we'll spk eato an early investor in pillpack when "squawk alley" in pillpack when "squawk alley" comes more than confident. how's your family? kayak. search one and done. >>> welcome back to "squawk alley. shares of walgreens, rite aid and cvs taking a hit this morning on the story of amazon acquiring pillpack george zachary, former board member and general partner with crv. thank you for your time. >> thank you. >> you tweeted not too long ago a picture of signing a term sheet in may of 2015 and you joked it's probably not as monumental as the one they might have with bezos signing that deal what can you tell us about the deal with amazon, either on terms or where you think amazon wants to take it >> well, those are both much more interesting questions than the fun picture of pj and i. unfortunately, i can't say either because i'm constrained about providing any details about the acquisition. and i don't have any idea about what amazon wants to do. i just know why i invested and what amazon has basically said from their press release. >> you got in on a series c in june of '15 and i b

it is a huge leg up for pillpack.e most mission-driven founders i have ever come across. they had fantastic options both in terms of financing and acquisition. ultimately they have used this as the launchpad to continue the mission. emily: so, you know, where do you think this is going? you have certainly spent a lot of time researching the pharma business. you have got the big incumbents like walgreens and cvs, you have amazon buying an upstart. how do you expect this industry to transform over the next few years? david: i think it is like all tech advances. it feels like it is going very slowly until it feels like it is going very, very quickly. i think that amazon has been putting people in a position to look at the space for the last few years. pillpack has been working furiously at it, literally bowling over challenge after challenge to get to where they are. and i think ultimately what you're looking at is exactly the way amazon provides delivery of anything else you need. they will ultimately deliver your drugs

important buying pillpack.e last thing about the second-half worries and the five-day worries that keep getting over and over. the trade war impacting earnings for industrials and materials and technology and that's a flattening yield curve dollar strength and slower european growth and earnings and the china slowdown on cnbc.com for more guys, thank you. bob pis an owe tani on the floor we are less than 24 hours since disney got a quick approval to acquire the fox assets from the department of justice. just six months and 13 days after announcing the deal it was approved by the doj and of course, this then leads to the question what is comcast going to do as it tries to potentially come back to compete with the $38 half cash/half stock offer from disney that now is cleared in the united states more on that in a moment, but from comcast's perspective, yesterday i shared, you know, from people familiar with the thinking of the company that they were prepared to move ahead, perhaps not this week, but in the near-

he probably is right to not be too worried yet because pillpack had around $100 million revenue lastpared to billions of dollars for cvs. anything, however, that this isjust the first step for amazon on. and amazon on continues to disrupt many industries, not only the pharmaceutical industry but they also have groceries, food, books, music... they are a monopoly. also have groceries, food, books, music... they are a monopolylj think music... they are a monopoly.” think that's why shares for its rivals were down so much because amazonas known to cut prices in order to attract customers, even if that means the company loses money over the short—term. i think that is why share investors are nervous. thank you very much for that update on the acquisition of amazon on. and has gone from being a chinese strategy on how to become an economic superpower to a political hot potato. made in china 2025 was supposed to help the country develop cutting—edge industries and businesses that its trade tensions with the us continue, beijing is now publicly downplaying the initiative. 0ur correspondence

taylor: i did not know what pillpack was.rivate company, so we don't know much about the deal. they raised $122 million in private funding. we have not independently confirm that amazon has purchased it. they are an online pharmacy that males presorted prescriptions. presortedils prescriptions. we did talk to analysts and our health care reporter and they are saying it is interesting. this is the last frontier for amazon. it is the only sector they have not gone into. we know they have set up the groundwork to layout getting into the drug distribution and pharmacy business. this sort of feels like their big push into the last sector where they had not gone before. we spoke with a jefferies analyst as well and they said they would not expect much antitrust issues because this will help consumers because the way that drugs are distributed is a broken system right now. caroline: and that is what is it istries to solve trying to fix the broken system that is drugstores, making it more efficient with pills. talk about the competit

pillpack is an online pharmacy startup with licenses in 49 states other than hawaii so buying a companyat from amazon's perspective could spee -- speed up the process of getting into the pharmacy space by years because they the infrastructure now they have a great team of experts. if the goal, i expect is this, sell prescription drugs on amaz amazon.com through prime >> christina, we've seen your ongoing reporting on this and latest tweets say added implications for express scripps potentially. >> yes, they are the largest benefits manager, pbm, had a big dustup with pillpack a year and a half over a contract dispute that ended in pillpack's favor i'm very interested with amazon now on board to see how the relationships between those three companies play out i suspect that by acquiring pillpack, amazon is now going to have to have deep discussions with express whether they plan to work with these drug supply middleman or disrupt them. >> and, i mean, do we have any sense of amazon's broader ambitions in health care this is first -- i remember, what, drugstore.com, a long time ago, and b

a day after amazon announces it's buying pillpack walgreens coming off its first day since '15.l helps wipe off $11 billion in market valley between walgreens, cvs and rite aid just themselves former apple ceo john sculley joins us john, good to have you back. >> thank you, carl nice to be here. >> we've been asking folks this morning if that market cap wipe out was irrational or not. what do you think? >> well, i think it's a very clear message that major sectors of the health care industry are unprepared for the era of platforms, cloud-based platforms which is clearly something amazon understands really well so long term, it has huge implications, and that may be part of the reason for the reaction short term, there's not going to be much impact, i think. and that probably was an overreaction and the reason for that, even though pillpack is an excellent company. i know the co-founder and ceo. it's a great team. they give amazon a fast start in terms of those 49 state licenses they have which is a long complex process to get but it's a long way from what they have with pillpack

like pillpack being bry responsivecatherine baker,e aicker, dean of the university of chicago harrisl of public policy. what happens to mike pence after they get there? german -- migrants after they get there? german chancellor angela merkel praised the outcome. chancellor merkel: overall i think we have achieved the most challenging topic for the european union today. now we will of course have to wait and see what the austrian chancellorship will prioritize. but i am optimistic after today that we can continue working on this together even if we have a lot in front of us in terms of having to bridge the different perspectives. from: we welcome brussels our bloomberg calling. thank you for staying up with us. mr. conte got what he wanted. did angela merkel? >> this is a very long night in brussels, 4:30 a.m. crucial summit. european leaders who especially angela merkel come under so much pressure at home come she could not go home and demanded. the question is how do you implement the deal. but they have this deal. there is two key elements -- one is the fact that they agreed to set

pillpack seems to be a great company.h care reporters and analysts about why they are doing this. this is the last frontier for amazon. anything you can get at cvs, the only thing you could not get online was -- on amazon was prescription pills. we knew they were trying to make some footprint. they tried to get some licenses in 56. i wouldn't made -- in 50 states. they had somee regulatory hurdles to overcome. it is a huge market, one that is easy to penetrate for now. david: may be last, but one of the biggest when it comes to pharmacies. pharmaceutical benefit managers have been making a lot of money. known for price discovery. there has not been any price discovery. we were talking with competitors in the health care space, what it means for them. cvs,entioned walgreens and all of those shares sold offer a 9%. they had agreed to be acquired by cigna, the health insurer. so there may be a cushion. you know the amazon affect. the moment amazon comes in, people get nervous. shery: literally on anything. and we know we are

amazon has said it is buying online pharmacy pillpack for an undisclosed sum, confirming speculationhas sent shares of pharmacy chains plunging on fears of competition from the online retail giant. cvs health and walgreens boots alliance were down around 10%. british defence giant bae systems has won a share of a $25 billion warship contract with the australian navy, beating italian and spanish rivals. the nine frigates will be based on the type 26 design bae is building for the royal navy, but will be built in australia. cement giant lafargeholcim says its french subsidiary is under formal investigation in france over claims it funded a terrorist group in syria. last year, lafarge admitted paying armed groups in the country in order to keep a factory operating in northern syria as violence mounted after 2011. and now what's trending in the business news this morning. cnbc assesses the fallout from amazon's move into healthcare hitting the shares of retailers and pharmacy chains. it wiped out $17.5 billion from eight companies in one day. on bloomberg — big tech worried as california

markets pharmacy stocks understand pressure after amazon announced it will acquire the online company pillpack that hitting other distributors. and this news comes after amazon also announced its rollout of the last mile package delivery program of shipping stocks like fedex lower this hour. pete najarian, eyou read it, and you think, today might be my day to buy -- what >> i don't think today is the day. we had this news that whole foods was getting bought, obviously kroger and everybody else was getting sold out. kroger was down to 29, and back up to 20 again look at best buy, all of these names supposedly going to be put out of business by amazon. the answer, do you react the right way? walmart can be used as an example. not everybody is the carnage of everything good going on with amazon right now great opportunities but it's not immediate. i don't think you want to go in today and say this reaction with walgreens, i think you buy it today. i think you wait a while and then it's going to take time and many of those stocks getting hilt today have yum side >> yesterday, stephen weiss, mck --

pillpack has pharmacy licenses in all 50 states. the company delivers medications to customers in pre- sorted doses.... designed to make it easier for people to take multiple medications a day. the acquisition comes just a week after c-v-s announced... it will start delivering prescriptions to people's homes... a response to growing competition from pillpack and capsule, which is another online pharmacy startup. (ken) a flight from new york to london in two hours? plans are underway for hyper sonic planes that could revolutionize air travel. (pam)be sure to tune into our special 4th of july show.we will cover fireworks shows from concord, san rafael, san jose and san franciscoit's the only 4th of july fireworks show in the bay area televised live.the fun starts wednesday..july 4th right here on kron 4. (ken)you could soon be able to make it to london in just two hours! boeing wants to make a passenger plane that can shuttle customers around the globe at five times the speed of sound.(pam) the aircraft manufacturer says, the jet coul

alix: walmart was looking at one point to buy pillpack.ck, online pharmacy services company and no terms disclosed. an interesting development for the company. before that i was talking about exports, and services that subtracted from gdp per it weren't those things that were supposed to help us? nathan: in this world, net exports are likely to subtract at least some, strengthening dollar, relatively strong u.s. growth. i think that is a component of gdp i would expect to subtract this year. consumption and investment i think are going to be very justg and inventory is kind of bouncing around some. often you have a negative contribution one quarter and then it is offset and positive in the next, those just tend to even out over time. david: gina martin adams, i want to bring you back up and put up onhart, it is alix's chart the dallas fed indicating material prices and they are really taking up. at least for the dallas fed area we see inflation kicking in and maybe pricing power. are you seeing that in the markets? gina: to a certain degre

news yesterday that broke during this fine program that amazon is buying pillpack.of pharmacies and drug distributors both took a big hit in response. joining us now to talk about this, what it means, is anna gupta. senior health care services analyst at lairing services. learned she has a son as duke. my apologies >> funny >> the market reacted in a big way yesterday. was it a fair reaction was it an overreaction i mean, that was a giant -- it was billions wiped out >> yep i think it was pretty rational the market is -- >> rational? >> rational. >> a 9% drop in walgreens is ra sh -- rational >> in a sense. it's not happening overnight it's the future value. the present value, future cash flows. and the retail pharmacies are a threat there's going to be an overhang for awhile we've speculated for awhile. >> you're not a walmart analyst so you don't have to comment but when we see $3 billion wiped off the market cap of the world's biggest retailer -- >> by the way, when they could have spent $700 million to buy the thing. >> shoulda woulda coulda, i guess. but are we

pillpack offers home delivery of prescription medication.nvestors are hoping amazon will cut costs. it sent shares of walgreens, cvs and rite aid 34ru7king. the collectively they lost $11 billion in market value alloy. >>> toyota lovers are embracing for the impact on the trump administration's tariffs. they say it's popular sedan the camry will cost $1800 more to build if tariffs are implemented, and toyota says at least some of that cost will be passed on to consumers. the proposed tariffs would add a 25% penalty to imported cars. >>> and guinness is hoping a new brewery in the united states will boost its brand among younger drinkers. the $80 million location is set to open outside baltimore in august. it'll be the first guinness brewery to open in the u.s. since 1954 and will include a nearly 300-seat restaurant serving laggers and craft beers as well as the signature guinness stout. >>> and it's the end of the road for toys "r" us. they are closing their remaining stores today offering 60% to 80% discounts on remaining merchandise. some

it has purchased pillpack for $1 billion. that caused stocks of cvs and rite aid to plummet. >> and amazon says for a $10,000 investment, entrepreneurs can launch their own businesses, delivering prime packages in amazon vans and wearing amazon uniforms. amazon says their delivery partners could earn up to $300,000 a year. >>> let's call it a stout move by guinness. the company is opening its first brewery in america in more than 60 years. it will be just outside baltimore and include a restaurant and tap room. not all of its beer will be brewed there, however. guinness' famed stout will still come from home base in ireland. the brewery is set to open august 3. >> sounds good. >> road trip. >>> when we come back, a drag queen's big moment is foiled by insects. >>> and the boy band elevator music. >> is that like the world cup music? music. >> is that like the world cup music? make the most of a few minutes with ky natural feeling with aloe vera [stomach gurgles] ♪when you have nausea, heartburn, indigestion, upset stomach, di

amazon has said it is buying online pharmacy pillpack for an undisclosed sum, confirming speculationmacy chains plunging on fears of competition from the online retail giant. cvs health and walgreens boots alliance were down around 10%. the chinese government has decided to open up its economy, by easing foreign investment rules. the sectors which are likely to benefit from the new ruling karishma vaswani is in singapore for us. ona bit on a bit of an opening! this certainly looks like some sort of small but significant step from china this week on the trade front. it appeared to ease restrictions on foreign investments in the sectors you mention, including agriculture and banking, two of the big sectors that foreign investors have been looking at for many decades now. this is part of a response to criticism from the united states that beijing is not doing enough to address trade imbalance between the two sides. we have consistently heard from the trump administration that china practices what the us calls on fair trade and this appears to be something beijing is trying to do to appe

drug business with the acquisition of online pharmacy pillpack.illion-dollar acquisition is expected to shake up the prescription drug industry, challenging major chains walgreens and cvs. amazon finished the day higher. walgreens and cvs fell. kathleen: bloomberg has been shareholders are set to vote -- our sources the meeting is scheduled for 10:00 a.m. at the new york hilton. that gives it another edge over comcast which is also vying for the assets. haidi: planning to give bridgwater employees ownership over the next phase in a decade-long plan. the partnership changes will give -- the billionaire is more than midway through a 10 year plan that has had a few false starts. plenty more to come on daybreak australia. we're going to take a look ahead at what the market holds particularly in china. this is bloomberg. ♪ ♪ haidi: 8 a.m. in sydney where markets open for the friday freight just about in 90 minutes time. that's what you call a recovery rally. and in the u.s., setting up for a vet of positivity -- a bit of positivity. kathleen: in new yo

amazon is acquiring online pharmacy startup pillpack, which sorts and delivers medication, includingthe lucrative but complex market for pharmacy services.for consumers, it could be good news if the deal nudges the pharmacy sector into a heated competition for customers, potentially driving down drug prices. prescription drug spending tops $450 billion. winner: disney-fox deal wins antitrust approval . . . comcast considers bidding higher. walt disney , in a major coup, secured u.s. justice department approval for its proposed $71.3-billion purchase of 21st century fox's entertainment assets after agreeing to sell 22 local sports channels, including prime ticket and fox sports west in los angeles. the justice department's speedy approval of disney's proposed takeover of much of fox deals a crushing blow to comcast, which has been struggling in its bid to buy the same businesses. fox chairman rupert murdoch has twice rebuffed comcast, citing concerns that the philadelphia internet service and cable tv giant might fail to win regulatory approval. winner: tiger winner: tiger woods comeb

amazon reportedly beat walmart which was also in talks to buy pillpack. a study that suggests the same doctor could be a matter of life n death. researchers in the uk looked at data from nine countries including the u.s. 82% showed patients who went back to the same physician had a lower chance of dying compared to patients who visited different doctors. patients who sit with a physician are generally more satisfied and likely to listen to their doctor's advice and have a higher chance of taking preventative measures. >>> bloomberg reports that kroger, the large u.s. supermarket chain is countering amazon with plans for self-driving grocery delivery. kroger will begin tests at an undisclosed u.s. store. it could help cut down on delivery times and possibly the cost. customers will need to be home when their delivery arrives to unlock the grocery order. amazon bought whole foods last year and has added two-hour delivery program for its prime members. >>> "the washington post" reports america's cheese stockpile just hit an all-time high. there's almost 1.4

other companies and with announcement it's moving into local delivery and online pharmacy start-up pillpackextreme example of exactly what you're talking about, john. we've been having discussions about whether, at least the short-term market impact was exaggerated, whether it made sense to you whether this reflects disruption in the short term or whether it's going to take amazon years to do this in scale. >> i think it's a perfect follow on question to what we just said the changes of amazon competing with walmart and other companies took decades the changes that occurred with tesla and gm took a decade and a half the last change with uber took seven years. to answer your question, it's going to occur quicker than people think that's why the market has trouble reading it if someone misses a market transition, if one of their peers, particularly from outside their traditional competition moves with a different business model it can take them a long time to recover. and the person who moves first can gain huge market share rapidly. it won't show in the next quarter but it will in the next o

amazon getting into the online pharmacy business by purchasing a startup called pillpack.t's not clear if it will continue to operate independently or if it's going to be integrated into amazon's main online marketplace. it is already licensed to deliver drugs in 49 states and delivers prescriptions for several pharmacy chains. we'll have to see. >>> a data breach may have exposed information on nearly 340 million individuals and businesses. >> the company is it does not include social security numbers or financial details. surprisingly it has not commented yet o the leak. a new way of doing business, in a settlement with california and seven other states the company is agrowing to conduct security audits and develop new strategies to safeguard consumer information. if the company fails or drags its feet, there could be hefty fines. last year the breach had nearly 150 million people's information stolen. >>> did ed sheeran steal a hit from marvin gaye? >> this is the question at middle of a lawsuit. ♪ darling, i will be loving you until we're 17 ♪ >> so romantic. the mega

buying hillpack an online pharmacy for home delivery wal-mart had been rumored to be in buying pillpack to this we have talked a lot about the potential for amazon to get into the health care business and - >> which, by the way, we should point out wall greens boots is the newest dow components, earlier it beat on a lot of levels the same store sales were disappointing for some on the street can you see the pressure on the dow the dow went up 122 points at the highest point i seen this morning. now the futures opened down close to 100 points. >> it basically came out that wal-mart was buying pillback in april. wal-mart was going to do it. pillback does if you have multiple medications they want to make sure you don't take the wrong numbers of medicationles. they package it for you in the doeszages you need i finds this fight between wal-mart and amazon fascinating. i mean, wal-mart buying jet.com for a couple billion dollars, all of a sudden, remember wal-mart was kind of the corporate villain. remember ten years ago small towns? now it's like wal-mart >> i heard all the arguments made