Mar 15, 2019|
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
We wanna hear from. Thanks Steward Barry's 263566. And let us know what you think about the stories we discuss your team to the financial exchange radio network. Paula Monica from CNN business joins us now talking to us about two OK you know. Com source the Walgreens and CBS stocks are down 10% to 15%. This year just year to date the health care sector as a whole if you look at the vanguard health carry TF that's up a good. With that maybe 5% this year sir it's not a health care sector problem. You what's happening here how are the two companies diverging away from each other and what are the risks with them going for Paul. Yet these are all great questions and I think eight you know somewhat similar in some respects the beer bowl. These challenges. Increased competition. From am not sure we've Amazon to pack position. Hurting. Them with regards to use you know on. Omar and work. You don't and there are other retailers Costco. Here. Broaden this to work that. You've been out to different channel Walgreen. You know these things alive issues currently need to use the EA cracking. On secret you know miners as well. Eight being you know cigarette and you know laundry they'll sell these products while media you. Want to appear couple years ago you know there is not it. Is broader strategy yet healthcare company that you know he'd yet at. I. He you know not something I think that. Acts should hear that the children. An ad do you see the two companies can diverging here is that that was I guess the first step in 24 to you when CBS and they were no longer selling cigarettes. Now they've done the bidding pretty much completed the ad now acquisition Walgreens doesn't have that insurance business to rely on this point. B do you think that's an overall net positive for CBS or is it have the potential be a net negative for the. Yeah I'd been there it's all Mitt. Lady we. And the acquisition date eight yes it's much more to burst the side sort of you know the real one stop shop. Health care companies they also. Caremark part of that is. There increasingly trying to get people with him with there in clinic. You know he's active I think it needy people don't wanna go to the doctor. For quick it war. I think that's really going to be helping but I think there to burst the that will be at the city that we essentially. You know which that's not be. Higher higher outrage and what all. On one side we've got the trump administration and pretty much everybody talking about how drug prices are too high on the other side we're gonna be starting on you know democratic GAAP primary debates this summer. How much political risks to these two companies have they seem to be kind of getting it from both sides at the moment. Yeah I think that you know health care in general is going to be a factor that it investors at this they'll watch very well he beat be. 20/20 election in. You know the act out if the union president pat B you know critical. Some companies were I drug prices. You know I think one of the problems that oh he yet. Autry. You know definitely facing you know is the increased. Bound. You know generic drugs that you know. That's great for consumers but may not necessarily its earnings. Prices and the reimbursement rate I think that there could be increased Pol Pot. Tried using that which origin where the bar. Do you think there's anything new about the Amazon JPMorgan Burke sheer. You know. Team up they haven companies that CVS and Walgreens now need to be worried about as aren't anything new being announced about that that they're looking out. They. If they have to pay very close attention to but I'm not so sure it's as big of a rat. Just yet I mean I think Amazon as a bigger threat not necessarily to the insurance the does that help acting. But you know I as long is that you know companies are. Bill's going to be yeah you know but I think helped characters stump or pitcher yet united howl or. He yet and not you know acting. You know that he eight it is just that you know something that you know it is another thing that contrived cost lower which is great news. It was me not necessarily because it's just. Right Paula Monica from CNN business talking about Walgreens CVS Paul thanks coming on have a very we can't argue keep.