first up, as novartis, could the economy boost life expectancies.eo is joining me for the first time, my exclusive with amgen. and after months of bk in the dull drum, semis turn around stay with cramer >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. show of hands, who's a future comcast business customer here? i think we all are. yeah, definitely. sign us up. yes. two hands. two hands. yay. double hands. get fast reliable internet and add voice for a low price. just one more way we go beyond for your business. and now you can also enter for a chance to win $10,000 from comcast business toget your year off to a fast start. there's a new $10,000 winner every day in january. go online now and enter for a chance to win. comcast business. beyond fast. nancy pelo pelo >>> we are out here in san francisco for the jpmorgan health care conference one of the few events w

the ceo of novartis.bout plans for the business as he continues to streamline and focus on innovative medicine. quickly want to bring you some headlines we are getting from the nikkei news agency in terms of carlos ghosn. he is saying that there was payment distortion or that his payments, the way the prosecutors are bringing them up, are distortion of reality. he says there is no doubt the -- plotwere plopped ted by nissan executives. he is fighting back against these charges that prosecutors have brought against him in japan. remember that prosecutors win 99% of the cases that they bring in japan. of next, we are going to bring you the stocks on the move this morning, including lvmh. it is a big after fourth-quarter sales beat estimates. this is bloomberg. ♪ welcome back to the european open. 20 minutes into your trading day. let's have a look at the markets. fairly mixed. let's take a lead -- look at individual stocks in focus. >> let's take a look at lvmh to the upside. 0.6%. chinese consumers are cer

. >> novartis shares miss expectations busht the swiss pharma giant ae eyes growth as it sharpens its focus on high-tech drugs. >> that really shows how this transformation is enabling us to grow into the future >> and siemens industrial problems persist as first quarter profits miss expectations while ceo reiterates his call for europe to green light its rail merger >> novartis has narrowly missed. it posted a 64% rise in net profit while sales increased 5%. the company also announced a share buyback of up to 10 billion swiss fraungs francs of 2022 he told cnbc that he is confident about the company's refocus on new medicines >> we're very pleased with, first, the results in 2018, but i think importantly for the 2019 guidance, there's really two parts to the story there's the story of the company we once were that it was really a conglomerate of different elements we guided to a low sale -- low single digit sales growth and a midsingle digit operating growth really where i want the markets to focus is our new focused medicines company. that's why we did almost $50 billion in transact

well, as you point out, it is the stake of novartis.the stake and they have to decide what they do with it. ourre very happy with investors, including novartis. nejra: thank you so much for joining us this morning. coming up, another great earnings interview. we speak to the new ceo of unilever. don't miss that interview after 7:30 a.m. london time. manus: we have had a feast here this morning. we have stockmarkets on the up. and i. it from nejra the european open is up next. what a beautiful day in london. it's warmer in to buy. ♪ i'm a veteran and the army taught me a lot about commitment. which i apply to my life and my work. at comcast we're commited to delivering the best experience possible, by being on time everytime. and if we are ever late, we'll give you a automatic twenty dollar credit. my name is antonio and i'm a technician at comcast. we're working to make things simple, easy and awesome. anna: good morning, welcome to "bloomberg markets: european open." edwards alongside matt miller in berlin. matt: today the markets say

they wanted more exposure to the over the counter medicine business he did a $20 billion deal with novartis that involved swapping his anti-cancer portfolio for novartis's vaccine division and combining new businesses under a joint venture controlled by gloxo. you spend fortunes developing new medicines that live or die based on the approval process, whereas vaccines and over the counter drugs are much more predictable. he wanted it to be slow ask steady and he got his wish as the stocks spent years doing next to nothing. >> boo. >> now it seemed like glaxo might have been doubling down on the same strategy. before that she spent most of her career at lore yaal she has the perfect resume to run a consumer package goods company. instead she took her time figuring out the best way forward, and then revealed a bold new vision. she doesn't want to double down on consumer businesses at all. she wants to split it off sb a separate company a month ago we learned that glaxo is merging its consumer division with pfizer in a joint venture that they plan to spin off in three years time. it's going to

i was impressed with vas, the ceo of novartis, and with emmett, the chief ceo of glaxo by the way, glaxovery enticing i would buy that one boush health and aren january are both challenge companies, but i like the way their ceos are handling these challenges i think the turn around at baush is well under way. i came away thinking allergen stock has become too cheap and the power of its upcoming migraine drugs if saunders can get the stock to rally here, i bet the company might be acquired. sure, allergen is losic exclusivity on its dry ice franchise, but i think the company can work through the challenge thanks to its strong pipeline what else? we had a tale of two device makers the maker of revolutionary drug monitors, medtronic, one of the big dogs, shaded down its forecast i love dexcom's growth i think it becomes the way to play the diabetes epidemic in the world. it has a huge addressable market that keeps expanding by leaps and bounds how about medtronic? their device portfolio is strong, and the stock is now derisked here. the ceo shelled out more than a million dollars to buy sha

there will always be setbacks, trials that don't work i served on novartis board ten years, you could come to end stage, not know if it makes it or not if it does, $5 billion up side and revenue, if it doesn't, back to the drawing board it happened to both these companies. i think having more options in the portfolio is a real plus and i think all of the majors, you can't depend on one or two major drugs and cost of buying them after on market is truly high. >> before we let you go, i want to shift gears you served on a number of boards across a number of industries. what are you hearing in terms of the economic slowdown in china and at what point across the different industries would you expect this to be a greater risk for u.s. companies >> i think china risks are real. now the trump administration is talking about making a deal. i'm more skeptical about a deal. i'm not sure you could have a deal like the former nafta, but i think that's the big risk i think the market is slowing down, big players like apple are honest in announcing it. general motors does a heck of a good business

's gross debt is an issue for novartis. it is expected to go in the first half of 2019. with that in mind, let me take you back to novartis and back to santander, because this is where you see the net income beat quite strongly, 2.7 billion. net interest income also racing away, 9.0 6 billion. billion -- 9.06 billion. what they did was they built up there capital back at the end of the fourth quarter, 11.1%. the average of their peers was 14.1%. brazil is still critically important. anna bunton made a huge ,ecision, the biggest call someone say, in the history of banking in the past 10 years. they bedded he would get payouts. that has not happened. she decided not to go through with the hiring of him, and that was to income. .e have the u.s. rollcall nejra: the big focus coming from apple. we saw the s&p 500 drop ever so slightly. we were struggling in direct and a little bit, and tech stocks were underperforming ahead of the apple earnings. as apple comes out in reports its first holiday quarter sales declined since 2001, the company is trying to tell investors not to f

novartis on the downside as well. even as roche is again or, novartis is a loser.cks and defensive stocks like unilever and nestle are on the downside. anna: yes, indeed. fascinating moves in these mining stocks. another thing we need to not lose sight of is the resolution we've had, at least temporarily, around the shutdown. let's get the latest. hundreds of thousands of u.s. federal government employees will return to work this week after congress voted to end the longest government shutdown in modern u.s. history. the white house acting chief of staff, mick mulvaney, warned that president trump is prepared to close federal agencies once again if he doesn't win funding for his long. joining us now, jodi schneider, our senior international editor. good to have you on the program. how real is this threat from president trump? >> -- trump is saying he has to have that well-funded, $5.7 billion is the figure he has been using, that he needs the wall, saying there's a crisis at the border with mexico. the democrats to run the house of representatives are saying no, we

you have the opportunity now to own that great leading company and own novartis, which is a compellingng >> it's really important because that is science. you're willing to lose the surgical part too. >> well, what we're really looking for is places where there's true synergies in the group. when i look at medical devices in contact lenses, clearly huge opportunity to address blindness, but it doesn't fit with our core innovative medicines model. that's why it makes sense to let alcon be free to really develop itself as a stand-alone company. >> cigna's acquisition of express skriptcripts was a major takeover m&a in the industry passes on cost savings to both clients and shareholders >> our number one objective as we close the transaction in the last ten days of 2018 was to insure that both organizations remain passionately focused on making sure our clients and customers got the right service, especially as we step into january, which is an exceptionally busy time for our business and through the first seven days of the year the results are outstanding. number one, make sure smooth co

if you don't want to go into the pot space, there's novartis, there's constellation brands. >> they'reasically telling you their business is deteriorating at a rapid pace. at a certain point valuation makes sense. i don't think you're there yet. >>> time for the final trade on this friday. let's go around the home. >> i like that gm has reaffirmed and is running their business as efficiently as they can. i think the auto space while maybe not that interesting, this is the best of them. >>> i say don't be fooled by the ridiculousdeath cross which never, ever works. that was a little strong worded but i feel that way. >> key words by tim there, you don't have to buy gm tomorrow. i think you'll have an opportunity to buy it much lower in the coming months here. >> guy. >> angry show tonight for a friday. >> it's just spirited, that's it. >> into football weekend netflix reports on the 17th of january,s next week. you saw an upgrade today i think you'll see upgrades monday and tuesday and i think the stock will continue to rally into earnings, melissa lee. >> that does it for us we'll be b

i called up the heads of pfizer and novartis and others. i said you can't do that. you can't raise your prices. you know what they did? they brought them down. they didn't raise them. >> well, today they raised them. so what does that say about whether they're intimidated by the president or doing a run-around the president? mattie, what do you think? >> this is a response to what is happening in washington. drug companies are looking at the new year and recognizing that democrats are in charge of one chamber of congress and the president in his administration have been saying some things that democrats would be wildly happy to accept. things like importing foreign price controls, getting the federal government to intervene to tell what they can charge. drug companies are in no way a sympathetic character. the problem and challenge with drug pricing is this conversation in washington about mandate ago cost and a price doesn't take into account how much it cost to produce a drug. we remain one of the most innovative ecosystems to create drugs. you need an environment

we werember yesterday talking with the ceo of novartis after they had a big miss.he coming out with eps better than the estimate, but the ceo saying it's -- his deal strategy is opportunistic. he was just on with us on bloomberg television saying one of the next pillars of growth for the company could be the emerging neuroscience portfolio. you could see that companies start to get inquisitive there. anna: let me talk to you about bt. they said no change in their outlook. in terms of guidance they are pointing to the top end of the range. our nice headline for the outgoing ceo says the bt ceo bows out on a positive note as result beat forecasts. what have we got coming up? matt: there is a number of stocks with dividends today, including siemens. we are going to talk to alan jope next, the ceo of unilever. ♪ "bloombergme back to markets: european open." 10 minutes until the start of trading and we have futures up across the board. not huge gains, but 0.5% for dax futures. ftse futures up more than 0.25%. anna: let's talk about unilever. the company warning of a tou

they're just not buying i phones >>> novartis has reported higher sales last year thanks to its cancerhares of align technology the maker of invisalign braces, the first quarter profit outlook -- one of the busiest and probably most important days for your money in a long time. why do we say that well, aside from apple, earnings last night, by the way, apple up 5% right now, here's your worldwide exchange breakdown of a date to remember this morning a few hours, we're going to get earnings from mcdonald's later on this afternoon, earnings from tesla and facebook at 10:00 a.m. this morning we're going to find out how real estate is doing. pending home sales numbers will cross the tape a few hours after that, 2:00 eastern time, yep, it is the fed rate decision. then half hour after that is the news conference. all that, of course, will be on power lunch. if that was not enough, high level trade talks between the u.s. and china also kick off today at washington. there is a lot of hope and optimism around the way things will work here what about on the china side well, let's find out what

first of all, in terms of the oche at, novartis and r the top. and daimler holding up the stoxx 600 index, as well as hsbc here. deutsche post helping to power the index. the biggest winners in terms of groups where the auto stocks -- were the auto stocks. volkswagen when the biggest point addition to the -- one of the biggest point addition to the stoxx 600 index. it's interesting that you do see some of the pharma stocks in this side of losers. hotel -- total taking the most points off, but since it's such a big company you don't see much of a move. then you have it had a power -- got paddy power down and william hill's down as well, so some of the biggest gambling stocks falling today. let's get the bloomberg first word news. for that we go to does the humphrey. desley: thanks. the justice department now says that all online gambling is illegal and united states. the ruling reverses its decision from 2011 that only sports betting is prohibited under the law passed 50 years earlier. a coalition backed by billionaire casino executive sheldon ade

novartis is up by almost 13%. anchor 1: thank you, juliette. today's question is very simple -- would a brexit delay be good or bad for u.k. assets? whether it is affects equities or the bond market. we do respond. let us get you your first word news. we are going to stay on brexit because the u.k. lawmakers will vote today on theresa may's eu withdraw deal. 70 of the prime minister's colleagues have publicly stated they would vote against the agreement. both sides have announced they are working on the assumption that brexit will be delayed. is promising to cut taxes on a larger scale to help economy.he slowing a joint statement from the pboc and the finance ministry says the measures will be targeted at small businesses and manufacturing. the pboc shows new loans increased from the previous year. that things in december were ahead of most estimates. astin trudeau has announced death sentence on a chinese citizen. he was given a death sentence after a one-day retrial. reported that his lawyer has decided to appeal the sentence. of extreme conc

roche, novartis adding as well. hsbc the second-biggest gainer, over 1%.he more defensive stocks. banks and pharmaceuticals helping to push you up. bp, royal dutch shell, total all up. as far as the losers, swedbank earnings disappointing, down 3.5%. louis vuitton moet hennessy down 1%, daimler down 1% as well, so some of the companies down with earnings, daimler not out until thursday, but some earnings missing here, and some jockeying to get ahead of earnings coming up next week, bringing down or weighing down on the stoxx 600, which is however still gaining about 0.1%. , european markets opening very slightly higher right now. the u.k. standing out as a patch of green here, after asian stocks were mixed overnight, fears offell on the trade impact on corporate -- earnings. joining us is lucy macdonald, cio of global equities at allianz. we are not getting much direction one way or the other in stocks, but for the overriding theme, what is the most important issue to watch this week? is it brexit? is it trade talks? is it the fed? where is your attention?

came in and bought two competitors in canada with our partnership, our agreement with the unit of novartisc brands group, we have great global partners and i couldn't be more pleased to control our own destiny like we do today as i mentioned earlier, it's early days in this industry. we're not interested in giving up control today >> brendan, thank you very much for your time today. again, brendan kennedy is the head of tilray >>> coming up, bank earnings remain in focus for investors today. we heard from j.p. morgan. at the top of the hour, another data point wells fargo will report results. full coverage of market reaction straight ahead and then tomorrow, blackrock's larry fink will join us at 6:30 a.m. eastern time we head to break take a look at u.s. equities futures now negative on the dow. although we're still positive barely on the s&p 500. nasdaq nicely higher we'll be right back. sfx: [phone ringing] you still have service? call the insurance company it's them, calling us. it's going to be a week before they can get through on these roads shhh, sorry, i didn't catch that. i said

. >> novartis partnering with tilray is a good example. >> yes, so canada today is a $5.5 billion industryh 28 million people they do a billion dollars in vape pens. you saw what altria paid for joules but what would you rather your kids be smoking, a juule or a cannabis vape pen. >> neither, maybe? >> pardon? >> neither maybe >> well, i see tremendous opportunity in the whom aspect of foods, drink, supplements and vitamins. >> was the aphria fit into this budding ecosystem and why are you fighting a hostile takeover already? >>. >> there has been no official offer for the company and ggb said they'd like to either partner or merge with the company. so i've had to deal with guys like carl icahn but there's incredible assets. they have a two million square foot facility in ontario which grows the 228 kilograms a year so the opportunity is there and there are a lot of credible assets in aphria where they have licenses all around the world so, again -- >> your goal to make a food -- when i saw irwin simon joined as chairman of a pot company i thought okay, we'll get a food and beverage deal w

we've got joe papa looks like they are guiding up numbers, novartis and amgen, holy cow they do not toek from jim. amazing bookings out of jpmorgan healthcare conference. jim, we'll see you tonight "mad money" at 6:00 p.m., and a lot more from the healthcare conference we'll be back with eli lilly's david ricks. dow down 115 to start this monday morning back in a moment ♪ pressure, pressing town on yo me ♪ ♪ under pressure >> good monday morning welcome back to "squawk on the street." i'm carl quintanilla and sara icen and david faber at the new york stock exchange. markets down 82 points on the dow to start this monday expecting some data in a moment. normally we would get factory orders and durables and instead we'll have to settle for ism services because of day 17 of the partial government shutdown. let's get to rick santelli in chicago. >> reporter: expecting our december release for ism non-manufacturing. expecting 59 and it's out at 57.6 57.6 so it's a miss both in expectations and sequentially following unrevised 60.7 57.6 is the lightest level since july when it was 57. -- 55.

i actually called up the heads of pfizer and novartis and others, and i said, you can't do that.s, and you know what they did? they brought them down, they didn't raise them. >> and they walked them down, but plan to reverse that. increases on 41 drugs in days from now, these increases are nothing new. for more than a decade brand name prices have exceeded inflation by a wide margin. the blue line an inflation and that's the top drug prices. it's a big difference and it's an expense causing outrage on both sides of the aisle. senator elizabeth warren a 2020 hopeful wants to help lower prices by increasing competition in the generic market by having the federal government manufacture certain meds. whatever the solution, bringing down the price of medicine will no doubt be an issue for voters. >> i think it's terrible. >> we own stock and i like the dividends and stuff, but that's what it's all about, the stock owners. >> they have to have better pricing or fair pricing and we could have generics. >> and i think the drug companies are more of a business than helping people. it's in

that would be good i met with novartis when i was away i said i would be pushing that stock if it weren'tact i think the dollar may have peaked because of jay powell realizing that, you know, there are -- some things other than just employment. by the way, wells, i think, would tell you the principle reasons is because it is hard to find jobs. hard to find people to fill jobs. >> to fill jobs. >> that's still an issue there is enough mix for me to say why are you selling? why are you selling? maybe it is a retest, maybe it is technical the market -- the bear market ended, okay. the bear market ended. >> with the bear market we were in for three weeks. >> please, did you look at stocks to see how far down they were >> it was brutal >> you open up the statements and things like that -- >> that's what i'm saying. >> the fourth quarter/december -- >> jpmorgan is down huge it sells at nine times earnings. this is jpmorgan, goldman is selling as if it is a failing steal mill it is selling like bethlehem steel in '88 it is crazy. >> but you're saying na macy's, fedex, delta, jpm are all not rati

made a lot of moves in our consumer business, first of all, earlier in the year, buying out the novartis so we had control of the destiny of that company. we announced the divestments of a business in december to unilever. and then an absolutely pivotal deal at the end of december in a joint venture with fizer, which creates a world leader in healthcare, tremendous synergy, half a billion, and a lot of value creation for shareholders there. tom: very good conversation there with our taylor riggs this morning. still with us, kit juckes of soc gen. i want to get brexit on my trip to london next week. sterling, what is your call on sterling? kit: look, most likely still along the bottom. sterling is today about 8% off its all-time lows in real terms. it's really very much at the bottom end of a range for very good reason. we get a much bigger move if we get a soft brexit or if we get anything that's good news to the upside than the down side. i think the interesting bet is if we get good news, i can't imagine sterling stopping anything much between 130 and 140 against the dollar. we're eith