low mid single-digit growth for novartis.d decides. 25 basis points is the consensus expectation. what is the rhetoric? ♪ manus: this is "bloomberg daybreak: europe." i am manus cranny in zÜrich with dani burger in london hq. dani: cementing the downshift. slower gains in u.s. employment costs pave the way for a quarter-point hike by the fed today. earnings season disappoints. snap plunges in the late trade after forecasting its first ever quarterly revenue decline. next up to report, meta. the u.k.'s worst industrial action for a decade shuts schools and cripples the rail network as half a million people strike over pay. of course, the line of the morning has been that quote about bonds being in lala land. james athey was a bit skeptical, saying perhaps it makes sense that bonds are pricing in a downside. equities have been in lala land for years. manus: indeed. that is a pavlovian response, he said. bitcoin up 40% in january alone. do you go into a substantial earnings recession and a housing downturn? everybody yesterday l

jeff, 2022 was a restructuring for novartis they were foe could on cutting costs as well as the othernit. what stood out to you from today's report card as to where the trajectory is going forward. >> drugs, i think, joumanna, is the headline as far as this business is concerned. that's where marnlt is focused right now, how to get growth through execution. if we put this business under the microscope, there are two things investors need to think about. one is the things the company can control. we'll get on that in a moment. and the other is the growing environment in which the health care business is operating in. that's health care systems around the world, grappling to recover from the pandemic and to refocus on noninfectious diseases we've also got legislative changes coming in the united states and in europe around drug pricing and how these businesses operate in the public health services some of that's the kind of moving target if you'd like for novartis that's something they and other companies in the space are going to have to deal with coming back to what the company itself

what are they looking to fit into their lineups >> well, novartis has a big hole to fill coming frome looking for a cardiovascular drug, they're looking for neurological drugs and some various pipeline fills there. pfizer is looking for what's called early to mid stage drugs, these are drugs that are earlier in development that haven't been approved just yet. they have recently done some deals for approved drugs these came through the acquisitions of global blood and from biohaven, which is a migraine drug. yet, because they have said that, hey, sort of the profile of businesses that have this mix of approved or late stage drugs might not be out there that fits within the company where they could add value. they're looking earlier stage now. if you take a company like merck, they're looking to fill a hole of oncology pipeline. they're looking at neurological. they're looking to fill where they have a vaccine business too. so these companies are all sort of looking a little bit running the gamut. >> true. meg, so from the investors' point of view, if it sounds like these deals are imm

novartis, fascinating. that european equities were going to be doing well and novartis will be doing great. that is not turning out to be the case. coming up on the european place we will debate on that. we will speak to chris watling longview economics chief strategist. that will be coming up on european close. this is bloomberg. ♪ these days, our households depend on the internet more and more. families grow, houses get smarter, and our demands on the internet increase. that's why we just boosted speeds for over 20 million xfinity customers, on us. so you get more of the speed you need for day and night streaming. more speed you need when you're work from homeing. and more speed you need as your family keeps growing. check in on your current speed through the xfinity app - [announcer] imagine having fuller, thicker, or upgrade to the speed that's right for you today. more voluminous hair instantly. all it takes is just one session at hairclub. introducing xtrands. xtrands adds hundreds or even thousands o

he fits right in him with him we reached out to novartis and they sent a statement about their obesityow they work with independent experts to raise awareness and access to care but they are transparent about those interactions yes we pay experts including some of the health panel it is so corrupt and disgusting. >> yes this is the key part of the playbook that situation is extraordinary when i was working for coke that 15 percent of americans rely on nutrition the american academy of pediatrics was nowhere to be found. speaking out with a crisis with 25 percent of children have prediabetes but now the drug companies are paying the doctors directly a number one spender on mainstream media saying that it's paid in the number one of that is pharma and most importantly every institution depends on pages to be sick sick children are profitable and now that 45 percent of teenagers are obese or overweight this drug is on track to be the highest revenue generating drug in american history and it's a lifetime drug and now a full-court press by the medical establishment working to incentivize b

we come to what is happening with novartis stocks. austerity is having an impact on drug pricing and how much people will be spending. this is the sector that everyone should have been hiding out, and, but as the cyclicals i have delivered thus far. roche is going to deliver next, down by 2.61%. alix: we will get to biotech and a second here in the u.s.. you have u.s. equities picking up. the dow is underperforming. you have a lot of eco-data coming out. the adp, job growth is slow. the ism manufacturing number is the lowest since 2020. prices take down a bit but orders are still low. the two-year is sitting out for 20. no big position in the bond market, the dollar is the same story. amgen is pushing the dow lower. 2020 three guidance was below expectations and it's about an acquisition of verizon therapeutics to provide the growth. the data is affecting the rest of the industry. guy: health care is where you want to hang out, the defensive area of the market. european value will be great. maybe, not so much. let's talk about the dat

novartis looking like it is a bit lower. that looked strong this morning when i first looked at it.ir eps was beating by $.10. but citigroup analysts saying that was underwhelming. some of their arthritis and spinal treatments not beating analyst expectations. that's taking the sting out of the top line between head. the other was novo nordisk, it is around 2% of the index, 300 $20 billion in market cap, that's doing really well because of their obesity drug. this is flying off the shelves. they're competing with eli lilly and pfizer in the u.s. it's been keenly anticipated. it promises to shave 50% off a person's body weight. that stock up 1.5% which is a pretty big day for a stock of that size. the third one is in the u.k., glaxosmithkline, a bit of a beat on the top line. their eps is expected to rise as much as 15% this year. known for their shingles vaccine. that stock only up .2% as we can see on the screen. they are waiting for some key approvals to come through. one of their iron deficiency treatments. and also, some respiratory drugs have not gotten approval in europe. the

prices of almost 1000 prescription drugs by an average of 5.6% of the start of the year fighter novartis and eli lilly are among the companies that upped prices in the last month. drugmakers usually begin a new year by raising the list prices of their products. but after several years, taking increases of 10, or more on certain medicines, the companies have moderated their moves. more recently, drugmakers say the reasons behind the price increase include drug improvement and investment in research. record number of americans tap their 401 case last year for emergencies. 2.8% of the five million people in four oh one k plans run by vanguard group tap their retirement savings last year. that's up from 2.1% the previous year in 2021. and a pen pre pandemic average of about 2% increase in the number of people taking hardship. withdrawals is partly driven by several government moves back in 2018 that have loosened rules for taking distributions from retirement accounts. well tonight, a green comet will be as close to the earth as it has been in 50,000 years. the comment will come within 26 mi

pfizer, novartis and eli lilly are among the companies that up prices through january 31st. experts say this is typical as drugmakers usually start the new year by raising the prices of their products. coming up next here on the kron, 4 news at noon. a new poll showing light on what tele for say they are most concerned about >> the issues that did and did not make the cut. plus a promising sign of progress on the economy. why president biden says the latest jobs report shows his strategy is working. and the oakland police department welcomes a new graduating class while uncertainty remains over. the ron armstrong's future as police chief, we are one-on-one with oakland's mayor after this. >> all right. welcome back. it's been a very busy start to 2023 for the city of oakland and here. joining us live is the new oakland mayor sheng tao. thank you so much, mayor, % for joining us this afternoon. >> so thank you for having me. >> so a lot of headlines to cover. first off, just want to talk about the fact that it's a big day for you and the oakland police department said they ju