Tobacco giant's stock crashes on vaping crackdown warning - Yahoo Finance

A man uses a vape as he walks on Broadway in New York City, US. Photo: Andrew Kelly/Reuters

Shares in tobacco giant Imperial Brands (IMB.L) crashed by 10% on Thursday after it warned of a slowdown in the US vaping market.

Imperial said that revenue growth was set to be slower than expected this year due to the “challenging” US vaping market and changes in Africa, Asia, and Australia.

“Whilst this is disappointing for the current year, we believe that NGP [next generation products] provides a significant opportunity to deliver additive growth to complement our Tobacco business,” Imperial said in a statement.

Imperial owns brands like Lambert & Butler cigarettes, Rizla rolling papers, and Golden Virginia tobacco. It’s “next generation products” include vaping product Blu.

Imperial said “environment has deteriorated considerably over the last quarter with increased regulatory uncertainty, including individual US state actions.”

Regulators in the US have been cracking down on vaping amid reports of deaths potentially linked to the tobacco alternative. Earlier this month Donald Trump announced that the US Food and Drug Administration would ban all flavoured vapes and last week the Centre for Disease Control and Prevention advised people to avoid vaping until possible health risks were better understood.

“This has prompted a marked slowdown in the growth of the vapour category in recent weeks, with an increasing number of wholesalers and retailers not ordering or not allowing promotion of vaping products,” Imperial said on Thursday.

READ MORE: Cigarette giant behind Lucky Strike cuts 2,300 job amid shift to vaping

Nicholas Hyett, an equity analyst at investment platform Hargreaves Lansdown, said: “Vaping’s only a small contributor to revenues and profits at the moment, which is why full year earnings per share look set to come in flat year-on-year, but hopes had been high that the vaping segment would drive growth as traditional tobacco declines.”

Imperial is not the only company to have suffered from the US vaping crackdown in recent weeks.

The CEO of Juul, America’s biggest vaping company, resigned earlier this week as the company agreed to stop marketing, amid pressure over its marketing to teens.

Tobacco giants Philip Morris (PM) and Altria (MO), which owns 35% of Juul, also ended merger talks on Wednesday. Analysts said the vaping crackdown was likely a factor in ending the $200bn deal.

“It is not a good time to be a vaping company,” Russ Mould, investment director at stockbroker AJ Bell said. “Political and regulatory pressures are coming down hard on the sector.

“While the public has been slowly switching from cigarettes to smoke-free products, there is a growing negative backlash in other circles caused by concerns over the large number of younger people vaping and the potential health threats.”

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https://finance.yahoo.com/news/imperial-brands-profit-warning-vaping-crackdown-us-blue-084504972.html

2019-09-26 08:45:00Z
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Asian markets mostly rise on trade optimism - CNN

Hong Kong's Hang Seng Index (HSI) gained 0.2%, after US President Trump suggested a trade deal with China might come soon.

Trump told reporters Wednesday at the United Nations in New York that a US-China deal could come sooner "than you think," according to multiple reports.

The news cheered American investors on Wednesday, with US stock markets having their best day in two weeks.

"Investors have been 'trade war' bearish for so long that any sliver of optimism is cheered," wrote Stephen Innes, a market strategist for Asia Pacific at AxiTrader.

Japan's Nikkei (N225) also edged up 0.2%, after Trump and Japanese Prime Minister Shinzo Abe signed a trade deal Wednesday, which reduced tariffs on some agricultural and industrial goods for both sides.

"We welcome these achievements as tangible evidence of the strength of the relationship between our two nations," the two leaders said in a joint statement.

China's Shanghai Composite Index (SHCOMP) opened higher, but slid into negative territory in the morning trade and lost 0.7%.

On Wednesday, the US imposed sanctions on several Chinese companies and their executive officers for alleged involvement in transporting oil from Iran.

"We're telling China and all nations, know that we will sanction every violation of sanctionable activity," Secretary of State Mike Pompeo said at a conference organized by the group United Against Nuclear Iran.

Elsewhere in the regions, Korea's Kospi (KOSPI) added 0.1%.

CNN's Nicole Gaouette and Jennifer Hansler contributed to the report.

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2019-09-26 05:06:00Z
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EBay CEO Devin Wenig Resigns - The Wall Street Journal

EBay says its president and CEO, Devin Wenig, is stepping down. Photo: Jacob Kepler/Bloomberg News

By

Colin Kellaher

Updated Sept. 25, 2019 9:40 am ET

Online auctioneer eBay Inc. EBAY -2.10% said Devin Wenig has stepped down as president, chief executive and a member of the board.

The San Jose company said Chief Financial Officer Scott Schenkel has stepped in as interim CEO while it conducts a search for a successor, adding that it will consider internal and external candidates.

In a statement, Chairman Thomas Tierney said eBay is a stronger company than it was four years ago, when Mr. Wenig took the helm.

“Notwithstanding this progress, given a number of considerations, both Devin and the board believe that a new CEO is best for the company at this time,” Mr. Tierney said.

EBay said Andy Cring, currently vice president of global financial planning and analysis, will serve as interim chief financial officer.

Write to Colin Kellaher at colin.kellaher@wsj.com

Copyright ©2019 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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2019-09-25 13:40:00Z
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Juul Shake-up: C.E.O. Steps Down - The New York Times

The chief executive of Juul Labs, the dominant e-cigarette company that has been the target of public and regulatory outrage over the soaring use of teenage vaping, stepped down on Wednesday.

The executive, Kevin Burns, will be replaced by K.C. Crosthwaite, an executive from Altria, the major tobacco company that owns a 35 percent stake in Juul, the San-Francisco-based company.

Juul also said it would not fight the Trump administration’s proposal to ban most flavored e-cigarettes and would end one of its campaigns, “Make the Switch,” which the Food and Drug Administration had criticized as an illegal effort to portray its e-cigarettes as safer than traditional cigarettes.

In addition, Altria and Philip Morris International said on Wednesday that they had ended talks to merge, dashing the chances of reuniting the two arms of what had once been Philip Morris.

The moves were announced in rapid succession during a month of escalating tensions in the marketplace and among regulators, public officials and parents over e-cigarettes and a spate of hundreds of vaping-related illnesses that have spread across the country. Nine deaths have now been linked to the lung ailments, causing public health agencies to warn most people to refrain from vaping either nicotine or THC products. Many of the patients have said that they had been vaping THC, the high-inducing ingredient in cannabis, when they became short of breath and grew sicker, officials have reported.

Within the last week alone, Massachusetts announced a four-month ban on the sale of all vaping products; Walmart said it would stop selling all e-cigarettes and the F.D.A. announced it had opened a criminal inquiry into the supply chain of vaping products and devices.

In the weeks before that, New York and Michigan imposed bans on sales of flavored products and the Trump administration said it would propose a nationwide ban on flavored e-cigarette products, including mint and menthol.

While no one product or ingredient has been blamed for the cause of the illnesses, Juul, as the dominant e-cigarette maker in the United States, has faced declining sales and public backlash over whether it marketed its products to teenagers. On Tuesday, the company said it was restructuring and would consider reducing its 3,800-member workforce.

If the Trump administration does go forward with a ban on most flavored e-cigarettes, Juul officials had estimated that the company’s sales would be reduced by 80 percent initially.

Juul had also planned extensive overseas expansion, but an effort in China failed almost immediately and India last week also said it would ban the sale of e-cigarettes.

In a statement, Philip Morris and Altria said they would instead focus on rolling out the IQOS heated tobacco product in the United States. They emphasized that IQOS, which Philip Morris International sells abroad, is not “an e-vapor product,” unlike Juul’s devices.

Earlier coverage

Massachusetts Orders 4-Month Ban on Sale of All Vaping Products

Sept. 24, 2019

TV Networks Take Down Juul and Other E-Cigarette Ads

Sept. 18, 2019

Juul Illegally Marketed E-Cigarettes, F.D.A. Says

Sept. 9, 2019

A Ban on Flavored E-Cigarettes Would Sharply Cut Sales

Sept. 12, 2019

This is a developing story. Check back for updates.

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https://www.nytimes.com/2019/09/25/health/juul-vaping.html

2019-09-25 12:47:00Z
CAIiELD54bqkT_189-RefvuYFasqFwgEKg8IACoHCAowjuuKAzCWrzwwt4QY

Juul Shake-up: C.E.O. Steps Down - The New York Times

The chief executive of Juul Labs, the dominant e-cigarette company that has been the target of public and regulatory outrage over the soaring use of teenage vaping, stepped down on Wednesday.

The executive, Kevin Burns, will be replaced by K.C. Crosthwaite, an executive from Altria, the major tobacco company that owns a 35 percent stake in Juul, the San-Francisco-based company.

Juul also said it would not fight the Trump administration’s proposal to ban most flavored e-cigarettes and would end one of its campaigns, “Make the Switch,” which the Food and Drug Administration had criticized as an illegal effort to portray its e-cigarettes as safer than traditional cigarettes.

In addition, Altria and Philip Morris International said on Wednesday that they had ended talks to merge, dashing the chances of reuniting the two arms of what had once been Philip Morris.

The moves were announced in rapid succession during a month of escalating tensions in the marketplace and among regulators, public officials and parents over e-cigarettes and a spate of hundreds of vaping-related illnesses that have spread across the country. Nine deaths have now been linked to the lung ailments, causing public health agencies to warn most people to refrain from vaping either nicotine or THC products. Many of the patients have said that they had been vaping THC, the high-inducing ingredient in cannabis, when they became short of breath and grew sicker, officials have reported.

Within the last week alone, Massachusetts announced a four-month ban on the sale of allvaping products; Walmart said it would stop selling all e-cigarettes and the F.D.A. announced it had opened a criminal inquiry into the supply chain of vaping products and devices.

In the weeks before that, New York and Michigan imposed bans on sales of flavored products and the Trump administration said it would propose a nationwide ban on flavored e-cigarette products, including mint and menthol.

While no one product or ingredient has been blamed for the cause of the illnesses, Juul, as the dominant e-cigarette maker in the United States, has faced declining sales and public backlash over whether it marketed its products to teenagers. On Tuesday, the company said it was restructuring and would consider reducing its 3,800-member workforce.

If the Trump administration does go forward with a ban on most flavored e-cigarettes, Juul officials had estimated that the company’s sales would be reduced by 80 percent initially.

Juul had also planned extensive overseas expansion, but an effort in China failed almost immediately and India last week also said it would ban the sale of e-cigarettes.

In a statement, Philip Morris and Altria said they would instead focus on rolling out the IQOS heated tobacco product in the United States. They emphasized that IQOS, which Philip Morris International sells abroad, is not “an e-vapor product,” unlike Juul’s devices.

Earlier coverage

Massachusetts Orders 4-Month Ban on Sale of All Vaping Products

Sept. 24, 2019

TV Networks Take Down Juul and Other E-Cigarette Ads

Sept. 18, 2019

Juul Illegally Marketed E-Cigarettes, F.D.A. Says

Sept. 9, 2019

A Ban on Flavored E-Cigarettes Would Sharply Cut Sales

Sept. 12, 2019

This is a developing story. Check back for updates.

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https://www.nytimes.com/2019/09/25/health/juul-vaping.html

2019-09-25 12:42:00Z
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Juul Shake-up: C.E.O. Steps Down - The New York Times

The chief executive of Juul Labs, the dominant e-cigarette company that has been the target of public and regulatory outrage over the soaring use of teenage vaping, stepped down on Wednesday.

The executive, Kevin Burns, will be replaced by K.C. Croswaite, an executive from Altria, the major tobacco company that owns a 35 percent stake in Juul, the San-Francisco-based company.

Juul also said it would end one of its campaigns, “Make the Switch,” which the Food and Drug Administration had criticized as an effort to portray its e-cigarettes as safer than traditional cigarettes. The company also said it would not fight the Trump administration’s proposal to ban flavored e-cigarettes.

In addition, Altria and Philip Morris International said on Wednesday that they had ended talks to merge, dashing the chances of reuniting the two arms of what had once been Philip Morris.

In a statement, the companies said they would instead focus on rolling out the IQOS heated tobacco product in the United States. They emphasized that IQOS, which Philip Morris International sells abroad, is not “an e-vapor product,” unlike Juul’s devices.

This is a developing story. Check back for updates.

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https://www.nytimes.com/2019/09/25/health/juul-vaping.html

2019-09-25 11:34:00Z
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Thomas Cook holidaymakers and crew 'can leave' Cuba, says CAA - BBC News

Thomas Cook holidaymakers and crew are free to leave Cuba, according to the Civil Aviation Authority.

Repatriation flights have been arranged with the aid of the British Ambassador to Cuba, it said.

Tourists had said they were prevented from leaving their hotels until they paid extra for their stay.

One holidaymaker, Sue Petrow, who was due to leave, said her hotel had told her she could be held at the airport unless she paid her bill.

Cabin crew from Thomas Cook had also said they were effectively being "held hostage" by security guards at a hotel.

But Dame Deirdre Hutton, the chair of the Civil Aviation Authority (CAA), told the BBC's Today programme: "That has been sorted out by the ambassador overnight, and the Cuban flight is in the air on its way back, which is very good news."

"It's also an example of how we're working very closely with the Foreign Office, which is great."

"It's very distressing for people who are finding difficulties with their accommodation, but what we've done is issue guarantees to the... hotels with Atol-protected British tourists," she added.

The British Ambassador to Cuba said hotels had been instructed to allow customers to depart without paying additional charges.

Antony Stokes said on Twitter: "Very grateful for patience of all affected in distressing circumstances."

Sue Petrow said she and other guests had refused to pay extra charges demanded by the hotel.

Holidaymakers like Sue may have paid for their rooms and meals months in advance, but hotels would normally only receive the money from Thomas Cook several weeks after their stay.

Reports suggested there was widespread concern in Cuba over whether the industry insurance fund Atol, which covers payments in the event of a firm failing, would foot the costs.

The fund covers bills that have been run up since Thomas Cook's collapse on Monday morning.

However, bills run up at hotels before Thomas Cook's collapse will not be covered. Affected hoteliers will have to apply to the liquidators for their money.

Counting costs

Dame Deirdre said the CAA had issued guarantees for payment to 3,000 hotels around the world, and had already started making the first payments. The CAA had 200 staff working with Thomas Cook employees, she added.

"Given how much those hotels are owed by Thomas Cook, it's hardly surprising that they are suspicious and angry," she said.

Thomas Cook owes hotels £338m, with one hotel in Mexico owed £2.5m, she added.

The Insolvency Service has written to local tourist boards to make sure hotels are working with the CAA on payments, Dame Hutton said.

Media playback is unsupported on your device

Repatriation

On Monday, the CAA launched the UK's largest peacetime repatriation operation to bring more than 150,000 people back to the UK after the collapse of the holiday firm.

So far, more than 95% of people have been brought back on their original day of departure, the CAA said.

On Tuesday, 70 flights brought back more than 14,000 passengers, it said. There are 70 flights scheduled on Wednesday, bringing back a further 16,500 people.

The flying programme will continue until 6 October with more than 1,000 flights planned.

Richard Moriarty, chief executive of the CAA, said: "I would like those remaining on holiday to enjoy the rest of their stay because we aim to also fly you home on the day when you were originally booked to fly with Thomas Cook, or very shortly thereafter.

"This remains a highly complex operation and I would like to thank holidaymakers for their patience as some inconvenience and disruption is likely."

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How are customers protected?

If you are on a package holiday, you are covered by the Atol scheme.

• The scheme will pay for your accommodation abroad, although you may have to move to a different hotel or apartment
• Atol will also pay to have you brought home if the airline is no longer operating
• If you have a holiday booked in the future, you will also be refunded by the scheme
• If you have booked a flight-only deal, you will need to apply to your travel insurance company or credit card and debit card provider to seek a refund

What are your rights? Read more here.

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The CAA has set up a dedicated website to keep Thomas Cook customers updated with the latest advice and news.

It is running a call centre and Twitter feed with open direct messages to respond to holidaymakers 24 hours a day, seven days a week.

The call centre can be reached on 0300-303-2800 inside the UK and +44 1753-330330 from abroad.

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Are you a Thomas Cook customer or staff member affected by the company's collapse? Share your experiences by emailing haveyoursay@bbc.co.uk.

Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways:

• WhatsApp: +44 7756 165803
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2019-09-25 09:10:24Z
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