Q2 is at 10 the president says markets would crash if impeachment moves forward. Plus, vaping fallout Philip Morris joining us after calling off merger talks and shares of beyond meat soars, as mcdonalds begins testing, the plt, a tomato burger. The house impeachment inquiry remains in focus futures are pairing their gains as the house releases the whistleblower complaint. Joseph maguire is set to testify on the hill, before house intelligence well keep you apprised of headlines for that the president did retweet a comment this morning, suggesting that the markets would crash, if impeachment happens. The history of when clinton was impeached is one of the first day tech was down, 4. 5 . Nasdaq, after that, it was the greatest buyup effort. Im not going to buyin if the markets crash. I would buyin if he was convicted by the senate. You need twothirds of the senate i feel like where we are here is like, the whistleblower you know where were back to were back to one of the situation wheres theres people that hate trump so much, you see what this whistleblower said thats a lockdown. Whats lockdown . This is not the smoking gun that a lot of people were expecting, except for the people that hate trump so much that anything is a smoking gun. This is not a trial impeachment is a political process, not a judicial one. Right its up to the house. According to politico, they have the votes if they want i think that Speaker Pelosi is a great headcounter but a week ago, i know she didnt want this new evidence changed her mind. Its great to people change their mind i believe, even though the democrats assured me this would not happen, you read the stories and you dont know what happened other than the legendary ukraine funny man seems to be happy. Maybe he was the wrong guy to say that trump bullied h im. Again, you say, i dont know this is too hard forget about it. How did nike do . How this inquiry process impacts trade. Passage of usmca any spending deal. November 21st, youre facing a shutdown of the government not to mention gun control and drug pricing usmca is a big deal theres a lot of Great Companies in a need that i know that Speaker Pelosi wanted that to happen last week. Was worried about safeguards speaking with the president s people yesterday, it is harder to challenge thimagine that som trying to impeach you would sit down and make a big deal with you. That hurts u. P. S. , ksu, the companies i spoke to wanted this kantor is out there, saying transport is essential transport is hurt by that theres no two ways about it, thats just true you need nancy pelosi to say, this is not a risk the american person needs it thats a harder dialogue, a harder storyline from what she said yesterday its disparaging from the view of stocks. We want to pay less for stocks, because of the fight there are people that say, listen, jim, this is a constitutional crisis. We should sell all stocks. Every crisis, other than 2007, have buying opportunities. The fundamentals matter. Really, great read across the board for the technology k. B. Holmes, really amazing. Whistleblower, ukraine funny man. Hard to dovetail i pick up tthe new york times. And it says that trump has been found guilty oh, no not yet. Its so hard to understand im not saying democrat or republican im saying its hard to understand if were going to have a conversation about fundamentals, corporate profits are starting to get squeezed. Theres trade and incremental costs on trade but wages are um we get pce now i think wages should be up. Workers have been underpaid. And theyre catching up. In the k. B. Holmes call, the labor costs are going up theres a shortage of workers. We dont allow immigrants to come in as we used to. You just have more immigrants come in. Thats part of the price thats part of the Collateral Damage going for 2 unemployment this economy is still strong, except for the companies that are related to china those that relate this to china are missing the point. You go over to nike. This is a company by china and for china, of china. And nike was incredible. Starbucks in china china is the strongest part. If we had tim cook, he would say, china is really strong. It is steel. It is there are lots of certain lumber today the lumber companies that made a big bet with china thats strong. When i look at the retailers, like walmart, amazon, which is in the crosshairs of the government target and costco is doing so great home te depot, another report today. Its all about the consumer here and the wheels of commerce are continuing to turn, david faber. Whether its mma or a big ipo where you are. Well talk about pel peloton later. The talks between Philip Morris yesterday. Joining us in a cnbc exclusive, is the ceo of Philip Morris international, Andre Calantzopoulos they concluded without reaching an agreement, yesterday or the day prior. Why were you unable to reach an agreement . As you know, we already have a relationship with altria because of the license for distribution in the u. S. What we looked at is if theres a better way to get value for shareholders, in terms of additional revenue, and inner jis. In additi more focus on both sides. The environment taken into consideration. Shareholder sentiment. The effort required and the priorities on the market the best course of action is discussions on the merger. And focus, instead, on the forthcoming partnership. My understanding is there was a likelihood of a deal, until this vaping crisis, if we can call it that it began to become something of great significance do you think you would have reached an agreement, were it not for banning products in the u. S. And around the world. Yeah. It is an evolving environment, just now in the u. S. And i think what we see is first of all, to look at the bigger context, all tobaccocontaining product, including Nicotine Products are regulated by the fda we had an exception for a period of time for the vape category. If i remember the conversations, it was a Small Company and small procedu entrepreneurs and it was a process. It is an emotional issue, as you know it involves using by teenagers and vaping this should be the priority by everybody to address this is a serious issue. I think, over time, if we take a twoyear of threeyear horizon, we will be going through the application process, say end of 21, 22, we will see a highly regulated, in terms of product, marketing and other restrictions category but i do believe that at the end, strong brands and companies that have size and are doing the right things, will be the ones that will be the winners forecasting exactly how this is going to happen with High Precision is a bit difficult today. Is that why, given the lack of ability to forecast right now in this moment, to reach a deal with altria . No. I think thats not the case. We took everything in consideration. Including Investor Sentiment tell me about Investor Sentiment. Do you think they failed to understand the strategic rationale for the deal you werent able to talk about it exactly people were talking to me about the ability to bring together the two organizations, invest more in r d, using the window that is open now, as an opportunity. Did your Shareholder Base appreciate why you wanted to do it shareholders have their own opinion, we couldnt explain this is closed the discussions have ended for the foreseeable future we can only focus on getting the product that has authorization by fda on the market we have a corridor because there will be a lot of change in the vapor market thats where the companies are going to focus i think, arent you in some ways, not in line with your own Shareholder Base are they not understanding some of the weakness you see in the overall business or the need to move more aggressively or are you failing to understand their concerns in some fashion i think sometimes there is a little bit of confusion amongst shareholders in general, about all of the new categories. Thats understandable because the category is new. Theres discussion about decline of cigarettes. And obviously, as the new categories emerge, and consumers and smokers, move from cigarettes to this alternative, hopefully they will be proven to be better. We will have a decline in cigarettes if we take japan, for example. We have a 25 decline in the Cigarette Market because products hit like others, have convinced consumers to switch the product. This is good for Public Health this is what is going to happen. However, who is going to be the winner and the loser is what shareholders are worried about were positioned in this market and internationally. We have the portfolio of products for, you know, the new world. We have the first, as i said, that is approved, by the fda i think were wellpositioned to be the winners in the longer term, where we hope one day cigarettes will stop existing and better products will be used by people that will not otherwise switch thats how i see it. Now, i understand that anytime there is transition in industry, shareholders are worried but i think both companies are very wellpositioned for the future okay. I think also, you know, we see very good first steps. Announced yesterday, from juul, that has been at the center of the discussion yes, it has its not the only Vapor Company out there. But its the first very good step and i think that was the right decision from the board of directors. Also, with the experience from the regulated category, playing a role and playing going forward. We need to focus now, on getting the products through the process of the fda, because theres a lot of emotion and a lot of overreaction sometimes and address the youth use of nicotine and that requires quite a lot of action not only strict regulations of flavors but requires age limits, Access Control of retail, technology to do that, technology in the devices and education. Were told that children dont smoke. I want to stop there, if i can. My colleagues at the new york Stock Exchange, have a question. I have to question whether you think that both companies have a good future only thing that altria had a Renegade Company called juul you chose to go through the fda. Would you have advised juul to take the strategy they did or would it have been better had they gone through the fda, rather than fool people im sorry. Convince people over 21 im sorry, they used a lot of underaged people what im saying to you, is they did it the right way did you expect juul would do the back door . And did you think that was right . I think juul and any other product, has to go through the fda. We think a nicotine product must be regulated and the fda has the best process in the world and i encourage everywhere else to adopt similar processes it eliminates confusion and a level play field were in the process in the u. S. , as of may next year, everybody has to submit pmta these things take time and a lot of investment to do. The companies can do it. I think the thing will be better addressed. Premarket will be reviewed and postmarket, they will be followed by the fda. And i think, under this scenario, we will have a much better industry and the best players and the best brands will prevail. I encourage everybody to go there as fast as possible. Shouldnt juul just pull its product . Suspend it everywhere in this country and maybe the world, until we get the data we need . Why shouldnt juul say, full stop lets do this. Wouldnt that be the right thing . I have kids. I wish they would do that. Well, as i said, product is one thing and i think we need strict regulations of flavors. Im not mistaken juul is the only company thats removed flavors. I see states regulating the products and taking them out of the market we have to be careful not to have another exaggerated reaction we need to focus on kids not putting their hands on this product. But also, take into consideration the millions of americans today, that use a vapor product. You know, be careful that what is going to happen to these people, if we have a blanket elimination or ban of the product. I think we need some moderation here and longerterm thinking once the fda process has finished, things will become calmer and much more clear what does that mean for the u. S. Market for the time being and i mention that Imperial Brands slashed its growth expectations because of next Generation Products in the u. S. , namely vaping, for example, deteriorated over the last month or so. Given the concern. Is that tyour expectation is the market for new and replacement Tobacco Products going to be in flux, if not doing well for some time the companies do things right. We put them for a scientific assessment, clinical and preclinical. And then, we submit to the authorities, including dfa consumers get the assurance that they can trust the product and what we communicate as a manufacturer is truthful and not misleading should make it clear. The tobacco product, youre partnered with altria, here in the u. S. We should not be conflating vaping in general. I think when products go through the fda process, and they do the right assessment, well see that vapor products are better than cigarettes and more appropriate for Public Health. You believe that . They have to go through the process. You believe they will be better for health than tobacco yes, i do why they have much more toxicity and exposure to chemicals, vastly lower than cigarettes the thing is, they have to go through the process. Once this is done, i think the category will recover. But with the right restrictions, the right limitations, the right Access Controls, so we dont have, you know, kids using Nicotine Products. Right and then, adults have options to switch. And this category is the future. And i think we are very well positioned to succeed in the category because we are the leader in this category. You believe, your goal is to replace tobacco. Absolutely. Is that going to be hindered in part because of the concern, now, about vaping and, perhaps, even simply because people are concerned about the replacement products overall are they just going to stay with tobacco longer i think some of the comments made are confusing people who smoke today. Sometimes they dont know if the products are worse than secrets. 50 of americans believe that the vapor products are worse than secrets cigarettes i think thats wrong. We have people dying from vaping its deeply concerning that people die, irrespective of the reason from what i understand, the fda and the cdc, are investigating the Health Reasons for that. But my understanding is, this is not concerning traditional vaping products that contain nicotine it concerns other substances we should be careful not to create confusion among the millions that use vapor products this is not traditional vaping products with nicotine and actually, the products existed in the market. Right for so many years and we never had an issue i think we have to let the authorities conduct their investigation. Dont buy products from the black market thats where we have an issue. Before we end, lets get back to the deal itself youre not talking with altria any longer about this merger of equals do you think you would reenter those talks when the conditions are clearer in terms of the products that youre talking about . Well, the talks have ended. And for the foreseeable future, well focus on other things that we do together there are many ways to continue our collaboration. I think coming out of the discussions, were better aligned on many things why are you better aligned on many things . Were spending time much more closely. We are aligned obvio ee eed on. And we have enough ability, without the merger, to further both portfolio of companies and create shareholder value for both companies thats still a good collaboration. We look forward to checking in with you along the way. Appreciate you taking the time this morning thank you very much Andre Calantzopoulos back over to you peloton is going public today, after pricing the ipo on the high end of the range. Also ahead, capitalizing on 5g we have an exclusive with the ceos of verizon, qualcomm. Facebook, gm and a lot more en weomba ce ck. H a new level of privacy and security. Daily cash you get back every day. And no fees. Not even hidden ones. Oh, and if you happen to be somewhere that doesnt accept apple pay yet, theres this. Nice. When i needed to create a better visitor experience. Improve our workflow. Attract new customers. Thats when fastsigns recommended fleet graphics. Yeah, and now business is rolling in. Get started at fastsigns. Com. David faber at the nasdaq today. My colleagues are down at the new york Stock Exchange. Were awaiting the open of peloton here at the nasdaq thats not why it was here but its always interesting to be at the same place where the ipo will open. Lets get to the mad dash. Jim, take it away. Yeah. Very exciting news if you own stock of beyond meat mcdonalds is testing a plantbased burger in canada i talked to the ceo this morning. This is a dream come true. He is confident that people will like it. Of course, its his. He is talking about mcdonalds being the moby dick. And hes gotten moby dick. I would not bet against this faux burger. I would not bet against this better Delivery System for grain for your body than going through a cow. I think this is going to succeed. I welcome mr. Eastbrook to come on he has always been shy this has the stock flying and i dont think its done. You dont no. Theres a lot of people who like it you know, look let me be careful here where they did the big secondary, not far from here, has been a lid but the stock is shorted theres a lot of excitement for it is it a flash in the pan no should the stock be as high as it is . No but people will be juiced by the fact theyre at mcdonalds weve been waiting and waiting maybe you have to go to southwestern ontario, which is also the cannabis capital of the world. Its only 28 restaurants. And its only 12 weeks how do we know its going to stick . I have never seen ethan brown be this excited. These a proth selytize