 for the first time. i have it under good authority that jon ferro is making h oodies for us to mark this milestone. it took just 23 trading days for 2400 toe to jump from 2500. with us is bob palmer from quilvest. is this a delayed santa claus rally? is there really more optimism for global growth? i spoke you just a couple of weeks ago in london. fornew there were reasons op

roche, novartis is there this morning. then banks with hsbc and lloyds.t the minors and oils, so royal dutch shell, rio tinto on that side of the ledger. looking at the losers, bank send barclays on the downside. deutsche's number 10 as far as that, so not a huge drop this morning. we just don't see a lot of losers compared to winners today. even though we don't see a lot of action as far as size in the market, you do see more gainers than losers this morning. stocks around the world continue to hit fresh news high -- new highs. a pullback on the s&p lasted all of one day yesterday. even a one-day pullback we saw. three hours, and the nikkei closed at a 16-year high. we have seen 27 year highs out of japan most days of the last couple of weeks. we are seeing real strength across equities worldwide. freddie laitw, . does this make sense to you, this rally? foam?s just a bit of freddie: it is, but that makes sense to me. we have seen it does -- devaluation across the last 10 years and all of these bubbles inflated across the world. one of the cheapest that

we checked in with a lot of them not a lot to talk about novartis had gotten a waiver.y have spun off that division, a vaccine division they say they have a distribution agreement with a company in iran but results negligible volkswagen, pugot, renault, they are importing or manufacturing cars there and french oil company total got in there almost immediatelyctioe signed there was an embargo in place since 1979 even though the nuclear agreement lifted some sanctions, there were still a lot of sanctions in place because of their sponsorship of terrorism >> how big of a market is it what are we talking about? >> it's 70 million people. so it's a substantial number of people it's hard to know because we don't know much about the gdp. we're not sure we believe in the statistics they put out. there's doubts about the inflation statistics that i was talking about yesterday. certainly it's a consumer hungry market there are so many tariffs on foreign goods that you can imagine if those were reduced there would be a lot of demand for outside products >> you were right about the

novartis is pleased with the integration. in thatry early process.not much i can say about that. eric: no preliminary conclusions? david: it is very early in the process. no preliminary conclusions. eric: but it's not a small enterprise. david: it will be a big deal. potentially a good fit with our business. but we would only do it if we still have capital to invest as we deem appropriate. pharma remains our number one priority. eric: what about divestitures? you are at least evaluating options. david: we did a big strategic review of the pharma portfolios. there is one or two areas that we have decided to do prioritize -- to deprioritize. we have really been the leader. that will not be an outright investment that we think there probably is a different sort of partner that really focuses and prioritizes in that area. more of a partnership arrangement. prioritized. that's true. eric: you mentioned am a, your new -- emma, your new ceo. what has changed out of your leadership? david: some things have not changed. she is very much supportive of three bu

president, thank you very much for the honor of being here i'm ceo of novartis.s on innovative medicines, generics as well as eye care today, we have about 22,000 employees in the u.s. across 21 sites. we invest about $14 billion every year into the united states including $3.5 billion in research, it's one of our key markets and also key places where we drive innovation. and we're really pleased with the tax reform, but also very pleased with the great progress being made at fda. we believe you have a great leadership team there and they're doing all the right things to accelerate innovation and access >> scott is great and alex is great. you know alex is just starting he's highly respected. so that's fantastic. scott gottlieb as you know, a star. >> he is a star. i think his vision for tobacco and trying to improve and reduce the use of tobacco around the world is very inspiring. >> very good thank you very much. >> mr. president, thank you very much for having me tonight i serve the people of abb. we are a business in more than 100 countries of the world, but

i'm sure you are familiar with the anounment by novartis to think differently about how they price a new knew keepia drug. i know that's not a finalized agreement. i know there is not a long term data showing how these kind of arrangements work but it seems like an kbrg approach and one that's worth exploring further. what's your view of value or outcomes based contracting in the private sector and the possible applicability to public pairs like medicare? >> senator, i think value based or outcome based contracting first generally within the health care system and especially with medicines can be very important. i think there were some approaches that we have within medicare that get in the way of that. i know when i was doing this in the private sector i wanted to be able to put our money where our mouth was, to say if it works, pay us, if it doesn't work, take a greater discount. but some of the rules around government price reporting can actually be -- and other rules can be a barrier to that. i think there is actually fairly broad bipartisan support to try to address those to ope

novartis leading the pharmaceutical sector a little higher.ollar story is one you have covered very nicely out of davos. mnuchin doubling down on two occasions already. he said he talked about how he was clear and consistent on what he said on the dollar and endorsing the weak dollar benefit trade. what will this do to currency markets more generally? the move is happening once again on the dollar. we take another leg down, but let's not overdo it. what will mario draghi have to say about this? we have an ecb rate decision. nobody is expecting any change of guidance today. that could wait until march, where we might get a change in guidance. what will he has to say about the strength of the euro or the weakness in the dollar? will he be drawn into that difficult conversation around currency markets? stronger,a little bit up 0.2%. we spoke to philip hammond, the chancellor of the exchequer earlier on. he said he was happy with where the is right now. let's get to taylor riggs with the bloomberg business flash. taylor: sky says first-half profit

i'm sure your familiar with the announcement by novartis discussions with cms to think differently how they price the leukemia drug. i know that's not a finalized agreement and not long-term data showing how this works. seems like a long-term approach and one to explore further. what's your view of outcomes based contracting in the private sector and possible applicability to public payers like medicare. >> i think value-based or outcome-based contracting generally within the health care system, especially with medicines, can be important. i also think some regulations in medicare actually get in the way of that. i know when i was doing this in the private sector, i wanted to be able to put our money where our mouth is, to say, if it works, pay us. if it doesn't work take a greater discount. some rules around government price reporting and other rules can be a barrier to that. i think there's fairly broad bipartisan support to address that so we can get real value-based paying for value and paying for outcomes on these medicines. i'm quite excited and think that can be important part o