now, he says he is leading philip morris into a smoke—free future — is that clever business strategythe most outrageous corporate hypocrisy? andre calantzopoulos, welcome to hardtalk. thanks for having me. i want to begin with a little bit of history — you have been with the philip morris organisation for more than 30 years. you lived through that period in the late 80s, 1990s, when it became clear that philip morris and the other big tobacco companies had systematically lied, deceived and manipulated the public about the nature of cigarettes, the dangers of cigarettes. you chose to stay. why? first of all, because i think change can come from within. the second thing is, just for clarity, philip morris has stated clearly since 1999 that cigarettes are addictive and cause disease and premature deaths, and then the question is, what we do about this? and what we developed, these products, that can reduce the risk. what is important to understand is first of all people know that cigarettes cause disease and are addictive... let's be very blunt, you are the boss of the biggest internati

i do not think that philip morris already company in this world has invented cigarettes.have had the same discussion on cannabis. people still use that although there were no advertising for it. people have a will and they take decisions and our job is to convince them to kick the habit of cigarettes and the best for them to create... we have to give them to create... we have to give them alternatives... we too have two be real and realistic as observers and what we see is that almost 90% of your revenues come from cigarettes and your overall revenues are into the hundreds of dollars and your remuneration packages around $15 million per year. you are so heavily invested in cigarettes that you cannot afford to walk away from them? on the contrary. we are walking away from them. i don't think that if we stop selling cigarettes tomorrow, because i get this question logically sometimes, this question logically sometimes, this is going to move an ita the needle on public health. 0n the contrary. there will be illicit cigarettes and industry selling them. my objective is to pha

in terms of undervaluing phillip morris, it is a tough one.ng that fits with ria, so why phillip morris is down so much i think will become clear in the coming days. the market is waiting for more details at this point. the thing that triggered this statement was not that they want to announce the deal. phillip morris pulled out of a conference with barclays that was going to be next week in boston. that generated speculation among analysts that maybe they pulled out because they are doing some kind of m&a discussions behind the scene, and the takeover will force aon statement, and that's exactly what happened here. vonnie: has the ownership of either stock changed significantly since became less en vogue to own these stocks? ed: definitely, and that has been going on over some period of time. here is opportunity because tobacco companies are best positioned to leverage these big bets, whether it is in cannabis, e-cigarettes, these high-growth areas we are seeing. the nature of the tobacco companies is these sort of old products that have a de

it was 23-year-old brooke morris. the hard part would be unraveling the mystery that led to her death on this lonely country road. >> was it someone that was a stranger to us? was it someone that we knew? all kinds of things were coming into our heads, you know, trying to figure this all out. >>> coming up -- what happened to brook? >> they're asking do you know anybody that would want to harm your sister? and we're like we don't have a clue. >> the hunt for a killer begins and it starts close to home. when "dateline" continues. s. protect your pet with the #1 name in flea and tick protection. frontline plus. trusted by vets for nearly 20 years. [ text notification now that you have] new dr. scholl's massaging gel advanced insoles with softer, bouncier gel waves, you'll move over 10% more than before. dr. scholl's. born to move. did you know that every single flush [toilet flush] flings odors onto your soft surfaces? then they get released back into the air so you smell them later. ew. right? that's why febreze create

and philip morris moving down, because if it is a true m.o.e.nd the ownerships are more or less in line, even if it's somewhere in the 50s, high 40s, that's where it would be they say no guarantee, as they always do. hope to get a little more information for our viewers at some point during the course of the day. >> meanwhile j&j keeps inching higher there are many pieces coming out in the last few days that it was going to be more than a billion. there's undercurrent that it will not hold up in the supreme court appeal so that's another reason why j&j is not down. the naysayers are saying, well, just you wait. we need to hear from the ceo to see whether he feels thi business roundtable accusation that i regard as an accusation, that he's not doing enough for the stakeholders and for the country, versus what he's done for veterans and how much he has spent in his time that is not earnings per share related but impact per share and i find it insulting they attack him, it's insulting probably the most, i would say, giveback ceo in -- he's a top te

morris later told hamilton that i had won the bet. i will collect my wine and dinner but that is nothing i will ever do again because morris and washing it in would never be close enough that morris could pat him on the shoulder and treat him with the familiarity that you would treat a close personal--. that's because washington maintained that dignity, that personal space. did that mean that washington had an uncontrollable anger he could not control? no. it just means he believed in proper decorum. probably the most famous image which was not done during his lifetime, does this image look familiar? what's the original? down the street. go down and take a look at it. this is the story of mason--. he says the young george for his sixth birthday, his father gave him a new hatchet and he was so excited about eating the gift that he ran around and began barking at literally every tree he could find and barked one of his father's favorite english cherry trees. when his father approached him, young george simply threw his hands up and said

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

altria morris and looking at a merger. phillip morris owners less pleased. london is andrew sheets, chief cross asset strategist at morgan stanley. andrew, thanks for joining. since we last spoke to you, we've had many more headlines, but how have we actually moved the needle on trade talks or any kind of agreement? andrew: i'm not sure that we have, vonnie. i think we are still unfortunately in the place that we were a week and a month ago where there is still quite a bit of uncertainty. you still have this impending deadline on september 1, with more tariffs that are going to go in, and still conflicting signs over what the path will be. i think the most likely path still being escalation. directlyts of tariffs on growth and uncertainty, holding back business investment, unfortunately are still there. vonnie: andrew, we just cracked 1.50% on the 10 year yield. i'm curious whether we see some disorderly break lower for yields. what i think is most important watching the yield market is the signal that not just the level of yields is ascending -- is sending,

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

for growth for philip morris if it combines with altria. and the other product is an alternative to cigarettes that they have been working on together philip morris sells it in japan and uk and altria will launch it in the u.s. in september so this is a from duct that they could then commercialize more efficiently if they were one company.duct that they could then commercialize more efficiently if they were one company. >> and this at a time when there is falling sales of traditional cigarettes but that is the concern from last decade. so in front of us is this concern that has lawmakers apoplectic to use your words which is kids vaping and with the fda having the authority to regulate tobacco, what recourse might lawmakers take and would that include block being the deal >> there is very little in my opinion that congress can do to block the deal and little fda can do the real question, can they come together, would they create an unfair market and they don't compete. so i don't think that is likely. but i do think that congress, we should

we'll be asking philip morris international if they're really serious about saving lives.aigners are taking those boxes back to the home office, with a message of their own. betting firms are flouting advertising regulations by encouraging children to engage with gambling adverts for competitive online gaming tournaments, according to a new report. researchers from the university of bristol and the think tank demos found children under the age of 16 made up more than a quarter of online users who shared or liked twitter posts giving betting odds for esports like fortnite and call of duty. professional computer games competitions are growing rapidly in popularity — just to give you a sense of the money on offer, the first fortnite world cup in america had a total prize fund of nearly £25 million. we can speak now to elliotjones, a researcher from demos, and to barrie gunter, an academic who has written a book on gambling advertising. welcome, both, thanks forjoining us. welcome, both, thanks forjoining us. thank you for coming in, elliott. tell us more about what you founde

still with us is lara rhame and daniel morris.ou be buying corporate credit right now? daniel: you have to think the outlook is not bad. we do not see the inversion of signal of arve as a recession in the u.s. not expecting bond yields to increase dramatically, and given the alternative with equities i think corporate bonds look reasonably attractive. alix: is it going to be duration or risk you are betting on now? at this point the assumption is we do not see risk conditions deteriorating at this point. consumer demand is still strong. there are risks from the trade war but at this point that should be priced into the market. we have had to deal with this for over a year. we do not think there is any near-term risk that will have a long-term impact on bond spreads. if your alternative is 10 year treasuries at 1.5%, whatever extra pickup you can get in income is quite attractive. david: what effect is this having on corporate profits? normally you would be thinking they have to pay a lot of money and interest. they do not. lara: t

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

phillip morris shares sink -- rome.ris shares sink on fears of a reunion without with. ♪ nejra: welcome to "bloomberg daybreak: europe." we are struggling for direction a little bit in markets. we are still digesting the escalation we got over the weekend on the trade war. what a piece from former new york fed president bill dudley, saying the fed should not encourage trump's trade war. there has been big push back on that piece in terms of questioning the limits of monetary policy independence. manus: during the break, we were all talking, chatting about it saying maybe the veracity of the peace was called more into question because of the risk of another trump administration and what that might mean. there was a lot in there for everybody to get their teeth into. depends on what side of the market you will are on -- you are on. nejra: exactly. the question becomes, do they have enough ammunition to be able to pause on what they are doing without increasing, tightening financial conditions? let's take a look at equitie

phillip morris has been outperforming.lysts have long said both of these companies would do better they were brought together again and analysts like the idea of this merger even though both stocks are down, in part because it is more geographic diversification. altria gets the more exposure outside the u.s., but as we know smoking rates are falling drastically, especially compared to the rest of the world. for phillip morris, that is why the stock is lower, because it is giving more u.s. exposure. altria has been making more strategic investment. jewel, very popular e-cigarettes. phillip morris has a heated secret product and those are popular alternatives they have shifted to. kevin: is this also about cannabis? courtney: it is. altria also has estate in krona, canadian cannabis company. there's a lot of geographic opportunity. shery: kailey leinz, thank you so much for the latest on our stock of the hour. coming up, president trump shifts his tone but not his tactics on china. how long can the president keep the trade w

phillip morris shares sinking just about 8%.e get more on the potential deal from our kristina partsinevolos. >> the split up back in 2008. this could be called a potential remerger. why would they be looking to join forces again? altria has a 35% stake in juul. they bought a swiss company that makes nicotine pouches. phillip morris has a product called the iqos device. it doesn't burn tobacco. it heats it so it doesn't create smoke or vapor. it's a a way for the companies to join for possibly help the fact that they've been losing sales in cigarettes and tobacco related products. phillip morris will potentially get 59% of the combined company. if you look at their stocks year-to-date, phillip morris has been doing a little better than altria. some believe it would weigh negatively on phillip morris. you have regulatory risk that is hurting a lot of e-cigarette companies like juul. it could hurt the combined company since altria has a stake it in. this could take a long time as it still needs to get the green light from regulato

morris pleaded 'not guilty' thursday and released on bond. ( will ) vacaville police are looking for man who robbed a credit union. police say the robbery happened around 12:20 thursday afternoon at the golden one credit union in a strip mall in the 100 block of nut tree parkway. officers say a man in his 20s or 30s gave a teller a note demanding money but did not show a weapon. the only description of the suspect is that he was wearing a black t-shirt. ( will ) vallejo police are looking for the people responsible for several car burglaries in a shopping center parking lot. kron4's taylor bisacky reports on the new techniques theives are using in these kind of break- ins. thieves are using ( will ) 18 new security cameras are now working along stockton street in san stockton ( will ) korn 4 news.taylor bisacky korn 4 news. ( will ) ( will ) 18 new security cameras are now working along stockton francisco's chinatown. city leaders announced thursday that the high definition cameras cover stockton street from the tunnel at sacramento street to washington streets. footage from the came

morris has pleaded not ilty. ( will ) 18 new security cameras are now working along stockton street in francisco's chinatown. city leaders announced thursday that the high definition cameras cover stockton street from the tunnel at sacramento street to washington streets. footage from the cameras will be used to help the community and police when criminal activity takes place. the new cameras come after a public meeting last month about security in chinatown. police say there have been at least 8 high profile violent attacks there. police have also beefed up foot patrols. the northeast community federal credit union and 's-f safe paid for those cameras. (will) still ahead on the kron 4 morning news. the homeless man accused of attacking a woman outside her san francisco condo has been ordered to stay in jail. ( will ) and then... outrage as a mother is forced to give birth in a jail cell while the guards stood there and watched and failed to call for help. cracker barrel makes every meal one to remember. with favorites like sunday homestyle chicken, now available every day. and our new

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

phillip morris stop falling nearly 8% yesterday.n david: that is the question. what is the overall climate? the reading is more than the -- the reunion is more than the biggest in the industry. smoking habits have changed a lot since 2008. brooke: demand for traditional cigarettes is down but we are seeing a surge of demand for e-cigarettes and vaping devices. they do have this device that feeds rather than burnt -- that heats rather than burns tobacco it is supposed to be better for you. the idea is if you merge that it makes it easier to market and sell. you get some synergies for putting that all under one room and -- it is easier if you all bring in rather than cannibalizing yourself. alix: what is also happening is lawsuits related to vaping. how will they deal with that? at the same time he of regulatory issues. brooke: that is why some people are saying this makes a lot more sense for altria than phillip morris. if you are phillip morris do you want to take on the regulatory risks with juul? we thought we might get some answe

i understand that you want to portray philip morris as a company working towards a smoke—free world.nderstand that is why you frankly invited us here because this is where you are doing the work on your smoke—free products,

philip morris international has done really well in converting over 7 million smokers in japan really converting over 7 million smokers injapan and the asian markets into vaping. can they do the same in the us? who out of these companies will dominate the market? what will the conversation look like in terms of who will benefit? it is a race against who will be the winner in this market. that turn our attention to the guardian. these linked documents that reveal some big spending plans for schools in the uk, and it is all fuelling speculation that we could be approaching a general election. absolutely. the general election conversation is about borisjohnson and his leadership campaign, he talks about his top biology of spending. education was second to break it was always really big for him. in the previous election, the nhs wasa him. in the previous election, the nhs was a big headline that theresa may wanted to focus on, and there has been a legal document that is marked official sensitive that we are not supposed to say but the guardian got hold of it and it talks about some pretty

philip morris has more concerns about marijuana market even as growing numbers of us states and. countries around the world take steps towards the position. let's check in on the day's tradi action now that after the fact fairly a strong showing despite that disappointing economic data from germany. the checkout up about the same here in paris. shares in milan led gains even as italian politicians struggled to form a new coalition government. wall street has fallen then crept back towards the flat line as it continues its a volatile month of trading. at the nasdaq and s. and p. managing to creep just into positive territory there. with less than an hour of trade to go to the closing bell the dow jones is still down having raced in earlier hundred and fifty point gain. shares the pharmaceutical giant johnson johnson up about two percent. after ruling any key opioid case. you officials insist the united kingdom we'll have to pay the so called brexit bill even if it leaves the block without a deal. prime minister boris johnson has suggested that his government would refuse to settle

dana morris of bnp paribas -- daniel morris at b.n.p. paribas.n the last 24 hours in your market calls? >> the question we have been asking ourselves, if we look at the u.s. economy, you saw what still is steady growth, very good corporate profits. the results for the second quarter earnings season and that was quite high. does your outlook change because of the last couple of days? no.the most part things have clearly changed and much about sentiment as economic drivers. tom: what is the bet on the street? how exposed people have been over the last three and for days? >> one thing to take comfort when you look at how much the equity markets could correct, we have had outflows from equities for most of this year and not like people have a massively long equities will because by surprised by all of this. from that point of view the market from positioning is relatively supportive. it is more what we think about the outlook and how much does the receding prospect of a trade deal with china affect your valuations? francine: what does dollars do from

morris has pleaded not guilty. (james) still ahead on the kron 4 morning news. the homeless man accused of attacking a woman outside her san francisco condo has been ordered to stay in jail. (james) plus ... we have security footage of a robbery in san francisco and police need your help finding the people responsible. plus ... the coast guard shows us their latest haul ... after busting drugs from smugglers in the pacific ocean. (ácommercialá)(áábreakáá) (ácommercialá) ( james )( darya ) welcome back to the kron 4 morning news. let's get a check of the forecast. joint i feel part of the community part of the neighborhood but right now i feel like i am being punished for a crime i did not even commit"> ( james ) thousands of dollars were stolen from a family owned restaurant during an early morning break-in in san francisco. kron 4's justine waldman has the story. nats sizzle ( will )( will ) more than 38 million dollars worth of cocaine from drug smugglers will not make its way to the streets authorities believe cartels have been smuggling the drugs. the califo

we will talk to jonathan morris at the end of the show because he wants to talk about this idea thateople feel so affected. the other thing president trump talked about, we broke it down to basically forgo basic things that identify early warning signs to stopping the glorification of gun violence and red flag laws. the interesting thing about the warning signs, that to me goes back to that component, we know online chat rooms, the founder is saying maybe we should just end it right here, but the problem is that this ideology -- that is not how you and the ideology. that continues to spread. there are places you can have law-enforcement ability to monitor. >> you think about islamic radicalism and the kind of terrorism and now you have a domestic terrorism you have to deal with so i thought to myself, how did we deal with this after 9/11? you harden the target's, there cement barricades around biz tom mack buildings that are considered targets. i think one of the ways to do this is to shut down things like eta chan, you will never completely shut it down just like you can't harden ev

philip morris concerns -- confirms it is in talks with altria.here is no assurance a deal will be reached. altria spun off a lot more is more than a decade ago. joining us now is craig. the market has taken a while to digest this story. why would both stocks be lower if reunification is a good idea? morris was down yesterday as speculation started to bubble up, down when this first hit in the morning. frome have seen altria go way up to slightly down. 2008 andpanies went in now people are arguing it make sense to put them back together. there are obviously questions about how this would work. here,are regulatory risks namely cannabis and vaping. vonnie: is that what this is about, the regulatory frontiers in washington, d.c.? tobacco is at the core of these companies, that goes without saying. the world looks very different right now than it did in 2008. back then, the regulatory scrutiny on tobacco companies was intense and shareholders were saying you have to get your u.s. assets away from the company and let your overseas assets grow. smoking

phillip morris doesn't mind if you stop smoking. released a report offering smoke-free product, kicking off a new campaign encouraging so-called un-smoking. "our message is simple. don't smoke. if you do smoke quit, and if you don't quit, change." is notld of unsmoke without hazards. a lawsuit was filed against phillip morris and juul in the u.s., alleging the illegal marketing to minors and joining us to talk about this is jacek philip morris international chief operating officer. thanks for joining us. are you concerned about the dangers of vaping, maybe some we don't even know about. i spoke with a 17-year-old high school student from new york with me almost all of his friends use juul and almost none of them have ever smoked a real cigarette. jacek: i can't speak for the u.s. market. we interact -- operate on an international basis but i can say it is a clear alternative -- any alternative to cigarettes has to be regulated. for the regulators to establish a framework how they should be scientifically assessed to avoid unintended

emily: phillip morris, big tobacco has its own e-cigarette products. they are coming out with the range of new devices. anna: exactly. emily: which have been approved by the fda. anna: they did get approval in april. phillip morris and altria split from each other about a decade ago and now, just after all these reports came out this week, it became clear, and they acknowledged they wanted to recombine forces to help launch this new type of e-cigarette device. it has been tried since 2014 in other markets around the world. u.s., it will come next week. emily: just yesterday, we interviewed a researcher who was part of a study that concluded that e-cigarettes are no safer than traditional cigarettes. take a listen to what he had to say. trulyknow whether vaping causes the same lung disease as smoking, you have to wait 30 years, especially with those young kids taking the risk. there is a strong association between lung disease and those levels, and vaping increases those levels, so they are at risk of lung disease. emily: lung disease is one thing. seiz

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

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

philip morris, getting 59% of combined company.eigh negatively on philip morris. to talk about the alternatives to cigarettes what is it? e-cigarettes and vaping. those are gaining in popularity. altria has 35% stake in juul. you also have philip morris came out with their own product. that is raising, popularity across the globe. that is a device that doesn't burn tobacco. heats it up. so no smoke comes up. when you e-cigarettes you have to have a conversation about health concerns. today on cbs you had the ceo of the largest cigarette company, juul, he spoke about any type of breathing illnesses related to vaping. he said it is very worrisome. he admitted. that it is worrisome. u.s. centers for disease control are looking into 200 cases of possible lung disease associated with vaping. nonetheless, bring it full circle. this merger could take a while to get a green light from regulate to. >> kristina partsinevelos live from the new york stock exchange. how balanced is your portfolio? the time to play defense is con. even with this

pmi is philip morris international, right? >> that is correct. >> you settle a lawsuit with phillip morris where they allege you copied marlboro's -- what they said. >> how much did you pass part of the settlement? >> $0. >> it involved no exchange of money but required that you abandon the triangles and diamonds which are very similar to marlboro's trade dress, correct? >> we never designed the product to look anything like marlboro. >> you deny they look similar? >> i do deny that you are comparing, with all due respect, mister chairman your comparing a piece of packaging to a piece of product hardware. there was never any intent. the last thing we wanted was to be confused with any major tobacco company. >> so the board minutes say due to requirements outlined in pmi settlement we removed all juul -- that uses triangles -- unite that was what was said in your blue minutes? >> i do not deny that. >> we request you provide the subcommittee with the pm i settlement agreement within two weeks. would you do that please? >> i wil

we've got to let morris and word that it's possibly going to reunite once again without tree which it split from 10 years ago, some point him it probably remember 15 years ago be in a news broadcaster. there's a states that sued of these companies that look like they weren't going to survive, but they all smell, we saw a settled. >>and they did quite well so how do you call philip morris and altria winner and live the devil dad died of lung cancer so yeah, maybe i am bait. this is all about product and i want to teach why do the every investments are all all about product. companies broke apart about a decade ago. i'm philip morris and altria come with different directions out trea kind of a silly name, it sounds out realistic it sounds like they're trying to hide that there, but they may cancer sticks. but they sold really well in china and india, but now. out trees gone out and bought some marijuana companies they've gone out and up. but some vaping companies and a big part of jewel base a bay area company so. philip morris, the same this is a much too good to be true to their phone

if you look at the global market share, phillip morris is leading the way.ange bar in that chart. british american is the white bar. it is really struggling to catch up with them. phillip morris, a winning approval for its iq os tobacco device from the food and drug administration in the u.s. juulit comes to vaping, has been extremely popular, especially with younger people in terms of as a vaping product. area is really difficult for them because we see the other two companies make the big moves when you look at the alternative side of things for british american tobacco. the other big headwind for them is regulation. that can really impact them. the fda in the u.s. is really getting involved. the main focus is the concern about younger people taking up vaping. what they are mostly focused on our the products that we are seeing from juul. less so from the traditional companies from british american tobacco and phillip morris. guy: thank you. it is time for the bloomberg business flash. let's kick things off with barclays, outperforming their rivals in the s

in morris town he'll bord air force one to fly back to washington, d.c. and here as we were discussed with kelly o'donnell a little while ago is will the president stop to take questions as he so often does about the shootings that took place in el paso, texas, where i'm standing now and in dayton, ohio. i should say the white house has not told us a whole lot about what the president has been up to this week and at that golf course in new jersey we see him walking across the tarmac here. he's not been quiet on twitter. the president has tweeted several times today about these shootings. the most recent one, saying good bless to those in el paso, god bless to those in morris town. let's take a listen to what he has to say on the tarmac in morris town. >> to the people of el paso, texas, and dayton, ohio, they're incredible people and been through a lot. i just want to also thank the law enforcement in both places. the job they've done is incredible. i also want to congratulate them. i mean nobody could have done what they've done. this could have been --

get that one point it's made up of the now 3 palaces by the morris most annoyed he lived as one of the. the walls that surrounded the ancient city and the darkness of the hen i really think the royals recreational and holiday residents feel that make a deal that i feel i've won in a piece of advice if you want to visit the be sure to reset tickets as they are usually sent out a month in advance. i mean this is one of the most beautiful walks to taking her daughter officially it's called said robin or that to say the last 3 days of the sad one since the road led to the century. this is the reality hall the jewish quarter of granada and among other things this popular front street by world famous graffiti artist. one of the most famous place to listen to farming community kanada is the sacramental caves but today i want to take you to one of my favorite boss let's go . down. there you're. going to. eat. meat. pedo i hope you enjoyed tory my city and i hope to see you soon. comes out to me he. is a long island the beach stretches out over 42 kilometers. in the hinterland to find forests m

both sell the marlboro brand with philip morris selling products internationally. altreeia sells products in the u.s. the merger talks are response to a drop in cigarette sales around the world. justice department authorizing growers to start producing marijuana saying sit for federal research. the drug enforcement administration says it will examine more than 30 federal application for growing pot. scientists say more varieties of marijuana crops have to be grown because marijuana grown if sold in the united states where weed is legal is different than the federal supply. supporters say this move by the justice department will allow for a bigger variety of pot to be studied. >>> retired new england patriots star rob gronkowski is launching a line of cbd products and wants to encourage the professional league to accept the treatments. he says his goal is to help athletes recover from sports related injuries. he is partnering withed a havecas health and says it helped him. >> my dad introduced me to a product called cbd medic he uses everyday for his back pain. i wa

phillip morris is in talks to reunite with altria. cofounder ofhe apple, steve wozniak.e discusses everything from trade to services, privacy on facebook. federal officials charming former uber engineer anthony levandowski from stealing technology from the waymo unit. priority for the fbi. >> trade secrets, these are the crown jewels of companies. taylor: joining me to discuss is bloomberg's eric newcomer. what a long saga it has been. a total surprise. they settled this a couple of years ago. there had been a private arbitration but the idea that there would be criminal charges is something i think people had largely given up on. this is a big deal for silicon valley. taylor: talk to me about the difference between the two trials. they settled one come arbitration. but this seems to be a criminal probe. eric: stealing trade secrets involves theft. , its not just about the arm is about fundamental laws and whether you can take things from your employer and use them for your own or someone else's benefit. taylor: one headline that caught my eye is that they said that the

as a result of speculation about a deal and so a 59% ownership with a combined company by phillip morrisnational and a 41% ownership by owners of altria is what they've been working with they are still describing it as a merger of equals, but the economics are clearly not equal. they are reflective of what was a far larger market cap at phillip morris than altria prior to any speculation creeping into either one of the shares however, it is a merger of equals on social and governance issues, meaning on management, which would be split between the two companies and on the board of directors now, those talks continue in terms of focusing on who would be the ceo the chairman, and down the line. they do not have, at least at this point, according to people familiar with the situation, full answers there, which is one reason why while these talks did begin earlier this summer, i'm told they could extend at least for another couple of weeks before they see a deal there does seem to be optimism on both sides that a deal will be reached the talks have been quite constructive in terms of dealing

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

to get that one point it's made up of the mount st palaces by the morris most annoyed he lived as well as the elica saba the walls that surrounded the ancient city and the darkness of the hen i really think the royals recreational and holiday residence at iowa state feel that make a deal that i feel i've a one in a piece of advice if you want to visit the be sure to reserve tickets and as they usually send out a month in advance. i mean this is one of the most beautiful walks to take and her daughter officially it's called said a drug. or the to say the last 3 steps of the sidewalks since the road led to the cemetery. this is the really cool the jewish quarter of granada and among other things this popular front street by world famous graffiti artist. or of one of the most famous place to listen to from income used to conclude is the caves but today i want to take you to one of my favorite blogs let's go. there you. are. going to go to get. down there. and i hope you enjoy touring my city and i hope to see you soon you get out of. that. comes out of the. saddam is a long island the bea

phillip morris international has a lot to gain.duct. it is doing very well in the 40 plus markets outside the u.s. it sees the u.s. as a high potential market that they want to get the full revenue and profit share, and they cannot do that with altria distributing it. it has been rumored they would get together since 2015 when they joined an r&d initiative, but it is only since this past april that it became a table pounder to get it done because thecos, and secondarily possibility for juul and legal cannabis. nejra: great to have you with us. more breaking headlines on brexit, we are getting the response from labor -- labour leader jeremy corbyn, criticizing the suspension of parliament boris johnson is seeking, saying he is appalled at the recklessness of the government, and saying johnson wants to avoid scrutiny of the no deal brexit plan. ubs glove --e growth management cio. this is not -- this is bloomberg. ♪ ♪ bloomberg "surveillance," extraordinary day. right to the single best chart. neil shearing and cameron crise with us.

joining us tonight is john morris, the senior brand apparel analyst at d.a. davidson.nks for joining us tonight, john. >> good to be here. >> you say it really is about the consumer just looking for better value, right? >> i think that's a very key element of it. i mean there's a couple of things goi on, but let's start with that. if you look at the dichotomy that y set up, it is perfect -- it really becomes drystal clear. on the one hou have the names that you were talking about, walmart, target. add to that list tjx.er on the o hand you have macy' macy's. you know, while nordstrom was good their revenues were low. look at the difference. the consumer's looking for value, and i think it is value and those companies that have been reinvesting in their hosinesses as big box guys have to be able to execute to the custome both in store and online and for the customer that wants value. i think that's where you're seeing the pattern emerge. >>n addition to value, there has to be a reason for someone to go a brick-and-mortar store, is there not? >> yes, very good. you kn y,

it also claims between november of 2017 and january 2018 morris took additional union property totaling a little under $19,000. >>> a conviction today for the owners of a saratoga three people face years in prison for labor addresses. it happened in a hair salon called utopic. victims say they were lured from spain with promise of good pay and promise of work. one victim worked for just under $5 an hour. also convicted of fraud for buying a house using stolen social security numbers. >>> after 40 years in business, a beloved bay area bakery chain is closing doors for good. the owners say a labor shortage is mainly to blame. the cost of doing business has made it tough to build a better bay area, something we're focused on every day. abc 7 news reporter chris nguyen is live in sunnyvale with the story. chris. >> reporter: dan, good evening to you. the bakery is closing its doors this weekend. if you take a look, you can see these near empty cases. this has become a familiar scene over the past couple of weeks, especially late in the day as many come into the bakery for a final time to ge