Transcripts For CNBC Squawk Box 20240713

Keeping an eye on the treasury market, the 10year right about 0. 638 for that yield. Right now time for the squawk planner. The American Economy has lost about 8. 8 million jobs in the last three weeks economists are expecting the loss of an additional 5 million. Well get Housing Starts data with a decline of 15 for the month of march we have a big lineup of guests starting at 6 30 eastern with black rocks larry fink. We also have ken fine berg, dr. Emanuel, barry diller and House Majority leader mccarthy coming up and cases to top 2 million u. S. Cases top 640,000 new york cases over 21,000 new york governor now squarequi people to wear a Face Covering when out in public that takes Effect Tomorrow becky. Joe, everybody in engel wood cliffs right now is wearing a mask everyone who is not on air it is something they are take very, very seriously too im thinking about exactly what it means when we are all trying to get back and when we are in the nasdaq. I think in the entire place, it is just mac. So thats not a public setting if im sitting there just on camera, thats not a public setting. Not if you are by yourself, right . Well mac is walking around. Basically im by myself. We are on the first floor, just surrounded by new yorks finest. Im thinking im okay. I have a good n95 mask i value this mask a lot. You know you need to sterlize it i put it in the oven every day at 180 degrees for a half hour really . I read you can do that. It doesnt cook it at 180 no, no. Thats what a shauna is, so hopefully not. Right right. I go in there 180 that seems hot on your lungs President Trump said hell release a new set of guidelines today for reopening the country. Eam eamon javers joins us with more on that front. Good morning, the president has been going back and forth about how this is actual will i going to go. Early in the week, he suggested he had total authority to reopen the country. He rolled back and said it will be up to the governors yesterday, hes going to make an announcement today about how all of this is going to happen we do expect the governors will get some heads up first. Here is what he said yesterday in the rose garden well be opening up states. Some sooner than others. We think some of the states can actually open before the deadline of may 1. I think that will be a very exciting time, indeed. Governors are looking forward. Chomping at the bit to get going. We dont have a lot of indication about what the white house plan is at this point. We do know the press has a Conference Call scheduled in the 3 00 p. M. Hour and then a 5 00 p. M. Press meeting it seems like hell meet with the governors at 3 00 and then with the public at 5 00. They did talk to quite a few of ceos and Business Leaders in Conference Calls to get an idea of what to do here so they are taking input from a lot of different sources and well see what they unveil im glad they are talking to a lot of different sources and people with opinions on these things a lot of what happened from the Business Leaders is they are saying theyd like to see more effective testing so they can tell their people to come back with confidence. You hear about the number of false positives and false negatives and it raises questions about how effective that testing will be eamon, there were marches on lansing, michigan where there are three counties in michigan with a High Percentage of cases. The other parts of the states dont want to be opened up again. They want to be held back. Youll see more of this push and pull as states and counties that have been hit more hard by this coronavirus come up against those areas that havent seen as much of an impact. Yes look, weve seen this wide disparity. A lot of it has to do with density, use of public transportation, how early in the cycle they were able to get the lockdown in place. You wonder what happens if you lift this and you have people traveling from the higher infected counties to the lower infected counties, you could see that spread again. I was talking to a leader with an idea of how to get your office space secure. One idea is to simply test everybody every time they go into the office and creating a secure space in which everything has been disinfected and everything is secure and the test is like the new metal detector they said we need massive increase of testing and speed of testing. Then you could have the situation where you have secure offices and getting people back to work again. It seems like we are a long way of any ig like that. Just talking about when it happens when it is done on a county by county basis probably one picture of it was in florida when some beaches closed and others didnt. You saw a picture of one empty beach butted up against an overcrowded beach. It seems like it will be more and more of a push and unfortunately, it falls down red and blue lines a lot of the blue areas are the most tightly congests where we have subways and People Living on top of each other and that is where the spread is more rapid you talk about the red blue divide and the state divide like in florida or some swing states. If there is a big outbreak in florida and the president is seen as doing badly there, that could badly affect his chances if they are able to mitigate this and the president is seen as successfully handled this, that will make a huge difference in the election as well so much of our economy depends on this our politics are impacted. This is the driving force in our lives in every sphere. It is stunning something we didnt even contemplate and is driving about every facet of American Life thank you it is good to see you. Thank you, becky. We should tell you earnings just out from blackrock with a profit of 6. 60 versus 6. 36 expected the street was looking for 3. 58 milli 3. 58 million and the number came in better than that well talk about what else larry fink is seeing well talk to him coming up a little later this hour joe . Okay, well talk markets with investor kathy wood shes good some interest comments shes bullish overall. Mod rati mod rating the gains the day before that was pretty solid. Kind of churning around. Volatility less than anticipated. Take a look at the new apple iphone se unveiled yesterday it looks like a phone, basically. The latest entrylevel phone well be right back. Shouldnt you pay less when you use less data . Now you can. Because Xfinity Mobile gives you more flexible data. You can choose to share data between lines, mix with unlimited, or switch it up at any time. All on the most reliable wireless network. Which means you can save money without compromising on coverage. Get more flexible data, the most reliable network, and more savings. Plus, get 200 off when you buy an eligible phone. Thats simple, easy, awesome. Go to xfinitymobile. Com today. Announcer todays big number, 67. 46 thats how much wti crude has tumbled so for in 2020 on pace for its worst year ever. Commodities fell to the worst year ever since 2002 welcome back u. S. Equity futures this morning have responded to some of the clues we are getting not just from the United States but around the world in terms of reopening economies but the triple digit gains now up somewhere between 50 and 100, weve been bouncing off both of those levels germany perhaps getting set to reopen talk about what to do here with President Trump and who hes talking to and trying to figure out how to move forward in terms of reopening, restarting the economy. This great economy we have i sound like him, dont i . It is such a tricky question. Ive tried to put myself in a lot of different peoples shoes. It is one thing to be here in the epicenter and feel how scarey it feels. You try to feel how it feels in different parts of the country it is a big country and people have different opinions. I want to hear from the scientists and the Business Leaders too. A lot of them had issues too concerns if they bring their employees back too early, people get sick, what that means for a second shutdown and if theyd be held liable for people getting sick so many concerns and perspectives it will take time to play this out. I keep hearing two things the liability issue. With a huge question whether it is shared by the company or the real estate owner, the landlord if theyll do temperature checks if you have shared elevators in a shared building, who is responsible. In a world where so much of us are knowledge workers, there is a question of how many people need to come back. The other part of the business, restaurants in the retail world, the idea of coming back is up in the air. The flip side is the demand. Is there going to be demand . Thats right. Where will the demand be . Because we have such a service economy. Weve swung so far from manufacturing to service, the demand picture will be the biggest. Every time you hear about shutdowns for airlines, it is the demand picture you hear about Stores Closing and a lot of time it is the demand you have to wait and see how things shake out thats the crazy question. You heard from David Solomon goldman sachs. Hes looking at the recession going the rest of the year you want to talk to more and more of those people well get a chance to talk to larry fink shortly too joe . It is your tease, isnt it, beck where are we going it is i thought you had something to say. An update on the race to find a vaccine for covid19 take a look at shares of bed bath and beyond. March sales fell 31 april sales down 42 percent e from a year ago. Announced the sale of the one kings lane decor unit. This morning up. 60 cents. As we head to the break, lets look at some of the images from the impact of coronavirus across america. Ever since weve gone mobile on the now platform, somethings gotten into the office. I hear you. Feels like theres no barriers between departments now. Do you think everyone appreciates it . I do. Huh. Forgot my glasses. Serivcenow. The smarter way to workflow. Welcome back time for the executive edge. We are focusing this morning on a race to find a vaccine to the coronavirus. Eunice yoon is with us joining us from a lab in china that got thegreen light to start Clinical Trials. Eunice, i have missed you. Good to see you. Good to see you, my friend. Nasdaq listed sinovac has already started injecting volunteers chinese businessman is at the forefront of the fight of the pandemic his Company Sinovac got approval from china to start Clinical Trials on the vaccine. A vaccine shouldnt be for a certain country or area, it should be for the globe. His company is using an older method but what he considers safer. It uses a virus killed by chemicals. Using this lab and will test again before going into trials 100 volunteers are being recruited for the first phase and doses of various sizes are being prepared prepping the safety for testing in june and then testing in china or overseas. Thats faster than normal he says the Chinese Government has made testing a priority theyve allocated land for production the company said instead of the usual six months, it took them one move to get approval for human Clinical Trials. The government here is allocating a lot more money for this effort. The company has received tens of millions of dollars for this company alone and that the government is matching the investment dollar for dollar eunice, im trying to figure out what life is likethere in beijing. Im looking at the traffic behind you definitely more than we used to see. What is it compared to what normal life would be it is Getting Better incrementally. With err seei we are seeing at more people at the shops a lot more people venturing out. The government has put in stringent measures we still have to go through temperature checks and making sure we are always using Hand Sanitizer at different places. There are more health codes and ways in which our privacy is bei being impinged on. For me to get into a restaurant, you have to scan a bar code. It is not really normal. But we are trying to get back a to business here what does the bar code tell the restaurant that youve passed a health check or something is. Yes there are two different bar codes. With unis one is to check for health and the other to prove where youve gone in my case, it shows ive been in beijing the past 14 days. You give access to the mobil phone company to though sshow tn fact have been in beijing. It is one measure that helps everyone around me but it is also kind of scarey because you give up your privacy and information about yourself interesting you all went into it first we are watching you to see signs of how we come out of it too too. Great to see you, eunice yoon. Still ahead, a huge lineup this morning starting right after this quick break, blackrocks larry fink will join us and then iap expedia chairman will be with us. A look at yeerystdas winners and losers as homes become schools at t has created a 10 Million Dollar fund to support Distance Learning tools, curriculum and resources to help educators and families keep school in session does anybody know what this book is . Hi class. Good morning. Good morning. Because the key to keeping kids learning, is keeping kids connected. Good morning welcome back to squawk box here on cnbc take a look at u. S. Equity futures at this hour about three hours before the market would open up the dow would open up by 125, s p up about 20 and nasdaq about 96 points higher lets also show you crude at the moment wti crude buy a barrel for 20. 25 becky, over to you andrew, thank you blackrock just out with its earnings beating on top and bottom lines for the quarter joining us now is blackrock Ceo Larry Fink good to have you here. You beat expectations by a long shot 6. 60 versus 6. 36 the street was expecting. An increase in higher base fees and growth in Technology Services revenue too i think what surprised me the most is that you saw 35 billion in quarterly net in flows for the markets. Tell us what you are seeing. First of all, welcome it is nice to talk to you from home this is my first time to talk to you from home. It is a little different for me. Let me start off and say, becky, that it has been hard for everybody. Blackrocks 16,000 employees really brought everything together if i were to reflect on the quarter and in flows and outflows, a few of our major components really performed really well. There had been so much talk over the years about etfs on the show when im there, im always asked about etfs and do they represent risk. Let me say first and foremost, the etf markets perform incredibly well, even in the most stressful weeks those looking for liquidity and looking to move beta performers up or down, they were able to do that all of the fixed etfs performed quite well there was never a period of time where the imbalance between the underlying assets and etfs were really really askewed whether to sell them to reduce or buy them to get expose your that is first. Two, in our quarter, the allotted revenues were up 34 from a year ago. Most importantly, we have 250 clients including all of blackrock. The aladin system worked fantastic. We did not design it to have 90 of employees remote. I probably received more compliments about the aladin system you are right, the whole firm came together with 35 billion worth of inflow. Operating income was up 3 our margins didnt really move all that much. Up 20 basis points i want to use a bench mark of february 21st to give you an idea of what we saw. We saw cumulatively from the beginning of the year to february 21, we had about 82 billion of longterm inflows we had outflows in cash. From february 21 to the end of the quarter, we actually had 1 100 billion of outflows, mostly in index product where people are going in and out buying exposures. We were beginning one of the best times in our history and ended up where we were so we saw big outflows in the index products huge inflows in cash in quarter year, we are seeing bigger inflows we had active equity inflows of a quarter billion. What this shows me, the area we emphasizes i shares, we had 7 billion of inflows between i shares, between aladin platform that was up, the components worked. Then one of the biggest reasons why it worked, we have spoken to over 50,000 of our clients since the pandemic really become a top priority between myself and a few other executives, weve had over 100 different Virtual Meetings with other ceos, cios and governmental officials the presence of blackrock worldwide has given us an opportunity to work with our clients. This quarter, working with clients meant helping them reduce exposure. Overall, we are winning more share of mind with our clients based on the number of clients and number of government leaders and others in this whole thing, would you say weve seen the worst of it or is there more bad news to come im not a scientist so it is hard for me to answer that question if the disease curve in the developed world continues to decline, at the same time we see the curve of governmental support for monetary and fiscal policy worldwide increases, we could have seen the bottom on the other hand, i think what the market is still under appreciating, it has been mostly the developed world that has experienced the virus. As we start entering summer time, the Southern Hemisphere is beginning to have their winter are we going to start to see the growth of the disease around other parts of the world does that mean we close the borders . I dont believe we have any real information about how the disease, how covid19 is going to spread in the world we have learned like in indonesia, burials are up 40 percent from a year ago. No one talks about it. There is no testing or platform to monitor that. Thats one of the big issues we are going to have. The imf and world bank are talking about this right now where we are seeing mostly a supply of masks and gloves are being held in the developed world that does not have the ability to secure the mask and does not have the Necessary Health care systems and crowding in larger cities we are still going to see elements of the disease increasing in other parts of the world. Until we have adequate testing, it is hard for me to see how we are going to reboot in the next 30 days. Every business will be cautious and protective of their employees. They want employees to feel good about coming back to the office. Lets be clear, anxiety is still very high. We hope we have the ability to reboot i know many leaders told the president yesterday, we need to have adequate testing to make sure we have a secure environment. Whats im sorry go ahead, becky. Whats adequate testing, larry . How do you measure that . I think it is different for different organizations and situations in a factory where everybody is coming to work in a defined location, that is a closed environment. In a closed environment, you are going to have the ability to do either weekly testing and to that process, you could probably reboot in the service side of the world like restaurants, airplanes that represents a different issue where you have an open system. The question is how do you reboot that . To me, it is all about testing and making sure that we could assure safety, we could assure that people could eat at a restaurant, fly on an airplane with security that every other person in the restaurant or flying on the plane is disease free until we have that testing you just spoke we just spoke with eunice yoon in beijing. She told us about the testing there. She has to have a card with a bar code on it that checks her to get into her paymeapartment restaurants. Part of what they can see is her Health Status and where she has been in the last 14 days she said, you give up privacy but you are more secure when you are out to know in a restaurant, everybody has passed that same check to get in. I dont know if that would fly in a Democratic State like the u. S. This is why china has been able to reboot faster. In china, they are still very worried about service end. Restaurants are not even close to 30 full even with that testing. In china, you are seeing the manufacturing side rebooting but the service side is not rebooting as fast. You are right, our democracy is a Strong Foundation of who we are. If people agree to that, thats a whole different story. That is hard for me to see people giving up those rights. Then you carry out the idea that we are such a servicebased economy, it makes you wonder what happens from here if there is no demand. If they dont want to go back to restaurants, spas or gyms, what happens . Our economy i dont believe well have a vshaped economy i believe well have something closer to a j that turns into a u. If we have adequate testing. If the testing that abbott labs has been testing works we can have in airports prior to going to a terminal, you are tested if it requires getting to the airport an hour, hour and a half early, before you go through the airport itself, you are tested and determined you are disease free and then everybody in the terminal on airplanes can feel secure so it is about testing it is about knowledge. At the same time, it is about creating antiviral cocktails that reduce the severity of the disease. If everybody felt much more comfortable that, okay, i could get covid19 and i had a very modest risk of being placed into an icu, more like a influenza, maybe we could get on to our life originally when people were talking covid19, early months, they were talking about, well, look at the influenza, we have around 20,000 americans dying every year many people get it every year. We live our life with that disease. We need to get to that point where we are going to live our life with covid19 too whether through a vaccination or through therapies and a cocktail of different drugs to reduce the severity i feel confident over the next months well determine different protocols to minimize the severity through that process, i do believe well be able to reboot. I believe well be able to have a better, more normalized environment but it may not be in june or july it may be in august. And so the economy will be slow to really reboot as you said, we are such a heavy service economy. We need to have all americans feeling comfortable, feeling safe at this time, i dont believe that many people feel secure and safe that gives us a lot to think about. Larry, will you bare wiear withs we take a quick break. Looking at shares of twitter, that stockdo downgraded to neutral. The decline because of heavy dependence on product launches or sports. You can watch us any time live or on the cnbc app well be right back. Heres the thing about managing multiple clouds for your business. When youve got public clouds, and private clouds, and hybrid clouds things can get a bit cloudy for you. But now, theres the Dell Technologies cloud, powered by vmware. A single hub for a consistent operating experience across all your clouds. That should clear things up. Welcome back to squawk box this morning we are in the green right now. Dow looks like it would open up about 100 points higher. We want to get back to our special guest, ceo of Blackrock Larry fink i want to go rapid fire with you. I want to pick up on one thing you said to becky. The idea that you dont expect a vshaped recovery. You talked about it being like a u or even a j. Give me your 30second thought there given the risk on the market today hi, andrew. The risk on the market for today is that the disease will take longer the risk for today is that we dont have americans and europeans feeling very comfortable with their environment. So that will be taking time. What im saying, i just dont see a rapid rebound. I see a rebound that will take time as we develop testing and as we develop the antivirals before we develop before we dev vaccination. But you also suggested we might be at you also suggested we might have hit a bottom and so i think what were all trying to figure out is is the market fairly priced well, there are two curves. Theres the curve of the disease and the curve of government response weve seen weve seen historic governmental response the Federal Reserve has said they you know, they could purchase a couple trillion dollars of assets in addition to monetary stimulus, like the dramatic fiscal response by the American Government and other governments. Were doing quite a bit to stabilize the economy, stabilize markets to allow corporations to Access Capital and so these are two different curves and right now the response by governments is quite large and i do believe whats the longterm impact of all of the response by the government talk about the longterm impact because if were printing money, if every government is printing money, is it going to effectively nullify everybody . Are dollars going to become so less valuable and therefore assets are more valuable maybe we do have inflation we are triaging a sick economy. In doing so we are accumulating large amounts of debt. Its like being in an operating room, you are doing everything you can to keep the patient strong i think thats what our government is doing and i applaud the government for all of the actions its doing. I would hope europe, specifically germany, does more. I think europe needs to do more. I am very worried about the actions of europe because theyre not as significant as they should be and so were going to have to see how this plays out with the length of time people are connected to their lives and their safety and the other curve of governmental support. Fiscal stimulus, helping the independent contractors. How big if it adds up another trillion dollars . Does it add up another trillion dollars . Youre looking at more inflation. We are going to look at more debasing or devaluation of the american dollar. Its almost at a record high right now. So a little devaluation of the dollar would really improve our competitiveness worldwide. So i dont look at that as a bad thi thing. I believe some inflation would be good. Let me flip things around youve been one of the biggest advocates for esg. The idea of it being such an important thing for companies to be focused on. Its socializing and privatizing gains and the government is effectively having a push on every company in america arguing the very idea of free mark market, where does it land in that it has much more importance. First of all, in the First Quarter we had 10 billion of esg etf so we saw from clients more than ever demand for products that are that have an esg focus and for the fifth quarter in a row those products outperformed regular indexes i actually believe when you focus on safety and peoples fear of the pandemic, it also enlarges peoples feelings about our environment. And so in my conversation, even with the pandemic, even the closing of all of these small and medium businesses, even with all of the stress im still having a remarkable amount of conversations about how should esg play in a portfolio. I think the conclusion will be when were over the worst part of the virus and we have this up swing in the economy, i truly believe more and more people are going to say, im still worried about our world beyond just a Health Crisis but also an varnmental crisis. Theres no question today in our economy the disease curves arent more prominent, but the discussion of esg is more prominent, maybe secondary to the others what do you think about the government effectively privatizing or, rather, socializing the corporate losses that are taking place and privatizing the gains . Thats whats happened here. Weve now done it twice effectively in the last 12 years. And i do believe its going to lead to questions of the role of stock prepurchases we may see rising corporate taxes to pay for these deficits. Were going to have to when were over youre asking questions that are not in my mind as important as the moment but will be very important once we believe the disease curve is behind us and we have more safety and soundness your questions are legitimately important but i dont believe theyre primary at this moment we all have to be worried about how we are triaging and if i can fixing the health of the global economy. We are arguing what you just said were not weeding out the under performers like we should be the cleaning out of companies is a natural process so youre absolutely right on this, and i but i dont know how today, especially with such governmental support, how do you is this time, andrew, to pick win noers and loners and l . I have a hard time making that judgment call now. If youre picking a loser, are you willing to say that 120,000 employees are going to lose their job . Larry, its a longer conversation i absolutely agree with you. Today is not the time to legislate that but it is a conversation that is going to have a huge impact on our country and i imagine on the markets in the future and i hope we can continue that conversation stay healthy and safe. We appreciate it this morning. Thanks. All right. Coming up, were going to get you ready for today. Big jobless claim number congress expecting 5 Million People filing for jobless benefits squawk box will be right back. Life isnt a straight line. And sometimes, you can find yourself heading in a new direction. But when youre with fidelity, a partner who makes sure every step is clear, theres nothing to stop you from moving forward. Athat liberty mutualsure customizes your insurance, i just love hitting the open road and telling people so you only pay for what you need [squawks] only pay for what you need. Liberty. Liberty. Liberty. Liberty. When yowhat do you see . Itical issues facing our world, we see breakthrough medicines getting to patients in record time. We see harnessing natural gas unleashing the promise of clean energy. We see engineers simulating the future to improve today. At emerson, when issues become inspiration, focusing core strengths to create a better world isnt just a result, its a responsibility. Emerson. Consider it solved. Breaking Economic News americans filing for unemployment claims. Expected to top 5 million for the Third Straight week. Plus, which industries and people deserve to be saved by the taxpayer going to be discussing that. As Antibody Tests ramp up, the number of coronavirus cases appear to be growing in the u. S. Dr. Zeke emmanuel. The second hour of squawk box begins right now good morning, welcome back to squawk box on cnbc. Im joe kernen along with becky quick and Andrew Ross Sorkin u. S. Equity futures have been getting back a little of yesterdays big loss although that came after a big gain the day before u. S. Equity futures at this hour up 190, just under that big lineup of guests this morning. Well be speaking with ken fineberg, zeke ee manu wal emmanuel we have a big jobs number. Its the most important number that we watch every week nobody watches it as much as Steve Liesman. He joins us with a preview of what to expect steve . Reporter good morning, becky. I have some exclusive data that weve calculated at cnbc that normally im excited to bring you exclusive data this data is a sign of the payments out there in the economy. Not quite as exciting. Looking for another total of 5 million to be added to the jobs number that would bring the total up to 22 million since the 14th of march over those weeks since we began shutting down the economy. Wall street wondering, is it complicated . Depends how much longer this goes to see whether or not theres additional deterioration in the economy how much the disease spreads in each of the states and the extent of the shutdown theres another factor here. Processing the flow of claims. What weve done here is weve added up the claims by state over the last four weeks and what you find is that california leads the pack here with 2. 2 million claims this is the data reported as of last week. We dont have this week yet. A million in pennsylvania. 820,000 in michigan. 800,000 in new york. 760,000 in texas you can look at this and you can say, you know what, new york should not be less than half or even 1 3 of california so theres probably more to come from new york. So we did it another way another way to look at it is claims as a percent of the work force. When you look at this you see astonishing pennsylvania 16 of the work force has filed for jobless claims there going down the list. 12 and going down the states. We can imagine, for example, more claims to come from florida. More claims to come from new york so we might be past the peak in the total, but theres quite a bit of tests you have to do. We look at has the market processed or heard the worst news maybe on a total basis but theres some catchup to go that catchup could be just a result of states needing to process claims some of them, new york as my colleague rahel has reported, updating their Technology System right now. The question is, is this the peak well be watching the numbers and looking at them on an individual state basis to know are we at the peak becky . Steve, thank you very much. Stay with us we spoke to larry fink of blackrock a short while ago and heres his take on what needs to be done to get america back to work every business is going to be very cautious. They want to be protective of their employees. They want to make sure their employees feel good about coming back to the office lets be clear, anxiety is still very high. And we hope we have the ability to reboot. But in doing so, i know many leaders told the president yesterday we need to have adequate testing to make sure we have a secured environment. Lets bring in larry c kanto. Im afraid theres no letter that captures this the left side is a v, sharper, and the right side more like a u. I think when we get recovery, i dont think it will take that long, but its going to be in fits and starts. Vary a lot among regions, among industries larry, one of the things he talked about was just this idea that you could probably get manufacturing and other closed environments back to work more quickly than some of the Service Sectors because in the service sector, whether it be a restaurant, whether that be a movie theater, whether that be an airplane, whether it be a hair salon, people are going to be a little more reluctant to go back to places because theyre going to be scared thats why he said testing needs to be so aggressive. Obviously its going to take a while, but i also think that in different areas of the country there may be different fear factors based on what youve lived through and how many cases are in your town and your county no question i mean, you know, travel is going to take a long time. Were not there yet in terms of testing. Im not a Health Expert but its pretty clear were not ready yet. You see in parts of asia that have success that they are restarting the economy they can figure out whos got it even if they dont have any symptoms the markets are behaving so much better than the economy. Weve never seen an economy drop like a rock like this with the bottom falling out the markets, if id of told you a few months ago were going to see over 20 Million People file jobless claims in a month, bottom of the economy was going to fall out and ask you what the markets are going to do, i doubt youd say that year to date theyre down like 14 . Right and i think its the fed. Weve never seen a response like this, becky. It reminds me a little bit of what mario draghi said during the european debt crisis, well do whatever it takes we have unlimited qe the fed has expanded its Balance Sheet 2 trillion. They did 3. 5 over six years with the financial crisis weve never seen anything like this its almost like theres a put out there. So i think the fed congress is making sure that companies have enough access to credit this relates to the Recovery Company bankruptcy so we can get the economy going again a little faster and thats encouraging. Steve liesman reporter becky, i think theres a series of races going on here. Economists, as larry said, have no idea what the right things to do are to bring the economy back i think whats interesting here, weve had several fed officials talk about the need to talk about National Testing to bring it back. Thats something separate. Whats going on here is a race that the economy shouldnt be shut down so long as to turn what raphael boss stick frtic fa said, turn a liquidity problem into a solvency problem. If it stays longer, you might have a resurgence of that. People who kept their jobs might turn there is a race with peoples patien patience we havent talked about that youve seen a turn in the polling and survey data towards approval of the shutdowns, but youve also seen very small numbers of protests around for people who arent really involved, havent seen the infection rates that we see here in the new york area, some of the metropolitan areas over time you can lose the publics patience and cooperation and support for the shutdown so theres a race here to get these things in place, becky, in order to bring the economy back before you lose public support understood. Larry, thank you very much for joining us steve, well see you in a little bit. The jobless numbers coming up. The jobless claims at 8 30 a. M. Eastern time joe . Thanks, becky. Coming up, the relationship between big business and Small Business during the pandemic well speak with a company that has ties with nike and others after the break. Theyre still operating. They havent been closed down in oregon, but its tough sledding. Well talk to the ceo. Watch the shares of United Airlines they cut the flight schedule for may by 90 demand now is essentially at zero were warning of likely job cuts squawk box coming right back veterans, in times of crisis, youve served our country. If youre a vet and youre experiencing any symptoms of the coronavirus, please contact your local va hospital. Protecting your health is our greatest duty. Like rock, reggaeton, unite and techno. Lls. Get ready for the drop wait for it wait for it come on man hit me wait for it just do it already one more time yeah. The World Premiere is now in your home. Were back this morning talking to Small Businesses around the country fighting for survival bob grover joins us live from just outside of oregon president of pacific Landscape Management the Company Generated 26 million in revenue managing almost 1,000 clients including nike and columbia sports wear youre still fully operational in terms of your employees i dont even know if you laid anyone off at this point, bob, but you have had to institute a lot of things, social distancing and changing the way you do business can you go into that please . Yeah, absolutely. Were a somewhat seasonal business 20 of our work force is seasonal we were in a gear up mode as this started i will say, we havent laid anybody off but we havent clearly staffed up to where we might otherwise. Business has slowed a little bit. We are able to operate we are deemed an essential services we are maintaining a living environment. As long as we maintain social distancing thats been an easy and difficult challenge. We work outside. We have to get to the job sites together as were working and loading things into the back of the truck, just people that are like and Work Together, staying six feet apart has been a challenge to create an environment where you remember to do that every second of every day. Been very challenging but were working hard to keep our people safe bob, stay with us we have news from wilfred frost. We want to get to him quickly and come back to you. Reporter joe, looking through those numbers from Morgan Stanley, revenue looks like 9. 4 billion a bit behind 9. 7. Eps 1. 01 per share versus 1. 14 which is the estimate. They were behind on both of the lines. The all important provisions for credit losses. They break them out in noncompensation which has rizzs enfrom 1. 7 billion to 2. 1 billion. On the surface that doesnt look like a massive increase. Estimates are 2. 8. That could be a bit more do more digging on that number trading is pretty strong 4. 9 versus 3. 8 billion expectation. That did like the others for mainly the fixed income area as opposed to equities area Wealth Management revenues has been key 4 billion. The forecast is 4. 3 billion. Thats a little behind we have to dive into this a little bit more. At the moment, trading down a little bit 2 or so worth noting Morgan Stanley was the best performer coming into earnings this weekend. Thanks. Lets get back to bob grover who is in portland, oregon president of pacific Landscape Management are you planning to get the ppp money . Will your employees still be working . Is there enough work if you do secure the funding well, thats an interesting question we have maintenance contracts so about half of our revenue is on contract few people have canceled maintenance contracts. A good portion of the work is ongoing but we do have a tremendous amount of projectrelated work weve applied for the ppp. I have not heard back from our bank that we have got an accepted application i heard they thought they were going to run out of money as of last night were not sure if we made the cut. Hoping if we didnt make the cut, that they do expand the program for us i dont know we are excited about an opportunity like that to keep our people working because we take care of plants but first and foremost we want to take care of our people there are so many people out of work im hoping we can keep our people working hoping our customers need us and the services were providing and the projects were doing can keep us going through the next few months as we get through the crisis. You have 300 employees and 120 trucks how many guys on each truck . How does that work some people wearing masks, riding in the back of the truck . Whats happening no. We have a one person per truck policy we have some fourdoor trucks. One of our teams said how about if we tarp off and create a physical vapor barrier between the front and the back we have a lot of employees driving their own vehiclesto the site were figuring it out. Thats been an interesting challenge, too. None of your big clients at this point, has anyone canceled. They need Landscape Management you could delay it or not get it quite as frequently if no ones actually there. Yeah. We take care of a few hotels and a few restaurants and some Retail Centers weve had a few of the hotels cancel us because theyre closed most people understand they have to keep it going most of our folks are keeping us going on that. People are saying, lets hold off on the projects until the crisis is over good luck you could be running a restaurant chain or something. It seems like the bright side is youre still working and you have all of your people still on the payroll. God speed and good luck, bob thanks for joining us this morning to talk about it. When we come back, dr. Zeke emanuel about the coronavirus testing and the next steps to beat the pandemic. The futures, the dow likes it would open by 86 points. We have the jobless claims numbers to get through at 8 30 expectations are pretty bad. Hard to say how the market will react. It will be hard to find a number worse than the 5 millionlrdy aea expected squawk box will be right back. Heres the thing about managing multiple clouds for your business. When youve got public clouds, and private clouds, and hybrid clouds things can get a bit cloudy for you. But now, theres the Dell Technologies cloud, powered by vmware. A single hub for a consistent operating experience across all your clouds. That should clear things up. Working day in, day out. E. At t is here. Providing support with advanced services for first responders. And connected temporary hospitals, mobile testing sites and Emergency Management centers. Because until their job is done, it is essential that we all have their backs. Its what weve always done. Its what well always do. Looking at an empty shot of times square there still to come on squawk box. Airlines, Small Businesses, health care workers, who deserves a government bailout . Who doesnt . The t. A. R. P. Czar, ken feinberg will be our special guest to discuss it then at the top of the hour, barry diller is our guest. Talk about all things about this pandemic including travel and what it means to his company expedia. First, as we head to a break, check out this mornings biggest dow winners and losers squawk returns after this. Save hundreds on your wireless bill without even leaving your house. Just keep your phone and switch to Xfinity Mobile. You can get it by ordering a free sim card online. Once you activate, youll only have to pay for the data you need starting at just 12 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. Its the most reliable wireless network. And it could save you hundreds. Xfinity mobile. The dow is indicated up by almost 100 points. Youre watching this as we get closer to 8 30 also, new details are emerging today about the coronavirus bailout. Phil lebeau is here and he has more on that front phil, good morning becky, weve already seen the 25 billion in payroll grants theyve decided on that. Still finalizing details disbursement of money to come. The airlines had a bit of a move higher yesterday keep in mind, the bailout moves, no stock buy backs stock washrrants to the bailout it amounts to 3 awarded to each person yesterday in an exclusive interview with American Airlines ceo doug parker, we talked to him before they said they received or planned to receive 5. 8 billion about the restrictions locked in place heres what he had to say. Theyre conditions were happy to accept. If you find yourself in need of government assistance, its fair to say until you have paid off the loans, for example, if you choose to take loans, that you dont have stock buy backs, we dont do dividends, that the money doesnt flow to your executives reporter those are a lot of the questions put into the airline bailout. Now the question comes for a company like boeing which has said to congress, look, we may need up to 60 billion not just for us but also for our suppliers and for the aviation industry, what will the final restrictions be there . Keep in mind, boeing has not committed to whether or not it will be seeking a particular amount from the Treasury Department they may still end up doing all of this in the private market, guys i think these are the questions that people are focused on as you take a look at what happens with boeing over the next week to two weeks as to how much theyll take from the federal government and what the conditions are attached to it. That was phil lebeau in chicago. Good to see you. Thank you. Well continue the conversations because as the bailout agreements have been finalized, theres conversations between which people and which industries deserve to be saved by the taxpayer. Joining us is ken feinberg of Kenneth Feinberg law office. Ken, its great to see you one of the Big Questions that this entire pandemic and the response has created is the idea that we have effectively socialized the losses and privatized the gains all over again. Everybody wants to get this economy moving as fast as humanly possible but there are going to be winners and losers picked along the way how should it be done . Thats democracy. You asked congress in consultation with the executive branch, they decide the prioriti priorities whats very important is there has to be bipartisanship if anybody feels that the program is polarizing, its shameful i think whats happened here is an attempt to come together, work out a common blueprint and implement that blueprint all the talk in the world about how great the government is in responding to this crisis, you dont get the money out, you dont get it out fast and people have to see the results. Thats the key let me ask you this jamal was on cnbc last week talking about this in the case of the airlines, the goal is to say airlines are critical to the u. S. Economy you want to keep the employees employed and on the payroll, but at the same time in the way these bailouts are structured, theyre also protecting the shareholders the question is, whats critical about airline shareholders to any other shareholder . Why should the shareholder of the airline, for example, be a beneficiary relative to somebody else i think the answer is fairly straightforward. Theres a prevailing view in washington that the airlines, unlike another company or another industry, it is the airlines that are a critical part of this i think whats happened is congress has concluded that it is vital to keep the Airline Industry at least solvent for the future of the country. I think people can take issue with that implicit in that, but at the end of the day elected officials are sitting down with the executive branch, airlines are not mom and pop. Thats what drove the 9 11 fund as Andrew Sorkin knows very well the 9 11 Victim Compensation fund was a result of the airlines recognizing they need help against potential lawsuits. Let me ask you this as a matter of Public Policy over the past decade, specifically over the past several years, corporations in america have lobbied very aggressively for lower taxes, to pay less in taxes. The wealthiest have lobbied very aggressively, successfully to have a lower tax rate. When all is said and done and who will ultimately be the beneficiary of the savings that are going to take place here, all of the companies that are going to take place here, are people who would be paying less than otherwise will that change the conversation well see in november of 2020, ill tell you that i dont think weve ever seen anything like this this is an asterisk like the 9 11 attacks were unique i think what were going through now is an aberration from the normal Public Policy discourse and i think you better be careful about drawing too many conclusions from an unprecedented historical situation but i think a simple question ken, let me ask you something. I apologize for the back and forth. Were on a delay here a little bit. You could look at all of the things that have happened over the past 30 or 40 years as aberrations, as idiosyncratic pieces but if you were trying to plan and have a budget for this country in terms of how much revenue you need, how much you need just lost you. We now have had 9 11, weve had 2008, weve had now 2020 in this pandemic. It seems that every ten years we have some type of disaster that requires some major infusion of capital from this country and we seem to be under prepared because even in the best of times we spend more than we even have well, i think that. You could make a very strong argument, as you have in your question, or statement that we are not well prepared. We dont anticipate tragedies like this. Im not sure you can anticipate a coronavirus tragedy like this. I do agree with the thrust of your question, that we ought to be better prepared for these global tragedies that impact every american citizen and every world citizen frankly. One of the other questions is what type of restrictions or terms should be on these bailouts, not just for the airlines but potentially across the country . One thing thats happening, we are putting a lot of money into the economy, i think is absolutely necessary i want be to be clear, its absolutely necessary to do these things now in the moment the question is you look at the airlines, for example, come september 30th if theres not demand for their services, theyre very much aloud to start to layoff employees and so the question is how much does that really buy you i think thats a very, very good question. Two answers to your question first, making sure that the legislation and the regulations that accompany these bailouts very specifically con strain the airlines or any other beneficiary so that the congress is getting what it intends in the way of protection for individual employees, et cetera. Secondly, ive learned from experience that you better have somebody whos administering these programs independent, very competent, a bipartisan credible individual where nobody will question any of the political motivations or the rationale behind these bailouts. Substance is one thing process, getting the money out fast in a way that everybody thinks is credible, apolitical is important. I was going to say go ahead. Thats why senator schumer for one, i know, was very concerned about making sure how the administration rolls out these programs in a competent apolitical way was a very important objective of his. Do you want the job to oversee this thing there are thousands of people that can do this job this is not Rocket Science youve got to just brace yourself, follow the statute, follow the regulations, do whats right and very, very important ive learned personally, very credible, you have to be apolitical. This is a Public Policy assignment that requires credibility, competence and a sense among the American People that its being administered in a very fair and equitable way. Ken feinberg, youre a national treasure. Thanks so much for joining us. Please stay safe and healthy appreciate your time byebye joe coming up, dr. Zeke emanuel on the covid check out the numbers. You can watch us live on the cnbc app were coming right back. Im 53. But in my mind im still 35. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex. Because im made to move. Good morning and welcome back, everybody. Google Parent Company alphabet plans to slow the pace of hiring for the rest of this year as it deals with the impact of the coronavirus. The company hired 20,000 new employees last year. Ceo telling staff the company will also reduce spending in some areas, like data centers. Lyft has launched a new on demand delivery service. The program also offers earnings opportunities for drivers as demand for regular raids has plunged. Lyft says drivers could be booked to deliver items for government agencies, nonprofits, businesses, Health Care Providers that service will initially be available in about a dozen u. S. Cities including atlanta, dallas, houston, San Francisco andrew. Combing up when we return, dr. Zeke emanuel on the importance of testing and getting government up and running again. At the top of the hour, media mogul barry diller joins us. Squawk returns in a moment lets take a look at the futures. Give you a look now somewhere between up and negative. Slowly losing some steam just turned negative we have some time. Well see what happens between now and the market open. Premarket has lost most of the upward momentum we had andrew okay. Meantime, abbott labs out with results beating estimates for the top and bottom lines we want to get to meg tirrell who joins us with the Important News meg. Reporter good morning, andrew yesterday abbott said it was launching an Antibody Test this is what people have been waiting for. This is a test to determine whether youve been infected in the past as opposed to the tests known as pcr that can detect current infection. Abbott is planning to supply 4 million Antibody Tests in the United States this month ramping up to supply 20 million per month by june. This is the third test for covid19 abbott has launched the others are the prc tests and the Laboratory Tests that we have heard are not being used enough and they are increasing in labor ra tore ris looking through abbotts results this morning, guys, the diagnostics unit seeing the lowest organic growth for the quarter. Theyre saying covid19 caused routine tests to decline whereas, analysts are expecting a boost from the three test offerings of covid19, the other tests are seeing major declines because people arent going to the doctor right now back over to you meg, let me ask you there have been some questions about how effective all of these tests are. A lot of false positives, a lot of false negatives what do you hear whats the real story . How good are they . Is there room for improvement . How soon can that happen reporter there are Major Concerns about the dependability of all of these tests particularly in the antibody space. The fda has tried to allow more tests to get to market by loosening regulations. Thats causing concerns about how rigorous the validation is for all of these tests and you hear the measures of sensitivity and specificity. You want them to be in the high 90 range to give you assurance that youre not getting false positives and false negatives. There is no doubt in looking at the Antibody Tests from over seas, they dont have the dependability that we want youre taking a test and youre telling somebody, you have a 50 50 chance this might be right, thats pretty scary that is something people will be looking at okay. Meg, thank you very much good to see you. For more right now on the front line against covid19. Dr. Emmanuel, its great to see you. Nice to be with you what do you think it looks like on may 1st. The indicator in the areas were going to open will drop to 20 million below population per day were not at that level in most parts of the country some areas are likely to be at that level talking about the testing. We really need to be doing millions of tests a day. Right now the cdc recommendations for doing tests are mainly focused on who to treat and who to tell they have covid19 if you want to open up the economy, you need to have a test that is looking to lock down the spread and prevent more spread of the disease and that toewss a different population, Front Line Health Care workers, front line grocery workers. People who might be what have been called super spreaders that connect with lots of different people that may not know theyre infected that takes many more tests than just the 100,000 theyre doing a day roughly. Meg just talked about the testing and the number of false negatives, false positives how can we possibly reach that when the test results getting back we dont know if theyre correct . Thats a serious question having a false positive thinking someone has covid from a spread standpoint, thats not a bad thing. Its really bad for the person who has to sit for 14 days in isolation, et cetera from a spread perspective, the case where you say you dont have covid19 and yet theyve got covid19 and theyre still walking around, talking to people or going to groceries and maybe putting their hands on various refrigerators and leaving their virus, thats the problem on the spread. Youre absolutely right. We do need to make sure these tests are better calibrated and we do need to make sure that the false positive rate is very low and thats really, really important. We need mass Screening Test thats easy, may have too many false positives but then you have a pcr which has been very wellcalibrated and figures out who gets it. Thats where we need to go how fast well get there, thats really important from the perspective of easing the physical distancing measures we have if you dont have this Testing Capacity in place and cant do a million, 2 million a day, its hard to see how youre going to ease up. If you want to ease up, you have to reduce the number of spreaders. Youre somebody who has worked in an administration, the Obama Administration we are starting to see push back from people and places where they dont feel like the spread is all that bad, where they dont have cases, where they are frustrated and hurt by the economic pain under the shut down and are starting to push back youre seeing this in the middle of april what is the political push back going to be maintaining the strict measures but is painful from an economic perspective. Everyone feels everyones pain its very important to understand the pain, and we really do have to minimize the economic damage. That means you need a whole infrastructure for addressing this it really reflects Political Leadership i dont think the country has gotten a very clear perspective on what are the measures were looking at what are the steps were taking to put those measures in, like a testing infrastructure, Contact Tracing infrastructure in place so we can address this problem what are we doing to make sure people who are older, people who have comorbidities, whether its diabetes or high Blood Pressure or cardiac disease are protected . And i think thats part of the problem here yes, we need to open the economy. Yes, we need to have certain measures in place to do that in the safest possible way. The American Public has stepped up we can see that in the numbers of hospitalizations and now theyre waiting. Whats the next step we have to do to open up the economy . Its hard to hear from the leadership what those measures are. I know that a lot of state governors are scrambling to get a testing regime in place so they can do exactly what you said zeke, want to talk to you about the ultimate conundrum children and schools and the issue of whether and how do we open, especially children that are younger given they come home and its a contact sport, the ability to have them be disciplined, wear masks, wash their hands is almost impossible to believe how do you handle that from a Public Policy perspective . The flip side is, if the parents cant go to school, the parents have to stay home and you have a real conundrum in terms of trying to get the economy back on its footing look, i think i was an early advocate that kids should be able to go back to School Assuming the parents understand the risks and the problem. We still dont know if theyre big spreaders of this disease or not. We know that they dont suffer seriously from it, and thats probably a risk worth taking i do think we need to actually have a situation where they can go back to school. Remember, youre then going to need the teachers in the schools. The teachers have to volunteer knowing theyre taking risks, same thing with the administrators, the food service workers, et cetera you get a lot of immunity of kids getting exposed but parents have to understand the risks they would be taking in god for bid kids did get covid and bring it home. I think, again, this is part of the rational or thinking through of what are the risks worth taking can it be done on a voluntary basis where parents permit it recognizing there are some risks kids will bring covid home and everyone has to be isolated for 14 days. Okay. Dr. Emmanuel, thank you. Obviously were going to have a lot more need of talking to you as we get closer and closer to see whats happening as we hear more of these plans. We appreciate your time and we look forward to talking to you soon. My pleasure, becky. Take care. Thank you. Thank you you, too. When we return, a lot more on squawk box this morning coming up, were going to talk to media mogul barry diller hell talk to us about his take on business during the pandemic, expedia. He has insights. Well talk to him out aball of it stay tuned, youre watching squawk box right here on cnbc. Breaking news. 30 minutes away from the latest jobless number President Trump expected to speak with the nations governors today on reopening the u. S. Economy, but will americans get on board with the administrations time line thats a question well ask iac chairman barry diller. The final hour of squawk box begins right now good morning im joe kernen along with becky quick and Andrew Ross Sorkin u. S. Equity futures at this hour are up about 18 points or so they were up quite a bit more than that earlier. They have pulled back and are basically unchanged after the big selloff yesterday. Meantime, we have some breaking news right from the Treasury Department. Steve liesman joins us with the latest now steve . Andrew, thanks very much. The u. S. Treasury secretary Steve Mnuchin speaking to the virtual imf and World Bank Meeting is going to say that the u. S. Is committed to doing everything in our power to alleviate shortterm economic distress he says there is an urgent need for all countries to act and deploy extraordinary fiscal and monetary actions interestingly he goes on to say, countries need to be ready to accelerate and expand these policies if needed now, some really interesting technical stuff thats going on among countries. The u. S. Is supporting very strongly suspension of debt payments by the poorest countries through a process being run by the imf and the g20 and the paris club, but the issue thats being debated right now is something called a special allocation, a special drawing rights its like the global central bank, the imf, printing money. Thats something that was out there by the imf managing director, supported by george soros, bono, Larry Summers this would effectively give money to poor countries through the imf. Steve mnuchin opposes this saying it is not an effective tool for meeting urgent needs. He goes on to say that 70 of any sdr allocation would go to advanced economies only 3 would go to the lowest Income Countries he does support, however, the ability of advanced countries to lend those sdrs and existing ones if they want. Theres another back story to this, guys, theres a reuters story that one of the reasons the treasury opposes this is they dont want iran and china to be given money from the sdr without conditions that was first reported in a reuters story. Weve been able to confirm that as one of the reasons. Also, the treasury secretary making a pretty interesting comment that even if you do these sdr allocations, the money wouldnt get to the poorest countries. Becky . Steve, thank you very much. Andrew thanks meantime, here to discuss the reopening of the economy and the state of streaming, travel industry and what all of this means is barry diller. Hes the chairman and executive of iac were thrilled to have you join us, barry, this morning. Nice to see you. Nice to see you too i hope youre all well hope youre well. Last time we saw you was in person in the fall when we had just redone our set. How do you see the landscape cataclysmic were in something thats very hard to be objective about were in the eye of it, inside of it. We cant really see it for what it is, but, look, everybody says the same thing theres nothing like it before and while we know some things, we know nothing about whats going to happen, how were going to get out of it, what will have to change . Will this be some really profound difference in peoples lives in the future . So i see it as everybodys scared the fact that we have so much media, so much information all of it telling us that weve got to be scared about cohabitating with anyone so that aint good. Barry, let me ask you this though you bought expedia right after 9 11 you went through with that transaction even after 9 11. Yeah. You believed that on the other side of it we were going to go back to normal i absolutely did. Do you feel the same way about where we are right now no. What i said then was if theres life, therestravel. I still do believe that, but this is not going to be what happened then. It was a very, very quick return to normalcy. That is not going to happen. At best well have kind of a rolling way out. As far as travel is concerned, while im absolutely optimistic that at some point, but i dont think soon, i dont think its until probably september, october, november, december really get life back and in order to travel, youve got to have that so theyre totally different. This is not analogous. I dont think its analogous to anything certainly not analogous to 9 11 and to the financial crisis in 08. So given your ownership of expedia and how are you planning for that what are you telling your employees there . What do you expect the business to look like over the next 18 months what were doing at expedia, somebody said no good crisis goes away, were using the time to do the things we were not able to do when we were running 100 miles an hour to keep up with our growth. So were really spending truly, you know, the quality time that wed spend other than dealing with difficulties, particularly with travel. One day the door closes and, you know, if youve got a Small Business, you have nobody coming in and youve got no revenue well, travel, travelrelated companies have no revenue. Expedia like many large, large travel companies, has a very large cost basis we havent dealt with that considerably, but what were doing is were doing planning inside the company so we are stronger than when we went into it thats all of the planning that basically we are doing what do you make of the bailouts of the airlines necessary full stop. Look, youve got to bail everyone out this is like, you know, you say when youre picking winners, losers, youre saying this or that everybody is in the same position, which is the world stop, worldwide. And so anybody whose income and you see this you drive down streets and you see big cities, small cities and you see nothing is open. Theyre ghost towns. The damage that is being done every day is enormous. Everybody needs to be bailed t out. Well worry about paying the bills later. And when youthink about travel, for example, and the future of business, one of the things thats going to be so critical, were hearing this from other ceos, testing maybe youll get tested on your way into the plane so everyone knows everyone on the plane is okay given the travel is your business, who should pay for that pay for what . All of it, yeah it will be absorbed i think in the cost of business. But, you know, what has to happ happen, the fear has to stop the fear of associating with people plenty of friends of mine, im not going to go to the theater im not going to do this because im afraid right now people are saying even though weve been isolating for three weeks, you cant come over to my house, which is kind of nuts to me but the fear is the next thing thats going to thaw. Whether you test people on the way in or whatever you do, at some point everybody has to be comfortable being a foot away from other people. If that fundamentally changes, then a huge amount of our infrastructure which i dont think will happen. Barry, i just had a question about what you were saying about how people say, okay, even though youve been isolated for three weeks, you cant come over to my house. I think that goes to the fact that not everyone treats isolation or social distancing the same i know people who stay home but they go out to stores, go to restaurants, they have certain things they do that i wouldnt feel comfortable with. Youre only as safe as your weakest link you cant tell or know what somebody elses standards are. Yes, but you kind of have to get over it. You go into a theater and youre sitting literally within inches of people. You go in thinking that no one is going to come in with an enormous toxicity, whatever that is no one is going to come in who has some terrible Communicable Disease and sneeze on you. You kind of just trust in that were all too frightened right now. Were gonna have to get over it or everything will change. Hey, barry, wanted to pivot the conversation and talk about media and also the state of advertising given the iac business how do you see that . Were kind of the tale of two cities tale of two cities for me. On one hand i have iac, advertising, Home Services and all of that, you though, of course its hurt son but its ac i have people who want to go out and buy things that are very aggressive and think of this opportunity while on the other hand i have expedia which has no revenue so a bit of a weird constant imbalance as far as advertising is concerned, why would you i mean, at expedia, for instance, we spend 5 billion a year in advertising. We wont spend 1 billion in advertising probably this year you just rip that across everything, there you are. And so thats the travel industry the question is, how hard do you think its going to hit other media businesses well, of course its going to hit even some of the big travel industry is a proxy. Yes, there are some things that are worthwhile advertising during this period basics, things like that, which look, we havent seen economically i mean, people why anybody is pouring over these First Quarter numbers, clueless to me. The market can go up getting to the Second Quarter, youre going to see advertising across the boards. Why would it sustain barry, you just said something very interesting, which is you didnt understand why the market could go up in this environment what do you think the fair value would be in this environment how the hell would i know no one knows these things, but when we see the damage that is being done everywhere, well see in the Second Quarter from the First Quarter, how can you get fair value how can you get fair value for a company, you know, again, i absolutely believe a year, two from now this will be over one way or the other this is over or were over how can you value that today i dont think you can do it. I certainly cant. In the media space you lived in for so long, netflix just passed disney in market cap. Yeah. Weve had lots of conversations about streaming and the future of big media. Im wondering how you see all of this shake itself out and what the pandemic does to that whole space. Well, i think streaming, it will have an effect on it for sure again, you go a few more months and while people say, one of the last things ill cut is my subscription to entertainment which i desperately need to get through. That will take its toll. People will not have the Discretionary Income to afford it it doesnt change the dynamics of anything. Youve got the competitors streaming is taking over the world. Hollywood is irrelevant. The only companies that have a true path, absolute clear Business Model path forward have nothing to do with the history of the entertainment business. Amazon and netflix everybody else, good luck to them they may be able to build services, but that world has changed forever. I think this pandemic has nothing to do with it other than earnings are going to be much less for a while right you talked about opportunities during this pandemic, there are people within iac thinking about that are there places that you imagine you might try to invest some money over the next 12 months oh, my god, yes look of course, theres opportunity you have to have a long view, be sure footed, you have to look at things not only as they are but as you think they will be. Were looking at some very large potential acquisitions for iab and, of course, its the environment where if you are inquisitive, youre going to do the thing that for many years everybody has asked for. Oh, my gosh, everything is other inflated, bay it for if you have capital it could be a better time than to exploit what is, you know, a terrible downfall for many companies. Barry, weve often talked politics with you over the years, and im curious what you think is going to happen politically. You start to think about the enormous debt that weve taken on the questions about tax, corporate taxes. If you have plenty of capital and you dont have a huge cost base that you will service with no revenue, for sure, buy back your stock politically, i dont know, we currently have an administration as infomercial i dont know if whether in the end people say, please, no more than that. Ill take any alternative or whatever i cant of course i cant predict. I can predict. I think the infomercial administration ends in november, but as far as long term, the damage thats being done cant be assessed right now. Its going to have a huge political impact whether that tilts you this way or that way, i cant really tell this is not short term, the effects. Barry diller, we appreciate you spending time with us this morning. Its always an education we are hoping you stay safe. Thank you wish i could be less bleak i am very long term. Thank you. Okay. Ill talk to you soon. Thanks so much becky . Thanks when we come back, initial jobless claims thats a number thats become one of the strongest indicators of how the coronavirus is hurting the u. S. Economy 5 million new filings are expected this morning. If we see a number higher than about 5. 6 million, that would mean that all the job gains since the financial crisis have been wiped out in the space of a month. Just tells you how quickly things are shutting down as we have the stayathome orders as we head to break, take a look at the shares of Morgan Stanley. Missing estimates on the top and bottom line. Ceo james gormon says liquidity remains strong stock down by 2 1 4 percent this morning. Stay tuned, you are watching squawk box on cnbc we cannot do all the good that the world needs. But right now, the world needs all the good that we can do. To everyone working to keep america strong, thank you. Shbecause Xfinity Mobilehen ygives you more flexible data. You can choose to share data between lines, mix with unlimited, or switch it up at any time. All on the most reliable wireless network. Which means you can save money without compromising on coverage. Get more flexible data, the most reliable network, and more savings. Plus, get 200 off when you buy an eligible phone. Thats simple, easy, awesome. Go to xfinitymobile. Com today. Blackrock out with its latest results a little bit earlier this morning the Worlds Largest asset manager reporting earnings of revenue above expectations blackrock saw 35 billion of net in flows in what it calls the challenging times. The yearonyear profit fell 23 . We spoke with blackrock ceo and chairman larry fink earlier on the program. So the risk for the market today is the disease curve takes longer the risk for today is that we dont have americans and europeans feeling very comfortable with their environment and so that will be taking time. What im saying is i just dont see a rapid rebound. I see a rebound that is going to take time as we develop the testing, as we develop the antivirals before we develop a vaccination. Fink did note that prior to the outbreak of the coronavirus the First Quarter was shaping up to be one of blackrocks best ever when we come back, the latest jobless claims data we have millions of more filings expected unfortunately House Minority leader Kevin Mccarthy will join us to talk about getting more money to american Small Businesses. The Paycheck Protection Program will get closer to running out of money as we head to the break, take a look at the futures ahead of the key jobs number. Coming up in under ten minutes at 8 30. Well bk tethbeacafr is tions t, and look, it feels like im just wasting time. Thats why Td Ameritrade designed a firstofitskind, personalized education center. Their awardwinning content is tailored to fit your investing goals and interests. And it learns with you, so as you become smarter, so do its recommendations. So its like my streaming service. Well except now, youre binge learning. For a limited time, get up to 800 when you open and fund an account. Call 8663009417 or visit tdameritrade. Com learn. Coming up, its thursday so weve got the latest jobless claims figures 5 million. 5 million new filings are expected after the economy logged 16. 8 million filings in the last three weeks that data when squawk box returns. When we first opened our doors, it didnt take us long to realize. We werent in the car business. At lexus, we were in the people business. We needed to be helpful. Respectful. And compassionate. To treat people like guests. Its what we all signed up for. And now when people need this most, we will do what weve always done. Take care of people first. The rest will follow. Swithout even on yoleaving your house. Just keep your phone and switch to Xfinity Mobile. You can get it by ordering a free sim card online. Once you activate, youll only have to pay for the data you need starting at just 12 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. Its the most reliable wireless network. And it could save you hundreds. Xfinity mobile. Welcome back to squawk box, everybody. Were just a few seconds away from the initial jobless claims figures. Were awaiting all of these numbers and watching the futures. Right now it looks like the dow is indicated up by 11 points we are higher this morning but it whittled away the gains as the market awaits on what are the rough numbers. The numbers are estimated to be 5 million for the last week. That comes after three weeks that totaled 16. 6 million jobless claims this is the key number that wall street has been watching and awaiting again, it looks like right now the dow futures are up by 15 the s p up by 6. The nasdaq up by 67. Lets get over to rick santelli. Standing by at the cme in chicago. Rick reporter well, becky, lets see. Theyre all coming out at once initial jobless claims up 5,245,000. Continuing claims rocketing up to 11,976,000. Ill repeat that 11,976,000 now lets go to Housing Starts they are down over 20 at 1. 216 million seasonally adjusted annualized units, and if you look at whats going on with the permit side, theyre down almost 7 at 1,353,000. And of course both of those numbers are actually in the neighborhood of expectations actually, permits were a little more than expected and starts were a little bit less than expected lets put a face on this, shall we if you look at january starts at 1. 624 million and permits of 1. 5 million, becky, both of those numbers were the best in years philly, the reason phillys interesting is this is an april read and, actually, i dont have it out yet dont see it on my system. Im going to do a push on philly what are Interest Rates doing . 61 basis points on a 10year about where it was it was at 60 basis points. History there. 54 basis points is the alltime low yield close. 30year bonds, 99 basis points low yield close. Heres an oddity if you look at boon yields, alltime yield closes at minus 85 hovering around minus 84 theyre lower than the all time close. Theyre in negative territory. It is a different scenario with europe and the central bank in a much different situation than ours becky and the gang, back to you. All right, rick stay right here. We have a lot more to talk about. Its worth pointing out that even though the numbers are horrible numbers, theyre not that much worse than the street had been expecting we have seen the futures pick up pretty significantly we went from the dow picking up from 15 points to now up 100 points above fair value. 5. 24 million is the number of initial numbers. The street was looking at 5 million. In weeks past we had seen much worse numbers than the estimates had been almost a sigh of relief. Lets get reaction from our expert panel joining us is austan goolsbee. Hes university of Chicago Booth School professor michael strain is with us. Economic policy studies director and david balin at citi private back our own diana olick and Steve Liesman is with us as well steve, lets get to you as well. Your take on the numbers you had been looking for lousy numbers. Here you go, you got them. Reporter yeah. Astonishing. We talked about this with the panel, the market rallying on what are absolutely atrocious numbers here i got the philly fed index, which is down 56 if you are looking for a bright spot here, its not down as much as the empire state was yesterday, which was down 78 prices paid falling suggesting inflationary impulse expectations also negative minus 30 employment down 46 new orders down 70 its justone awful, terrible number after another able to do some quick calculations here. If i take the total of 22 million jobless claims over the past month or so since the 21st of march, you have an Unemployment Rate, potential Unemployment Rate, somewhere between 12 and 20 depending on how much of that moves over from unemployment claims into actual unemployment at the high side youd be around 19 . In the middle at 15 Unemployment Rate right now. The Housing Starts, becky, also all over the map, but im sorry, what i meant, all geography, all four sectors of the United States down, biggest drop in the northeast. Trouble with whats happening with housing is that housing is supposed to be a major way that lower fed Interest Rates get into the economy so you are not getting one key Interest Rate sector being helped by low Interest Rates and thats a problem for the conduct of Monetary Policy the fed may have to deal with this another way. Becky . Steve, stay with uses a we as well. Reporter lets go to dye than olick. Reporter these are worse than at the start especially on the permits. I dont think we have to say these are going to surprise to the down side more theyre going to get worse than april. The worst of all of this shutdown is at the end of march, early april. When we see the numbers now, theyre back to Single Family especially, 856,000 starts were back to where we were last summer believe it or not, thats still 2. 8 higher than one year ago. Housing starts at this point will pull back a lot more in april and may, but when people start comparing this to the subprime mortgage crisis and the housing crash that ensued there, you saw Housing Starts plummet over four years to the lowest levels at 300,000 starts for Single Family. Were not going to get anywhere near that. The reason is, we dont have the same kind of Housing Market that we had back then we had a Housing Market back then that was completely over built. We were at 2 Million Units back in 2006. Nobody needed that many homes. Right now we have a lack of homes. We have a severe shortage of homes for sale on the existing side and were not even back to where we should be normally in Single Family construction if you look at household formation before all of this started before the pandemic, we were 350,000 units short were going to see the numbers start to come down even more over the next couple of months you saw Builder Sentiment drop dramatically, historic drop at 30 50 is considered significant youll see the numbers come back towards the end of the year when the economy starts moving, most analysts and i believe as well say that housing is going to pull us back, is going to be a driver of economic recovery simply because theres so much demand for it. Becky . All right diana, thank you lets get to the rest of the panel, too austan, your thoughts both on the Housing Starts number but also the jobless claims number that came in you know, all those numbers sound gruesome to me this is from march where almost two weeks weresupposed to be semi normal. It feels like that we have answered today the question for unemployment was there just going to be a backlog of people who had not yet processed through the system or are there still millions of people continuing to lose their jobs. I think with a number like this it means people are continuing to lose their jobs is there an end in sight, austan as you Start Talking about opening the country again, opening the country for business look, it may not all open at one time we may be talking about gradually. Do you think things start to look up a week from now, a month from now, two months from now . Whats your best take . Reporter you know, if we dont do the testing, which the Business Leaders that advise the president yesterday said before we open weve got to do a lot more testing we have models for countries not in lockdown. Korea is not in lockdown, iceland, new zee land, now germany. You do enough testing so that the only people who have to go out of commission are the people who get the disease, thats the way forward. I cant understand why were not talking about that were just pressing ahead, it feels like, to say, well, lets just all go back out these march numbers, we have record lows for retail sales that came in yesterday weve got awful housing numbers. Weve got awful unemployment numbers. They should be sobering to anybody who says we shus just reopen much of that happened before there were any shutdowns they show you that the reason the economy is going into shutdown mode because people are afraid of getting the virus and you have to do testing and you have to do prevention if you want to get out of lockdown. Michael, whats the aai perspective on that . Well, there is a lot of mixed views at aai my perspective is this is terrible you know, i think you could try and put a positive spin on this and say a smaller number of initial claims suggests that there may have been a big wave of initial layoffs when the shutdown orders happened and maybe were over that hump nowhere a nowhere at a reasonable level, even for an economic calamity. This is really bad this suggests the need to have policies in place that can keep workers attached to their employers and they can allow for employers to quickly hire back workers. Of course, the Paycheck Protection Program attempts to do that. Its running out of money. That is a scandal that congress cant just appropriate some additional funding for that. That program is structured to stem these losses. I began my remarks with some good news. There may, of course, be bad news these are initial claims for Unemployment Insurance for people who are successful at processing that claim. A lot of state ui systems are really overwhelmed right now so the actual number of people who are trying to get Unemployment Benefits may be much, much higher than you know, several million higher than what weve seen over the last three or four weeks. So we just, you know, desperately need Public Policy to step up here and try and do t it and so when we do reopen, i hope relatively soon, at least begin the process of reopening, the Unemployment Rate doesnt need to come down 20 Percentage Points because it didnt get that high in the first place david, lets talk about how long you think this is going to last weve got a couple of voices on the show this morning, important voices who really understand whats happening beneath the surface, larry fink and Barry Diller Barry Diller talked about how at expedia they traditionally will spend 5 billion on advertising. This year he says theyll spend less than 1 billion that ripples through the rest of the economy. How long do you see this playing out . How long do you see this lasting . Well, i think what barry diller and larry fink said is exactly right, which is were talking about a period of time between now and when that vaccine becomes widely available. That could be anywhere from 18 to 24 months in between now, we dont have effective treatments for the disease and all of the testing and tracking the question youre asking, becky, to the degree the markets actually have baked this in, right . Were going Citi Private Bank thinks were going to end up with an Unemployment Rate of 20, 25 for a brief period of time and the question is how fast does that come back . We recently ran a model looking at this data and it takes 9 quarters to get back to where we were in the First Quarter this year, 2020, of gdp quite a bit of runway from here to there the thing that gives us confidence that we can get back to that very slowly is the amount of money the government is pumping in to benefits for individuals and also the fact that the testing and the tracking were talking about actually takes place so i think the market is actually, you know, in one sense being a little bit too generous in our ability to do things now. And there is a finite end once the vaccine is created and delivered. Those are the two things taking place in the market right now. I would argue its a bit optimistic right now in terms of whats actually priced into the market david, austan, michael, diane, rick, steve, want to thank you all for your time. Pretty important numbers and great instant analysis joe . Thanks, beck. Coming up, an update on the struggle that you just heard eluded to, the ppp, getting more money there. Getting billions of additional dollars to american Small Businesses before crucial Government Program runs dry. As we head to break, well talk to leader mccarthy take a look at shares of United Airlines company cutting its may flight schedule by 90 saying travel demand has essentially shrunk to zero and worrying about it stay tuned, youre watching squawk box on cnbc welcome back to squawk box this morning take a look at futures after we got the jobless claims numbers its been moving around a lot here dow will open up 53 points higher nasdaq up 86 points. S p 500 up 13 points meanwhile, we want to get over to cnbcs headquarters where jim cramer joins us now. What did you make of the number, jim . In line from what people are thinking im still reeling from barry diller who came on and told what i wish everybody would tell, which is the truth about how they feel, which is that, geez, things are not good. You have to do whatever is necessary. I thought that he was the most poignant of all the guests i dont mean to sleight larry fink weve all been real about whats going on out there i remember barry since 1979. Heres a guy who cant help but call it straight and it is chilling its chilling because what he says is the country has shut down you can do whatever you want you can open it, say you want to open it, doesnt matter. Its shut down that was incredibly sober and realistic, not pessimistic good interview. Let me ask you a question, jim. Given the comments that barry made and larry made as well, you look at the markets. It was a question i asked barry. What is fair value for the markets given the risks andrew, there is no fair measure. Right when he said that. He said, what the hell do i know what the hell do i know only a guy who has been so accomplished and is so worldly and, yes, so wealthy could be so kind as to be objective about that to say how do i know . 1,000 people at home, theres been so much money thrown at this market and i think it has to be thrown at it it just does act as a put, that is true. So every time you want to get really negative, say tonight lets say leader mccarthy gets together with Speaker Pelosi and secretary mnuchin and they give you another 2 trillion, well, i mean, if you were betting against the market and another 2 trillion comes in, what that means is we have to keep everybody open until we get a vaccine. We may not have a vaccine for 18 months, two years, we dont get a vaccine at all in the interim we get herd immunity so this doesnt kill us all. Whats going on existentially, an be drew, theres becoming a consensus that despite what were hearing about a flattening, everybody is going to get it. Some are going to live, some are going to die thats where people ruminate at home thats what Brian Moynihan talks about. Call it physical distancing. Youre ruminating. I dont want to die. Not i dont want to go out, i dont want to die. We have to change that discourse. Thats what barry was saying are we kidding what are we talking about . Its just russian roulette we have to get it out of russian roulette im willing to go to the game and be willing to get sick getting sick and not dieing. We have to take dieing off the table. Take dieing off the table until we get the drugs though, im not sure we can take im not sure we have a mortality rate of 9 yesterday it made me think, hey, spanish flu, we have nothing on you. But then now its spanish flu, were worse than you and 9 mortality rate. Thats extraordinary 4 is extraordinary. Let me give you about how Carnival Cruise theyre doing great. Maybe they shouldnt even have cruises. Maybe we shouldnt have them jim, we will see you in a couple minutes you mentioned Kevin Mccarthy we have him on the other side of this commercial break. Thank you. Well see you on squawk on the street in a minute. At 9 30 eastern time, dont miss a first on cnbc interview, Morgan Stanley ceo james gormen is going to join the gang. Keep you connected. To through the resilience of our network and people. We can keep learning, keep sharing, keep watching, and most of all, keep together. Its the job weve always done. It is the job we will always do. And sometimes, you can find yourself heading in a new direction. But when youre with fidelity, a partner who makes sure every step is clear, theres nothing to stop you from moving forward. Welcome back to squawk box, everybody. We have been watching the futures. After the jobless claims came in with a better than not a better than expected number, a number that was just about as lousy as the markets had been anticipating, 5. 4 million jobs lost versus the estimates of about 5 million. It looks like the market is up by about 42 points in our headline headlines, veris agreed to buy blue jeans network. This is a rival to zoom. Verizon is going to pay less than 500 million for the company. That comes amid a surge in the use of Video Conferencing by businesses, schools, and others. Verizon will be on squawk on the street. Jobless claims for the week ending last saturday coming in at about 5. 25 million. In the last month, we wiped out almost 22 million jobs or 22 million plus since the financial crisis that all that we gained, in fact, since then. The data comes as aid for Small Businesses could be drying up, just as its needed the most a new opinion piece for the wall street journal, our next guest says theres no time to waste in getting more money into the governments payment Protection Program joining us now, House Minority leader Kevin Mccarthy. And that wasnt the title of it. I think the title is democrats want to gum up payroll protection what really happened really not asking for anything other than what was already negotiated in the cares package, but now they want to renegotiate that is that your contention, leader . Well, the contention is just last week, we watched we asked for another 250 billion the question is why. Because we had more than 1. 6 million loans. Thats 1. 6 million Small Businesses who got money 338 billion is already set. That means less than about 3 to go by the time were done with this interview, we may be out of money. Wee not asking to change anything in the cares act, just something that actually works. Add more money to it so people stay employed. 75 of that money actually goes to keeping people employed in your Small Business, people that you know, keeping them alive and working. But as we ask for more money, the democrats said no, it could have passed by a simple unanimous consent. It was one page in the senate. They said no here we are about to run out of money today, and nancy pelosi will still hold it back. I dont understand why we just got 5 million more reasons why this should stop this morning and this is about keeping people employed this is about keeping people liquidity for the next couple months as we continue to move through our Current Crisis you have been there a while, leader whats behind whats behind the whatever you want to call it, the positioning, the negotiati negotiating, what do schumer and pelosi really want you know, the last time we sat to put the cares act together, we had about done, but it was almost a week delayed because theres things they want things that dont deal with the virus. A green new deal, sanctuary cities, even getting to planned parenthood, changing election law for november you know, theres time to debate that, but right now, people are being laid off heres a program that theres almost 5,000 banks, its your community bank, its your credit union, even fintech. This is going to Small Businesses its actually a grant. If you use 75 of it to pay your employees, even if theyre already laid off, thats a grant to you the rent, the utilities, it keeps you alive. Look, i started my First Business when i was 20 i could not survive today in the climate were in i had an individual text me last night, a Small Business that has been in my community, that is actually an ambulance company. She called me almost in tears thanking me that shes not going to lay anybody off and shes going to stay afloat for when the 911 call comrs in that theyre going to have somebody for them this is whats happening, but right now, democrats are playing politics theres no need for politics, no policy changes what theyre even requesting is making it harder on the Small Business to get the loan they want more data from you we brought this down to two pages. Its not a time to argue its a time to provide the resources needed to keep you afloat and keep you hired. And what do they say about what the republicans they say the republicans are playing politics whats their contention that youre trying to do . I dont know because im not requesting for anything else im not requesting to change the bill all im saying is you have a program in the bill thats about to run out of money. Put more money in it if theres another element that needs more money, theres not. Nobody else is running out of any elements within the cares act. If it is, ill increase it if its needed but i dont think you even have to call anybody back here. You could do it by unanimous consent. I said on the republican side we would do that. It just took the democrats to object, saying they need something more i dont know what more you need when you see 5 million more, 22 million reasons why we should not play politics right now. Im willing to Work Together just as when we did our second bill and the wording was not correct, i let the bill move forward. And that we would change it on monday because i think putting people before politics is this is the moment in time we should do that put the politics aside yes, fancy pelosi and i disagree philosophically on a lot of things but i cant believe we could disagree on this heres a program that 1. 6 million Small Businesses just got. Yes. Leader, lets just quickly tell me what is your opinion on what to do with w. H. O. Funding is it suspended . Will the president is he like he does in so many cases where he wants some change in behavior and then eventually maybe its not defunded do you think it should be . Is it more about the current leader of the w. H. O. And do you agree with some critics that say this is the wrong time even if there were mistakes made, this is the wrong time to defund or stop funding the w. H. O. . I think what the president is doing bringing attention we now have somebody running the w. H. O. Who is the first nonphysician someone who told us in january that it doesnt transmit between humans an individual that allowed them to continue to travel in different places around the world. What did that mean i mean, if they are going to be the mouthpiece of china, i think there are fabulous people in w. H. O. , but why dont they look and change their own direction what the president is doing is bringing attention to it so were safer around the world the deception of china has directly led to american deaths. Whats interesting to me is what media wants to glob on and try to attack the president when hes trying to make us safer and bring attention to everything. Whats interesting too is china has almost a billion more people and pays 10 of what we pay. Were out of time but thank you, and we hope to see you again soon that does it for us. Now bewere going to toss it ov to squawk on the street. See you tomorrow good thursday morning welcome to squawk on the street. Im Carl Quintanilla with jim cramer and david faber this morning, james gorman and verizons hans vesbrg, as futures are steady philly fed lowest sinc