they bought back 30% of shares in four years. that's incredible. >> delta 4.2 billion and free cash flow this year. great name. >> what have you got >> jb hunti bchlb hunt. >> keep on trucking. >> let's do it. >> that does it for us "the exchange" starts now. thanks, scott. we will pick up that truck and keep on trucking down this record high. i'm brian sullivan, welcome to "the exchange. here's your lineup today from tesla to beyond meat and even rockets once sort of left for dead companies are red hot. has the market gone completely insane or is this momentum mania here to stay plus drug price hikes, regulatory risks and a hot topic in the democratic debates. we'll speak with the ceo of pfizer about that and more in an exclusive interview. an pple's encryption woes

and a friends-y. we'll get to that but we begin with as we said yesterday, every time seema mody is on the program, we hit a new record high. >> nothing to do with me all right, all three averages hitting record intraday highs. the dow back above 29,000. even as oil prices move higher, we want to highlight three big names that are actually under pressure, baker hughes, schlumberger and halliburton stay away until management creates a clearer path and estimates are too high we'll have to see if a similar tone is being set for other sectors as well. take a look at peloton, actually moving higher today. up by over 4%. the company's retail speaking today about its new store concept with added features, making the argument that peloton

is much more than just a bike company. the stock is up 46% from its october lows back to you, brian. >> that plays perfectly into it. seema, thank you very much because the rally marching on. look beyond the headline numbers and you'll see a big trending, something we'll call momentum mania. look at some of these naemes. beyond meat, smile direct. also tesla, 27% gain in six trading days apache, the worst performing s&p 500 stock over the last decade, up 26% virgin galactic, it took off as well, up 20% luckin coffee up 19. uber a 15% gain this year. and pinterest a 12% gain so far in 2020. what are these moves, if anything, telling us about the state of the market and investor psychology joining us are ryan dietrich,

and michael farr michael, i'm not going to judge some of these stocks and say some of them are bad but the reality is most of them were ignored or down for months since their ipo. suddenly they're the hottest thing since sliced bread has the market lost its mind >> i always think the market can remain irrational longer than you can remain solvent that one comes to mindi when you've got stocks moving up and a high momentum market the way we've had at the ending of the year and beginning of this year, money is looking for new opportunities. money is looking for places to go maybe following babe ruth's advice to hit them where they ain't. these things that haven't received a lot of attention are receiving a lot of attention now. is it warranted? some of it i think is warranted. some of it's the momentum. some of it's the piling on and following of the herd and that can go to excess those excesses can be pretty

expensive if you don't have solid fundamentals underneath. >> ryan, the only reason i say it like that is not because those companies deserve to go up or down. by the way, the market doesn't care about deserve, the market will follow the tape as it is, as you know. but i do know this, earnings growth estimates are coming down as the market keeps going up if stocks are realistically supposed to simply be a future measure of corporate earnings, that's what you're buying, does this make sense to you >> brian, first off thanks for having me back how about momentum, congrats to lsu last night that was a lot of momentum that team had you mentioned earnings, right? earnings in 2019 are going to probably be flat they were up over 23% two years ago. stock market down. so if you even it out it makes more sense you talk about momentum here momentum names tend to lead in bull markets

look what's leading now, cyclicals, industrials, financials those are the groups that if you don't see a recession on the horizon, like we do not, that's a positive thing look at yields globally, look at what copper is doing emerging markets have done great. there are some signs that growth could be higher than most people think. the market is telling us, hey, there's not a recession. these momentum names, a lot of them are stretched like you mentioned. but still, this bull market is alive and well there's a lot of participation and that's a good thing from our view. >> but do these types of names, the stocks many of them like smile direct were just thrown out. we talked about it every day suddenly now they're up 30%, 40%, 50% in the matter of seven or eight days. who's doing that buying?mentum s following the tape when it ends, how's it going to ending >> it usually ends badly when you have momentums

for three months in a row the s&p hasn't moved 1% up or down other times we saw something like that, january of 2018 and october of 2018. think of what happened the couple of months after that. momentum did get hit things are good, we're not naive but people are optimistic. maybe it's time for some of these frothy names to have a pull-back and that's perfectly normal in an upper cyclical bull market. >> but, brian, when you see stock markets making new highs, we've got momentum driving this market, it's always tempting to go ahead and say i want to own the hottest thing out there and go along for the ride, but i don't think investors in good conscience can do that you have to look at balance sheets, you have to look at earnings you have to know that there's going to be some there, there on that company's balance sheet and income statement when this things corrects, and it always corrects it's no time to venture out to the thin branches of risk

playing the momentum game. you have to be very careful and very disciplined how you invest your money when the stock market is making new highs. i'm looking at names like -- i still like the banks but i'm also looking at names like valmont. valmont is a company, it's a small market cap company it makes towers, it makes stuff for infrastructure, highway safety, irrigation equipment it's kind of an old-style boring company, but 17 times earnings, growing earnings at 10% the next couple of years, probably 15 times next year's estimate has a little bit of a dividend these kind of names that aren't as hot i think are places where you can kind of look to make money and know that there's some net underneath. >> valmont i like it vmi the ticker i knew the tigers would win, one of them. congratulations, ryan. they have more momentum. they're the beyond meat of college football ryan, thank you. but they're probably -- who knows.

anyway, they got real meat behind them. let's turn from wall street to washington. in less than 24 hours we're expecting the united states and china to sign the phase one of the highly anticipated trade deal cnbc learning today that there is much more to the deal than just ag purchases. for more we are joined by brian gardner, senior vp and director of washington research at kbw, a division of stifel brian, we thought this was some softball soybean deal. there actually may be more meat under it than we thought. >> i think some of the early indicators are proving to be true, but we still need to see the details on this. i think the big question is what the intellectual property protection look like there have been promises from china in the past on easing back on forced technology transfers and protecting international intellectual property protection and it hasn't followed through i think we've got to see the actual results and how it plays

out over time. but i think the deal is a positive for the short term because it does remove some of the tariffs. it increases ag purchases, all good, but longer term none of this is resolved for the longer term so we could be back in a couple of months to more disputes over this i think only time will tell. >> do you think that there will be more disputes or do you think that this phase one deal will open the door to phase two and phase three and the final phase or is this all she wrote is this all we're going to get >> i'm a little pessimistic. i am -- i want to be cautiously optimistic, but i think that we need to see results from china on how they are going to follow through on intellectual property concerns i mean i think there's been a lot of talk on the tariffs and ag purchases i think that's all well and

good but for the bulk of u.s. companies that do business in china, whether it's pharma or tech, financial services, to the extent that you're forced to share your technology with china when you attempt to do business there, i think that's a bigger deal only time is going to tell on how meaningful this deal is, what the enforcement mechanism is, how serious china is if china is not serious on this, and i am skeptical, then we're back to threats of tariffs, trade disputes, and market disruptions all over again. >> who has the leverage? >> i think each side has a little bit of leverage clearly u.s. firms want access to a large growing market in china. china wants foreign capital in, so i give the edge to the u.s. let me just digress for a second i think one of the bigger developments over the last day

or so is not this deal, it's actually an agreement between the u.s., the eu and japan to collaborate in using the wto, the world trade organization, in dealing with china i've always thought it was a miss take to deal with china unilaterally because i don't think we have as much leverage there. when the u.s. acts on a multilateral basis with our international trading partners vis-a-vis china, i think we're much stronger. i think that news the last couple of days is probably the bigger news of this week in terms of trade policy and the potential for economic -- >> listen, i'm not as worried about china. do you think these new europe tariffs are going to kick in that's the big one. >> i do think that is the under-the-radar dispute that investors have not been paying attention to usmca has overshadowed it, the china disputes have over shadowed it. i remain concerned it is a market risk that i do

not think is priced in and that's why i'm more concerned built. it's not gone away this could raise its head, whether it's before the election or not, it's tough to say, but it's not something that's going away quickly >> okay, brian gardner, we appreciate your views. we'll get you back on soon as you said, it ain't over yet. >> yep. >> and neither are we. we are just getting started on "the exchange. here's what else is coming up. coming up, as esg investing becomes more and more prevalent, we'll tell you why you shouldn't count oil and gas companies out. plus, from price hikes to potential government regulation, we'll speak with the ceo of pfizer about what's ahead for the company and the industry and apple's battle with the attorney general the mattress economy, and a friends frenzy is i ths "the exchange" on cnbc

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welcome back to "the exchange." blackrock ceo larry fink writing in his annual letter that his firm would like to make investment decisions with what is called esg in mind. you've probably heard it, but esg stands for environmental, social and governments basically it has to do with investing in companies seen to be more socially responsible he sat down with andrew ross

sorkin in this morning and here's what he had to say about the energy sector in particular. >> we believe over time we'll see this energy transition some of the biggest energy companies are at the forefront of renewables and working towards that so this is not a black or white. >> here now to drill down on the turn to sustainability in energy is raymond james senior vp and energy research analyst, pavel mulchinov. as somebody who covers the oil and gas industry, there are many people out there who will probably say ain't no way that any energy company could ever meet the standards of esg because when you're digging up an old dinosaur out of the ground, you simply cannot be the e, the environmental is there any way that that concept is even mildly incorrect? >> so first, the environmental dimension of esg is about half the total esg score which means

we cannot ignore the social and governance these are things like board independence, labor standards, human rights standards, anti-corruption practices. all of these are fairly generic from industry to industry so let's not ignore that. the environmental dimension, yes, oil and gas companies are never going to be as highly screened on that metric as a solar or a wind company, but that does not mean that they cannot improve and in fact many of them have been improving. so among u.s. companies, occidental, which is the only of its u.s. peers to set out 100% carbon neutrality standard, several of its european counterparts have done the same and they're taking substantive steps in that direction, like carbon capture, reducing methane

emissions, reducing water usage. all of these are ways to, over time, become more environmentally responsible. >> are you sort of emboldened a bit by larry fink's comments there's been such selling the last year or two by institutions who say we're going esg, that means we dump all fossil fuel companies. what fink, whose firm is one of the top three providers of etfs that own pretty much every stock out there, it sounds like we're not going to indiscriminately eliminate all oil and gas stocks from our portfolios. should investors find a measure of hope in those comments? >> yes, i agree with that. just put some numbers on this. 26% of all professionally managed assets in the united states, debt plus equity, are already covered by some kind of esg screen that's $12 trillion, by the way, a lot of money of that, $3 trillion is tied to climate, but that does not mean

that $3 trillion of funds are excluding every single fossil fuel stock there are some divestments we've mostly seen this in europe, places like norway but even when funds are divesting, they're very rarely eliminating every fossil fuel stock. they may well be eliminating coal, which is the most carbon intensive. as far as oil and gas, they're usually taking a selective approach, which is why companies that are being proactive on this are able to remain in these funds. >> quickly, do you think -- i'm not asking you to be a psychiatrist for larry fink, but do you think that he means what he says? is there meat on the bone or is it just talk to sound good for esg people >> blackrock is simply the latest of the big financial services firms to get on the esg bandwagon. europeans have led the way but we are seeing more and more u.s. counterparts doing the same, so yes, it's for real.

>> pavel, we appreciate it raymond james. take care. shares of one company soaring because it did pretty much exactly the thing the company was designed to try to avoid doing. we'll explain. plus, it's the health care conference that moves stocks pfizer's chairman and ceo is there and will join you live for an exclusive interview on his company, the industry and maybe a little politics. you can always watch us live on the go anywhere, airport, subway, whatever, on the cnbc app. hexcng bk t"t ehae"acinwo minutes.

welcome back to "the exchange." it is time for the data bank let's talk the big banks in the data bank because jpmorgan chase, citigroup and wells fargo are kicking off earnings season. lots of news to digest jpmorgan chase had a big revenue with bond revenue surging 90%. businesses from the lowest rates -- by the way, shares up 2% on jpm right now. next up, citigroup, a very meaty 50% surge in fixed income trading there. that led them to beat on both the top and bottom lines as well strong results were slightly offset by a 23% decline in equity trading due to what it calls a, quote, more challenging

derivatives environment. shares are up nearly 3% for the big c. and then there's wells fargo oh, wells fargo. all was not well, missing on the top and the bottom line. quarterly profit dropping 50%. the bank blaming lower rates, high legal fees and litigation costs. shares of wells fargo are down just over 4% right now let's step out of the world of money and business for a moment and get to sue herera with a cnbc news update. >> thank you so much, brian. here's what's happening at this hour, everyone toyota is recalling about 700,000 vehicles in the u.s. because the fuel pumps can fail causing engines to stall and increasing the risk of a crash multiple toyota and lexus malls are subject to that recall all were made in 2018 or 2019. eight people were arrested after a fire broke out this morning at a motel in osceola county, florida. authorities say one person faces arson charges. seven others are charged with

battery on a law enforcement officer. the motels owner reportedly said the fire was intentionally set by an evicted tenant. in france, a teachers strike against proposed government reforms to pensions is in its 41st day no classes were held today at a middle school on the italian border as teachers blocked that school joined by colleagues from other schools. if you've dozed off at a sporting event, you're certainly not alone but that's what happened last night to the new orleans pelicans zion williamson during a game against the detroit pistons. the first pick in the nba's 2019 draft struggled to keep his eyes open late in the fourth quarter, but it was a happy ending for the injured player because the pelicans won it happens to the best of us that's the news update this hour brian, back to you. >> just throwing it out there, though, not the best look. >> no. >> not a great look. maybe if the game was at 6:00

a.m. on a sunday morning. >> but he was injured, so you never know. >> sue herera, thank you very much i will let the audience decide. in the meantime, here's what else is coming up on "the exchange." ahead, apple's encryption battle it's a glass half empty for the wine industry. smiledirect club's big grin. and the ceoof pfizer on atwh's next for the drug industry it's all ahead on "the exchange." not what's easy. so when a hailstorm hit, usaa reached out before he could even inspect the damage. that's how you do it right. usaa insurance is made just the way martin's family needs it - with hassle-free claims, he got paid before his neighbor even got started. because doing right by our members, that's what's right. usaa. what you're made of, we're made for. usaa

apple versus the attorney general, a glass half empty, friends frenzy and smiledirect investors are grinning it is time for rammed fire here to talk about it is morgan brennan, frank holland and seema mody welcome. >> hi. >> well, hi. how are you doing? >> i'm doing great, how are you? >> first up, apple's encryption battle the attorney general is accusing apple for refusing to help trying to unlock a shooting suspect's encrypted iphone apple claims it's handed over lots of information. apple says the main issue is not giving help or access to the government but by doing so it could help bad actors exploit

back doors into systems. are you buying this, morgan? >> i think it's bigger than the u.s. versus apple. yes, it's an american company. you can't tell me that the fbi doesn't know that it could be potentially be creating a back door for actors that they'll have to go after as well i think the bigger issue is the precedent it says not just in the u.s. but around the world, places like china. this is the exact argument against huawei, that you have this private company in china that the u.s. government worries the chinese government could access through a back door. >> but this was a foreign national shooting at a military base. >> i'm not saying -- >> you go to somebody's apartment or house, go through their house, look at their bank accounts why is a phone any different than that? >> if you're apple, i think it's a differentiator over the summer in june alphabet revealed android phones have a back phone it is a differentiator and apple has marketed their phones on

offering you that privacy. if you can just offer that privacy, why wouldn't you do it? >> you have a lock on your door, seema and a lock on your phone but the government has the legal right when it has suspicion to have a warrant to go into your home why should a phone be any different than a chest of drawers or a bank account. >> you make a good point, should that same theory apply to phones i think encryption and customer privacy is such a hot topic and has really divided silicon valley from d.c. apple has had a long running battle with the fbi. some other cases back in 2014, 2015, so we'll have to see if they can finding a solution here i don't know if this is worth pointing out, but tim cook has really built a relationship with president trump taking a lot of trips to d.c does he leverage that relationship in a way as he tries to figure out this issue who knows. >> i think the point is that you've got attorney general barr who's trying to get ahead of the trending in tech, which is towards more and more encryption, and is using this as an example to lobby for some

sort of back door -- >> and that is a good point and a good argument. i view a text message like a letter a government can read your letters if they want next up, the glass is looking decidedly half empty for the wine makers. according to industry research, u.s. wine buying fell about 1% last year. not a lot, but it's the first sales drop in 25 years the reason is twofold, millenials are beginning to outnumber the baby boomers and the rise of things like hard seltzers and other ready-to-drink cocktails. >> things like, you don't know what they are? >> i know what they are. >> non-alcoholic beer, which i just -- i don't even understand. i don't get it >> but here's the thing. sparkling wine is up people love hard seltzer. >> what else >> mezcal, what is that? >> you're knocking me because i don't drink hard seltzers and you don't know what that is?

>> you were unfamiliar with the concept. it's a sparkling drink with less calories people like it. >> i remember 25 years ago, i'm going to date myself, people walking around college campuses with a two-liter jug of boone's farm, strawberry hill. >> zima. >> i know zima a lot of people would confuse my name with that, that cheap beer, all the time in college. >> i'll throw out mad dog 2020 lightning creek but i've taken us down a bad path are wine sales going to rebound? >> that is a big question. speaking to a lot of girlfriends, a lot of them have been complaining about getting headaches and because of that they have been switching to white wine or old-fashioneds, these hard seltzers. from a marketing standpoint, white claw and some of these hard seltzer brands have done an incredible job at creating these cute cans that are very marketable. >> they look like something your

kid wants to drink dad, can i have this no, you can't. we had them for a party. but they look like sodas just because they say hard by the way, my 5-year-old is not good at reading, so you've got to be careful with these things. >> top shelf of the fridge. >> or maybe i could teach him to read. shares of smiledirect club surging that they'll sell liners directly to orthodontists. while shares are up about 15% today, smiledirect is still down nearly 50% since it went public. seema, their whole model was don't go to the orthodontist, we got you in the mail. now it's let's go to the orthodontist. >> this is a good thing. they're flexible and willing to try out new distribution channels i think the in office option could open up a new channel for them i am an invisalign client. >> does it work? >> i think it does

i have six more months left. >> can you drink hard seltzer with the retainer in >> you cannot. either way, i think those in-office visits are critical to try to track your progress. >> you've got to adapt, be flexible have you got a beef with this? >> no, you go from direct to consumer to direct to dentist, it opens up the market and it's kind of ironic it wasn't that long ago that you had the orthodontists trade association basically leveling suits against this company, and now it seems like the industry is trying to embrace it. >> i agree but they already had over 300 of these smile shops where you could go in and get it done so it wasn't just e-commerce to begin with they already had brick and mortar stores. >> that's still to the consumer. now they're doing it toorthodon >> you still have to go in so it's the same concept except with somebody that's a professional. it may be a millenial's worth nightmare has arrived.

friends has been pulled from netflix as hbo max takes over the streaming rights hbo max is not launching until may, so many americans are apparently fleeing outdated technology to get their friends fix. get this, amazon says dvd box sets of "friends" have been selling like mad like this one, which apparently belongs to our producer and "friends" fan, joe >> this is yours >> it is. >> how much did you pay for this >> too much, i don't want to say. >> does this still operate in a functional manner? >> i hope so. >> do you use it as a coaster or actually watch the dvds? >> more coaster at this point. >> did this cost more than the dvd player >> absolutely, absolutely. >> this is beautiful >> how much is it, $100? >> how much does this cost >> i'd say retails about a hundred bucks. >> i hope she gets back together with brad. >> sales of these box sets hitting an all-time high in the

past few weeks thank you, joe desperate times call for desperate measures does any of you own dvds >> see, now i'm going to date myself it's back from my boone's hill farm days. i have dvds from back in the day. but i'm a streamer i'm all in on streaming. >> if you had to go five months without "friends" being available on streaming, would you go out and purchase this fine-looking box set >> no, no. >> seinfeld is on hulu right now. >> seinfeld and friends are classics they're institutions >> it wasn't a good show it wasn't funny. >> wow you know one thing i will say about "friends." the lack of diversity in their cast, i mean it just goes to show that this was a show that was created back in the '90s you look at "good doctor" -- >> absolutely fair point, it would never fly today. >> a great show nonetheless. >> but let's be clear, fantastic

program. it's not just my opinion do you know what each of those stars makes today, how much money they make right now? the show has been off the air fop 15 years. >> i'm sure it's a bananas number. >> according to the last report, a billion dollars a year in rights each actor has 2% of that per annum. so each of the six friends makes reportedly $20 million per year each, probably for the rest of their life on that show, which ended 15 years ago finally, casper sleeps ceo reportedly obsessed with gaining unicorn status and derailed three buyouts. sealy and simmons approached them for a buyout but the ceo refused anything less than a billion dollars. casper denies ever pursuing a sale the company just filed to go public but faces stiff competition. are there too many other retailers in the sleep economy

seema mody, mattresses, a billion dollars, will it happen? >> we'll have to see can the market be receptive. apparently the ceo does not want to back away there's a lot of competition i tried out a casper, i ended up returning it. >> why >> it wasn't great for my back i have a very sensitive back that's for a different segment. >> it's not a very meaty mattress. >> i like a hard mattress. i don't like to sink. >> and you sunk in the casper? >> yeah. >> i love them i have a memory foam mattress, i've had one for about ten years. you can't tell the difference. i bought one off amazon. >> not a casper. >> i've laid on so many different ones, you cannot tell the difference it's like a cup of coffee. the only thing that differentiates it is marketing but in this case you're covering it with a sheet. nobody knows >> i have two caspers. i got them because they were inexpensive, they came in the box, i just moved into my house. it was easy peasy. but purple innovation which trades on the nasdaq, about $565

million market cap, they are profitable casper is not. >> he wants a billion dollar market cap. >> so we'll see. there's comparable out there in the market publicly. >> so you can make it cool, you can say we're going to disrupt the mattress industry. we're two guys that wanted to reinvent underwear or socks, it's every commercial, right good luck to casper, i wish them nothing but the best mattresses, a large part a commodity. frank, you've got to go home. >> i don't like the show. >> you've got a computer, don't you? throw it in the computer >> i don't think my computer has a dvd -- >> it will play. we work at a tv station, man we can make it work. morgan, frank and seema mody, thank you very much. shares of boeing reversing course and they are climbing higher today despite reporting its worst annual net orders in a decade we'll dig into the biggest stock story of the year in boeing, next woman: my reputation was trashed online.

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welcome back to "the exchange." take a quick look at the markets. we're losing a little bit of steam here, down about 50 froinfrom our highs. minutes ago a report the chinese tariffs might stay on until after the u.s. election despite the deal being signed tomorrow one or two line headlines getting more information in. it did move the market a bit we'll bring you more as we have it still up 95 but about 55 points off its high of a moment ago. it is no surprise that last year was a terrible year for boeing, but it was one of the roughest with net orders as well, the lowest level in decades. their commercial plane orders came to a net negative 87 after allowing for cancellations and changes to earlier orders. the company received only 54 new orders boeing also lost its top spot to the european rival for the first time in eight years as airbus

racked up a net 768 orders last year analysts estimate boeing has been losing around $1 billion a month because of the grounding of the 737 max shares today were initially negative on the news but they have turned around just a bit, up fractionally. pfizer underperforming the pharma industry as a group last year, the stock down 10% pfizer's new ceo will join us from the health care conference with what he and his company need to do to rntu things around this year. that's up on "the exchange" next relationships. when you use location technology, you can see where things happen, before they happen. with esri location technology, you can see what others can't. ♪

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let's head back out west to the jpmorgan chase health care conference, which is where we find meg terrell who is joined by albert bourla, pfizer's chairman and ceo meg, take it away. >> brian, thank you so much. albert, thanks for being here for your first-ever tv interview as pfizer's ceo. >> thank you very much, meg. happy new year to you and your viewers. >> you've been in this role for just over a year pfizer is going through some transformations. you did the big deal combining your off-patent business with mylan. you bought a targeted cancer

drug company where would you say we are in the progress of transformation for pfizer >> yes, it was a very busy year. we started with three businesses as you said, we very quickly took deliberate steps to strengthen each one of them. our consumer case, for example, our business was very strong in the u.s. but was subscale in europe and we didn't exist in japan. on the contrary -- so putting together, we made the biggest by far consumer health tech company in the world similar with upjohn. >> that's your off patent business. >> that is our off patent business combined with mylan it has commercial capabilities in places like asia and china. but mylan had a great pipeline

with injectables, by logics, sprays, but they didn't have presence in the places where really the market is going well. by putting together the two, not only are you creating the largest off patent specialty pharmaceutical company but also the only one that will have access to both chinese patients and western patients and as you said our new pfizer, we'll be 20% smaller in revenue, retains all the growth drivers and the entire pipeline. so now the company is becoming best in class revenue growth story, sustainable for the long term and with a balance sheet that is unlevered. so i think we can do miracles. >> what else can we expect from pfizer in terms of business development? are you still looking to do m & a, and where >> i think that we have made very clear our position. i think we are more clear than ever in terms of what is our strategy direction we never say never to any

opportunities but strategically we are very interested in acquiring phase two, phase three projects projects that could get products in 2004, 5, 6, 7 and in '07. this is where we have the best scientists that they can select rightly make fewer mistakes in selection, but also they are the scientists that can develop the best so never say never but this is the certain direction. >> i see i want to ask you about the administration and its focus on pfizer of course going back to 2018 before you took the role of ceo. president trump tweeted about pfizer and the company agreed to roll those back as it hoped to see some changes in terms of drug pricing policy and drug rebates. those didn't come through and pfizer took the price increases as it had planned to what is your relationship like with the trump administration? >> i think our role, it is not

to focus on the politics, but to focus on the policies. so whoever is in the administration and both sides of the al, we try to promote policies that are proinnovation. means all this bio tech that you ask, the pharmaceutical company, would be able to find medicines that the people need and policies, which means policies that would make those medicines accessible for all so whoever is in the administration it's our reasonability to work collaboratively. >> the reforms you're hoping for in terms of rebates, ended up not happening. still on the table is reference pricing. really cap iping the price of drugs paid for here in the united states. what's your expectation as to whether that actually comes to fruition and how it would affect your business? >> when it comes to drug costs, people are referring to two

separa separa separate issues. the first, the cost of drugs to the system the second is what is the cost of drugs to the individual to the pharmacy to collect the medicine when it comes to the first one, the cost of drugs, with health care system, medicare for example, we represent 12% of the total health care cost so by definition, we cannot beat the big problem and by the way, in 2018 went down, pfizer pricing in the u.s. went down minus one according to our audited data in the u.s. in 2019, they expect to be around zero. however, i know that patients that are using our medicines did not experience this zero minus one percent when they buy them they pay 10, 20, 30% more because they pay based on what the benefit sign and right now, 50% of the cost of medicines, which is on the base, doesn't

see their way to the patients. this has to change because americans are paying for their medicines like they don't have nurns although they do >> right well albert, we have to lev it there, but much more to talk about. we hope you'll come back and join us. >> guys, much more to come from jpmorgan including novartis ceo. >> the first interview for the chairman, ceo of pfizer. thank you very much. coming up, speaking of health, kind of, kind bars are getting a little kinder to your waistline. kind's executive chairman will join us to explain why he's going nuts over nuts stick around legendary terrain in telluride, the unparalleled landscape of park city, or the famed peaks of whistler, you've faced the hassle of lugging your gear through the airport. with ship skis, you're just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. with unrivaled pricing,

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the market's losing a little steam b on the head loline thath tariffs may continue until after the election the s&p and nasdaq are now negative dow is still higher, up by 50 points, but about ten minutes ago, we were up 150 points, so again, a developing story. i'm sure we have kayla on it as

well about the path forward on reduction. right now though, concern that the tariffs may stay on longer than we think send iing the markets a little b waesh zblncht new fda guidelines are making kind bars even kinder joining us with more on what's happening with nuts. >> a lot's happening with nuts, but first, we got to talk about the global snack business. it's grown into a $605 billion business globally. kind bars. a top three snack in the u.s today, the company announcing many of its most popular bars have 20% fewer calories than thought based on updated research kind is changing labels today hoping to gain an edge in the healthy competition in the snack business and joining us now, the founder and executive chairman of kind. joining us to tuck about the snack business and a lot more. thank you for joining us first question you're cutting the calories based on this research do you think it will give you an edge when it comes to sales and

competition? >> the product's not changing. it's just the usda realized that nuts actually the way we digest them, have about 1020 o to 30% less calories versus roasted almonds. instead of having 200 calories, now it has 180 calories and we're very excited we knocked on the door of the fda and said hey, based on this new research, can we do. yeah, there's different ways that you can calculate calories and this is more accurate and we welcome wrou doing that. and i think it's going to create a reverberation in the marketplace. tree nuts are very healthful but people shy away from them because they think they have high calorie counts and don't realize that not all calories are created equal. >> so reverberation, but is it going lead to higher revenues? the fda said you're one of the first to change the labels do 20 calories make a difference >> like my jewish government used to say, can't hide.

i think it's going the help. already pursue kind bars, but people on the edge might feel comfortable taking another one here and there it's not just about kind they're the two groups that are important for our help >> i know time is running short. how and why do people pick certain projeducts? how do you get them to pick up your bar versus one of the 100 others >> it's the iconic transparent wrapper. ingredients you can pronounce, so people can see what they're putting into their body sz it's being true to your brand. whatever you are if you're an indulgent product, be authentic >> kind's a private company, but mars, another big global private company, they have a stake in you. why stay private is there an ipo on the horizon >> we love being able to think very long-term and not to have

to worry about somebody trying to short you here or there and being able to think how to build kind for the long-term >> well congratulations on your success. thanks for bringing daniel in. good luck. that does it for us on the exchange i will join tyler in a minute on "power lunch." maybe he had a kind bar. "power lunch" begins now >> all right, brian, thank you very much and we'll see you in a moment a lot happening this hour. welcome, everybody and here's what's new at 2:00 at "power lunch. following breaking news, get to that in a minute, but banks are jumping, sending the dow back to 29,000 we are going to break down the best buys for earnings season and explore the question of why it's not a good time to take products off the table plus, the beyond meat boom the stock is up nearly 50% in the past week. just one of the bi