Transcripts For CNBC Squawk Box 20240712

Thats the worst performance in two weeks. The dow has been down. Nasdaq have been down five out of six the tech selloff was worst it continued down 3 led lower by stocks like apple the same old story big volatility coming. Those are really the tail thats been wagging the dog for a while. Youll see the nasdaq is lower once again the other two averages hanging in there the s p on the flat line nasdaq down another 50 points. Fur watching what is happening over the last two months they closed. Dow at the lowest level since the third. The 10year sitting at 0. 66 the story that seems to never end, tiktok. Here we go the owner bytedance applying for an export license in china as it pushes for a deal in oracle and walmart. They did not mention the pending deal and technology it was seeking to support calling the deal dirty and unfair they have no reason to approve it all of this raising questions about that prospect and what that would ultimately look like. What happened earlier in the week we were hearing that china loves this type of deal and the deal they are doing and think ever country should be doing. When they didnt have to export the algorithm they loved it when part of the deal was going to stay in the United States. They loved that. This exporting the algorithm is the line in the sand well see how much of that line is there. I dont think whats good for the goose is good for the gander in china i believe if we tried half the stuff that they pull over here, its no way it is flying im sure it is good for us everybody look out for number one. I dont know if we should say. You know, china is really fair about this, maybe we should be i dont know there is anyway these companies are going to be able to please both companies in this situation the Trump Administration and apiecing the chinese government. They want Different Things ultimately, they want the determination. Reaching the deal that is on both sides i read that they were asking, can we export this, it is better than being banned but i dont believe it either. Well move ahead with some tough news for movie goers disney is moving back the release of the slate the studio pushed back the release, a marvel movie black widow. Please dont remake that movie this is different. Must be a super villain. Black widow doesnt sound like a superhero. She useds to be a bad guy, now shes a good guy so you are hip to that . They postponed the remake of Westside Story for a year to december of 2021 trying to run a deal with that maybe that might be good timeless i bet it is updated. Im not sure how it would work but a really woke Westside Story. Shares of Movie Theater operators that had been counting on black widow what happened with mulan i watched it on disney plus you had to pay 29. 99 or something. 29. 95. Sorkin family also paid. Did you have like eight families over to amor ties that . No i was talking to andrew space it out in the backyard. All right, here is your 4 going to run a drive in thats a good idea. The driveway becomes a drive in this is another story the opera canceling its entire season that will not return into september next year. It wont resume until a vaccine is widely distributed, herd immunity and masks are no longer a medical requirement. The big implications is really not so much the metropolitan opera in it self there are issues for the met, the Lincoln Center it is broadway and the idea that broadway may follow suit. Everybody related to that entire industry in new york city may be impacted how do you possibly open the opera. They keep telling us one of the big issues is your in side voice. People who talk louder and project actually shoot off more virus. How do you have an opera singer or even People Like Us how do you control it . The hits keep on coming new years eve time square with no people there will be plenty of bathroom access. That was always a worry for me really what do you do especially if you are a little bit more advanced where an hour would be like a record foe me. The ball will still drop, the crowds wont be on hand to watch it there will be Live Entertainment and experiences. That could be a shot of it no thats too many people theyll have the music and the singing, mariah carey. Theyll broadcast to fewers but wont be anyone there, i guess impossible to do 25 and social distance. The same as sports weve gotten used to no crowds with baseball or basketball. You get used to it you deal with it so interesting. You point out to on broadway all of the Jobs Associated with that is what happened to Live Entertainment. Joining us to talk about what they are seeing and some of the devastating results when you shut down all Live Entertainment. Brutal. It is. I dont know what the answer is here. The journal has an interesting piece. An interesting piece about how great the news was yesterday from j j and how it is a model for a Public Private partnership and how it is really unfortunate it has been politicized by both sides. It has happened so quickly we were only supposed to get to phase one. And it is a 60,000 patient phase three. Cramer was saying this yesterday saying im going to take this a great news instead of saying, owe boy, cramming this stuff down our throats remember last time, one out of every Million People got the swine disease. Right before the jerry ford election look, companies have taken steps to say they are going to be very careful with this. That is something you can take to heart you are aware of this. J j is the Fifth Company to say, they are the fifth trial out there. There have been doubts. Democrats love government. I trust government taxes, government, government. I dont like it. You know what i mean, andrew i understand why i dont think anybody is upset about how companies are moving the concern is simply about whether these things are going to be approved there is ample evidence with evidence of this administration worked to undermine this process to direct the information. Youve heard Scott Gottlieb say thats not going to happen these people are not going to allow the pressure to do it. If you believe they are ready to stabilize that pressure. We have evidence of that happening and doing things repeatedly unfortunately if the fda has done that to cut corners. They have evidence theyve been map ip u lated different than rushing a drug that would be harmful and cutting corners in terms of safety let me say this, joe, joe yesterday, as you may know at least, i believe, four different officials were in front of congress yesterday talking about these issues and said that they wanted to have an Additional Panel of experts to lend credibility to the fda or the process so the public would believe in it which would make as much sense to me as anybody right after they said that, the president said that they shouldnt do that. Why would that be . It plays into the antivaxxers hands that now we are requesting whether the fda is going to succumb to political pressure. They had to write a letter and all sign it saying we are not going to rush it how much times are they going to say we are not going to rush it. I understand. Part of the problem. I hate to make it political but part of the problem is that the president he has repeatedly since when i hate to do it i dont want to get into a debate about it but it is the truth i dont. I dont want to. You dont i dont want to then lets not. Coming up, investment ideas from paul son with his election policy buy on the cannon, sell on the trumpets check out the shares of tesla. A decline set to continue after the stock fell more than 10 after yesterdays session after the battery day event failed to impress investors. Well be back. Financials and small caps are just a couple of the sectors our next guest would like to highlight. Joining us now, chief strategist for the leuthold some of the assumptions you are making and sectors you like, there is a macro back drop we should start with. That is a lot of reasons to think the economy is above stall speed. You think it was a vshaped recovery and as a result of it, that leadership would change. Im not saying well slow down we are going 30 in the Fourth Quarter. I think we are still going to grow maybe 5 to 10 in the fourth weve got strong momentum coming in a come of things are really good the stimulus that would already be introduced here, this is unprecedented. It takes about a year to start working. Maybe well start to see some of that work here as well we could have vaccine or treatment news coming out in the fourth or even First Quarter i think we are not going to shut this recovery down we are going to turn out to alleviate some fears if we do that, i think some of the leadership shift going on towards broader play small caps and broadening as we move to the Fourth Quarter and beyond. You like emerging markets if you back out china theyll be some residual bad feelings towards that entire market you like emerging markets. The small caps are totallier n valued is your favorite financials . A different play. I like industrials for the cyclicality play the problem with shorting the bond market is a lot of difficulties doing that. You can go long the financials the market, they trace out the 10year yield. As you look into next year, those yields will go higher. If im right on the macro story and growth will continue to improve. The Federal Reserve and others will have to back away from keeping bond yields low. There is already yield curve youve got a 10year yield which is 1 of the tip youve got 60 to 70 basis. 10year normally, that is at or above that expectation if the fed has to back away, not necessarily tightening but just stop easing that much, the bond yield can hurry a bit over the course of 2021 this crazy thing you figured out, you must overlay charts constantly when you figure out the savings rate the multiple rate, you could have a secular strong economy. You even go back to 1969 where it was big the labor market was so tight. It generated that 21 Interest Rates and 15 inflation. We have slac with the inflation rate youve got five or 10 years economic rate. I brought this up over a the relationship where the high savings rate says there is great demand Going Forward we had a high Unemployment Rate which says there is supply capacity to keep up with that. If you put that together, we look at the unspent buying power with slac resources, that will do better than people think. This also happened in the late 60s where we had a relatively high rate. Good growth and inflation. We have a record high untapped savings rate with a low output gap in this country. No one thinks we are going to grow well. Im suggesting some indicators that suggest maybe well be surprised and get a decade of solid growth we wont be japan we can get to that 2 level or above, hopefully not 10 a lot of people think we cant get contraction. That would maybe indicate we could. What time is it where you are . Far too early for us old people. Speak for yourself. Im up this time ever day. You cant sleep that great anyway, you might as well get up all right thank you for the update always interesting i dont know when you figure this stuff out you need a life. Anyway thanks an y andrew a new survey found most google employees dont want to return to work on a daily basis. How the company is responding. At the top of the hour, dont miss an exclusive interview with bank of America Brian moynihan talking to him about the state of the economy im hector. Im a delivery Operations Manager in san diego, california. Weve had a ton of obstacles in finding ways to be more sustainable for a big company. We were one of the first stations to pilot a fleet of zero emissions electric vehicles. The amazon vans have a decal that says, shipment zero. Were striving to deliver a package with zero emissions in to the air. I feel really proud of the impact that has on the environment. But were always striving to be better. I love being outdoors, running in nature. We have two daughters. I want to do everything i can to protect the environment to make sure they see the same beauty ive seen in nature. My goal is to lead projects that affect the world. I know that to be great requires hard work. Welcome back to squawk box, google is rethinking after a survey that says most dont want to come back to the office full time. 62 want to return at some point but not every day. Telling time magazine, the company is working on a hybrid work model some dont want to come back to the office at all and some is only for particular events the world of work may be changing so interesting how different ceos look at this so differently and thats what drives every companys approach some say, look, we need the people there it makes sense when you look at the big banks and it is a training ground. Other places, maybe you dont need to be in person as much that problem in its own will lead people to forget about it we are doing it now because of coronavirus and kids are at home youve got to figure out what to do if schools are closed interesting that this is going to be a company by company and usually driven by the person at the top. Very much so. New york without mass transit will be bad. Right what do you do even now, ive seen traffic around thanks are picking up not here. You can still get in ond out of here much easier if no one did come back. No one was taking buses or subways. This is all wed need. It would be gridlocked here do you want to get in a cab . I guess. I dont know. Uber . Again. Waiting on that vaccine. When we come back, the doj looking to eliminate Legal Protection for some big Tech Companies. Later, senator pat toomey weighing in on the fight to replace Justice Ginsburg and getting ready to deliver alpha next week back for the 10th year. You can visit delivering alpha to learn more and register as we head to break, lets look at yesterdays s p winners and losers as business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will. You can rely on the people and the network of at t. To help keep your business connected. Hold the phone in front of you. Hows that . Get. Get mom. Power e trade gives you an awardwinning app with 24 7 support when you need it the most. Dont get mad. Get e trade and start trading today. U. S. Equity futures are now in the black the nasdaq the red there has improved a little bit. Down a little bit after a tough session. The battle continued to heat up. Doj proposes to congress to curve the Legal Protection for Tech Companies joining us now, former sec commissioner and partner and senior fellow at the hudson institute. This is one of the tools i think that is it practical to try and do Something Like that in your view thanks for having me on bright and early this proposal by the doj in that report then the executive order from the president to file additional filing from the sec and this legislation isnt going to go anywhere in this congress. Weve seen this discussion for a while. Section 230 is 25 years old. Part of the Telecommunications Decency act in title two it has seen reforms from both sides of the aisle even former Vice President biden said earlier this year, scrap section 230. I dont think anybody is in favor of that. It is very hard to pass legislation and especially one that will affect as many people. I am bearish on whether or not there will be reform even in the next two years it depends what will happen with the election that will be even more difficult. I dont know the single investment analysts that would think it affects the valuation of the Tech Companies, et cetera, et cetera. Well see what happens it will be an interesting run. Well see if the companies dont do this themselves, there could be some pretty draconian solutions. Anything clearly hate speed. N nobody it should be clear it should be easy for facebook to deal with that. I get into a discussion about how subjective that get skeptical when the government tries to thread a needle like this by the way, im not speaking for anyone at my law form. Whenever you invite the government into your neighborhood, that usually doesnt work out that well when it comes to content issues. That is the First Amendment as well like the New York Times and wall street journal it will be right that some in section 230 are subject to the Supreme Court from a few years ago. That is an irony there it is difficult. Whatever the congress does or the sec may do could be appealed and probably would be appealed through the appellate court. You draw the line when you have the First Amendment of the constitution doesnt matter if you are a linear channel or the times or social media platform, everyone has the responsibility to make sure your content is appropriate and a First Amendment right to do so. That will possess a problem for congress i dont know. It is user generated youd have to have some pretty fancy ai to do that. Im inclined to say, ill take my chances, wild, wild west. I dont care how crazy it is space aliens i dont believe that i understand that. If you are using social media to oregonize violence or anything then that is just unacceptable is there an answer a lot of people say section 2 22 230 would work well. More for managing destructive content. There are folks when it comes to social media lean towards one slant. There is no easy solution here if you are going to be amending section 230. It will be difficult for congress to pass anything or the sec to come out with any rules that would be sustained in court. All right, rob. Thank you. I appreciate it. Appreciate your in sight well check back well probably be talking about the same thing well see. Thank you for having me coming up, treasury secretary Steven Mnuchin and fed chair pushing for more stimulus. Well talk to senator pat toomey on coronavirus relief. And Brian Moyinhan coming up you can watch on the cnbc app. Welcome back among todays stocks to watch. Bargain retailer dollar tree resumes buyback that was suspended in march the program it had previously authorized when we come back, senator pat toomey with the continued fight in washington and bank of america ceo and more a big show we are right back after this [ engines revving ] its amazing to see them in the wild like th shhh. For those who were born to ride, theres progressive. Welcome back to squawk box. Thousands of companies are suing the u. S. Government over Trump Administration tariffs to china. At least 3,500 companies are trying to reverse those. It is being described as a tsunami of lawsuits as american companies, importers are suing in a u. S. Court and maybe recoup some of what theyve paid. About 4,000 plaintiffs filing more than 3,000 individual lawsuits they are all filed in the u. S. Court of International Trade the Companies Involved here, tesla, home depot, target and ford thats a huge number of cases for a court that typically only processes 350 cases a year now dealing with thousands of cases filed at once to beat a deadline earlier this week legally, they are arguing that under the law, under the trade act and trade expansion act which authorized the tariffs in the first place, they are saying the administration did not meet certain deadlines under the law as it rolled out those tariffs and there for those tariffs should be considered invalid the law gives the administration the ability to modify those tariffs. This all hinges on whether the administration used its legislation appropriately or by expanding those was that an entirely different round and there for not appropriate. The administration hasnt responded yet. They can argue the law is the law by expanding those tariffs is exactly what they did thank you well keep tracking this mnuchin and powell will testify this morning in front of the Senate Banking committee pushing for more support joining us now senator toomey overseeing how the interest easi easiry treasury and the fed are managing the fund. Good morning. Thanks for having me it is important to know what the secretary and jay powell are going to tell you but the real question is what you think the fed and congress will do about it and whether you think a stimulus plan is really in the offing well have a discussion this morning, im sure, about the application of the fund. The 133 lending facility. And theres a divide in congress about how that is being used as for another round of federal spending and other stimulus bill, i think the prospects are pretty far below even between now and the election after the election, who knows, but, no, i think at this point it was probably even a lesson before the passing of Justice Ginsberg now with that, were going to be focused on that matter, the replacement, obviously another stimulus bill is less likely i want to talk to you about Justice Ginsbergs successor in just a moment. To the issue of stimulus, are you in the camp now that believes that some stimulus still is needed or and we know how the numbers come on recently the economy is doing much better thats something weve heard over and over. You see companies reinstating their repurchase programs. How do you see it . Yeah. No, im increasingly skeptical about the merits of yet another round, especially when i consider some of the provisions that have to be in it in order to have democratic support, such as sending even more money to the states moodys analytic estimates that theres a range of 250 to i think 600 billion in total costs and revenue short falls. The high end occurring only if theres another severe wave of coronavirus this fall. Weve already sent 500 billion supposed to send more than what they spent and what it costs snem especially when they all have their own taxing authorities, they all have their own ability to modify spending some are in great shape, some are not. I think thats a really bad idea i dont think it makes sense to pay people more than they can make working which is what we were doing through july and to a lesser extent are doing. It could make sense for k12 education, a lot of costs that are tough for them to deal with. I think we should have Liability Protection for employers that follow, you know, standard protocols. But i think the price probably has gotten to the point where its too high. Senator, where do you land on airlines right now given that the deadline for some of these airlines, they say they need more money, otherwise theyre going to have to layoff and furlough a lot of employees. Yeah. So heres the very painful dilemma for airlines, hotels, restaurants and that is the categories of industries where at this point its clear we now have excess capacity back in martha wasnt the issue. In march the hope was if we provide liquidity, we get people through a severe trough and pretty quickly we come out the other side and things rapidly get back to normal theres been certainly some increase in air travel, but were nowheres near normal nobody can say with any conviction when were going to get there, if Business Travel ever gets fully back to the levels it was at so the question then becomes is the taxpayer supposed to just maintain this excess capacity indefinitely or do we need to allow the economy to adjust to a new reality . Im in the latter category i think if its a matter of extending credit, thats one thing. Weve got a big program to do that for businesses that qualify. What do we do when this money runs out in a few months and the airlines are still not able to operate anywhere near capacity i think we have to deal with this reality senator, given that all businesses is looking at a time line, looking at a time line for a vaccine, im curious where you land on the issue bringing in experts beyond the experts at the fda to help oversee and provide, perhaps, additional credibility to whatever decision is made about a vaccine. Thats something the president said yesterday that he was not in favor of. What about you im not its not clear to me why thats necessary. I have a great deal of confidence in the fda. I also have a lot of confidence that theres not a Pharmaceutical Company in america that wants to proceed with a vaccine thats not safe and efficacious. The damage they would be doing for themselves would be so massive they have every incentive to make sure theyre getting this right, and so does the fda. Its not clear to me that we need to do anything different. And then, finally, on this issue of a successor to Justice Ginsberg, youve now publicly said that you believe a nominee should be brought to the floor for a vote explain your position and explain your position relative to the position that you had when back when obama was nominating somebody in that last year. Yeah. So history on this is very clear. The precedent thats been established for actually centuries. When we have had a vacancy on the Supreme Court and the two organs of our federal government that are responsible with the duty of replacing someone, that is to say the president who nominates and the senate who confirms, when they are of the same party, almost invariably they come together and they confirm a new nominee. Thats whats happened throughout our history and lets be honest, in 2016 when there was a democrat in the white house, if the democrats controlled the senate, does anyone think they would not have confirmed merit garland . Of course they would have. They told us however, when the parties in the senate and white house differ, historically the pattern has been when theres a vacancy in a president ial year, to let the election pass before filling that vacancy clearly we are in a point of alignment. Theres no disagreement between these two bodies that have that responsibility we should go ahead and confirm a nominee provided they have the qualifications obviously we should go through the process. Finally, i just wanted you to comment. The president was asked directly yesterday if he were to lose, whether there would be a peaceful transition. And he didnt want to answer that question. Are you concerned about that i think there are questions, by the way, especially among the Investor Community depending how this election plays out and just the uncertainty of it potentially what that could ultimately mean for the markets and, of course, invariably for the real economy well, you know, obviously candidates need to live with the outcome of the election. One of the problems were facing at this moment is we have states, including my own, that have devised rules or in the case of pennsylvania, a Supreme Court thats ignored the law and unilaterally imposed rules that will say theres an uncertainty for a period of time for instance, in pennsylvania the idea accepting ballots that arrive after the election with illegible or absent postmarks, i think thats a very bad idea that kind of thing is going to introduce some uncertainty thats not helpful right okay senator pat toomey, always good to see you good luck with todays hearing and we look forward to following all of it. Talk to you soon thanks thanks for having me. Still to come this morning,back of america ceo Brian Moynihan will join us in an exclusive interview that you dont want to miss squawk box will be right back. Everyone wakes up every morning to a world that must keep turning. The world cant stop, so neither can we. Because the things we make, help make the world go round. They make it cleaner, healthier, and more connected. Its what we build that keeps things moving forward. So with every turn, well keep building a world that works. I keep working my way back to you, babe with a burning love inside yeah im working my way back to you, babe and the happiness that died i let it get away servicenow. The smarter way to workflow. The 1 pediatrician recommended brand, pampers, helps keep babys skin dry and healthy. So every touch is as comforting as the first. Pampers. The 1 pediatrician recommended brand. music anncr give customers access to precisely what they want, when they need it the most. With adyen, the payments platform that delivers convenience for all. Adyen. Business. Not boundaries. The economy, state of the consumer and common metrics for esg. A squawks exclusive with Brian Moynihan straight ahead. Yesterdays slide sending the s p 500 and nasdaq to the lowest levels in nearly two months what you need to watch ahead of the open is coming up. And theres a Crisis Brewing for christmas. Why you may not see packages under the tree the second hour of squawk box begins right now good morning and welcome to squawk box right here on cnbc. Got a little nice music today. This is good im andrew ross sorkinalong with becky quick and joe kernen. Take a look at u. S. Equity futures. Dont stop believing you can tell me whether you want to believe or not. The dow looks like it will open 75 points higher nasdaq looking to open off about 10. 5 points. You remember what happened to tony soprano when he was listening to that in the diner. With that music yeah. You know, thats been confirmed. They left it blank and you didnt know what happened kind of slipped. That guy came out of the bathroom and that was the last thing tony ever saw. At least he was with his family but then i think his brains might have been on his well, we dont need to go into it. I hear that, thats what i think of immediately i started looking around, you know what im saying im in times square. If i go to if i fade to black, i want to let you know, i loved working with you anyway, go ahead, becky. We loved you too, joe thank you. Okay. All right, guys. Lets set up the next guest. An initiative to streamline esg metrics is in the works. Companies can report on ras regardless of their industry streamline that go is Brian Moynihan brian is the chairman of the World Economic Forums International Business Council he first spoke with us about this back in davos in january. Brian, good to see you. Its good to be here, becky and nice to see you again. Lets talk a little bit about whats happening here. To this point companies that have been focusing on esg, its been an alphabet soup. Youve been, working on pulling together something what are those metrics and why is it important to have it standardized i think when i think about the metrics i think about three cs, that theyre comprehensive, that they represent convergence and clarity. Theyre comprehensive in that they cover people, prosperity, govern nabs, planet. They cover all the sdgs which is important because various constituencies want to learn about one metric or another. The alphabet soup whether theyre standard setters, governments all over the world, theres a lot of different metrics coming out so we try to converge them into one set of metrics which a company can disclose working with a Big Four Accounting Firm and the work has been stellar along with the team to drive a set of metrics which converge the metrics to a group that people can do and then theres clarity. When youre asked by a shareholder, how do you do on human capital. Youll have disclosed that environment, youll have disclosed that what are your standards, who you hire, how you do that, thats disclosed. To answer the question with clarity to our shareholders and defined stakeholder capitalism you know, its important because companies have been looking for more ways that they can kind of address some of these societal problems but do it in a way that is beneficial to shareholders, too i guess i would ask, when you get the standardization, what does that mean you think more investors will start looking at companies on these metrics and start putting their shareholder dollars behind companies that fair well in these metrics . At the end of the day to solve the huge problems am the country faces, you have to bring capitalism to task charity cant do t. Governments cant do it. You have to bring innovation, capital, experience and Public Private partnerships along with all of those players. So this will help people understand we have aligned capitalism thats really the spirit of this how do you get that alignment between a shareholders interests to say im going to invest in company x because theyre doing good for their who shareholders and how do you give them the information to make that determination our Research Shows that companies that do well in the sg end up doing better or fail less those are important criteria for people to think about. And so its whether your customers want to see this, whether its your employees who want to see this or whether its your shareholders or other constituents, it provides that clarity and alignment. It alliance capital. It alliance capitalism it defines capitalism the way they define it how Many Companies will be taking these standards and putting them into place . Well, we went out to the ibc and 85 plus of the companies are highly interested in doing it the idea is between now and january the usual World Economic forum date, we will sign up those companies but importantly the Big Four Accounting Firms have been working with all of those companies to make sure theyre ready to do it we expect to have a significant portion of the ibc signed up its not just about the ibc. The idea is to roll them out to private companies. It gives them a way to think about how to meet the needs of society and deliver for the shareholders. Brian, im not sure that anybody in the country has a better idea of whats happening in the economy than you do bank of america banks one out of every two households in the country. The last time we spoke with you you said that Bank Accounts were actually increasing in a large number of people were saving more money is that still the case today yeah. I think two things yes, its still the case, people, our customers who are broad based, customers have more in their house than precovid especially when you get the lower dollar amounts average balance is 150 for accounts under 5,000. Thats the good news when you think of the other key question that we have great insight into is spending for september so far this year the spending by bank of america customers, both on debit and credit cards is up over last years september, first 20 case. The spending overall is up over last year which means that as you look at the run rate of the economy now, the amount of Economic Activity admittedly different than last year not as much as restaurants, more at Grocery Stores is back to the level it was its good news when you think of the economy and the recovery Going Forward. Those lower income accounts in particular, we saw those accounts pick up as unemployment checks kind of picked up, as other companies started paying more money for those emergency workers who were coming in, have those accounts continued to decline from when we talked to you last or has there been a slowdown rate when some of the other packages rolled off . Those accounts are larger theyre not as large as when the 1200 or the 600 were in them theyre holding up higher than the crisis which represents both the amount of money still in peoples accounts from those programs and the new program, the executive order Unemployment Program which is just going into peoples accounts over the last couple of weeks and still has a bit ahead of it. Secondly, the fact that people change their spending habits and the cash flows slightly better. Its still good. The question is where do we go next in all of this. If you think of the economy in the First Quarter excuse me, in the second quarter, it dropped by 30 if you had 100 , you dropped down to 70 now this quarter is projected to grow between 25 and 30 . Back up into the low 90s the question is the underlying growth was 1 to 2 that takes a period of time to cover up that last piece the good news is that our team, our Research Team which is the best in the world, has pulled in the crossover from when the economy is bigger from the First Quarter of 22 and moves it ahead three quarters andrew talked to one of your quests, what would the stimulus achieve. Another stimulus would achieve speeding up that recovery or ensuring that recovery takes place. Theres two aspects. Pure aspect and human question how do we help people through no fault of their own make it to the other side of the river and cross the bridge like other economies cross. That was my question. It was senator pat toomey who andrew was just speaking with. He says he sees less need potentially for a stimulus package. Thats a common refrain from many of the politicians weve spoken with lately what would you say to them in terms of what things look like with credit card delinquencies, mortgage delinquencies what do they look like they were lower now than last year thats because as people come off of deferral, were down to a couple hundred thousand credit cards left the credits been amazingly solid. We put up big reserves well see what happens as the economy continues on, but the Unemployment Rate is still over 8 thats not healthy for the American Economy the question is if this thing goes on longer, the question is will it become more permanent. Thats what the Federal Reserve and chair powell speaks about. The economists are the longer it goes on, you break confidence. In my view, the stimulus has to be aimed much more precisely in the past it has to be aimed in performance venues, restaurants. Another round of ppp will be helpful to help the restaurants. Im here at 1 bryant park. The issue is the restaurants downstairs are not back at the condition and in the winter can have outside dining. If you want the restaurants ready to open when teammates come back and buildings for other companies, you need to think of another round for ppp if you want to help the states cover up the losses due to covid, thats a question of state help the debate about what exactly to do is more a debate about how fast you want the recovery to take place and the human question which is people are suffering. We need to help them we believe at bank of america that another round of stimulus will be appropriate. Much more narrowly defined than in the past. The broad base of the economy has come back. 92 of people are employed the amount of spending has gone up they dont need to help you or me, what they need to do is help the people still affected by this. The question of states has been a political hot potato. Thats been one that has really gotten push back and i think the states and local municipalities getting help is going to be a pretty heavy lift at this point. When you look at the states, its about the money theyve spent trying to deal with this directly and the huge tax revenue hits if youve closed down the stores and restaurants, youre not getting sales you might have traditionally gotten what would you say what would you advise on this front . Youre laying out the issue right in your question, which is do you help precisely with the hole in the budgets put by this, the cost of accommodating this disease . School support to have distance classrooms, virtual learning, things like that do you help them do that thats not new concept thats by taking the death by the states which is to solve a common issue it goes back to hamilton in pulling up the debt whichis th debt around fighting the revolutionary wars this is not a new concept. The question is do i want to do it or not. Is it helpful to keeping states in laying off another round. Theres been a lot of stimulus to the states, some of it is not even spent continue to provide coverage for those issues that are really related to the virus its a national problem. Its a global problem. We need to win a war on the virus. Address the fastest possible way. Brian, you mentioned about employees coming back to work there in the building. Whats the time frame for that whats the scheduling . Whats it look like . When do you anticipate youll have more employees back were operating fine. Weve had 90 of employees working from home. Remember, we also have our branches are open, our teammates are working there. Youve had teammates working 234 centralized locations that the nature of the work they do was there. Outside United States we have brought more employees back. It will be slow and careful and based on safety of employees well get employees 30 days notice we will start to add some employees over the fall here very critical spots where we think those teammates can be help our clients and our company operate even better than its operating now. Its been remarkable, not only our industry, our industry in general how weve operated in this environment thats the question. Be slow, be careful. If an employee has an issue with a parent theyll take care of, if they dont feel comfortable, its up to them to work back well work them through as the path of the virus becomes clear and the vaccines are clear it will be slow and careful and based on employee safety like weve based it so far. Part of the problem is not just making sure people are safe in the buildings but in a city like new york city, trying to take Public Transportation to get to those places. What do you tell people or what can you offer them in terms of having concerns about maybe getting on a subway or on a bus . If thats our concern, thats the idea we give them plenty of notice and make the decision. Its not our decision. We have people live in the walking distance, we have people commute by the Public Transportation and drive all of those types of things go on remember, we have lots of employees outside of the city even though its a great city and everybody focuses on it. Think about in jacksonville, florida, we own our park lots of people drive up. You have to think of globally around the country yes, Public Transportation adds a layer of outside influence and we can have people drive up and keep them safe one guest talked about the bubble and the question is how do you create the environment . Some colleges came back and how do they work well and were studying this thinking through on a continuous basis, whats best for the customers, employees and get the country back to normal it may take us some time, thats fi fine. Financial stocks have been under pressure warren buffet has sold many of his financial stakes while he was selling some Companies Like wells fargo, he was buying additional shares in bank of america. He added i think another 21. 2 million shares bank of america last we learned and owns 11. 8 of the banks shares have you spoken to mr. Buffet about his purchases at b of a. Mr. Buffet has been a great supporter of ours. This is the best banking franchise of the world, the best company and he continues to invest heavily in it we welcome that. We have a lot of capital buy back stock as soon as the clarity comes, were going to be in the market, too. Our stock is a great buy and im glad others mr. Buffet recognizes that, has been supporting and tonge add to his position when do you think you might get the approval to go ahead and buy back shares . Well see it was third quarter, maybe well find out what happens in Fourth Quarter we dont know any more than you know when it happens, it happens. I think people have to think about the long term here think about what happened in our industry and our company we went through one of the deepest down tracks in economic negative growth thats ever happened we got our customers to grow we received a lot of funds from the stimulus programs and helped distribute them. We length to our customers gave customer assistance programs to help them get to the river across the bridge as i talked about earlier we have been there to help we have ducked our reserves round numbers. Weve earned 8 or 9 billion after tax and our capital is higher, liquidity is higher. Thats pretty much true of the industry that means this industry is in good shape for whatever comes after us we have capital ratios far in excess of our minimums when the time comes, well be able to do it. Whether its next quarter or not, well find out when you find out. Brian, Charlie Scharff of wells fargo kicked up controversy when he said the pool of Diverse Talent is not very deep and he had had trouble trying to find diverse hires hes since a 3pologized for diverse hires and that comment what are you doing we have been able to add lots of talent to this company, including Diverse Talent in 2019 we hired 7500 latinos, 4500 africanamericans we continue to hire. Thats why were making progress if you look at our numbers year after year after year at all levels of the company, we are trying to achieve the reputation of our company that is the reputation of society. We are very diverse in terms of new hires, 45 are people of color, half women for many years in a row and if you look we publish our going back to the metrics in publishing that one of the metrics is that its part of the equation, diversity and inclusion metrics. Anybody that looks at that will see weve made progress every year the talent is there. We continue to hire. We work special programs our Pathway Program was committed to hire 10,000 colleagues to help staff consumer business in those communities. We completed that. We said it was five years. We think it was three years. Military going to hire 10,000 people from military over five years its been 3 1 2. We work with the hbcused, hsis weve been after it many years thats why you can see forward progress year after year after year of the diversity, male female, all different ethnicities in our country the talent is there and we keep working with them and thats what makes our company a great place to work. Brian, i want to thank you for your time today. We really appreciate you being here thank you, becky. Take care well talk to you again soon. In the meantime, shares of tesla sliding in yesterdays session. This morning more of the same. But is it a buying opportunity or is there more down side ahead . We will talk about that. See tesla shares down by 2. 8 . Week to date, they are down 17 . Squawk box will be right back. Comingup, tesla investors faces a fork in the road jon foird going to join us with both sides of that argument. Are you ready for christ naas . Well explain now. Time now for todaysaflac trivia question. What Consumer Electronics company was founded under the meouf music . The answer when cnbcs squawk box continues aflac now tell me, what does aflac do . Aflac pays you money directly to help with unexpected medical bills. And is Aflac Health Insurance . No, but it can help with expenses Health Insurance doesnt cover thats right. Are there any questions . Coach yes . Can i get one of those cool blue blazers . You know i cant play favorites. Alright lets talk coverage. Its go time get help with expenses Health Insurance doesnt cover. Mmm hmm get to know us at aflac. Com the answer to the trivia question is best buy the Company Changed its name in 1983 all right. I didnt know that tesla, the stock, dropped 10 yesterday. It has lost about 1 4 of its market cap since the high that was set three weeks ago. 1 4 sounds like it could be a buying opportunity or did it move so much that its totally overbehind jon foirde is here. We ought to talk about it. How does that sound . Lets do it, joe. Elon musk is a genius. Tesla is massively overbehind. It has a 350 billion market revenue. Elon says it will grow 30 to 40 . At that rate it will take a long time to justify that stock price. Dont let your love for a brand cloud your judgment about the reasonable price to pay for future earnings. Even if its the future of consumer solar power, this has gotten way out of hand now youve been washed id say the tesla mythology is running on fumes but this is a 0 emissions car. Youll need one in california, jon. That notwithstanding, is tesla doomed well, on the other hand, when we look back, joe, on technology in the first 20 years 26911st century, well remember the iphone and tesla those two pieces of hardware, period i dont know about tesla being over behind. Is the stock price over heated sure, maybe. A lot of people thought it was overheated at 200 bucks 3 months and 75 ago. Lets not be day traders is tesla behind . The answer is no this is more than a car. For years ive been hearing tesla had a good run look out for the nissan leaf now look out for nikola. Yeah, look out in elon musks leadership in vision and software, tesla has Something Special here theres no denying it, joe yeah. It might get more special, jon, if you can go 0 to 60 in two seconds and 200 miles an hour and its even sleeker, lighter, faster so, there is some value. Where is the value would you say in tesla well, i think its interesting having watched technology over the last 20 years. A lot of the innovations are small. Whats unique about elon musk and tesla is they tackle these big, huge harry physics problems thats true of tesla, true of spacex we can see of others trying to follow in his wake how hard it is even though every year or two we get these stories about heres the next tesla, we havent seen it yet i think i guess, jon, i dont own one but people who do talk about the interior is so clean and the technology so amazing. Head and shoulders above anyone else trying to do it and then i think about the battery. Thats not that might be Rocket Science i was going to say, its not i think maybe it is Rocket Science, isnt it . It is such a good cliche to use. You cant use it with elon musk. Is it rocket surgery. Rocket surgery. He could probably do the brain surgery, too, i dont know its one thing to look at where the stock is any particular day of the week. Yes, that is important hugeness, the size, the significance of the problems that tesla has significantly and successfully tackled up to this point, thats real. I mean, i can remember the what we used to think about with an electric car. I remember a clip with the simpsons it was like a golf cart. Think about what we think of teslas now we think about 0 to 60 in two seconds. You do not think of it as an electric, an ev from the past. Its an amazing thats what got cramer remember cramer . He stopped looking at really the financials and said its such an amazing car, its just hard not to even like the stock because of the car should we believe that hey, you know, i can take both sides but i cant take one side ive told you i told you not to you were trying to protect me off the top. Old man youve definitely said something that has irritated both sides, i guarantee it im going to give out your twitter. J jonforttleavemeoutofthis. Thanks, joe. A breakdown of what you need to be watching ahead of the opening bell on wall street after yesterdays selloff. At 8 a. M. Eastern time, Liberty Media, greg maffei is going to be our special guest. A lot to talk about stocks that are doing really well because of the athome trade and other businesses that are under pressure because you cant go to live events. Also, a programming note for you. Getting ready for delivering alpha next week. It is back for a tenth year with special guests including Steven Mnuchin, carla harris and many, many more. You can visit deliveringalpha. Com for more and to register. Squawk box will be right back. Thats what my dad does. Good job, michael ok, lindsey now tell the class what your mommy does. My mom has super powers. Its like she can see the future. What . its like she time travels in a rocket ship. Thats cool and then she comes back saying try this or try that. She helps everyone. She helps them feel less worried. Wow mommy, so what is it that you do . Im a financial advisor. She is aig proudly supports all the professionals taking care of our financial futures. But a resilient business you cacan be ready for it. Re. A Digital Foundation from vmware helps you redefine whats possible. Now. From the hospital shifting to remote patient care in just 48 hours. To the university moving hundreds of apps quickly to the cloud. Or the City Government Going Digital to keep Critical Services running. You are creating the future on the fly. And we are helping you do it. Vmware. Realize whats possible. Well come back. It has been six months since the market lows. How to be positioned for what may come is jim keenan global head and for credit at blackrock and Gabriella Santos jim, ill start with you we have been on an upwards trajectory the question is, does it last . We have guess whether stimulus is needed. We have an election coming up which could create volatility. I think obviously volatility will come back into the market were seeing that now because of the rate of change because of the recovery were at a period of time as we get into the election, theres a lot of uncertainty about what that means, whats going to be the outcomes we see the virus data start to spark. Weve started to see some sell i think that being said youre still at a point where the data around hospital rates, vitality rates and or vaks seens or treatments is Getting Better regardless of who wins the election, youll have a policy that is accommodative. Well see a multiyear recovery to get back to levels of 2019. So just to put a fine point on it, in terms of an entry point, you think right now is just as good as ever a time . I do. Global rates are going to give you very low rates of return when you look at it from a longterm investor, now is a good entry point i think you have supported policy and earnings recovery and theyre not the same returns youve seen over the last six months today is a good point to buy spread product and credit. We have a positive review of risk assets. We still think were in a structural bull market and at the beginning of a cyclical product. We have plenty of support of the first few years. We very much agree that volatility is in the cards for the next few months. And there are fundamental concerns so i do think you still want to be over weight risk assets you want to be careful with the sizing, balance that with diversifiers on the other side as well. In terms of what that mix looks like, you know, we always talk about the Tech Companies and then the under loved cyclicals that havent been touched yet. Maybe that will be the big move. We want to be balanced 50 50. On the defense side theyre defensive with the covid era there will be structural themes and there are positioning risks. On the other side, value side, there are fundamental signs right now. Those can turn into catalysts once we get more visibility around a vaccine in terms of timing, distribution more visibility on treatment and also just more visibility on fiscal policy as well. There are pluses and minuses on both sides so why not be balanced between both. You dont have to just do that within u. S. Equities you can be positioned in u. S. Equities for the growth side of that equation and international for the value side of it okay. Weve got to leave it there. Jim, gabriella, thank you both for joining us thank you thanks, andrew. Thanks, andrew when we come back, christmas crisis is brewing. Why now may be a good time to actually start shopping, especially if you are doing it online Frank Holland will have that story for us. Later, the cochairman of the latino cochairman of the truuillo group squawk box will be right back. Clean is a feeling. Its the simple joy of washing your hands, without ever touching a faucet. Its the Little Things that matter. Thats why we create moments to feel kohler clean, every day. A couple of stocks to watch this morning Goldman Sachs and fed ex upgraded to buy. Fed ex is benefitting from pandemic related changes including much faster growth than anticipated then theres dollar tree resuming the stock buy back position the discount retailer has roughly 800 million in buy back authorization remaining under the program. All of these repurchases somewhat controversial given the fact that so Many Companies have been helped by the Federal Reserve, a conversation that is going to be happening today on capitol hill when chairman jay powell speaks. News alert. A number of companies are joining forces to put pressure on apple and other stores to change the rules the Big Companies leading the charge is fortnite maker, ep phi, spotify and timber owner, match group. They filed as a nongroup called the coalition for app fairness among their complaints and demands, the companies accuse app stores from collecting excessive commissions and giving up fair advantage to their own products theyll push for legal and regulatory changes becky . Joe, you heard this yesterday when we had dillner on he laid it out with match group. Thats one of the entities thats been so angry about this. He said to charge 30 simply for having the privilege of 3u9ing it on the app store, thats what he thinks regulation is going to change that. Two days ago . I come out on the other side of this, i think, as you know, which is to say that i by the way, regulators are going to do something to apple what i still dont understand about this is this is a product built by apple its a market that didnt exist before apple built the phone they never changed the price ever so its not like they somehow got market share and then started gouging people. Its been 30 from the beginning. You can be upset about it but these companies decided they wanted to effectively make a particular specific almost white label style product for this phone. It would be like a it would be like if you were a supplier to an automobile maker and then somehow you decided you were upset about the deal you have with the automobile maker. I find it a strange argument. Im kind of like jon fortt here i can convince myself both sides. I would compare it maybe to a walmart. Walmart can choose to markup the product, and barry dillner made this point, too. In the end it means higher prices for the consumer. But the same thing happens at any retail place if you are heres my on the other hand yeah, i rate if you are walmart, you get to decide how much you markup the products youre putting there. Thats essentially what theyre doing. 30 markup the companies that are the apps that guys are doing it you can make the argument that, hey, you shouldnt be allowed to mark something up 30 . Youre the retailer. You own the idea you can mark it up by however much you want. The customer can decide whether to buy that or not apple has so many people that it controls that market if youre not in front of the apple phone users, youre not going to go very far so you i dont know. I can take either side. No, i cant im uncomfortable with andrew but im realizing this is the second time. You won at amazons jobs in new york until aoc screwed that up and now you like apple its twice now so thats progress thats good. Were together on both of those. I just think were coming along. Were coming along. I have to rethink my opinion now. And the lululemon which i think frank well move on because he tweeted out a picture i thought he was here spying on me because im wearing the same pants that he had on he has a picture of your pants . Yeah, he does theyve been washed. At least once, right . All right. Lets talk about what frank is here to tell us all about. Millions of gifts may not make it under the tree by christmas this year despite sales starting earlier and Delivery Companies adding hundreds of thousands of workers. Thats because supply chains and Delivery Networks are maxed out by this pandemic this pandemic field surges Frank Holland is here. He has more on this as we play the grinch frank, whats happening . Reporter good morning. That music is a little distracting. 700 million Holiday Gifts globally are at risk of just not arriving on time Global Supply chains can be pushed as much as 5 over capacity as ecommerce just booms. Were already seeing signs of logistics strains at u. S. Ports. The port of l. A. Has businesses adding inventory ups, fed ex and they are seeing holiday volumes. 98 further strain on capacity amazon which touches more than 1 3 of all ecommerce is experiencing it. Only 70 were made in 2 days same period last year, big difference 78 million packages are shipped. Thats forecasted to surge to 122 million. Now keep in mind historically 30 of that is returns not to get all whos on first. I just want to tell you, theres potential that you buying gifts for you and returning them, which is a growing trend, could be the reason that your Holiday Gifts dont actually arrive on time i think we have to keep joe off that lululemon site shopping for himself. Hey, frank, this is such an interesting story. Theres so many layers to it, too. I spoke to katie farmer. Shell join us to talk about some of these issues the port at los angeles seeing an increase in volume of 18 , part of the big problem is we have drawn down so many of the what we already had stocked up in Distribution Centers and theyre trying to restock those as much as they can. Tie this back to the shutdown that came earlier, the reason that the Distribution System didnt get refueled and consumers stocking up on so many of these things, too maybe once they get some of that worked through things get a little better, maybe. Its a double sided issue, also, becky. In the fulfillment centers, it takes more people to send out an ecommerce order than it takes to stock the shelves in a gap and you go in there and buy it yourself right now theyre trying to filling out the labor level they need and ways to get things out the door you need people to pick, pack, and ship the shippers themselves, as you can see, their volumes are so much higher. All the way down the supply chain. Right very good, frank thank you yeah. I dont actually buy my own pants, frank, believe it or not. Ive got someone who actually we have people who do that so im not even worried about it. Its he not me if its all clogged up coming up, sol trujillo, owner of the latino group, squawk box coming right back you can go your own way go your own way your wireless. Your rules. Only Xfinity Mobile lets you choose shared data, unlimited or a mix of each. And switch anytime so you only pay for the data you need. Switch and save up to 400 a year on your wireless bill. With the carrier rated 1 in customer satisfaction. Call, click, or visit your local xfinity store today. New report out this morning of the growing Economic Contribution of latino living in the United States. Sol trujillo the numbers, weve seen some of these before you brought them to us it keeps growing we didnt revisit these things, these numbers which when you hear them its just hard to believe. So u. S. Latino gdp living here, sol, would be the eighth largest gdp in the world and bigger than italy, brazil or south korea. Just living in the United States thats something that people need to know about because we need to probably react in certain ways to that info. Good morning, joe youre exactly right i think one of the key points of bringing this to the conversation here on the show is that at the end of the day you can talk about tech, you can talk about trends, you can talk about a lot of things but you need customers you need workers you need people that are creating the productivity in the economy. Gdp becomes a critical number, not just the dow, nasdaq, and s p. So one of the key things that were doing is trying to bring this reality to us in terms of how we think about our economy and the u. S. Latino cohort is driving so much growth that in the latest study from the time we talked last year the u. S. Latino cohort outgrew the gdp of china and india. China by 30 , india by 21 , and its already the eighth largest and it will soon pass france and soon pass the u. K. And india in terms of size and, as you said, right here in our country. Right you make the point, youre quoted saying the difference between the 21st and 20th century are the two ds one is digitization, we understand all the things that are different in our life now. Hard to imagine i carry this thing around its like carrying around a travel guide, a map, encyclopedia britannica, everything else, its crazy. The second thing is demos. Demographics diversity in the country demos and diversity are the second d Business Leaders need to Pay Attention to that, i think, if theyre going to take full advantage of what the future brings well, you know, joe, youre exactly right. You know, when i was running telstra, we made an entry into china, i didnt bring a lot of people from pennsylvania and wyoming and other places to go work there because i wanted people that understood the market when i was in africa, when i was in france, when i was in other parts of the world you need people that understand the markets and you need people in your Senior Management you need them on boards. The latino cohort only has 3 of all the board seats while its generating very disproportionate growth in the b to c sector. It might be as much as 70 when you look at Net Sales Growth across almost any b to c sector and now moving into the b to b so as a country and as leadership, we should understand how do we catalyze more growth number one, the latino growth cohort its about capital flowing and its also about having talent that understands the market. Well, thats what do we need from policy makers . What would you like to see from policy makers and what would you like to see from the private sector in terms of what ceos do . Great, great question number one, you and i talked about we need Immigration Reform because we have a worker shortage were losing 350,000 people almost a month that are turning 65 that are either going into retirement or semiretirement, whatever it is so we have a work force issue if we want to grow gdp. The second thing is we do need to stock the boards of u. S. Companies. I think its 2 3 of the u. S. Fortune 100 have no latino on a board, which doesnt make sense to me as a person that wants to understand the consumers where my growth is, right . Then secondly in terms of the c suites, we need people that understand the markets because you know how to the theme ma particulars, you know the drivers of growth and you know how to relate to the consumer buying your products and services whether it be b to b or b to c. Sol, been a while want to see you soon update us on this. Crazy numbers. Just knowing the numbers i think helps us understand the path forward probably yeah, its phenomenal. Thanks. Well see you around thanks. All right, becky. Thanks, joe. When we come back, Liberty Media ceo greg maffei joins us later, dont miss robin hayes. Brand, helps keep babys skin dry and healthy. So every touch is as comforting as the first. Pampers. The 1 pediatrician recommended brand. Good job, michael does. Ok, lindsey now tell the class what your mommy does. My mom has super powers. Its like she can see the future. What . its like she time travels in a rocket ship. Thats cool and then she comes back saying try this or try that. She helps everyone. She helps them feel less worried. Wow mommy, so what is it that you do . Im a financial advisor. She is aig proudly supports all the professionals taking care of our financial futures. Good morning september living up to its reputation as a tough month for stocks major averages falling hard yesterday. Were pointing to another lower open this morning, albeit not nearly as bad. One of americas most Prominent Bank leaders calling for more coronavirus government aid. We believe at bank of america that another round of stimulus would be appropriate, but much more narrowly defined than in the past toppin vestor take aways from ceo Brian Moynihan. Media Growth Opportunities precarious situation for American Airlines and 2020s infak ti infatuation with spacs we have maffei, hayes and jay clayton. The final hour of squawk box begins right now good morning and welcome back to squawk box here on cnbc quick summary of the futures which are now negative again on the dow. The dow had turned positive briefly. Down about 47 points 500 point drop yesterday which mid session was actually looked a little bit worse than that 500, it was well over 2 in terms of the drop. Finally it was a little bit less than that by the close the nasdaq took it on the chin yesterday. Seemed to be the first average that turned down after it looked kind of like it was going to add to some of tuesdays yesterday was wednesday. It was going to add to some of monday and tuesdays gain but it did not. It was down significantly. Down another 80 points or so today. S p down all of this is after yesterdays sharp drop for the major averages deteriorating in the afternoon as you can actually see it happen there. I dont know where we are right about now. There it goes. 2, 3, 4, 5. It got in the high 5s it was well over 2 for a while. Then closed, as i said, down 1. 92 . We were at 666 earlier on the be good to get either in the 5s or 7s so we dont see that as much handle a. 5 or a. 7 on a 10year. Every time we come up it says. 666. Maybe that was the problem yesterday, andrew. Meantime we have a call for more government stimulus from one of americas leading Bank Business voices. Brian moynihan joined us exclusively last hour. He said another aid package would speed up americas economic recovery or at least ensure what happens in the first place. He spoke about a purely Macro Economic comeback but also helping Everyday Americans weather their own financial woes. The sharp snap back has to be precise. It has to be aimed much more precisely than in the past it has to be aimed at the people unemployed it has to be aimed at the performance venues, restaurants, another round of ppp will be helpful to help those restaurants. Moynihan also speaking about consumers saving and spending habits he said b of as customers have more money in their accounts today than before the coronavirus hit. Although it has meant credit and debit holders are spending differently and there are a lot of pieces of news and surprising moments in that conversation that you had, becky. Thanks, andrew. The idea that theres one that was a year ago those are all signs and said that credit card delinquencies are below where they were. Counter balance what happens next if there are going to be massive layoffs. Whether 8 unemployment, whether that becomes stubbornly set. Those are big questions. Maybe thats it that was our big story yesterday, right people did pull i mean, i think in this environment liquidity people are more liquid, i think. I was surprised to hear that maybe thats a reflection about not much spending. Vacations, air travel. Luxury, things like that that was the other point he made, the longer this continues, the longer you have those high levels of unemployment the more it breaks Consumer Confidence the less willing people are to spend because theyre worried their job will be next if you can get the stimulus to boost that, his point was you could bring forward when you will see that return to the Economic Growth we will see before we went into the pandemic thats been the case that weve seen from Steven Mnuchin arguing in front of congress and arguing in front of jay powell he will be speaking again today trying to make that point, however, weve talked about it in washington i dont know how you get anybody to agree on this stuff because its a tense situation. I dont think anything is going to happen before the election and well see what happens after. All right right now weve got another chance to see whats happening with the economy well be sitting down with the head of one of the worlds biggest media companies. He oversees Charter Communications, live nation, formula one, Atlanta Braves and many more businesses qvc, trip advisor on this list a lot of these businesses has seen a lot greg maffei joins us. We havent spoken to you in many years. Great to see you. Thank you, becky. Great to be here lets talk about what you are seeing you have businesses that are front and center with things shutting down, things like live nation obviously sports have had to be really different with the braves and with formula one, but then youve got other Companies Like qvc that are probably seeing a big increase as people are buying things from home. Tell us what your take is, what youre seeing, how long you think some of these changes will last i think youre exactly right, becky. We really see in our case and i think in much of the economy two different tracks this two track economy is seeing certain businesses that tend to be digital or also the spac track where theres a lot of capital being applied, a lot of demand has been accelerated. You mention some of the cases we have Charter Communications has recordbreaking numbers of new broadband and we have alaskan Cable Company gci which has the same impact. We have a sirius xm where car demand and churn are very low. We actually are seeing amazing strength in sirius you noted qvc where and some of its subsidiaries like corner stone brands which are able to molt and serve a home customer meet the needs of staycation, home orientation are doing well. Then you have the other track where the live events, travel, even sports to a degree because of the lack of in person fans has been impacted. You see that in many kinds of smaller businesses we are lucky that we have enough scale to build liquidity and withstand that long cycle on second track that many smaller businesses dont have that liquidity and are challenged greg, you are not a quarter to quarter kind of guy your gift is you are a longterm thinker and you see changes taking place over broad spectrums. I just wonder how much this pandemic has kind of fast forwarded some things that were happening before and how some of these industries are going to be changed forever in your view. Well, i think youre being generous in calling us looking long term. We try we have the benefit of having some track record and strong shareholders willing to ride with us. Thats been beneficial if you look at the trends out there, clearly you saw growth in broadband. You saw growth in many of these, people are getting used to the eds of these things. Our demand for band width continues to go up and i dont think thats going to abate, whether its because people are doing more at home from a personal perspective, or theyre doing it from a business perspective. I think thats going to stay quite high other questions about what happens in terms of the longer term around going to concerts or travel, we see a lot of pentup demand 86 of our customers who have a concert ticket and have been postponed at live nation have kept the ticket and said ill want to go only 14 have asked for refunds. Thats no higher than what we normally have. The pandemic hasnt changed that demand what has changed, obviously, is safety and regulations around our ability to bring people together i dont think that has changed demand for live events, personal travel Business Travel has changed. Personal travel will be high when people feel safe. That doesnt appear to be gone away it doesnt appear to be going away, but i wonder how much structural damage will be done to the industry. Weve spoken to artists and people who represent venues and things how many venues are going to go away because they havent been able to hold an event for so long not to mention lighting, people who are catering people. You wonder how much damage an industry can take when they cant have live events for a year or longer. Absolutely. Live nation, Michael Arpino has gone out of his way to help the support staff, the people you mentioned, lighting, stage, all of the people around that. Theres a big fund live nation is trying to help. Surely that will not be enough because its a Huge Industry that has been impacted structurally i think venues will have to restructure. There will be changes in the industry and, you know, as often happens, lots will change in terms of what advances are given to venues, what advances are given to artists because of the nature of how much competition there is and how much capital there is to do that. I do think there will be big structural changes i go back to the fundamental point. I dont think there will be a change in demand there is a problem of getting them to the concerts today understandably for safety reasons. Now weve also had does that make live nation enormous demand for Virtual Events weve had many thousands of Virtual Events with millions of fans that obviously is a place holder i think for the ultimate goal. Live nation and others have adjusted to try to meet that demand in a virtual world, but i dont think thats going to be the ultimate solution. Related to that, on the Virtual Events, how much do you think that may ultimately undermine the live events or create some kind of hybrid version. The reason i ask the question, oftentimes the Virtual Events are free or for a much lower price point. To some degree you could argue that a lot of the artists have almost commoditized themselves by sort of leveraging social media during this period but have become much more accessible than they ever were in some of these cases. The question is does that make it easier and better when the world comes back post pandemic and make it more attractive to do everything in person or are people going to be forced to do the hybrid model and, therefore, it will change the whole pricing structure . I do not think, andrew, that thats whats going to happen. I think artists are reaching out to touch their fans and fans are wanting to touch artists weve seen a relatively small percentage of our fans want to give up their tickets. People want to get up. I actually think to the degree we can safely do it, there is going to be a ton of pentup demand there will be a high supply, artists want to tour and need to tour there will be a high demand, the public wants to get out. Thats contingent on keeping it safe people will be fever pitch on having concerts. My 17yearold, the same way. This is such a time of upheaval and such a time of potential changes, some industries going to see a big amount of change youve seen things differently the idea of combining formula 1 with live nation and having them together or pandora with sirius. I wonder if this is a time of opportunity for you. If you can see things working together that wouldnt have in the past. I think there are combinations and the back of 2020 unless you are a digital player playing with a Digital Currency or being able to leverage it digitally, its a tough time to do some of those kinds of deals hats off to microsoft. I think their acquisition, cinemax, exactly whats the right kind of acquisition, makes a ton of sense harder for people like live nation to jump up today into the space, which is still how long will we be out i do think we went through a period of fears about liquidity in march when the fed brought forth liquidity. There are still issues of two tracks i talked about. Not the digital track, not the spac track where people are throwing money at it, but the other side of the house where we might have called it the real economy, there are going to be a lot of issues in 21 and then the opportunities may arise. Its going to take a long time to have that credit cycle work through. Hey, greg, its joe im thinking about the braves. Congratulations. I appreciate that anyway, im wondering long ago Atlanta Braves did a great job of becoming more of a National Team than just what we think about with local teams is that holding up i dont care that its 60 games. Im watching more baseball now than i ever have i actually have mlb network and everything else. I cant believe i watch almost any game thats on early that i get to watch do you need how bad has it hurt that there arent any concessions . Where youre playing at . You have another new stadium does that hurt that you dont have fans yet . Absolutely. Look, demand for television side, you started out noting the braves have something of a National Footprint and thats a credit to ted turner and the old days of tbs. Some of our demand is still high nationally theres no doubt we have a fan base thats broad. We have a fan base broad in the southeast. We have the largest territory foothold in the baseball franchise. Our demand is good and ratings are good part of that is due for a period of time when there was pure sports alternative part of that is due as you note we won our Third National east championship title weve historically been a very successful franchise 20 division titles, the most since 69. Its a franchise with a long history of success that having been said, the performance, the Financial Performance of baseball as a whole including the braves this year without fans is going to be horrible we are all going to lose a lot of money its not a sustainable condition without fans over the long term. Its going to have to be restructured, thats the longterm case now commissioner manfred has said well have fans at the National League championship series down in arlington thats certainly our hope. Getting fans in is not going to make an enormous difference financially for this year. Getting fans into the long term is critical. Roughly half the revenues are fans and fan based versus the television and other forms of revenue. If i send you a fat head of me can you put it up . I can probably make that happen, joe . Honestly . I might have drawn on the fat head but it will be right youll put moustaches. I may do that. I may do that. Hey, greg, let me ask you about news we learned this week. Nelson peltz taking a stake in comcast, our parent company. You know comcast well. You know the industry well what do you think of that move i think it was a 0. 4 stake. Well, first, whats amazing is that comcast is a big company. 0. 4 stake i think is a 900 million position but its still only 0. 4 of the economics you do have a chairman and ceo of Brian Roberts who has 33 of the vote theyre in a strong position comcast has had very go performer. I think he has the same. He has several businesses which are strong now, including the cable business, and comcast runs a good cable business. Good growth. Big tail wind because of covid then hes got other businesses which are in a headwind because of covid i think he is certainly concerned with current performance of those businesses. I suspect hes more concerned with the long term and his belief over the long term, nbc, the theme parks are going to be good businesses, theyre just hurt now by covid. Hes very much concerned with long term. Negotiating with an activist type shareholder probably less glamorous than brian was hoping. I think he has a track record from a position of strength from which hell negotiate and do okay. Agree not just as an employee but as a shareholder. Greg, thank you. Its great seeing you here we hope youll come back soon. Thank you for having me great. Thanks. Youre welcome. Coming up, another 850,000 americans are expected to have filed for unemployment with the latest jobless claims data at the bottom of the hour two more big interviews coming up were going to ask jetblue Ceo Robin Hayes whether they need billions more. Then sec chairman jay clayton going to share his thoughts. The 2020 spac fest a reminder, delivering alpha is back on september 30th with a huge lineup of special guests. Visit deliveringalpha. Com. Youre watching squawk box on cnbc because the things we make, help make the world go round. They make it cleaner, healthier, and more connected. Its what we build that keeps things moving forward. So with every turn, well keep building a world that works. If i could, baby id how can i, when you wont take it from me you can go your own way go your own way your wireless. Your rules. Only with Xfinity Mobile. Quick stock on the move to show you this morning. Shares of ew scripps are moving. Its going to buy tv operator ion media for 2. 6 million Berkshire Hathaway is involved making a 600 million preferred equity in scripps to help finance the deal andrew okay. Coming up, were going to speak with sec chairman jay clayton. A rule that could make it harder for small corporate shareholders to have their voices heard big debate were going to discuss it with him. Stay tuned, squawk box returns after this just like that. And the simple joy of washing your hands, without ever touching a faucet. We think its the Little Things that matter. And we know you do too. Thats why we create moments to feel kohler clean, every day. Coming up, the latest breaking jobless claims numbers. Always something to look at closely in this enroenvinmt. Well have them when we get back youre watching squawk box on cnbc welcome back to squawk box. Breaking news. Our current read on initial and continuing claims. On initial claims, 870,000 870,000. This is a bit more than expectations and its a bit higher, of course, than the Rearview Mirror last week stands at 8960,000 it may be revised in the next few seconds. Well keep an eye on it. On continuing claims, 12,580,000 a bit less than last weeks but it is still a bit higher than we were looking for were looking for number closer to 12. 2 million. With regard to how the markets reacting here, we see that Interest Rates continue to be on the soft side. Joe has been referencing 666 were not far away from that right now on 10s which means its down a basis point from settlement preopening equities have moved to more red ink there. They were minus 80 theyre now minus 111. Now that doesnt take into account fair value where that will open. Thats the raw numbers do keep in mind when we look at initial claims especially, we are getting some subtle revisions. I thought we would 866,000 so last week was revised up by 6,000 which means were 4,000 apart at the current 870 last weeks continuing claims, they moved a bit higher as well. From 12. 628 to 12. 747. Which means even though this weeks number is a bit lower, which is good, its still above 12 million i guess the real issue here is that we continue to see stubbornly high on both numbers even though we made very good progress, we can blame the economy. We can blame lack of reopenings, flareups from hurting investor psyche at the end of the day the only thing that really matters here is the fact that in order to truly address trying to put people back to work we need to put confidence back that people can go back to work. Joe, becky and the gang, back to you. Okay, rick. Good to keep in mind well try to get there one way other another. Lets move on. Were going to talk. Rick, you probably come down with andrew on this, i dont know for sure, about about bailouts of the airlines were going to touch on that high profile ceos on the topic of jobs. A week out from airlines facing the prospect of furloughing tens of thousands of workers. Calling on congress to provide billions of dollars in additional aid to the industry we spoke, in fact, with pennsylvania senator pat toomey earlier in the show bein, and hs some doubt whether Business Travel would ever return to prepandemic levels. Is the taxpayer supposed to maintain this excess capacity indefinitely or do we need to allow the economy to adjust to a new reality . Im in the latter category so i think if its a matter of extending credit, thats one thing. Weve got a big program to do that for businesses that qualify. But just outright still ever more grants, what do we do when this money runs out in a few months joining us right now, robin hayes, ceo, jetblue. Its easy to talk about rationalizing industries were talking about tens of thousands of workers that could be furloughed as early as the beginning of next month. How we try to preserve those jobs, whether those jobs are preservable if capacitys down, in your case 55 or to 55 and whether shareholders need to be protected and bailed out were seeing a lot of you know, a lot of varying opinions here we had someone yesterday, robin, say, look, airlines can declare bankruptcy they have lots of assets they can raise money shareholders are not a special class. Why should that happen now if what were really trying to do is keep jobs why do shareholders why are they special what do you say to critics like that, robin . Hi, joe great to be with you thanks for having me on this morning. You know, i mean, this what weve seen with this pandemic is nothing like the Airline Industry has ever seen before. Weve been through 9 11, weve been through the financial crisis back in 2008. When i think right here in new york, jetblue, how much our own crew members, our own people have done coming to work to this pandemic, theyve really been the heroes theres a whole support team cast, and that includes airline employees. When we look at how far weve come, i look back in april we were 3 to 4 of revenues i mean, as we sit here in september were tracking about 30 to 35 of what we would normally do. Weve made some slow progress. The question really is another extension of the Payroll Support Program, is it a bridge to nowhere or a bridge to somewhere. I passionately urge its a bridge to somewhere. As we get to 2021, the industry will significantly recover hopefully theres good news on vaccines well get into the early part of next year. We see improved therapeutics so many people, we all know them, have put off tricks that they know they need to take. We dont need a full recovery in 21 to stand on their own two feet we need to get back to something closer from normal and we can take it there. From all of the heroes and people that work not just in the Airline Industry, they need us to help them to the next six months thats what this is about. This isnt about shareholders, this is about our people and making sure that we do everything we can to keep them in their jobs, keep them in their health care, keep them in their pensions and, frankly, the governments going to pay for it one way or the other if our people are furloughed, theres a cost of unemployment and not paying taxes and all of those have to be factored into account. Robin, what about the point that in the past in capitalism, things like this happen. Thats why we have bankruptcy laws thats why when a shareholder invests in something, they know they can either profit and make money or theoretically lose all of their money why should shareholders in this case be a special class in terms of i mean, i think i would make the case if you ever want to fund airlines in the future, and we all i dont know if its a utility, certainly its for the common good, for business, for our economy, for people that want to not drive 24 hours, you want a vibrant Airline Industry you might never be able to raise capital again. A pure capitalist would say this is what shareholders should expect when things dont go right, youre not going to have any money left well go into bankruptcy we have planes you can borrow money and do it all on your own. You can emerge and save as many employees. Why do it the other way with a bailout . Weve done a lot of that, joe. We came into this in a Pretty Healthy as a Pretty Healthy industry, at least here in the u. S. When i think about jetblue, we came into this with a lot of unencumbered assets. Weve borrowed against them. Raised billions of dollars on our own. We are not here saying the government is the whole story. What the government part does is get us through this and keep people in their jobs when we did the original Payroll Support Program back in earlier in the year, we were sitting down with treasury and weve sort of understand the numbers of the Payroll Support Program we got about 70 of that, just under, it was about 30 , just under, we had to pay back when we looked at the portion and you look at the numbers, you look at if you furlough people, the cost of that unemployment, the lost income into the tax system, this actually this absolutely represents a really good deal. So this isnt about the shareholders the shareholders i care most about are our own crew members over half of them are shareholders for them its a life changing moment when our stock performs so thats what were focused on. Were focused on protecting jobs and making sure the industry is here to help the economy recover in 21 robin, if this isnt about shareholders and this is genuinely about employees and keeping these planes in the sky so that when the economy recovers, why not make a proposal that says, sure, taxpayers of america, we need your help. We recognize that we need that help and were prepared to dilute our own shareholders and effectively make the government to some degree a temporary shareholder similar to the way, frankly, the Bank Bailouts, which were criticized terribly in 2008, but the bailouts that have been on offer to you thus far and are being requested this time are on terms that are actually way worse than the Bank Bailouts ever were. Well, i think you know, andrew, the way i look at that is what is the right return on the investment for the government theres a number of ways of doing that i happen to think the way the c. A. R. E. S. Program has been thoughtfully structured, its already offering that return on investment first of all, as ive said, to spend that money in unemployment and lost tax income and, secondly, its to make sure that this industry is here ready to go next year what will happen in the event of significant furloughs, significant fleet retirements is it and weve seen this before, it falls disproportionately on smaller and medium sized communities. Robin, as a taxpayer, im prepared to give you the money, im just saying what are you forget about and i appreciate what its going to do for the economy broadly. That was by the way the argument that was made by the banks, which is you need to save the banks to save the economy. Well all agree on that. What im saying is why arent you saying, sure, come dilute the shareholder. The u. S. Government will end up owning a stake in this and if its successful the taxpayer will be a beneficiary of that. Are you prepared to go into bankruptcy and take money that would hurt your shareholder if you are here to care about employees . The whole thing doesnt make sense . Andrew, i understand the point youre making and i you know, i think this all comes back to making sure the taxpayer gets value for money what im saying is i believe this Program Offers great value for money. If these mass furloughs take place, theres a real cost to that its a significant cost. We cant forget that we cant ignore that we cant be surprised about that if that happens. So that is where the government is getting a return and of course the impact the Multiplier Effect airlines have, all of that goes back to the government all of that goes back in forms of revenues. Thats what were focused on right now. Thats what we believe the path forward should be. Robin, you signed a letter to mayor de blasio and i know you wanted to make some comments about how important it is, you know, that people can come into im here at times square im luckily surrounded by nypds finest i dont know about parts of the city right now if id want to be there after dark yeah. I mean, we signed a letter i mean, jetblue members have been coming to work throughout including in our support center in long island city. Thats where im sitting right now. We are in the process of bringing more of our people back to work. We want to make sure we can do that safely and we want to make sure that some of the quality of life issues, some of the issues our people are raising with us, that theyre addressed if you look at the u. S. Domestic aviation market, new york is recovering more slowly than any other part of the country and thats even though we really kind of saw the coronavirus peak earlier than anyone else so we need a strong economic plan to dig us out of this in a way that obviously keeps everyone safe. You know, the good news is, we have fabulous resources in new york we have so many amazing and talented people across the Public Private sector. Communities that need to come together and help us we all know people that dont want to come back into the city. We see pressure on Small Businesses and hotels closing. Some of these things are going to be very hard in reverse unless we start working on it. We have a quarantine that impacts air travel in new york we need to figure out a way to stimulate it and keep people safe were committed to do that speaking to you more about that. Well, january 1st is coming some day, robin, and we can just forget about a lot of stuff that happened in 2020 maybe theres some good things that happened as well. Anyway, robin, thank you we appreciate it appreciate your time. Thank you. Okay. Well see you. Still to come this morning, we are live and exclusive with the chairman of the sec. A lot to talk about this morning, everything from 2020 spac boom to a controversial new boon that could muffle the voices of smlealr corporate shareholders stay tuned, squawk box will be right back at morgan stanley, a global collective of thought leaders offers investors a broader view. We see companies protecting the bottom line by putting people first. We see a bright future, still hungry for the ingenuity of those ready for the next challenge. Today, we are translating decades of experience into strategies for the road ahead. We are morgan stanley. Into strategies for the road ahead. Tmobiles new offer on iphone 11 pro is even better on our most powerful signal. Switch and get two new lines of unlimited for only 90 and 2 iphone 11 pros on us. Only at tmobile. Welcome back to squawk box. Slew of spac deals flooding the markets. One of the most high profile spacs, nikola. Joining us to talk about this and so much more given whats happening in the markets is sec chairman jay clayton chairman, we appreciate you joining us i want to talk about spacs, this new rule that was put in place speak to the issue of spacs if you could right now because i think theres clearly a frenzy around them to some degree i think also a question about disclosure and transparency and whether investors are getting all the information they need and whether the process unto itself is as good, better or in some cases worse than the classic ipo process. Good morning to the extent a spac structure is an alternative, its traditional ipo. Competition to the ipo process is probably a good thing for good competition you need good decision making. One of the areas im focused on and my colleagues are typically focused on is the incentives and compensation to the spac sponsors how much of the equity do they have now how much of the equity do they have at the time of the transaction, the ipolike transaction. What are their incentives . We want to make sure that investors understand those things and then at the time of the transaction when they vote, that theyre getting the same rigorous disclosure that you get in connection with bringing an ipo to market. Those are the things were focused on at the sec. I appreciate you guys bringing to light that spacs are different from ipos. Distributed stocks but doing it in a different way. Chairman, we had a conversation with Chamath Palihapitiya whos been at the forefront of specific spacs. Very hard to understand how it works when you think about the disclosures that you may want to put in place, how would it look . Would you require all companies to spell out in full mathematical examples how much the sponsor, if you will, is getting paid andrew, there are two steps here one is at the initial and then one the initial distribution of the spac into the market and the second is when the transaction takes place with what well call the operating company. In both those situations we expect the disclosure to be such that an investor can understand all of those motivations and youre right, if it takes a hypothetical, use a hypothetical if it takes some other hypothetical, if it takes some other form use some other form we are not able to dictate and we shouldnt be able to dictate this is a market we shouldnt be able to dictate what the compensation structures are but we should be able to dictate that they should be disclosed fully and fairly. Separately are you concerned at all about the frenzy, the number of spacs that are coming to market . Anytime and, andrew, i think a few months ago we talked about the flood of retail money into the market when we see that anytime we see big shifts its our job to scratch our heads and say does this make sense and one of the things that has come out of this is what we just talked about, people should understand that the compensation structures and motivations may be different than they usually expect, but that said, look, if this is bringing competition to the distribution process, and i think, you know, your earlier guest said its bringing competition to the private equity market and providing access, those are things we want to promote, but, you know, we have to Pay Attention to whats happening in the market and we are paying attention to whether the disclosure here is as it should be. Separately i wanted to ask you about this new rule that was put in place, there was a 32 vote to pass what you now a final rule for shareholders, it requires shareholders to have a preliminary muscle of 25,000 investment in a particular stock for at least a year, thats up from 2,000, in order to submit proposals for a vote at annual meetings this has been considered somewhat controversial youve had Big Companies on one hand say that these proposals sometimes can be great distractions and that the investors dont necessarily arent necessarily aligned with the companies, but we also saw that there was a number of big groups, including big investment companies, that came out on the other side of this and said that this is undemocratic well, let me correct the record here. The 25,000 number is just one tier the current number is 2,000 and a year of holdings thats to get your proposal on the companys proxy statement. So all you have to do is hold 2,000 to get your proposal on the proxy statement and take the time and attention of all other shareholders we reviewed that and said that 2,000 holding doesnt really demonstrate a longterm alignment of interest so we moved that threshold to three years. But let me be clear, anybody who is currently eligible to submit a proposal, our transition rules provide that they will continue to be eligible if they hold that 2,000 and in the future you just have to hold 2,000 for three years with he added those additional tiers of 25,000 and 10,000 for one and two years if people want to demonstrate more commitment to the company to quickly put a proposal on, they can do so. But most importantly, andrew, i dont think this is going to reduce the number of additional proposals very much, people can adjust their behavior. Obviously institutional shareholders are not affected by those it is the resubmission thresholds here that needed attention, they hadnt been updated since the 1950s and now you have to get greater support for your proposal to be able to keep it on the ballot. Chairman, real quick, i do need to ask you about this wall street journal report about an investigation taking place with robin hood i imagine you wont want to speak directly to it, but clearly a number of Companies Like robin hood, trading companies, are selling their information, customer information, to High Frequency traders. Thats what this report discusses. How concerned are you about this practice and the disclosure of it andrew, again, im not going to comment i think what youre talking about is the topic of payment for order flow and how do brokers get compensated for routing their orders it is an important topic for us here at the sec. Under the director and our division of trading and markets we are looking at Market Structure holistically and if you look at our near term agenda you will see there are reforms coming that address a lot of these issues whether in fact one of them is whether, in fact, people are getting the deal they think theyre getting when they use a broker okay. Chairman, its always good to talk to you, we very much appreciate you calling in this morning and providing your perspectives and insights on all of it. Look forward to talking again very soon. Absolutely. Thank you, andrew. Thanks, jay. In the last hour bank of america ceo Brian Moynihan joined us for an exclusive interview. Here he is on what b of a is saying in terms of its customers. The spending by bank of america customers, both on debit and credit cards is up over last years september first 20 days the spending overall is up over last year which means as you look at the run rate of the economy now, the amount of Economic Activity going through our customer base, admittedly different than it was last year, not as much in restaurants, more in Grocery Stores, as an example, is back to the level it was. Lets get to cnbc headquarters, jim cramer is standing by. Jim, i know you were watching the interview, i saw your treat about how he gets it, i assume you mean in terms of the stimulus plan that hes asking for being more targeted and making sure we do get that money out of the people who need it most. Theres so many things he gets he understands the notion of the interplay between business and what they can do to help the greatest platform of social change, but i thought it was great, he said he came from brian park, realizes that the Restaurant Business has basically been shut down lets target the businesses that have been shut down instead of giving money to everybody and i think we get a deal done i think he is a compassionate, smart man, who when he is on tv now youve got to listen because his thinking is the thinking that we never used to see from bankers. Im always impressed when i speak to him we always talk about how great jamie dimon s how about thinking about how this man has transcended the thinking about just his bank and is really a leader in the country of businesspeople. Yeah, he was talking about esg and the initiatives for making sure that businesses are really involved on this societal changes, but do it in a way thats friendly to shareholders and even beneficial to shareholders with some of these things, too. I thought his point in terms of what we really need to see from for states being supported, too, was important just to make sure we dont see a continued downturn with unemployment, that we dont see longterm structural unemployment instead of this quick down draft and hopefully quick reversal of things if you start to see layoffs at the state and local level thats going to be a big impediment to prolong the time before getting back to gdp growth. We have three, four months we are going to be therapeutic, we will have the best testing from abbott labs, i believe that the lily therapeutic, i believe regeneron therapeutic are going to bridge us lets just be sure that the states dont go, you know, four months of bad state, four months of bad restaurant and we end up really having to restart the whole economy. Just bridge it and i think that thats something that both the republicans and democrats would agree on if it werent for an election year. Right agreed jim, anyothk u. Great interview. Thanks, jim we will see you. Thank you. We will see you in just a few minutes. I felt like. I was just fighting an uphill battle in my career. So when i heard about the applied Digital Skills courses, im thinking i can become more marketable. You dont need to be a computer expert to be great at this. These are skills lots of people can learn. I feel hopeful about the future now. Chamath palihapitiya good morning, and welcome to squawk on the street, im david faber along with jim cramer, carl has the morning off this morning lets give you a look at futures as we get ready to trade 30 minutes from now of course, you can see we are looking for a stun open. Lets get to our roadmap, it does start with the september slump for stocks, at least so far. Technology stocks heading lower once again, at least many of them, and as you saw features are extending losses this after worse than expected jobless claims plus, there are concerns about overall Economic Growth. Goldman sachs cutting in half its Fourth Quarter growth forecast given i