they have a couple of board seats, i believe >> altria has no control >> i'm sorry, excuse me, altria. >> i know, it's confusing. >> altria, symbol m.o., has no control over juul. juul is an independent company over which they own a significant stake, 35%, which they paid an enormous price for. but they don't control what juul does and has no ability to take control unless juul says please come in. >> i still think philip morris wants that this is an extraordinary move. >> this would be, by the way, just take the combined market caps, it's a $100 billion deal at least, to put it in perspective, it's the largest deal certainly taking place this deal if it actually gets to the finish line. i would love to get some color on -- i don't think i can step off right now, who's involved or what but we'll see, hopefully we'll get a little more color. i did make a couple of calls this morning and got zippo back. nobody calls back. >> well, this matters. there haven't been a lot of deals of late, david i started to think maybe we're out of the deal phase of this market because people are frozen b

why altria and philip morris could soon be breaking out cigars. i'm ashley webster in for liz claman, let's begin "the claman countdown." ♪ ♪ ashley: we have breaking news for you, actress lori loughlin and her husband are right now in boston federal court as they try to settle the dispute over their choice of lawyers in that massive college admissions bribery case. the court will determine whether they can continue using a law firm that represented the university of southern california which is where their two daughters attended. the couple is accused of paying half a million dollars to get them into usc. they have pleaded not guilty. we'll continue to follow that for you. >>> over in markets, stocks right now as we said off session lows, but firmly in the red as trade hopes dim. it changes with each passing minute, it appears, and also the yield curve moving deeper into inversion. the spread on the two and ten-year yields widening to levels last seen in 2007, the ten-year hovering around 1.48% as you can see, yield curves typically are precu

we would we want to pay a big premium for altria 7 we own would we want to pay a big premium for altria? we own a strong portfolio of brands such as malboro. we are seeing people switch over. philip morris international has done really well in converting over 7 million smokers in japan really well in converting over 7 million smokers injapan and the asian markets into vaping. can they do the same in the us? who out of these companies will dominate the market? what will the conversation look like in terms of who will benefit? it is a race against who will be the winner in this market. that turn our attention to the guardian. these linked documents that reveal some big spending plans for schools in the uk, and it is all fuelling speculation that we could be approaching a general election. absolutely. the general election conversation is about borisjohnson and his leadership campaign, he talks about his top biology of spending. education was second to break it was always really big for him. in the previous election, the nhs wasa him. in the previous election, the nhs was a big headline tha

altria has a stake in cronos, $2 billion state. that is a global opportunity potentially with canada and eu. vonnie: are there any of the traditional synergies here that may see layoffs in a combined company? craig: one of the big ones has to do with the technology they have spent billions on developing, but altria has the right to license it in the u.s. if those companies get back together, if it becomes a big deal, especially with vaping under scrutiny, that is definitely a synergy. sources also tell bloomberg that neither company is planning any divestitures. do they think it is an antitrust slamdunk? craig: there are some ways that you can look at this. how is the ftc going to look at their products? from a traditional sense, not a t a ton of regulatory risk. vonnie: thank you for that. still ahead, taking a look at falling global yield. it is now forcing pension plans to buy bonds that offer negative returns. what the declines in investment returns means for the pension industry. this is bloomberg. ♪ vonnie: this is "bloombe

phillip morris is in talks to reunite with altria. how the potential merger could affect the e-cig market. we speak to the cofounder of apple, steve wozniak. he discusses everything from trade to services to his strong concerns on privacy on facebook. to our top story -- federal officials charming former uber engineer anthony levandowski with stealing driverless technology from the waymo unit. this is one of the most intriguing recent legal battles in silicon valley and a top priority for the fbi. tolerate thell not theft of trade secrets. let me be clear -- these are the crown jewels of companies. taylor: joining me to discuss is bloomberg's eric newcomer. what a long saga it has been. what have we learned today? eric: this was a total surprise. uber and google settled this and while ago. there had been a private arbitration. but the idea that there would be criminal charges is something i think people had largely given up on. it has just taken so much time. this is a big deal for silicon valley. taylor: talk to me about the differen

phillip morris and altria said 52-48% split, no divestitures, no premiums. this is bloomberg. ♪ vonnie: breaking news now for our stock of the hour. some big news in phillip morris and altria. emma chandra has details for us in london. emma: yes, we are looking at a merger between the two tobacco giants. we should remember this would be both a merger and reunification. the tobacco giants split some 10 years ago under investor pressure for higher dividends and more buybacks. this is also a way to set free the faster growing overseas operations at phillip morris. altria's3, it is stock that has gained the most because altria has been moving quickly to reduce its dependence on declining u.s. smoking rates. they are now just 14% of the u.s. adult population. while traditional smoking audits -- smoking product still account for most of the income, they have been diversifying. , thetook a stake in juul number one vaping product in the u.s. a 45% stake in canadian cannabis company and a 10% stake in ab invev. if we take a look at the combined portfolio, they woul

arelip morris and altria looking at a 58%/42% split in that deal. johnson & johnson had a favorable outcome in court and its stock is up. less than $600 million according a court on an opioid case. there might be more to follow but for the moment that is where things stand. the 10 year yield continues to decline in the u.s.. anddollar index above 98 crude at $53.83 a barrel. let's turn to emerging markets. joining us in london is barrington pit miller. just back from a research trip to india. the government has implement and measures to try to spur economic growth. very problematic and many new measures being introduced by modi not going over so well with the market and the community. thanks for joining us. give us your take away from your research trip. india is certainly going through a growth soft patch and the market after the modi election was euphoric, and that was in contrast the two the underlying -- to the underlying dynamics, which was a slowdown. what was driving that? i believe a lot of this is a mated india problem. the modi government

altria also has estate in krona, canadian cannabis company. there's a lot of geographic opportunity. shery: kailey leinz, thank you so much for the latest on our stock of the hour. coming up, president trump shifts his tone but not his tactics on china. how long can the president keep the trade war going before there a political price to pay? chan oftalk with lanee the hoover institution, next. this is bloomberg. ♪ at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond. is "balance of power" on bloomberg television. lanheewe welcome chen. chen. i want to stick with u.s. china trade talks. there has been a dizzying amount of news on tha

philip morris and altria are in talks to merge. ou deal that bring back together two companies facing declining demand. >>>tu , why more drivers are turning off the very features designed to keep them safe. those stories and more tonight on "nightly business report" for tuesday, august 27th. ♪ >>> and we do bid you a good evening, everybody,nd welcome. we begin tonight with something a little different, something that has held tf attention the whole country for a while and something that we have been reporting on for quite sometime, that is the opioid epidemic. nbc news reported late this afternoon that purduea pha is offering between $10 and $12 billion to settle mor than 2,000 lawsuits connected to its role in the crisis. purdue pharma, you may know, is the maker of oxycontin, the powerful pain killer that has been at the center of the opioid epidemic. the reportede offer to set come one day after a landmark ruling against j & j which, as we reported last night, was ordered to pay half a "big tettle lies" dolla-- half a bil dol

. >>> still ahead -- >> coming up, more than a decade after breaking up, altria and phillip morris are considering getting back together. why now? and what is the real motivation behind the potential tie-up? plus starbucks ceo says that he doesn't see any signs of a looming recession. we'll tell you why he is so optimistic and can a ceo serving on more than one board be harmful to his company? black rock says yes. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from using feedback to innovate... to introducing products faster... to managing website inventory... and network bandwidth. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. >>> major story in corporate america today, philip morris international getting back together with altria potentially. this more than a decade after the two companies split up what is driving this move and how are regulators likely to react? i'm joined by jennifer maloney and stephanie miller great to have you both here. stephanie, it struck

september,nches in altria would get some of those profits. they are stronger together, more profitable together. it doesn't make as much sense to investors anymore. philip morris has lagged behind. they need something to get investors excited about their growth prospect. the healthow about effects. they are tiny contributors financially. both stocks are ending the day down. i think a lot of that is because it is an all stock merger. atria is not really getting real premium, they are called to get a merger of equals. caroline: we thank you. a quick check of the latest business flash headlines. revlon will start to approach potential bidders last month. they are exploring a sale of the whole company or indeed its major brands. they are trying to find a buyer that will turn around the company and keep it public. a former uber engineer has been charged with selling technology from the waymo unit. of conspiringuber heh levandowski after absconded with information. the american store in shanghai was overwhelmed with customers willing to fight over

altria purchased a 35% stake in juul. altria is in talks with marlboro maker philip morris about a merger. that is your bloomberg business flash. alix: i find the juul conversation interesting. owns so much of it, and you have the deal with phillip morris, how do you combat that? that is their area of growth. without that, they have nothing. so how do you do with it? david: at the same time, you don't have a teenage daughter yet. you will be much more interested in the subject if you have a teenager. alix: i'm terrified already. they've already had to deal with this, the marketing issues with their actual cigarettes, but if they are going to be in e-cigarettes and vaping, they have to do this. david: exactly right. we turn now to "business week," where we profile the latest the issue of "bloomberg businessweek." first up, technology is driving -- driving use the world to use more and more of the element in the periodic table. reinventing table salt and cashing in on a huge and growing business. and building the world's mo

it could hurt the combined company since altria has a stake it in. this could take a long time as it still needs to get the green light from regulatory officials. back to you guys. lauren: kristina partsinevolos, thank you very much. meanwhile, 16 women have come forward with accusations against jeffrey epstein. the alleged victims sharing their stories in open court yesterday after epstein's suicide deprived them of a chance to get real justice. >> i want to thank the judge for letting us speak. >> all i'm going to say is today is a day of power and strength. lauren: this, as the judge considers dropping epstein's latest sex trafficking charges due to his death. we'll have more on this fight later in the show. cheryl: despite the united states black listing companies still want to sell to huawei. lauren: tracee carrasco picks it up from here. tracee: reuters reports the u.s. commerce department got more than 130 applications from companies looking to sell to huawei. this comes a couple months after president trump said some sales would be allowed. a

is entirely trust probably december deal with altria which invested $12800000000.00 for a 35 percent stake in jewel meanwhile the center for disease control and prevention said friday that they had receivers supports 215 possible cases of long illness in the united states due to vaporing the city has c.d.c. has warned that no one under the age of 18 should use of a ping products adding that they should not be used by those who do not currently use tobacco. continues to stay steady flirting around the $10000.00 mark while its market share rose above 70 percent for the 1st time since march of 2017 c.m.e. futures expired today sparking a volatility as 50 percent of positions are expected to roll over while the price doesn't move much we see clear accumulation buys from institutional it's now as investors trying to hedge against the macro che turmoil the correlation between big point and physical gold has doubled in the past 3 months and now here to give us the latest managing partner of founders fun so let's start off with finance thing number having me back on the show absolutely we lo

here in the states, altria does own 35% of juul. that's important, it's relevant, but they wouldn't take control of it. they can't do that but it is about having a larger company with larger ability to spend money on r&d to innovate for the next 10 or 15 years as things change so rapidly in this sector >> phillip morris has come on multiple times to talk about a smokeless future they're going to phase out cigarettes and they want to go fully into this. it's interesting this could potentially be the next step there. and i guess we'll see to your point if he becomes the leader of it if they do merge >> that remains unclear, but you have similar leverage ratios at both companies, but put them together, and obviously, there is a larger ability for them to together focus on shared r&d goals as opposed to separately pursue them. and this is an area where there is going to be potentially a lot more innovation, just beyond juul and iqos, which were the early entrants >> david, thanks >>> overall, stocks in the red after some early morning g

how does that compare to altria 's stake in juul. what do you think about the overlap in the future growth of these markets? 's stake in juul, they paid about $12 million. when it comes to the heat not burn product, it is the exclusive distributor in the u.s.. they are both vapor noncombustible products. they do target separate niches. juul tends to be a younger adult, some even minors unfortunately. the other product, because it uses finely ground tobacco as opposed to flavored nicotine, it targets an older demographic, which really looks to the old-fashioned tobacco, almost like a pipe experience, as opposed to the nicotine hit. taylor: i think broadly speaking, talk to me about regulatory environment as it comes to how people think about e-cigs. i have heard on one hand that it is a gateway drug. others are wondering if the fda thinks it is more of a replacement. some of the regulatory pressure that you see? anna: i think it does have a place in this debate. there has been this balancing act that the government has been trying to

and altria down nearly 4%. of course a lot of uncertainty as to the direction of travel for these tobacco giants and investors are cautious about the reunification. >> peloton is set to go public they make video streaming exercise bikes and said it aims to raise $500 million and didn't specify the size of the ipo. it was most recently valued but revealed in it's filing that it suffered significant losses over the last two years and may not turn a profit any time soon. familiar story of course over the last year or so when it comes to tech ipos deutsche bank revealed it has tax returns filed by donald trump, his family or his business two u.s. committees to provide the information. the trump family is seeking to block the release by the bank which is the main lender for trump's real estate business the story we're discussing at length on squawk box yesterday, this is around the opioid epidemic in the united states. we were discussing johnson & johnson news this time we have news on purdue pharma they're weighing

alix: the last set of companies is phillip morris and altria. brooke sutherland has more on the merger. brooke: they came out yesterday and claimed they are in talks for a merger. this would be a reunion because phillip morris was spun off from altria into 2008, the idea being to -- now the companies are thinking about getting back together. wall street is not sure what to make of this. divided opinions. phillip morris stop falling nearly 8% yesterday. altria down for percent. 4%.own david: that is the question. what is the overall climate? the reading is more than the -- the reunion is more than the biggest in the industry. smoking habits have changed a lot since 2008. brooke: demand for traditional cigarettes is down but we are seeing a surge of demand for e-cigarettes and vaping devices. they do have this device that feeds rather than burnt -- that heats rather than burns tobacco it is supposed to be better for you. the idea is if you merge that it makes it easier to market and sell. you get some synergies for putting that all under one room

altria. it is a smaller company. yesterday we got news of talks of an all stock merger of equals the market starts to react by sending shares higher. we were able to tell you, that's not the case they may be describing it as a merger of equals when it comes to the economics, it is not. they're basing it on the respected market caps of the company prior to the move in either stock before we started to at least hear some potential resu rumors of said deal. you watched altria shares plunge yesterday. philip morris also down. this morning, shares as you see rebounding a bit altria continues down. this is a no premium, what they're calling merger of equal s. there did seem to be good momentum behind it they were talking through the early part of the summer and picking up as that moved along the question is this going to be a company that together will be able to spend more on r&d and compete in what or should i say innovate in what is a rapidly changing market given people are not expected or expe

altria if anything will weigh negatively on philip morris. to talk about the alternatives to cigarettes what is it? e-cigarettes and vaping. those are gaining in popularity. altria has 35% stake in juul. you also have philip morris came out with their own product. that is raising, popularity across the globe. that is a device that doesn't burn tobacco. heats it up. so no smoke comes up. when you e-cigarettes you have to have a conversation about health concerns. today on cbs you had the ceo of the largest cigarette company, juul, he spoke about any type of breathing illnesses related to vaping. he said it is very worrisome. he admitted. that it is worrisome. u.s. centers for disease control are looking into 200 cases of possible lung disease associated with vaping. nonetheless, bring it full circle. this merger could take a while to get a green light from regulate to. >> kristina partsinevelos live from the new york stock exchange. how balanced is your portfolio? the time to play defense is con. even with this market volatility, hodges small-

more than a decade after they split altria and philip morris international are considering a marriage made in tobacco have been in 2008. but out the mars international in an attempt to grow. their international business and avoid regulation and lawsuits in the united states if the drug companies are able to merge they would be a $200000000000.00 giant in the industry with their next closest competitor british american tobacco worth roughly only $80000000000.00 people familiar with the negotiations say that the 2 companies would hope to develop new products in the ever changing smoking landscape if the 2 do strike a deal it was still have to face approval by the company's board and shareholders and regulators cigarette sales have been on the decline throughout the world as if cigarettes become more prevalent and health officials warn of the negative effects of long term smoking philip morris has managed to weather the storm through strong sales of i.q. us heated tobacco device and now with this merger also have access to all trace growth segments which includes jewel and kona. and the

tobacco, one big deal on the horizon we will tell you about phillip morris's potential merger with altria can light up the tobacco trade. more after this. >>> welcome back to "fast money" we've got an earnings alert on auto desk. you see falling in the after hour's session let's get to rahel solomon with the details. >> reporter: the software company falling sharply after lowering the full year's earnings estimate. they point to the continuing trade war with china as one reason saying in part, while we continue to execute well and are not materially impacted by current trade tensions and macro uncertainty, we are taking a prudent stance to our second half fiscal 2020 outlook despite these near-term headwinds, our recurring revenue models is much more resilient than in prior cycles they make products from everything using architecture to fashion. the company falling more than 11% right now, 11.3% back to you. >> rahel, thank you. rahel solomon. dan, your trade? >> i thought this one was interesting and it trade at ten times sales, 53 times earnings it was down from the recent highs a few m

with the financial times, and after talks of a huge merger between tobacco giants philip morris and altria emerged, well, it looks like investors could stump them out — the companies lost $13 billion of their combined value. big money in the guardian here in the uk too — a £3.5 billion boost for education according to documents leaked to the newspaper. it includes pay rises for teachers and new free schools. vox were across a kfc store in the us going chicken—free for the day — well, for five hours at least — before all the vegan alternative to the meat sold out. it‘s an experiment with food start—up beyond meat. millennials are worst placed to cope with a recession than the generations that have gone before them. we‘ll unpick this article from axios. and futurism on why the future may soon see a cable tethering the earth to the moon if some space scientists get their way. so let‘s begin. with me is priya lakhani, the founder and ceo of century tech. welcome to the programme. the financial times, tobacco firms having to adjust to a future where people are increasingly tr

altria started the day higher but dragged down into the red like the rest of the market. dow's down 41 points and moving back towards the flat line are we going to hold here? we have 59 minutes to find out. >> i'm mike santoli in for wilfred frost. morgan, look at when's driving the action yields slip and stocks follow as the yield curve inversion deepens more plus consumer confidence slips but less so and bill dudley says the fed shouldn't enable the disastrous path of trade war es ka ligs and should attempt to influence the election not cutting rates further. we have it all coming up in hour joining us for the hour is steve grasso here at post nine good to see you. >> good to see you. >> a wobbly session today in terms of the market. up on the dow. that didn't hold but we are also kind of oscillating off the lows here still within this month-long range. >> i think it's about yields german yields, negative yields around the world probably heading even lower from there and taking the equity markets with it. that's it from the 50,000 foot up and now trade headline, dudley

now we are seeing altria go from way up to slightly down. these companies split in 2008 and now people say that it makes sense to put them back together, but there's obviously questions about how this would all work. there's big regulatory risks on some of the things key to the is, namely cannabis and vaping. >> fortescue reported for your underlying profit that beat analyst estimates. very much a different picture. >> exactly. that is the question on the minds of investors. certainly, it is where those iron ore prices are headed that is the real concern. but we do know is an extraordinary surgeon iron ore prices we saw through the first half of 2019. they have really reaped the benefits of that. but it is all about the forward-looking case. the majority of the market sees the iron ore prices heading lower, so what we can expect is a reduction in profits this time next year. pharmas says the profits surged in june. the australian conglomerate may have to think one time items related to after sales. what i want to know is the ceo in your busi

taylor: you have phillip morris ,n talks to reunite with altria which has a huge stake in juul, big tobacco having ownership over the largest vaping company in the world. what is your take? josh: i care less about what corporate form these conglomerates take then about the business process -- practices that are engaged. i want companies to stop designing their products, packaging their products, marketing their products, and selling their products to children. emily: just to clarify, the eight additional companies you have sued in addition to juul, how did you choose them? had: we did research, people do some purchases, and we thought they were bad actors. that is what we allege in our complaint. my objective is to protect people in north carolina from these products. these were bad actors in my view. emily: that was north carolina attorney general josh stein speaking with me earlier. -- wessued a statement have been cooperating with his office and have taken the most aggressive actions of anybody in the industry to combat usage. for more on concerns about vaping products, i want to bring i

. >>> we have a market flash on altria. >> shares down just about 4% right now following the news that the f da investigating whether e cigarettes cause seizures, looking at a handful of cases altria with a 35% state in juul. so we know now an fda commissioner e-mailed gottlieb in saying no cause but an association with juul and being investigated for social media influencers and whether minors were targeted. the ceo appearing on cbs this morning where he admitted it is not clear what the long term effects of vaping really are again, altria shares down about 4% back to you. >> we are not having a good week anyway after deal talks revealed between altria and philip morris thanks. >>> abercrombie shares are tanking. up next, what the other big retailers are saying about trade tensions and how that could impact your wallet. >>> plus earnings results after the bell llpreview the key things to watch in those reports where is gate 87? excuse me you should be mad at non-seasoned travelers. and they took my toothpaste away. and you should be mad at people who take unnecessary risks. how dare y

first, shares of tobacco company altria dropping after the dow jones reported the u.s. federal trade commission is investigating the marketing . -- marketing practices of juul labs. it has invested $13 billion into the popular e-cigarette maker. regulators are investigating whether juul engaged in deceptive marketing. in addition, juul was named in documents by the u.s. food and drug administration as it investigates whether e-cigarettes can trigger seizures. joining us to discuss, the co-author of that scoop, our bloomberg news health care policy reporter and a reporter who covers juul. what exactly is the fda investigating? anna: they have gotten reports from people that this has happened to who say they have had seizures and that juul was one of the e-cigarettes that some of these people putting reports in used. they said recently, the fda, that there have been 127 reports of seizures possibly linked to e-cigarettes. what they have not said is what devices were used in this, and what we found out is that to start this investigation, the reports they were looking at w

. >> that would be philip morris and altria. they're looking for alternatives as smoking declines around the world. they've partnered on a new device that heats up tobacco without burning it. altria owns a stake in vaping company juul. >>> taking a look at the new york stock exchange, you can see we're starting the day a bit down about 65 points this morning. >>> do you lie about what is happening on your vacation to your bosses? do you say that you can't get on your email or your accounts because you don't have wi-fi? >> we mention this because apparently about half of you do. this is some new numbers coming out. a survey finding 49% of americans say it is okay to lie about cell and internet access when you're taking off. respondents said they want to keep work emails from creeping into their personal time. there you go. >> grab your light sabres, throw them away. you need a new lightsaber if you're going to look good in star wars galaxy's edge opening tomorrow in walt disney world in florida. >> the new florida light sabres ar

emily: you have phillip morris in talks to reunite with altria, which has a huge stake in juul, this would be big tobacco having ownership over the largest vaping company in the world. what is your take on that? josh: i care less about what corporate form these conglomerates take than i do about the business practices that are engaged. i want companies to stop designing their products, packaging their products, marketing their products, and selling their products to children. emily: just to clarify, the eight additional companies you have sued in addition to juul, how did you choose them? josh: we did a lot of research. we had some people do some purchases. and we thought they were extremely bad actors. that is what we allege in our complaint. my objective is to protect young people in north carolina from these products which are extremely harmful and addictive. these were bad actors in my view. emily: that was north carolina attorney general josh stein speaking with me earlier. juul important to note issued the following statement in we may. have been cooperating with his office and

and tobacco giants philip morris international and marlboro—maker altria are in talks to re—unite to create the world‘s largest tobacco company worth over $200 billion — that‘s according to the ft. let‘s have a closer look. should we begin with the opposition parties agreeing to block of noto brexit. but it is a significant coming together? it was a very interesting scene at a church house in westminster with all the parties — i think no tory mps were spotted at this event, they were gathered to say they don‘t like and no deal brexit. they will sit in an alternative parliament if it is provoked. rory stewart, for example, had said that he would be prepared to convene a parliament there if it was provoked, jab at borisjohnson. it's was provoked, jab at borisjohnson. it‘s very interesting that come together for this. obviously the same deity day that nigel farage is banging the drum for the brexit party, and i‘m sure he had a field day with this, the establishment stitched up. what does it mean? they‘ve agreed firstly that they will not have first order of their plans

i'm philip morris and altria come with different directions out trea kind of a silly name, it sounds out realistic it sounds like they're trying to hide that there, but they may cancer sticks. but they sold really well in china and india, but now. out trees gone out and bought some marijuana companies they've gone out and up. but some vaping companies and a big part of jewel base a bay area company so. philip morris, the same this is a much too good to be true to their phone a lot of money by al tree about come. >>okay and then on the tech also in your winner column we've got roku which appears to be growing. pretty spectacular fashion the cass bay area company got and when you look at netflix's growth rate, you know what well i wish i could have invested. an analyst came out today and said rocha's actually training about a one percentage point faster at that point in time with 15 about this is disney plus has come out this fall. it's going it's an amazing package that is going to force people to cut comcast nbc services because it's going to be your get hulu your to get disney movie

altria started the day higher but dragged down into the red like the rest of the market. dow's down 41 points and moving back towards the flat line are we going to hold here? we have 59 minutes to find out. >> i'm mike santoli in for wilfred frost. morgan, look at when's driving the action yields slip and stocks follow as the yield curve inversion deepen

yesterday, the shocking news we saw within tobacco, altria phillip morris international, they want to get back together. we will talk about that when we get back. futures up four. this is bloomberg. ♪ ♪ viviana: you are watching bloomberg "surveillance." toyota and suzuki are strengthening their alliance by taking stakes in each other. toyota will acquire 5% of suzuki and suzuki will spend half of that amount for a smaller holding in toyota. work towardreed to the development of self-driving technology. that would be the biggest deal ever in tobacco, phillip morris altria toia -- reunite after years apart. phillip morris has been spending billions to develop a heat, not burn smoking pack. that is the bloomberg's newsflash. tom: i would have fallen off my chair yesterday with the announcement of altria and phillip morris but i was already out of my chair because of bob dudley. bring up the screen. this is a little hard to read, but i want to show you how they meant money. money. they bring revenue down to $.43 on the dollar. to begin with, it is still a very lucrative business, isn

tobacco giants, philip morris, altria, this was another big story a potential blockbuster deal gerri willis is here to talk more about. gerri? reporter: looks like philip morris is in discussions about purchase of altria in all stock share of equals. why are they doing this? facing shrinking cigarette sales in part because of health concerns out there. it could take a long time to get this deal through regular latetores. these two companies were together a decade ago. now they're trying to get back together. we'll look at boeing shares. why? because american airlines are saying they expect, they are confident in fact that boeing 737 max aircraft will fly later this year, possibly in time for christmas. very good news indeed. american has removed 24 max jets from its flying schedule through early november. you can see shares are down a little bit today. the entire sector in fact is down. boeing down as well. earlier today we learned a russian firm is suing boeing over the max jet saying it harmed their businesses, that the company did not give them adequate notice of props with the je

devices, so one of the things that juul has the advantage is that they now have the backing that altria, the and no not beoro, as hard for them. but it may be harder for the smaller vaping companies that we have not heard of, more like mom-and-pop institutions. it will be tougher for them. they could possibly go out of business. that is kind of the way that we see a lot of things working with the food and drug administration, but there is the balance to make sure that companies claiming their products is doing is actually what they are doing and doing it safely. host: what is the level of nicotine between a juul product versus a combustible cigarette? guest: juul pod is equal to the amount of nicotine in a pack of cigarettes. i have talked to younger adults d per day, same nicotine as a pack of cigarettes. host: a caller from california, gabby. caller: it is abby. i vape. it is the same as greg. i had been smoking for a lot of years and i just quit recently, juul -- aot use a different device. my question is, secondhand smoke, my brother swears it saved, i am not sure what the research

philippines, so philip morris shareholders weren't thrilled they were going back into the us effectively with altria, so shares were down seven or 8% by the end of the day. in the uk, the latest british retail consortium figures suggesting prices falling, and this is playing counter to what we have seen elsewhere. give us a sense of why this is significant. overall prices were down but only slightly. the most significant data was clothing and footwear. the price division was around 8%, so a high numberand division was around 8%, so a high number and that is showing that you are getting to the end of summer sale season and retailers are struggling a bit to clear that excess stock and are having to reduce prices, so not a particularly good lead indicator the sum of the clothing retailers. and we know they are already struggling on the high street. what we have seen in the pasties they have tried to maintain margin and not discount because that is what keeps profits healthy. this suggests they are having to cut prices to get sales through the door. ideally, they wouldn't have to cut prices and keep mar

phillip morris is in talks to reunite with altria. how the potential merger could affect the

altria up four bucks. philip morris down nearly three bucks. an all-stock merger. they are talking about it. mike murphy is here. d.r. barton is here. ashley webster is here, of course. we are going to start with the landmark verdict against j & j over opioids. okay. this morning, i believe j & j has opened on the upside. yes, it has, up a buck and a half despite that verdict. you, d.r., you say you would buy it at $129 despite the verdict? >> i would. i believe what we are going to see, it's going to go to appeal. this may even get overturned. because this is somewhat -- it's not somewhat, it's hugely a political issue about who can be punished for this much more complex issue. j & j is going to do their marketing and the things they do at the highest level of any pharma company. they are going to be the last people in line to get nicked with things like this. they have a broad portfolio. i like them for the long term. stuart: okay. this stock, j & j, has lost 5% of its value since august of last year. i think i'm accurate in saying that. but you still like it for

splitp morris and altria from each other a decade ago. now just after all these reports this week, it became clear, and they acknowledged they wanted to recombine forces to help launch this new type of e-cigarette device. since 2014 inied other markets around the world. emily: just yesterday, we interviewed a researcher who was part of a study that concluded safer-cigarettes are no than traditional cigarettes. take a listen to what we had to say. >> to know whether it causes lung disease, you have to wait 30 years, especially with those young kids taking the risk. there is a strong association between lung disease and those levels, and it increases those levels, so they are at risk of lung disease. emily: lung disease is one thing. seizures are another. tell us about the reports the fda has been getting about seizures. them thewere three of fda focused on early on when they were just starting to look at this in october that we learn from these internal fda documents. there were two from parents of 16nagers, both boys, 15 and -- they were

close morris and altria to a merger. they hope to complete the deal in less than six months. phillip morris owns about 50% of the combined company. home exercise start up peloton is going to go public. it will likely be the year's biggest ipo. the company seeking a valuation of at least $8 billion. it is likely to help make 2019 a bumper year for public offerings. it is already set to be the best since 2014. that is your bloomberg business flash. matt: annabelle droulers bringing you your business flash. i want to quickly bring you -- break some news on toyota. toyota and suzuki going to enter into a capital alliance, enter into a capital partnership according to nhk. not as big a deal for toyota, which is the second biggest carmaker in the world, as it is for suzuki, which probably makes so few cars in your market that i am guaranteeing you can only name two models maximum. toyota and suzuki together will enter into a capital alliance, according to nhk. anna: don't test me on those models. let's talk about what's coming up. we have earnings from the biggest banks in china th

. >> in this case, have altria looked at what juul was doing for three years and they joined in with juul to go ahead and market and advertise to youth, and to get them hooked on their ecigarettes, when touting to governmental agencies that this was an alternative to tobacco smoking. >> so far juul and phillip morris have not commented on the lawsuit. >>> this new video shows a southern california jewelry store owner fighting back against would-be robbers. check it out. surveillance cameras caught a sledgehammer wielding suspect breaking the glass case of a jewelry shop in santa monica. the owner jumped into action there, grabbed that suspect, even ripping off his sweatshirt. now we is see his face. three suspects were arrested, they were in a waiting car. a fourth suspect was also arrested nearby. >> it is quarter to 7:00. >>> new today a southern california woman is accusing walmart of discrimination. the riverside customer said she feels singled out over black beauty products being kept in locked glass cases. she adds that after making product selections the store associate walked

part of the rationale would be that altria has invested in the booming cannabis market and have some investment in beer as well. they have got an exposure to a broader range of products. this would help philip morris benefit from that as well. there is a lot of geographical overlap. the original split sort of made sense to investors, so there is some head scratching over why they would want to get back together now. although, there are some analysts saying it is a good idea. nejra: what does this mean for japan tobacco? >> this underscores that japan tobacco is trying to play catch up in the vaping market and in the heat, not burn market. alternative types of nicotine delivery systems that are displacing a lot of traditional tobacco in the fastest-growing markets, including in the big markets like the u.s. and japan. this is a big concern for tobacco companies. philip morris has had the fastest-growing product there. that has been hard for them to compete against. market,s from market to because the regulation varies. it's been very tricky for tobacco companies to navigate this globa

i do like altria our ceo is on the board of nike, so we can't talk about it, but the public numbers are already positive to people like nike the consumer is in great shape it's hard to have a recession with a very strong consumer. >> nothing concerns you about the consumers? >> i can't say nothing, but broadly speaking we have real wage growth. the high end is doing extremely well frankly, is the quintile is the bottom quintile from a egalitarian point of view wonderful, and frankly good for the economy. >>> dot miss the deliver alpha conversation the biggest names in investment and finance, tickets are on sale right now. a. >>> okay we have about 33 minute toss go before we get to the close today. all the markets, as you see, are up we have your last-chance trade before the close. >>> and the state a.g. from louisiana joins us a group of states are looking toauhi an investigation into big tech. that when "closing bell" returns. i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. a

no one is talking enough about that altria gave them money here is this lord jones, the brand, he's been able to really -- a lot of guys say they have brands. lord jones is the brand that people use and i think that this is the one that goes down for tilray, you buy it. >> they did say they would be having some supply deals announced in the coming months is that something you can pin your -- >> i know there are a lot of people who think that some of the more consumer packaged goods companies have to do something we can't touch this until we know that it is legal everywhere they just keep referring to that that means they're not going to do it. look, i have to tell you, the thing driving sales in this kind of illicit market is spiked seltzer. everybody wants to know who has spiked seltzer not as many people talking about spiked cannabis drinks don't know if anybody had them on the roadside. >> why did constellation get out in front so much >> they believe it is going to be legal they're not as oriented toward the hemp market. when it is legal it is going to displace -- $250 billion worth

make no mistake, juul now partnered with tobacco giant altria is driving this epidemic even as they come before this committee and pose for holy pictures. congress waited far too long to start protecting children from cigarettes. history is now repeating itself with e-cigarettes. our inaction combined with fda's licensee is doing an entire new generation of children to nicotine addiction. most parents care when the teenager is lost in the cloud of vape smoke. does congress? i look for to working with you on a bicameral basis to address this public health epidemic had on. i will close by saying this. i never dream when i went after taking sigrid smoking off of airplanes, in my third term in the house, for god's sake, that i'd the chance to win, but i did. the net result of it because of unforeseen development was a dramatic change in america in the view towards smoking or we step in at that moment pilot and took on big tobacco. the question is, can we work with bipartisan political will to take on big vaping now for the benefit of the young people sitting behind me and those across americ

. >> did it hurt to take billions of dollars from altria? >> certainly it hurt us in the health and scientific community. certainly it hurt us. >> why do it? >> we had lots of internal debates on this in terms of the pluses and minuses associated with this. this was not, you know, something where there was, you know, no downside in terms of perception or affiliation or ability. we understand that. >> the downside is public trust? >> no. i think there's a lot more pluses tore. listen, my most -- most of my ration al fale for this is they going to help ak settle rate our mission. i have access to retail that i wouldn't have otherwise, access to research i wouldn't otherwise, access to 17 million smoker database i wouldn't have otherwise, that i can target smokers and talk specific le to those who are adult smokers. so there's a lot of pluses in terms of fulfilling our mission that go well beyond any financial contribution. >> do you ever run into parents who think you're just a blood-sucking vice industry. >> i see perrinets all the time not f

and because the philip morris subsidiary altria is an investor in juul, the lawsuit argues the allegedly deceptive marketing constitutes racketeering. both companies saying the claims have no merit. in a statement juul writing they have launched an aggressive action plan to combat underage use which included shutting down their facebook and instagram accounts and enhancing online age verification. juul also denies marketing to youth saying the product was always intended for adults. meanwhile, that 19-year-old who filed this lawsuit says he seeks to represent all illinois minors who use these devices. >> could you have a big impact. gio, thanks very much. >>> we turn to an urgent manhunt under way in california for the suspect in a brazen college campus stabbing. 57-year-old steven chan was working on campus as a consultant. he was killed on the first day of classes. police believe the victim and suspect knew each other and that this was a targeted attack. they are now using every available resource to try to track down that killer. >> oh, my goodness. >>> now we have new clues in the ur