>> an economic optimist. >> i am. it has paid off. >> just stating the facts. >> and the pull back in twitter was viable, is now turning back up ready to make a new high >> thanks for watching the exchange begins now. thank you, scott here is what is ahead. 24 hours to go before the fed's decision on interest rates we'll debate what the market is expecting and what the repo spike everybody is buzzing about wi deraitheir plans. and wework postponing its listing. we'll get in to that and the latest comments from the halftime report. and plus hbo max coming out with a bang. will this quarter turn things a around for fedex and reviews are in for the new iphones. but we begin with the markets. >> so it sure does feel like a market that is waiting for that

fed interest rate announcement we are currently holding just about the same levels we have pretty much all session long this morning the dow off just fractionally, off about 0.2% s&p 500 just about flat. and flat for the nasdaq as well. still right below that 3,000 mark for the s&p zch so as we watch markets develop, maybe that wait and see mentally carries until the fed decision tomorrow one place that is not seeing stability these days is the oil market right now we are off about 5%, still though seeing that huge move higher in prices just over the last couple days if you take a look at the move though, remember we have been up precipitously to the move in crude, but still down about 20% from the highs that we've seen earlier this year. so we'll watch that. and then one other place to watch shares of kraft heinz, they sold another 25 million

shares shares off by 4%, they are the second biggest shareholder behind berkshire hathaway, but it still remains the biggest shareholder with a 33% stake we'll see if those shares reacts more positively near term. >> a lot of drama there. welcome to "the exchange," everyone more good news for the economy today. industrial production rebounding strongly in august, manufacturing jumped half a percent. home builder sentiment hit the highest level of the year. and house speaker nancy pelosi telling our jim cramer that democrats hope they are on a pass to yes when it comes to the new and a ha new and a hanafta deal but pessimism still a main theme? >> seems to be that way. despite outstanding production numbers, global fund managers are increasingly pessimistic about the u.s. and the global economy. so we had a monthly survey by bank of america, merrill lynch, global fund mager survey, over

100 global fund managers, 38% expect a recession next year the highest recession risk since august of 2009 fund managers continue to expect low growth and low rates and that central bank stimulus will continue to be needed all over the world. biggest risk not surprising it still remains the trade war. but concerns that central bank policies will be ineffective are also popping up along with a bond market bubble and concerns about a slowdown in china independent of a trade war what is the biggest boost to the global markets what would be the thing that would help the global markets the most surprisingly a german stimulus package would be the biggest help to stocks around the world followed by a fed rate cut here in the u.s and more infrastructure spending but wait a minute, in china. not here in the u.s. that is a bit of a surprise. >> yeah, german fiscal stimulus, those headlines will be very

popular right now. thanks very much, bob. we're just about 24 hours away from the next fed decision, a rate cut is widely expected. the question is how big will it be and how many more will we get this year. steve liesman is here with the results. >> what comes after widely, if it is like everybody >> 100%. >> totally expected. and in fact if you look at the cnbc fed survey, you find 100% of our 43 respondents expecting a 25 basis point cut to be announced tomorrow on the second day of the fed's meeting 92% say the next rate cut comes in december. so there will be one more this year and then by the end of next year, we'll bring it down to 1.6% from where we currently are around 2%. now, should the fed cut or not that is one of the questions that we asked. what you see is that 51% say yes and some percentage ever that wants the fed to cut 50. meanwhile 44% say the fed should not do so. and the fed should be on hold.

now, why do this in tell us why. 25% of the rationale comes from the trade war. 25% from the weak economy. 24% from low inflation and then coming down, we've left a few out here, pressure from the market not many see it as pressure from the president. economist from oxford writes while the fed does not want to underwrite the ongoing trade war, it has no choice but to buffer the economy they look for four rate cuts and art hoe fan from national securities writes economic data and financial conditions are not exactly streaming for rate cuts, but you someone at 1600 pennsylvania avenue sure is. >> comettey priced in, that is how we'll describe -- >> completely,ly, totally,

entirely >> and let's bring in jeff and also greg. let's kick it around a little bit more jeff, what do you make of the rate -- frankly, even though it is wonky, curious for everybody's take on why the spike in repo funding means. if the fed is losing control of short term rates jeff first on how you are positioning amid all of this >> so we have been relatively positive throughout this year when everyone was extremely negative going in to 2019. and, you know, the fed is part of that. it is not everything the data has continued to be fairly positive moderating but still positive and i think that the fed is doing a pretty good job of taking a moderate approach given that there are these mixed signals. you have headwinds in the form of trade and slowdown in europe and yet the u.s. economy is still growing and expanding.

so i think a very measured approach, a 25 basis point cut would be appropriate and of course i'm the same by that said what they did last time was appropriate and then i think in a nanosecond after i went off the air in a conversation with you, president trump slaps on the announcement that september 1 we'll have massive tariffs and all of a sudden the market puked a little bit there. so be careful what i have to say. >> and we all aull have whiplasc from that event. it does raise the question of which is more important. what do you think? >> i think the trade news would be a lot bigger. it is pretty much factored in like you guys have been saying, that it is going to happen i would imagine boards across the country of u.s. corporations are sitting around thinking, you notice, these low interest rates action we need to be borrowing money and looking for acquisitions how do we make our businesses

grow faster. so i think that that is probably conversations that you are seeing all over the place. and that is bullish i believe. >> and in the short term, but is that not what you want is to see in terms of discipline in the longer run >> yeah, you don't want to get overleveraged. but companies with really good balance sheets, which there are quite a number of those that are in a slow growth environment, what a way to buy small and mid cap companies to boost your growth and as the fed continues to ease, it is only going to get easier out there for corporations look at the pricing of housing a year ago, houses were 25% more expensive because of interest rates. so these are all big tax cuts to the general population that it will show up i believe especially as we go into, you know, the christmas season >> and you have a couple names you like norwegian and entry level home builders.

>> and i agree with all those picks. >> the fed mass to provide more liquidity to the market because even though it has cut rates and about to do so again, it can't keep rates down. they are drifting up because of problems in the short term repo markets. is how much of a pblem is this for them if they are losing control of setting that short term policy rate >> i just talked to somebody in this market and they are very critical of the new york fed and new york fed not reading the writing on the wall. this is something that was somewhat predictable how much extra liquidity was needed the fed came in this morning short rate spiked up, it is unclear at this point if the new york fed has control there is no person in charge at the desk right now the person at the new york desk which does these operations left, there is an interim person there now, apparently a search committee looking for that other person there are doubts among people in

the market that the fed has control over this. >> when you just laid out this whole beautiful thing about the rate cut that might be coming tomorrow, if the rate doesn't actually move down, that cut doesn't accomplish a whole heck of a lot >> i think that's right especially in the short he saenf the market good news is that this is not a credit risk problem. >> absolutely. >> this is very different. this is a technical problem. and it is even something -- forgive the wonkiness, it is a stupid thing we were told that the market sets its rates in the morning and the fed only comes in in the later morning. so by the time the fed came in at 9:00 or 9:30 today, dealers were already funded. if that happens again tomorrow, we'll have the same problem. it will spike in the morning, the fed will have to come in we have no indication from the new york fed that they are aware of this problem. >> a great point and one of the many little anecdotes that

illustrates the disconnect >> and we have no answer from the new york fed on that >> and jeff, you have great picks here as well bigger cap size. best buy, pick donald's, target, micron what is your favorite and why? >> so amongst the ones that you just mentioned, i would probably say best buy but what i like is the collection that you just mentioned because we have offense and defense. and i think you need the cyclical names like a best buy or a target, but then you have the safety of a mcdonald's or other defensive names. and i think it is not a time to be heroic and run to purely cyclicals or purely defense. but to actually be very balanced and that is how we're thinks is. >> and shout out to your mom who is watching. 93 years old and all over those projections tomorrow

thank you all. appreciate it very much. and be sure to tune into "power lunch" tomorrow for the fed decision and immediate reaction followed by jay powell's news conference beginning at 2:30 p.m. eastern time here is what else is ahead here on the exchange. coming up, wework drama continue as the company delays its ipo. and does it ruin their chances of ever having a successful ipo. plus one be market strategiest says there is a clear loser if oil prices pick back up and the answer will surprise you and a big win for hbo max. >> so you you're like one of the beautiful mind genius guys >> yeah. >> the company gaining the rights to one of the biggest shows on broadcast television of the last decade. we'll discuss what it mines for the streaming wars

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it has been a troubled ipo journey for wework and now their parent company is officially postponing the ichlpo >> and it is really a tale of pretty failed governance

and almost of the highest order short of something fraudulent. and that is really quite a shame. >> dropped the f word, not that one. but leslie pickers is here and the rhetoric out of silicon valley has been quite sharp. why do you think that people are on upset about what is happening with this ipo? >> i think they are just trying to distinguish wework from what they are not they are trying to say wework is a company that had all these governance things and yes they rolled much of this back, but tried to put them out there and our companies would they ever do that so that is what distinguishes wework from the rest of silicon valley rightfully or wrongfully >> and to regulators as well this is partly in time when you have everybody in the world looking to crack down on tech, i think that they view this as

don't go be the poster child for behavior that we don't feel like we are guilty of so whether or not wework has anything to do with google or facebook, does it just become a high profile way for those who want to rein in their practices say look at the excesses here? >> i think you bring up a good point. in order to disclose s-1 filing they needed s.e.c. approval to do that. they have been going back and forth as every ipo company does answering questions and giving feedback with regulators and so forth. so the s.e.c. put its stamp of approval onis s-1 meaning they put their stamp of approval in the first draft of the filing >> a lot of which they already tried to improve upon. and you were potentially

supposed to be covering the start of their road show today >> yeah, and here i am >> but it wasn't like this is a long -- it could have been today and they pulled that plug. >> i have been told no fewer than six different days that were supposedly the start of the road show, although always given the car yot thveat that that cod change so it had been, you know, this tentative date, no, this tentative date, no, this tentative date and i think that the market got that same kind of message as well which if you are an investor, you are also trying to arrange your schedule if you want to participate in a road show i want to be there for the lunch and meet the executives. so the longer that got postponed, the more kind of on-again/off-again drama >> and now waiting another month if not more so

leslie, thanks glad you're here coming up, another death linked to vape vaping. what it is that is proving to be so harmful there is a lot of misinformation out there, we'll ask a doctor for some answers and plus when there is a disruption to oil markets, lng stocks stand to benefit, but today shares are losing ground so where are the opportunities in the energy space? meg gentle joins us next hmm. exactly. liberty mutual customizes your car insurance, so you only pay for what you need. nice. but, uh... what's up with your... partner? not again. limu that's your reflection. only pay for what you need. ♪ liberty, liberty, liberty, liberty ♪

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welcome back to the exchange here are some of the movers this shower shares of match higher after being a buy at citi. the bank labels it as high risk but says that user perception does continue to improve and there is compelling opportunity for match in the international market shares of zynga also climbing about 3% and shares of gm are up about 2% as talks between the automaker and uaw continue gm auto workers still striking, but as phil lebeau reports, the automaker is still positioned with inventory for 90 days gm shooting down reports that the white house is getting involved in the negotiations and now to sue herera for a cnbc news update >> here is what is happening retired israeli military chief benny gantz who is running even

with prime minister netanyahu party voted this morning he is painting netanyahu as divisive and r. kelly back in court in chicago, a judge declining request to increase his bond but the judge ruled that his $1 million bond would stay unless there is a change of circumstances. general mills is voluntarily recalling 5 pound bags of some gold medal flour e. coli was found while sampling bags those with a better if used by date of september 6, 2020 are the subject of the recall. and a new study suggests when a pregnant woman breathes in air pollution, it can travel to the placenta during pregnancy, particle pollution is linked to premature births and low birth weight, but scientists don't exactly know why. you are up-to-date

kelly, back to you >> have to walk around in a bubble how do you avoid air pollution >> it is hard. >> takes a village sue, thank you very much shares of tellurian is falling, this and other players in the space are hoping to take advantage of the energy disruption caused by the attacks last weekend brian sullivan is in houston with meg gentle, the ceo >> thank you very much what a time to be here of course when we planned to come here, nobody knew what was going to happen in saudi arabia over the weekend everything changed monday, today things are going back. meg, a wild 48 hours >> no kidding. >> before we get into tellurian stuff, how does what happened over the weekend change the perception of oil and gas? does it improve in the sense

that ours is viewed as a relatively safe haven in. >> of course as everybody knows, major tragedy in saudi arabia over the weekend and really highlights the importance that the u.s. can bring in terms of offering the strategic petroleum reserve but even other supplies and production as we become one of the largest exporters in the world for not only oil, but for natural gas. >> and as you build out your drift wood facility in louisiana, do you have to rethink security and investment in things like security, has it altered your calculus, what happened over the weekend? >> we've always designed the plant with security in mind. so we don't have a change per se i think it does highlight takes it so important, the energy security of any given facility, but really also of just worldwide supplies as our economy more and more for growth relies on the

conveniences of electricity, transportation >> you rely on natural gas, natural gas largely relies on oil. without getting too into the weeds politically, there have been calls in fracking or reduce the u.s. investment in the oil and gas industry again, i look around here, there are tens of thousands of people. what is the reaction from inside the industry, why does this country need to -- how do we approach it politically? what is the smart balance i guess. >> think about what we've been able to do over the last several years as the u.s. became a net exporter of oil, and associated with that oil, every bit of oil that comes out of the well, some natural gas comes out with it. and so we need the infrastructure to be able to carry that gas to markets. we'll grow our gas production another 25% in the next five years. and we have to have pipeline and export infrastructure to make that happen. so as an industry, we have got to support that infrastructure

or we'll impair oil production >> the growth expected to go from 4 billion cubic feet a year to 30 billion around the world the growth in five years, but it takes money. your projects are big. and they are expensive are the capital markets still available, are the customer money still available right now, are you sensing any kind of an economic slowdown or hint of nervousness from a global macroeconomic perspective? >> not at all. it has been incredible the resiliency of the capital markets. we will need to invest about $150 billion in the u.s. alone to support the natural gas industry and there has been amazing liquidity in capital markets and interest rates have been helping that. >> meg gentle, a pleasure to have you on the show and kelly, you look at the growth and everybody is optimistic on the industry, but what happened over the weekend has been the topic i was chatting with some representatives from saudi aramco's gas division and they wouldn't give me any information

are on when the plant will be back up, but they arecertainly here and as you might imagine, they are getting some attention. >> a ton of it right n brian, thank you very much thanks to meg gentle as well and don't miss plan i didn't's chairman live on "power lunch," we'll get his take on the economy, the fed, consumer and of course basketball and his new book, shut up and listen here is what is ahead on "the exchange" -- >> ahead, hbo max snaps up one of the biggest shows in television in the last decade. fedex faces some head winds as it gets ready to report. drivers protest following a new policy announcement. and the reviews are in for the new iphones. chge is all ahead on the exan woman: my reputation was trashed online.

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let's catch you up on a few big headlines that should be on your radar time for rapid fire and here to take on the headlines and we're fired up about the streaming wars have we finally hit peak hbo max just struck a deal to

stream "the big bang theory. sources telling julia that the company paid half a billion dollars, this after netflix secured the rights for seinfeld. and what else is left in terms of like really big like banner important series and shows to grab >> nothing and i think if you are losing "friends" and "the office," no better win here than seinfeld. greatest show of all times that is a great move for netflix. i fundamentally feel thesere shows that people turn on for background noise because we've seen every episode ten times >> seinfeld i will listen to but i agree that lot of people will put on "the office" or "big bang theory" kind of for like that hug >> yeah, instead of some dark deep devastating original content show that is on netflix right now. >> i don't know if i would consciously put on -- i don't know if i would connecticscioust

on t"the big bang theory" or "th office." but it is on a syndicated show that is on some channel that i turn on as babb ground noise but i would say this, every time we say something is peak because you couldn't pay more money for it, it just keeps going higher >> half a billion does seem to be the magic number with these legacy shows >> big bang was most watched show for like 12 "friends," "the office," these are the cream of the crop. we've seen a big win for hbo max. who else if netflix -- if this peacock which is the other announcement from our parent company nbc, i mean, is there anything left in terms of the land grabbers?

>> the legacy shows, i really didn't see another big one but i will to counter your point, i do go to net fwliks to watch t netflix oig to watch "the offic" they have office, parks and rec and the saved by the bell reboot so interesting ones coming down the line but legacy shows, i don't think that there is another syndicated comedy out there left to buy up. >> andget is that tinder is coming out with its own streaming. original video series. it is swipe left original content platform, no word on plot yet >> tinder and chill? >> a lot of places we uld go with that one. but anyway, that is it for this one. let's talk fedex the company set to report earnings after the bell and it has been a very rough year the stock down 33% while rival

u.p.s. has held steady executives called for patience citing weak international revenues and today it announced that it is hiking rates and surcharges in january >> and this is a transition year, this physicaltal year, for fedex. we're getting the first quarter after the bem today. slowing global economic growth, right? and trade head winds which are definitely hands down a drag for this company yet you are seeing the volumes continue to increase i would expect to hear about that on the call today the question now, can you raise rates, can you drive enough cost out of e-commerce to make that much more viable option especially as you see something like the express segment continue to see weakness because of this global macro backdrop. >> and a lot of the weaker parts of the economy have been the freight indicators, even manufacturing this morning was good, but if fedex is raising rates, is that fundamentally telling us that they have pricing power, kind of the macro piece of that right now is okay?

couldn't did that if it was super weak i would think >> i would think they do tend to raise rates every year now keep in mind there is specific contracts that are worked out with different major customers. but certainly it seems kind of positive it position would seem like the expectations are very close for this earnings report after the bell, so we'll see what specifically they have to say. >> this is about not just fedex rating raises, just like other airlines when you have a fare increase at one airline, you want to see if others do it as well so fedex may just be the jumping off point, this idea of pricing power. if there really is, it will be legitimized by other air cargo freight, any other carriers raising their prices and then it might be a systemic issue about raising costs or anything else transportation costs in general haven't been bearing it out just yet. every time you think that it will be it doesn't >> and the gap between fedex and u.p.s. is fascinating.

so maybe they can turn things around let's talk uber. it says that it will stock locking drivers out of the rides sharing app in new york city during times of low demand why? on to comply with new city regulations aimed at boosting drivers pay while easing traffic congestion divers f drivers created man made traffic jams around new york city this morning to protest the move. not the best way to win the popularity contest >> definitely not. >> were you stuck in it? >> a little bit. >> so the odd thing, new york is trying force drivers off the app to force traffic to improve. i mean, it all feels like chasing its tail >> we talk about the regulatory environment in california around the raise share companies. new york city has been ground zero whether capping the number of cars, whether it is minimum pay for drivers. now some of the additional

actions that they are taking, it is one to watch closely because i think that in of the same way as you see the regulations playing out in california, what happens in new york city could be a template for other major cities it doesn't actually do the job it is meant to do, cut down on congestion >> and who is driving it this is a protest against those regulations for higher pay and for traffic issues and the idea here is that you have this kind of movement about whether or not you should control -- if you should restrict supply. it is a very opaque issue. you try to choke off supply, and great for the drivers who are there, but it doesn't give you equal access to all drivers. and if you do that, i'm a consume he rer, i'm her, i'm n, but i want to use it more if there are good prices.her, i'm , but i want to use it more if there are good prices.er, i'm nu i want to use it more if there are good prices.

i can't imagine this is good for the long term. >> and they want to cut back on the amount of drivers that can actually cruise around and look for people they said the cruising rate is 41% right now. they need to bring it down by 5% and eventually 10% i had no idea that drivers were spending that much of their time looking for people because there seemed to be so many people who want to use the services >> how about creating a holding pen or something >> like the cellphone lot at the airport. >> yeah, just go there and hang. >> it gets to the fundamental question of how do you define employment, work, and what those benefits need to look like in this gig economy, how people want to make their money and how government is responding >> and just getting in the way all right. let's talk the iphone. reviews are pouring in for the new lineup todd hazelton, come on down, my friend you've given them the once over. >> you get an iphone, you get an iphone, and you get an iphone.

>> just like oprah >> that is the 11, the regular 11 and the pro and then i have the big one. >> hers is color coordinating. >> you have two dots, you have three dots >> and they come in like ten colors >> yeah, a bunch of colors what apple did this year and i think it was very smart, focus on battery life and cameras. those are the two things that consumers care most about. because when you look at it, people love their iphones. and then they love them so much, dom i know you've had your three, four years and you are not up 2k3wr5grades >> i still have a 6. what i like about it, it doesn't cost me anymore money to have. what i don't like about it is everyone takes better pictures that be i do with their fancy cameras which is why todd has

convinced me in his story on cnbc.com to up grade my phone to the iphone 11. but there is a caveat. ment biggest concern i had about the product was that it is not 5 fwch g. >> 5g doesn't exist yet. >> it kind of does and it will next year. so why don't i wait until next year to upgrade? >> you are both right. 5g rolling out maybe half the country 2020 so we don't have to worry about it too much, but there is the early upgrade program so you can buy this year's phone and next year send it in and they will give you the new one >> but how much of a markup? if i buy this year, do i have to pay more for the new one when it comes or just trade it in? >> technically no, but if there are new features and the price is no longer 1099, then yes. it would be a larger loan and you would pay more >> by the way, we asked if you could do a little photo comparison so one photo using the super

sophisticated new 3 camera look here >> this is what is cool. we can zoom in all the way what this camera has is the ultra life camera and then you can go regular ultra and then you have two time zoom. the iphone 11 just doesn't have the two time zoom. >> so the whole point of the three cameras instead of the two is you can zoom in further >> right but the real fun one is the ultra wide because we fit more into it. so i was taking pictures this weekend and -- >> the same place for these two photos >> yeah, i'm standing in same place for these two. and you don't have to do anything crazy >> and the battery life is better >> yes >> and it just keeps turning off and the camera is not great, so

i think you might have told me i have the 8 >> yeah, similarly sized, four hours more than the 10 s and one hour more than the 10 r. which i think it is smart of apple to switch the naming to iphone 11 instead of 10 r because i feel like people thought they were getting a a budget phone and so now they are thinking the 11 for $699 >> say one thing about the charging cords >> yeah. so the iphone 11 still comes with the slow charger but supports faster charger. the one they have always used. >> so what is the fast charger >> fast charger is 18 wat oik and oig and it works with the 11, a 50% charge in 30 minutes and reviews are very good. i like this, night sight is a new fun feature. it brightens up the scene at night. and everybody thought the battery life was really good too. i think a lot of people are

saying that it is another iphone that happens every year. until we get folding phones or whatever, that is just what it will be. and when samsung tried a folding phone, it broke. so i don't know about -- >> we appreciate it. much more at cnbc.com. oil prices reversing today after saudi aramco said that it will be able to recover from the attacks faster than expected, but with tensions in the middle east still simmer, one tech giant could take a big hit who that is, next. gence 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.

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bill, tell us drum roll please who you think will suffer from higher oil costs here. >> well, one obvious company is the one that is becoming the largest logistics operation in the united states. and that would be amazon you will notice that fedex raised their price they can raise their price by raising the cost of prime. but prime is a trivial percentage of the total cost of those deliveries so if you are a real active prime member, you might take 100 deliveries, 150 deliveries a year, that is costing them $700 on a $120 prime membership and 24 energy cost increase, in fact if this is sustained and goes up for a while, that will make it hard to make hone when you are trying to deliver stuff for free >> although it is coming down a little bit but how much of a headwind in general do you think this rotation we've started to see over the past week from momentum

and growth into value could be for a name like amazon >> well, you know, we didn't need to pick on amazon because they are one of many, many, many companies that have caught the momentum trade and one of the many companies that have been part of what you would call the halo effect. so in general, we believe that companies that are in the value camp but would benefit from a stronger economy coming on main street rather than in pal low alleghe allegheny -- palo alto and seattle and boston would be very beneficial to a series of companies. and you and i talked about the banks, home builders, you know, we like wells fargo, and on top of that, people are afraid of health care because of politics and the opoid lawsuits there are a lot of value bargains in health care that not

even the value people will touch. >> and one name in health care that you like? >> amgen they are a wonderful company and a great multiple with a fat dividend and a very bright future >> bill, thanks very much. always good to check in with you. appreciate it, sir today is the second installment of our closer look at vaping. ahead, we'll hear from the chief executive of consumer advocacy group about what the public needs to know. losing my independence. mmm... good. so i've spent my life developing technology to help the visually impaired. we are so good. we built a guide that uses ibm watson... to help the blind. it is already working in cities like tokyo. my dream is to help millions more people like me.

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welcome back take a look at crude right now which is extending its declines and hitting session lows after the saudi minister said they resumed more than half of their oil output he also said they should be back to full capacity now a seventh person has died due to a lung illness due to vaping we'll take a closer look at the health risk as they probe into 380 case of illness. that's next when the exchange will be right back [ applause ] thank you.

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welcome back seven people have died of a lung disease related to vaping. the cdc is ramping up its investigation into those cases alex clark is ceo of the

consumer advocate for smoke free alternative. it's great to have you both here i want to begin with you because you think there's substances in vaping products that are dangerous to health. what are those >> what we know flavorings, we know they can have some toxic effects. we know some of the nicotine is dangerous. >> you've said there's a recent study that looks at glycerin some speculate the products at fault might be counterfeit or the substances might include things like thc or other additives. do we know what the answer to

that is? >> i think we don't. we really don't. it may be a numb of things tlp was a recent study and it was an early study a lot of the work we see is in animal models. that's concerning because those two are in almost e cigarettes i don't think we know yet. i think we have to be cautious >> these products, some of them were intended to help people get off much more harmful. is there risk of an overly broad solution >> our main concern here has to be the 13 million people who switched to these products who are because of the scary headlines are actually being frightened into returning to smoking.

>> you feel comfortable saying even with illnesses and deaths we have seen and tlefl of confusion about what's causing them, alex >> definitely. i use these products every day i was a smoker for 21 years. i switched to vaping on a whim i'm what you would call an accidental quitter i've been using the products for six years. i haven't had a cigarette yet. i feel confidentable recomme recommending them. >> how do you respond if it is helping to improve public health in situations like alex? >> first of all, i commend alex for quitting i think that's great i think we all agree that smoking is really evil as a pediatrician i come at this from a different angle my concern is looking at the incredible surge in teenage use of these products. over 20% of kids as of last

year these are kid who is probably would not be smoking cigarettes. there's a number of concerns about that my focus is taking them away from the youth market. my personal opinion whether they work as a aids, i don't think we have enough information. i think there's room for scientific inquiry having the number of products available to teenagers is not the answer to that >> alex would you be on board with solution that banned nick like this for teenagers and what about banning flavored products? >> the national age sale is 18 no child should have access but i think we have to come to terms that they do have access young people are using these products we're not going be able to ban our way out of this problem. with need to be equipping kids with information to navigate life

playing to their strengths and ma helping them make better decisions. >> appreciate you joining me >> thank you that does it for the exchange today. we join tyler for power lunch. thank you very much. we'll see you over here in a moment welcome, everybody here is what's new at 2:00 for a tuesday. we are officially 24 hours away from the big fed decision tomorrow will another rate cut reignite this rally what will it do for business in the country? we wait for wework reminds me of brexit it says it will go public by tend of the year we have a special work on wework look who's coming to lun