tv The Exchange CNBC July 15, 2019 1:00pm-2:01pm EDT
pipeline like -- >> an shays ya. >> health care has been an underperformer but trading two turns to the s&p and i think can outperform. >> chrome castle. >> schwab. >> that does it for "halftime. "the exchange" begins right now. well, thank you so much you very much. welcome, everybody to "the exchange." here is what is ahead. the market's big test, earnings season kicking off this weekend. expectations are weak. could it put an end to this record run plus, aiding the chinese military that's what one billionaire says google may be doing. how and will his accusations catch washington's attention plus, san francisco's proposed ceo tax and why tiffany's luster may not last and coffee with no coffee that's ahead in rapid-fire but we begin with today's markets and dom with the numbers.
>> as long as the caffeine is in there. the markets could use caffeine we're still holding above the 3000 mark for the s&p 500 even thought dow, nasdaq and s&p are off fractionally marginally. still keep an eye on what's happening with the s&p and four-point loss. copper, a big focus today. why? because it is seen as an economic indicator for global demand and copper prices are on the rise, they're off their best levels of the session but at one point hit their highest levels since july 1st why? that rebound there has to do with better than expected data on the chinese economy, industrial output there and retail sales even though gdp in china fell to its slowest growth rate in 27 years and our stock of the day, chipotle mexican grill because chipotle over the course of the last five years has staged a roller-coaster ride where it lost two-thirds of its
value and reclaimed by three times going up to where we are now, a record high and put a star next to them there. we're off on the session now but still a very big run for a stock that's been beleagued. big turnaround story at chipotle back over to you. >> welcome, everybody to exercise exclusive as we mentioned i'm tyler mathisen in the afternoon for kelly evans. earnings season kicking off today and it could be a make or break one for the big rally. we've seen so far this year, so what are the expectations? for some and the down to bob pisani. >> the bears believe second half guidance will be cautious and lower than expected due to slower global growth and related raid and tariff issues bulls argue dovish global central banks and a good chance some kind of trade deal will be reached by the end of the year will win the day ultimately, the main issue is earnings for 2019
are essentially flattish but the s&p 500, wait a minute up nearly 20%. that made the market pricey now valued at over 17 times forward earnings that's historically very high. lower interest rates are definitely helping make stocks more attractive relative to bonds. that's a big help but much of the guidance will hinge on trade, the dollar's recent strength and hopes for a stronger economy watch for j.b. hunt, this will be reporting after the bell. the largest intermodal rail and truck shipper in the u.s. them's have a lot to say about shipping which has been soft and pricing which has also been soft tyler, back to you. >> thank you so much we appreciate it so will the market overlook at the signs of weakness here and abroad and put its faith in the fed and interest rate cuts joining us is jack ablin at cresset. welcome. patrick, i'll begin with you in my note, i keep seeing the
word wobbly, your word, with respect to the u.s. economy. what are you seeing with the wobble >> oh, the recent economic data, you know, people may focus on the last gdp number and the first quarter but that disguised a significant slowing of momentum and a whole host of different numbers. earnings were up marginally but eight out of 11 sectors they are down year over year so i think that's one of the reasons why the fed is looking at cutting rates and why the market is eagerly anticipating that. >> quick follow-up how much of the decline in earnings is the result of unfavorable comparisons because it was the first quarter of last year or maybe the second quarter of last year, where the tax cuts really started to play and that that tonic has been taken out. >> well, you're not going to see
another year like last year where you had at one point, you know, 30% year on year rise in earnings per share driven number one by the reduction in tax rates but, number two, by the big surge in corporate buybacks so both of those are receding in terms of driving factors in earnings growth or earnings per share growth that's okay. but the broader issue is that the economy is slowing and that a number of economic indicators have peaked. now that means that it doesn't mean we're going into a recession, doesn't mean things are falling off the rays but does mean that people are interested in what the outlook is going to be. >> let me bring in jack patrick here and see what he says. do you see it the same way, jack do you see the same wobble and if you do or don't, what should i do with my money now that we are at the midway point of the year >> no, i don't
i nderstand the wobble, certainly patrick's perspective and got a boost of growth over the last four months that pushed us well beyond our potential growth rate which i see as about 2% to 2 1/2% 0.7% growth in labor force but 1.5 a little higher in productivity so as long as we stay roughly at the trend growth while it sounds wobbly and tepid we could continue to, you know, baby step forward and continue this expansion. >> can the market -- >> what that means -- >> can the market move meaningful higher, jack, if the financials don't play ball >> no, and that's really one of my thesis of concern that is, financials have underperformed and forward look indicator into the s&p overall it is the circulatory system of our financial market and as long as net interest
margins continue to trend lower, it just creates more and more head winds for financial so that's something i'm going to pay pretty close attention to when the banks report this week. >> i'm going to ask both of you to answer quickly with your best idea or strategy for the second half of the year patrick, you go first. >> the most important thing out there, this is not a market gorging on risk. it's a market that is pricing -- trying to avoid risk and the thing that is expensive out there is risk off, not risk on. >> treasuries, right treasuries among them? >> exactly you've got $12 trillion worth of bonds out there that are at negative interest rates so even if despite the fact that stocks have rallied, despite the fact that things are in my view looking a little wobbly you're probably better off going along for the ride than seeking a safe harbor. >> best idea from you? >> i would say probably on this trade thing a barbell between
emerging markets, maybe x china and small -- u.s. small caps this way if the dollar drops you get your benefit in the emerging and if it rallies then small caps should outperform large. >> jack ablin and patrick chovenec kayla tausche coming up but first the latest on congress' rush to raise the debt ceiling ahead of the summer recess >> well, steven mnuchin and nancy pelosi are scheduled to speak on the phone sometime today on the path forward for the debt ceiling the two spent about 12 minutes on the phone over the weekend and then pelosi publicly issued her position in this letter. she said in addition to the debt limit they must also reach an agreement on spending priorities based upon the principle of
parity that's equal amounts for defense and nondefense spending. now, congress is short on time to strike a deal, treasury is warning that it could run out of cash at the beginning of september and that's because corporate tax receipts have been coming in much more lower than expected they've been very volatile so lawmakers are realizing that this means that they will need to vote on something before they leave for summer recess which begins in just about two weeks, tyler, nobody wants to miss their summer vacation. >> absolutely not. it gives them a deadline ylan, thank you so much you very much. turning to news that president trump is considering moving his commerce secretary. kayla tausche has detail sfwhs president trump considered replacing the commerce secretary at least twice before but now that the administration is lost a legal battle over the 2020 census ross could leave as soon
at late summer finalizing the census was the last on his list and after a supreme court defeat his chief of staff for one is already interviewing for new jobs. the commerce department did not deny the reporting and in a statement praised ross' tenure leading the agency and larry kudlow did the same today. >> wilbur is an old and dear friend and done a great job at the commerce job. >> the friendship between ross and trump has been fraught since trump took office with friction over management of the census bureau in addition to ross' proclivity for tv interviews and several different trade issue. >> this would make another cabinet opening presumably with someone in there in an acting capacity at first. as you look at the list of potential replacements for ross who would be on it >> tyler, because this is something that has been talked about at previous instances in the administration, there's sort
of a running short list for people said to be interested in that job at earlier times it included linda mcmahon, the acting chief of staff mick mulvaney, even the u.s. trade representative robert lighthizer though he has several irons in the fire. the name that came up in several conversations this week is ray washburn he led the overseas private investment corporation until march. he has a senate confirmation and still serving the president on his intelligence advisory board so that's one name to watch. >> kayla tausche in washington, thank you. here's what else is ahead on "the exchange. >> announcer: coming up, amazon's prime day isn't just about amazon anymore how others are cashing in on the company's big day. plus, one billionaire investor says google should be federally investigated why? and dozen his role on facebook's board have anything to do with his call and coffee without the
for amazon but this year, competitors are throwing their hats in the rick we will explain that with lauren thomas who is cnbc.com's retail reporter and courtney reagan welcome to both of you what's different about prime this year and why is prime so prime to amazon? >> so prime this year is longer, longer than it's ever been, 48 hour, the first year they started in 2015, 24, 30 then 36. we have two full days, in 18 countries, one more than last year, though most experts think 60% of the prime day sales will come from the united states and really important to amazon because of two reason, number one, it's a recruitment vehicle for new prime members because you have to be a prime member to take part in the deals that's right >> how much does prime cost now. >> $119 a year there is also -- >> i should know because i pay it. >> see, but you don't. it's automatic for you i bet you spend a lot of money on amazon, probably more than
your non-amazon counterparts there was a study that said on average a prime member who shops on amazon will spend $1400 a year if you're a nonprime member but shop on amazon, you spend $600 you're a much more valuable member. >> and they're collecting $119 for every member there is. >> that's right. they need to incontinue -- >> do you know how many millions. >> in april of 2018 jeff bezos told us that there were 100 million worldwide. we don't know since then it is estimated 63 million in the united states. >> lauren, let's turn 0 what amazon is trying to push this year among other things it is fashion including their own brands and brands they have made deals with. >> yeah, exactly so i don't know about yourself i think most of us when we think of amazon today, the word fashion doesn't tend to come to mind now even though amazon's expected to do more than $35 billion in sales this year in apparel a lot of that is largely from basic items like white
t-shirt, socks, underwear, the things you think of, oh, i'll go to amazon when i need something in a pinch. >> staples. >> that's what they're good at but i think it's evident amazon is trying to become a destination for high-end fashion, working with influencers now on social media. i think to reach this younger generation of consumers to get them thinking, no if i need a n dress maybe i'll go to amazon. i don't think that mentality has really switched into, you know. consumers' mights. >> when i grow up, i want to be an influencer. that's all i care about. >> me too. >> so these would be brands that they they have invented. >> so it's fascinating when you dig into it. amazon has, again, we don't realize this but incubating their own fashion brands internally and have more than 60 today that sell everything from leggings like lululemon or, you know, suits for men, and so this
is something that it's evident they're working toward out of all their private label, the majority they devote toward apparel so definitely jeff bezos and his team are committing money toward that. >> how is the competition fighting back? i'll ask both of you > sure, i mean i think it's interesting to look at both walmart and target arguably, the two biggest competitors to amazon today in this space they've both incubated brands on their own. walmart has, target has as well. walmart has gone the approach of outright acquiring smaller apparel companies so modcloth. bonobos. >> did you know walmart owned them >> i bought them at nordstrom but i had it in the back of my mind -- i thought this was a walmart brand. >> it is >> i think they try to keep that separate for good reason maybe. >> i think they do they don't advertise that. >> exactly what is the competition doing?
>> i'll bring up another point sometimes the competition if you can't beat them, join them levi's sells directly on amazon, for instance, they're a first party vendor so they want to make sure that if consumers start to get used to the idea of buying amazon branded apparel or say, hey, i'll gbuy their jeans, they're at least in consideration. maybe it isn't a competitor but a space i need to play in as well and put my products there as a first party vendor. >> thank you very much still ahead, the nih reports that 37% of 12th graders vaped last year and that number is rising the ceo of juul labs give is his response as part of cnbc's latest documentary "vaporized. later, peter thiel is the co-owner of one of the most secretive companies but taking
far this year. plus, shares of slack are higher after being rated overrate in new coverage at barclays bullish on revenue growth prospects despite what it calls a demanding valuation for slack. shares of gilead and galapagos in the green after gilead said it would increase its stake in that dutch biotech firm. galapagos up more than 18. well, 17% on the day now to contessa brewer for an update if here's what's happening this hour. congresswoman ocasio-cortez responds to trump's tweets he said they should go back to the plays they came from >> fortunate tunfortunately thee feels about immigrant, naturalized citizens or not in this country but i think what i would tell him is that it's time to move on from him and it's time to move on from his
conception of an america that we have tried to move past for a long time. >> closing arguments under way in oklahoma's case against johnson & johnson and its alleged role in the opioid crisis attorneys say it acted responsibly. the first of its kind, could be a barometer for other states facing similar opioid crises. hong kong chief executive carrie lam visited police officers injured in sunday night's clashes and described the protesters as rioters and thanked the hong kong police force which she says was on the front line to lisafeguard law a order. >> contessa, thank you so much here's what's coming up on "the exchange." >> announcer: ahead, democrats may be prepares to prevent big tech from launching currencies citi says tiffany's sparkle this year can't last san francisco wants an extra ceo tax. > and paying with an implant
it's all ahead in "rapid-fire. but you're not mad, because you have e*trade, whose tech helps you understand the risk and reward potential on an options trade it's a paste. it's not liquid or a gel. and even explore what-if scenarios. where's gate 87? don't get mad. get e*trade and start trading today.
time for "rapid fire." topic number one, democratic lawmakers reportedly drafting a bill barring big tech firms from offering digital currencies or financial services of any kind reuters says the bill is aimed at companies that feature an online platform along with annual revenue of at least $25 billion that would seem to apply to facebook which just announced plans to launch its digital coin libra next year. what would this do isn't paypal a technology company? isn't it big isn't it in financial services. >> it is, but it doesn't meet say all of the criteria that some of these proposed pieces of legislation are going to lay out there. what they're going to do is target in specifically in megatech companies that have a presence other than their primary business is not financial services so talking about social media you're talking about internet. talking about communication services paypal is one of those companies that's certainly in the mix in conversation there
but it's not necessarily a social media company that may fit the parameters in the proposed early stages of what is going on but i would say this -- >> why should the government be making these kinds of -- you can't go into this business decision. >> that's my point look, it's a draft of a proposal that is up for discussion. so it's not even a bill so we don't know how much seriousness -- this is the lobbyists' full employment act to get them all back in dpshgs c. there is no purpose other than government to say you can't do this, there's no explanation on why or what good it would do or what the alternative solution would be to the problem that you're allegedly trying to solve with this legislation so i just don't see -- >> they're worried about tech companies having too much control. during the interview i had with tyler and cameron winkle wvoss they see others inveiling their own currency they're taking aim at no just facebook but others.
>> i can see why the government cares about new currencies, over which they would have no control. the means of exchange in a society, the means of exchange in commerce, the concern about money laundering and illegal use of currency, i can see a government interest there. i find it much harder to see a government interest in joining, say, google from offering other kinds of financial services. >> right >> sure, anything -- >> trading or research >> anything that disrupts or competes with the u.s. dollar or any other reserve currency, i mean -- >> i get that. >> but to your point it's true is the government in the business of legislating what companies should or should not do as a part of their business lines and that's going to be the key here >> apple pay, where does it fit in >> basically preventing them from doing any kind of e-payment system china exploded with the we chat
payment system and how are they excluded what the problem is they're trying to solve i don't see. >> the next one, tiffany shares down today, downgrade at citi. the firm cutting the stock to neutral from buy lowering its price target to $15 -- by $15 to 100 bucks. the firm says there is risk in tiffany's second half. turnaround plan and sees no reason to believe that chinese tourism is going to snap back. they slashed its full year profit outlook i'm tired of talking about this. let's move on. what do we think an old story. >> it is and people are looking at it in outdated terms. so, in other words, we know that china tourism to the u.s. is slowing and the visitors by china in those stores is slowing. that is not the new model for the chinese luxury consumer. right now china has basically outlawed the ability of chinese to go and buy luxury goods overseas so everyone's building stores in china. china has radically reduced the tariffs that luxury companies have to pay to sell in china
tiffany has 35 stores in china. >> how are they doing. >> okay in china the problem there is the brand recognition and status is no what it is at lvmh and some other companies. the problem they're having that china slapped a tariff on tiffany but not the other luxury goods dealers like from europe, jewelers, et cetera, because it's a u.s./china thing. >> i wonder why i was going to say. >> it's not a broader china tourism -- >> no. >> now it's about selling in china where they have a good store network but hurt by tariffs. 25% on tiffany jewelry in china. >> the chinese have cracked down on the market that the personal shoppers they employ if you're rich and this china you send this personal shop story london to dubai and paris to buy all these expensive goods like a gucci watch and hermes jacket and bring them back into china but the government didn't like that model so they've been
cracking down on that market they're trying to incentivize the chinese shopper to buy those products inside the country. they don't want them buying it outside and bringing it back in. >> this is not going to be a tiffany hit job. i'll take the other side and talked about the negative aspects of it. the one thing citi analysts did point out from a brand perspective maybe not in china per se but overall they have positioned themselves from a brand perspective to capitalize longer term so management situated the company where tiffany will be a longer term success story, not just the risk/reward metric it is right now in that axiom. that will be the big key here so from a brand perspective it may not have that luster as lbmh or caring brands or any of the fancy ones. >> cartier >> it's still good >> let's move on san francisco introducing a new tax aimed right at ceo's's wallets a year after the largest tax increase in the city's history. they're proposing if you are the
ceo of a company and your pay is, what -- >> 100 times the median earnings of your san francisco employees, so not your overall workforce but your san francisco employees which does something interesting here, it means that companies like mcdonald's, chase bank, wells fargo, you know, some of the retailers, abercrombie & fitch will be subject to the tax because they have highly paid ceos but tellers, clerks, salespeople making low wages who won't be hit by the tax are the people, the san francisco politicians are allegedly blaming for the problems which are the tech companies and the reason why, those workers in san francisco get paid a lot. >> get paid a lot. >> right >> so -- >> what if the ceo doesn't live in san francisco >> doesn't matter. >> doesn't matter. >> is it strong enough of a bill for these companies to move out of san francisco or are we not there yet. >> it won't mean they move out what it might mean they either have -- it's a small amount of money, like 0.1% to 0.6% of
their gross receipts so total sales in san francisco so for most companies it's a fairly small check to write to tax authorities. it's very symbolic, so i don't think -- but it is interesting that it's taxing companies based on what the ceo who doesn't even live there makes relative to the overall workforce. >> taxing the company or the ceo. >> the company -- but the company's sales in san francisco. >> the sales in san francisco. >> only a portion of their business done in san francisco is what is subject to all of this rigamarole at this point but, again, it's kind of like the original facebook, you know, legislation trying to target these companies. they're tailoring legislation to a specific part. >> if they use the phrase ceo, i'm changing my title from ceo to managing director. >> there you go. >> i'm not the ceo i'm king what do you mean >> they want to use the funds towards mental health problgram so there is a silver lining? >> we heard about beyond meat.
a group of scientists claim they have perfected the perfect cup of coffee simply by ditching the beans. the team at atimo coffee say they have reverse engineered coffee beans to produce the world's first, quote, molecular coffee featuring the same caffei caffeine we talked about that, dom. the same color and aroma without the bitter or acidity motivated to find a sustainable a alternative to bean farming available by the end of the year are you a big coffee drinker. >> aim eye huge coffee drinker got in at 5:00 a.m i live by coffee why change it if it's not -- >> would you have concerns about drinking something that was wholly sort of genetically engineered i don't know when that's the right phrase i'm a coffee snob so i already buy coffee that is at the higher end so i'm not concerned about a bitter taste that's not a concern i go for the higher luxury
>> there is a controversy. people don't want to eat gmo products so forget about genetically modified you'll physically created out of nothing molecularly, i don't know if people want to do that kind of thing. if you're talking about sustainability there are so many efforts right now with coffee that you can take the grounds, you can take that kind of thick, compose theft, recycle them. if is it's the growing conditions or fair trade policies maybe that's big but i don't know how big of a target market that addresses. >> milkless milk, coffeeless coffee we don't know what's in it and when they describe what's in this coffee i have no idea what they're talking about. compounds that are found in foods. >> yeah. >> that noarrows it down. >> is it carbon based? >> i'd give it a try at the very least. did i ever tell you this, i have not gone a day without having a cup of caffeinated coffee since i was in second grade. >> second grade? >> second grade. >> i remember sitting at a tray table in my parents' house
watching "captain kangaroo" and having a cup of coffee. >> that explains all your caffeination >> all right, finally sounds like something straight out of "the twilight zone" thousands of people in sweden will having microchips implanted in their skin to eliminate the need to carry items like cash or credit cards. it's about the size of a grain of rice costs about $180 to have it implanted and it's not just for payments, the chips also store emergency contacts, medical data, even social media profiles for networking opportunities. apparently demand is so high the country's leading chipping company can't keep up. >> we're becoming a human credit card >> we are a device. >> security concerns really are up there. i mean, can you imagine if -- now a criminal doesn't want your purse, they want your finger. >> get near you with a scanner and scan your thumb. >> very particular country awe the cell phone records and numbers are publicly available you can call the tax authorities and get anyone's salary in
sweden so it's a small country. there's a huge amount of trust in institutions. i don't think you could apply this to many other country. >> all i would say is many viewers know i have two dogs, both of my dogs are chipped and so it sure seems like we're moving that way. >> is your daughter. >> my daughter is not chipped yet. i will not chip my daughter but moat pie dogs are chipped and feels like it was a safety thing but i'm not sure they want tracking for human beings out there. >> i would wonder what you would do if you changed your credit card or information, how would you update it on the grain of rice >> all rfid stuff. >> it's wireless supply don't want that. >> put your hand on a pad and changes it right in there. >> that was fun, folks than thank you very much. treasury secretariry mnuchin i will give a briefing at 2:00 p.m. eastern time on cryptocurrencies which we were just talking about we will bring that to you live
let's get a quick check on the markets. the dow is lower right now but up ever so slightly, 0.08% 22 points lower. also lower the nasdaq and excuse me the nasdaq is higher by 0.05% and the s&p down roughly the same amount percentagewise as the dow. the biggest sector laggards today. let's look at laggards they are energy, financials and industrials all with fractional declines meantime, morgan stanley is looking to capitalize on a trillion dollar blind spot for investor, multicultural and
women owned businesses they on average raise 80% less capital than businesses overall so what will it take to change that funding landscape let's bring in carla harris, a vice chairman at morgan stanley and head of that group welcome back what have you all done at morgan stanley? you have like a kind of -- this is year three of kind of an incubator program. >> an accelerator like those that exist in the market but we focus specifically on mul multicultural and women entrepreneurs and give them three thing, cash, content, a six-month program with excellent content where we actually leverage the in-house expertise of morgan stanley professionals but also our external network and then we also connect them to our investment banking, sales and trading and other clients that might help scale their business. >> you started with 300 politics and win know it down to ten into which morgan stanley puts its own skin.
>> that's exactly right. that's what is significant the fact that we've never had a supply issue if you talk to people today about why don't you investor more with women? why don't you invest more with mul multicultural entrepreneurs, the first response you get, i can't find any how big is that market well, let me say it again clearly. there is not a supply issue. we've had no trouble at all getting lots of companies to actually apply and then choosing only ten. >> a lot of these here are companies that are small now they're growing. not companies that we've heard of a lot are software companies, some are medical related one way or another but let me drill a little particularly on what a company has show show you to qualify as mul multicultural or women run what does that mean? >> yes, so they either have to have a founder or someone in the sea sweep, cto, mainly the cto or founder has to be mul multicultural so fripp african,
hispanic-american, asian-american, american indian or has to be a woman or could be both in this case and all have to be tech enabled and have to be proof of concept. either they have revenue or could be prerevenue but have to have shown there's efficacy with respect to the product they're offering >> do you take an equity stake in these businesses. >> yes, which is common practice for all accelerators most take a single digit percentage of a company. usually somewhere less than 10% and some cases less than 5%. >> there are ten sort of finalists here that you'll be working with do you -- i know you don't want to say exactly how much money you've put in but it is -- is it roughly the same amount of money in each of the ten or do some get more it's across the board. the same amount we put in all of the companies and the percentage will depend on where they are with respect to their -- >> i thouink we know the answer why is there such a deficit in the funding sources for women owned or multicultural run
company. >> yes, i think it's been widely reported on the fact that the vcip community has been tight knit and closed and if you didn't grow up in it or don't have specific ties to it, then you don't even get a look in most cases and that's why it's been so difficult traditionally for both women and multicultural entrepreneurs to get access. >> there are some companies, uber among them that have tied executive bonuses to advancing mul multiculturalism in the employee ranks. i won't ask you to comment on what uber has done but as a general tool can that be an effective way to bring more mul multiculturalism into the sea sweep. >> what you're talking about is insearchal versus external, right? >> yes. >> talking about tying the compensation to promoting mul multicultural folks within that organization and you are right that is one tool that a company could use. i mean you would like it to be a
part of the culture as it is in some companies but -- >> not have to incentivize it. >> but the contact finish. >> if it works, it works. >> if it's going to be helpful use it as a tool. >> thank you. >> thank you. >> good luck despite juul labs' insist continues its vaping products are for smoker trying to quit teenagers are the biggest customers of the product, the ceo of juul labs will weigh in on that issue with o cl urar quintanilla next and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life.
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juul labs, the maker of the popular e-cigarette is under increasing scrutiny from state governments and congress for business practices that put the company at the heart of the youth vaping storm carl quintanilla on the teen recent juuling on a trip to a factory. >> juuls are intended to help adult spomokes to switch to his product, bit it's the most popular vape among teens and it's biggest demographic are
millennials who have never smoked we ask what his response is. if we did this tour today, with a parent, right? of a teen who had been using or who had been addicted, how would you sort of defend all this? all this scale all this production, all this growth >> first of all, i would tell them that i'm sorry that their child is using the product it's not intended for them i hope there was nothing we did that made it appealing to them as a parent of a 16-year-old, i'm sorry for them and i have empathy for them in terms of the challenges they're going through. >> burns hopes juuling turns out to be less risky but admits there are concerns about the impact of chronic vaping >> we have not done the long term clinical testing we need to do >> the fda has not reviewed either the juul or any other e-cigarette maker, for that
matter, on the market, and the product's efficacy and long term effects are unknown. to tell what researchers tell us about early studies, tune in opportunity. it's getting to be a bigger and bigger story all around the country, all around the world. >> it really is. i was just saying off camera, that my older son works for a vape juice selling company and takes it very personally that there has been such government uproar over who's using, and he says we do not advertise to kids, we do not want kids to do, but inevitably, underaged minors are vaping. >> it's a big argument among manufacturers, there's a sense that teens are going to be teens. they're going to text and drive. they're going to try to sneak alcohol when they can. they used to smoke in the boys room, as the song used to say, and they're going to vape. but if the category is really going to survive, they say, and
help adult smokers quit, they have to get this thing under control. it's a big reason why juul talked to us >> we'll be watching tonight my son sure will, the special tonight. america's vaping addiction, right? did i get the title right? >> that's right. >> thanks, carl. good to see you in the afternoon, my friend good tech titan peter thiel suggesting google be investigated whether his board seat at facebook has anything to do with it, next
peter thiel, a billionaire investor and co founder of the data analytics firm palantir, spoke at the national conservative conference in washington on sunday according to a report from the event by axios, thiel called out google for, quote, seemingly treasonous activity, accusing them of working with china and saying the company should be questioned by both the fbi and cia. google released a statement saying, quote, as we have said before, we do not work with the chinese military let's bring in david mccabe, he reports on tech and policy for axios. is google's response there,
david, welcome, first, is google's response there a kind of nonresponse, in other words, they may not work directly for the chinese military, but if you're working with the chinese government or with chinese companies, you may indirectly be benefitting the chinese military >> well, that's, i think, a great question obviously, they are flat out denying they work with the chinese military there have been allegations of indirectly aiding the chinese military one thing i should be pointed out is thiel made these allegations basically without any evidence as well so whether or not google is playing semantics. it's important to note peter thiel has not presented evidence for his argument which is that senior management has been infiltrated by foreign intelligence services. >> that is what he said in his statement. they have been infiltrated how many foreign intelligence agencies have infiltrated your manhattan project for ai
how does senior management consider themselves? have they been considered to be thoroughly infillerated and is that why they have engaged in seemingly treasonous decisions to work with the chinese military and not with the u.s. military he presented no evidence to support any of these claimser correct? >> it's true google has backed off some of their work with u.s. military over employee concerns. in terms of the claim of foreign infiltration, he's making it, but the insinuation is clear he hasn't said this is why i think it's true besides their actions are sort of de facto support for that, which seems to be the premise of these three questions he presented and said the fbi and cia should investigate. >> he's the founder of palantir, i assume he's still on the board of palantir. is he on the board of facebook this is a big component. he's still on the board of facebook facebook, of course, is a competitor to google, itself has
tried to get into china or looked at ways to get into the chinese market facebook has declined to comment on what he said last night but certainly, it's very clear conte contextern terms of their statements >> what does palantir do and its relationship with the u.s. government >> it's a data analytics company. they do corporate work, government work, and they do work government contracting with the u.s. government, i believe certainly government contracting is a big part of their business. >> so thiel is a strong supporter of president trump how do we think the president would feel about what mr. thiel said >> the president, of course, seems to think that it's a political winner for him to attack big tech. we saw the social media summit last week, which was saying well, conservatives are being censored by these companies. google included. he's also pretty aggressive towards china. i think thiel is sort of hitting both of those points and he was speaking to a crowd that was supportive of the
president, sort of politically aligned with the president it makes sense he would take this approach. >> david, thank you very much. david mccabe with axios, we apreexate your time. i'm going to do what i normally do at this hour. i'm going to join melissa in just a minute on "power lunch" which begins right now >> we'll see you in a minute, tyler. i'm melissa lee. we begin with breaking news. treasury secretary steven mnuchin set to hold a news conference any moment otthe white house about crypt okurancies we'll bring it to you live as soon as it begins. ylan maya joins us not too many details out so far. >> this is a little bit of a surprise, but fed chairman jay powell said this is an issue that fsoc intends to take un, so we'll see if the secretary provides us any additional information there. we know that david marcus, the head of calebra for facebook will be testifying on capitol hill tomorrow. his testimony came out today in which he struck