Tech takedown. President trump signing an executive order effectively banning tiktok from operating here in the u. S. The order goes into effect in 45 days unless those apps are sold by their Chinese Companies 35 billion off wechat overnight in hong kong this is a nearly 700 billion company. Perhaps more surprising that its been able to fly under the radar for so long. A ban could get very messy because tencent is far more intertwined with American Business than tiktok theres the sheer scale of tence tencent. Fallout could touch sports to. Tencurre tencent has a deal with the nba to stream games in china theres also American Businesses operating in china relying on the app like starbucks, disney, mcdonalds the socalled super app is where a billion active users in china can shop, spend, stream, game much more within a single app. For that reason, apple and google could also sufficient if users switch because they cant access tencent apps. Talk is turning to how the chinese might retaliate. These tech cold war began years ago. Many of americas most Popular Internet Services have been banned in china for a long time already, twitter, google, facebook to name a few that in part has enabled the rise of wechat and other chinese giants in terms of video games, as i understand it they would be unaffected by this ban, correct . Theres still so much we dont know we do know that tencent has a stake in epic games and other video game players we dont know if those ties would have to be undone. There could be some restrictions but we dont know how far the eo will go. In terms of starbucks and mcdonalds marketing in wechat, the issue is the use of wechat in the United States because its the user data an executive order would potentially ban mcdonalds use of wechat in china right so the wechat app does a lot more in china than it does here. In the United States its primarily a messaging app. That would effect a lot of the american chinese that use the app to communicate with family youre right, starbucks, mcdonalds dont just use the app for marketing. Thats where transactions take place. Thats how people actually order food and drinks. If there were restrictions placed and, say, mcdonalds or starbucks could no longer associate or work within the wechat app, it could certain affect their business. Chinese consumers spend their digital lives within this one app. Really theres no equivalent here in america. Deirdre thank you what we know is that beijing has said it firmly opposes this executive order. Weve already raised the ire of china, that we know. Are you worried about this look, i dont think this is something thats going away any time soon. I think its a new cold war of sorts. Its become bipartisan this is going to be with us for a long time. When i think about the u. S. Equity markets and the valuations were trading, it is a little bit more vulnerable if and when investors start to care about this i do think between now and the election, this is probably going to take a back seat to the trajectory of the virus and obviously whats going to happen with the u. S. President ial election i really think thats front and center from a macro perspective if you look at the dollar continuing to deteriorate versus the yuan. I do think from an individual equity perspective, you could have issues. I think about a company like tesla or apple, you know, thinking about just the round numbers, the percentage of revenue to china is somewhere around 15 these are stocks that have been have been on fire so potentially a little bit more vulnerable that catalyst driving Companies Like that higher could be vulnerable here given the valuations and trading more broadly, u. S. Tech stocks are probably more vulnerable than some of the big chinese tech stocks. Theyre very insulated from a revenue perspective. I think thats worth considering as well. The concern for apple is that if apple had to remove we chat from the app store and couldnt offer it in china, Chinese People wouldnt buy that phone that would put a serious dent in chinas sales. Thats somewhat plausible, right, given the backdrop. People will say, hey, the chinese have banned our companies for years, turnabout is fair play i totally get it i understand whats going on here and ive said for quite some time that probably correctly President Trump is pushing back on the chinese. Without question, thats undeniable with that said, ive also said there are ramifications. Clearly there have been no ramifications in terms of the market because nasdaq is at an alltime high and the s p is within 1. 5 of its alltime high we made six or seven months ago. I think its something the market needs to consider and wash ou watch out for. For u. S. Companies, china is part of the growth story its part of the forward p. E. When youre taking a look at that if you take out china sales, that would be a serious dent in that growth story. For the chinese its not as dependent as expansion into the United States. Al i do think this is a way you can get the growth to value switched even quicker. I agree with the first two, jeff and guy. If you think about this were 40 handles off an alltime high in the s p. Market doesnt care about it tez weve had years to think about this trade war or any of the other ramifications. I agree with guy i think this is about facebook, google, snapchat being accepted and allowed into the country i think this is just a leveraged tool to allow our Companies Fair play within their country. Having said that, none of this matters unless the market really starts to take a pulse and see where were going from here. I think the markets overcorrect and i think really the bite is much less than the bark. I think it will be the same way this time around as well. There is the potential speed bump lets say longer term that the growth story remains intact for a lot of these hot Chinese Tech Companies even with this executive order in place if there is sort of a move against Chinese Companies, that would have a ramification in terms of etf holdings for some of these stocks. I would imagine some of these etfs wouldnt be able to hold nonu. S. Listed companies. That could be the speed bump in the immediate term, if not later on. Yeah. Intermediate term for sure i think the deadline to be met is 21 or 22. There is some time there as the other panelists have said, this isnt really a new issue. Its been somewhat of a step function in terms of escalation, whether it be treatment of minorities in certain regions of china or how theyve progressed and taken some of the rights away from hong kong as a sovereign nation i could go on and on but its literally been a step function of the escalation. From a 30,000 foot view, if you look at some of the pillars of what the Current Administration is hanging their hat on, weve talked about historical low unemployment and historically strong stock market. The unemployment story, we all know that. If you take into account the gig economy and all those people that arent being accounted for, were looking at chose ecloser. The last pillar is the international relations. This is the last thing they have to stand on and say, listen, this is the campaign we ran on, this is what were being consistent on. I think Everything Else kind of comes out of that. The devil will be in the details in terms of what the bans will be but to try your answer your question more succinctly, i really think the accounting standards, that definitely makes sense. If youre going to be held within an etf or an index fund, the pension fund, the asset manager, there needs to be a level Playing Field in terms of the Financial Disclosures and how earnings et cetera are being accounted for. We are following new developments out of washington, d. C. When it comes to the latest round of coronavirus talks falling apart. It was a dismal outcome. Reporter thats right. The president just tweeted about the talks a few moment ago he said House Speaker nancy pelosi and senator Chuck Schumer only interested in bailout money for poorlyrun democratic cities and states, nothing to do with china virus. We are going a different way the president making it very clear these talks have now reached an impasse and they have broken down. The two sides did try to meet on capitol hill for about 90 minutes this afternoon but they werent even able to reach an agreement over how big this package should be. It was a disappointing meeting. We reiterated in very strong terms our offer. We come down a trillion from our top number which is 4. They go up a trillion from their top number which was 1 that way we woucould begin to m in the middle. Unfortunately, they rejected it. White house officials said the problem is not just the price tag, but also fundamental disagreements over policy, especially aid to state and local governments and Unemployment Benefits. What they want is a 2. 5 trillion blank check i can just tell you the president has encouraged us not only to negotiate, as the secretary indicated to come back and negotiate in good faith. Im extremely disappointed that we came up here today just to hear the same thing repeated over and over again. Reporter they said they will recommend to President Trump that he pursue executive action over student loans, Unemployment Benefits and rental evictions. Why dont the markets budge on this . I think the real case is what we just discussed is executive action if you have the democrats and republicans cannot meet up on 2 trillion or 4 trillion, then youre going to have executive action mnuchin came out and urged the president to lean towards executive action President Trump said if congress kap cant do it, im going to do it. I think the market knows the spigots of money are going to be there where d. C. Democrats and republicans can agree on it. The truth is, it doesnt really matter as long as powell is there as a backstop, as long as trump can do the executive action, the market can bridge the gap between now and whenever we get to a more normalized state i get that but with the s p 500 at 3351, should you be a little bit more cautious its all about context, right . You can believe a deal is going to get done, but that outside chance that it doesnt, that could be a lot of downside. Yeah, it is thats why i dont think this is at all an upside catalyst. I agree with what steve is saying, look, were going to get something because we need it unemployment is still an issue were healing but its going to be uneven. We have 5 Million People outside of the labor force you have that shadow unemployment going on. The administration has a massive incentive to do something here i thinking the single most significant variable with whether or not a president is likely to get reelected is income growth. Its almost linear something is going to happen and i think thats what the market is looking to. We have a news alert on the robinhood Trading Platform kate rooney has the details. Robinhood will no longer display how many customers hold a certain stock on its website the Trading Platform is also restricting access to its apis that data has been used to show booms in stocks like kodak and Virgin Galactic for example. Robinhood saying even though were restricting Third Party Access to our api, a lot of customers will still be able to take advantage of any other resources and tools we offer a robinhood source telling me its not representative of how their Customer Base actually uses robinhood they say the majority of robinhood customers are not day traders and many customers are using it a, quote, buy and hold strategy. Kate, thank you i dont know, guy adami, you see Eastman Kodak on the list. That might spur people to say, hey, whats that kodak up 30 in one day. I think thats somewhat of an Encouraging Development. I think a lot of people use that as something of a selffulfilling proprophecy. I dont think its necessarily a bad thing. Maybe thats just sort of the maturation process of robinhood. I dont think it has anything to do with the market moves, but i think its actually an Encouraging Development for robinhood and people that are part of that Community Coming up, General Motors unveiling its first allelectric cadillac crossover the covid19 pandemic is creating Food Insecurity on a scale not seen in decades. An estimated 54 million americans will struggle with hunger. With 200 food banks and 60,000 meal programs, feeding america is the largest hungerrelief organization in the country. Join Morgan Stanley in supporting feeding america and your local Community Food bank. Andputs its customersity a wiin charge . Rier well, the good news gets shared. And it gets rated 1 for customer satisfaction. But dont just take our word for it. Take theirs. Its your wireless. Your rules. Only with xfinity mobile. Call, click or visit a store today. Gm trying to capitalize on the red hot electric Vehicle Market with an all new ev crossover. This has been in the works for some time. General motors has made it clear, cadillac will be the brand that will lead all of its Major Technology push into electric vehicles over the next several years. Here it is the new cadillac lyric which is a midsized crossover utility vehicle. This is pretty close to what its going to look like when it comes out in a few years theyre saying the range will be at least 300 miles and the inside has just phenomenal appearance in terms of what it will do with the headsup display, the panel in the front of what they call the cockpit behind the steering wheel. It looks fantastic keep in mind this is a vehicle that we will not see until 2022. Thats because they have to build out the charging infrastructure around the country. Theyre not even saying we dont know how much charge youre going to get with a quick charge over 20 or 30 minutes. The goal is to ultimately beat tesla. General motors believes they can beat tesla they better win in california. That is the number one ev market in the country were showing brand sales between tesla and cadillac when you compare the two, no comparison at all. That is teslas biggest market 72,000 last year were sales of tesla in california. Cadill cadillac, a little over 11,000 they have their work cut out for them in terms of catching up to teslas market cap teslas market cap more than seven times bigger than general motor motors you have fisker about three weeks ago there wasy announced s car the ocean ev will be built by magnastare over in europe they did not announce it our sources tell us that we reached out to the company. They say they have no comment at this time. The bottom line is this, everybody wants to get into this ev space but were not going to see a big flurry of these vehicles for at least a couple of years. Bonawyn, im not quite sure what the strategy is for releasing the specs of a coollooking car that wont be on the market until 2022 like people are going to say, hey, im going to wait for the cadillac lyric. Patience is a virtue but not when you have somewhere to be. I think it makes sense for cadillac theyve been trying to shift the demographic for years now. Theyve had a storied past of being a large boxy car they gradually shifted that demographic but thats just it its a concept were talking about the latter half of 2022 what does consumer demand look like, what does the infrastructure look like and what other Technological Developments have been made by tesla and other competitors by the time they actually bring this thing to market its interesting they already pegged the price in the 70,000 range. We dont know if thats really going to be an applicable price point two years out. Its a great headline, attention grabber, nice in concept. Up next, final trade time for the final tread bonawyn . Im staying in the rally in cpl. Jeff mills . Nobody seems to want reexposure these days. Look at cci, crown kastle. Steve grasso . Sonos biogen. Options actio iupex ns nt. Its easy to get lost in the economic uncertainty. The volatility. The ambiguity. This moment calls for more. And Northern Trust delivers more. With specialized expertise. Proven strategies rooted in data and analytics. And insights borne from over 130 years of successfully navigating economic turbulence. Giving you new clarity. Inspiring confidence. And helping you uncover new paths forward. Northern trust. Wealth management. Happy friday we have a big show lined up for you. Heres what weve got on deck. Breakouts and backhoes. Carter worth is cracking open his copy of the farmers almanac to explain why there could soon be a bountiful harvest for deere. Then its not the one that supplies food or the one that things about underwear its the