Over. 1 treasury yields, this morning were taking a look and youll see that its trading at 1. 5 . 1. 543 to be precise the two year a little higher than that in terms of the yield. 1. 518 this is no way to run a business, obviously. Im talking about torte reform and things like that when one judge can say yeah, 17 billion he didnt. No, he didnt but he could have thats what we deal with in todays with trial lawyers. Now to get to a developing story this morning, i got my editorializing out even before. Started at least. Thats what the story was Major Court Ruling this is just one state too this is oklahoma we know about the Opioid Crisis. It was against Johnson Johnson. The judges ordered them to pay 572 million for country bouting to the opioid economic in oklahoma under the public nuisance law theres 50 states by the way. Theres also municipalities. Think about it. It says j and j and its unit repeatedly down played the risk of addiction doctors were targeted as key customers. It covers one year of abatement of cost to tackle the crisis through Addiction Treatment and Overdose Prevention programs but the number that people were worried about was 17 billion half a trillion or half a billion versus 17 and it had been seeking between 500,000,005 billion and others are also trading higher what was the 17 . For 30 years. They thought it would take 30 years to fight and turn around whats happened with the Opioid Crisis the judge said no, you can have one year but not 30. Estimates were a billion and a half to two billion which is why shares are getting a little bit of a bump because it was not as bad as some were bracing for. Johnson johnson has been the one that dug in its heels and said were not going to settle i said adds when im watching for round up constantly on this thats bayers problem now. They will appeal. They plan to appeal saying the decision is flawed and the state failed to present evidence that its products or actions caused the crisis closely watched by plaintiffs in nearly 2,000 cases against j and j and other opioid manufacturers. They have been consolidated into one case which is spending before a federal judge in this case its in ohio and well get a live report from oklahoma later this hour President Trump has returned from the g7 summit in france and his take away message from the memorable meeting, flawless unity. Eamon is getting ready to return home what would you say in terms of how you wrap all of this up . Look this is a much different g7 than we saw in canada. That one ended in frustration. The president tweeting angrily on the airplane on the way out this time that flawless unity message. The president tweeting thank you france on the way out the door this was a president of the United States here in france in deal making mode such a contrast between what we saw from the president on friday to what we saw from him on monday the president went out of his way to suggest that he was willing to negotiate with the chinese and suggest the chinese were willing to negotiate with him. We went around and around yesterday on the issue of phone calls and never quite got to the bottom of that but the president sending positive signals to the market and the Chinese Government that hes ready to get back to negotiating. The chinese sent another one back saying theyd like the u. S. To stop its wrong actions before they get down to negotiating but the rhetoric continues to improve on that from where we were on friday on the iran issue, another bit of a thaw there. The president signaling that he would be willing to meet with the leader of iran even as the foreign minister of iran was actually here in france during this session the president putting out the idea that he is willing to float some loans to the iranians for lines of credit secured by uranian oil to get them back on their feet if they do come to the negotiating table. Maybe an opening there finally on the issue of russia, Vladimir Putin not here in france this time but ultimately a big subject of discussion as the president wants to make the g7 the g8 again. You remember that russia was kicked out of the g8 in 2014 because of the annexation of crimea he would like russia to be back in not clear that that idea met with a lot of enthusiasm from the other World Leaders in france the president in deal making mode on that front as well so a whole lot going on here but now its all over, the diplomats are gone and this beach town gets back to what it does best maybe a little shopping. Soon. Whats that enjoy enjoy the swimming. There was a suit. There was a suit, right . Swim suit. Swim suit. There was okay okay good. Because you know swimming naked. Exactly hes already on record as saying that was not the case. President trump has said recession fears are overblown and the ceo of starbucks would agree. Kevin johnson told cramer, jim cramer, what he said last night on mad money. We have not seen signs of, you know, in the u. S. Of anything related to a slow down. But we do know these things go in cycles but right now were firing on all cylinders and consumers seem to be doing well. Shareholders likely share johnsons optimism stocks up more than 80 over the last year. So when you do you say take a listen i try to avoid it actually. What does that even mean . Folks at home if you ever become a tv person, whenever you toss to a sound bite, its just, if you say take a listen, you feel so anchor like but its so common, its so sad to see good anchors that i respect say take a listen, every time. No way to tee up could you start going slow . Its a signal to the control room to roll the sound bite. But if you start going slow and they know its coming and then just stop and then just deal with the silence there. Go like this. No. I have sometimes said listen here. Youre telling people that. Heres what he said heres what they said. Come up with something this is interesting. Whatev whatever. Coming up, new word from china overnight on the potential for new trade talks. Well take you life to beijing going forward. And then later the analyst that scores predicted recent ipo stumbles and will reveal his grade for the wework ipo you can only see it on squawk box. Heres a look at the biggest premarket winners and losers in the dow. Clarifying two phone calls eunice joins us from beijing and has more on the story. Eunice, its good to see you thanks so much, the Foreign Ministry declined to comment and declined to confirm for a second day that the two sides held high level phone conversations between the trade negotiators. The Foreign Ministry said that the two teams were in contact and also added that the trade dispute should be resolved through dialogue the u. S. Needs to stop all wrongful actions and should create conditions to talks based on Mutual Respect and equality so theres two ways to interpret the ministrys remarks from the very beginning china has been trying to paint itself as the one that is responding to the trade war, that the u. S. Is the one thats the instigator so what we could be seeing is beijing trying to show that it didnt initiate this phone call even if it did and then the other point and that really important in the statement is that the message in the language of the text. So this is all very boilerplate and and the language thats been used since the talks stalemated in may so the message and the takeaway is that beijing officially isnt changing its position on the trade talks. So that suggests that any optimism that you could feel about the trade talks could be a bit premature. Also one positive story is that costco opened its first store today in shanghai and this opening has been all over social media because the store had to close early. It was so crowded with traffic lining out the door by one kilometer. I dont know if thats normal in the United States but its been getting a lot of attention here. And Chinese Consumers love discounts. And particularly popular, the muffins. Ive never had a muffin at costco. Their cakes are really good ive never had a muffin from there. Are they . We can mend all fences as long as we have good pastries. I was feeling very half full yesterday thinking about, you know, how did it get to this point with china and then thi thinking both countries have so much to gain and it could be really good with what we could do together. It just seems like it could be a relationship where both parties benefit and im hoping that that is where we finally get it in the end. I think the chinese would agree with you theyd want to see a winwin situation between the two sides. Especially because they know consumers do like a lot of these products from the United States. But yeah, its difficult because, i mean, now im going to play your role but, you know, because over years and years there have been so many complaints that the chinese have been why are we changing our hats i felt like what you were saying again, its easy to want to be a winwin when you have been stealing stuff for 40 years. Much more comfortable with you in your role. But they felt like that was necessary and justified and when youre trying to catch up, maybe some day it will be not quite as awf often as it is right now here to talk about the trade impact on the market is catherine, head of Global Research and chief investment strategist its crazy in august its thin and is there noise or can we derive something from the future action that were expecting . No, i dont think its noise at all its 19 straight days. Plus or minus 1 premarkets i think its real news were over the top of the total fiscal stimulus for all of 2019. We have 125 billion of fiscal stimulus the tariffs are about 110 billion so were going to zero out fiscal stimulus. Wonder if taken how much its going down though that hasnt hit us directly. Its not apples to apples. Well, it is apples to apples in the sense that its fiscal stimulus is not to china thats insulating their exposure. And consumers havent felt it and havent lost it and hasnt subtracted that stimulus it is in the Economy Consumer spending. Consumers remain robust. You are your case, what youre saying now is that the tariffs have actually cancelled out. The benefits of tax reform. Without rolling back those tariffs at some point, theyre going to be there in 2020 and be there until we keep moving forward. And its the currency with the yuan now its to tariff the consumers and a conversation last week the president eluded to, he made sacrifice and economic recession for national security. And now were beginning to start having conversations about directing companies to stop doing business in countries. Were crossing red lines and theyre going to make it hard to walk back. Do you think tariffs are having this much of an effect . Thats what makes tv fun and a debate the fact is that a trade war is not showing up in real Economic Data in the United States. The u. S. Is doing pretty electrical wit well. Import prices are declining. Theyre not even rising because of the tariffs that we had for many months. Were 25 on 40 of imports for 6 to 9 months. The u. S. Consumer confidence is still extremely high and you have not seen the flow through to inflation in fact if you really think about it, this is something that i encounter quite a bit with our clients and a lot of people that i talk with. People have the impression that when you increase an import, a tariff, then the equivalent impact of that import tariff is what youre paying atw walmart thats not the case. 20 of what we consume in this country is imported, of which 20 is from china. So the numbers are pretty easy to do. The impact on the additive, which we know not everything is always equal, but the net impact on core pc over a period of time of one year, joe, is 0. 9 on 25 of total tariffs so the impact that we havent even seen in inflation and its not a direct impact on usgdp the u. S. Economy is a consumption based economy. The export or trade is 10 of our gdp. China is far more relevant its about a third of gdp. So certainly ill agree with you, i think incentives are aligned and i do think that we get to some framework terms by the end of next year. Wow bull tick, not bear tick. There you go. I know that you love that name, joe. They do but it might be because youre in miami too. In miami im happy how can you not be . Where do you live here in new york. Siberia you do . Okay darryl thanks. Catherine. Thank you. Well move on. My pleasure. Im going to sneeze. When we come back bless you [ sneezes new applications for Artificial Intelligence in the medical field. Well talk about how a. I. Can improve heart health next. And were watching the yield curve this morning right now we are inverted. 10 year yielding 1. 58 vo the hamsters, run hopelessly in their cage. Content on their endless quest, to nowhere. But perhaps this year, a more exhilarating endeavor awaits. Defy the laws of human nature,at the summer of audi sales event. Get exceptional offers now. Theres a new Study Released this morning that shows how Artificial Intelligence can determine a persons physiological age that could be years off from their chronological age. What this might mean is dr. Paul friedman hes the chair of the department of cardiovascular medicine at the mayo clinic. When you say physiological age versus chronological, i started thinking about age is justa number and were all as young as we think is that it or is it different sort of can we use an ecg to see how old somebody is . So we fed a number into a computer and essentially the computer guesses it first. You say how old is this person, it may guess 35 and you say no, 50 doing that over hundreds of thousands of times it starts to learn to read subtle patterns that our bodies are giving off and then following that, they did a test to say all right. Now, lets see if someone whose age we dont tell the computer can identify their age and it turns out it was a very powerful test we measured these with something called an auc. A perfect test is a one, flipping a coin is a. 5. This test was a. 94. Very good for predicting age. Whats the use of that . What do you do with it in medicine it turns out theres a couple of uses. Its turns out if lets say youre 50 and the computer says youre 65, odds are high that you have a medical illness your fizz oage is higher than te number of years you have lived if you are in that category and you get treatment, we saw a number of people where their age got younger again. In fact, we have a pretty dramatic graphic of one of the types of cases. Their ecg changed where they were manifesting they were younger. Ecgs dont seem that interesting. Where is it how do they differ its amazing, actually and because neuronetworks are black boxes we dont really know what they see, theyre just given a lot of information, they make these very subtle correlations that if we were able to remember the patterns for millions of hundreds of thousands of ecgs we could pick up the fine details that we just cant see clearly our bodies are giving off signals that reflect our underlying physiology. Lets look at the chart you were just mentioning this is a chart, if we have it in the control room that shows a persons age overtime. R so, their age izontal axis looks to be by the ecg, 50 and it keeps getting older until theyre about 54 and at that point, theyre like 70 by the ecg age and then something dramatic happens they get much younger and you can see they continue to get younger even as in time theyre getting older. So what happened in the circle. Thats exactly it this was somebody that had a heart transplant got the heart of a 16yearold got progressively younger and then lost weight, Blood Pressure and diabetes go away and then they get progressively younger so the main reason that were doing this sort of thing is trying to make health care more widely accessible by identifying people that need care. So if you saw it on an ecg a decade or two decades older you could get them in and try to figure out whats wrong here. Thats exactly right and ecgs are no widely available from a watch, from a smartphone that people can be tested even if youre in a Rural Community and if theres a discrepancy then maybe you should be seen by a doctor. You dont know precisely what a computer is picking up in terms of determining age, what is the first steps in terms of investigating if somebody seems older . Thats a great question so first we go back to Traditional Medicine and do a general history and physical check Blood Pressure, check sugar, check weight to see if theres something specific find. Apple has talked a lot about this have you worked directly with any companies . Increasingly, were in the process of talking to a number of potential partners because our goal is to identify the tools and build the tools and then we have to work with partners to make them widely available. Did you ever see somebody that looked like they were decades younger . You have to figure out what theyre doing. You have to get him and take him to the mayo clinic he will do it. He was out in space. He would probably donate his time to see how he became hes 88 and hes like in the amazing race or something. Could you study him . Wed love to. Broadly speaking the second potential use of this is there are lots of treatments being developed, studied, to see if we can prevent aging. Some of my colleagues are actively working on these. How do we know if they work . We need a way to assess your age. If we further validate this and say the ecgs are a marker of your age and we come up with a new pill, therapy, regimen that makes that age get smaller then were on to the right track. Perfect of nature versus nurture because i would argue a lot of it is genetic and then a lot of it is how you treat yourself and your body as go a they do theres certain things were handed and certain things we can control. Doctor, thank you very much for coming in. Thats really interesting. Thank you its been a pleasure. Dont vape. Coming up, stocks to watch today including some bad news for boeing one customer losing faith in the grounded 737 max well tell you what theyre doing about it next. Plus an update on the case against carlos ghosn that story is next as we head to break, here