strong numbers out of novartis today. the bigger question is what the pipeline is looking like further down the road. >> a strong set of numbers the market was prepared for the strong momentum they saw in q1 to continue in q2. the fact they delivered this upgrade won't come as a huge surprise to investors, but certainly is reassuring for the market you talk about the pipeline. novartis has about 25 potential blockbusters in its pipeline and one exciting drug for this company is in the gene therapy realm. this is a drug that they just received u.s. fda approval for back in may. this is gene therapy, a revolutionary type of drug it's unchartered territory for everyone involved. this particular drug costs more than $2 million a treatment huge price tag but huge possibilities when it comes to creating opportunities, creating solutions for devastating diseases i had a chance to catch up with the ceo of novartis and ask him about the pricing of this drug and the prospects for gene therapy moving forward >> we were very pleased

novartis a big winner.ber. -- this is a bloomberg. -- this is bloomberg. ♪ we're the slowskys. we like drip coffee, layovers- -and waiting on hold. what we don't like is relying on fancy technology for help. snail mail! we were invited to a y2k party... uh, didn't that happen, like, 20 years ago? oh, look, karolyn, we've got a mathematician on our hands! check it out! now you can schedule a callback or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not. ♪ matt: stocks at drop globally as trade worries and earnings gloom hits of the markets. ray dalio says it is time to buy gold. and tech is in trouble, netflix punches -- plunges. german software giant sap tumbles on slower growth in cloud computing. plus, iran's foreign minister tells bloomberg that europe needs to live by its commitments to the nuclear deal.

they posted better-than-expected results and raising the full-year guidance novartis up nearly 5%. don't we use that to head now to switzerland where julianna tatelbaum sat down with the novartis ceo i imagine it was a positive interview with those results and a stock move, perhaps some smiles >> it certainly was a positive interview. there's a lot for the ceo, vasant narasimhan, to be pleased about. it was another strong quarter for novartis we saw a lot of positive momentum in q1 that accelerated in q2 as you just said, they raised their guidance for the full year the market was braced for a positive result today. they have delivered in a big way. they also in addition to their existing drugs performing well over the quarter, they had two exciting new launches a potential blockbuster in the second quarter including a new gene therapy treatment with a hefty $2 million price tag that's the world's most expensive drug when i saturday down with the ceo to discuss the quarterly results i asked about the prospect for reform when it comes to drug pricing in the united states and what pr

emma chandra with our stock of the hour, drugmaker novartis.your latest bloomberg business/. united health -- business flash. united health boosted its profit outlook after posting better than forecasted earnings in q2. overall membership increased by over 700,000 in the last year. it did warn of a full year miss. it is now down 2%. fellrmany, shares of sap the most in more than four years. they were up just 15% after a 26% gain the first three months of the year. they have spent more than $10 million to buy two startups. earningssond-quarter more than forecast. still, an economic slowdown is causing a downturn in future demand. , union pacific beating estimates for the second quarter. ceo lance fritz joins us the next hour. looking forward to that conversation. lots to talk about, particularly after billions of dollars of market capitalization was wiped off of the stock yesterday. meantime, the s&p 500 pretty unchanged right now. philip morris international the best performer, up 7.2%, followed by ebay, up 5%. the worst performer still netflix

numbers from novartis are coming through. second quarter core operating profit, at $3.65 billion.he second quarter core eps, $1.34. second quarter net sales, $11.76 billion. 2019 guidance has been raised for the new focused medicines, and they named a president of pharmaceuticals. they see d sales up mid to high sigel digits. to give you more detail, the second quarter sales, $858 million, the estimate of $868 million. a little miss on second quarter sales. we're waiting for a few more numbers to come through. 2019 sales guide's race for both for both -- raised units for novartis. manus, what do we see in the broader markets? manus: the question is this. ray dalio has raised a valid point. gold, look at the five-day chart. negative yielding debt, want to protect yourself, by gold -- buy gold? ray dalio says we are coming to the end of a period, a paradigm shift. what happens? return, which could be through gold in the portfolio. real interest-rate returns will push so low, you may want to consider buying gold. it is a 6000 word piece, and i confess i have not read all 6000 words.

at the top right after the miss on the paragon study, novartis had a failure in terms of its trial drugat has hurt the stock so when it comes down in ways on the s&p. theeken also a miss on first half, investors punishing the brewer by selling off the ubs coming down as far as stocks, banks stocks that are weighing on the index. general equity markets that are down. openingean markets down, the ftse 100 stand out to the upside, 250 fairly flat. let's talk about where we are on these markets were generally and turn our attention to central banks, which will be a big feature. the highlighting of wednesday's decision, investors and economists are virtually united in protecting that jerome powell will cut rates for the first time in a decade. joining us now to discuss the market, chris wiley chief investment officer at connor broadly joins me on set here in london. give us your thoughts as we head toward the fed this wednesday -- i was reading a lot over the weekend about how powell might attempt to run a hotter economy hoping some of the benefits of that low unemployment rate continue to m

the easy pharma is in novartis best of all no controversy two more examples. csx beat east coast railroad what did they do they reported what i can tell you was a very disappointing quarter. and you know what? why? because the ceo is even baffled by the weak economy and the stock got crushed. lance, ceo of union pacific, a west coast railroad, didn't seem baffled at all csx is a train wreck with hard money. maybe i'm being a chicken, the real reward goes to the bold and the brave. people were willing to wade into netflix and make a stand j & j will win all the cases or csx can figure out what went wrong and turn things around that, my friends is totally wrong. through many years of experience, i can tell you that this kind of bravery rarely pays off. sometimes things are as straightforward as they seem costco is now cheaper than netflix. they usually don't get away with raising the price of membership. novartis is a better buy than j & j, even with the stock back to its all-time high 17 times earnings as for csx versus union pacific, are you kidding me being a

my home and sight kit.com. >> thanks to novartis. ginger, we will head back over to you. >> thang.all the dish. >> i cannot wait to break down last night's "bachelorette" episode. it was a juicy one. >> plus my pals from "the real housewives of new york" are revealing the drama behind the drama. >> tune in. >> you have to and before you do that, stay with us here on "gma" because morgxn will perform live. [ applause ] >>> we're back with an artist whose artist has more than 25 million streams. morgxn is following up his first top ten hit with a new single called "a new way." let's hear it. [ applause ] >> thank you. ♪ ♪ i remember when we were 14 two kids lost in a new dream ♪ ♪ i remember how it felt to feel this way, yeah, we fell in love with the mystery ♪ ♪ sure that our lives would be history, yeah, we always thought that we would be okay ♪ ♪ but i don't know how i got lost don't know how i got caught ♪ ♪ i don't want to feel anxious anymore ♪ ♪ hold up, there must be a new way, wait up, how long can we stand here ♪ ♪ we don't need a sign to run away we don't need to fight to

a number of swiss blue chip stocks including nestle, novartis and credit suisse traded at below averageoss a variety of platforms. higher activity is registering on the domestic market as invest adjust to the new rules. bern and brussels have halted trading on boarders after a standoff over their partnership treaty cnbc was told why swiss lawmakers have not been willing to cede ground in their talks with brussels. >> i think europe is not necessarily very understanding, the swiss political system, which is a democracy the swiss government cannot agree on anything without going to referendum in switzerland so they have to find an agreement with europe that will pass the referendum. the swiss population is like the uk population, they want to control, there is a protectionism there of agricultural goods, things like that so the swiss government is doing its best to find a deal that will please europe but also please swiss people. >> huawei says it will wait for the u.s. department of commerce to advise whether it can use google's and troroid system in s new range of smartphones over the w

on the losers, novartis down .3%. it is a heavy stock dragging on the index.4%, so you will see a couple of other losers today. interesting to see if anything only a to britain tesco, drop of .7%. we will watch as the market continues to trade but so far, over 500 gainers. looks like the rising tide is lifting all boats. the cabinet-ish shaped around him? look for in the coming days as to the shape the cabinet will take? what boris johnson wants to do with the country? >> i think the shape of the cabinet is important. the chief whip, the person who maintains the conservative party, gets the votes and the top team is important. i think making sure after members of the one nation in the mason -- ministerial ranks -- anna: will there be room for that, given his view on brexit? cochair, for example, she has been very clear she would be a great voice. you've got to make sure to spread people around the table. anna: do you think challenges to boris johnson will come this week? you heard anna dump-in yesterday resigning his ministerial position because he wants to pr

novartis raising its profit forecast for the second time this year.erspective, boosted by new drugs for heart ailments and psoriasis. scandal plagued don's can bank is in talk with the regulator about new capital requirements. they say a tougher trading environment forced to lower its outlook for this year. dansk a bank has been in survival mode since the estonian money laundering scandal last year. >> we are hoping for a joint settlement across all jurisdictions. this is not something we can control, but something we can give the notion to the regulators to have a combined view on this case in estonia. dansk a bank faces criminal investigations in europe and the u.s. that is the bloomberg business flash. tom: time for the single best chart. if you are just waking up, the research bombshell of the last 24 hours has been jp morgan. we talked to bob michele about ever lower interest rates. and jon ferroe will kill it on "real yield" later. we have come up better than that in the recent years. what is the ramification to our system if we get a jp morgan

number of companies that basically said guidance was okay in the second half of the year ebay and novartis and honeywell. that was a surprise. those are pretty good companies. i think the market is fine right now. i'm just worried about whether global growth slips a little more in the second half. >> we're still waiting, nancy, on a lot of numbers. earnings season is just in its infancy. but tonight there's not only a big company out there, but there's a big company that you own that's releasing numbers and that is microsoft. does microsoft, a, is it a good value for your clients and their money and, b, does it really have the power to maybe move the macro market >> yeah, good to be with you, brian. and hello to bob listen, the stock is still relatively attractive on our valuation metrics, but sales growth has been faster than price appreciation so you have a stock that is still attractive it's all azure all the time. growth has been about 70-plus percent year over year we expect them to come in, in the mid-70s this quarter i don't think -- i think the company beat on earnings and revenues

. >> pfizer last week raised substantially the price of their drugs and i wasn't happy about it novartis also and others, and we made some phone calls, and they brought it back down to what the price was, and i think you're going to see a reduction in drug prices. >> he may be picking up the phone again. drug makers launched a new round of price hikes let's bring in meg tirrell for more on this who's doing it and by how much >> a lot of companies are increasing prices. it's pretty standard to see twice a year price hikes we're seeing those july 1st price increases, about 20 companies raising prices on 40 different drugs. this is according to data from rx savings solutions you can look at it in terms of whether that political pressure is working, in terms of the number of price increases we saw in the first half of the year, it's up 3,400 in 2019 versus 2,900 in 2018. you can also look at the size of the increase we got that data as well the size of the increase on average, and these are list prices, has declined in the first half of the year versus last year. and a couple of the examples

novartis raising its profit forecast for the second time this year, expected to rise as much as a mid-teenage. here in new york, today a judge decides whether financier jeffrey epstein will remain in jail. epstein has been locked up since he was arrested july 6 on sex trafficking charges. prosecutors say epstein is a flight risk and an unrepentant criminal. that is your bloomberg business flash. alix:. different than -- alix: thank you so much. different than his last sentence. meyer at, scott guggenheim saying binging on low debt is not a great idea if history is anything to go by. then ray dalio gives gold the thumbs up again. the era of quantitative easing might be coming to an end. another battle in salt reduction war. ponczek,s now is sarah bloomberg cross-ice at reporter. still with us, jens nordvig of exante. there's this notion going on that if the fed does begin aggressively cutting interest rates, we could see a rally that includes high-yield bonds. scott is coming out and saying that is probably ill advised. if you look at history on average since 1986, through cycle, while peop

phillip morris, ebay, novarti, honeywell also beat, raised the low ends of their full-year guidance generallyhe second half of the year, generally stock goes up. very complicated picture when looking at the big global industrials. they're starting to report i love these companies even the small ones give you interesting ideas. ppg is a big one, dover, watsco, big air-conditioning company, honeywell, i mentioned was positive ppg, a great little company to watch. they make industrial coatings all over the world automotive, aerospace, boat coatings, all over the world they know if things are slowing down, you'll see it. what did they do their numbers were pretty good overall. they talked about solid growth, particularly in aerospace and marine business around the world. they said sluggish demand in autos. we know about that we saw it today with some of these auto retailers they said their raw material costs were higher. we've been hearing this a lot in the commodities space. they said they were trying to raise prices this is a good snapshot of the global industrial economy right now. pressure on

in terms of other pharma companies, there has been quite a movement toward being more focused, so novartis, eli lilly did the same thing with animal health. so something is going on within the industry that is getting there more focused -- getting them more focused. anna: scarlet, we are getting more headlines coming through. scarlet: let's take a look. in terms of mylan's headlines, the company says fire -- pfizer share holds -- says pfizer shareholders would get more than 57% of the company. upjohn will issue $12 billion in debt prior to separation, and upjohn will be split off to pfizer shareholders. sam, do you know what a reverse trust transaction is? cuff.o, not off the sorry. scarlet: it sounds complicated. sam: it does sound complicated. let me go back to my desk and ask other folks what they can make out of this. now seeingr is revenue at 50's -- $52.5 billion. they are also getting us adjusted eps. 2.76 2.86. it sounds like they are bringing down expectations. sam: if upjohn is leaving the business, they are simply adjusting for that. at the end of the day, i think this is the ri

. >>> living longer today is brought to you by novartis >>> and now to our series living longer today better yet online and ship it straight to your home. why not shop for agreements that may be helping people all over the world live longer. we brought in dr. mehmet oz to tell us about some of these options and benefits for traveling the world this morning. good morning. >> good morning to you >> i traveled to many of these places they used to be exotic foods that let these people live a long time. they're all available around america right now. >> we start in peru. what is the ingredient that comes from peru that is going to help us live long? >> let's bring it out, quinoa. who better than craig to bring it out i've gone to peru, they have high mountains there they need energy and protein is often what's required. this is interesting. it's called the mother of all proteins quinoa has all the building blocks of proteins. >> it's a protein? i thought it was a carcarb most foods there's a little bit of carbohydrates, a little bit of fat, a lot of protein i mixed this with red potatoes t

gene therapy approach to treating cancer and highly effective treatments approved on the market and novartisen i was at -- at fda and medicare hasn't quite figured out how to pay for the delivery of this medicine in the hospital environment so that when hospitals are delivering car t therapy they're losing money each time and we're seeing physicians and hospitals are steering patients toward clinical trials where the drug is getting reimbursed rather than just prescribing the drug outright so we see all kinds of distortions in how care is being delivered as a result of the fact that medicare hasn't quite figured out what the right reimbursement level is and what the right mechanism is for paying for this is and we're now two years into it. and this is been on the market for about two years and we know it was coming to the market. and so that shows you that medicare struggles to come up with payment schemes to embrace really disruptive new technology that don't fit into the traditional ways of paying for things >> scott, you were praised in your role as the fda commissioner and i give you a l

the prospects for next year's 5g iphone cycle >>> amd downgraded to neutral from buy and shares of novartisthis morning. they posted better-than-expected results and raising the full-year guidance >>> coming up more on netflix shares plunging after a big miss on subscriber growth we'll dig into that quarter next this is a pretty serious amount of market cap being sloughed off of that stock. >>> later, don't mess our interview this morning with treasury secretary steven mnuchin from the g7 summit in france he'll talk huawei, the debt ceiling, libra and much more you're watching "squawk box" on cnbc >>> let's get back to our big corporate story. netflix's disappointing subscriber numbers joining us now is eric sheridan and ed lee ed lee, cnbc contributor >> i love being here >> intellectual property, "squawk box. it's hard to sum it up, is it not, ed? >> i think you're good at summing it up. >> he joins me also. >> that's what i mean. >> what was your rating eric last week? what was it this week? >> i'm buy rated i remain buy rated we upgraded the stock in january at 330 a share price target