Transcripts For CNBC Fast Money 20240713

Have been a major swing. Check out what Lloyd Blankfein tweeted. Hospitals are not overwhelmed. Most will be exposed anyway since we cant sequester until there is a vax is a Public Health benefit from broad lockdowns worth such extreme damage to livelihoods and what is more important, the potential human lives lost which are, of course, very important or the toll on the economy and possibly irreparable damage to the economy. Tim seymour . Well, look, now, if you think about where lloyd was on april 24th, i follow him on twitter, by the way i doesnt tweet that often and when he does, hes got something to say and a month ago he was saying im not so sure its wise for states to be opening but thats why we have a federal system where states can do what they do and was somewhat critical of georgia. Here he is coming in and talking about a more populous line theres politics attached to this i think theres economics attached and fascinating its whats happening and do think Lloyd Blankfein jumping in when some might have expected him to be one of the folks we h weighing on a more conservative tone to lay low and let the virus be the number one concern, hes saying, the economy might be the number one concern right now and lloyd is someone we all listen to. The point you made earlier on our call to get ready for the show was interesting and that is, lloyd is a registered democrat that is a known fact and so for him to come down and break down sort of the political divide, unfortunately, the issue of reopening the economy became a political one and so he sort of breaks down those barriers at this point, dan nathan, and maybe well have a much more robust discussion about the cost to the economy, the cost to live. Lively45 live livelyhoods and all these things we need to weigh who is going to get sick the political one is a curious one. I look at this view, this tweet from blankfein its kind of bandwagonish. I dont think hes saying anything that most people dont already feel and so to kind of make it a political thing is kind of goofy. New york is one of the hardest hit and its a blue state. California also a blue state took some pretty significant measures even earlier than new york state and represent 25 of the u. S. gdp. I think its a goofy political argument everybody wants to get back to business everybody wants to get to normal the quarantine and shelter in place was to avoid a Health Crisis bigger than what we would face as far as the deaths from the virus and we have successfully done that i think everybody is in agreement. We need to get out of our hopes and back to work and be safe bit. I think there is a sense of irony, though, that the people who are waving the flag the hardest to get back to it are the very ones who will not listen to the scientists and will not wear masks and do social distancing. So, you know, well find ourselves in a very weird situation for the balance of this year until we get more therapies, you know, and really progress on a vaccine so i think investors who are thinking about this through the stock market lens should be fully prepared for flareups and potential further lockdowns and that is the real worry i will say as far as risk assets are concerned for the second half of 2020. I guess i bring up the political aspect only because if it does seem that everybody is sort of getting behind this message at this point. It does seem that way that thats sort of the prevailing sentiment that perhaps what the stock market is riding on, b. K. , is not justhope, i mean. Its sort of like we are here and we have made it to the other side and isnt that a reason for the stock market to be higher . Yeah, certainly i think thats one reason why as people have kind of looked through the valley as the cliche goes and said, hey, were on the other side of this the country has reopened, by the way. It has reopened the whole country did not even shut down all that much. I dont think were going to have a lockdown ever again this this country based on people im talking to, what i see, i dont think you lock this country down again. I think we have one giant wave as we go for herd immunity is really the choice weve made whether its political or not, thats the choice that weve made so investors have to be prepared for that and if the investors are saying, hey, listen, as long as these companies can hold out until we get back to some kind of normalization, then, all right, then ill hold on to these stocks but if you dont think that thats going to happen, if you dont think the liquidity will be there then have you a problem with the stock market. Remember, i am sympathetic yep. No, i was going to say, you know, you mentioned herd immunity and the notion of a giant wave the interview with Ricky Sandler on squawk on the street. He wrote this open letter and at one point maybe we should all try to accomplish herd immunity. He could see a world in which there are concerts where young people go and catch the virus and develop herd immunity. Does this pave the way for investors to accept, you know what, i mean, if this is it the outcome were going to go for and were going to brace for this wave and so therefore when it comes to the coronavirus and the pandemic being an impact on a trade, its much easier to sort of die jest if thats the base Case Scenario youre factoring in i think weve digested a lot of this scenario already and when you think about that, you know, weve gone luann earnings season largely completed. In some cases florida cap tech land stabilization, those types of words were used so investors and the market are looking at three things, theyre not looking at 2020. Theyre looking at the end of 2021 and thats how were all doing our earnings multiples at this point and fair, fair enough, thats it. 2020 is a mulligan central bank mania so the fed is out there, powell is basically continuing to talk about his bazooka much like paulsen did and a case where weve had this enormous fiscal and monetary response, monetary outweighed fiscal. Fiscal decent. Threats of more fiscal or maybe more and finally a case where whats going on in the economy and what weve seen in china is that you get a pretty quick snapback but then you start to level off and that, in fact, you are starting to see some of the pain of a lot of companies actually, you know, coming back at 70 of where you were is awful, all right so i think that back to herd mentality. Back to what we do should we be here on the stock market probably not but we have donethis with Central Banks before and i think largely removing at least the credit obstacles that were in the market is part of why the market is able to now take that next step forward so i think weve i think the markets in herd mentality and dan referred to well get on with it and there will be some painful moments here in the next six to eight weeks if not six to eight months as we realize were not coming back and our kids are probably not going back to school makes my kids happy but i bet the fall is very different than last fall. Dan yeah, i just think that the difference this time to the last crisis is that the economy is fundamentally changed. To tims point youre lucky if youre a business and youre coming back at 70 of your prior revenues the way you have to sell your products and Services Going forward is going to be totally different. The costs are going to be higher youre going to employ fewer people so i think what the market doesnt discount right here is the fact that, fine, we may not get slammed with a second wave we may not have further lockdowns but until there is a vaccine the economy is different. There are going to be way more people unemployed. That means way less Discretionary Spending here and so i just think theres just no focus on that whatsoever so we may spike up to 25 unemployment we are likely to settle in somewhere for the balance of 2020 and 2021. Somewhere double of where we were at 60year lows just five months ago on the unemployment you tell me that you get a v reversal in the economy like that youre lucky at 2021 if we are back to prior levels and the s p 500 is trading over 20 times 12 months out p e right now well above the 17 average over the last 5 years and 15 average over the last 10 years so at some point i think the market is clearly v reversed i dont think theres anyone on the program that didnt think that would happen at some point. Its just overshot largely because of that bazooka then the uncertainty about the economy. At some point it will seem in this summer, i suspect. Were just Getting Started on this special edition up next tackling four more big money stories from this week including wild moves in biotech and the china factor coming back into play in a big way tuheweat and much more wn rern yes. The first word to any adventure. But when allergies and congestion strike, take allegrad. A nondrowsy antihistamine plus a powerful decongestant. So you can always say yes to putting your true colors on display. Say yes to allegrad. To putting your true colors i geh. Common bird. E. 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. Some major news from moderna. But up by 20 the futures themselves are picking up. Moderna, the stock of the day, that pharmaceutical giant that announced promising results, early results and its vaccine trials just announcing a secondary offering. The vaccine were to be successful, the stock would be 30 higher where it is now and it would be a better time to do a secondary so label me skeptical. Story from stat news getting some attention this afternoon. Potentially moving stocks, the headline vaccine experts say moderna didnt produce data critical to producing covid19 vaccine. Moderna, of course, finishing sharply lower. We stand by what we say we felt the Company Following the results that it was prudent for us to add to our resources and invest directly from our Balance Sheet. Even though its a small number of individuals and its the first step in a multistep process, it was still very encouraging. And there you have it, story number four this week, moderna taking wall street on a wild ride this is the ultimate hope trade for the markets. For the economy. Were all hoping for a vaccine what do you make of this trade weve seen this time and time again with smaller bioteches moving closer to some form or fashion of a vaccine well, right, and this vaccine clearly whoever comes one the first one, its going to be a blockbuster vaccine for them so, you know, we saw a lot of hope on this theres eight out of eight some doctors say that that seems to be pretty good. But its eight people. So youre subject to these things, stories we saw, maybe there werent enough people. I took stats 101 if you only have eight people in your sample size thats not really statistically robust, nonetheless i am hopeful i want to go outside b. K. Likes to play outside so im looking for that but in terms of investors, this is just pure hope right now. Nobody has any idea whether or not this is going to work. If it does work, can they manufacture it how long it takes to manufacture it who, is going to be the first people to stick this thing in their arm and see if they get sick, oh, yeah, by the way, we need it for a couple billion people. Oh, and by the way, governments want it for free i mean we dont know how much money these companies will actually make if anything on any of these vaccines. When you take a look at billions of dollars in market cap, three or so in the case of astrazeneca or moderna, a 20 stock pop, tim, you have to back up and wonder, is that market cap being added . Is that even going to come into play when the Company Releases this product in terms of making money . No, because and as i was Reading Research reports on that day on especially also with the secondary, they were raising that extra 1. 3 billion to work towards the actual dosage, not only to complete the testing, and then they Start Talking about a billion doses at 10 bucks a pop and, wow, this could be a 10 billion revenue for the company. I mean, that kind of calculation is really irrelevant right now moderna was s p option nationaln the same way gilead three or four weeks ago on this show was. So it was a case where i think, you know, if you look at all of the biotech news, its news for humanity i look at the ibb which used it as your proxy, the etf, six or seven largest biotech names that make up the top 50 , that stock, that etf was trending higher for the last year. Biotech stocks in an environment where people have been concerned about Balance Sheets and people have been concerned about earnings, you know, regeneron, amgen, gilead even with its issues with hiv drugs that have seen their best days, these are still cash flow Generating Companies and these are still great Balance Sheets with a fair amount of optionality. Thats why i think youre buying biotech before covid19. Thats why you should be buying them now and basically moderna, gilead, abbott, you name it, astrazeneca, s p options for the market. For right now, dan, tim brings in a good point the trend prior to the pandemic, prior to this whole notion of a vaccine coming about, but given that theres some froth. When you talk to michael at jefferies, he said the flows have been strong in the past few weeks and believes that most of that has been Retail Investors we cans, in other words. Thats a great point. I was on that night when we had him on and, you know, when you think about it, i think bku is the term hopium stocks are supply and demand it was a teenager in february and then it traded as high as 85 after the news came out that they had, you know, possibly some good data on this vaccine give the people what they want they want to buy your stock, sell the stock to them they did it in a big way they put 1. 2 billion on their Balance Sheet which basically ensures their survival no matter what happens with their success on this vaccine. Lets hope that its good data lets hope it was on the up and up, the whole process, i dont know how you can argue against that one last point ill make, if youre looking at the Options Market, the expectations for movement continue to be just crazy off the charts looking a week out, the Options Market is implying about a 10 move in either direction looking a month out its looking like a 25 move in either direction so my point to retail would be understand what youre buying, you know, tim just said optionality, those are very expensive options especially after a stock has moved 250 with very little data yeah, i actually think thats a great point that dan brings up youre talking about something thats going to move 25 in multiple weeks if youre out there as a Retail Investor and just did a story about how some people are taking their check from the government, putting it into the market, youre just ladling on top of this if youre going to be playing options, youre ladling on leverage on top of an already volatile underlying stock here, so to me, its extremely risky its a Lottery Ticket at this point in time but i do think tim makes a good point this is like a call option on the s p 500. So to me if im going to do that why not just buy the s p 500 calls with the vix down here below 30, much better way to play it. Coming up the countdown continues with the three cs. Were talking china, Corporate Taxes and commutes this special edition of fast money is back right after this. This is decision tech. Find a stock based on your interests or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. Welcome back to this special edition of fast money. Two down, three to go, but got to take a fast break it is memorial day weekend so i have to ask, is anybody have travel plans tim, going anywhere . Im going to be wearing out a path between my house and my smoker i know you like to do a nice 13, 14hour brisket smoked very slow, very slow on the smoker. Kind that have oldfashioned choochoo train. Thats what i do and thats what memorial day is all about in my house. I wouldnt be going anywhere anyway and this year is extra focused i have a 16pound brisket. I think it will take me 12 to 13 hour, take the over under chilling bud wisers along with that, waving the flag, drinking. Thats memorial day, right thats what we do. Dan, ive seen some pictures of your barbecues. They look awesome. I dont know if that will happen this weekend you know, mel, our invite must be in the mail. You know, because tims barbecue sounds amazing. Its on its way. Mine is more sentimental. Tim is just going to do the beef and the beer you know, im missing my parents here i havent seen them in four months im going upstate. Ill see my parents, my sister i think my nephew. I think this is one thing we kind of as a species kind of hit a breaking mountain of being kind of caged up at this point, it speaks to what we were talking about earlier in the show, were ready to go out, interact with other people but got to be safe got to wear a mask and do the hygiene and social distancing, that sort of thing and that will be the real test for this country, you know, we did a great job in the lockdown for the most part and flattened the curve and got to a point where we can kind of handle this thing as we move towards herd immunity but now its important actually to reconnect with our loved ones and, mel, im missing you. I havent seen you since february maybe well get a smoked brisket and bud widers going this sumer. This has been the longest period ive been away from you guys ever. I mean in however many year, 13 years and it really hurts i really feel it its not the same. Its nice to see your shiny face, b. K. And love to see the dog run around in the background but not the same as being facetoface yeah, its not the same and ellie and tallulah want to be on tv they think theyre superstars. It is not the same you know, like dan said as human beings we want this contact. When you think about how youre going to travel in the next lets call it six months or so, its unlikely you get on a plane. At least its unlikely for b. K. To get on a plane but ill hop in a car and ill see family or friends i havent seen, kind of make that, you know, the quaranteam is the word everybody is using, get your quaranteam together people that you know have been kind of at home, havent necessarily been exposed or low risk of exposure i think you see a lot of car travel you know, the other thing is Business Travel. Lets talk about that. I mean, you know, i had planned in the spring, march and april, i had planned a trip or two to asia everything that i had going on there got canceled and its unlikely i will go to asia until 2021 at the earliest its socially acceptable now for me to do this type of thing so why wouldnt b. K. Hang out and do that . He doesnt have a fancy smoker and smoke things like tim does b. K. , you got a boat. I want to go on your boat. I do. Its a dinghy. I want to get on your boat. Coming up tensions rising with china big developments breaking out in the past 24 hours. We will tackle that and the rest of this weeks top stories, a special edition of fast money is back in two this is a tempurpedic mattress. And its mission is to give you truly transformative sleep. So, no more tossing and turning. Or trouble falling asleep. Because only tempurpedic uses proprietary tempur® material. That continuously adapts and responds to your body, to relieve pressure. So you get deep, uninterrupted sleep. All night. Every night. The tempurpedic summer of sleep starts now, with all tempurpedic mattresses on sale, and savings up to 500 on adjustable sets. Welcome back to this special edition of fast money. Were counting down the five hottest stories. Number three, china, tensions rising on several fronts lets get to Kayla Tausche for the latest reporter china acknowledging it cannot control the economic toll of the coronavirus. The country this week scrapping its annual gdp growth target for the first time in nearly three decades but the Chinese Communist party is seeking to impose control where it can. Introducing a new Strict National security law in hong kong that would crack down on protests and gatherings and critics say it would likely strip the semi autonomous territory of the few freedoms the people enjoy that mainland chinese do not stocks in hong kong fell more than 5 as Global Leaders widely condemned the new law which could go into effect in late june secretary of state mike pompeo said for his part that it would be a death knell for the high degree of autonomy beijing promised for hong kong and that enacting it would cause the u. S. To reevaluate its policies towards the territory. With tensions mounting in recent weeks the u. S. Has taken a series of actions to limit business and investment with china. The Labor Department discouraging federal Retirement Funds from investing in indexes with chinese stocks. The senate this week passing a bill threatening to delist from stock exchanges. Companies with Chinese Government ties and the Commerce Department just today announcing 33 Chinese Companies will be banned from doing business with u. S. Counterparts. Americans too have become increasingly wary of china in a recent Morning Consult poll 31 of respondents described china as ang enemy thats a rise of 11 Percentage Points just this year and, melissa, the rhetoric will only get hotter with President Donald Trump and Vice President joe biden spending a reported 12 million on campaign ads just about china. Melissa. All right, thank you. Kayla tausche in washington. Its been sort of a drip, drip, drip of increasing tensions, tim. It seems like the market at a return has been sort of inured to it at this point. How much of a mistake is that in your view or should we look past this i think we cannot be inured if you think about what the head winds were on the trade front, this is effectively doing that and maybe and then some. The nationalization and security measures against hong kong are very significant and, remember, the hong kong protests and remember that was almost independent of trade war and what that meant and the concern around hong kong were important. You know, the fact that china scrap the their gdp forecast is kind of like the cfo in todays Earnings Results of any company. You know, first of all, i think thats good news i dont think its bad news but between whats truly going on on the trade rancor and that is being ratcheted up obviously when congress is teeing up legislation against Chinese Companies listing here, youre seeing folks like the nasdaq being concerned and enacting more stringent rules, youre starting to see what gives way and alibaba had numbers out also and those were fine, but finally gave way and if you look at the eem which is 12 ooh 12 or 13 between alibaba, then cent and China Construction Bank and a lot of exposure for emergesing markets to be exposed here so this was a very difficult week im long alibaba i think the fundamentals there are very, very solid and if i look at megacap Tech Companies and secular trends going on their online spemdz something up 80 year over year i love that but hate this news and i think its going to get sloppy you know, its just interesting, tim you mention alibaba and have this benefit over the last ten years of this emerging middle class of the chinese with all of a sudden this disposable income to spendand obviously thats becoming far more nationalistic. I think them pulling their gdp targets and theyre really slow to put in some stimulus for their economy tells you that things might not be going nearly as rosey in china as we think and president xi is in a tough spot what i take that back to is that he cannot look weak in front of donald trump who might not be president come january 21st, 2021 and i think theres a dramatic potential for this thing to escalate over the balance of 2020 because just like trump cant give in in in an Election Year president xi has a lot of president and the Hong Kong News this week is the most important thing going on because we kept our mouths pretty silent when there were hundreds of thousands of people protesting in the streets last summer because we were trying to get a trade deal done to turn that thing upside down now and be very hawkish about it, i dont know, it looks political so i would expect this china thing to stick around and its not going to abate before the election and i think that will be a head wind to growth globally yeah, you know what, it is a headwind and you know whats interesting, im actually really digging this kind of long form fast money. We get to talk about a lot of Different Things so b. K. Will take a second here and hes going to talk about what were witnessing is what people call a trap it describes what happens when you have a rising power challenging the former power and thats what is going on so you can look back in history and see this happened with Great Britain and the u. S. Its happened many multiple times throughout history unfortunately t. Doesnt really end that well and thats why i think this is probably one of the more concerning things that are going on out there i mean best Case Scenario end up in some sort of trade war and or deglobalization which i think is happening anyway worst Case Scenario you end up in kinetic conflict which is not great either i dont want to be in either of those so i do think you have to keep your eye on this. I do think you have to keep your eye not just on hong kong but remember thigh want as well. China changed a wording in how theyre going to kind of reintegrate taiwan from a peaceful reintegration to simply just an integration. And thats very big when it comes to kind of signaling on the geopolitical landscape so i think you watch this space to me it is probably one of the bigger threats to markets in general. All right lets bring in a former Deputy Director of the National Economic council for more on this emerging cleat coming from china. Clet, as you inpterpret whats going on, National Security laws in hong kong, how do you interpret these actions and what do you think xi jinping is seems like hes on his back foot now. I think thats right and agree with a lot of the previous commentators in that this is a worrying escalation and do think its something the markets need to be paying more attention to than they are. And i mean the stuff thats happened in the last couple weeks is mindboggling you know, you have china being increasingly assertive, very provocative moves this week on hong kong. I think that the language change on taiwan is significant theyve got, you know, what they call their wolf warriors on twitter. You know, out there attacking the u. S. Add bhgs, attacking the u. S. President which is a very big change in tone for them. So im very worried about that you look whats happening in the u. S. And all the action that is weve taken. You know, whether its the export controls or the changes in our investment programs, the possibility of delisting of stocks, now, i want to be clear, i think some of what were doing is very justified. I mean china is an international outlier in terms of not providing our regulators with access to audits so that we can assess financial viability and we need to do something there. But what worries me is just the frequency of the actions on both sides and the language that accompanies it language where were essentially calling each other the enemy and so i mean i see this major escalation i dont know what one of the others mentioned this trap you do seem some of that going on and the way to get out of that is for the International Community to step up if china sees this as the u. S. Being threatened and trying to keep it down, that elicits one kind of response but if china sees its an international outlier then maybe we have hope to get off of some of the worst outcomes here so we really need to see others step up on all of these issues i mean that would be ideal but we have seen this time and time again in terms of tensions between the u. S. And china its always been its been bilateral and thats the way the two sides or the way the u. S. Wants it if thats the case, cl et, what do you think . If its a tit for tat and china retaliates what, is the retaliation . What is the most likely method of retaliation right now well, it depends on what the issue is i mean, what china always likes to do is act reciprocally. They like to try to maintain the moral high ground by saying, oh, the u. S. Did this and therefore were going to do something in the same sector, you know when, we raise tariffs, they raise tariffs. When we do things that relate to investments theyll do things that relate to investments so i think, you know, it depends on the issue but i think in many ways what you see in hong kong and taiwan already is a response you know, they see this dynamic shifting in the u. S. And they are therefore becoming increasingly assertive and throwing their weight around, trying to in the international stage. Clete, great to speak with you. Thank you. My pleasure. Clete will probleems. This is another form of a an iteration of a trade war people assumed supply chains would be disrupted and companies would be forced to move out of china. How does this ramp intentions escalate that or accelerate that well, think about it, mel china was a great interest just look at alibaba since it listed here, tremendous ownership here but i think it reinforces the megacap names that are not in china, the u. S. Names that are listed here look at facebook making new highs, you know, this week, amazon, again, not in china, you know, the apple is the real issue here, right . They have their phones and their Computers Made over there. Theres millions of chinese through contract manufacturers that are employed to do that the supply chains exist around that they have special treatment by the chinese for this so, you know, to me apple again is always going to be the last battle fought in the trade war but, again, they dont seem to care at least investors dont right now. Its really hardware ones that id be most concerned with right now. All right coming up, we reveal our final two stories of the week. Both could have an impact on american business. Well lloullte y a about it when we come 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. Welcome back were continuing our countdown to the five biggest stories this week our number two story, Joe Scarborough joe biden targeting amazon this morning. I think amazon should start paying their taxes okay i dont think any company i dont give a damn how big they are, the lord almighty should absolutely be in a position where they pay no tax and make billions and billions of dollars. In that same interview he is pushing to raise Corporate Taxes. The Corporate Tax rate, id move back to what i had proposed at 28 but we had proposed a 28 because i want to make sure that we see that these corporations, thats not going to take them under. Should companies be worried that the tax break they got is going to be taken away tim . I think, you know, politically its expedient to talk about attacking fat cat corporates that pay a low effective tax rate i think targeting blanket higher Corporate Tax rates project isnt terribly popular i think targeting, you know, specific companies is easier to me this is not political analysis show. But to garner the widest swath of votes which means that youre actually, yes, youre throwing a bone to the kind of the mass population and talked about this 400,000 or less you wont see higher taxes, you know, thats an appeal to the masses. But i think, you know, the Corporate Tax cut that went through under the Trump Administration was something i thought was reasonably popular how effective it was is the big issue. So going after some of these companies i think will continue to be a trend and i think thats probably where youre going to continue to see pressure on a handful of those low effective tax companies. I think politically the way to garner the most support is to not challenge lower Corporate Taxes in america does this debate over Corporate Taxes change or get influenced by the pandemic, brian kelly . Im thinking about main street backlash, main street wanting to be bailed out and see Companies Paying low taxes why arent you paying more taxes so we can have other programs to help us get out of this pandemic theres no question at all main street is saying where is my bailout theres no question at all i dont think we get through this crisis without there being some kind of main street bailout. Its not going to be like 2007 2008 where the people closest to the spigot, those who had assets, big Equity Holdings were asset manager organization banks, theyre the ones that got rich and main streets Living Standards didnt go higher that will flip this time, i think but i think it will be really difficult to raise taxes. Its great that talk about in a campaign its really difficult to do. So where does that leave us . That leaves us with some sort of monetary financing people will call it modern monetary theory. You basically going to issue a ton of debt, fed will buy it we pay for everything and thats how we get out of this crisis. Im not suggesting that thats the right way to do it i think thats the path were on dan yeah, i think amazon is a pretty easy target this. Is a company that is supposed to do 340 billion in sales this year, have about 10 billion in net income and they have not been paying federal taxes over the last few years because of some tax loss carried forward and we are printing trillions of dollars to bail out our citizens but some point somebody has got to pay for it and ultimately i think you will see higher Corporate Taxes Going Forward and Companies Like amazon should be obligated to actually pay something, i think thats what the Vice President said, you know, enough with the trickery and lets do our fair share. I think its interesting that last year we had this huge debate about billions of dollars of tax credits for amazon Going Forward to come to any number of different domiciles here in the u. S. I just think that, you know, we get painted if youre bearish on stocks or the stock market, not a patriot, youre unamerican, youre hearing that stuff right now. Isnt it unamerican not to pay your fair share when your market cap is 1. 2 trillion and youre the richest man on the planet . To me i think theres other ways to do your part and just paying taxes even if its at 21 which is what the rest of Corporate America is doing at its max on a federal basis makes some sense to me. I think its interesting amazon can be the target but in this time of pandemic, it is one of the few companies in america that is hiring thousands of people and also delivering groceries even keeping us entertained while were sheltered at home so i mean its aan interesting time. Let me jump in. Let me jump in. Sure. Thats a great point except for the fact that theyre one of a handful of retailers that were allowed to be open and, you know, facebook issued this Small Business survey this week where they surveyed 86,000 Small Businesses, the numbers were staggering, about how few of them are going to reopen. I think maybe 30 of them will not reopen. 50 of them will not hire back the same workers so all of that, not all of that, you cant pin that on amazon but amazon in fact has a lot to do with that amazon just like walmart before it is killing, you know, mom and pop kind of businesses, so to me at the end of the day, you know, i dont know how you paint it with such a great brush like that well, i just, you know, i think if you look at walmart and amazon, they have been destroying the competition through price and, you know, they can be loss leaders and weve seen that walmart puts effectively is putting the crimp on every other retailer and taking major losses because they are dominating on price amazon has spent years investing in logistics and erp because they saw this day coming and theyre turning the screws now is it right to punish them for being that far ahead of everybody and having that type of infrastructure . I think it was important they were here. All right coming up, the moment youve been waiting for our top story of the week, the big trend coming out of the west coast that could have major ripple effects across the entire u. S. Workforce west wh ll be right back. soft music [female vo] restaurants are our family. The cornerstone of our communities. And our family needs help. Right now theyre facing a crisis. And theyre counting on your takeout and delivery orders to help them through. Because if we dont treat restaurants like family today. They might not be around to treat us like family tomorrow. Grubhub. Together, we can help save the restaurants we love. [music] [music] especially in times like these, strong Public Schools make a better california for all of us. Coming up, were moments away from unveiling our top story of the week, want a hint for some of you it may involve yoga pants or maybe no pants the big reseal when we come ghbaay trit ck stuned vo our communities need help like never before and wells fargo employees are assisting millions of customers across america through fee waivers and payment deferrals, helping people stay in their homes through mortgage Payment Relief efforts and donating 175 Million Dollars to help hundreds of local organizations provide food and other critical needs. When you need us, wells fargo is here to help. High protein. Low sugar. Tastes great high protein. Low sugar. So good. High protein. Low sugar. Mmm, birthday cake. And try pure protein shakes, with 24 vitamins and minerals. Welcome back now it is the moment you have been waiting for our number one story this week, the work from home boom. Twitter, facebook all announcing plans to let their workers work from home permanently. I sat down with governor gavin newsom heres what he told me no, i think that was a trend line that will become a headline i think weve accelerated change change that was already under way. I think some are promoting radical change i believe were just accelerating change that was under way. So that implies lots of ripple effects in terms of commercial real estate, in terms of residential real estate, tim seymour, in terms what have we buy and that goes to how i teased in tv parlance this segment. Yes, you did. This had to do with yoga pants because you work from home and not putting on real pants. Not putting on a dress none of that we dont need that you may not even need pants. I dont need no pants i dont need no shoes. Im barefoot right now and i wont let you pan down im in charge of panning down so you wont see it guy adami has a problem with feet so he wouldnt want to see it either but im not wearing shoes right now. I am wearing pants and ultimately i do believe some of these trends were in place i also believe that it was socially required to give this type of a mandate. Look, as someone thats been an employer, not anywhere near that size, i kind of like my people in the office. I think ultimately there are cost savings and i think there will be efficiencies borne out of this and less people will go back to work but idont think this is the new Corporate America and do think there are major impacts for people like starbucks and fast food and folks that are serving a commuter audience and obviously uber and lyft. For the next year and year and a half you will see a lot of working from home but dont think this is the new normal i think its part of a progression of where technology has allowed us to work but the office is the office. You know, tim, you just mentioned guy. He is a fabulous market prognosticator but i got to tell you he is also a great dad. He is at home celebrating lilly adamis birthday happy birthday guy, we miss you lilly on this work from home thing, its interesting obviously accelerated Trends Technology has been a big part of that but Corporate Culture is something that i think is very it is a very american thing. Weve one of the most innovative countries when it comes to technology and a lot has to do with creating ecosystems and Network Effects and i just dont see that changing much so when you think about the two industries that i know best, wall street and even Silicon Valley i dont really think they were meant to be decentralized i think theyre flexing right now because they have the tech to do it but i think when we get back to a sense of normal i think a lot of us will be back in those places and ill just make one other point wework has gone down in valuation. If we do have a decentralized workforce Going Forward wework will go back up to a 47 billion valuation at some point in the next five to ten years shaking your head, b. K. Couldnt disagree more with what dan said. Couldnt disagree more i mean first of all i rented about guy no, not about guy and parly not about lilly. Happy birthday to lilly. But in terms of the flex which i love that millennial term used and very hip, but i was in wework the other day everybody was moving out nobody wants to be in that dense environment like that anymore. Not only that, i can tell you i sent my team home in early march. I was concerned that we would lose something not being in the office i wouldnt be able to operate my business and i am shocked at how well i can operate my business in a decentralized and distributed way. That doesnt mean the office goes away but theres going to be a certain prjs of people that just do not come back and people have realized, hey, i can run my business from anywhere i dont need to be in the office its going to have impact not just on commercial real estate but residential real estate. Call any broker in upstate new york in Hudson Valley or the poconos, people are buying houses out there because theyre not going back to work and they dont need to be on a train line so i think this is a major shift that doesnt mean you dont need big buildings anymore but theyre not going to be as full as they used to. And its great that b. K. Is going to move to the poconos, b. K. , enjoy it out there mountain airy lodge is heartshaped tubs. Champagne glass pools, do you remember that . The bubbles . Exactly but i think, you know, weve spent no time we spent very little time great grammar, tim, talking about airlines on this show and if you think about where Delta Air Lines makes their most money its from Business Travel and what has been essentially the lifeblood of airlines has been the ability to move Business Travelers around at almost costs that seem to be indiscriminate national at points im worried about them and how they recover because it is a race against time right now in terms of cash burn for airlines. While i do think were going back to work i dont think theyll get back to full time and as i said before these guys started my view is were somewhere in between i think were going back to work but its very clear, you dont need to fly to london for that conference like you used to. Very clear that zoom or other offerings have changed the way were going to business meetings and that will change Business Travel forever. Maybe people wont necessarily want to embrace work from home as much as we think. I mine facebook is saying, let us know where youre going to be based then well adjust your salary so theres no arbitrage if youre thinking youll pull in a Silicon Valley salary and live in ohio, you know, where there is a lowercost of living thats not going to happen, sounds like. Well, heres the other takeaway you know, divorce rates are going to skyrocket in america if were all going to be working from home for too much longer. Ill leave you with that my marriage is doing great. Wow. The rest of you guys im worried about. They seem all right i think. Save him. Save him, melissa. Exactly well, thanks, guys, for play ago long that was a fun hour. That does it for this special hour of fast money. What an hour it was, wasnt it have a great memorial day weekend, be safe our special coverage markets in turmoil starts right now. On dayo145 of the coronavirus crisis, a reason for optimism and a reason for fear. Now is the time to depending on where you are and what your situation is, to begin seriously looking at reopening the economy. On the unofficial start of summer, the nations Top Health Official issues a cautious okay. The exciting thing for all of us, the decreasing mortality over time. But cases in some parts of the country still on the rise and so are