Good morning, im in today for Brian Sullivan lets start off with our your money and the Global Markets are shaping up on this monday morning. The dow will be higher by around 90 or some points. Gaining some ground in the past few minutes. You can see the s p higher by 4 points and the nasdaq rarely an underperformer now you can see implied open lower by 16 points now this is coming after solid gains for the major indices last week more on that in one moment here. Turning to the bond market as well, the yield on the benchmark ten year Government Note or just around 56 basis points the two year note yield about 13 basis points and the 30 yearlong bond a hair below 1. 24 or 124 basis points taking a quick look at the price of gold as well, remember, hovering around the record highs. That key one to watch, the last trade there, gold futures up about three quarters of 1 lets go worldwide karen is in london in the newsroom what can you tell us about the trading there. Seeing those u. S. Futures pair some of their gains in early trade has been fairly significant for the european markets in the early start of this session we saw nearly 1 and thats translated to just over. 1 . Positivity on the german stock market has given away to losses by a quarter of a percent. This is also unusual where the german stock market is typically its one of the leaders. Early gains up too on the French Market now you can see him ahead. We have light gains too for the italian stock market so playing out here at Start Technology has been weak and also tick to be. Along the Technology Space today. You can see its one of the weaker components of these european markets this morning. Elsewhere, some of the other sectors trading weaker as well was one of the sectors that had flashed up red and then it is now down close to. 5 . But positively coming through as we saw a slight easing of the deflation situation. A chinese economy that held basic resources. Its moved ahead. 8 oil and gas encouraged by comments from the saudi aram aramco ceo auto makers have bounced very strongly on the back of the news. Thank you very much for that update now lets get to a look at the mornings top stories here and a brief milestone in the outbreak in this country. It surpassed 5 million cases they confirm since the outbreak began. It comes anear growth. 54,000 new infections a day over the course of the last week. Amaid the milestone, President Trump over the weekend signed several executive orders aimed at extending Coronavirus Relief. They extend Unemployment Benefits and provide a payroll tax holiday among other things trump making that move after talks with Congressional Democrats fell apart on friday criticizing them over those failed negotiations. We have stated our willingness providing expanded Unemployment Benefits and protecting them from evictions and providing relief payments to families democrats have refused these offers they want to negotiate what they want is bailout money for states run by democrat governors and mayors. And tiktok is planning to sue the Trump Administration as soon as tomorrow. Thats according to npr. The potential move would follow the president s executive order banning u. S. Transactions with tektoks parent company. Meanwhile, twitter has reportedly held preliminary talks about a potential deal with tiktok over u. S. Operations that comes amid microsofts bid for the company as well. Back to the markets now despite a mixed day on friday, stocks posting positive returns for the week the dow up 4 . S p 500 and nasdaq each up about 2. 5 but they were outdone by the small caps the russell 2000 index rising 6 for the week its best performance in around 2 months lets get more perspective and bring in our partner and managing director. I have to say sandy, every time i look at the charts every time i see the nasdaq i think so myself, my 401k is doing great but things have to cool off a little bit. We have a lot of clients mostly corporate executives. And their concerned just like you are about stocks going high but we see a lot of opportunity. Not necessarily with the big tech stocks that are leading we see opportunities in value here in the us. And overseas a lot of the value stocks we think are poised to do well. Companies such as at t, pfizer, disney, intel, these are companies that tend to be more cyclical and value stocks help lead out of recession so we think theres some benefit there and also we see opportunities overseas particularly in emerging markets in southeast asia. Some of the sectors that we like there are Financial ServicesFinancial Services materials and technology there as well overseas. Im curious though, are there places in emerging markets in particular are there certain geographies. Am i looking toward asia am i looking toward emerging latin america . What is the tilt there its asia china, taiwan, we think theres a lot of opportunity there the prices are low theres a nice hedge with International Investments with the u. S. Dollar. We think that the currency here might weaken further over the next couple of years we get a lot of diversification overseas not only in the businesses butin the Health Situation theyre fighting the pandemic and also in terms of the economy and politics as well. Also what is curious, i want to harkin Something Back value will come back in vogue for years now. What is the real catalyst for driver behind while value will this time hypothetically out perform and get back in the swing of things. Yes its been a long time we think the reason its going to change is because the economy has, you know, really hit a road block with this virus and the fall out of it and we think that as the economy eventually begins to recover the stocks will do so much better. They tend to be more cyclical in nature and really the stocks that have been leading are the tech stocks. So theres a lot of opportunity here in the u. S. With Companies Just priced a lot lower and thats where were putting our money. An Investment Adviser, i remember my days as an Investment Adviser representative and its not just about picking stocks or bonds, but its also about trying to get someones Financial Health together as a whole. What else can people do right now . What else can investors, traders, Middle America, anybody do to take advantage of this environment as things are developing right now its a really important question thanks for asking this one of the great things about being in a zero Interest Rate environment is you havent had a chance to refinance it or opportunity to do so, so definitely take a look at refinancing and also with stocks being as high as they are, for people that are charitably inclined like our clients are, we have been having lots of discussions about taking the tech stocks for more than 12 months a huge appreciation in giving those to charity when the clients have charitable intent one is allowing a nice way for diversification when you give stocks to charity and in more than 12 months you give a Charitable Gift reduction and you dont have to pay any tax on the underlying gain. Thats a great way to have a home run when things are otherwise shaky and uncertain in these times. Thank you very much inch thank you hong kong making the highest profile arrest yet under chinas new security law there well go live overseas with the very latest plus warren buffets Berkshire Hathaway buying back a record amount of the companys stock. Remember he didnt used to always do that the other moves being made by the oracle of omaha. Amazon in talks with one mall owner to expand its shipping Operations Worldwide exchange returns right after this businesses are starting to bounce back. But what if you could do better than that . Like adapt. Discover. Deliver. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. Puts its customers 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. Welcome back time for the stocks on the move today. Second quarter profits jumped 87 . It brought back a record of its own stock in may and june. Kodaks deal for a government loan is being put on hold. The International FinanceCorporation Says the recent allocations of Insider Trading raised serious concerns and the deal will not proceed until they are cleared. The sec is reportedly in the early stages of a probe and kodak said friday it is conducting an internal review now to the developing story out of hong kong where they have arrested the media tycoon with the new National Security law there. They imposed that law back on june they say this arrest just shows that hong kong will not be intimidating u. S. Sanctions. They announced a retaliation for the u. S. s decision to impose sanctions on 11 hong kong and chinese officials announcing that they too will announce sanctions on 11 americans so this includes u. S. Poll situations such as tom cotton, ted cruz, marco rubio, fierce critics of course of beijing and its policies as well as human rights watches and other democracy advocates in the united states. Otherwise, china has been doubling down even more on National Security in hong kong just since last friday the citys chief said she was going to cancel her u. S. Visa china said it would be revising its roles to punish the desecration of the chinese flag and also not only of jimmy lia but of his sons. Its going to be very difficult for him to get bail this time around but even though this is sending a very chilling message to the democracy advocates, several of them have been calling for support for the company, in fact, the papers parent next digital saw its share price triple and go up over 300 today after advocates said that traders should buy the stock in a sign of support but overall theres a whole lot of confusion in the markets when it comes to what these sanctions mean because the hong kong regulator put out a circular over the weekend saying that the u. S. Sanctions dont actually apply and dont have legal status in the city confusion is one thing but tensions there for sure and speaking of the tensions between the us. And china. Theyre also watching healthed trip what can you tell us about the tensions there the tensions are very, very high as you expect hes the highest level official from the u. S. To visit taiwan since 1979 so china has been communicating in the past several days its displeasure. In fact, today we learned from a taiwan Government Official that chinese fighter jets had just skirted the line in the taiwan straights as a signal about beijings displeasure. He wants to show his respect for the islands response what is really disconcerting in this region is the possibility of a miscalculation because attentions are racheting up higher and higher. A shot across the bow for sure from the Trump Administration from china. Thank you for that update. We appreciate it well, still on deck for the show, technologies big run continuing to roll on but could the upward momentum be at risk we look at the red hot sectors next moves coming up todays big number, 316 . Thats the growth in app downloads for the u. S. Based tik tok competitor thriller over the past year. Thriller added 35 million new users last week according to tech crunch. Francis rivera is live with the latest. Good morning to you demonstrators blame the countrys government for the devastating explosion in beirut. Decades of corruption, nepotism and mismanagement lead to that blast. A botched primary in the commonwealth where puerto rico was forced to partially suspend voting over a lack of ballots. Some had to reschedule voting after not receiving any ballots. She is demanding that the head of the Elections Commission step down her opponent called it an embarrassment for puerto rico. The remaining primaries will be held on august 16th. Well, they say act like youve been there before but collin morikawa. He held on to most of it and was able to put the top back on. Overall a fantastic weekend for the young golfer even more reason to hug the trophy tight well send it back to you. The only 23yearold winners of the pga championship that kid has a very bright future. It makes you wonder what other trophies and titles hes going to put under his belt. What was i doing at 23 years old . Thank you very much for all of that still on deck for the show, Democratic Leaders slamming President Trumps executive orders on Coronavirus Relief well get the latest on whether the two sides may still be able chorworlidout a deal mu me dwe exchange ahead after this back to you, babe with a happiness that died i let it get away servicenow. The smarter way to workflow. Lookentertainmentour experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Extending Coronavirus Relief thats straight ahead. Plus while qualcomm lobbies to let it sell chips for new huawei phones youre watching Worldwide Exchange right here on cnbc. Welcome back to the show. Heres how your money and investments are look as we are halfway through the 5 00 a. M. Eastern time hour. Stock futures are mixed. You can see the dow is higher by nearly 100 points. The s p higher by 5 points and the nasdaq in a rare underperformance today as of late treasury yields meanwhile some what holding steady. The ten year benchmark no yield. Just around 56 basis points. Ever a slight yield lower. 13 basis points and the 30 yearlong bond yield around 1. 23 . Closed the day mixed as well you can see theres moves off by. 2 off by one third of one and trading was actually closed in japan and the shanghai composite up about. 3 as well up green across the board. The dax the underperformer in germany. Making headlines this morning, reportedly in talks to take over space left by Failing Department stores the space could be used for amazon distribution hubs focused on converting space previously occupied by jcpenney and sears locations. They had been Closing Stores across the country lobbying to let it sell chips for huaweis 5g wireless phones it could lose billions of dollars in revenue because of export rules and restrictions because huawei is on a u. S. Export blacklist the u. S. Companies that want to ship its components must first get a license from the Commerce Department in a related story its running out of chips because of those u. S. Sanctions and health and Human Services secretary alex azar is in taiwan today meeting with that countrys president , this is the highest level issue between a u. S. Official and leader of the selfruled islands in decades. The rvisit has been condemned b china. Now to this mornings other big story in d. C the full story there good morning. Yeah, good morning, the president is taking some limited action doing with a he can over the weekend in the wake of the total break down here. Talks between the white house and democrats up on capitol hill to further virus relief. Theres sort of three buckets of activity here and democrats saying beyond the edge of the limit of its power here and the president putting in place a payroll tax collection pause that will be in effect according to the executive order he signed over the weekend from september 1st to the end of the year people would have to pay the tax back at the end of the year under the current law. That is if they dont change the law youll have to pay that payroll tax back after its deferring for the rest of the year the president wouldntbe able to extend the eviction moritorium but theyll have to come up with solutions there and finally on the bonus unemployment insurance, remember that had been 600 a week for people in the wake of the cares act. This would be 400 a week bonus unemployment it caps the Homeland Security for the money. 25 is on the states not clear whether the states are going to be able to come up with the money given how hard hit they have been its not clear when exactly this will go into effect or whether the states can make up the costs here in terms of all the expenses that theyre facing meanwhile we see them on tv pointing the figure at each other. The president s meager, weak and unconstitutional actions further demand that we have an agreement. We have been told we could get this up and running immediately and id say if the democrats want to challenge us in court and hold up Unemployment Benefits to the hard working americans out of a job because of covid, theyll have a lot of explaining to do. Effectively a dare there from the treasury secretary to the democrats saying go ahead and sue us and youll be the ones suing to block payments to unemployed americans thats not a very good position to be in where does this leave us were told the talks had entirely broken down over the weekend. Red lines are always cliche everyone has a red line. Theyre not going to cross these things lets talk about what exactly the one or two biggest sticking points are if a break through can happen, what are the one or two points that need to be negotiated for both sides to come to some kind of agreement the democrats say they want aid to the states right . So multiple trillions of dollars in a total bill. Theyre talking about a massive aid package from states so hard hit. The white house is skeptical of that and democrats are holding the line its that 600 a week bonus unemployment figure. You saw that in the president s executive action hes only doing 400 dpl 400 dollars a week democrats on capitol hill say we want the full 600 and were going to fight for it. So thats the impasse here and the question is overall total spending a lot of republicans in the senate simply wont support anything thats a massive multitrillion dollar bill thats entirely backed by deficit spending and theyd like to see something more targeted and reasonable democrats say it doesnt meet the moment if you do it that small. Thank you very much for the update on these covid talks in washington d. C we appreciate it for more lets bring in jimmy, Economic Policy analyst at the American Enterprise institute. He is also of course a cnbc contributor. You heard my last question, we know what the sticking points are. What exactly can happen and what needs to happen for not just the deal to get done but for america to be set forth on a path kind of forward going into the fall amid the virus pandemic. I guess the good news here is that neither side, neither republicans or democrats think that the current status quo is at all good. I think they both want big comprehensive pack annals. Nobody thinks these executive orders in anyway svled any problems for any substantial time they both think they want a comprehensive package. So the dichs fference is maybe trillion dollars its really the aid to state and local government i could easily see republicans saying look. Its a lot less. They need half that amount of money between now and the end of the year republicans will like that they give a lot more aid and push to 2021 and worry about that that im not so sure about. Lets talk about the posturing by both sides. This is an Election Year this is a time when democrats in congress, many of them are coming up for reelection. It was a market conclusion and consensus that in Election Years things go well because everyone does whatever they can to help the American Public vote for them how do you square that particular conflict between the administration and congress when Middle America is hanging in the balance right now . Thats the number one question i get why is anybody focussing on whether its 1. 5 whether its 600 a week or 400 a week do a more of everything package, push money out the door, very high unemployment and lets worry about Everything Else next year i think the reason is particularly on the republican side they actually think that some of these ideas are bad. Are bad for the economy. They really think that if you put another 600 bonus payment for the rest of the year, they are very skeptical and all the spending a 2 or 3 trillion bill will actually do anything for the economy. I think theres an actual core of republicans and whether this is good Economic Policy for the American People and thats why i think its been so difficult to come to a deal are any of these elected officials in congress, the administration or otherwise, are they at risk of losing their seat if theyre seen as too opposed to any kind of a virus relief package i think they understand that the better the economy is on election day, the better it will be for them. You dont want you dont want to be the guy and i think they can say, listen, we have already spent several trillion dollars in aid remember we were fighting over the obama stimulus package that was 800 billion now a trillion it seems like every few months we spent a lot and we want to spend a lot more we just maybe dont want to spend as much as the other side. What exactly does this then mean for investors the reason why i bring it up is because it seems like much of the tail wind has been the fed in its actions for liquidity and this idea that well get trillions more in stimulus down the line because of the virus. Investors have been riding that wave higher. At what point should they hurry . Its been all bullish about the economy in q4 and into next year and assuming that theyll get 1 to 1. 5 trillion. Thats baked in. You start getting a number less than that, thats when i think markets might react and therefore markets become an action at the end of the day, thats really the bottom line as we saw in 2008, will it become the action forcing mechanism that makes congress act thats what will eventually happen it itself will put that floor underneath. Whats your own personal feeling and projection about what this economy looks like a year from now. Im concerned im concerned that were going to have a lot more we had a lot more risk aversion by people. This is a huge, you know, psychological impact theres going to be a lot of debt out there. Even before the crisis this is a low productive economy after the nasdaq pushed past the 11,000 market. Last week for the First Time Ever well ask if Technology Stocks still have more room to run. Thats coming up next but first an invitation this wednesday, join the cnbc Small Business play book Virtual Summit with facebooks Cheryl Sandberg and Goldman Sachs and plus its all about providing Small Business owners with resources to survive. Todays prices and provide a path forward to thrive tomorrow. Just go to cnbc events. Com Small Business playbook to register. Ill be part of that Program Welcome back to Worldwide Exchange the latest flashpoint in tensions between the u. S. And china. Coming up on 5 43 p. M. Hong kong local time there theyre just closing up on the day. Well there is no rest for the weary as they say after rising 7 last month. The nasdaq and the Broader Technology Sector isnt slowing down the index is off to its best start in august. Remember typically a down month for stocks in august technology will continue its upward trajectory but there are risks that could get in the way. Joining me now is the head of the Global Trading and global data i have to say, every time i see the nasdaq and Technology Stocks in the news i think to myself the run cannot continue but there is a reason why investors are flocking toward these types of stocks. They are seen as a safe haven. Are they not i think they are. The safe haiven will continue. Almost all Technology Themes themes like cloud computing. 5g. Artificial intelligence. Its made us think about the future of work internet of things and so on and sustainability is a big thing and of course covid19 itself was a big theme its a big theme that is driving tech forward these Technology Stocks t market overall we all know is a forward looking mechanism. A discounting mechanism, right so technology has to have tail winds going into the rest of the year if you feel as though the same kinds of things we dealt with this spring are going to happen again this fall what exactly is the outlook for Technology Given the idea that we could see a different trajectory upward for the virus come in this fall and winter. You have to ask yourself two questions here the first is is this tech boom, is this tech rally were seeing, is it temporary or transitory because of covid and everybody is getting overhyped were they unlikely to change covid has shown that the technology really solves some of the work issues that covid has thrown outfor social distancin and so on. See if this tech rally is permanent and is it all in the price. Where does the future growth come from. A lot of this future growth is from things that Technology Companies are going to sell to other industries but it does not take account to all the Industries Technology is going to invade. So so far theres very few industries that tech has actually invaded and almost destroyed. The Retail Industry advertising, music, publishing and so on but most industries are relatively undisrupted yet by tech and the next two to four are health care and banking. These are Massive Industries that could provide new revenues. Id say most analysts do not assume that tech is going to invade these industries. Automobiles, construction, defense. Theyre also going to be disrupted and that provides new Revenue Sources that may not be analyst forecasts today. Some of those themes seem bullet proof so to speak they can survive a real, real shot out there we all know that theres risks to the market that are unforseen and some out there that can be very, very strong Going Forward. What exactly is the risk then for that overall market in particular in the coming months. I see two really major risks. The first is geopolitics and essentially the big one there is the us. China trade war. The cold war as its recently being called he recently set an executive order giving u. S. Companies just 45 days with tik tok to chinese social media apps. Thats kind of unprecedented in global trade history even though china has banned some companies for doing business in china. If it gets worse, you know, its going to impact Different Companies in a different way apple is going to be biggest hit because both on the revenue side and on the supply chain side apple is heavily integrated into china. Some other Companies Like microsoft, most of us. Tech doesnt really generate a lot of revenue from china outside of apple. On the chinese side there could be big hits. The other really big risk. Its regulation. Putting this in perspective. Part of that and a few decades back it was deliberate policy in the u. S. And to encourage innovation and create an open because of that and so, you know, a few days back a few weeks back, the u. S. Congressional hearings involving google, apple, amazon, facebook, that could result in a heat wave of regulation. Its not just regulation in the traditional sense of antitrust. And data privacy, data security, and tax avoidance, misinformation, obstruction of justice and so on. Different companies will get hit by this wave of regulation and the biggest one, the biggest risk to social Media Companies in the u. S. Of course its a big hot button topic here im sure in europe as well. Over at global data, thank you always great to get your thoughts, sir. Were seeing growth out perform value in a way we have witnessed, not witnessed since the late 1990s well talk to a money manager about it coming up next. But first dont forget you can always watch or listen to us live on our cnbc app youre seeing a live shot of new york city, times square and manhattan. Were back in just a moment. This after President Trump signed executive orders aimed at extending Coronavirus Relief david, the markets right now are setting up very positively i love checking my 401k statement right now because im getting wealthier but can it count . It will slow down for sure. You just had a tremendous rally in the last three to five months we think were expecting a lot more volatility but if you do have a 6 to 12 month time horizon we think there will be a bias to the upside whats worked is not going to be whats hot over the next six months so you want to look at different areas for the next leg of the stock market rally. Youre the second guest we had on this hour that thinks theres going to be new leadership what will that leadership be we heard earlier on it might be value stocks. We think it probably will be value stocksment if you look at growth versus value this year, growth is up about 20 and value is down 10 . Thats the wide establish differential youve had since 1999 and you had the internet bubble and the aftermath did well and it was down for a decade we dont think that its going to be extreme this time but we do think theres a lot of very good businesses paying good dividends at 10 or 12 times earnings and thats going to be the place to make money rather than 50 to 70 times earnings in the very hot Technology Stocks. What type of Companies Trading at these modest multiples that you speak of . I dont see them because were so focused on the other ones with extremely high multiples. What types of these companies are you looking at what Industry Groups or names are you looking at pretty diverse. So were finding opportunities in health care Companies Like and 9 to 12 times earnings with very healthy yields. They have come back very poorly this year. As a result the stocks are track evaluations. So companies we think are very attractive here. Theyre great prices right now youre getting a wonderful deal. They should do quite well. So really a lot of places in the market we do Like Technology but we dont think technology is going to be nearly as good Going Forward as its been in the past if its in technology and its not microsoft or apple or Something Like that, what is it. Well, 2 in technology and sis coe and ibm. Sis coe has done okay and it still sells at about 16 times earnings ibm has a new ceoment we think that hes sharp. He has the right formula Going Forward. Under 11 times earnings, you dont want to buy ibm as your Technology Exposure but as an Old Industrial a really attractive price. Theres all of these different themes about valuations and rotations among sectors and market caps. One of the things that were not talking about as much with you right now is covid19. The trajectory its on the effect on the election are all of those variables things that are noise in your mind or should we Pay Attention to them as investors we have to Pay Attention to them we dont think theyre that investable we think that youre making progress on the vaccine and the agreement. The country has to do a lot better in terms of controlling it and in terms of rolling out the economy and in terms of social distancing. If we can do that with social distancing and face masks we think we have better progress in terms of covid we did a study in 1946 in terms of 2019 and very interestingly we found there was not a lot of difference in terms of the returns republican president s or democratic president s have that means that if youre an investor and youre worried about the election, you dont have to worry as much as you were thinking you did and you shouldnt have to change your portfolio that dramatically. All right thank you very much. Get your thoughts this morning that does it for us look here, its your very own allinone Entertainment Experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. The orders face legal and logistical hurdles a developing story out of hong kong, a media mogul was arrested well get the latest from beijing and a brief outlook for College Sports in the fallment a decision from the power 5 conferences expected this week its monday, august 10th, 2020 and squawk box begins right now. Good morning everybody welcome to squawk box here on cnbc im becky quick along with melissa lee and wilfred frost. Joe and andrew are out today thank you for coming in early on a monday morning youre afternoon evening people. Im glad to have you here. Pleasure. Our pleasure. Nothing like yanking you out of the weekend early. For this, its always worth it thank you well its great to have both of you guys here. Obviously its monday morning. People are wondering what is going to happen in the market. Well take a look at the u. S. Equity futures the dow is up by triple digits this morning gains last week for all the major averages this morning dow is up