Allelectric suv this is Worldwide Exchange here on cnbc a very good morning. Good afternoon and good evening welcome to wherever in the world you may be watching. It is a good wednesday we have some very good news on the health front that has futures higher and should bring a little smile to everybody today. Moderna shares are up about 30 in the premarket. The company saying the vaccine is producing a robust immune response in early staged human trial with no adverse affects. Look at the stock. It is early. It is a long way to go this is good news whether you own stocks or not. Speaking of stocks, shares of reopened stocks are also surging on this news, royal caribbean, carnival and united are all sharply higher a vaccine a ways off and will take a long time to distribute changes the game for everybody, it is the news, maybe the only news the light at the end of the tunnel is getting a little closer the green carries over to europe on the vaccine hopes. Growing riffs between United States and china over the Hong Kong News as well. That is where we begin health data and other news with frank holland. Good morning to you, last night, President Trump ordered an end to Hong Kong Special status to punish china for what he calls oppressive action against the uk hong kong will be treated the same as mainland china, no special treatment and no export of sensitive technologies. China is firing back saying it will impose sanctions on u. S. Individuals and entities in response and retaliation back here at home, a grim milestone, almost onein five new cases of the virus reporting around the world are coming from three u. S. States. Texas, florida and california. After florida, alabama and utah reported their highest single day deaths and outlook for Dallas Federal Reserve kaplan saying this he will see an abovetrend growth next year as the country rebounds if americans continue to follow safety prot calls. However this year, the economy could see as much as a 5 contraction. Now to the markets and your money. Releasing quarterly results. They are going to take a backseat this morning. We have to talk about the health data cofounder of the spoke Investment Group i dont know how anybody could talk earnings when we have this vaccine potential news i get it it is early, there are trials. There is a long way to go. Are you surprised the market is not reacting overall moderna shares are soaring yes moderna is doing great this is great news if it goes forward. What is interesting to note, as we saw the market rally on some lower case counts in new york early on this bull market off the march lows weve seen less of a core relation between headlines and the market whether good or bad good news hasnt been met with additional follow through. Take this whole rally off of the march lows and the third acts weve seen the s p back up over half a percent seven times now on those times and days, it was mostly related to positive news, related to the outbreak due to good vaccine news and something to that matter when the s p gapped up more. When it traded lower to the average decline of about. 8 there has been a little less of a core relatirelation on that m. This is our fourth pandemic in 102 years they existed in 57, we got a vaccine a few months in. The other two tend to last about a year and come and go in waves. Do you think the market which prices out nine months so to speak and we are three to four months really into the pandemic. Do you think the market has priced in a pandemic exit whether that is because of a vaccine early or natural herd immunity or are we looking for the end of it at some point . I think as dr. Scott gottlieb has said, he believes well be through in january none of it has been the end of the world. It has been a terrible outbreak. It is nothing to dismiss eventually well get through it. We are already three or four months in. The fed has said they are there and having the fire hose of liquidity. When you have that combination, i dont think there are concerns on the market that well see the fed take away any sort of accommodation earlier rather than later that has the wind at your back for now. If that does change, that will be negative for the market well get through this the news well see on moderna will be positive and hopefully get us through this sooner than later. We will and we have history will tell us is there an expectation, the vaccine will be the biggest news of all results are in and will take a long time to distribute. The idea from a market perspective is maybe it pulls forward some of those optimistic views, the estimate of going somewhere and doing something. Seeing the travel stocks higher where we advance the natural process of it, if you will yes, it brings things forward we can get things sooner rather than later we are talking about thissoone and about how schools seemingly less and less possible that schools will open in a normal fashion. That stops a lot of things from happening. If we can get this time line, like you said, brought forward, we are in a better position overall and the economy recovers and things get back to normal sooner a lot of parents like us are hoping for kids to be back in school we have to bring the chart up. Really interesting all the travel and the top s p gainers this morning american headlines, life nation, united and hanesbrands so travel and underwear. Look at that hanesbrands up there with the Airline Stocks when we come back, what texas is prepared to do to lure elon musk and the sobering look at reality amid the pandemic. Well speak to one entrepreneur whose business had to close after decades of business. Nissan making a new bet in the electric car race. Well tell you what it is coming up dow tufures come up. A good wednesday morning we are back after this now is the time to support the places you love. Spend 10 dollars or more at a participating Small Business and get 5 dollars back, up to 10 times with american express. Enroll now at shopsmall. Com. Save without even leaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, you 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. 5g is now included with all new data options. Switch and save hundreds. Xfinity mobile. Breaking news from the eu with regards to apple. Europe ordering apple to pay 13 billion euros, about 15 billion u. S. Dollars in irish back taxes. Youve seen this fight for some time now taken to the courts. It could be appealed, i suppose. Im not an expert on european tax courts suggested that they would force apple to pay taxes apple may end up saving about 15 billion, probably about half a days earnings taxes. A little breaking news there speaking of courts, Ride Hailing Companies getting taken to court. Tesla may have found a site to build the cyber truck and the owner of calvin klein cutting back good morning. Speaking of court, massachusetts is suing uber and lyft over how those companies classify drivers as contractors as opposed to employees. California filed a similar lawsuit. Planning to eliminate work from people in massachusetts. A county in Central Texas has approved sub subsidies Travis County including austin, texas is vieing with tulsa, oklahoma to build the cyber truck and model y suv. Tesla shares up. And pvh to cut in the wake of the covid vaccine. Cutting 450 corporate jobs and closing 162 Outlet Stores that sell brands such as van heussen and izod on deck, do you think cash is gone because of the virus think again. Coming up on this mornings rbi. Some stats on cash that will make your eyes water dow futures are up 188 on vaccine hope back after this. Welcome back and good morning. Dow futures are up this morning. We cover the markets very well but alsos also talk Small Business ultimately, that is the business of america as we know, it has been brutal for so many familyowned companies. Since june, 140,000 businesses that were listed remained closed or have disappeared from their site with more than 40 of them shutting permanent lay joining rich, last month, he closed his Sports Apparel store. I wish this was a better time. You are legendary especially in the omaha community. Was it all covid was it all the lockdowns i know nebraska was hit hard at the beginning. What was it, rich . It is just hard to sell Sports Apparel without any sports the two things that makes Sports Apparel sell are people going to events and winning when the ncaa tournament shut down, no one came into the store and our on line orders came nothing. It was very scarey times we didnt see an end in sight after a couple of months of trying to battle it. What about the Government Programs ppp, extended Unemployment Benefits the ppp, the way we understood it, you really need to have employees. At that time, we really didnt have any employees our insurance person at the time said, this covid thing is going to be a big thing. If you do employ people and they km down with the virus, youll have liability so we didnt really have employees, it limited the amount it was tough i was watching cnbc and watching all the guys getting ppp thinking maybe we should be getting it you bring up an important point. Right now, congress is debating. All the headlines have suggested that the idea of company risk, if you will from the virus is a huge sticking point. The idea that Companies Need to have immunity. Sounds like you got warned early. As they said, if you get sick, they could sue you this is a major issue. The issue of illness liability you faced it even as a Small Business absolutely. My wife didnt even want me going down to the store saying you need to quarantine when you come back. That caused problems even at Home Companies are scared of liability if somebody gets it. It was never really a government shut down. I felt the sports world really led with the ivy league and the nba and more sports shut down. They really lead it. The College World series which i look forward to every year crazy fans, such a home grown thing canceled swimming, olympic trials canceled the Berkshire Hathaway meeting canceled how is omaha doing it is trying to bounce back cities lost. Ive seen figures lost up to 250 million where i dont know where they are going to make up the tax. We did have a going out of business sale. The city really backed us and came forward for three weeks, we had people coming in every day. For the first time in two years, we are not that busy there just isnt anything going down the day of the Berkshire Hathaway meeting was just a block away from our store. Warren sitting in a dark centurylink and im sitting in a dark studio and there is no commerce going outside side. Hes getting out of everything, i figure, thats what i should be doing breaking news for you, ive been in your store i was there interviewing i was looking for Virginia Tech apparel. I was in your store, however you mention the point about people being bored as a retail owner, do you think business could come back i know everyone is addicted to amazon and ordering online part of retail is going out and having something to do i think the people that stay in it will do good we just dont know how long it will take. With little revenue and trying to offset expenses, it is very tough. Well said, if we dont have Major College football, you will see a lot of Major Colleges with major problems i agree sorry to hear about the store being closed stay in touch. Best to you and your family. Thank you, brian. Love your show thav tha thanks for having me still ahead, how the pandemic is shaping voters the cnbc states of play. Dow futures up 207 we are back after this save hundreds on your wireless bill without even leaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, you 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. 5g is now included with all new data options. Switch and save hundreds. Xfinity mobile. Signs of a vaccine hope send futures higher future shares up 20 for good news on a wednesday. Cuts for optimism. Theyve got the meeting today. They layout the latest scenarios. Nissan looking to electrify after a new offering after the failure of the leaf. Making the ceo seeing ahead. Get your coffee. Get charged up a lot of green on your screen. Worldwide Exchange Second half kicks off right now. Welcome back or welcome and good morning from wherever in the world you may be watching. Some very good news for you. Bringing little smiles from everybody today. Moderna shares are soaring the company saying potential vaccine produce a robust immune response in all 45 stages with no adverse affects stock up 17 yes, it is early yes, there is a long way to go in the process this is good news whether you own stocks or not. People already saying well the vaccine may not be ready until next year. Maybe not. I am choosing hope and optimism this morning because i want the pandemic to go away. Maybes that just me. Sorry to editorialize. Reopening stocks are benefitting from this news look at that, royal caribbean, carnival are all up 4, 5, 6 that light at the end of the tunnel is getting a little brighter maybe the vaccine wont work we have distributed. Markets are buying into it so why not. This is not the meeting where everybody gathers to zuj or whatever it is still important. There are three scenarios to watch for. Number one, the group looks to go forward with the planned increase in production by 2 Million Barrels a day in august. Opec could cut the output cut. If you cut the cut, that is a de facto increase that would be neutral for prices oil could get a boost if opec looks at the possibility of new shut downs in america because of surging cases. They grow more worried about gasoline cuts. Caving to some of the members wanting output earlier or by 2 Million Barrels a day. The least likely scenario and roll back. This is opec so anything could happen watching the number closely. The number of drilling rigs in america is down 700 from last year at an alltime low, that is not just in america. Believing that drilling locally would fall 23 if demand can keep picking up. The by as to oil on the upside more due out later this morning. Looking at the worst yet to come due to coronavirus related recessions wells fargo storing away tens of billions combined 28 billion in the Second Quarter alone jp morgan putting aside 10 billion alone as it prepares for what they call, quote, not a normal recession. Caller in a normal recession, when unemployment goes up, deliquencies go up, savings go down. None of that is true here. You will see the effect of this but not right away because of all the stimulus and the effect and 60 of the unemployed are making more money than while working. It is just very peck youll yar times. Left we forget americans have taken out equity lines in a debt fuelled rally what does this mean for banks and the sectors . Thank you for having me i think yesterdays results honed in on what investors are honed in on. Jp morgan the best of the bunch. I think what investors are focused on right now is the commentary as you played the clip investors are trying to get a handle on this when you have caution comments, for the debt that this economy has been fuelled by leads to pockets of uncertain over the next six months and what happens with these stocks and the economy. Is there any financial interest in this sector at all weve had two measurable rallies. Folks starting to get more comfortable and potential for reopening. The government pressure and stimulus kicked in as well that sold off a little bit midmay opened and you also had some positive openings from the banks. You did see a really monitor rally in regional banks we had 20 plus movement from midmay to june. When we started to see some challenges regarding the reopen with viruss over the past month, the sector got sold down aggressively to your question, it is a little more difficult right now right now, we have having a little bit of investors in the space. You said it well. Maybe this vaccine optimism will pull that forward. Rj, thank you. Have a good day. Best to you and yours. Continuing escalationing tensions between beijing and china. It will impose retaliations between entities and companies after President Trump a nouned he has signed legislation imposing sanctions on china. Eamon javers joining us with a lot of news out of d. C thats right. This is called the hong kong autonomy law passed overwhelmingly. Sent to the president and he signed it. Back in 1997 when the british turned hong kong over, the chinese promised they would maintain their freedoms. They said this would be one country and two systems and hong kong would be allowed to operate differently from mainland china. The chinese put into place this crack down inside of hong kong this was the president s way yesterday of responding to that by signing this law that wipes away a lot of hong kongs individual protections that had been treated differently under Foreign Policy now that will be the same. It come as midall of these escalating tensions between the United States and china. I want to get to the cnbc states of play survey and shifting sentiments on the coronavirus as well what does the survey show and tell us . This is an important one just out this morning this is a battleground survey. We are focused on six battleground states that will control the fate of the election we are starting to see real response in particular states to the outbreak of the virus and it is moving the poll numbers and changing peoples behavior as well take a look at this graphic. This is whether or not people feel the government and businesses are reopening too quickly. In states where there are severe outbreaks right now, that concern of reopening too quickly is ratcheting up look at florida and 62 of people saying they are reopening too quickly, arizona, 60 . You do see a poll response now where we are seeing these flairups in terms of the question whether you are going to wear a mask in public, weve seen a partisan divide over this it is starting to tighten now. 98 of democrats say theyll wear a face mask in public only 55 of republicans say theyll do the same. You see that gap is tightening as republicans seem to be responding to outbreaks. Overall, the question is for november, who would do a better job handling the coronavirus overall. 54 say joe biden and the democrats. 46 said trump and the republicans. That is a big gap for the president to overcome going into november given that the virus is increasingly becoming the number one issue. Not always at the top of the list but very close and driving the economic environment as well it is driving everything. Do you like how i throughout the Patriot League there you canceled fall sports colgate canceled sports i ran track there for one year realized my future was probably in journally good choice. You are a speed ter on that good to see you, my friend more reaction from this. Joining us now, Strategic Advisor from forbes. Listen, you heard eamons thing. The mask thing i will say this, i wonder if the mask thing is overplayed because conservatives tend to live in more sparsely Populated Areas where they feel more safe. What is it being politicized is it everything in an Election Year, i think the issues are ramped up the virus in particular. This has touched every aspect of the country. It is affecting schools, the economy and jobs it is hard to not have that politicization in this environment. Will it go on forever . These things ebb and flow. Every cycle we would talk about in an Election Year and context is shrinking they are changing faster the polls you are talking about now in terms of the impact on the Virus Outbreak in the last couple of weeks affecting the leadership those cycles again are changing rapidly. We dont consider it will be this way forever do you agree with joe bidens strategy it is midjuly the election is in about 100 days and we barely see him the strategy would be sit back and let things play out. It doesnt matter if you are talking sports or politics right now, the campaign seems content to let the president stay in the spotlight. Let the administration and governors figure this stuff out. So far, it hasnt been the smoothest ride theyll have to get out and do more campaigning and get more visible. Youve seen them running policies the campaign that hes going to have to be a visible presence in the race when you say get out, whether you mean on zoom or skype. I think well be seeing a lot of each other over the coming months vaccine hopes powering the markets. Dow futures up 200 moderna shares up 1,800. Welcome back maybe this proves cash could still be king. A lot of stories that people dont want to physically touch cash because it may be dirty Data Trek Research has pulled some Interesting Data from the st. Louis fed. The amount of cash he said in bank vaults has soared in the past couple of months. Look at the far right. More than 2 trillion is circulating globally up from a year ago much of that is overseas why do we care how much cash is in banks vaults this could be a sign of wavering Public Confidence when things get worry some, people tend to hoard cash. We saw it in 2009. They think the socalled underground economy, off the book cash transactions may be on the rise as well cash as and indicator, perhaps it is something to watch when people say cash is dead, not according to the banks because there is more of it out there than ever before random but hopefully interesting. Ill ask you to comment on that, jeff the amount of cash being hoarded by the banks and americans continue to grow we saw that in 1973 or 1974 in that recession they are hording cash it is a false hoarding i dont see a recession on the rise any time in the knee future i think it is a miss step. Are you urging clients to do the same no. But i always have 5 or 10 cash lying around because you never know when a good idea will come around im pretty invested in the equity market here that trades higher youll seat trough in the economics and earnings things improve from there and people are woefully vested youve got 5 trillion in money market funds i think that money will eventually find its way into equities that is the bull case, jeff we showed this like two months ago. The amount of money and physical equities to buy in america has shrunk more than half in the last 20 years. The number of publicly traded companies have grown and buy backs. Youve got more money chasing fewer things is that really the ultimate longterm bull case . Yes i think itis nobody gleebs it, brian. I dont believe it because they dont vo these debt levels. This is all debt driven debt levels will go up will there be some kind of debt bomb the creature stuff that comes out of here, jeff . That was such a good question. Jeff call in. All right, dow futures up 209. Ill leave that question hanging like something in the wind coming up, nissan rolling out a new electric vehicle the companys ceo will be with us we are back after this now is the time to support the places you love. Spend 10 dollars or more at a participating Small Business and get 5 dollars back, up to 10 times with american express. Enroll now at shopsmall. Com. Welcome back yesterday, we talked about the new ford bronco. Unveiling the new suv that is all electric catching the eyes of the investors but can this translate to real sales. Phil lebeau with a special guest. Bringing in the coo of nissan standing in front of the new ariya. Thank you for joining us youve got a range of 300 miles on the new ariya is that enough in these days where companies are saying, look, well have at least 400 mile range aryia is the perfect fusion after years of nissan experience it is not a normal ev. It is much more. Why, it brings the driving excitement, e force coming from our gtr sports car it can do 0. 5 meters in 5. 1 second it brings a comfort to the customer the cabin space and brings confidence because of nissan being a pioneer. Making the driver more confident and comfortable and the joy of connecting it has the latest connectivity features on board and off board to connect thats why nissan believes with this value, we are going to explode the customer aspirations. Is it enough to catch tesla china is the number one market for evs. The numbers dont lie, you are not in the game right now relative to your competitors for us, the driving range is the important but not the most important thing. Number one, 80 of customers charge their cars at home as we do our mobil phones. What customer wants to have is the driving excitement this is the next generation of electric when we have to translate from the range to driving excitement when it comes to ariya, we can talk 300 miles at full charge. It has 250 miles at 150 kill owe w kilowat driving range, which is enough for excitement, comfort and connectivity quick question, goes on sale next year in the u. S. And just before that in japan and asia, starting price, where are you looking at for a starting price right now on the ariya we are doing flexibility with two batteries and two power trains we are thinking 40,000 which we believe in the United States with this Value Proposition when you have the driving excitement, we believe it will capture the customers who are in the c segment of suv, which is a large percentage of suv drivers in the United States. Good point. Standing in front of the new ariya. Good morning or good evening in japan great stuff there. It makes this tesla battery day like a National Holiday coming up in september. Thank you. Do appreciate that how fast the time goes moderna shares soaring vaccine hopes out there. I will see you on the half time report squau squawk is up next. Save hundreds on your wireless bill without even leaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, you 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. 5g is now included with all new data options. Switch and save hundreds. Xfinity mobile. Set to add to the gain this time on positive vaccine news from moderna dr. Gottlieb is here to react. Moderna confounding all the skeptics President Trump ending hong kongs preference status and tax breaks for tesla how much one texas county is willing to pay to seal the deal on the next giga factory it is wednesday, july 15 and squawk box begins right now. Good morning welcome to squawk box here im becky quick with joe and andrew the u. S. Equity futures are indicated higher this morning. Youll see the dow i