tv On the Money CNBC August 17, 2019 5:30am-6:01am EDT
hi, everyone. welcome to on the money, i'm becky quick. it may be a gem of an idea when it comes to profit, but what do ju juul e-cigs mean back to school season may mean it's time to have "the talk." not that talk, but a conversation about college costs and who pays and if you've had your eye on that little red corvette, we
have a sneak preview this is "on the money. now becky quick. >> we begin with vaping. e-cigarettes which are advertised as a way to curb smoking are also popular among teenagers. nearly 21% of teenagers vaped last year. and it's being called an epidemic for the first time, juul labs is allowing our cameras into the factory. >> this is where the injection of the e-liquid takes placement. >> reporter: juul labs runs a production lab day and night filling some of the 60 million pods it sells every month. kevin burns has opened his doors to us, aware of the firestorm his product category has ignited among families if we did this tour today with a
parent of a teen who had been using or addicted, how would you defend all this? >> first of all, i'd tell them i'm sorry that their child's using the product. it's not intended for them as the parent of a 16-year-old, i'm sorry for them and i have empathy. >> reporter: burns has removed some of juul's flavors. >> their ads absolutely were targeting young people with lots of color, bling, music >> reporter: juul's latest campaign is focussed on adult users. >> it was a friend of mine who said why wouldn't you just try the juul >> reporter: but investors have had new concerns lab animals surf frffer from
hardening of blood vessels >> it's like giving a knife to someone instead of a gun >> we have not done the long-term, longitudinal testing we need to do. >> reporter: challenges for a growing industry already under fire, working to ease parents' concerns while convincing others it can help them kick the habit. for on the money, carl kent nia. earlier, the fda announced it was investigating 120 cases of people suffering from seizures after vaping. joining us is dr. scott got leeb on the board pfizer. we know vaping is safer than smoking cigarettes, but this is a relative situation where do you come down on this how safe is it to vape >> right, there's no question if you can get a currently addicted
adult smoker, it's going to be less harmful, but less harmful doesn't mean safe, and we can't allow these products to be on the market at the expense of addicting a whole generation of kids on nicotine and onto these products there are going to be direct effects of these products on people's health and lungs. we have animal data and now human data that the vaping products do have an impact on health and the lungs. >> what do you think the ceo of juul saying his product wasn't intended for teenagers and apologizing to parents of teenagers who are addicted to this >> i think the product was positioned in the early years in a way where it was appealing to youth. if you look back at some of the early marketing campaigns and social marketing that was done, i think juul in particular is guilty of trying to pursue
growth without an eye to what was hammippening in the teen market it's very hard to reverse a social trend, and an item that's become very fashionable among kids when you're dealing with an addictive substance. these aren't pokemon cards or a gameboy. it's not a fad that gets turned off after a year and changes from one year to the next because the underlying product is an addictive substance. so you're building a whole cohort of teens who are addicted, some percentage of which are going to go on to be smokers of tobacco >> do you take his apologizies seriously? >> i think the company for a long time marketed very aggressively and tried to grow their top line very aggressively, and people weren't looking at what was going on beneath the hood and we are going to have the results of the 2019 tobacco
survey maybe this month or early next month i think the agency's going to have to step in and take more forceful action, perhaps targeting the pod-based e-cigarettes >> juul pulled back on selling its flavor pod last year under your leadership, scott san francisco banned sales of e-cigarettes all to the. together. do you think these are the right steps? >> we'll have to try to snuff out the youth epidemic the way to attack the problem is reduce the access and appeal that these products have to kids and the access point is the convenience store. we have a 18-year-old going in and buying it for a 16-year-old, so tobacco 21, raising the age to 21 makes a lot of sense, and the appeal are the flavored products so juul did pull out the
flavored products from convenience stores so that's a good first step. fda fully implementing that policy, it might not be enough at this point because you have an accelerating epidemic, and we're going to have to look at the pod-based products as a category if you continue to see the youth use rates go up. >> you recently wrote an op ed that said cbd was getting out of hand we see cbd bruproducts selling everywhere should it be regulated >> it will be regulated. the reality is the farm bill which legalized the sale of hemp preserved fda's authority and it needs to be regulated. it's marketed as an improved drug and studied as a drug in order to be put in the food
supply, fda needs to create a regulatory pathway it can probably have cumulative effect a lot of the cbd on the market is very high concentration a lot of the cbd has high concentrations of thc, the substance found in marijuana >> we really appreciate your time it's also a pleasure to talk to you. up next, starting a family can be exciting, but it can also be nerve-wracking. how a new technology platform is getting mom and baby the best health care. it's raised millions of dollars from serena williams and mark cuban. and later, saving for college. you may be in for sticker shock if you haven't looked at prices in a while how can you make sure you request afford your kid's college of choice? let's take a look at how the stock market ended the week.
the arrival of every child is amazing, but too often childbirth can be dangerous for the mother about 700 mothers die from pregnancy-related complications each year in the united states, more than any other developed country. to try to improve maternity health care, a company has been founded called m-a-h-m-e-e why do we have such a lousy
record >> this is a problem that has persistented f persisted for years. health care in the united states is very fragmented and this makes it's personally difficult for parents trying to navigate the experience when you have all sorts of providers, the obgyn and pediatrician and other specialists but are often in different organizations or practice >> you came up with mahmee talk about how it works and how you came up with it. you're building on your mother's work >> yeah, the inspiration is my mother's work. a pioneer in maternity health care and board certified lactation. she designed some of the most successful programs in the country. so building on that, i saw an opportunity to incorporate technology into much of the work over the years to connect up the
patients and providers and all the other care specialists often outside of the building but an important component of the prenatal and postpartum experience >> you've been around since 2014, you've assisted in 12,000 families what have you been able to do to help these families over that time >> what we've found is providing comprehensive support and focussing on proactive and preventive health care for families is the key to preventing serious mortalities and morbidities. it's really important to invest heavily in providing support before things become a medical crisis for mom or baby >> what's an example of a case where mahmee really made a difference >> we're often the first to catch postpartum depression in new mothers, because even if there was a healthy proegsy and delivery, there's still a chance
for postpartum depression. what we've done is to proactively engage with moms, check on them, do video calls and phone calls and in some cases do a home health visit in the days following delivery to find out how mom and baby are doing and stay in touch for the weeks following. >> would the person doing the video chat or the visit, would they just notice the mom was showing signs of this or the mom comes out and says thanks for asking, i need help. >> our team is trained to provide care and understand where families are at, meet them where they're at >> who pays for this do the patients pay for this or is someone else picking up the traab >> we're partnering with the largest insurance companies in the country to make this happen. >> serena williams and mark cuban have ponied up about $3 million. serena williams almost died herself, which is crazy to think
of a top athlete being in a condition where she might have these issues as well >> in addition to mark cuban and serena williams we have a number of other investors who were involved in that $3 million raise, and all of them see the major opportunity here to fundamentally change the way that maternal health care is expanding across the country >> right now you're in california >> yes, we're in a few other cities across the country. pittsburgh and families and parents that have joined on their own, directly through the site, which is possible. anyone can join on their own >> it's called mahmee, which is m-a-h-m-e-e. up next on the money, back to school season, and no matter your child's age, we have tips to make sure your college savings plan is on track and later, the core vvette s getting a makeover we'll look under the hood to see the big changes in this iconic muscle car
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back to school season brings the cost of college front and center for many families it's never too early to start thinking about it, yet it's a conversation many parents and students are reluctant to have correspondent sharon epperson joins us with more on this and sharon, for a family to figure out what they're going to need, they need to first understand how much it's going to cost.
what is the a cost >> at least look at today's numbers, 2019 school year, if you are going to in-straight university, it's about $21,000 for out of state, it was $37,000. private university, more like $48,000. and it's only going to continue to go up >> right >> multiply all that by four you hope not five >> and then how many kids you have >> exactly >> by 12 or 16 it starts to add up pretty quickly. why is it important for families to have this difficult talk? >> it's a family affair to pay for college, or i think it should be. but many parents and kids do not talk about it. t rowe price just came out with a survey and looked at how many kids think it's their parents' responsibility to pay for college? most of them do. parents don't agree. only 42% of parents say it's not their responsibility but this is the important part
a third don't even have the conversation and you know, they think it's a scary conversation to have about talking about saving for college, it's scarier if you're not on the same page and your kids think you're paying and you don't agree. >> and nobody talks about it until the very last minute what do parents and students do? >> the first thing is to save. we've talked about 529 plans, those are great tax advantage plans. >> the earlier you start with this the more of a tool that it really is. >> exactly if you look at putting in just $1 $10 a week, by the time they're 18 they'll have $15,000 in that plan how many people start at birth, we're about to send them to college now. that's when you have to come up with creative ways to look at different scholarships
but the college board has $5 million that they're giving away for creating a college list on the college board website. so that's one way to look at it. look at the creative scholarship opportunities. you just, you're on honor roll, you belong, you belong to a sports team, can you sign up for "raise me", and colleges offer small micro scholarships, but it can add up once you're accepted to the school you can get these scholarships >> but the big, big piece of advice is start this conversation early, make sure you're on the same page. >> the kids should have some investment in it, too, open up a roth ira, have them put money from mowing lawns or babysitting, let them start to build up their savings if they use it for retirement, great. if you need it for college then they have a vehicle. >> you can use a roth ira for
college? >> yes any contribution that you put into a roth ira is yours to take out whenever you want to >> sharon, thanks. up next, a look at the news for the week ahead, and in the market for a new sports car? we'll talk about how gm is revving up interest to its iconic car with majorup grades u. s
here are the stories coming up that may impact your money this week. monday is the 15th anniversary of google's ipo. the search giant's ipo price was $85 a share. today it's up about 2600% from there. on wednesday, the federal open market committee will release its minutes from the july meeting and we'll see how the housing market is doing with last month's existing home sales. on thursday, cadillac was founded in detroit in 1902 and we'll see how many new home twrs sohome were sold last month the corvette is getting a makeover and it has fans all revved up. we went to california where fans are ready to put the pedal to the metal. >> reporter: gm took the wraps
off the latest version of its star car, the corvette >> finally, here it is, ladies and gentlemen, what do you think? [cheers and applause >> this car is very, very different, in terms of what you see and where you point the car when you steer it. and how it behaves and it is very different, but it's still very corvette >> while this new corps vet hve many of the styling cues, it looks far more muscular. it's the first vet with an engine in the back of the car behind the driver. >> they moved the engine to the back so it's over the rear wheels, and that gives more weight holding the wheels down and it allow it is to accelerate more and the sky's the limit, frankly for power and performance now. >> for years corvette has been known as the sports car that deliver the most bang for your buck power and performance for far less money than other sports car like porsche and ferrari
still, many have clamclamored f new model. >> this is a chance to get everybody's attention and say you forget about me. i'm still a phenomenal car at a great price. >> to get ready, gm is expanding its plant in bowling green, condition k kentucky, hiring 400 more workers. it will be interesting to see what the demand is the initial price is expected to be a base price under $60,000. of course it can go up dramatically from there. it will be interesting to see how much attention this vehicle gets, given the fact it is priced as low as it is, at least the base models. >> the other thing is auto loan interest rates have dropped to about 5.8% what does that mean for the auto industry and in terms of who can buy these cars?
>> it certainly opens up the market to more people who will say i'm not paying as much on an auto loan or to buy any vehicle. and the feeling in the industry is that these lower rates, which are being driven down by the overall interest rate scenario in this country right now, the feeling is that those lower rates should make more people say okay, i'm ready to go into the showroom, because i'm not going to be paying as much in interest >> thank you very much that is the show today, i'm becky quick. thank you so much for joining us next week. the state that will pay you to move there and by the way, it's a pretty nice place to live we're on the money, we'll see you next weekend ahh... your teeth hurt? sensitivity. gotta do something about it. new crest gum and sensitivity starts treating sensitivity immediately, at the gum line, for relief within days and wraps your teeth in sensitivity protection. ohh. your teeth? no, it's brain freeze! crest.
hey, there, it's friday at 5:30 pri 5:30 p.m it's time for "options action. >> has the market this week left you feeling like -- carter worth has drawn up some plans to help you get your footing back. and -- >> use the force, luke >> or, better yet, use a caller on the force dan nathan guides you through volatility on sales force earnings plus walmart, standing apart from a negative week in