. >>> novartis trades higher after raising its outlook. the ceo tells cnbc the investments are bearing fruit. >> our innovation pipeline is delivering when you look at the filings with some cell and gene therapies, and filings of other upcoming launches, you get the sense that we have a strong growth profile building in our innovative medicines portfolio. >>> and he mixed messages on italy coming out of brussels austria's prime minister warns any overindebtedness is a danger for europe >>> good morning welcome to "street signs." we'll take you to some live pictures of the eu leaders arriving at the summit in brussels we know they had a dinner where theresa may gave a speech to her counterparts, and out from that we got the proposal for an extra year of extension of the transition period we've been talking about. we'll get a bit into more detail on that topic as the show goes on we have various leaders arriving we saw angela merkel, the dutch prime minister is also there that is european council president donald tusk there as well it is not

sap, nestle, novartis.ough some of these before we started in a conversation with stocks to watch. ericsson delivering something a little bit better than was estimated. the ibex down 0.2% but a mixed picture for the rest of europe. what do you see on the map of the sectors? matt: a mixed picture as far as sector traded as well -- trade as well. you can see that we are looking at gains in health care, for example. looking at gains in consumer staples, looking at gains in a few of the other sectors, but losses in materials, i.t., energy. energy especially red there. if not a good sign for people along the markets when you see financials lagging behind. it looks like they are doing just that. we will take a look at the in the -- the individual names. what do you see? anna: a lot to talk about. we are keeping an eye on the earnings season. topefour has jumped to the come up by 7% -- top, up by 7%. sales better in the third quarter than in the second, described by encouraging. or --on up by four points up by 4.4

>> novartis just kicked off.are really raising their profile in the competitive industry of oncology, buying the u.s. cancer drug maker for $2.1 billion. that was the standout from their earnings. they saw net sales up in the mid-single-digit percent earlier. nestle, they came in really bang in line. estimates revenue matching estimates. they saw improvement in the u.s. and china. they have a personnel change and that may overshadow the results. the head of its asia unit is resigning. departureirst major since mark snyder became ceo. it is a crucial industry for them because it is a zone that has been profitable. these personnel changes over at nestle good potential overshadow their strong results. ceo joins usis later after 8:00 a.m. london time. juliet, let's get to you. and taiwann sap semiconductor. wrap things up for us. that as at the forecast, the biggest technology company, that is the key take away here. momentumman time -- coming through on their cloud business. this indicates future revenue. it was up

. >>> novartis expects sales for the year to accelerate. and that's where we begin tonight's market focus. the drug maker hik reven outlook for the year after reporting stronger than expected quarterly earnings. sales rose during the period but came up short. novartis said it was expanding reach into on college treatmes with the $2 billion deal to acquire drug maker endocite. novartis shares rose 1% to 2684. meanwhile the shares of endocite surged 50% to 23.40. the aerospace conglomerate bled a acquisition on the profit miss. the company said it's been facing issues bing the new all-terrain vehicle business into industrial units. xt tron reported a drop in revenue as it sold fewer turbo prop engining. shares plunged 11% to 57.49. >>> and bank of new york melon id that strength in the investment management and welt management b deliver earnings beat. but the focus was on the bank's total revenuel which f below expectations. so shares off nearly 3% to 47.79. >>> also out after the bell tonight sketchers said that growing planned for the delig

working with a group of researchers on the second targeted therapy that we hope to license from novartis. as a parent of a child with osteosarcoma, i just can't let a life-saving, potential life- saving drug sit on the shelf. and i will do all i can to get into the lab and get it to clinical trial. >> thank you. thank you, michael for sharing your story. we are on the cusp of something great and we are focusing on personalized medicine, bringing the lab to help bring these drugs that are not necessarily funded using philanthropic funds to get these drugs to children and adults bodies to help them be well with less toxicity. thank you all for sharing with us and our story. i hope that you will find inspiration as he watched sebastian's story and see the power of where we are headed and where we can go as you watch him get back to football and back to racing. he has a bright future ahead of him. >> two years ago i started having issues with my ankle, i was training for a 5k and it progressively got worse. eventually i was diagnosed with osteosarcoma which is bone cancer. to treat that i ha

also working with a group of researchers on a second targeted therapy that we hope to license from novartis. as a parent of a child with osteosarcoma, i just can't let a life-saving potential -- potential life-saving drugs sit on the shelf and i will do all i can to get it into the lab and get it to the clinical trial. [applause] thank you. sage: thank you, michael, for sharing your story. we are on the cusp of something great. oninova, we are focused personalized medicine, bringing the lab and drug discovery to help them bring these drugs that are not necessarily funded, using philanthropic funds to get these drugs into our children's adults' upon -- bodies. i hope you find inspiration as you watch sebastian's story and see the power of where we are headed and where we can go as you watch him get back to to racing.d back he has a great future ahead of him. thank you. [applause] ♪ >> two years ago, i sorted having issues with my ankle. i was training with a five -- for a 5k. i was diagnosed with osteosarcoma, a kind of bone cancer. i had to do a year of chemotherapy and had my left foot amp

rest of the year and you probably remember one month ago i called out the request of hhs pfizer, novartis, a couple of others and they had prices that were fairly substantial i said you can go that - - do that. we are going down not up. they ended the increase. so then they put out notices that the increase will not take effect. and then i said this is a powerful position. when i first realize the power of the presidency. we have kept prices down now we will actually watch them go down. and to reduce regulations to deliver medicine faster and cheaper we sped up the fda approval process they proved 1000 generics the most in history saving almost $9 billion the first year of my administration. it is a very important thing. this is been a priority from day number one. we stopped hospitals from overcharging seniors on medicare with hundreds of millions of dollars of drug payments this year alone. medicare part d plans new tools to negotiate lower prices for more drugs. thanks to our actions to increase competition to drive down cost now the premiums will start to substantially decline for the

novartis ander, they announced price increases said, substantial and i cannot do that, we are going down, not up. that is when i realized the power of the presidency because they all ended that increase. they all said, sir, we are not going to increase and they put out notices that the increase will not take effect. i said, this is a powerful position. it was really at the behest of the secretary and we kept them down. we will watch them go down. we have increased competition and reduced regulations to deliver medicine to patients faster and cheaper. we massively sped up the fda approval process last year. they approved more than 1000 low-cost generics, the most in its history. saving america almost $9 billion in the first year of my administration. it is a very important thing for us and i can tell you this has been a priority for day 1. we took -- overcharging seniors on medicare, which will save them hundreds of millions of dollars on drug payments in this year alone. we have given medicare part do -- part d plans tools to negotiate lower prices for jobs -- drugs. average medicare par

i called pfizer, novartis, a couple of others. they announced drug price increases fairly substantial. i said you can't do that. we are going down, not up. that is probably when i first realized the power of the presidency. they all ended that increase. you have never seen them before. they said we will not increase and they put out notices that the increase will not take effect. i said, this is a powerful position. it was really at the test of the ofretary -- at the behest the secretary and we will watch them go down. we have increased competition and reduce regulations to deliver medicines to patients faster and cheaper. massively sped up the fda approval process. they approved more thousand 1000 generics, the most in his history. than a approved more thousand generics. it is a very important thing for us, and i can tell you this has been a priority from day one. we took action to stop hospitals from overcharging seniors on medicare, which will save them hundreds of millions of dollars on drug payments this year alone. we have g

novartis will pay $24 a share. that's a 50% premium to yesterday's closing price.ust take the rest of the day off. >>> alcoa reporting better than expected quarterly numbers higher aluminum prices and sales of raw materials, prices have risen on that tariff on aluminum imports. alcoa's reliance on aluminum from foreign smerlts hlters havt on that. >>> and sealed air is cutting its q3 outlook because of shipping costs >>> willem marx is in brussels and has more on how the debate and negotiations around brexit are going. >> theresa may came here last night. she spoke. she was heard respectfully by her european peers but by no means conquered. we've been hearing for about a year this summit in brussels was going to be the moment the decisions had to be made on britain's departure from the european union it seems a lot of those leaders are willing to give negotiators a few more weeks, perhaps a couple mormons leading up to christmas for a deal to be struck on that withdrawal. theresa may may be accepting a longer transition period after britain leaves the european unio

novartis had trouble reaching their margins so i believe they made one hundred seventy million or so in their first year of selling the drug for the first eight months and they're pricing it for seventy so if you consider how many people how well he made how many people could be getting that drug it's really not reaching the people and the reason is because it takes three to six weeks of manufacturers' technology you have to manufacture viruses that are specific to the edits you want to perform separately from growing the cells for your own body meanwhile you're dying from cancer and so if you can still make that turnaround time shorter and make the technology to double enough that you can really cost a mine is why you're programming cheaply and quickly you suddenly have a much broader set of diseases you can go after even within like reprogramming t. cells to go after cancer markers you don't eat can't talk to somebody like yourself andre and not think you know what a visionary. you are what is a visionary is a vision what are your goals for this thing i want to see this technology

. >>> and big deal in pharma space, novartis buying endocyte. >>> and relating to pressure on the disappearancear khashoggi, the latest government officials to pull out of the investor conference. the officials joining a growing list of european executives not attending. carl, back to you. >> apparently that's not the only attendee not going, word from reuters the treasury secretary, steven mnuchin was withdrawn from participation in that conference. we'll watch for details as pompeo recently came out, talked to reporters about his conversation with the president now that he is back from saudi arabia as well there's a tweet from mnuchin just met with real donald trump and we decided i will not be participating in the summit in saudi arabia. >> a lot of mixed messages out of the administration about this, almost every time the president talks about this incident and this issue, he emphasizes that khashoggi was not a u.s. citizen and how much money saudi arabia has agreed to invest in u.s. interests now the treasury secretary pulling out, pompeo saying give them more time to investigate. we'll se

novartis underperforming, one of the biggest downside movers. bp as well. seeing weakness in oil prices today. that is how we are looking right out of the gate on the mov function. matt? matt: european markets clearly opening down. the selloff continues to roil global markets. u.s.&p 500 and dow in the wiped out completely their 2018 gains yesterday. the msci asia falls deeper into bear market territory. and to be honest, we are approaching that in germany, down from the highs about 17%. where to invest in a time like this? joining us now, patrick armstrong. where are you invested right now? in defensive sectors only? looking into, you know, government debt and japanese yen and gold? what is the story? >> we like gold. we are net short equities overall. i think prices in american , they are price for perfection and i don't think perfection will be achieved. peak margins and hawkish debt. we own european banks, which you can call a value trap so far, but the french banks, even swiss banks now, are starting to look good with dividend yield. even though we are

novartis will pay $24 a share. that's a 50% premium to yesterday's closing price.ice >>> alcoa reporting better than expected quarterly numbers among the drivers ar higher aluminum prices and sales of raw materials, prices have risen on that tariff on aluminum imports. alcoa's reliance on aluminum from foreign smelters have cut its able ability to benefit from those. >> and results for sealed air deflated this morning. the maker of bubble wrap citing currency headwinds and higher shipping costs >> ebay is suing amazon claiming the online retail giant tried to poach its sellers. the suit alleges amazon messaged sellers to get them to sell on its site which ebay says violates its user agreement. >> the key is they used an internal ebay messages system to do this. it's not like they found their e-mails and reached out to them. >> it's extraordinary. sort of an extraordinary way to get your competitors third party sellers with key to amazon's growth. last year more than half of the items sold on amazon were from third parties. do you look at them and say this was a cle

novartis is expanding further into lucrative fields of oncology. buy endocyte for $2.1 billion. that represents a 54% premium and endocyte's closing price yesterday. new drug shows promise in treating prostate cancer. ebay is accusing amazon of poaching high-value sellers. tacticsims amazon's appear to be part of a larger pattern of aggressive, unscrupulous conduct. amazon is not commenting that the company said previously they are investigating the allegations. renters have something to celebrate. their housing costs dropped last month for the first time in six years. , he wasg to the zillow $1440, down 20%. in moreays rents fell than half of the 35 largest markets. that is your bloomberg business flash. david: the drama over the disappearance of journalists jamal khashoggi continues to play out. u.s. companies are facing difficult decisions about their business dealings with the kingdom. someone who has dealt extensively with companies doing business in saudi arabia as an air force officer, raytheon executive and as u.s. ambassador under presiden

. >> we've already announced an alliance with a intuition of novartis and we'll expand pharmaceuticalo other gee yoog-- geographies ar the world. i do anticipate other conversations with alcohol companies and cpg companies. for us we need to find a company that matches our culture we need to find a company that can match the speed at which this industry, the pace is different from anything i've ever seen where we're seeing -- we'll go from 35 countries to 60 over the next few years so you're seeing a massive market opportunity emerge so whoever we partner with needs to move fast as these markets develop. >> well, i have to tell you, this is the day. and i don't mean to rain one bit on the day /know your stock is $13 billion. i don't want people to get hurt. i just can't have people get hurt but you are a leader in this segment and that's brendan kennedy, the president and ceo of ti of tilray, inc very speculative name. >> and thanks for helping people find their way around this space. very cloudy and confusing. >> canopy is the only one that has the war chest right now. >> jim, see yo

it has agreed to buy it an american -- we spoke to the ceo of novartis.s year, we therapy for oncology with a $4.4 billion acquisition of advanced accelerator applications. endocyte. i believe that will give us the footprint and portfolio to really own the space into the future for the treatment of cancers. francine: nestle -- taylor: nestle is losing its top executive in asia. the company says he is leaving at the end of the year. she couldpeculation be speaking the ceo -- seeking the ceo job at unilever. technologyggest company has raised its forecast for the year. it sees momentum for its cloud business picking up. new cloud bookings rose 37% and a third quarter. we spoke to the company's cfo. >> are combined auto entry has been a 12%. i cannot stability not see any signs of deceleration. we have actually also increased our guidance for the combined cloud and software revenue for the full year. what we see is of course an accelerated revenue makeshift. our classical call license and support business is still resilient. taylor: that is your bloomberg bu

warping on earnings, blaming higher costs and a negative impact on currencies, and an end joe, cyte novartisg its hands on a cancer drug. >>> for many investors, biotech is too risky betting on the success of one key drug. but there is a way to play a biotech boom mech tirell. >> how about alexander real estate counts the biggest 500 tenants from ely and meyer and tech companies uber spread and pinterest. cambridge massachusetts is the hot spot, alexandria is expanding here in new york announcing today it as far ased a third power at the life sciences site along the east riff it's down about 6% versus a gain of about that much for the biotech etf. >> joining us now the executive chairman the founder of real estate equities, joel marcus thank you for joining us why do you think your stock is not more correlated to biotech >> in one sense it's good it's not. historically, it has been much more volatile than the real estate sector. as you know, interest rates are a fear i think it's a story of two worlds, etfs and trading have hurt real estate companies this year, because of the interest rates,