Parliamentary arithmetic ‘is terrible for Boris Johnson’: Market analyst


LIKE JACK DANIEL’S TO HARLEY DAVIDSON. MARIA: LET’S BRING IN MARKET ANALYST, SENIOR MARKET ANALYST, CRAIG, THANK YOU FOR BEING HERE.>>GOOD MORNING. MARIA: WHAT DO YOU EXPECT IN TERMS OF BREXIT SITUATION AND IMPACT ON MARKETS AN THE UK ECONOMY?>>WELL, WE ARE SHOWING POSITIVE IMPACT ON THE MARKETS, BUILDING OVER THE LAST WEEK EVER SINCE BORIS’ NORTHWEST OF ENGLAND A WEEK AGO, THE IDEA THAT WE WERE ON A PATHWAY TOWARDS POSSIBLE DEAL GOT PEOPLE EXCITED AND INTO THIS WEEK WHEN THE DEAL WAS ANNOUNCED. THE NEXT HURDLE, OF COURSE, PARLIAMENT R THEY GOING APPROVE THE DEAL, MY GUT SAYS NO. I FEEL LIKE THE EXTENSION, MOST LIKELY SCENARIO AT THIS POINT AN ELECTION AND THEN I THINK THE DEAL GETS THROUGH LATER ON THIS YEAR. MARIA: DO YOU THINK MARKETS TRADE DOWN ON MONDAY IF THEY GET A NO-VOTE TOMORROW? WILL THERE BE A MARKET REACTION?>>I THINK MAYBE WILL COME OFF A LITTLE BIT, WE ALREADY SAW IT COME OFF A LITTLE BIT YESTERDAY WHEN DUP CONCERNED THEY WOULDN’T BACK THE DEAL, MAYBE DIFFICULT IN PARLIAMENT, WE SAW THE POUND PULL OFF A LITTLE BIT, A WEEK OF SUBSTANTIAL GAINS, WE MAY PAUSE A LITTLE BIT BUT I DON’T THINK IT ALTERS THE LONGER-TERM, THE LONGER-TERM GOAL TO GET THE BREXIT DEAL OVER THE LINE, WE HAVE TO REMEMBER, AS WELL, THAT ESSENTIALLY ELECTIONS DO NOT GIVE DEAL, IF THEY DON’T GET A MAJORITY BETWEEN THEM, ALL OF A SUDDEN YOU HAVE A SITUATION WHERE THE OPPOSITION PARTIES COULD HAVE A MAJORITY, NEW COALITION AND ALL OF A SUDDEN BECOMES A POSSIBILITY BECAUSE THE REFERENDUM IMPACT AS WELL, THAT’S IN THE LONGER-TERM, WE ARE TALKING IN THE NEAR TERM YOU HAVE A LOT OF VOLATILITY AND KNEE-JERK REACTION, THAT’S EXACTLY WHAT THEY NEED.>>JAMES FREEMAN AT THE WALL STREET JOURNAL, OBVIOUSLY A LOT OF POSSIBILITIES YOU JUST WENT THROUGH SOME OF THEM, YOU’RE SORT OF BASE CASE IT SOUNDS LIKE YOU’RE EXPECTING A BREXIT DEAL, NOT THIS WEEKEND, BUT LATER IN THE YEAR AND I’M WONDERING WHAT — WHAT CHANGES IN THAT DEAL AS FAR AS BUSINESSES ARE CONCERNED TO GET IT OVER THE FINISH LINE, WHAT YOU SEE AS A MAJORITY BILL OR BREXIT?>>SO LIKE I SAID, IT’S THE PARLIAMENT ARITHMETIC THAT WORKS AGAINST BORIS AT THE MOMENT, HE CAME INTO THE JOB AFTER 2017 ELECTION, THEY WERE RELYING ON VOTES WHICH THEY LOST AS PART OF THIS DEAL. THERE WAS ABOUT 24, I THINK, EFFECTIVELY KICKED OUT FOR THE PARTY, VOTING AGAINST THE GOVERNMENT ONLY EXTENSION IN THE FIRST PLACE BUT THE ARITHMETIC IS TERRIBLE FOR BORIS JOHNSON, IF WE CAN IMPROVE NUMBERS IN THE ELECTION, SUDDENLY THE ABILITY TO GET THE DEAL THROUGH PARLIAMENT BECOMES MORE A LOT MORE REALISTIC. FROM A BUSINESS PERSPECTIVE, I THINK BUSINESSES AT THIS POINT ARE REALLY RELIEVED THAT THERE’S A DEAL ON THE TABLE AND A DEAL THAT THEY THINK COULD GET THE NUMBERS IN IDEAL SCENARIO, ONE THAT PROVIDES CERTAINTY AND ONE THAT INCLUDES DEAL FOR THE NEXT 2 YEARS RATHER THAN NO-DEAL BREXIT. I THINK BUSINESSES WILL BE VERY RELIEVED RIGHT NOW, OF COURSE, LIKE I SAY THIS TINNY TINNY POSSIBILITY OF NO-DEAL BREXIT, THEREFORE BUSINESSES ARE GOING TO BE BREATHING A BIG SIGH OF RELIEF. MARIA: CRAIG, ANY THINGS DRIVING MARKET THIS MORNING, WE HAVE A POTENTIAL OF CHINA DEAL, ARE THOSE THINGS DRIVING MARKETS AS WELL AND WHAT KIND OF SENTIMENT ARE YOU SEEING OUT THERE FROM INVESTORS?>>YEAH, IT’S HARD TO SEE OUTSIDE OF BREXIT WHEN — MARIA: OKAY.>>BUT OBVIOUSLY BIGGER THINGS HAPPENING IN THE WORLD, THE TRADE DEAL, SO, YEAH, MANY OTHER

Canopy Growth CEO: We want regulation of CBD


YOU’RE NOT ALREADY. SPECIAL GUESTS TO REACT TO THIS, BRUCE LINTON, CEO OF CANOPY GROWTH WHICH I’M TOLD IS THE LARGEST LEGAL MARIJUANA GROWER ON THE PLANET. THAT’S YOU.>> THAT IS TRUE. STUART: OKAY TELL ME ABOUT THESE HEARINGS TODAY IN WASHINGTON. WHAT IS IT ABOUT CBD? DO YOU WANT REGULATION?>> YES, WE MORE THAN ANYBODY WANT REGULATION BECAUSE WHAT HAPPENS IN THE ABSENCE OF REGULATION IS CONSUMERS DON’T KNOW WHAT THEY’RE GETTING OR NOT GETTING. IS THIS WITH CHEMICALS? IS THE DOSEAGE AS DESCRIBED? AND SO WHEN THERE’S NO REGULATION, THAT’S WHEN THE SKETCHY PLAYERS PROSPER AND WE WANT REGULATION. STUART: BUT IS THERE ANY ACTUAL PROOF THAT CBD IS AN ANTI- INFLAMMATORY OR A MILD PAIN-RELIEVER? IS THERE PROOF OF THIS?>> WELL THERE’S A PHARMACEUTICAL COMPANY WHICH TOOK THE MOLECULE AND PUT IT THROUGH TRIALS TO SHOW THAT IT HAS IF EFFICACY IF YOU WANT TO CALL IT SEIZURES AND SO THAT’S A SPECIFIC STUDY AND IT GOT APPROVED TO BE A PRODUCT IN THE U.S. BUT WHAT I THINK YOU’LL FIND IS THERES SO MUCH ANECDOTAL WHAT WE WERE DOING WITH CANOPY IS ACTUALLY RUNNING THE TRIALS NOW SO DOES THIS DIMINISH ANXIETY IN A CANINE IS A GOOD QUESTION TO ANSWER AND THEN YOU NEED TO KNOW WHAT DOSE DO YOU NEED TO GIVE, HOW FREQUENTLY DO YOU NEED TO GIVE IT SO THOSE ARE THE SORTS OF THINGS BECAUSE IT’S FEDERALLY LEGAL IN CANADA, IN GERMANY, WE CAN RUN THOSE TRIALS STUART: YOU CAN DO THAT BECAUSE IT’S FEDERAL AND LEGAL IN THERE?>> YES SO YOU CAN ACTUALLY PULL ALL OF THE INGREDIENTS TOGETHER AND WE’RE RUNNING SLEEP TRIALS SO IF YOU’RE IN CANADA AND YOU HAVE WHAT’S CALLED PRIMARY INSOMNIA, YOU CAN’T STAY ASLEEP, WE’RE RUNNING A SLEEP TRIAL WHERE WE’RE PUTTING PEOPLE IN A DOUBLE-BLIND FDA STUDY TO SEE WHICH COMBINATIONS OF INGREDIENTS CAUSE YOU TO STAY ASLEEP SO YOU CAN BE SHARPER AT WORK THE NEXT DAY. THAT KIND OF STUFF WILL MOVE THE NEEDLE ON WHY YOU WANT IT REGULATED BECAUSE WHEN YOU IGNORE IT DO YOU KNOW WHAT REALLY LIKES THAT? CRIMINALS. THAT IS THE BEST PRACTICE. STUART: I JUST WANT TO PUT THIS UP ON THE SCREEN. WE’VE GOT A MAP. 34 STATES HAVE POT AVAILABLE FOR SALE IN ONE FORM OR ANOTHER. TEN OF THOSE STATES I THINK THAT’S PLUS D.C., FULLY LEGAL, RECREATIONALLY. YOU THINK THE TIDE IS TURNING SHARPLY TOWARDS MASS LEGALIZATION IN AMERICA?>> WELL, YES TO AN EXTENT. SO WE DID A DEAL WITH A COMPANY CALLED ACREAGE WHICH OPERATES IN 20 STATES AND THE DEAL WE DID IS WHEN IT BECOMES FEDERALLY PERMISSIBLE BECAUSE I’M NOT SURE THAT THE FEDERAL GOVERNMENT IS GOING TO SAY IT IS A RECREATIONAL PLATFORM. I CAN SEE THEM SAYING ON A MEDICAL BASIS WE’RE GOING TO REGULATE IT AND PUT IT THROUGH THE FDA TRIALS AND THAT MAY BE LESS UNAPPEALING TO PEOPLE BUT IF YOU’RE A FEDERAL POLITICIAN YOUR GOAL IS TO REMAIN A FEDERAL POLITICIAN SO IF YOU SAY TO EVERYBODY IT’S A PARTY THAT WON’T GO AS WELL AS SAYING STATES RIGHTS LET EACH STATE GOVERN IT SO THAT IS VERY SOON. STUART: IS THE THC CONTENT OF THE MARIJUANA THAT YOU’RE GROWING TODAY MUCH MUCH HIGHER THAN THE THC CONTENT OF MARIJUANA IN THE 70S?>> SO WE GROW A WHOLE VARIETY. STUART: YOU KNOW WHAT I’M GETTING AT. CRITICS SAY IT’S MUCH MUCH STRONGER TODAY.>> WELL WE EVEN GO SO FAR TO SAY GUYS WHY IS ANYBODY SMOKING IT? IT’S NOT A GREAT IDEA AND WHAT THEY DO WHEN THEY SMOKE IT IS JUST ACTIVATING IT. THERE’S SO MANY BETTER WAYS IN WHICH YOU CAN ACTIVATE IT AND REGULATE IT DOWN BUT WE DO HAVE SOME WHICH IS EXTREMELY STRONG COMPARED TO THAT TIME AND THEN IT GOES STEPPING ALL THE WAY DOWN AND SO WHAT HAPPENS IS IF YOU BUY IT IN THE ILLICIT MARKETS SOME TYPES IT’S EXTREME LY STRONG AND SOMETIMES THE SUPPLY CHAIN CAUSES IT TO BE ADULT RATED WITH OTHER ACTIVATIONS, COULD BE FENTANYL AND SO THESE SORTS OF THINGS, IF YOU DON’T REGULATE IT HOW STRONG IT IS A BIG QUESTION. STUART: YOU’RE GOING MAINSTREAM AREN’T YOU DOING A KEYNOTE WITH MARTHA STUART?>> YEAH THERE’S A BIG CONGRESS ON THE EAST COAST OF CANADA IN A COUPLE OF WEEKS, AND WHAT’S HAPPENING IS PEOPLE WANT TO UNDERSTAND WHO CAN THEY TRUST, WHAT BRANDS ARE COMING THROUGH AND WHAT’S IT GOING TO DO FOR THEM AND SO MARTHA’S QUITE INTERESTED IN HOW CAN WE HELP ANIMALS AND HOW CAN WE USE CBD TO HELP ANIMALS? STUART: JUST A FEW SHORT YEARS AGO –>> YOU WOULDN’T HAVE ME ON YOUR SHOW I’M SURE. IT’S A BIG CHANGE. STUART: HOW MANY TONS A YEAR?>> WELL IF YOU THINK ABOUT THAT IT’S A LITTLE MORE THAN 500,000 KILOGRAMS. SO THAT’S KIND OF THE POTENTIAL OF OUR PLATFORM. STUART: HOW MANY TONS IS THAT?>> WELL SO THAT’S JUST DROP A ZERO. YOU GET TO 50,000 TONS. STUART: 50,000 TONS?>> YEAH. STUART: ALL YOURS?>> WELL THAT’S OUR POTENTIAL YEAH.