Transcripts For CNBC Squawk Box 20240713

And the nasdaq is indicated up by 66 points lets take a look at whats happening in the treasury market the other thing worth watching, wti, crude oil prices. Last i saw up another 7 to 31. 51, so seeing wti above 30 a barrel the tenyear note is yielding 0. 64 . Andrew thank you, becky. Hope everybody had a great weekend. We have an update as we do every morning these days on the pandemic lets give you the total numbers right now. Global cases have reached 4. 7 million with 1. 4 million right here in the United States. More than 90,000 people in the United States have now died from this virus changes are coming to our nations airports as well. The tsa reportedly preparing now to check passenger temperatures at about a dozen locations as soon as this week. Airlines have begun urging the government to take steps in an attempt to keep potentially sick people off planes and make travelers feel more comfortable flying again, which is going to be so crucial not only to everybodys health but to the economy. Joe . 06 minutes, digesting News Comments from fed chair jay powell he told 60 minutes that the u. S. Economy may not bounce back until there is a vaccine available. In the long run, and even in the medium run, you wouldnt want to bet against theamerica economy. This economy will recover. It may take a while. It may take a period of time it could stretch through the end of next year we really dont know can there be a recovery without a reasonably effective vaccine . Assuming theres not a second wave of the coronavirus, i think youll see the economy recover steadily through the second half of this year according to a transcript from cbs and a part of that interview that did not air, powell said that the u. S. Economy could shrink in the Second Quarter by more than 20 or 30 those are big numbers. I was thinking about last week, becky, and andrew, because we, you know, are there really weeks or is it just the alarm clock goes off every 16 hours and we do this again groundhogs day. The days are all the same remember saying, its friday night. Its like, yeah, that means wine just like all days that end in y. No, but thinking about last week, remember we had we were like hemorrhaging. Down like 700. And into the close, the last half hour closed down 500. Turned around. The next morning, the next day we were down like 450 and closed up 400. Remember that one . That was weird and that could have been much worse. And then even on friday, i think we were down 200 or 300. You know, all the days are and we closed up 271. Yeah, yeah. So, we close up 60 even though it was a down week, it was a week that i think there were some positive maybe underpinnings to the whole thing again. Im thinking about 2950 is where we were on the rebound on the s p and then it looked like we were heading back down because we did the 2850 bet on doughnuts and tacos and we got below 2,800. 2,770. Now were back im looking good, do i want the fire hot sauce or the extra hot . Sometimes i get the medium hot or whatever. Now im starting to becky is not picking out a dog. The gerbils will have to do for the kids for a while without the hypoallergenic dog. To be honest, i dont think we can keep anybody else alive in our house at this point. I cant imagine ive been thinking about that, too. My kids are older. What are you doing, sorkin what do you do are there any Jigsaw Puzzles left that havent been have you seen the legos behind me . The display grows every single week. What do people with four little ones, theyre just like ready to, i dont know, check themselves in somewhere, the looney bin with kids that young it must be very, very difficult, right . Andrew, whats your secret thank you for your sympathy. Do you have a trust bubble set of nannies or something . I mean, what do you how are you how does someone really well off handle this were all trying, joe were trying its tough its tough for anybody you know what, we are so blessed, all through three of us are so blessed no complaints, no complaints. You read the statistics, read about 90,000 people dying. Thats bad. Its a microcosm the deaths are horrible. All the families affected. And then you also have people that, you know, food insecurity, people that are unable have no idea where their rent is going to come from, people that the jobs theyre not laid off anymore, theyre furloughed. Theyre not going back to wherever they were i dont know that raises Big Questions about the overall economy and whats been happening on that. Going back to jay powell and the comments he made over the weekend, you know, at one point he talked abouthow potentially the economy might not get back to normal until you actually have a vaccine that works. There was also the Federal Reserve on friday that put out a report saying that very interestingly, its these companies that had taken on too much debt, Overleveraged Companies are still the big concern for the economy Going Forward. They even said some hedge funds may be part of the problem with what happened with market dislocations they said some were severely impacted and might have been the reason we saw the big selloff we did. Right we know how Pershing Square did pretty well. Thats one there were others, im sure at that point anyway, the vaccine stuff every day well hear things. Maybe well hear something today. But its moving very quickly hopefully. I dont know whether we every did it this way where youll make a huge batch based on assuming its going to work because of you know the science. It wasnt like that before. And maybe not. Well probably have several vaccines. If you make it before if you dont wait to start manufacturing before everything is you have phase one, two, three, safety, efficacy, all that stuff thats an interesting way to do it make a lot of it anyway, and theyre willing to do that and spend whatever it takes to have it ready if it is effective. Maybe the timeline they said in some cases you may be it will be shortened in some cases youll need two doses so theyre ready to ramp up on a lot of different fronts, more than one vaccine candidate. Well see what happens with that. Were also watching shares of Goldman Sachs this morning it, under pressure after an announcement late friday from Warren Buffetts Berkshire Hathaway it slashed the bulk of its holding during the first three months of the year that investment dates back to 2008 during the financial crisis when berkshire sold more than 10 million or when berkshire gave 5 billion to Goldman Sachs and if return got Something Like 13 million shares. Yeah, 13 million shares as part of that entire situation they dumped more than 10 million goldman shares bringing its holding to 1. 9 million shares at this point goldman sac maman sachs shares n 30 in the First Quarter andrew thanks. Meantime, this is weve been talking about softbank for so long this is a moment thats going to be written down, i imagine, in the history of softbank. Alibabas founder jack ma stepping down from softbanks board of directors after 13 years. This is the latest in a string of highprofile departure from the bank giant this is coinciding and might be the historymaking part. Softbank record13 million loss mostly tied to its investment in we work, one of the topics we talk about almost daily. The wall street journal reporting softbank is looking to sell stake in tmobile to Deutsche Telekom so softbank has been under a lot of pressure from Elliott Management a lot of things happening there. One more store in the deal world, the wall street journal reporting grubhub has rebuffed ubers latest offer. Weve talked about the back and forth and difference in price. The talks over the weekend and grubhub deemed the latest offer of 1. 9 uber shares for each grubhub share as being too low yesterday Amy Klobuchar blasted the merger talks calling it bad for competition and for consumers. She tweeted, if uber takes over grubhub, it isnt good for competition and isnt good for you. When Big Companies corner the market it usually means more for them and less for you, especially in a pandemic thats why im challenging the Trump Administration, the antitrust enforcers to do something about it having said that, i would say to Amy Klobuchar that Silicon Valley investors and well, investors writ large have been subsidizing all of this for all of us for quite some time and the consolidation probably has to come to the market at some time otherwise the economics of it dont even work to begin with. Good for you. Good for you a little bit difficult. Its a hard one. Its a hard one. Competition is important we want lots of competition. What you want in this case is probably two or three really strong players who can actually compete against each other instead of four or five really weak players that are all falling over each other and will ultimately fall down if something doesnt happen. Its all about each specific instance i guess im looking back at some of the lunacy or benatilty with Elizabeth Warren or with all of them. Cant do any of them you need to do it individually there are times where either youre going to be left with zero companies because its just not viable or left with and sometimes operations are rational rationalalized sometimes not everyone from both companies gets to stay, but, i mean, its just the way things you can go back and look at history and see that there are times where you need to do it and maybe some that dont work, some that do but a blanket statement that youre not going to allow any of them to happen. I think shes wrong. I think she probably wants to be Vice President and likes to get out there. I think its wrong and i think youre very gentle you said how did you you used one of those phrases about you said it and then you were going to disagree with it whats that you read what she said and then you go, i would just add that and then you sort of pushed back on the other side in a very gentle way because shes im a gentle guy. Joe yes, becky. Can i just say, i agree with you wholeheartedly on going against what aoc and Elizabeth Warren were saying about how theres no need for any mergers. In this case i do have a few questions simply because i think the risk is the restaurants on the other side are the ones who very much get squeezed by this, too. If you talk to any restaurant who uses these things, they tend not to be that profitable and theyre not in a position to have a lot of wiggle room. It was interesting when we had dara on in the last week, he talked about uber eats and said right now theyre still not profitable things are looking better. People are using the service much more frequently but uber eats itself is not profitable. Thats the problem. None of these businesses you definitely have to have consumers paying more. The answer is going to be, they need more money from consumers and more money from restaurants. Thats a tricky proposition. 100 . Charge a real price. 100 . When we come back, dr. Scott gottlieb will join us. Hell weigh in on what the cdc should be doing to help doctors on the front lines of the fight against coronavirus. That is next and get ready for a busy week of earnings weve got a read on the first coronavirus quarter from some major retailers this week. Names like home depot, target, lowes, tjx all set to report tomorrow at 6 00 a. M. Eastern time across america, Business Owners are figuring things out. Finding new ways to serve customers. Connect employees. And work with partners. Comcast business is right there with you. With a network that helps give you speed, reliability and security. And enough bandwidth to handle all your connected devices. Voice Solutions Like remote Call Forwarding and readable voicemail. And safe, convenient installation. When every connection counts, you can count on us. Get the connectivity your business needs. Call today. Comcast business. Welcome back, everybody. In his latest oped, former fda commissioner dr. Gottlieb focused on the cdc he says the agency needs to streamline and publish clinical date to to help doctors on the front lines. Dr. Gottlieb joins us and hesst also a cnbc contributor. Thanks for being with us this morning. Thanks. Lets talk a little about this oped i think its unusual for you to be so pointed in criticism of one of the other agencies because having led the fda, i know you tread very lightly on this thats why what you say, i think, we should all take to heart on some of these issues. You say that the cdc really needs to do more to be helping thedoctors on the front lines. Just in terms of some of the information thats been collected. Can you be a little more specific and explain to the viewers. Its unclear why the cdc hasnt been reporting as much as it should be or could be in this Public Health crisis you typically would see cdc put out weekly data, the reports they issue that would effectively be the collected Clinical Experience in the United States of how patients are doing with covid19 so, remember, we now have about 1. 4 Million People who have had the infection. Many more than that, actually. Were probably missing a lot of diagnosed cases. Weve had hundreds of thousands of patients hospitalized, more than 90,000 dead you want to see reporting from the cdc that starts gate that information and basically put out reviews and series detailing what patients were hospitalized, what their condition was, what interventions they had and what outcomes they had. You cant do exquisite Clinical Research in the setting of a Public Health crisis, its very hard, although were doing a lot of it. What you want is that bottom line reporting on how patients are faring china put out good data in that regard the United Kingdom has put out good data. We have put out very little of that data. I think the syndrome with the children thats been in the news recently where you saw new York City Health officials put out bottom line data and you saw italy put out some of that data and the uk reported on april 26th last week the cdc put out its first statement about that and didnt detail the different cases. Normally you would see the krthd put out the bottom line data and that can help guide clinical practices. A lot were learning about this virus as we go, basically through trial and error and word of mouth. Word of mouth and also through the internet you pointed out theres a lot of twitter threads and other thins doing this what are two or three of the things you think the cdc could have put out information on, things we learned about through word of mouth and, frankly, through talking to you early information about the blood clotting that doctors were seeing we now think a lot of patients who decompensated quickly, who got intubated quickly in the hospitals and their oxygen saturation, their oxygen levels fell quickly, some of those patients probably had blood clots that went into lungs we learned that and doctors are experimenting with different drugs which seem to be blood clotting platelets documenting that early would have been important. We now have autopsy data coming out of other countries looking at that. Thats an example. The inflammatory condition that you see some patients get where we think that part of whats making patients very sick is the immune system overresponding to the virus and actually attacking parts of the body and then the different medicines that doctors are experimenting with also what were learning about intubation, about putting patients are breathing machines. Were now learning we probably should be waiting a little longer and not being as aggressive to intubate patients. Again, if we had more information about the collected Clinical Experience in a systematic way, those insights could have happened or maybe happened sooner and we could have been innovating clinical practice sooner. Well be in good shape going into the fall because we know how to treat patients better but in the setting of this epidemic, that information was very slow to be aggregated. What do you think happened . The cdc fell down in terms of the testing and theres been a lot of back and forth how they were slow to this. To this point the cdc has been the Gold Standard around the globe. What happened . Well, i disagree with the idea they fell down on testing the cdc was slow to roll out that test. There were problems with that test that really wasnt the challenge we had with respect to trying to get testing in place early on to try to do what we would call sentinel surveillance, basically try to detect this virus early as it was spreading in the United States in small numbers even if that test rolled out perfectly and they had given it to Public Health labs, we still wouldnt have had enough testing in place what needed to happen is we needed to get the commercial labs and large Academic Center labs into the game earlier someone needed to call the ceos of lab corp some time in january or at least early february and say, hey, we need you guys to do this we need you to stand up your laboratories because theyre the only ones with the throughput to do the scope of screening to do true sentinel surveillance. Saying problems with the diagnostics and surveillance was the challenges had with cdc rolling out the test isnt the case. I read a piece that kind of walked through step by step and it looks like they crosscontaminated a lot of the tests they sent out. They were very slow to react to that very slow to pull it back. And didnt phenomenal through with some of the very basic things like you shouldnt be creating these tests and creating some of the creating some of them in the same places where you were studying the coronavirus because thats a complete violation of the scientific standards that would have been required by any of it. That sounds like a pretty big falling out by cdc. Thats all true that looks to be true. Even if they hadnt made those mistakes, we still wouldnt have had enough diagnostic testing. That test they were developing was going to go to the Public Health labs, which dont have a lot of throughput its people saying the reason we didnt have surveillance in place is because the cdc tests didnt work. Simultaneous to the cdc working on that test we also should have been spinning up the commercial labs that would also give us a backup plan we put all our eggs in the cdc basket that test didnt roll out on time even had it rolled out on time, my point is simply we wouldnt have had enough testing in place. Statements that we didnt have testing in place and surveillance is because of themy takes the cdc made, i dont think those hold true. Its clear the cdc made mistakes in getting that test out doctor, given your relationship with the administration, maybe you can shed light on why those tests werent put forth earlier. There have been reports in the financial times, i think, in the past 72 hours over the weekend or maybe last friday, suggesting that Jared Kushner was advising the president not to buy more ventilators, not to do more testing, in part, because he thought it was going to scare the market and scare the public. Peter navarro has come on our air and said they were on it, they had gotten on it and gotten on it early. So, whos right . Look, i dont i dont believe those kinds of coordinated conspiracy stories, but ill say what im talking about really is back in january. You know, trying to get the commercial labs working on laboratorydeveloped tests because that takes time. It takes a month or two months to do. Eventually those phone calls were made. The academic labs were asked to spin up laboratorydeveloped tests and so were the commercial labs but they were made late. Who and they were who had to do that . Who had to do that probably someone in hhs, the fda commissioner or secretary of hhs. Someone in a senior role inside the Health Agencies and regulatory agencies calling the ceos saying, hey, we need you to do this. Were worried about this problem. We might need this capacity. We dont know. We know its going to take you six months to get these tests in place. Were asking you to start working on it now. Those phone calls get made. But how could they do that if the administration was telling them not to effectively . Well, i first of all, i dont know exactly what the administration told them what i believe to be true because its been reported in the press, they just werent asked to do it it isnt that they were told not to do it they were never asked to do it so it wasnt until late february that people were starting to bang on their door asking them to do it by february, took six weeks to get into place so you didnt have that testing in place until well into march. Everything was delayed that request needed to be put out in late january. We would depend on cdc test and commercial Kit Available to get out to the labs and the labs would run that kit thats where the snafu was, the hangup was my point is even if cdc had done that, we wouldnt have had a lot of testing capacity. We always needed to get the commercial labs in the game. Dr. Gottlieb, thank you really appreciate it, especially the forwardlooking stuff in what you would like to see with information coming from the cdc. We appreciate your time. Its good to see you a lot more to come on Squawk Companies responding to the pandemic we have a roundup of the new moves announced over the weekend. As we head to break, take a look at some images of the Pandemic Impact yesterday from across america. Welcome back to squawk box. Ryanair cutting up to 3,000 jobs the airlines were grounded in midmarch and now the Company Expects to resume what they say 50 of scheduled flights at most, at most, it says, by september. Companys Ceo Michael Oleary told cnbc europe he expects deep discount on pricing this summer. He blasted some European Countries to require a twoweek quarantine after some inbound flights for passengers calling the proposal idiotic and a joke i know a couple of people who have been trying to get their money back, in part, because of these quarantine plans, if you will, that require you to be somewhere for two weeks for people who were planning to go somewhere for two weeks. If you have to be quarantined for two weeks, you might as well not go. Apple releasing new guidelines as it prepares to reopen 25 stores in the United States this week the tech giant saying it will require customers to submit to temperature checks and wear masks before entering stores apple says it will provide the masks to customers who dont have one already i dont know if you saw over the weekend, there were a handful of brawls and fights taking place over the issue of masks. Customers going up to other customers, some Wearing Masks, some not Wearing Masks its becoming a bit of an uncomfortable conversation in parts of the country right now joe . Yeah, most of them are they work in youre trying to prevent from giving it spo someone. But i think theyre like 60 effective coming the other way you have to decide what you really want, i guess whether you want thats why you need both. You need both. Otherwise it doesnt work. That apple chart might not have been an exact v. Its kind of but thats awful close to a v. I was going to mention on masks, you dont want the valve on the n95. The valve is bad just as a what . As a clarification. I diplomat realize this until a couple days ago. The valve, up how theres a valve on some of those n of my 95 masks yeah. It protects you but doesnt do what its supposed to do, which is protect the other person if my mask is protecting you and your mask is supposed to protect me f you have a valve, it doesnt work its not protecting me its protecting you but it doesnt protect the other people. If you have it the problem is there arent enough of these masks to go around its kind of like beggars cant be choosers. You take the mask you can get. Some states are now going to block people from using those kind of masks. I have one of those and i have have you sneezed in one . I have want. No. I did and i was in a place where i couldnt take it off twice. And its its bad. Im just thinking of other places you could never mind but its like dutch oven. And i wasnt finished it was in a walgreens. I had to check out im like you know, because its anyway coming up, were going to talk about doing business in china and the postcovidworld amid new tensions between chinese and american governments. Take a look at some of the biggest premarket gainers in the s p 500. Pretty big gains in the oil patch this morning with a three handle on crude again. Coming rhtacig bk. These days, its anything but business as usual. Thats why working together is more important than ever. At t is committed to keeping you connected. So you can keep your patients cared for. Your customers served. Your students inspired. And your employees closer than ever. Our network is resilient. Our people are strong. Our job is to keep your business connected. Its what weve always done. Its what well always do. Good morning welcome back to squawk box right here on cnbc take a look at u. S. Equity futures on this monday morning about three hours before the open dow would open up about 276 points higher. Nasdaq looking to opener high, about 62 points. The s p 500 looking to open about 31. 5 points higher joe, over to you. China is open for business, more so than in recent months. But the tensions with the United States are complicating relationships at a time when Companies Need customers joining us is jim mcgregor, chairman of the apco Greater China region and former chamber of commerce in china jim, i think you havent changed your viewpoint even though a lot has changed in the world youve always sort of, i think, this had perspective and i think the easiest way to just summarize it is to say that you got to keep your friends close and your enemies closer, i think is the way you would describe our relationship with china. We need to engage. We cant if we decouple, it makes us less likely to be able to compete and win, which is what we need to do decouple from china and they have to realize americas leading companies, our best Tech Companies have the biggest market share in china. They have to be in that market, whether we like it or not. Ten years ago might have been different. Not today. You also have to realize, china wants to replace those companies in that market over time so, companies have to go in with both eyes open and i think they should use china to beat china. In china, make your profits in china and then bring that money home and innovate here also, we could learn from china. They studied every technology of the future theyre putting a lot of money into it. We should try to do the same thing. We should we need some industrial strategies in this country. I know rubio is working on some and other members of congress are. Its time to just kind of wake up and get our mojo back and quit whining about other people doing things to us. We have been making this or at least asking the question, given some of the really harsh rhetoric between the two countries, especially some of the things the Trump Administration, some of some of the hawks in the Trump Administration have been striding about their comments about china but they dont take it as far to say, we should that we should get rid of the deal that we agreed on, the trade deal or not negotiate future trade deals everyone seems to understand that both countries need oech other, but that certainly doesnt mean were not going to at least expect something from china, whether its i dont know remuneration of some type or maybe, you know, just some type of mae culpa down the road yeah, chinas about as good at admitting what we did as we are. Theyre covering up their mistakes in the virus that infected the entire world and just powering ahead. I can tell you in business theyre feeling very vulnerable. They have never been so nice to foreign countries. Mayors are going into Foreign Companies saying, what do you need how can i help you theyre feeling vulnerable so that is the time to really move ahead. This week could get ugly because friday the administration came out with this foreign direct product rule, which basically prevents high silicon, a chip Company Owned by huawei, from being able to get its chips manufactured because theyre done on america equipment with some American Design in doing so, this is a real shot across the bow, and the Chinese Government will respond. They have this thing they started a year ago or started talking about called the unreliable entities List Companies that cut themselves off from the market, even if theyre responding to their own government, will be liable the wording says, organizations, companies and individuals. So foreigners running Tech Companies in the u. S. , im sorry, in china, could be personally vulnerable. Theres a big worry on this. Do you believe that hacking goes on where even with vaccines and therapeutics, that china would really attempt to steal that info so that they could use it for i mean, when you hear the administration say thats going on, you dont doubt thats part of it alls fair in love and war, you figure thats okay no, i dont think thats okay at all i wouldnt doubt its happening. Remember, china has a very, very concerted Hacking Program that is outrageous, involving the pla and others but theres allot of free hackers in china seeing what they can get or sell or impress the government whether this is a direct government thing going with the vaccines, i dont know but i dont doubt its happening. Becky jim, we have a representative from huawei coming on a little later this morning what questions would you have for him . How are they going how are they going to move ahead when theyre when theres tension with the u. S. . Their business is very good and very strong. But how do they how do they prove theyre trustworthy . We dont even know who owns that company. They have if they want to move ahead, they have to get transparent. We appreciate it. Well check back you havent been back recently, obviously, but any plans to sdmooin. Well, the border is closed right now to foreigners, even those with visas i probably wont go back for a while. I got my passport expiring in the u. S. Passport office is closed and all of this im going to be youve been trying to figure out what to do with the dmv. It was a scene that anyway, jims gone but that was a scene before the pandemic that was a sevenhour scene at the best one in new jersey just trying to and now nobodys been able to do anything for 2 1 2 months. What is that going to be like . What is that going to be like . To try and go in you could take your weeks vacation and find out. Really. You might need a tent outside to set up anyway, thats what were looking at be careful what you wish for if we go the bernie route, everythings going to be like that, andrew we dont need that when we come back, we are learning more about jcpenneys plans to emerge from bankruptcy. Details next. Lets take a look at some scenes from yesterday from states reopening for business across america its not pretty good or nothing. Its not acceptable or nothing. And its definitely not close enough or nothing. Mercedesbenz suvs were engineered with only one mission in mind. To be the best. In the category, in the industry, in the world. Now, get 0 apr financing up to 36 months on most models and 90day firstpayment deferral on any model. Mercedesbenz. The best or nothing. Right now, there are over a million Walmart Associates doing their best to keep our nation going. Because despite everything thats changed, one thing hasnt and thats our devotion to you and our communities. Our priority will always be to keep you and our associates safe, while making sure you can still get the essentials you need. Confident Financial Plans, calming Financial Plans, complete Financial Plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. Welcome back, everybody. We are learning more about jcpenneys plan to emerge from bankruptcy they plan to spin its properties into a separate real estate company. It would then look to sell as much as 35 of that newly created company to raise cash. Its also planning to do sales and lease back deals for its distribution centers, which would help it raise even more cash from that obviously, a lot of questions swirling about this. And the real estate, even the question of how much that real estate would be worth. Andrew thanks. Yeah, its a big, big question were going to talk a lot more about retail later in the program. But when we come back, we have some exclusive new survey data on the state of the American Worker well talk about it right after the break. As we head to that break, take a look at the price of crude right now. Wti trading at 31. 84. Good news is its not in negative territory like that crazy day a couple weeks ago well be right back after this welcome back to squawk box this morning cnbc has exclusive and extensive data on the state of find it of mind of American Workers rahel solomon is here. We have the survey monkey work force survey. Reporter hi, andrew. We surveyed 9,000 working americans. Workers are happier, more satisfied with their jobs than they were before the coronavirus. With millions of americans filing for unemployment every week, perhaps it should come as no surprise people are grateful to have a job. When it came to job security or how confident people felt about holding on to their positions or keeping their hours, the answers vary significantly based on race and industry so 61 of asian workers describe feeling very or somewhat worried about losing their job next was hispanic workers at 57 . AfricanAmerican Workers came in at 49 the Unemployment Rate for africanamerican and hispanic workers, the Unemployment Rate for asians at 14. 5 was slightly better than the average, which was 14. 7 which makes you wonder whats prompting asian workers to fear job security in the midst of this pandemic those in advertising and marketing were the most concerned about losing their job as the head of automotive workers and hospitality and tourism whmpt it comes to those working from home, 44 are happier now than they were before the pandemic. 32 of nonremote workers are more satisfied and happier than going into the office or working at all, andrew. So interesting, rahel thank you for that were going to continue this conversation right now i hope you got an opportunity here to some of that data. That information absolutely jives relative to other organizations for certain. I will tell you inside freddie mac, we take pulls surveys theyre very encouraged by the actions taken during the coronavirus. Furthermore, people are also very engaged and continue to work towards our mission and making home possible whats your sense of productivity from the home in this new work from home life some of us are at least trying to live. Yes, remote work is fascinating. Literally overnight we all went from being domiciled from within four walls to having to work from home simultaneously with being work from home parents, home schooling children. Freddie mac has taken any number of actions to ensure that our folks have what they need to be productive at home for example, each of our employees have a stipend developed specifically to support their purchase for equipment need today do their jobs we recently migratedto Microsoft Teams which has literally changed the game in terms of our effectiveness and continue communicating on a regular basis. We have included expanded leave options for our folks. If an employee needs to take an hour or two out from the day to home school, attend to a home care issue, they can do that weve also made it clear to anyone who contracts the coronavirus or supports a Family Member who has, that they have unlimited sick time they can take trying to remove the friction associated with the virus in order to make sure we remain producti productive. Jackie, on the other side of this pandemic or whenever you think the world is going to go back to some semblance of normal, when are you going to open your offices . What is that process going to look like . Are you going to continue to own all of the real estate you have, office space and stuff does it change fundamentally to you in the future . Yeah, thats a great question i think the reality of the situation is on the spectrum theres always a spectrum in terms of employees and how theyre adapting to the evolving mix. On the one hand you have individuals who from day one say suit me up in a hazmat suit, im ready to come back to work on the other end, we have employees who say we have engaged in this remote experiment, why do i ever have to come back to the office our goal is to prioritize the health and wellbeing of people while simultaneously fulfill working from home. I think the workplace is different. Most individuals have to prepare for the reality of temperature checks density is going to be something on the other end of the extreme. Maybe before youre sitting in a cube three feet from each other. Well aim for social distancing to ensure thats no longer the case staggered entry to the work face might be different if you have a cafe, you may have enjoyed an open salad bar. In the new world well have to adjust to Contactless Food Service as an example. We are experimenting with a lot of options to ensure that we, one, prioritize the health and wellbeing of our people and ensure the health and safety of as many people as possible. We wish you a lot of luck throughout the next weeks and months thank you so much for joining us this morning joe, over to you andrew, thanks. Coming up, we have a newsmaker next well talk to an official from huawei the companys chief Security Officer in the u. S. Will join us next u. S. Equity futures are solid. Still up almost 300 on the dow coming right back. Tempurpedics mission is to give you truly transformative sleep. So, no more tossing and turning. Because only tempurpedic adapts and responds to your body. So you get deep, uninterrupted sleep. During the tempurpedic summer of sleep, all tempurpedic mattresses are on sale the story where the chances are low, and the cost is high. The sacrifice is real. Its all around us. But this isnt a story about how tougher times beat us. This is our comeback story. The time when we rally and come from behind. The time when we defy the odds and get back to work while the whole world watches. Yeah, this is your comeback story. And when its time to come back, well be ready. Futures higher starting the week reacting to fed chair jay powells comments on the impact of growth. Reaction from Mohamed El Erian is ahead. As u. S. china tensions grow, selling chips to huawei could be a blow for the chinese tech giant. Well hear from the companys securi security owner of cinabon, auntie annes joins us to talk about the reopening of america the second hour of squawk box ends right now good morning, welcome back to squawk box right here on cnbc good morning to you on monday morning. Im Andrew Ross Sorkin along with becky quick and joe kernen. Equities looking like well open in the green up 319 points nasdaq opening up 81 points and the s p 500 looking to open 36 points higher. Joe . In spite of tensions rising between the u. S. And china, beijing arguing over the week end the Trump Administrations new restrictions on exports targeting Companies Including huawei may threaten the Global Supply chain eunice yoon has more hey, eunice. Reporter hey, joe. When it comes to huawei, the Commerce Ministry said the u. S. Is a becausing its export controls and that this is a threat to global production. Huaweis chairman also today weighed in with some comments at an Analyst Event that the company held at its headquarters saying that the u. S. Decision and role changes are arbitrary and also that this is going to impact the business. Essentially what happens is that this tweak by the Commerce Department makes it a lot more difficult for huawei to source u. S. Design chips, even if theyre made by nonAmerican Companies such as taiwans semiconductors the nikkei newspaper, which is a japanese newspaper, has been quoting sources as saying tsmc was going to have difficulty and stopped new orders from huawei taiwan is also set to become a point of contention between the u. S. And china even further this week because currently the world health assembly, which is the decisionmaking body of the world health organization, is holding a virtual event. President xi jinping spoke at the opening ceremony, hes speaking right now saying really presenting china as a very responsible player saying over the next two years, for example, china is going to contribute 2 billion to countries that are struggling with coronavirus he also said that one when china has its own vaccine that china would share that vaccine with the rest of the world. However, what everybody is watching is what is going to happen when the countries go to vote, whether or not taiwan, which is chinas rival and some of that island that china believes is part of china and not a country, whether or not china taiwan is going to be allowed to become an observer in the world health organization. The u. S. , as you guys know, has been pushing this idea taiwan has done quite a good job and has earned a lot of kudos around the world for its ability to contain the coronavirus beijing very much opposed to the idea of taiwan having any status that would make it look as though its a country in and of itself and not part of china eunice, thank you for that report were going to continue this conversation about huawei in its First Official response to the move huawei called it, quote, arbitrary. They said its business would be impacted joining us is andy purdy, huaweis u. S. A. Chief Security Officer. Good morning to you. What a 72 hours you must have had. As i see the challenge, and i think we all see the challenge for you, right now the United States doesnt trust the Chinese Government there is a trust problem and this pandemic has only made that trust problem worse. At the same time, huawei is viewed inside the United States, rightly or wrongly, as being part and parcel of the Chinese Government so the question is how do you, andy, huawei, separate itself to the degree it can, this goes to the issue of transparency, effectively separate yourself and prove to the world stage that you are somehow completely and utterly independent from the Chinese Government well, there are really two things at work here, i believe the first is these negative actions by the u. S. Government, the most recent escalation is going to impact american jobs much more than its going to impact huawei. We are prepared to discuss with the u. S. Government measures that have been taken in a number of other countries we can implement policies, processes and technologies so we can prove neither our products nor our employees are subject to the undue influence of the china government we can talk about some of the specifics that can be done, including independent testing, independent monitoring that can achieve this result. Thats the fundamental thing is to make sure that risk is addressed, and were prepared to do that. Andy, but i think the issue isnt so much necessarily that this can be solved with tests and independent auditors, i think this goes to a control issue. Who fundamentally has control of this company at any given point, and even if technically today the Chinese Government is not using your services in ways that the u. S. Government might think is nefarious or otherwise, that they could in the future and that that is ultimately what poses the biggest problem. Well, i think theres no question that that is the concern of the u. S. Government, and as of about a year ago many more government officials were saying its not about the company, its about the country. So my point is while it sounds like a kind of technospeak to talk about the technologies that can be done, the issues of control, if we can prove there are no back doors in our products, then we can prove the Chinese Government didnt force us to putback doors into the product. If our employees are not allowing access or sharing network or personal data with china, we can prove china is not forcing us to turn over data so the question of control can be addressed regarding those two fundamental issues that the u. S. Is worried about let me ask you this one of the things that the commerce secretary said on friday was the idea that huawei was continuing to use effectively u. S. Ip in its products how do you respond to that the the restrictions and the rules, we believe that we have been following quite closely. So the u. S. In a number of measures, you know, heightened by this most recent announcement of the new rule on friday are to further tighten what the rules are that we are forced to play in so we are complying in our view with the previous rules and we will comply with this rule and thats whats going to make it tough for us and, frankly, its going to make it very difficult for the u. S. Semiconductor industry. Let me ask you this, how would you feel if the Chinese Government were to retaliate on your behalf against an American Company like apple i think escalation is one of the biggest things that weve been seeing in the last year, year and a half. And you see it in the tariffs, the titfortat. Escalation is not a good thing i strongly oppose the idea of putting restrictions on apples ability to do business in the United States or the ability of American Companies to buy technologies from china. We have to talk about these issues we can resolve these issues, and we should try and do it now rather than waiting 30, 40 years from now than having a huge impact on the United States. Thats unnecessary. Let me just ask you you said its going to have a huge economic effect on the United States. How are you seeing that effect well, the first part of it is you look at the entity list, the restrictions on the ability of now about 150 billion American Companies to sell to huawei. That will be exacerbated by this new foreign product rule we cant see the exact numbers, but the estimates using econometric models, when you talk about the 12 billion we buy from American Companies, that translates to 40 or 50,000 american jobs. Last year we spent more, 18 billion. The projection Going Forward would be about that amount right now only 100, 150 American Companies have been given permission to sell to us leaving 150 American Companies that want to be able to sell to us those jobs, if were not allowed to buy american products, were going to be forced to go elsewhere. It will take us time to get to that point and well be harmed as a result. We were harmed 12 billion last year because of this were going to be forced to go elsewhere, and the jobs arent going to come back we wont be coming back later to american technologies. American companies will not be able to sell those technologies to anyone else to make up the difference. Andy, its a longer conversation and a massive debate we hope to continue this dialogue with you. We appreciate you coming on this morning and sharing your perspective. Youre welcome. Thanks, andy. Becky, over to you coming up this morning, what businesses can learn from Health Care Workers when it comes to keeping workers and customers safe thats next. Right now though as we head to a break, apple releasing new guidelines as it prepares to reopen 25 stores in the u. S. This week. The tech giant saying it will require customers to submit to temperature checks and Wearing Masks before entering stores apple says it will provide masks to customers who dton have one. Squawk box will be right back. This is decision tech. Find a stock based on your interests or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Welcome back, everybody. As 45 states have begun reopening, questions remain about how to do so safely. Writing in the new yorker a doctor states that new yorkers can learn from hospitals where Health Care Workers have been reporting to work. He is the staff writer for the new yorker. And a surgeon from Brigham Womens hospital thank you for being with us. Delighted to be here. So what advice would you give to businesses as they start to try and get back to some sort of normal operations . Well, i think the key thing, my Hospital System has 75,000 workers, for example 50,000 of us have turned up for work in the last month and we have prevented the hospital from being a site of transmission theres been a basic approach. Like a drug cocktail the four elements are hand hygiene, screening people for symptoms, masks and social distancing at work each of them are imperfect, but you put them together and you get a youre able to shut down the virus the critical part of it is adding to it culture culture means being committed to the idea that were all doing our part to avoid infecting one another. That may be the biggest question a lot of people have. Youre only as strong as the weakest link if you see people who arent washing their hands, if you see people who arent wearing their mask, that has to make people pretty nervous how do you make sure everyone complies its a its a challenge, right . So the challenge is that our culture, our discussion in American Life right now is about freedom versus safety. Leave me alone or keep me safe its all about what other people need to do we overcame this in the Health Care Sector by saying i want to come to work every day never wanting to infect anybody else i never want to cause someone else to be in the morgue in order to build that culture, you partly have to make clear that you are the risk. We have hundreds of thousands of people who have infection. They dont know it we spread it the dynamics of this virus is we spread it without knowing t and that critical capability means that we have to be able to talk to one another, say, hey, dude, your mask isnt up then say thank you this isnt about you protecting you, you protect me and i will protect you. Doctor, its andrew sorkin. We were talking about this issue in the last hour because we were talking about masks. I know you were a major proponent of masks, n95 masks we were talking about the valve. Having a valve on it undoes that protection and makes it almost worthless. How do you change the psychology there are so many people you walk into a store and there are reports over the weekend of almost battles that seem to be taking place inside these stores because you have customers that are Wearing Masks, customers that arent Wearing Masks. Customers not Wearing Masks asking others to take them off and people wearing the masks telling other people to put the masks on this is it going to being a big issue. It can be done in a work force but in a larger setting it becomes more complicated yeah. Two things to understand first of all, the numbers seem to indicate that you dont have to be perfect. If we can get over 60 of us Wearing Masks that are 60 effective and if you have a double layer cotton mask that well fitting, thats 60 effective. If we do that, we can shut down the virus. Its all about most you know, the vast majority of us constantly Getting Better at putting these pieces together. Yes, there are going to be people who dont want to wear their masks, just like they dont want to get their vaccinations, but above a certain level. It doesnt have to be perfect. We can create the change that is about a culture that we can all say to each other, hey, man, can you protect me . Then if someone wants to be confrontational about it, you back off we are all learning. Im impressed Walking Around on the streets, people are Wearing Masks. Different from community to community. The ones that will see the burst of infections, guess what, theyre going to change. This is about us learning, not about going becoming vigilantes with each other, but about building a way that we are actively interested in preventing infecting one another, infecting our parents, infecting anybody who could really die from this doctor, how long do you think before well understand if things are going to be okay as we come out of it . Do we need to look two to three weeks as people start to open up, businesses start to come back do you need to look four, five, six weeks down the road . Okay, things are really okay at this point and its safe to come back out we dont have a great leading indicator, right the frustration about the coronavirus is that as we open up, its going to be two weeks until we see the cases emerge, the spike in the tests and then another two weeks until you see hospitalizations turn out. However, the best signs one of the critical components of this is looking for whether people have symptoms its really important that we all understand, you could have what seems like a cold, it could be sniffles, and youve got to stay home. Ive been totally fascinated by the internet thermometers. Theres one Company Called kinza. If you go to their website, you can track where fevers are emerging thats a very early indicator where people are starting to have symptoms. We need to in our workplaces and when you go out in the public, be check being ring have you had a new fever, sore throat, runny nose those are indicators that two, three, four days later you are worse and you have the disease you want to stay home. Those are early indicators for a business as well you have to ask people every day, and if you start seeing that the number of people who are creeping up with having the symptoms, those are climbing, thats an indicator that you may well have a problem. Doctor, just in some of the notes in anticipation of you coming on, i was surprised that one said person to person with droplets is the way it usually happens and that environmental is only 6 im wondering when did that become the thinking . Lets say someone that has it sneezes in the grocery store, so those droplets that could be all over the place, those arent likely to result in a spread to someone that picks something up . Thats right. The last three weeks or so the measures of what Environmental Transmission can be, from surfaces and things like that, seems to be low, as low as 6 . Its not a precise number, but its clear, the majority is airborne social distancing is important most of it is prevented by staying six feet away from one another. When you sneeze, cough, talk, breathe you are putting out respiratory droplets 6 feet isnt like a viral law. There isnt a stop sign that viruses cant go beyond that sneezing is the worst. It can spread well past six feet, ten feet we all heard about the choir case in Washington State where one person who was infected ended up infecting an entire chorale. More than 45 out of 6 o people got infected in a little over an hour of practice so the core of it is that we know that the droplets tend to stop within that six feet, but you want to wear the mask because that helps stop your droplets from spreading. Extend the interview a little bit, doctor, i had one question. Lets say one person gets Antibody Testing and they have a fairly faint line but shows they were definitely exposed. Was there a time in there when they had been exposed when they were absolutely contagious if they were completely asymptomatic and now have antibodies, was there a time they could pass it on . Is it possible they were not only asymptomatic but didnt have enough viral load to ever be contagious . Do we know yeah. So very likely the people who are testing positive for antibodies had active disease. We know that there are some people who never became symptomatic, and were trying to find out how many they are however, at present, you know, we do know before you develop your symptoms, before you develop cough and all those things, at least two days before you are at the peak of infection and ability infectivity and the ability to spread. But if you go from the pre to where you exhibit symptoms, does that mean that you were contagious then . At present we dont know so two examples most kids who get infected have the same viral load it looks like as adults but never develop symptoms thats most kids we dont know how much they are how that works is still to be understood. Doctor, you recently took the role as chairman at haven rather than the ceo role. Haven is the operation between Berkshire Hathaway, jpmorgan and amazon to try to tackle whats happening. Why did you take the chairman role and how are things going at haven right now . Im delighted to be able to take this role which allows me to focus on strategy, being externally active on covid19. Were focused on more than 1 million workers and their families we have a number of tests and strategies underway. Were evaluating them now. Its the effort to turn the titanic of a Health Care System and were making Good Progress and well be reporting out on what we learn as we go along drp atul gawande, thank you glad to be here. Coming up, we have Mohamed El Erian and hes going to talk about at least touch on fed chair jay powells comments on the economy, expectations for a bounce back. Hell join us in a couple of minutes. Futures remain higher this morning, up 315 on the dow 82 on the nasdaq ght expected if it were to open rinow, up 35 points. Well be right back. Clean is a feeling. Its the satisfaction of upgrading to a bidet seat, just like that. And the simple joy of washing your hands, without ever touching a faucet. We think its the Little Things that matter. And we know you do too. Thats why we create moments to feel kohler clean, every day. And their financial wellbeing. Since our beginning, our business has been people. Its evident in good times, with decisions focused on the longterm. And crucial when circumstances become difficult. That continued emphasis on people our advisors, associates, clients and communities gives us purpose, strength and a way forward. Today. And always. Kevin hassett joints us. Were back after this. At leaf blowers. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. The countrys big three automakers slated to restart production today, but getting this industry up and running isnt as simple as flipping a switch in detroit. Other critical auto hubs may not be ready just yet. Phil lebeau joins us with more hey, phil. Hello, phil. We promised phil lebeau. We dont see him, we dont hear him. All right. So lets were going to effort to get yeah, i know. I hear i got people in my ear anyway, lets get to Mohamed El Erian. The dow futures are up this morning. Investors digesting new comments from fed chair jay powell expecting an economic bounce back on 60 minutes last night he was asked if there was more the fed needed to do listen to this, mohamed. Theres no limit to what we can do with these lending programs that we have. Joining us now with more, allianz chief Economic Advisor Mohamed El Erian this was a little bit puzzling to me. He was just appointed lead independent director of under armours board do you jog a lot do you have under armour clothing are you wearing under armour anywhere on your person . I have my under armour socks on and ill wear more as soon as i get off and take off my tie, yes. Do you still have time for this are you able to come on cnbc youre lead inindependent director. Ive been on the board for two years, joe ive loved it. Great company. Amazing teammates and im looking forward to continuing to work with them. All right great. Tactful. So tell me about what jay powell said and what you think. So there wasnt anything new in terms of him saying the fed can do more. It certainly can if it wants what was new is he put specific numbers to a couple of things. One is the death of the contraction this quarter he talked about 30 and, secondly, the Unemployment Rate. When he talked about 20 to 25 you know, that shows convergence now as to how bad this quarters going to be, where there remains disagreement is how quickly the recovery thereafter and how sustained. And his point was that you need things to go well on the health side and the policy side in order for us to have a quick recovery otherwise, to quote him, it will take time for the economy to gather momentum. I think thats absolutely right. Youre a bond guy we ask you about equities. We know how you feel about upgrading quality. Youve made that point again and again and again. We have some individuals, weve got, for example, mike wilson over at Morgan Stanley hes at 3,032. 50 jeff sau thinks well be at 3400 on the s p by the end of this year it makes a difference. You were of the feeling we were going to grind lower, retest the lows meanwhile, weve had a 30 bounce would you be telling people right now to sell this bounce because were headed back to the lows that you thought wed retest or would you say hang on, upgrade in quality and prepare for the markets to move higher have you changed your thinking on the overall ability of the market to go higher . So, joe, we are in the third very distinct phase. The last month weve basically gone nowhere with the s p with a lot more volatility building the last few weeks that follows as you pointed out. Early march the 23rd and then a partial recori. The question now is how long can we stay in this phase . What we need to break higher, thats what youre betting on if you think stocks are going to go up is either a significant improvement in fundamentals. We reopen and we reopen well or policy actions that are meaningful the fed buying a lot more high yield, for example, is a policy action that will be meaningful for stocks or, third, an improvement in the system. U. S. china tensions come down, the Global Economy recovers in a synchronized manner. How synchronized is the pickup if you feel confident about one of these three things, yes, this market goes higher i dont right now. I would like additional evidence and thats why i think the up in quality is a better bet right now given the uncertainties than simply going for a higher index overall. I mean, weve been flat turning around for a month, but prior to that the market was up 30 . I mean, thats three good years. And prior to that we were down even more in terms of no, i understand that of the change. If we stuck down at the lows when the market was down 35 , i mean, there was a time to stop being bearish. There was there was a time when i personally said up in quality, they went up 54 yes, there was a time. The question is im just asking what do you feel were going back to what mike wilson 3,000, 3250 or do you think were going back down to 2500 on the s p . I think youre going to see volatility go up were on a downward trend absent the three structural breaks. This is something you have to update on a daily basis. Meanwhile, if youre up in quality, you get a lot of down side protection and you still get a claim on the up side. Do you foresee negative Interest Rates i saw that theyre in circles where they used to be absolutely eschewed saying absolutely not, now there are at least some people saying, you know, maybe it can happen. I mean, in europe weve seen it. You heent seen the benefits necessarily but there are certain people making the case at this point. Will it happen here . You still dont think so and its not a good idea if you are asking me what should happen, we should avoid negative rates i can keep you for the next half hour telling you why if you are asking me whats going to happen, i tell you i dont know after the fed agreed to buy the high yield index and take on significant default risk, this fed signaled they were willing to do things that are unthinkable. I can tell you i hope they dont happen they will cause significant damage to this economy okay. All right, mohamed where do they have the board meetings do you go to a nice place . I guess youre doing it virtually now probably if in the new normal, where will you be headed asp aspen. That seems like a good place you can really think, really contribute. Thats a good place for you for the rest of us in the old new normal it was mainly baltimore and once in a while in places where they have other outlets, but i can tell you that its mainly baltimore. Okay. Im not going to say anything about baltimore. Great place. Great sports town. Its near pennsylvania. Aspen might be a little bit might have a little edge on baltimore no, im not even going to say that because i love the orioles and ravens. Joe, you can stop at penn on the way down from new york to baltimore. Philly and baltimore versus aspen. Lets leave it at that thank you, mohamed andrew thanks, joe. Meanwhile, shares of moderna spiking on positive vaccine trial data company ceo will join us right here on squawk box live after the break. Well discuss the reopening of america and what malls will look like with the ceo of focus brands well be right back after this vo our communities need help like never before and wells fargo employees are assisting millions of customers across america through fee waivers and payment deferrals, helping people stay in their homes through mortgage Payment Relief efforts and donating 175 Million Dollars to help hundreds of local organizations provide food and other critical needs. When you need us, wells fargo is here to help. But when allergies and congestion strike, take allegrad. A nondrowsy antihistamine plus a powerful decongestant. So you can always say yes to putting your true colors on display. Say yes to allegrad. At mercedesbenz, nothingors service will do. Class thats why were expanding your range of choices. Many dealers now offer optional pickup delivery and athome maintenance, as well as Online Shopping with Home Delivery and special finance arrangements. So, whether you visit your local dealer or prefer the comfort of home you can count on the very highest level of service. Get 0 apr financing up to 36 months on most models, and 90day firstpayment deferral on any model. Breaking news from meg tirrell. Meg. Reporter hi, andrew. Really major news from moderna i think these are the first human data were seeing on a covid19 Vaccine Program and the positive news. The phase one trial, it observed that after two doses all patients in the trial developed antibodies to the virus. They observed a dose dependent response the higher the dose, the more the vaccine elicited they evaluated eight patients whose data were available showing they developed neutralizing antibodies. Across the study they observed antibody levels were similar to or higher than those who recovered from covid19. Theyre looking closely at safety and it looked safe and well tolerated in the study and theyre pegging july to start the phase 3 trial. Becky . Meg, this is incredibly important. Im watching the futures you can so he moderna shares up by 20 on this news. The futures themselves are picking up this is the thing that so many people have been waiting for, hearing the potential for a vaccine and seeing in this phase one study that it actually seems to be working is amazing news. Were going to continue to watch those very closely joining us right now to talk more about all of this is Stephane Bancel. Incredible news. How many people were involved or are involved in that phase one study . Good morning, becky thank you for having me. The first course of healthy adults 18 to 55 were 45 subjects we decided niad, the government, 55 to 17 and as meg said, this is very exciting data. Its data with phase one still going. If you think about where we sit today with the data that meg described, we could not be happier. Were there any side effects or any ill effects its very typical to a vaccine. You have two type of side foekts, becky. The first one is local pain. As you can understand when you inject a needle in somebodys arm, it is good so you have pain when you press on the needle, the volume of liquid goes and creates harm into your muscle cells. So its a bit painful. You have sometime for people with a bit of redness around the site of injection for a day or so again, immunologists tell me its a good sign see some immune response then on the systemic level you have a few subjects that achieve at the end day, a couple of people, tiny bit of fever like when you get a flu shot, it goes away by itself. Tylen tylenol, go to bed at night, next day you are on your feet again. This type of observation has an immune response. Stephane, lets talk a little bit about how long ago these people were injected with the doses as well. People have a question about it. Theyre getting related symptoms how long ago do they take place . The first subject were injected on march 16 if you think about the sentinel dose we reported neutralizing antibodies it combines and neutralizes the virus. They were injected in march and one we are monitoring of course safety very carefully. We can have safety because vaccine for people we put some into the elderly, some into viruses like rsv which has been in the past 40 years ago. We tend to believe there should be a disease with this and again we want to be safe. So, stephane, whenever were watching a drug progress flew the clinical trials, its always hard for laypeople to understand the difference between phase 1, phase 2, phase 3 were in phase 1 or phase 1 phase 2. Were thinking its just safety. Trying to measure safety, dos e dosage, things like that you are reporting at the same time evidence of efficacy. Eight out of eight develop neutralizing antibodies. The phase three that is a test for efficacy, how is that different . It will be a much larger study, i guess. Youll be looking for basically the same thing you just told us, right . You want to see neutralizing antibodies in all the patients that get the vaccine without side effects so is this that different than what youre expecting to see in the phase 3 . Will that just be a confirmation so a bit of work, joe the first thing is safety. So phase one typically vaccine in the tens of subjects. U. S. 45 here phase two in the hundreds. Phase 2 will be 600 subjects well look at immunogenicity phase 3 will be many of thousands. Once we will finalize a protocol, we will communicate it in phase 3 we monitor neutralizing antibody. Efficacy, this is a blessing for the study. This is going toward to see people get the vaccination just before we get the placebo. How many people can you protect from the disease and get an efficacy rate to be able to find it assuming a good outcome for approval stephane, its meg terrell. You did see fever in a few of the patients can you tell me how many patients experienced fever in the city you observed so far im getting feedback from folks very closely focused on it and they seized on it that some folks might receive a fever from a reaction of the shot. You saw very few cases at the second dose, the highest dose, 250 microgram. If you recall when we started this program very quickly, 60 days from sequence of the virus, we didnt have time to do enough preclinical work we did preclinical work but not enough you have to really understand the vaccine. We put a very big range. 25 microgram, 100 and 250 just not to miss efficacy because we were running against this virus. The time was very precious from what weve seen today of the neutralizing antibody, 25 and 100 micrograms, at or above people recover from the virus, we dont need the 250 dose that is the second dose at the boost, the highest dose. This is typical from too much of an immune response lets you know how strong the 25 micrograms is. Its not surprising that 250 microgram, thats a lot of antibodies they are making stephane, just the question again, this is amazing to see the efficacy that is taking place in this and i think thats why youre now looking at the dow up by more than 420 points just the idea that you need any doses. What does your time line look like has it changed at all from when you were getting the phase two approvals from the fda so we are working on process and we extend and grow up to a billion dose per year. What is clear is with this new data we have growth at the end of last week. Were going to increase our investment in capital equipment, in raw materials. Healthy young adults, elderly with comorbidities. Well focus by reavwaves of vaccination. If several vaccines have a chance to get to approval, we have a chance to significantly impact the reduction of detection and disease and go back to a normal life. Your stock is up 30 on this news this morning. Year to date its up 341 . Where are you getting the money to make additional investments as you know, becky, we have a strong balance sheet, 1. 7 billion at q1 earning call a grant from the Gates Foundation so we have partners. The companys in a great place to invest. Just to that point though given where the stock is, you think about making a billion of these doses. What do you think the price can even be and what the profit margin should or shouldnt be given these issues yeah. So we have not spent too much time working on price. As you can aappreciate, going from sequence, we have no time to do anything fwhau and the team has been working literally seven days a week. We need to start thinking about pricing. As you can appreciate, were going to be dealing with the pandemic people are waiting for the product. We just have to figure out whats the right price. Again, incredible news. Thank you for joining us to talk about it we hope to have you back soon as you get more updates and more we can learn. Your stock up by more than 26 this morning as were watching the dow which was up by 270 points at 6 5ua. M. When we started, right now the dow is up 470 points so many people are waiting on the idea of a vaccine, a vaccine that works and that kind of being the key. Jay powell said the economy might not get back to full speed until we get promising news. Stephane, thank you for being with us today. Meg tirrell, thank you, too, for being here as part of this stepha stephane, well see you soon. Thank you think about it. Moderna market cap 7. 5 billion. 32, 33 billion company a lot riding on it so i dont know what the margins will be big expectation theyll make a profit its even more if you look at even more important is what you see in the dow. The overall idea that as we make progress on this, i mean, forget about the market cap that it just added to it on the dow, if you are looking at companies that you say when can we get back to work, how do we make people willing to start flying on airplanes, getting on cruises this is it think of the naysayers with the 18 months who are never getting back to normal when you knew that moderna had eight candidates or nine candidates, they had proof of efficacy in the way that they developed the mrna vaccines, they had done it with some of the other diseases where it probably wasnt that much of a leap in faith to believe that science with where we are right now was going to have some success in doing this. The idea that were never going to get back to normal, lets you know, theres happy talk but theres also realistic talk about where we are in terms of science. Andrew, you dont need to can i be fabulous no, no. Just be happy today i mean, i know it might not work no. No could it be fabulous for the economy, which i hope. Could be fabulous for our health, which is paramount the question i was raising is and especially since weve had the ceo of j j and others come on is when it comes to how profitable its going to be for any of these Companies Given some Companies Like j j, if their vaccine works, theyll do it effectively as a not for profit operation by the way, i would pay a fortune for this vaccine, as i know so many others would. I think its going to become a hot potato politically, not just in the United States but across the globe. I hope we have those problems i hope those are troubles we have to work our way through it beats what were dealing with right now. I have to say, remember, Stephane Bancel talked to us in davos. I ran into him at a breakfast i was at in davos, he told me in mid january, mid to the third week in january that they were working on this. Its been so long theyve been working on it and keying that stock up 326 its amazing to see what happens. There are other respiratory viruses that are rna viruses, mrna viruses the proof of this technology seemed to be there so it is great and its not done and, you know, meg pointed out some things. Its only phase 1, phase 2 you have to make a lot yeah. The state of what we know now about all of this stuff compared to 10, 20, 30, 100 years ago, were just head and shoulders above. I feel better than i did 20 minutes ago. I feel better than i did 20 minutes ago. Therapeutics. We ought to be able to do an antibody in combination with an antiviral that might work, too this is what we have coming up becky, you do it. We do, we have another big hour of squawk box ahead advisor to the president , Kevin Hassett will join us dan niles of alphaone Capital Partner is going to be talking tech senator gary peters of michigan and former nec director gary cohn will be here as well. Take a look at the futures youre going to see dow futures up by 470 points we started the morning already up some green arrows up by 0 in1227pots eems like yous operating just fine remotely. Yeah, everything is running smoothly with the now platform. bling see, incident resolved. How did you. Gotta enjoy the small wins. You keep being you, derek. Keep being you. Were going to bring you the latest details well talk all about what businesses need to recover from the virus. First with Economic Advisor kevin has set and Economic National Council director gary cohn 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 adding to gains on the moderna news. Up 520 points on the dow nasdaq indicated sharply up 133 points s p indicated up 57 and change take a quick look at treasury yields and then oil prices also, which had been even before the moderna news oil prices had been picking up even higher. I thought i saw 32 and change. Take a quick look. Ten year at. 662 and lets take a look at oil im reading ahead. There must be a better way to say this 367892 1 4 on wti 32 1 4 one stock right off of the bat can we phrase that a little bit differently. Get bat out of there moderna announced positive data from a phase one study of its Coronavirus Vaccine candidate. No punintended anyway, becky, you know what im saying yeah. No idea, right . This is huge. It is big i didnt know what the news they had was until 90 seconds before he came on our air. It was not what i was expecting to hear. It was better than i was expecting to hear and the stock reflects that. The overall market reflects that the dow is at 540 points they were up 270 points at 6 a. M. I knew stephane was going to be on with meg looking at the way the Wire Services characterized it, it was safe, dosing, got good response. Efficacy. Efficacy, thats what you dont expect in phaseone eight out of eight neutralizing antibodies right right. I dont know, im feeling a lot more hopeful than i was earlier this morning we all go through ups and downs. This isnt to say its going to be a clear shot from here, this is much better news than i would have anticipated. Others are working on the same mrna technique that moderna is working on. Pfizer is like that and other techniques this is a little bit too in the weeds, but because its not a dna virus, you dont need to get the messenger rna into the nucleus of thecells. It can be in the cytoplasm, which is much easier. Blah, blah, blah, blah. It works. This technique works a lot better because its the nucleic acid of the virus, messenger rna, not dna or is not rna. What he said. Its going to be hard to top that news, but we do have a huge hour of news ahead well be speaking with Kevin Hassett. Also noted tech investor, dan niles. Then we have michigan senator gary peters who will be joining us as his state gets ready with many auto employees. We have former National Economic council gary cohen lots more to come and andrew, go ahead and quick things off okay. We are going to start this hour with the strength of the u. S. Economy. Fed chairman jay powell telling 60 minutes last night not to bet against america, but he added that the recovery will likely be long and drawn out Steve Liesman joins us now with more from the squawk news lines. Steve, what did you make of what chairman powell said last evening . Reporter i was listening for powells downbeat assessment on wednesday. Maybe a bit more optimistic than what you said. Chairman said dont bet against america. He sees a second half recovery he sees it lasting through 2021. I was interested in reading the transcript and what was aired. How concerned powell seems to be with the idea of a second wave, potential for a second wave of the virus. The government would have to reintroduce the social distancing measures and that you would have another down turn that would be bad for confidence so thats a risk we really want to avoid reporter so thats something hes really concerned about and hes not saying that places should reopen, just really cautioning people to be careful in this process. Also talked about the need for more aid and wants congress to be ready to do more now. I dont give them advice on particular policies, but i would say, if i may, that policies that help businesses avoidable insol ven sis and that do the same for businesses, keep workers in their homes, keep paying bills, keep families solvent. Reporter so finally he said you guys are talking about it. What he said, for the economy to fully recover people have to be confident. That may have to await the arrival of a vaccine i think what youre talking about with moderna is news to the ears of the fed chair. Andrew hey, steve, what did you make of he seemed to oscillate between saying, look, we seem to be having more that we the fed can do and at the same time pushing congress and at one point said that we really need to have more inclusive prosperity its not something that the fed can really lead on giving as weve talked about before the blunt instrument that is the fed. How do you sort of see both sides of that . No, thats exactly the way to put it the fed can lend to all industries in fact, they changed the Emergency Powers of the fed to make it so that it couldnt go to specific companies. It cant go in and help people who are not receiving this and give money to those who are at the same time. Its a very blunt instrument if Congress Wants to target specific wants specific groups help, it has to target them themselves. It cannot rely on the fed to do specific targeting of specific industries or specific people. So the fed now is in this place where its trying, we talked about this in the past several weeks, to put this main Street Lending facility together to help companies who do 515,000 employees and up to 5 billion in revenue its really, really hard to design this program. I think the feds going to get there, but it is really going to be a difficult job for the fed to do this kind of very specific even though its a broad range of companies steve, thank you. Good to hear from you. Pleasure. Joining us for much more on the economy and some returning trade tensions between the United States and china, lets welcome Kevin Hassett. Senior Economic Advisor to the president. Lets talk about what the fed chair said and what you are thinking about the economy right now. I think it looks to me like the activity is picking up you guys have been covering it and that it looks like it bottomed out about the 11th or 12th of april. The real time stuff that we look at, like the number of businesses open, things like that, its really gone up quite a bit because the economys getting going again. So i think the question is not really like when does the recovery start absent a second wave of the disease its already begun youre already seeing a pickup the question is how long does it take to get back to january, that level of gdp. Definitely youre looking at a very strong third quarter, very strong Fourth Quarter and next year i guess i disagree it will be taking until the end of 2021 we need to avoid bankruptcies with our fiscal policy thats what weve been doing you have the good news about the vaccine play when i first plugged in imagine if, god willing, the vaccine were to come out relatively quickly all of you guys would be really confident that the economy could get going again and the question is how long does it take where everybody is comfortable getting back to work the longer it is, the more jay will be worried. The shorter it is, the more well believe that the stuff we did is enough to get people across the bridge to the other side yeah, chairman powell did say it might take until everybody gets a vaccine, a needle in their arm, for the economy to get back where it is its fantastic news if that happens sooner rather than later. We should probably point out even if this vaccine is moving along as quickly as we think it is with moderna, you are talking months and months, extended period of time how well do you think we are positioned to continue to make sure that some of these unnecessary avoidable insolvencies dont take place . How long can you continue to support businesses and continue to support americans well, the fed and the treasury have a massive amount of money left in their main Street Lending program which is designed to do that for big firms. For small firms, the ppp Small Business loans have a lot of money left there i think the two main projects that we put together, gosh, a couple of months ago to make sure that firms had the liquidity they needed to sort of get to the other side, that theyre still working and they still have money so if the economy recovers slower than we expect, then, you know, its possible well have to put more cash in there. We stand ready to talk about that with congress right now you should monitor data and look and see what are the burn rates of those things frankly, when we do that, were actually seeing a lot of encouraging signs. You know, congress has moved in a bipartisan manner to pass, what is it, three bills weve gotten so far . Sure. The fourth one doesnt seem to be much Common Ground on. There are a lot of ideas about what money should be spent, how that money should be targeted. Maybe one of the big ones people are focusing on is state and local municipalities what do you think about sending money to states and municipalities that are hardest hit . Where the white house is, we are in wait and see mode as we watch and see what happens how quickly does the economy pick up again . How does the money work that we spent. Does it run out . I think were also working closely with a lot of democrats. Weve had a lot of moderate democrats on phone calls where weve talked about their policy ideas. I think that we stand ready to take, you know, very strong action if we need to i just doubt that in the end the product is going to look much like what Speaker Pelosi put out last week. The final thing about that is just we understand that there are a lot of state and local governments that are really running out of money because Economic Activity is so low. Thats a big ask for the democrats. President trump has stated that he doesnt want to bail anybody out but he is willing to study covid related expenses and potentially talk about them. But covidrelated expenses, i guess it depends how you define them if the economy is shut down in a particular area because you have such a high number of cases that are out there and you basically tell people, you cant go to work, you cant go to school, we have to shut this down to make sure that this doesnt spread not only here in this community but beyond this community, how do you measure whats a covidrelated expense if sales tax dropped and plummeted. If you arent getting all kinds of money that you would have been taking from all of these Different Things that would have been happening in a working economy. How do you pay for teachers . How do you pay for Police Officers and firemen weve already given states a lot of money and secretary mnuchin is giving guidance that the covidrelated money could be used to fund first responders. Youre exactly right i shouldnt use the word expenses i should use cost. If there is another bill, people should use what are the real costs and whats happened. Those could easily include what you are talking about. Kevin, you were talking about how the economy does seem to be coming back. Greg had written in the wall street journal about how some of the other things you had looked at like retail visits may be down 50 in april. Now theyre only down by 32 if you look at other things, like people using apple devices, they were down 50 now theyre only down 20 . It does sound like people are coming out and coming back. Thats what were seeing here. What are the metrics you watch to give you the best real time information you know, weve got that. Weve got some private Companies Share their data like their billing data with us so we can sort of see retail activity. There are a lot of indicators we look at. Some of them were not supposed to say the name of the company, its our deal with the company you can track how much foot traffic, retail visits, social distancing metrics to see people are hitting the stores again pretty much the numbers that you mentioned are about what my guess is, that we are about 50 shut off from the beginning of april and were about halfway back right now so of all the numbers that youve seen, what are your biggest concerns in terms of what geographies and in terms of which industries oh, i think the biggest concern, of course, is travel and leisure. If you look at one of the economies thats hardest hit is hawaii and hawaii, i think that the claim about 33 of the labor force is on Unemployment Insurance claims rate now. Of course, there luckily hasnt been a lot of disease in hawaii, but the economic turndown has hurt them. People dont fly to hawaii to turn on. It will depend on a lot of travel dollars will be the states hardest hit even when the economy gets going. Sounds like the rhetoric between china and the United States is ramping up again we had a representative from huawei on. He said if the government goes on, it will be the American Worker who suffers do you have a response to that its something were studying its underway. Huawei is a company that the president and the team have a lot of concerns about and, you know, i think there are probably better ways to get to 5g than using a Chinese Company that doesnt exactly have a stellar record respecting privacy. Youre right the tensions are high with china right now but, you know, i think we just have to wait and see how it turns out i saw ambassador lighthizer was mentioning they had been sticking to the trade deal so far it looks like the deal that we made right before the covid outbreak. Some of the messaging delivered not through one of the state runnemede yas but a media close to the Chinese Government was suggesting there would be retaliation like they would stop buying boeing planes if this went forward and punish Companies Like apple what do you say to that . Yeah. I think its likely if we take a move, that theyll retaliate thats something weve seen over the last two or three years. I think the leverage that trump gained early on really delivered a great trade deal with china and i think you would look at the usmca deal, that is a much improved deal. There are some trade tensions but they brought us to a pretty good place as of january i think the virus is kind of like, you know, a complete reboot of the relationship because theres so many questions that we need to have answered before we can really understand what chinas role was in potentially covering things up and so on its something i know the president is very concerned with. The president has pushed the idea that he would like to see negative Interest Rates here in america. Jay powell to this point, the fed chairman, has said that hes not interested in that we just heard from Mohamed El Erian said he had concerns do you know what it would mean in january we had the strongest economy on earth we had Interest Rates well above zero because the economy was chugging along it created a luxury almost for the fed to get rates up into a sort of safer zone away from zero even with this massive hit were going to have a Second Quarter decline in gdp thats historic in its size. I think the fed has responded really aggressively but they havent had to go into negative rates. My hope is, they start and we all get confident that weve hit bottom if thats the case, probably the fed wont have to do much more with Interest Rates. I dont want to give them advice i respect them. Kevin, thank you. Great to see you. Thanks, becky good to see you, too. Coming up, special interview, very special, with former National Economic Council Director gary cohn on the next steps to reviving the nations economy. Before that, what do the latest tensions between the u. S. And china mean for tech stocks investor dan niles will join us. As we head to break, check out the shares in the first three years according to berkshires first filing thoughts on some of them hit the market in geranel. Youre watching squawk box on cnbc every Financial Plan needs a cfp® professional confident Financial Plans, calming Financial Plans, complete Financial Plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. Theyre all possible with a cfp® professional. Across america, Business Owners are figuring things out. Finding new ways to serve customers. Connect employees. And work with partners. Comcast business is right there with you. With a network that helps give you speed, reliability and security. And enough bandwidth to handle all your connected devices. Voice Solutions Like remote Call Forwarding and readable voicemail. And safe, convenient installation. When every connection counts, you can count on us. Get the connectivity your business needs. Call today. Comcast business. Some of the things weve been doing. Nasdaq up 140 or so. We are up about 300 points prior to the moderna news which came out and that news was simply that in early clinical studies the Moderna Vaccine for the coronavirus and mrna vaccine. And looking at the safety and dosing the candidate seems like its efficacious. Who knows at this point if its still needing to be done, andrew, whether it preventsz you from getting sick. The number of antibodies produced by the vaccine. People who have developed immunity, it said it was equal or higher to or higher than that, then it could be a good sign look, it looks like a great sign we need to know so much more information about how long it lasts. Make it, distribute it. So many questions right happening fast. Yeah. Serendipitous meantime analyst, we love seeing you, dan. Youve been short the mark in lots of ways tell us where you stand right now. Yeah, andrew. We always have shorts. Were a hedge fund so for us weve got three buckets of stocks. Weve got our longs that we like before the virus, during the virus and afterwards things that accelerated by it such as amazon, ecommerce or teledock, telemedicine or gaming companies. Weve got a second bucket that we started to put on in april and those are things we tweeted about disney names that were hurt but that portions of their business so in disneys case, we are not going to theme parks, amusement parks. Streaming business, 55 million consumers. Thats benefitted. They were looking at 60 to 90 million. We bought draft cringes in the casino resort space. Obviously people arent going to resorts and theyre spending more time online finally, we have our shorts where those are names that we think demand has been pulled forward, such as in pcs. If youre homeworking like most of us are, we have kids at home, we bought pcs, were not going to need to buy them in the Fourth Quarter you have a lot of big demand from china because theyre worried about chip supply being cut off. Theyre double, triple ordering so some of that demand will fall off. You have shorts, were always resizing we have a lot of shorts we really like as well. Lets just go back for one second to disney thats been such a hot button of the stock. They have the streaming business which youre excited about they have the theme park business and traditional film business and so much more merchandise and everything else. Is this for you a value play at this point how quickly do things have to turn on. To make that stock work for you, if you will . Well, again, remember, its part of a portfolio of names you talked earlier in the earlier segment and obviously to get people to go back to theme parks, et cetera, its important for people to feel safe, whether theyre getting on an airplane, going into work or the grocery store, et cetera for us thats one of those names where lets say the vaccine does work and before we get therapies that are very effective, thats something where if youll start going back to those events, going into movie theaters, that will really help them out quite a bit. If that doesnt work, that stock will obviously be one. We were short disney starting back in mid february we got long it again after they reported it. Look, were not paying our dividend thats about as bad as you can get for an s p company when they stop paying the dividend its part of a portfolio of names where an amazon, et cetera, if the vaccines arent that effective so thats how were thinking about that name as well as ours. We have facebook in there for the same reason. Its advertising advertising is terrible in a recession, but, you know, people are trying to stay connected so theres a lot more people online using their services so, you know, its part of an entire portfolio of things thats how we made money in q1 in april and so far in may its all of those three. If there was one stock you like right now, what would it be one stock right now i think the gaming companies, really activision, electronicguard and zynga. You dont think theyve run up too high already . Huh you dont think theyve already run up no. No because heres the thing, right . You have a new console cycle coming from sony and microsoft for the first time in seven years so thats going to be really powerful as we get towards the Holiday Season the second thing you have coming is you have streaming services from microsoft, amazon, hulu coming now you can play these video games on your cell phone, your pc, your tablet. Thats 5 billion installed devices versus 150 million game con soles. Those are flames we think tnamee vaccine is good. If you want to buy stocks that should do well regardless of the environment, i think you can have those stocks. Okay. Dan, always good to see you. Appreciate your insights and perspective. Look forward to seeing you again very soon. Thank you, andrew becky. When we come back, former white house Economic Advisor gary cohn will join us well be talking about what u. S. Businesses need when they ge on their feet stay tuned, watching squawk box right here on cnbc. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Getting the industry up and running isnt as easy as flicking a switch in detroit i have the strongest sense of deja vu right now. Phil lebeau, i dont know why. I could have sworn i have done this before. Theres a lot of auto the plants have been shut for the most part for the last seven weeks. When they restart, its going to be a gradual increase in production so its not like they flipped the switch and they go straight to three shifts in a particular plant that had three shifts before, it will be two shifts, one shift and then they are going to gradually increase production General Motors believes theyll be at full production within four weeks ford not as optimistic it depends what happens with their suppliers. Safety protocols including testing will be in place at all of the plants. Thats the good news, potentially good news on the supply side. On the demand side, still hard to know how much demand is going to increase and how rapidly. Overall auto sales remember, this is sales of dealers buying from the automakers, not you and i going to a dealer shop 15. 15 was the pace of sales in the First Quarter. Nobody expects it to be that high they expect it to bounce back in the third and Fourth Quarter by the way, toyota, honda, japanese automakers, they began their production last week they have started bringing more vehicles out that will then go to the dealer ships. Kwun last auto note, shares of tesla as we reported on friday, the company is considering tulsa and austin as two locations for a new plant in the United States no decision has been made. No surprise there. Both centrally located thats what tesla is looking for with the next giga factory when it actually is up and running within the next couple of years. Guys, back to you. All right, phil thank you very much. For more on the reopening of americas auto plants, we are joined right now by michigan senator gary peters. Senator, thank you for being with us. Great to be with you. Thank you. So how are things going rate now . Where do things stand in your state . Well, i think its encouraging. Were starting to see things open up. Last week we had auto suppliers beginning to open up, which was an encouraging thing today as you announced weve got our Auto Assembly plants opening up we want to make sure this is done in a very safe way. The Auto Companies have been working closely with the uaw they put together some very extensive protocols to make sure that theyre keeping employees as safe as possible so we will watch very closely as this goes forward, but certainly people in michigan want to get back to work as long as they can do it safely. We have seen the protests kind of played out why do you think that is are there some areas where people maybe some areas of the state that have been more hard hit than others leading to frustration with those who cant go back to work . There is. Michigan is a very large state so you have different kinds of numbers that come out of different parts of the state the governor has been working with a group of folks in the in business as well as in health care to take a look at how we might treat different parts of the state differently. She actually has different regions and i think in the days ahead you will likely see some movement to open some places versus others, but its got to be done clearly in a thought full way the challenge of always trying to find that right balance of reopening, were anxious to do that when you do something today because from the time it takes for the disease to show itself, youre talking about two weeks before you know what happened. Youre trying to steer a ship here and turn the rudder you know it doesnt respond immediately. You have to be careful about that i think were certainly seeing Movement Towards opening an economy here in michigan as the curve has been flattened, which is all very encouraging. I think were all very cautiously optimistic. We have to be careful about taking the next step i was reading over the weekend about how some plants in mexico may not be able to open because mexico is in a different point of this pandemic than we are. What kind of problems do you think that that could potentially present for the automakers in your state so much goes back and forth across the border because of nafta, the new nafta well, thats right. I mean, we get an awful lot of parts. If you think of the Auto Industry in this country, its a north american Auto Industry trade with canada. Of the three busiest border crossings in north america, two are here in michigan with canada but the amount of auto parts that come from mexico is significant and those can cause supply disruption. The industry is watching that very closely they often perfect raperate a n and they need to have that production to feed the supply chain so that these automobiles and trucks can be made you have written to secretary mnuchin asking him for funds for the auto suppliers why do you think the auto suppliers in particular need access to funds other over industries and what response have you gotten the auto suppliers need cash. They have been shut down for a number of weeks. The previous interview talked about how you cant just turn the switch on, which is true you have to be able to get the auto suppliers up and running. They havent had cash flow they dont get paid immediately. They have to wait until they ge paid they have material costs and up front costs. They are looking for loans their main street loan program was part of the c. A. R. E. S. Act they need to have access to that money. Right now they are frustrated that its not working for them as it should, and certainly not the way congress intended. We wanted to make sure companies that were starting the process of reopening had working capital to redo that if you think about the Auto Industry just broadly, the Auto Industry is such a jobs multiplier and such a powerful force in the u. S. Economy. The quicker the u. S. Economy can come back, that means the quicker the entire u. S. Economy can come back. At the front end are the auto suppliers that were open and started to open last week, started to ramp up their production those necessary parts, they need working capital. Our letter to secretary mnuchin is lets work on what we need to to get these out get the capital they need to fuel the Auto Industry in a way that jump starts the entire economy. Senator peters, want to thank you for your time today. Good to see you. Great to be with you. Thank you. Andrew and joe. Okay. Do you guys know how much the dow is down for the month of may . Month of may . Is it down not down its up. For the month of may its down 6650 points for the month of may for the dow. Really . Its down 660 points. Do you know how much futures are indicated up 660. As of what day . As of the close on the 1st as of friday, i think as of the close i dont know. I can ask peter. Hes been helping me with this month of may for 2020. With the gains that were talking about this morning i think that would put us back in positive territory the s p is going to be 100 points above where it needs for my tacos as we knew it would. When we come back we can talk about tacos and also which way the market is heading, which way the real economy is headed now former national onicecom Council Director gary cohn i am totally blind. And non24 can make me show up too early. Or too late. Or make me feel like im not really there. Talk to your doctor, and call 8442342424. Welcome back to squawk box. Futures are soaring. The catalyst positive data from modernas vaccine candidate. Jim cramer joins us now. Jim, this is why to some degree people say should you be in the market, should you not be in the market if you are not in the market when things like this happen, boy, you can also miss it, too. Right the fabulous investor peter lynch who ran magellan fund, all of his books pointed out there are only four or five days of the year that you must be that create all the wealth so, therefore, you have to be in all year because you dont know what days those are going to be. I think thats something that the traders have forgotten about but the investors understand looking at it this morning its not supposed to be up listening to becky becky, this want supposed to happen its 8 for 8 we know there are a lot of issues, can they scale, can they do the 600, 900 million. The oxford trials failed this weekend. So much between now and when we get to anything. At the same time, look, it could have failed. The fact is when the oxford trial failed this weekend, oh, man, this is just not going to happen then suddenly we got something to hope for. Thats how i feel, becky. Whats your sense, by the way, not just of the broader markets which are clearly moving on this, but how do you think of a company like moderna given there is going to be i imagine enormous pressure on these companies to the degree they are in coming up with this to the amount of profit they can ultimately make . We dont know the stock is up 25 many people are short the stock. I felt if i could buy something at 25, there are a lot of retailers that could do better maybe you want to look at that they reported that this week up 25 is a lot theres always going to be somebody else to cover even higher jim cramer, we will see you on squawk on the street in a couple of minutes, my friend good to see you. When we come back, former National Economic Council Director gary cohn dont go anywhere. Were back with gary cohn after the short break. We should understand the safety of this vaccine thats the size of the study we monitor neutralizing antibody what we monitor is efficacy. This is a placebo control study. Phase 2 is placebo control how many people can yo how many people can you protect from disease to get a rate to fight regulators assuming a good outcome for approval that was modernas ceo on squawk box joining us in the last hour. Futures doubled their gains on positive news about his companys vaccine trial. We forget that yeah, were already up 300 im not sure what caused that. Oil is at 32, wti i was going to tie it to the live golf that was on yesterday. Because just watching that for three, four hours, jimmy dunn and seminole, rory mcilroy, dustin johnson, it was nice to see an actual live sporting event. It just made me think put me in a good mood thats why i thought the market was up 300 we are waiting to talk to gary cohn im not told whether hes ready yet. We are going to intro with a fed chair s. O. T. Talking about how the economy is not going to recover until theres a vaccine and that i think that was written before the show started. Suddenly we had the moderna news we dont want to overstate it. Clinical trials, eight patients where we saw evidence of efficacy its breakneck speed that moderna is trying to develop this Coronavirus Vaccine theyve developed other messenger rna vaccines for viruses like sars, et cetera the platform does seem to be showing promise, so do these trials gary, i understand youre okay now. Were on the phone as i said, we were going to introduce you talking about Jerome Powells comments that we wont get a recovery until we get a vaccine, then the moderna news came out. Thats the latest data point for you to consider when talking about the economy and its prospects. Good morning good morning, joe wow, that was i dont know if gary could hear that, that was like Twilight Zone almost. Yeah. I think were okay now. I got it. Good morning, joe. I think were having technical difficulty everybody heard that, that wasnt just in my head no. Whew. Man. Lets get back to what we were talking about. Totally talked to you, got your comments about where the economy is, the steps weve taken, the ppp, what else we need to do and powells comments about, you know, we cant reopen without a vaccine, then we got the moderna news shouldnt change that much because its early, but it shows how important science will be in dictating how we reopen and recover from this. Look, i think chairmans powells comments last night were interesting. He also said he was fairly optimistic on the resilience of the u. S. Economy, which is a common thing weve heard from people lately. We see relatively positive numbers coming back. Kevin hassett referred to it if you look at gas consumption or credit card swipes, transactions, were starting to see more and more positive uptick in the economy almost every day now. I think we got about 48 states in the United States open which leads us to the question that powell talked about last night as he did not rule out more fiscal response. The question is what should the fiscal response be are we still responding to the crisis by itself or should the fiscal action be in recovery mode and getting people back into the work force and labor force and more normalizing our economy. Just the timing of a vaccine or therapeutic could make a difference on how much more congress and the Administration Needs to do. Wouldnt you perhaps delay spending another 3 trillion or so if you thought it that we werent going to be in this mess for another year or so it makes a dins whfference whene come out of this what we do. Joe, im rooting as loudly as anyone and everybody for a vaccine. A vaccine is sort of the whoholy grail here that said, theres been damage done think about what our actions have done so far so far we put in place actions to support unemployment workers, justifiably. We put in actions to support small and medium sized businesses and large businesses. The part of the equation we have not helped, we have not helped cities and states, and hospitals, which is almost more important. Im not trying to help cities and states get back to a solvent financial position i would like to get hospitals and states back to a financial position they were in 60 days ago. Then those that were in good shape 60 days ago will be in good shape, those that were in trouble 60 days ago will still be in trouble. The cities and states were part of the process of shutting down and telling people to remove themselves from the economy. The last point is, we have to get money back to our Hospital System i dont care if youre a large major Metropolitan Hospital or a small rural hospital in fact, if youre a small rural hospital youre in deeper financial trouble than the larger hospitals we also had all of the hospitals shut down from their normal Business Activity therefore revenue or cash flow has almost come to a halt. The only revenue theyve had is treating Covid Patients which in terms of all the equipment and all the people they have there doesnt cover the costs, our Hospital Systems are losing enormous amounts of money. So we have to get monies back to the Hospital System if we want a Hospital System that looks like it does today. You see where we are between republicans and democrats with another package. You actually had you have some experience trying to bring those two sides together it finally happened. How would you approach this now . What would you tell Speaker Pelosi or Mitch Mcconnell . How should we get to where you want to be here . I think we have to agree on or they have to agree on what theyre solving for are they solving for keeping people at home and continuing to flatten the curve and having that response to covid19 . Or are we solving for recovery those are completely different pieces of legislation. Once we decide and im in this camp if we decide were solving for the recovery, a lot of the actions that can be taken to help solve for recovery again can fall on the states and the cities it may mean getting money to states and cities as you try and incentivize people to come out of their house and spend money once again the states and cities can have influence in that. They can give sales tax holidays they can do lots of things to make goods and services more affordable or have your purchasing power go further. Gary, as a new yorker, how afraid are you that the federal government and given the Political Landscape is going to be very have a difficult time handing over federal money to help states, especially states that certain politicians are going to look at and say maybe theyre being too sensitive and tentative about opening up i think the federal government is the federal government theyre supposed to look at one size fits all, if its good for one state its good for all states i dont think its a red blue issue as people are making it. The reason its being talked about as a red and blue issue is the blue states are some of the larger populated states, so you see the impacts much quicker you see the decline in sales tax and income tax revenue and in places like california and new york quicker than you see it in a kentucky or in a south dakota. But all of these states have the exact same problems. You think these other states have the same problems that new york has we both know that thats impossible right now new york, california have much greater problems than some of these other states do, in part because they havent had the virus nearly as badly. They dont thats why i do think its become a political hot potato. Every state youre right, theres states that have not had the virus as badly, but almost all of the states have had Economic Impact because of the virus. Even if your state was spared, your state may export things out of your state to other states, and if those states are not buying, it doesnt matter. Theres an effect throughout the whole country. You may not have had as many unemployment claims, you may not have had as Many Health Care costs, but youll had some, you had substantially more than you had at the beginning of the year, and your ability to operate in a normal fashion was clearly hampered by the Larger Population that was taken out of the economy. Gary, thank you we appreciate it were out of time. But hopefully well hear from you again. Make sure you join us tomorrow we are over. Squawk on the street is coming up next. Good monday morning, welcome to squawk on the street, im Carl Quintanilla with jim cramer and david faber. The bulls zeroing in on several headlines. Moderna with positive phase one data on its vaccine. Powells 60 minutes interview seen as a beat and auto production resumes in detroit. Oil at 32. You think this is largel