phillip morris is having a good day.a: it is having a good day and this is based on second-quarter earnings. earnings-per-share and revenues beat. what we saw their was a ship toward e-cigarettes and how --pments of tobacco products came in much better than expected. they rose by 29% in the last quarter. they should also get a further boost from the sister company in the u.s. starts to market its eye to os e-cigarette products which has just got fda approval. that is due to start in atlanta sometime in the next few months. what we are hearing from phillip morris is there expecting uptick of this product to be much quicker in the u.s. versus europe and japan. same time, there is regulatory scrutiny of these products. particularly when it comes to young people and children. a lot of concern they are being marketed, including flavored e-cigarettes to teenagers. emma: you're absolutely right. that has been a lot of focus on the company juul which makes e-cigarette products. they've been multi-flavored and popular with young

the ceo of phillip morris international joins us right here at post nine next here at post nine next't go anywhere. exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. soun see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪ here, hello! starts with -hi!mple... how can i help? a data plan for everyone. everyone? everyone. let's send to everyone! [ camera clicking ] wifi up there? -ahhh. sure, why not? how'd he get out?! a camera might figure it out. that was easy! glad i could help. at xfinity, we're here to make life simple. easy. awesome. so come ask, shop, discover at your xfinity store today. >>> phillip morris international shares down today, but up about 30% so far this year, despite this industry-wide decline in cigarette sales, as electronic cigarettes and heated tobacco products gain popularity and criticism. it was a subject of a cnbc documentary, "vaporized" and we spoke wit

we start tonight with shares of phillip morris.y were upgraded to overweight from equal weighted at barclays. the analyst there cited the company's new heated tobacco products saying they put phillip morris back on track. the price target $100. the stock rose 1% to 88.73. weight watchers was upgraded to buy from neutral at da davidson. the analyst cited a proprietary survey that pointed to improve brand sentiment for this company. price target, $342, despite the upgrade though the stock fell more than 1.5% to 24.78. alcoa was down graedgraded to h from buy. the analyst cited a lack of sufficient cash flow for the company. shares were off 23.11. >>> still ahead, car share, bike share, and now there's this. >> when you think mobility, maybe you think scooters or bikes, but e mmopeds are emergi. i will talk to the founder of one of the companies, investors and also users. all of that after this. ♪ >>> it is no secret that the market moves on trade headlines these days, so tonight we asked our market monitor for a list of stocks that s

ey relied on $12.8 billion investment from an old stand by, formerly known as phillip morris. they needed a special strategy focused on kids because they knew that children for a variety of reasons, the more susceptible new users of products, it worked with cigarettes and was going to work with juul and vaping. how did they lure the kids? i have a bag full of them here, all of the different flavors. but they include fruit medley, gummy bear, whipped cream, union corn poop, razz will berry and cotton candy. tell me that is about add utilities switching from cigarettes and vaping. they needed the food and drug administration to look the other ay as their empire mushroomed. unform the f.d.a. has been happy to serve. delaying commonsense legislation by years refusing to remove illegal products in the market and standing silent in the falls health claim by juul. i have made it clear to the acting administrator that f.d.a.'s hapless spectatorship has to come to an end. so what has been the result of big tobacco combined with the f.d.a.'s abject failure to regulate the industry. betw

tobacco after phillip morris forecast and also some chip names. bloomberg. ♪ vonnie: live from new york, i am vonnie quinn. this is the european close on bloomberg markets. let's check in with courtney donohoe. courtney: jeffrey epstein will remain behind bars as he awaits trial on sex trafficking charges. a judge in new york has denied his bail. our prosecutors have argued epstein is a flight risk and an unrepentant criminals. elizabeth warren has declared war on what she calls private equity vampires. her new plan would make private equity firms responsible for pension obligations of the companies they buy and their profits would be contingent on the company's success. the u.s. and china are struggling to find a path forward in trade talks. there is no progress on initial demands. president trump has complained china is not buying large amounts of farm goods that he claims president xi has promised to purchase. meanwhile, the u.s. is not improved its treatment of huawei. that is a key demand from china. in greece, creditors are meeting with the

phillip morris international, stock of the day >> we'll see you in a few minutes. >>> america, you have a lot to digest out there and to think about around these markets earnings, trade fights, brexit now there's another potential threat rearing its ugly head it may be the biggest deal of all. that's the debt ceiling. let's go to ylon mui with a look at where we stand as the clock counts down. >> well, brian, there are signs that the administration is getting closer to a debt ceiling deal with congress but road blocks remain. on cnbc this morning, treasury secretary steve mnuchin said there is agreement on the need to raise the debt ceiling for the next two years there's also agreement on top line federal spending numbers and the need to offset any increases in spending. >> i don't think the market should be concerned. i think that everybody is in agreement that we won't do anything that puts the u.s. government at risk in terms of our issue of defaulting. >> now optimism there from the treasury secretary, but a source inside the white house tells me there are still several issues that

phillip morris the latest earnings coming out. it really highlights those that can take this environment and deliver to boost their forecast, and those that just can't and don't have the pricing power like netflix. david: then you have honeywell somewhere in between. it beat on earnings-per-share, a little soft on revenue. it does seem to be weathering the storm of trade uncertainty at the moment. alix: in the market, let's look at how that push and pull is playing out. netflix well off the lows of the session. euro-dollar taking a steep leg lower on the news about that reflation rethink -- that inflation rethink by the ecb. money flowing into european bonds. after a pummeling over the last few days. david: it is time now for bloomberg first take. we are joined by jackie simmons in new york, and here with me in washington is peggy collins. jackie, let's start with you and those netflix numbers. we knew they were going to be a little soft, but it was a lot worse than we expected. reporter: that's right. they are having to spend to

emails, juul employees expressing concern that what they plan to do has similarities to what phillip morrisecades ago. that was something that congress were particularly interested in trailing down on. like, how much did they know that these programs were something out of the playbook of big tobacco? emily: thank you for bringing us that reporting. coming up, apple cashes in its chips. more details on its acquisition of intel's modem unit next. this is bloomberg. ♪ emily: apple is buying intel's struggling cellular unit in an effort to jumpstart 5g plans. apple hopes to eventually sever its reliance on qualcomm parts. for more, i want to bring in bloomberg's apple reporter from l.a. we knew that this was happening or in the works. now it is official. what do we know? >> we know today for sure apple is acquiring intel's modem unit, subject to close in the fourth quarter. this is an infrastructure that will allow apple to jumpstart its own efforts to eventually replace intel's work and replace the work of qualcomm, who they just struck a licensing agreement with. emily: why did intel unload t

a sizable share of jewel, so we should call it jewel, they're drug pushers and back in 2006, phillip morris, and the other big tobacco companies were adjudicated racketeers for lying to the public for decades about the harm of tobacco and they're doing the same thing now. we wouldn't be here today if not for the lack of action on the part of the f.d.a., so like every other issue around tobacco control historically, it has to begin on grassroots, on local municipal and state areas in order to get what we need to protect the public. so, san francisco historically has been a leader in this movement and has done great work to save lives over the years. you're in a position now to prevent another generation from becoming addicted to nicotine. please pass both of these ordinances. thank you. >> thank you next speaker. >> hello, i'm a local businessman in northern california. i don't smoke, but i been in business for 35 years, and i thought this was america. i thought we had a freedom. tobacco is a legal product. if a legal person over 21 is buying the product, what is happen to all those smokers

the indices in general are also feeling some benefits from, for example, phillip morris king a better that is translating over into britain, with british american tobacco higher off of that. then there is the brexit develop meant, and which parliament has said you are not allowed to negotiate a new deal brexit. in other words, no deal is off the table.

. >> phillip morris is next, having best day after four years, raising the four-year forecast as wellim. >> i'm not a buyer of this stock. it is not a moral thing, although plenty of people will have that. the problem here is that it is a declining market, right? less and less people are smoking. yes, these companies, whether it is philip morris or others are trying to get into things like vaping or marijuana but moving slowly in that regard. basically it is a dwindling market they're participating in. >> russell 2000 sliding further into correction territory. small caps continue to struggle. brenda. >> i think small caps throughout the current economic cycle we're in have been interesting in that they actually lagged large cap stocks even over a rolling five, seven, ten year period which is not normal during those cycles you would see outperformance for taking the additional risk. looking at it here, i think the reason they're down is they tend to be more economically sensitive companies that are not as financially sound as larger cap counterparts when there's a risk-off move that ha

ey relied on $12.8 billion investment from an old stand by, formerly known as phillip morris. they needed a special strategy focused on kids because they knew that children for a variety of reasons, the more susceptible new users of products, it worked with cigarettes and was going to work with juul and vaping. how did they lure the kids? i have a bag full of them here, all of the different flavors. but they include fruit medley, gummy bear, whipped cream, union corn poop, razz will berry and cotton candy. tell me that is about add utilities switching from cigarettes and vaping. they needed the food and drug administration to look the other ay as their empire mushroomed. unform the f.d.a. has been happy to serve. delaying commonsense legislation by years refusing to remove illegal products in the market and standing silent in the falls health claim by juul. i have made it clear to the acting administrator that f.d.a.'s hapless spectatorship has to come to an end. so what has been the result of big tobacco combined with the f.d.a.'s abject failure to regulate the industry. betw

on august 17, 2006, a judge ruled that phillip morris and other big tobacco companies were liable for intentionally marketing to youth while denying the adverse health effects of smoking. are you familiar with the case? >> more or less. >> philip morris owns the marlboro brand. and philip morris's parent now owns 35%treo, of juul. a doctor and professor from stanford testified under oath before the subcommittee that you confirmed to him that you reviewed stanford's online library of cigarette advertising and found it, "very helpful as you designed juul's advertising." did you meet him? >> i did. but i did not make that statement. >> so you are under oath in your denying that he made that statement? unfortunately he may have misheard my commentary. the resource he compiled is a useful resource. we were very interested in understanding more about the historical bad actions of tobacco companies. were veryint, we interested in using his resource to understand exactly what bad actions those tobacco companies took to familiarize ourselves with how not to run a business. >> so you deny his s

some of the other staples, phillip morris was pretty good. coca-cola was great. pricing and volume was about as good and balanced as you can get. some of them haven't done very well, but in general, on the equity side the staples have performed pretty well. alix: is that the strategy? do you want to buy the bond proxies or take on more risk? mark: we believe you should be balanced. as i mentioned earlier, we are sector neutral. we have to have staples exposure. i think that's a great way for too risky ornot go defensive. i think that is important for most investors. we think we are really good at identifying the stocks within each of those sectors that can outperform. we've done very well in staples this year. cosco is another u.s. dominated company that has done well. coca-cola has done well. we think that being diversified with exposure to both risk and non-risk assets is an intelligent way for investors to go. david: how do uss the risk that may be overbought on the prospect of cuts -- how do you assess the risks that the market may be overbought on the prospe

in austria, formerly phillip morris has made a multibillion investment into the marijuana industry. it is also important we don't deal with this in the abstract. in particular, i will refer you to the first page of appendix a, you can see marijuana concentrate called shadow from acreage holdings, which is former speaker john boehner's new gig, notice the marijuana strain, thin mint merrill on growth -- marijuana girl scout cookies. and those are the responsible operators. i could show you plenty of examples from responsible operators that are much worse. that is the best case scenario if everything goes according to plan. there is a darker possibility and it does not require a stretch of the imagination. international cartels have infiltrated legalized states and use the cover of legalization to conduct massive growth operations, massive enough -- often in massive upscale neighborhoods. it provides an avenue for cartels to infiltrate the banking system in a more systematic way. in appendix b, there is a letter from the former dea administrator who describes a threat to parallel the

phillip morris, ebay, novarti, honeywell also beat, raised the low ends of their full-year guidance generallyhe second half of the year, generally stock goes up. very complicated picture when looking at the big global industrials. they're starting to report i love these companies even the small ones give you interesting ideas. ppg is a big one, dover, watsco, big air-conditioning company, honeywell, i mentioned was positive ppg, a great little company to watch. they make industrial coatings all over the world automotive, aerospace, boat coatings, all over the world they know if things are slowing down, you'll see it. what did they do their numbers were pretty good overall. they talked about solid growth, particularly in aerospace and marine business around the world. they said sluggish demand in autos. we know about that we saw it today with some of these auto retailers they said their raw material costs were higher. we've been hearing this a lot in the commodities space. they said they were trying to raise prices this is a good snapshot of the global industrial economy right now. pressure on

thank you very much "squawk alley" is coming up next do not miss the ceo of tobacco giant of phillip morrisernational on a day where a lot of consumer staples are doing pretty well. dow is down 52 - stand up if you are first generation college student. stand up if you're a mother. if you are actively deployed, a veteran, or you're in a military family, please stand. i will tell you this, southern new hampshire university can change the whole trajectory of your life. >>> good morning it is 8:00 a.m. at beyond meat headquarters in el segundo, california it's 11:00 a.m. on wall street and "squawk alley" is live ♪ ♪ >>> good tuesday morning welcome to "squawk alley." i'm carl quintanilla with morgan brennan. there's a lot to watch today, but we're going to start with beyond meat, getting hurt in today's session after mixed result in the announcement of that secondary share offering. aditi roy has all the latest this morning from san francisco. hi, aditi. >> hi, carl. the stock is down despite the company posting some strong numbers on certain metrics

did reward companies with strong earnings if you look at some of the big winners for the week, phillip morrisning 8%, raised their four-year guidance, they are up about 8% notable weakness in oil-related names, all down about 7% to 8% coinciding with the sharp drop in energy prices despite the rise in geopolitical tensions with iran. in ex week 133 s&p 500 companies will detail their financials, plus the european central bank policy meeting on thursday where some economists are now expecting a potential rate cut >> thank you, seema. very busy week of earnings ahead. let's get to bertha at the nasdaq you have had a lot of big movers. >> a lot of big movers tech overall kind of sat things out this week, except for the chip names the chip sector was the only thing that bucked the trend up about 2% thanks to a snl's better than expected report. we will hear from intel next week but the winners on earnings and best gainers were nontech firms, jb hunt, cintas, netflix was the worst. back over to you. >>> now, iron ore mining company cleveland clafs, the ceo saying prices have helped to offset low s