Transcripts For CNBC Squawk Box 20240713

Wednesday and this morning, dow indicated down about 170 right now. S p down 21 and nasdaq down by 58 just 4. 5 from its alltime high more about what it has been doing well the nasdaq 4, 6 or whatever you dont call it the nasdaq 100. It is concentrated i heard Brian Sullivan saying early that of the nasdaq 100, that 35 of those companies are trading 10 higher or more for year to date not the full year but year to date what weve seen this year broadening out a little bit there is the big chetech and the big tech that seems to be well suited for what we are all doing. Not a total surprise oil hasnt hurt either remember, it was the may contract when it expired at the end of may something theyve never seen us before wti back up to 34. 07. That tells you what people are anticipating it has rallied 70 and only at 34. Right tells you a little about what is happening here also take a look at treasury yields we are around 21 for the 10year. 10year at 0. 664 . Andrew thank you, becky lets bring you an update on the pandemic global cases have passed 5 million with the death toll of 328,000 here in the United States we have more than 1. 5 million cases. Russia with 308,000 cases. Brazil now with 291,000. United kingdom about 250,000 cases. Of course, you have to think about denominator and testing all goes into it we probably should do hospitalizations or deaths if we are trying to focus on what we do know. An update on a story we told but a few weeks ago, apple has released a Software Update to the operating system that makes it easier to use an iphone while wearing a face mask. The face i. D. System cant unlock a phone if the users mouth and nose are covered if you swipe up with your mask on, it will allow you to enter your password. Changing the annoying delay as the phone tries to look at its face you are waiting and waiting. Now you can just swipe up and this doesnt solve the problem completely as my son says, we need to get the touch i. D. Back. It used to do the fingerprint and it moved to the face i. D now it needs to have both. The fingerprint doesnt work if you are wearing gloves. Everybody out there, if you are watching, plan your day. Well closely watch jobless claims at 8 30 a. M. Eastern. Firsttime filings expected to rise by 2. 4 million. Last week, 36. 5 million filed for unemployment last week, some saying at least it is barely under 3 million today, the number estimated is 2. 4. Expedia shares are higher reporting a loss worse than expected lodging revenue fell 10 air travel revenue fell 65 on the call, they said they saw a slight recovery and green chutes in may. Business is far from normal. Cnbc has an interview with expedia ceo tomorrow at 10 00 tomorrow. Becky. L brands stock was whip sawed in afterhours trading reporting a loss of 98 cents a share. In the case of this company and expedia, im not sure why anybody would be surprised when you closed all the stores and dont have people traveling. Comp sales at bath and body works was up as people stocked up on Hand Sanitizer victorias secret sales fell by 41 . The plan to sell to siwas canced after saying they violated the agreement by closing the stoors. I think it was the Federal Reserve that said these Debt Laden Companies control 2. 2 million jobs which is why well be watching these stories closely. March, it seems looic a long time ago march 6 we were still going to the nasdaq all together. I think the 11th was the last day it was back here ive been back here for a month. Back april 20. Was time going quickly or was march a long time ago. Early march was a long time ago. It is both. It is grounds hogs day cycle. I measured the time because my hair was so long, i had to chop it i couldnt do it i saw you were cutting your hair you did a good job thank you i didnt know for you it would be such a priority it seems like you could just grow it and it gets longer it is so heavy. You watch me on the spy cam. During commercial breaks, i try to get it out of my face twitter trolls are on that it is a tupee again one, who would pay money for this and two, what, i have 10 different ones for a while it was the dye sorkin, you have no problem. Shirts get clean, hair gets cut. I cut my own hair i trim it all the time are you really cutting it all by myself im really cutting it all by myself ill do a youtube or instagram something and show you ive gotten it down. I thought you had a friend bubble stylist on retainer in connecticut with you the double nannies and the chef. I got my scissors on amazon too. This is all being done personally are you cooking every single night. Not we, are you havar is cooking every single night. Im helping. I am like mr. Dishes im mr. Vacuum im mr. Ironing and mr. Laundry. Those are my new and better skills assigning those duties fairly is that what you are doing nope. Nope we were talking about it in our house. We are producing so much garbage because you are eating everything in the house. Our garbage folks sent us a note saying we needed to get an extra garbage thing. We have to pay extra because our garbage guy is spending too much time on it the Waste Management we had on said they are seeing that with the residential people. Yes they told us they are raising rates because of that. One more thing. Is trying to figure out a meal gotten to the point where it is like, not again . When did we run out of things burgers, chicken, maybe a steak occasionally then im back to where are we . We just had this why did we run out of food yes we are doing it all ourselves. Its crazy taco nights. Im trying to vary it up but it is hard. Im going to put a plug in for a local business in new york city that is changed everything we are doing eataly, the super market in new york city. Theyll send you boxes and they wont tell you what is in it it is not cheap. It is random weve been making all sorts of different dinners every night because you do what is in the box and it has been great. You dont know in advance weve had a ball. You dont get to pick but it is italian food so everybody likes it we never go wrong we are three weeks in and every week it is like christmas when we get the box. We open it up and it is very exciting i was thinking today i might get one of those honey baked hams people get for holidays i did one for easter. It was really good im going to get push back. It is not a holiday. But they last. You get the slices you can have hasandwiches pork tender loin and beef tender loin. At least we can buy the food and our 1 of problems oddly dont sound very good for people struggling more than we are. Keep that in mind. Yep when we come back, modernas chairman defending his companys vaccine trial from the cdc dont miss an update from new jersey phil murphy will join us at 8 00 a. M. Eastern today squawk box will be right back. You say that customers make their own rules. Lets talk data. Only Xfinity Mobile lets you switch up your wireless data whenever. I accept 5g everybodys talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item corner offices for everyone. Just have to make more corners in this building. Chad . Your wireless your rules. Only with Xfinity Mobile. Now thats simple easy awesome. Switch and save up to 400 a year on your wireless bill. Plus get 200 off a new Samsung Galaxy s20 ultra. Welcome back modernas chairman is standing by the companys data on the covid vaccine. The report that raised a number of questions and caused a volatile few days for the stoc. Meg has more on this it did. The story began on friday when the new head of the governments warp speed effort to get a vaccine to the market made some comments about an early trial he got a peek at. He was on moderns board the implication was that he was talking about modern he left the board around the same time. On early monday morning, we saw the data more saw the numbers and said it was promising. Monday afternoon, moderna sold 1. 2 million worth of stock tuesday, they said the numbers are too early. Niaid, the institute working with moderna and others was pretty silent. I talked with the ceo who pointed to a tweet from Vice President pence saying a conk with fauci that was exciting data we asked about one of the claims in the article from a vaccine expert who said maybe they had more data and it just didnt look right we take what we do very seriously. We would not have put out only some of the data to make anything look any different than the reality. More importantly, not only is our scientific credibility more important. The niaid and nih credibility cannot be challenged by any researchers. The time lines for Financial Disclosures and for reporting science are completely different and appears not compatible and it appears that is what is happening right now in this pandemic meg, thank you, it has been a ride to watch this week. A lot of questions, a lot of hopes. Well continue to watch this space. Thank you. Joining us now is dr. Scott gottlieb former fda commissioner, cnbc contributor, serves on the boards of both illumina and pfizer great to have you here we are coming to you ever dayy to ask you more. Hearing from the ceo of moderna. You spoke yesterday saying you worked with him for years and you could vouch for his credibility. That meant a lot from me coming from that position kind of watching this play out, what would you say in hind sight you would be recommending for any of these companies coming up with these things. Should we be hearing about these early results or not i think moderna put out that release earlier than anticipated. Meg captured that well in terms of potentially speaking to these and then the company putting out the release to provide more color around the results they had on hand. There was nothing wrong with these results that raised the questions. It was just early a lot of companies saw the oxford group put out on monkey trials and data on vaccine a lot of interest on whether these work and groups are putting out data early three months ago, people werent sure whether the mrna wrapped in a lipid could produce a response it is encouraging in that regard it is still an early data set. The biggest question is what the dose is going to be. No one seems focused on that question they seem focused on that they didnt have qualifying antibodies in all 45 patients. Scott, before you even said that, this is exactly the line i wanted to talk to you about. That is how unbelievable it is to be able to take a small stretch of messenger rna that codes for one thing, the surface protein. Now we know it was only eight. With he know that. If it is only one. To see you could put it in there into a cell and translate it and have an antibody generated similar to the whole virus to me, thats really exciting. I dont know whether that gives you immunity and you make a vaccine from that. I dont know if it is just young people or any of that. To not have to use an enact vated whole particle how do you know there is not anymore in there to be able to do it with a small stretch of nucleic acid and generate it. Thats huge. The proof of the acid is expressed by human cell of viral rna. Thats big and it generates the production of antibodies that seem specific to the virus three months ago, people would say this approach wouldnt work. Pfizer is taking the same approach this is helpful. I want to know if that is absolutely sure this is how it worked are you absolutely sure it took that small stretch and made that protein and actually made that which is similar to what the virus has . That is incredible it is one little part. We are not going to know until we put these vaccines into people and we know whether or not this provides a protective immunity because it worked in test tubes doesnt mean it will work. There is a long road ahead this data is showing us it is probably possible to make a coronavirus vaccine. It is clear, this will be a 2021 event. We may have Vaccines Available in the fall. It looks like well be able to produce immunity con struft. J j using the antiviral vector. Merck is in this space and astrazeneca and sanofi and pfizer that know how to make vaccines to the degree we find a vaccine, how hard will it be to get people to take it . Given all of the questions around testing and the length of testing, the period, i imagine will be shorter than typical, i can just see the people, the antivaxer groups and others who say, we dont want to touch this or let everybody else take this for three or four months or a year how are we going to deal with that stumbling block i am already thinking there will be push back it might not be that way out there. There is a lot of information out there showing it produces antibodies in people and early safety data. We need to go through early trials and Proper Development to give people confidence in taking these. When you look at vaccine trials, typically, there are 10s of thousands of patients. Gardisil was 60,000. Those approved when i was at fda. We can set trials in the fall especially with the outbreak we expect to have we need to set up those large trials to your point, only about half the people that should be vaccinated for hpv are vaccinated only about half of americans get vaccinated for the flu and less for shingles some people dont have confidence in the vaccines with he need to make sure women do have confidence in this vaccine if and when we get a coronavirus vaccine. You casually mentioned something you think will will be a resurgence of this in the fall i wonder how prepared are we to be able to track into of those outbreaks as quickly as possible i think we were not prepared the first time around. Better than before. If you look at h 1 n 1 in 2009, it sort of clpsed in july and august, came down sharply. About the last week in august, first week in september, you start to see it pick up and spike again. At that point, we started to have a vaccine this could follow a similar path we shouldnt be lulled into a false sense of security. We need to have screening out in the community. Not just screening for those people that are symptomatic. If you call in and say i have the flu, they are going to say dont come into the office that is going to make it very hard to place the widespread screening. We need to bring screening everywhere every doctors office, employment offices, pharmacies people arent going to want to turnover positive cases in their offices and pharmacies because it means theyll have to under go deep cleaning and quarantines. Everyone should be swabbed in the fall people with a runny nose should be swabbed so we know where this is spreading on that cheery note, scott, thank you. Well talk to you tomorrow thank you andrew more ahead this morning. 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Good morning u. S. Equity futures this morning a little weaker after a strong day yesterday. Yesterday, the dow was up about 1. 5 gain of 361 points. S p was up 48 points to highest level since march 6. Nasdaq was up by about 2 . This morning, dow down 132 points s p down by 16 and nasdaq down by 35. Thanks, becky Airline Stocks getting a list on stocks with demand starting to pick up a little bit southwest and united are up 20 . Today, southwests annual meeting, the ceo could shed some new light. When gary kelly presides over the virtual annual meeting, hes not expected to make any news. That said, you could expect suggestions from Share Holders people could say, look, what is the state of business now . For southwest, they are seeing since the beginning of march, bookings outpacing cancellations. That is encouraging news when you look at southwest specifically, another reason why others have beaten up and theyve come back better than others it has ample liquidity gary kelly said, look, if we need to borrow more, we will it is unimcouplncouple bered wih aircraft probably assuring investors, look, if there is an airline that will come back after covid19, southwest is probably in the best position to do that. Remember, we are watching what is happening when it comes to passenger traffic levels we are up from the low in midapril of 87,000. It is up to, what, 240 or 190 or 200,000. A nice bump. We are still down 90 compared to a year ago. Tsa out with new procedures they are going to insutitute tsa will now ask you to hold up i. D. They want you to take off their face masks do not be surprised as more people fly that you see longer lines going through security because this is going to be a slower process good. We have that going for us. Quickly, southwest saying their bookings are outpacing cancellations . Did they give more specifics a combination of both the farther we get from the initial hit on covid19, which was midmarch and we talked to gary kelly at a conference in washington when this all was hitting. He said, look, we are seeing cancellations right and left we are two months from that. The farther you go out, fewer cancellations. No doubt there is encouraging signs more people are going out or at least considering taking a trip you are seeing the passenger levels increase. You are not to the point you are seeing the rebound and saying this is what we expect in august, september, october okay. Phil thank you. Well continue the conversation about the future of the Airlines Sector joining us to talk about it is the analysts at crfa good to see you. We all watched as Warren Buffett sold his Airline Stocks. A lot of people said, what does this spell for the Airline Industry long term we are seeing demand pick up it is on a low base. The real question i would ask is whether you think when you look at all the majors and whether they are going to get through this even as a Company Without any kind of restructuring, demonstratable restructuring well, my opinion would be that they can get through the more Immediate Health crisis to take it out to the end of this year and early next year i think all of them will have enough get raised coming from the government now to get to that point over time, this really morphs from the Health Crisis to the longterm demand now that unemployment is so high. You look at how much debt has been added in the last three months or so if you take just the example of delta, they are adding around 500 million of new interest costs. Hard to make money in airlines because fixed costs are high now you are adding fixed costs from the debt. That makes it that much harder you might have 10 more from last year to get back to the same point to your question, i do think there is going to be some restructuring for a few players. So, as a result of that, would you own any of these stocks at these prices i would not i think if you are inclined to bet on a contrary view, that air travel will come back sooner than the markets are anticipating there are better ways to play that on the commercial side where you have some actual cash flows coming in during the crisis and you are not just burning up cash and piling up debt to me, the big risk is you are getting through this crisis and coming back to normal. That Balance Sheet is back to normal and you have damage done to how much debt you have. Now you have to just do so much more business to break even again and i think it is going to be tough can we talk about the demand picture. There is the Airline Industry that will be impacted by that the demand picture i want to understand the demand forecast given the unemployment picture now and what it looks like 12 months from now. This sounds like more than just a call from the airlines if the airlines will not have the people on the planes in the amount we are would see will this have a trickle down effect on the rest of the economy to give you contest to where the u. S. Passenger miles were in 2007 that different fully recover until 2014 coincidentally, 2014 is the same year we recovered our employment levels from 2007 thats the big issue is, to me, there was a big bump for the airlines this past monday on that news. The limiting demand factor becomes much more. Do people have Discretionary Income to pay for flights and stay in hotels and the things they do when they travel right you are talking about the consumer part of it. What about Business Travel you hear a lot of people talk about the future of work i assume you are coming to us on zoom or skype or Something Like that right now and everyone thinks no one is going to travel in the future. How real do you think that is . You probably have a broader baseof anecdote al evidence on that than i do my view is that there will be a day in the next three to five years when we eclipse the passenger miles we had in 2019 on a global basis. I think the economy will keep growing and innovating and want to be on site with one another eventually there will be a full recovery it is a matter of how long before people have the money to take those trips in my view. Thank you for your in sight and joining us thank you thank you becky, over to you when we come back, aurora c cannabis details and astrazeneca with more on their vaccine. You can watch us any time on the cnbc app before we head to break, a look at yesterday and states reopening for business across america. 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. Struggling medical Cannabis Company Aurora Cannabis announced it is buying canada cbd company reliva which allows the Canada Company to enter the u. S. Cbd market. Real quick, andrew, you want us to believe you cook, clean, wash the dishes, dry the dishes, dot laundry and you iron. Not cooking as much and the ironing is. Not cooking as much ive learned to do some ironing. Ive got the crease right here skills can translate. Lets say this tv gig doesnt work my wife works now. We are looking for someone, im not kidding. What are you paying lets talk about that there is probably a hazard pay as well. I think i got married too soon anyway, coming up, the ceo of focus brands did you know focus brands, there is not with one thing they make i dont like look at this auntie anns and more talking about the return to mall u. S. Futures down 133 points malls across america starting to reopen and thats a critical moment for a company like focus brands. The Parent Company of familiar mall names like auntie anne, cinnabon, carvel thats a real good focus on those brands in particular were joined by jim holthauzer it has more than 6,000 ice creams and restaurants you were at hilton for 20 years through september 11th and through the recession in 08 when did you join this company it was like right before covid19 youve had some experience but youre thrown right back into some tough sledding right away thats right, joe i was literally hear two weeks i had two full weeks in the office with the full team and by week three, i mean, we were sending people home. I mean, many hundreds of people home the following week, unfortunately, we had to announce furloughs and some layoffs. Yeah, it was kind of an inauspicious start to your point, you know, this industry, the Hospitality Industry has been through these things before. There is a playbook that you follow, right . In terms of protecting your cash, taking care of your employees and taking care of your franchisees so as i look back on things like 9 11, the financial eltdown, a couple of recessions thrown in here and there, kind of knew what to do. And the advantage of being having a lot of your franchises in malls, thats great when everybody is going to malls, but it seems like youd be even in a worst position with the covid crisis because the malls closed down ill tell you, we do go to the short holes mall and there are still some things that you can get takeout from i dont know whether you were able to do that, but mostly the mall parking lots are empty and closed down but reopening now. Yeah. Right. So, joe, i guess what i would tell you is that this is a very diversified portfolio, right weve got youre rate, we have a lot of mall exposure, but at the same time thats balanced with lots and lots of different location types you know, without a doubt the part of the portfolio that has been hit hardest has been the malls. Luckily i think theres a little bit of light at the end of the tunnel, some hope here malls have begun to reopen what were seeing is that customers are not flooding back quite yet. A lot of the retail has not begun to reopen so its a little spotty here and there but the point is they are opening and a lot of our brands like auntie annes are there to receive customers. I saw something today, jim, one of the reasons basketball is going to be hard to reopen is because its indoors covid is indoor thing. Does a mall count as indoors i would think it seems like you could do some good social distancing in a three story mall thats kind of like outside or do we consider malls ndoors . Well, in some cases malls are prepared to limit the number of traffic the number of people that can come in like you would any type of retail establishment, right as you know, these are often very cavernous places. Right i dont know how long it will take before we reach that number i think most retailers right now are grateful for any kind of retail traffic thats coming to malls to be honest. Did any of your brands distinguish it doing better . Which ones did the best . Which ones were hurt the most . Yeah. So brands like auntie annes that have a high mall exposure theyve felt the most pain at the other end of the spectrum, joe, you have brands like schlatskys, Free Standing locations and drive throughs that was key that was one of the features that determined just how well you did during this pandemic and, you know, weve got 90 of the schlastky stores open today. When you look at the revenue, theyre just shy of precovid levels it runs the gamut from malls to, again, these stand alone restaurants with drive through facilities. So many questions for you weve got, you know, maybe only 30 seconds did your franchisees, were they able to get ppp money . Will employees be coming back as a rule at your at focus yes ill tell you what, i mean, yes. Owners definitely needed an infusion of liquidity without a doubt. These are other peoples companies. Theyre not ours theyre under license with us, but i will tell you, we did everything we could to educate them and put information in front of them and from what i can tell, the vast majority of them have applied and received ppp money. So, again, that was just a very welcome form of relief for us. All right thank you very much. We appreciate it, jim. Wish we had time weve got a break coming up, but good luck. As i said, you focused on, at least for me, the exact brands to focus on. Thanks well see ya thanks, joe. Okay coming up when we return, a key piece of data on the way this morning. Were going to get you rdyea for todays jobless claims report and well do it straight ahead Massmutual Healthbridge is a free Life Insurance program just for healthcare workers fighting covid19. Learn more at massmutual. Com healthbridge yeah, everything is runningis 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. Future falling this morning as the wild ride on wall street continues this week. We have the latest on what you need to watch in todays trading session straight ahead. Astrazeneca out with news on its covid19 vaccine efforts we will hear from the ceo in just a few minutes. Shopify surging since the outbreak of the coronavirus giving mom and pop shops an online presence. The companys ceo joins us to talk about the new ecommerce landscape. What will the Office Look Like when you return to work the ceo of Boston Properties joins us live. The second hour of squawk box begins right now good morning welcome back to squawk box right here on cnbc im Andrew Ross Sorkin along with becky quick and joe kernen. Lets show you u. S. Equity futures at this hour right now show you where things are standing after a big day yesterday. Dow looks like it would open off 123 points right now the s p 500 off about 15 points and the nasdaq off about 40 points joseph thanks, andrew. Didnt see who was on the top. The name retailer macys out with some preliminary First Quarter numbers. The companys expecting to report First Quarter revenue of 3 to 3. 03 billion compared to a consensus estimate of around 3. 3 billion. It is also expecting to report a quarterly loss of 905 million to 1. 1 billion. A larger loss than wall street was anticipating macys results have been impacted obviously by virusrelated closures its stores began reopening earlier this month like to see a longer term chart. 5 under 5, becky. Thats tough even go back further than that it was 60, remember . Terry lundgren and all the work. They just had a very difficult time, as the way people shop has changed. Obviously this pandemic has fast forwarded that in a big way. In the meantime, fed policy makers are concerned about longterm damage to the economy as a result of this pandemic shutdown Steve Liesman joins us with more on the minutes of the last fed meeting. Steve, this is pretty interesting to hear what they were talking about around the table. Yeah. You know, weve had a lot of fed officials on, becky, good morning by the way they were saying, hey, were not shy. The minutes gave us more detail on what they were going to do and maybe more importantly why they might do it the first part, what more the fed could do first thing, additional quantitative easing. They havent launched a classic or traditional qe program. The treasuries have been for liquidity purchases, not for Interest Rate or economic purposes much more stronger Forward Guidance either saying were going to keep rates low for a year, two years or database. Maybe one of the biggest things theyre talking about, by the way, all these things are they are talking about, no decisions yet on them. Interest rate caps on treasury the fed similar to what the fed had in the war era and the post war era thats world war ii. Now why they might do it is more interesting which is fed seems to embrace a much more pessimistic forecast than i think the market overall Michael Gapen said the fed staff viewed the trajectory of the coronavirus as uncertain enough with the probability of a second outbreak based on that the second half of the year. Many are embracing that probability. It could be fan or it could be terrible theres an equal chance of that. I cant leave you without this funny equip from ian shepherd son said fomc members are now amature epidemiologists musing at length about the virus. The play on the market is to take the feds money but not to accept their pessimistic forecast, joe. Sounds good sounds good. All right. We may get a little of that from our next guest from more on the feds fiscal tools and more on the market, were joined by jim keenan jim keenan, jeff kernen. Blackrock. Jim, in a nutshell, i see what youre saying. Would the thesis be that theres cause for optimism but theres significant uncertainty ahead . Thats kind of what all of us are facing that, right yeah. I mean, obviously theres a lot of unknowns with regards to the policy itself but weve seen probably the worst of it the policy response both from the fed, the u. S. Government many central bankers around the world have underpinned this recovery here. As the economy starts to open, you know, we think the Economic Data starts to get better. The question is more about the pace of recovery on certain industries, but i do think we are going to continue to recover here into next year. Jim, as the some of the moves in the market have broadened a little, ive seen people making the case that the appetite for risk is solely coming back to people. What you do for a living at blackrock, would you manifest that for a person with the credit markets or just the equity markets are there ways to do that in credit where its not if you dont want to step out too far on the risk curve . Sure. I mean, absolutely were going through an unknown period of time there is a recession here caused by the pandemic. You look at the current state, you are seeing pretty prudent actions post the fed policy, but prudent actions by companies out here that are just trying to solidify their Balance Sheet so the issuancein credit has been significant as Companies Seek more liquidity on the Balance Sheet in order to, you know, basically manage through the uncertainty over the course of the next 12 moonnths from a longterm perspective, we know all of the debt getting put on from fiscal deficits and Central Banks is going to put pressure on longterm growth and i think youll end up in an environment with low rates for a long time, still for long investors, yeah, the credit markets are up, offer a Good Opportunity the default rates are around 40 . We think thats a draconian scenario when you think about the shape of the economy, the fed policy, the amount of the government policy coming in here to stimulate the economy to 2021 i think getting at a high Single Digits type of return to the credit market for a longterm investor net of losses, you will see some default, is going to be a good taubt at thopportunity t. There will be a lot of uncertainty in q3, q4. At the same time a lot is priced into the market. Theres a lot of pessimism and uncertainty on growth in the second term. If someone comes to you and says, all right, i want high yield, youve got some things to separate the winners and losers in that arena. Youve got a section here on tactical views how should we do it . What do we look for . I mean, ithink from a starting point, i think if youre a longer term investor, you can weather volatility in the short term here, its still a Good Environment to structurally be longer risk, right . We still think you should be long credit. As you said, there will be winners and losers throughout this pandemic theres going to be differences. We see certain sectors that are improving because of the current environment, because of the stay at home environment. We see other sectors like restaurants, transportation, travel are all hurt in the short term here. We think that the pace of recovery on each one of these sectors is going to vary and some of that will be determined and based off of policy or the virus itself and how that evolves information evolves over the course of the next six months we still like the quality. You dont want to chase the cccs, there will be defaults, but there will be an opportunity to find distress base in the credit markets, too. Jim keenan, thank you we appreciate it over to you, andrew. Okay. When we come back, the coo of shopify is going to join us this is one of the most amazing Retail Stores in the world right now. Shopify, by the way, bigger than target even, which is unbelievable in terms of market cap. Plus, some big news coming from astrazeneca on its efforts to bring a vaccine to market were going to get the details in just a couple of minutes. Before we head to break, earnings just out from best buy scoring big beats on both the top and bottom lines down by far le tsshan expected were back after this. I got an oriole here. Eh. Common bird. Ooh look over here something much better. There it is. Peacock, included with xfinity x1. Remarkable. Fascinating. Very. It streams tons of your favorite shows and movies, plus the latest in sports news and. Huh run the newest streaming app has landed on xfinity x1. Now thats. Simple. Easy. Awesome. Xfinity x1 just got even better with peacock premium included at no additional cost. No strings attached. Just say peacock into your voice remote to start watching today. Welcome back to squawk box. Consumers are shifting their spending so critical for businesses to stay afloat. Many rely on cloud based shopify which has jumped 73 since w. H. O. Declared a pandemic it has some big plans for its own business possibly to rival the likes of amazon. It has been one of the storied stocks, if you will, of this pandemic coll Harley Finklestein is the coo the expansion of whats taken place for you over the past two months now is remarkable including a partnership with facebook which i want to talk about in just a minute but in terms of just insight, if you could provide it, in terms of big surprises in terms of what youre seeing retailers on the platform, whats the one thing that you think people havent fully appreciated about this ecommerce phenomena thanks, andrew. Thanks for having me on the show as always. A couple of things first is i think the year 2030 in terms of what retail and commerce will look like in 2030 has been pulled into 2020. That sort of happens in two ways on the supply side, you have a tale of two completely different retail worlds. You have these ar kayic retailers that have been resisting change, that have viewed multichannel as a strategy, which its not, its a tactic then you have on the other side these resilient retailers, some of these companies that are new to the market that have been around for a couple of years that have very quickly pivoted, adapted, theyre succeeding. You have a lindt and heinz ketchup that are using shopify and completely change their Business Model to go direct to consumer its very exciting but there are two different retail worlds. On the other side, you have demand i think consumers are voting with their wallets they want to buy from independent brands i think you saw the stat over the weekend. I think i saw cnbc tweet about this ecommerce as a percentage of total retail, it took eight years to go from 5 to 15 its taken 10 weeks to go from 15 to over 24 or 25 you have this incredible catalyzing of retail and commerce those that are adapting are doing really great those that arent unfortunately are being left behind. It sounds like you are bearish on the idea of multichannel. Why is that . No, not bearish just the opposite. The fact that were talking multichannel shows how ar kayic some of these old retailers were forever 21s, barneys, pier 1, jay crej. Crews. Thats not the strategy. Sell everywhere where your consumers are. If thats online, offline, facebook, marketplace, the strategy is to sell everywhere i think a lot of retailers didnt view it that way. They viewed this multichannel as a strategy in itself and that was wrong. Harley, explain the partnership with facebook because theres a number of analysts out there that are bullish about it, and ill tell you some other investors that are a little scared of it in terms of how much of the business they may ultimately get, even though youre going to be tied into it, that they might ultimately be able to peel off or take share of yeah, we dont see it that way at all in fact, weve been working with facebook for over five years as soon as they started thinking of commerce and retail we have been their partner i think shopify is the greatest partner and facebook has a great reach. Connecting the millions of businesses with with shopify and users spending time on facebook and instagram is a great match and partnership. What shopify has become, i know you talked about this a bit in your intro, we are a retail operating system we want to enable brands to sell anywhere where they have consumers, online, offline, facebook, marketplaces it all feeds back into one centralized back office or retail system. One place that merchants and brands can sell, the more they make, more complexity there is and the more shopify provides them. You are in the very early stages of getting into the fulfillment business, which would put you directly at odds or at becoming a true rival, if you will, with amazon. Whats the time line look like what are the services you need to provide and what does that investment deliver great question. Beyond enabling brands to sell and all of these different channels, creating the retail operating system, one thing we started doing the last couple of years is thinking of this new area called Merchant Solutions one of the things every smb needs that they can not get on their own. We created shopify payments. Shopify capital. Weve given out 1 billion in capital to businesses. We mentioned our balance product on the call. This is something every business cannot get affordable two day shipping shopify, were the second Largest Online retailer in america after amazon and above everybody else that means we can go and negotiate on behalf of 1 Million Stores instead of keeping the economy of scales to ourselves, we can give it to Small Businesses. For sf fin, we need five years to do this we are one year in, we have dozens of brands using the fulfillment network. We want to expand it so any Small Business or big business can tapin and do two day shipping anywhere in the world they dont have to use some big marketplace product and they put their branding on the box and they have to sell just in that marketplace. Were trying to level the field and this is a way to do that. Harely, it is an amazing story. If you bought into the stock, its up 45 x at this point thank you. We will talk to you soon. Thanks, andrew. Appreciate it joe, over to you. The coo of astrazeneca is up next their efforts to develop a vaccine. Futures down 110 points. Squawk box coming right back time now for todays aflac trivia question. What soft drink was first marketed as a nerve tonic that relieves exhaustion . The answer when cnbc squawk box continues a hundred dollars. I had good health insurance. Why isnt this covered . Well, then they started getting bigger. Eighthundred dollars. Eighteen hundred dollars. I saved for this. But not that much. Im glad i had aflac. They gave me money when i needed it most. Thats why aflac is here, to help with the Expenses Health insurance doesnt cover. I love that aflac duck. Aflac get to know us at aflac. Com confident Financial Plans, calming Financial Plans, complete Financial Plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. What soft drink was first marketed as a nerve tonic that relieves exhaustion . The answer, cocacola. Yeah relieves exhaustion because it had cocaine in it originally not anymore. Anyway, astrazeneca announcing 1 billion of funding for the vaccine project with Oxford University meg tirrell joins us with a special guest. Meg . Reporter that special guest is astrazeneca coo, pasquel sorio. Data coming out from a monkey trial of a vaccine it kept the monkeys from getting pneumon pneumonia. There was virus detectible in their noyes. It seemed like they got infected did the oxford vaccine work in monkeys . Not really so tell us about your confidence level based on seeing those data that this vaccine will work in people all right meg, first of all, good to be with you today what i will say to this is that the person who wrote this, the author of this article should know that this is in a magazine in the fall. They honestly should have realized you dont compare studies that are not headtohead studies in this instance and the monkeys received only one dose of vaccine and they were exposed to enormous challenges enormous quantities of viruses. This enormous challenge, of course, is left them with a little bit of some of them, a bit of virus in their nose, but none of them developed pneumonia. None of them developed signs of lung infection it may actually be that this vaccine, booster injections in some patients, but at the end of the day the data is where it will be found. Phase one study is doing well. At the end we will know the results at the end of the summer probably in august with human data in the very large study of 10,000 people in the u. K. And another one of 30,000 patients in the United States wow so youre planning on starting phase 3 at the beginning of next month, in early june yes actually, we are planning to start the u. K. 10,000 study in june and the u. S. Study 30,000 patient study would start probably in july so a little bit later. The u. K. Started earlier, but more or less in the same time frame and we hope to have results by august. But, of course, just like any other vaccine trial, we are going to be impacted by how much disease there is you need infections to be able to show a difference between the vaccinated group and the control group. So we will have to make sure we go to regions of the United States where theres still a lot of infections. The same in the u. K. We hope by the end of august we would have the results reporter and youve announced news today support from the u. S. Government, barda, more than 1 billion and a guarantee if this vaccine works to deliver 300 million doses by the end of october and i understand you had made an agreement with the u. K. Government to deliver 30 million doses by september yes. Does the barda funding enable you to deliver more than that or will you still need more funding . Well, let me first say that the operation warp speed, that is actually working. It is a fantastic idea and i would like to thank the administration in particular i would like to thank secretary a czzaazar his leadership would work with the world. The studies we are doing in the u. S. And the investment we make in manufacturing the vaccine, we, of course, go to American Cities and American People it will work for the rest of the world. The United States is really showing tremendous leadership in tackling this tremendous disease head on. So my hope is that the whole world will actually follow on and really engage in offering best single amounts of money so we can rapidly bring a vaccine to the American People and the rest of the world. One of the concerns with people in the Public Health community is that the rich countries will line up vaccine for their citizens first and others are working on access around the world when you have the funding from the rich countries, then youre guaranteeing delivery to them first. Is that essentially whats going to happen . Let me say first that we have set up separate satellite chains around the world one for the United States exclusively for the u. S. One happening for the rest of the world. We are looking to partnering in india. For china also so there will not being competition within country and geography. Well have the vaccine costing very little. It will cost a few dollars it will be really very, very easy to afford for the middle and high Income Countries. For the low Income Countries were working with Global Organization that are supported by the Gates Foundation and many other countries to help those low Income Countries get access to the vaccine so i really have no concern that access will be an issue from a financial view point the only issue, of course, will be capacity. Can we produce enough of this vaccine to help everybody. Thats what were working 24 7 to achieve. Reporter just one last question very quickly. When will we see the first human data well, you know, we will have our first human data, we have 1,000 patients phase 2 that will be early june. We havent decided where we will present these results, but on the back of these results well start our phase 3 and that will be available probably in september because were working with them and the fda to really go through the regulatory process very quickly so we can use the emergency use process that exists in the United States and the data will be available around september we are doing the manufacturing and were doing it at risk because the only way to have the vaccine ready to go when we have the data is to manufacture parallel i think it is important for the American People to understand that the administration is taking a tremendous leadership without their support, it would not be possible to develop this. Thank you for being with us thank you, meg. Meg, thank you. Still to come on squawk box this morning, senator Chris Van Hollen introducing a bill that could lead to Chinese Companies being barred from listing on u. S. Stock exchanges. He joins us with the details right after this break well be right back. N be certai. The men and women of the United States postal service. Were here to deliver cards and packages from loved ones and also deliver the peace of mind of knowing that essentials like prescriptions are on their way. Every day, all across america, we deliver for you. And we always will. As tensions between the United States and china intensify, the Senate Passed legislation that could potentially ban some Chinese Companies from listing shares on u. S. Exchanges one of the sponsors of the bill, senator Chris Van Hollen joins us right now senator, thank you for being here today good morning. Good to be with you. Lets talk a little bit about what this bill does and why you brought it, why youre sponsoring this bill whats the reason behind it . So this is a bill i introduced with senator john kennedy. Its a bipartisan bill it passed the United States Senate Unanimously yesterday and its designed to protect american investors the premise is simple. All Companies Listed on u. S. Stock exchanges should comply with the same uniform standards, especially with respect to accounting under the Public Companies accounting Oversight Board and companies from every country in the world are complying now except china and the government of china has essentially prohibited their companies from opening their procedures to the same standards that every other company that lists on our exchanges so this is to protect investors. We introduced this long before the outbreak of the coronavirus. This is important. Years ago u. S. Investors were bill being bilked out of 14 billion. Alibaba shares were down by 2 on news of that unanimous consent that you mentioned we also look at shares that american investors have been clamoring to get their hands on. They have been darlings here do you have suspicions about those companies in particular . What got you to this point that made you think theres a problem that needs to be fixed well, the problem is that we know from what happened years ago that u. S. Investors lost lots of money because Chinese Companies were not complying with these standards and it turned out that mom and pop investors got bilked out of billions of dollars. Theres nothing that prevents these companies from being listed on our exchange under the bill they have to comply by the same rules that every other company in every other country has to comply with. We give them three years to come into compliance. The companies you just mentioned can continue to list on the u. S. Exchanges so long as they protect u. S. Investors. Have you heard from these companies in particular or from the exchanges where theyre listed and i wonder if you blame the exchanges for allowing them to list well, we urge the exchanges to take this action. We also urge the sec to put more pressure on companies in china a lot of these negotiations should have taken place, you know, back around 2009,2010 when a lot of these companies were joining the u. S. Exchanges, but we havent gotten a lot of push back, no. I mean, there were some concerns raised initially, but we provide this threeyear period for these companies to come into compliance and, look, you know, in china, as we know, all of these companies are subject to the dictates of the government of china and so its simply a matter of allowing them, allowing their companies to comply by the same standards as everybody else. Look, i think these companies have access to the u. S. Capital markets. Yeah what you just said makes it seem like there is no way that they would actually be able to get in line with compliance. You just said everyone knows these companies are subject to the whims of the Chinese Government is there any way any of these companies can actually prove to you as the bill requires them to do that theyre not subject to that what it requires is that they subject their books to the same accounting standards as every other company in the world, and i think the government of china will now be pressured to allow those companies to do so in order to continue to have these major Chinese Companies listed on the exschang in order to protect american investors i think at this point now that weve passed this law, its heading to the house, that the government of china will have to reconsider because i think they want these companies to have access to the u. S. Capital markets. As you say, there have been a lot of people who invested in these companies, but its not just the big name companies. There are lots of other smaller Chinese Companies that are listed that are not complying with the rules a lot of investors believe that every Company Listed on the exchange is held to the same standards when it comes to accounting, and the reality is it has not been the case with respect to the Chinese Companies. So this is designed to make sure that everybody plays by the same rules and that investors can have confidence that everybody is playing by the same rules senator, can i ask you about the timing of what is clearly a strategy of sorts to escalate conflict and tension with china right now in the midst of this pandemic im not going to try to dissuade you of any of your views of Disclosure Rules or anything else, but it seems to me that as we escalate this conflict right now, there he is a strategic real question and risk that we put ourselves at, which is to say that we still rely on china for access to ppe, which we still cant manufacture here in the United States, for supplies, for access to certain ingraed yents that are going to be there for drugs. Theres a whole supply chain that we are literally thats necessary for us to keep going in this particular moment. And whether you think that we pull the any of that at risk by approaching it the way we are right now in the middle of this. Not to say we shouldnt do this in the future, but doing it now. Well, as i indicated, that senator kennedy and i introduced this bill more than a year ago just as part of the overall effort to even the Playing Field a little bit between u. S. Companies and Chinese Companies. I have disagreed with a lot of the Trump Administrations trade policies with respect to china i have supported their policies with respect to, you know, preventing theft of i. P. And their efforts to make sure that we crack down on huawei and some of the practices that its engaged in, but this was not designed to be part of an overall attack on china at this particular point in time because the coronavirus. In fact, its my view that while china obviously was not as transparent as it should have been, that the Trump Administration and President Trump in particular are just trying to distract attention from his own negligence with respect to getting on top of this virus in the United States by pointing a finger at china. So i do not see this as part of that effort. As i indicated, this is designed to protect american investors. Chinese companies were the only companies in the world that were not held to this standard, and we introduced it a long time ago as part of the Investor Protection strategy. If you are asking me whether or not we should be escalating our battle with china, i dont think we should be doing it unnecessarily and poking people in the eye unnecessarily i think we should continue to the strategy that weve been engaged in to try to prevent the theft of i. P. And to address real challenges like huawei. Senator, thank you for your time today we appreciate it thank you okay when we return, a lot more on squawk. The ceo of Boston Properties is going to join us as we head to break, a few business headlines to bring you. Apple and google have jointly released Smartphone Technology that helps prevent the spread of covid19 apps will let you know if youve been exposed to someone affected by the coronavirus squawk returns right after this 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. Confident Financial Plans, calming Financial Plans, complete Financial Plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. Welcome back, everybody. Retailer macys out with some preliminary numbers. Theyre expecting to report 3 to 3 to 3. 03 billion compared to consensus estimate around 3. 3 billion its also expected to report a quarterly loss of 905 million to 1. 1 billion. Macys results have been impacted severely by virus closures the stores began opening this month. Earnings out from best buy this morning as well scoring big beats on the top and bottom lines. Comparable sales have been down. That stock is down by 2 coming up, beck. Whats your office space look like the ceo of Boston Properties the hancock, prudential joining us to discuss what theyre doing at their Office Properties around the country check out oil this morning as the dow has pared its triple digit losses oil is up 2 34 a arshe. 34 a barrel well be back. Some Companies Still have hr stuck between employees and their data. Entering data. Changing data. More and more sensitive, personal data. And it doesnt just drag hr down. It drags the entire business down with inefficiency, errors and waste. Its ridiculous. So ridiculous. With paycom, employees enter and manage their own data in a single, easy to use software. Visit paycom. Com, and schedule your demo today. Sawithout evenon yoleaving your house. Just keep your phone and switch to Xfinity Mobile. You can get it by ordering a free sim card online. Once you activate, youll only have to pay for the data you need starting at just 15 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. Its the most reliable wireless network. And it could save you hundreds. Xfinity mobile. More flexible. Theyll have a Lasting Impact on the commercial Real Estate Market office space joining us in a Rare Television interview. Owen thomas is the ceo of Boston Properties properties in boston, new york, d. C. , los angeles, and san francisco. Good morning to you. Thank you for joining us owen, we hear almost every day a new company that says that they plan to work remotely either for longer or in some cases were hearing forever. I want to understand for you as youre thinking about the future what you think the workplace ultimately looks like. Good morning, andrew. Thank you for having me this morning. Were hearing this reporting and rhetoric as well i think we are heavily engaged with our customers we have over 50 million square feet over 95 paying rent and heavily engaged about how to safely get back into their work space clearly this will be a gradual return to work for safety reasons. There are going to be government regulations set up that will cause a gradual return to the workplace. Even many cases where employees are saying they dont have to come back, they will be sending employees back to their offices when they open at the outset i think whats happening, andrew, is these work from home tools that we are using existed before the pandemic occurred, then we had the pandemic and we got put into this forced experiment of working remotely its worked reasonably well. I think Business Leaders ive talked to kind of wonder when the pandemic clears and its time again to reengage with clients and to win business is the remote work going to be effective. I hear from the customers that the remote work is not an acceptable replacement for the in person interactions that happen in the work space the ability to mentor younger employees. The spontaneous collaboration and creativity that occurs and also the culture that Companies Develop is very difficult to do it, you know, when were all on zoom and web ex. So, again, i think this is a twostep process we have a pandemic underway. It will be a gradual return to the office, but i do think companies will be actively using their offices. Do you expect people will be staying in super cities, new york, san francisco, boss stons of the world or do you see the satellite offices growing and some of this shifting . Youre already hearing in places like new york city people looking for office space, Big Companies looking for office space in westchester, connecticut, other places with the idea that some of their employees might ultimately end up there we had the ceo of wework on. That was sort of a contrarian view that he had that this could be an accelerant because people want these satellite offices and theyre going to want more space, oddly enough. Instead of the big open floor plans where everybody is sitting on each others laps, were going back to offices . Yeah let me break that down into two pieces one is about the suburbs and vibrancy of large cities so on the suburbs, absolutely. As i described earlier, when were in this initial phase during the virus, i do think that some companies will set up remotely you know, think through what thats saying. Companies are saying its in a physical office. It should go on leasing something in the suburbs confirming what i mentioned earlier in my remarks. So i do think also some of the suburb and moves that companies are making are also temporary, that its going to theyre trying to put together offices for their suburban employees while the pandemic is underway, but i do think when the risks of the virus disappear for whatever reason, i believe in the vibrancy of our large cities our large cities around the world. Knowledge workers, talented workers want to congregate in cities they want to be together they want to experience the culture and the excitement they want to attract the talent. I dont think thats changed its changed in the short term unfortunately due to the crisis we cant be together and be the social animals that we want to be i think it will go away when the crisis is over now coming back to your next point about wework, they are one thing thats very important here in a trend for offices, were spreading out. Given the crisis, companies are having to take out work stations and theyre reducing the dense si if i case. Owen, let me ask you of the 164 Office Properties you manage and the phi retail spaces, how many of your customers are paying their rent in full and on time so in the we reported in our Earnings Call that in april we collected well, this is in the que. We collected 96 to 97 in the rents among our Office Tenants and for our customers overall, which includes retail, we have a small amount of retail but we do have retail its in the low 90s. What about retail itself . For may the collections are also very favorable. But for the Retail Properties themselves, i think thats where people have the most questions because they were shut down not bringing in any revenue. Could you tell us just specifically what percentage of the retail the people are paying their rents in full . Its in the 30 to 35 range so as an office landlord, a lot of the retail that we have is what we call Service Retail so it exists as an amenity for our Office Customers its located at the base of our buildings. A lot of those amenities are restaurants or other similar type of establishments weve been working with those customers to abate their rent, to defer their rent, whatever they need to do to help them get back on their feet after this crisis is over we want to thank you. We appreciate your insight, perspective and we hope youll come back and give us an update as things progress great love to do it. Thank you very much. You bet thank you. When we return, a lot more on squawk. New Jersey Governor Phil Murphy will join us to discuss plans to reopen one of the hardest hi states during the pandemic an interview you dont want to miss take a look at the futures we are in the red. Dow off 105 potsin were back with another big hour of squawk. Could be a critical test of americans ability to stay socially distanced phil murphy is going to join us as his states famous beaches get ready to open. Cyber security lessons everyone should be learning from a new high profile hack on an entertainment power maker. All the details are coming up. The final hour of squawk box begins right now good morning, everybody. Im becky quick along with joe kernen and Andrew Ross Sorkin. U. S. Equity futures this morning, all week long has been an up and down week. Yesterday up by 1. 5 down. This morning we are down dow futures indicated down by 117 points s p off by 14 and nasdaq down by 30 the treasury market weve been watching and the ten year has been sitting just below just around. 66 if youre watching that. 67 now, joe. Thanks, beck. Our first guest this hour is reopening beaches in the hardhit garden state. Just in time for the memorial day weekend. Lets welcome new Jersey Governor Phil Murphy go governor, welcome. Are you getting any sleep . I am. Good to be back with you. Good to see you also. Bring us up to date, up to speed what stage were in right now and whether the garden state where i live, is it the right time are we within all the guidelines in terms of yeah. We are go ahead governor i think we are. This is a delicate balance first off we have lost 10,700 blessed lives which is unfathomable hospitalizations, new hospitalizations, icu beds, ventilator use, all the things that we track have been going in the right direction now for more than a couple of weeks and so weve begun to take what i would call baby steps. Admittedly beaches is a big step in that list but weve had a bias of opening things up outdoors and loosening that. Parks. County and state parks we did a few weeks ago. Beaches as i mentioned Curbside Pickup earlier this week for nonessential retail weve opened up construction more again, a bias towards the outside because thats where the virus can do less damage but this weekends a big one with beaches. Governor, have you ever seen anything like this and i know what kind of world were living in right now. This is the post today im going to hold it up for a second i mean, a major news i dont know, is the post a major new hampshire. It needs to end now. I can look at the daily news and i can find a cover that says, are you out of your minds to even consider stepping out of your house so and you look at the polls and its like, so weird. 90 republicans say one thing. 90 of democrats say the opposite how do you how do you walk the line youve got an economy in new jersey that you want to you want people to go back to work but you dont want anyone to die. So weird, governor. Im in violent agreement. This is something unlike weve ever seen before we do have a pretty clear eye focus on a couple of different Guiding Principles first of all, data were as money ball as we can be, and we say all the time data determines dates and more broadly Public Health creates economic health. So we chose to rip the band aid off the economy, which has been extraordinarily painful for job loss, for Small Businesses, for many of our sectors, but the alternative was to let the virus go or in this case open up too early in which case i think its throwing gasoline on the fire, not just on the Public Health piece of this but you also have a much deeper hole ultimately economically so i want to open up as much as anybody. Trust me i want to get folks back to work as fast as possible but if we screw up the Public Health piece, none of that will happen and thats the side we need to err on so many different conflicting wins on how to go. We want herd immunity. We initially wanted to make sure we had enough ventilators and that the Health Care System wasnt overrun it was never stipulated that no one would ever catch the virus again because thats impossible. It wasnt that we were going to stay inside until we absolutely get a vaccine that works so what changed . What are we trying to do thats why people want to the vulnerable population you want to try to sequester those people and maybe the people that are going to get through it okay are able to go back to work. How do you do that all the time, jee one of the big pieces is we need the right infrastructure in place. For the 9 million new jerseyians to be confident that they can dip their toe back into the water. Big pieces, we have ramped up testing. Thats a dramatically different reality than the last time i was on with you. We are now going to be able to by the end of next week well be doing over 20,000 tests in the state secondly, Contact Tracing between an amped up body of folks who are getting on the phone and speaking to people along with technology, those are two realities that we have in the state today that no state had when this whole thing started. Thats intended to give folks the confidence that, you know what, if we see a flareup, we can spot it quickly. Weve got a plan in place to isolate that and so that gives folks the confidence they can get back out there on the boardwalk, get to the park, do other things that i hope well be able to open up over the next several weeks. Becky governor, that was kind of my question, too. You answered part of it. Weve been speaking with Scott Gottleib every day, the former head of the fda. I love him. Jersey guy, by the way. Yeah. Yeah his concern is that things are going to die down in july and august thats the good news his concern is it will come back in the fall kind of like h1n1 has in the past. Hes concerned that we wont be ready for that, we wont track it quickly enough. How do we do that . Where are all these testing places going to be his concern is that it wouldnt be done in doctors offices, there would be coronavirus testing places to go to and he doesnt think thats enough. The Contact Tracing you mentioned, i live in new jersey, too. I dont know anything about that yet. By the way, youve got a lot of jersey blood in this show which is another reason i love coming on this listen, scotts a rock star and hes a guy look to and speak to and you hear that from him and you hear it from other experts, this thing could come back in in the fall with a vengeance, which is why on our sort of sixstop road to recovery, the sixth point is resiliency. And by that we mean really two things one is this virus has torn open in full public view awful inequities, particularly along racial lines in our society. Secondly, to your question, becky, its resiliency in making sure weve got the bed capacity, ventilator capacity, ppe, health care bullpen help, the medicines, et cetera, that we didnt have either as a nation or certainly in our state when this started that weve got that in our stockpile, if you will, in anticipation of god willing i hope it doesnt happen, thats another area were focused laser like on now. Great news to have a lot of the things prepared that we didnt in the past, hospital beds, ppe, but, i mean, im thinking of this as a parent if i send my kids back to school in the fall, i want to know immediately if theres an outbreak so i know how to protect my family, particularly if i have any vulnerable members of my family how can you make sure we know that quickly and immediately testing is a big part of that we have scaled it up and will continue to scale it up. A couple of examples to scotts point. Rite aid will have 50 locations testing by the end of next week. Walmarts going to have seven of their big super stores doing drive through testing by tomorrow so every day it seems we announce a new expansion of this, and thats going to have to include listen, weve established a group of wise women and men to advise us and the three big tough nuts that weve got to give people confidence on sooner than later are day care, schools, Public Transportation and you just said something as a mom, im a dad, youve got to have confidence that youve got the testing, the quick rapid turn around, ability to track that down, the Contact Tracing youve got a plan in place to isolate any hot spots should they come up, and people have to believe that, and thats what were focused on governor, can you speak a little bit about the conversations youve had with the teachers unions in your state and what you anticipate doing with teachers that either have preexisting conditions, comorbidities or are of an age by the way, some of the most legendary, greatest teachers in your state and around this country happen to have been in the business for a long time so theyre older and for them to yeah. Actually go to school and work creates certain challenges, as you know. Yeah. I dont have a crisp, easy to speak answer on this thats probably the most complicated part about back to school so weve been virtual. Well continue that through the end be of this school year were trying to find a way i hope well have some news on this tomorrow to allow folks to celebrate responsibly their graduation we talk about several lives every day in our press conference, people weve lost. Invariably, joe, theres a teacher in there and its somebody, as youve suggested, who was at it for like 50 or 60 years. The unions have been fabulous. We have the number one public he had due case system in america and weve got to keep it that way. We have to find a way responsibly not just for the moms and dads to beckys point, you can have the kids back together in a responsible way and that you have the Cross Generational aspect of this virus. I dont have a crisp answer. I suspect its a lot of social distancing, a decent dose of Virtual Learning and a whole lot of testing on a regular basis going on i would bet those are the ingredients. Governor, be nice if some Small Businesses were deemed essential, i guess thats a problem im not necessarily talking about hair salons. Can you give me any idea when im going to be able to do that . What about an indoor restaurant with separation and masks . Whats the date . I dont have a date i hope its a matter of weeks. If we keep seeing the curves and the progress, thats the most important piece of this, weve already started this for several weeks. Weve done this in iterative steps. Outside is easier than inside. The toughest nuts to crack are inside, no ventilation, sedentary. Indoor dining is more complicated than outdoor dining. The barber shop which we all need, the salon, the gym, those are complicated. I am hopeful that with the progress weve been making, that thats a matter of weeks we do have nonessential retail allowing Curbside Pickup as of this past monday i hope well continue to see progress on that front i would point you to a matter of weeks, hopefully we get some of that stuff open. I feel like i was just at the gym stretching todo this horrific thing that i have to do, so im not that leave those closed no, i need to go back thats not true. We do need to get those open, too. All those people need paychecks, too. Governor you bet. A lot of people that i care about. Anyway, as i said, get some sleep. Hopefully this is just for you and for people that have the weight of these decisions on their shoulders, i cant even imagine. Appreciate you coming on the show today, governor. Thank you, joe. Thank you, becky happy memorial day. Thank you joe, were watching shares of baidu its watching shares spike and drop reuters said baidu is considering delisting from the nasdaq and moving to an exchange, quote, closer to home to boost its valuation that report says baidu is reaching out to trusted advisers to see how the delisting could be done and how funding and regulatory action might play out. Yesterday baidus regulators said theyre paying attention to whats happening in the United States senator Chris Van Hollen was one of the cosponsors of a bill that passed unanimously, unanimous consent from the senate on the idea if they dont meet up with u. S. Standards, accounting standards, that they would be delisted within three years. That would include Companies Like a baidu or alibaba. This is heightened tensions with china and the United States. This is how its playing out with baidu where the shares are down just over 2 . Andrew. Coming up when we return, how the coronavirus is changing the nature of corporate Cyber Security with new risks as employees log in from home well talk about it. Comes as the Entertainment Industry sees the highest profile hacking since the 2014 breach of sony well talk all about Cyber Security right after the break as we head to break, check out shares of astrazeneca. They struck supply agreements for the covid19 vaccine candidate currently in joint development with the university of oxford. They singled out the u. S. For praise in its vaccine development. The studies we are doing in the u. S. And the investment we make in manufacturing the vaccine, we go to american citizens, American People but it will definitely go to the rest of the world the United States is showing tremendous leadership. Astrazeneca shares up about 3 this morning. We have a lot more about all of it on squawk box. Stay tuned straight ahead i got an oriole here. Eh. Common bird. Ooh look over here something much better. There it is. Peacock, included with xfinity x1. Remarkable. Fascinating. Very. It streams tons of your favorite shows and movies, plus the latest in sports news and. Huh run the newest streaming app has landed on xfinity x1. Now thats. Simple. Easy. Awesome. Xfinity x1 just got even better with peacock premium included at no additional cost. No strings attached. Just say peacock into your voice remote to start watching today. The high profile raising big red flags on Cyber Security. Seeking 40 million in ransom wear already leaking ransom wear payments leaking documents related to lady gaga and promising information on madonna. Separately it also reported that it sold information on President Trump. The government attack is one very prominent issue of ransom wear with millions of americans working from home. The risks are growing. Good morning, becky such a chaotic scramble. All of these companies to get all of their employees home and working. The experts over the past two weeks say its been a field day for hackers. There are two reasons for that one is technical, the other is social start with the technical reasons. Thats all of the obvious stuff you can think of everybody is working from home they put all of the systems together on the fly. Video conferencing that everybody is using all of a sudden not necessarily secure. Family Home Internet routers youre using the system that you set up for your home pc. Now its carrying company data those are not as secure as Company Services childrens gaming. Theyre using the wifi. That can be a vulnerability. Its all traveling over the same system were getting new emails from offices explaining you need to log on with this, engage with that these are new formats of documents we havent seen before were more likely to click on a phishing email theres virus anxiety. People are eager to talk about emails that talk about covid particularly if they appear to come from their own employer thats a vector in for phishing attacks. Social media lots of links being sent and aimed at children on childrens social media platforms that ultimately would get the hackers into the parents corporate data all of that very expensive to fix. Exactly how much would it cost mike at rco told me somewhere between 247 and 1,755 per employee depending on the home setup, depending on what the company needs. Thats an enormous expense thats why the Cyber Security experts including mikes say were likely to see a lot more of this cyber theft going on in the next couple of months because a lot of this data is out there on these home systems and that opens up a real vulnerability guide. Eamon, thank you. We have michael here i have been getting a lot of phishing attempts. What are we supposed to be doing that we werent supposed to be doing. Theyre doing a great job whenever you have a huge call. There are a not of new attack services are your kids using your computer for school . We have a zoom environment its a lot for most people being able to take on themselves this is the thing that cios and i. T. Leaders have a 25i7bd and unfortunately law firms and consulting firms, they are going to be the attractive soft underbelly if you can get inside the firms, if you are a hacker you can get juicy stuff. This isnt an area where they should spend a lot of time you should put a password protection on your wifi by the way, some of that is in the office if you get an email, it looks like it might be real and you can walk out of your office. Is this real or not . Thats not as easy in this time of high friction in the work from home environment. You cant just call someone or text them quite as easily. Any little friction against checking and verification works for the hackers and against you. Because its so quickly changing and so dynamic, this is an area where i hire experts i think certainly cnbc and there are teams doing this i know how to do this myself its like performing minor surgery on your own body do you have see there are commercials left and right for effectively Insurance Services which claim they will cprotect your identity. Theyll pay you out. Would you ever sign up with them i think youre talking about things like life lock and trusted i. D. And that. Im too close to some of those companies and i use the servido them but i use two factor authentication look, i worry about this stuff all the time last week i upgraded the two factor authentication because another account i got comprom e compromis compromised. May 14th and 15th. I looked around my area of perceived weakness its consumer friendly in terms of upgrading the hardening. I like the quarantine beard looking good think about it. Cinupecomomg , onic data. Right now, theres over a million Walmart Associates doing their best to keep our nation going, while keeping us safe. Weve given masks to all our people and were helping our customers practice social distancing in stores. Weve implemented shorter hours, so we can sanitize our stores from top to bottom while also restocking our products. But if anything, these days have reminded us why we do what we do. Because despite everything thats changed, one thing hasnt, and thats our devotion to you and our communities. Were working together, instore and online, through pickup and delivery, to make sure you can still get the essentials you need. And as we move forward, know that our First Priority will always be to keep you and our associates safe. Still to come. Well be coming right back new h. So much character. Original crown molding, walk in closets. We do have a ratt problem. Round and round with love well find a way, just give it time. At least geico makes bundling our home and Car Insurance easy. It does help us save. Round and round with love well find a way, just give it time. Round and round what comes around, goes around. For bundling made easy, go to geico. Com 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 initial jobless charges. Its revised downward from 2. 981. The high water mark. What a big number. That is a new alltime high for that the previous read of course was last weeks. Just over 25 million we hope some of these will come out. We have our may read on this a Business Outlook activity. Elgts 57. 9. Nothing looking very difficult its rather terrific tonight the 20 year instrument is 1. 196 its close to unchanged. If i had to Pay Attention, i would think thats around 3 4 of 1 we cant seem to jump above that that brings a bit of pessimism even on the back side of the coronavirus. Joe, becky, gang, back to you. Rick, stay right there. Were joined right now by our own mike santoli and Steve Liesman. The market not really reacting to these numbers its in light with what weve gleaned. What you want to glean is. Other benefits. Its pretty darn there and its worth following up thats a data entry error. Now they brought it down by the amount of the connecticut data entry error. Its coming down more. Others are going on. I will say one thing im looking at georgia its slowly opening up its making moves to that. Claims youre up by 33,000 looking at some of these other states here, becky, very quickly, florida theyre not declining it these claims are going to be dropping in one place and rising in another you also have the economic effects that were going to be watching continuously. First they shut down because of a concern about the virus. Now you may have shutdowns because of the lack of Economic Activity around the business, becky. Steve, the claims from last week was brought down by 200,000. Connecticut had a data entry error of 200,000 people . Yeah. Actually, if you want to be a little more detailed about it, it was 290,000 people. Yeah i dont know if you remember when it came out i said, wait, what the heck is going on in connecticut . And i didnt know but it turned out they had a data entry error and then their department of labor owned up to it and now its been restated it looks by that amount is responsible almost entirely from the restatement from last week mike, obviously the market not paying a huge amount of attention to this. For longer term what does the market need to know . What numbers will be important to try and decide if these are people who are getting temporarily furloughed or people who are being more permanently let go becky, its time to Pay Attention to continuing claims get some sense of the reabsorption of people put on furlough so right now i think its obviously been very messy data its been this massive rush. Everyone expected it at this point or maybe in the next several weeks i think you might get a little more attention on exactly whether these reopening efforts are going to be pulling people back into the work force. Nobody has Great Expectations on it other things people are looking at are Something Like the market pmi index were going to get on. Things that are showing what may look like. Its showing the premise obviously april was the absolute low for Economic Activity. It was forced in that direction. Very slow moves off of that bottom the question is, how much is enough for the market. Weve gotten to the dynamic where any incremental progress towards increased activity seems to be enough to support the idea that some of these very, very beaten down areas of the market that were most at the center of all of this have improved. I guess its at a certain price for those stocks, it has to be better than just off the bottom so to speak. We had Boston Properties with us earlier most of their properties are Office Properties. When it comes to Office Properties, a large portion, more than 95 . North of 97 are paying their rents on time. They have five properties that are retail though. When i asked him about that, he said theyre probably, what did he say, 30 to 35 of those tenants who are actually paying in full and on time. Is that a surprising number . Is that what the market had kind of figured was happening for retailers that had been shut down and werent bringing in any revenue . Im not sure its surprising for that real estate portfolio necessarily because as i saw the interview and as he said, essentially its kind of the shops in the lobby of the office buildings. So maybe thats not a big surprise i do think theres a lot of concern about a next wave of, you know, talking about these big restaurant Companies Looking for forbearance. The good news has been on a residential side there hasnt been as much of a skipping rent payment effort as maybe people were braced for. This is i think the ongoing sort of wear and tear on peoples ability to cover their bills that everyone was concerned with and for now weve maybe set it aside because it seems like if you can get to a quick point of reopening, then maybe the fiscal support and what the feds doing can hold things together those are exactly the sorts of things where we dont know you look at the open table restaurant reservation numbers by city or state and some of them have really shot higher but theyre still down 70 year over year where does that settle out what number is that going to plateau at thats going to cover the distance from normal rick, other things that youre watching. Mike had mentioned pmi coming out a little later than normal what are you keying off of and hoping will give us a sense of where we go next you know, i dont know that im at any point where i can say any group of numbers is going to give me confidence i think i look at it more in a macro vision and that is the worst numbers we are going to get most likely as mike eluded to are going to be april numbers. So i think many that are trying to envision what type of recovery this will be at least from the standpoint of data, i think there will be somewhat of a v recovery even incremental openings state by state, whether they open 25 , 30 will make a huge difference in the comps and i think the worst comp is going to be april. So moving ahead i expect the numbers to improve the issue will be if they improve and better than a linear fashion and we just dont know that yet we dont have enough history steve, ill ask you the same question becky. What kind of numbers are you watching yeah . I love listening to mike santoli who takes the Economic Data and puts it in the context of the market and i try to look at it from more of an absolute Economic Activity point of view and mike is right and rick as well that april may end up being the low. Lets talk about what the absolute numbers are you do minus 56 on philly fed in april and, you know, its better but its the may number was minus 43 that by itself is absolutely horrendous i wonder if its a time to start a conversation with when do we start to see what rick is talking about, this rebound where its not enough for the market to be bouncing off the lows maybe that will be okay enough for the market but at some point you have to say, show me something here it starts to raise expectations for the data in june we start to see something at least approaching the zero line even though its probably too much to expect to cross the zero line towards being positive. I think rising Interest Rates would be a positive. Im sorry this is tough listen, mike and steve, i both want you to think about this we like low Interest Rates feds talking about pegging certain Interest Rates, but at the end of the day a steepening curve led by rates going up on the entire curve with long end rates moving up faster but not threateningly, to me that would be a great sign. I think the easiest sign of all is to see us approaching a 1 ten year at a time where the equity markets hold their gains. Mike . I completely agree with that. The equity market has one eye. For the overall market, yes, the s ps background was in october it seems like its maybe ahead of itself. Gm goes from 35 to 17 and now its 25. Hilton goes 112 to 55 and now its 127. The parts of the economy, those stocks are nowhere near where they traded three months ago. Thats the subtlety underneath the surface of the index mike, rick, want to thank you guys very much steve, you thought you were going to skate by but happy birthday, buddy. Oh, thank you yeah not much time for that, but very nice of you to say happy birthday. We hope you have a great day joe, well send it over to you. Thanks. Becky, thanks. Coming up, were going to talk markets and whats on pace to be the best week for the dow and the s p since early april. A corn advisories David Gerstenhaber joins us. An alert on boeing rbc initiating coverage with a 164 price target and an outperform rating. Airline concerns and the 737 max crisis not with standing rbc says it sees a favorable risk reward profile in boeing stock and thinks its defense business is being undervalued. Stay tuned, youre watching squawk box on cnbc dont forget to subscribe to our podcast. Youll get interviews, original content and behind tthescenes acce access look for us on apple podcasts or on your favorite podcast app and subscribe to squawk pod today. Thats why we create moments to feel kohler clean, every day. Welcome back to squawk box. I want to draw your attention to something that shows you how polarized the opinion is in this country. Regarding the federal response to the coronavirus cnbc and change research asked likely swing state voters for a one word description of how President Trump has handled the pandemic you can see right here the divergence of views between democrats and republicans, it is striking when we come back, were going to check in with jim cramer as we make our way towards the thursday morning opening bell then well talk with David Gerstenhaber check out the oil this morning its up. Easing fears of a supply that help push wti crude for the highest level since march. Ayun36 a barrel. St ted squawk box will be right back. I came across sofi and it was the best decision of my life. Were getting a super competitive Interest Rate on our money. Were able to invest through the same exact platform. I got approved for a loan and it was a gamechanger. Truly sofi, thank you for helping me prepare for whatever the future has in store. Welcome back. Starbucks out with an update on its own business comp sales in the u. S. Have regained 60 to 65 that tracks above its forecasted the comp sales in china reach about 80 . Actually, right . You didnt bring any milk. Lets get to cnbc headquarters jim cramer joining us now business is better. Youre going to start to see this this is the only thing to be recognized were not getting any physical distancing its very adaptive strategy. Ang to go higher i didnt think there was a claims number one way or another thats going to move the markets, but we have paired. Down 27 now. You dont think because it was lower than expected and revised, does that have anything to do with a firmer feel this morning . I think also, we didnt get any more tweets directly attacking china. China i think the tweets are a little jarring each time because you just never know whether you should sell apple that day they have become algorithmically linked i know thats not what the president wants, but thats what how the market perceives it. Were still wondering, arent we, whether we realize, in a period like this, its symbiotic to come extent between china and the u. S. , we need their economy for us, and they need our economy for them i agree but theyre not great actors, we know that. As you have pointed out many times without i think you come on a lot of times and over there, its a black screen immediately. I would have loved a headsup tromthem, for instance, that the first three days it spreads, even though you dont have it. That would have been a dynamite headsup to give us. I looked it up a few times because people talk about the trump interview. On january 22nd, they put out the possibility now we think there might be human to human transmission that was on january 22nd the possibility there might be humantohuman transmission. Thats late. Thats why the february 3rd journal the article was so bad dr. Fauci rote all the information he had was it could be a bad flu season it was based on the data, but where was the data coming from from our friends in china. That was great data. Geez if i did that to you, you would say, you go to philadelphia, say i cant work with jim cramer because what he did, he just lied to me but no no, we respect the chinese because they own a lot of mine share. Thats the way i look at it, and institutions but remember, the russians were the bad guys exactly all right, cramer, well see you in about seven and a half minutes and counting and dont miss a big lineup tonight on jims show, mad money. The ceos of take two interactive, target, and palo alto networks. Ah, nikesh, my golf buddy. He hits it so far. Relative to you huh i hit it far far out of bounds. The market rebound continues. Yesterday, the s p 500 hit its best level since early march, and the nasdaq closed another 2 higher its now less than 5 from the alltime high. Joining us for more is david, the cio of acorn advisory capital. You have weathered a storm or two. You have seen some difficult times in the markets i know youre concerned about whats still to come what are you weighing right now, what are you thinking through . Sure, becky its nice to take to you and everybody else thank you for having me. My perception is that the markets are now trading what i would call the euphoria associated with the peaking of the virus curves unfortunately, in my poin, the markets have not yet come to terms with what i expect to be the longterm economic damage associated with this event i want to preface this, which i havent done, by saying forecasting at this juncture with so much uncertainty is difficult. We should be humble and not be too stubborn, but in essence, i think we have created a substantive swath of longterm Unemployed People who will not reenter the workforce, and that will result in a decrease in aggregate demand, effectively the size of the economy, but its not evident yet because of all of the Government Support payments which are resulting in putting t money in the pockets f these people and carry on with buying their basic necessities, ordering over amazon, et cetera. My general thought is as these support payments run out, which may be at the end of september, although its an Election Year and they may be extended, potentially at a lower rate, we will begin to see the impact across a number of areas of the economy of these people not having the spending power and also not coming back to work david, that was going to be my next followup question with that what happens if the government money is extended, which it may very well be if youre still talking about tens of millions of people out of work. You are, so i think youre forestalling the program a sidebar comment is this will lead to an even more dramatic increase in the size of the government deficit which at some point will have to be paid for and building up ever higher levels of debt and having to come to terms with the debt servicing associated with that will be a drag long term on the size of the economy, so yes, correct, becky near term, if they extend this, we forestall the program, but at some point, this will run out and if you take a close look at the last employment report, 81 of the people who reported themselves as unemployed reported themselves as temporarily unemployed i guess my gut reaction is i hope thats right but i think it will be wrong. Why do you think it will be wrong . What happens to put these people permanently out of work . What businesses permanently shutter . Its the obvious businesses, what i would call the highcontact industries. Restaurants, barbershops, other areas where we need to be in close contact with people. The other thing that strikes me as relevant that hasnt really been talked about a whole lot is people over 60, particularly school teachers, as i understand it, and also those with comorbidities, will be less likely to want to return to work, even as their places of business and their schools are reopened and one of my nontrivial concerns is if the autumn comes around and schools in various areas decide to continue doing things virtually, school is effectively day care for a lot of families. And if these schools cannot provide that day care, then a lot of parents cant go back to work, even if their places of business reopen. David, i have to ask you for disclosure on this are you short the market i have some puts, but in terms of aggressive positioning, no and that speaks to the first point i made or meant to make, which is i dont think this is a time to be a hero. I dont think its a time to take huge bets one way or the other, becky i think its a time to keep some powder dry i think there will be ample opportunities. But yes, i think the market has run far enough, and if i look add it from a numerical and quantitative standpoint, last year, earnings were roughly in the mid160s for the s p if you lop off the value of buybacks in terms of that eps number, you get to the high 150s i think well have at least a 7 loss in efficiency and in terms profitability when the economy finally comes back to whatever its trajectory is going to be. That gets me to 150. Again, i think it will be a while before we get there. That puts the market effectively at over 20 times at this point which is a high multiple within the context of the last five, ten, however many years. Its not high relative to the tech boom, but it is certainly elevated relative to long term and even medium term norms that being the case, i see the risk reward as asymmetric. David, you know, i have a question about maybe a bias, and its been my own bias living in the new york area. I have also been skeptical of people wanting to go to restaurants and getting their hair cut and doing all these things, but i will tell you, when i do either reporting or call friends, i was on the phone with a friend in memphis yesterday who was talking about how everyone is just, you know, Walking Around as if there isnt a pandemic, part of me wonders whether we have been so psychologically scarred in the new york area because its been so hard hit that when you start to extrapolate the new york experience out, yes, the market doesnt look right, but maybe the rest of the country is in a different place . Andrew, i think thats an extraordinarily important point. The new york metropolitan area was clearly the epicenter of the virus and the numbers there have been substantially worse than they have been elsewhere, and i think yes, there is a bit of a bias as a result of being in that area. But one of the things that we need to understand is that we will almost certainly see as a result of the reopening a spike in numbers elsewhere in the country. Particularly as people go back into their various work places so that represents to me a possibility of some bad news that may occur over the next handful of months, and you know, i would also make the comment that with respect to the new york metropolitan area, where clearly people are getting cabin fever and want to get out, the numbers may deteriorate there as people begin to legally or illegally get out, not social distance properly, and the question then is how the government reacts to that. David, thank you very much for your time. Its great cito see you that does it for us today. Right now, time for squawk on the street. Good thursday morning welcome to squawk on the street. Im carl couldnquintanilla withm cramer and david faber another 2. 4 million americans file for unemployment. Down slightly from last week but totaling