Transcripts For CNBC Squawk Box 20240711

The strongest week since back to april. However, you have to put that in context. Two weeks ago was a lousy week in fact, two weeks ago the dow lost just over 1800 points, down by 1833 points last week the dow was up by 1821 points so that was a giveback for the dow kind of starting things over if you look at the other major averages, they got back much more ground than they had lost the previous week. Last week the s p was up 329 points after being down 195 the week before and the nasdaq was up by 983 points last week after losing 636 points the week before but again these gains this morning are significant ones they are adding to what we saw last week. Also, take a look at whats happening in the treasury market youll see that right now the treasury, the tenyear, is yielding 0. 812 so its stabilized after bouncing around quite a bit during the election and the election counting last week stabilized at 0. 812 andrew thanks, becky our top story this morning, president elect biden wasting no time getting to work, charting his transition after delivering a message of unity in his victory speech on saturday night. Meantime, President Trump continuing to vow a legal fight over the election results. And we get over to kayla tau shi with more on all of it kayla . Reporter well, andrew, in that unifying address on saturday evening, his first as president elect, joe biden thanked the black voters who saved his candidacy. He pledged to work for those who didnt vote for him. And he said that he would set to work immediately to address the coronavirus pandemic well, just this morning, the biden harris transition officially announced the members of that Coronavirus Task force it will be chaired by two professors as well as dr. Vivek murthy the Surgeon General of the Obama Presidency who was ousted 90 days in President Trumps term Agency Review teams will begin assessing their work as soon as possible and aides say rebuilding agencies like jus it is state and epa will be high on the list and implored the General Services administration to declare a clear winner in the administration so the transition can access millions of dollars in federal funding to aid in that effort. On the subject of orders reversing trumps executive actions, the statement says, while no decisions have been made about executive actions and no memo about the topic sent to the president elect, he has the same levers as all of his predecessors to address the crises facing the American People meanwhile, President Trump is set to go on pardoning and firing spree in his final weeks in office. Already we have seen several agency heads or deputy heads fired as a result of this. Those include Nuclear Scientist lisa gordon haggerty, Neil Chatterjee and bonnie glik was set to take over the usaid when her the head of that agency his term expired on election night. Theres a wave of firings. We expect also a potential firings for the directors of the fbi, the cia and secretary of defense and nbc news says that defense secretary mark esper already prepared his own Resignation Letter andrew kayla, in terms of executive orders that youve been reporting on and expecting, i think theres an expectation about reentering the World Health Organization, the paris climate accord, things like that but what are you imagining could be within the first couple of weeks on the executive order front . Well, you mentioned the top two, andrew. Those are sort of the low hanging fruit, reentering the paris climate accords, reentering the World Health Organization and restoring some of the funding there and also there is some discussion about potentially reinstating the daca program in a protracted legal battle with the administration and ending any restrictions on incoming travel from those muslim majority countries of course the covid pandemic complicates the travel picture with so many lockdowns happening in so many countries and restrictions from that are unrelated to those orders still in place from earlier this year. Andrew and then kayla, the other question i was going to ask about cabinet members and others you may be hearing as potentials how you think the president elect is thinking about that, especially given what may be a what likely will be a split senate but maybe not and how that might change the calculus about some of these people well, the calculus does change because the makeup of the senate is not entirely clear at this day because on january 5th youre going to have a runoff for the two senate seats in georgia. And so there could be a very razorthin margin for the Republican Party based on how that runoff goes. You know, there is an expectation that Mitch Mcconnell and joe biden based on their decades working together in the senate that they do have this sort of longtime collegial relationship from their time working as colleagues. And that there could be a potential horse trading relationship that goes on whereby perhaps biden would give mcconnell in one hypothetical example that was provided to me by an official that i spoke to, perhaps biden could offer Something Like a majority republican seats on the securities and Exchange Commission in exchange for the approval of the treasury secretary. So thats an example that was provided of a type of barter that could be struck in order to get some of these really important individuals approved as early as possible even before perhaps we know the full makeup of the senate. Kayla, read these tea leaves for me, over the weekend there was a report that gary ginsler a former member of the obama administration, ran the commodities Trading Commission was going to be on that Transition Team advising president elect biden about some of these positions going forward. He was also a former banker at goldman sachs. What does that say well, i remember covering ginsler during the obama years during particularly the collapse of mf global he was extremely the critical of actions taken on wall street that sacrificed the money and deposits and accounts of people who were clients of these firms. That being said, theres been a lot of time thats passed in the last decade, and we havent seen much of him in the public eye and havent seen many Public Comments from him, so how his views may have changed in the last decade are not entirely clear. I actually reached out to him over the weekend and he did not respond about exactly how this transition is going to come together but the fact that you do have someone who is on one hand sympathetic but on the other hand extremely critical of wall street, it could go either way, andrew but i think people are taking note of even just the personnel appointment there that it will be something thats closely looked at. Kayla, President Trump hasnt conceded how do you think this transition will take place comparatively speaking to what we have seen in the past well, i think, becky, at some point it becomes inevitable that the transition officially would happen now, the General Services administration would be required to be the agency to declare the clear winner, and that would usher in essentially access for the Transition Team to meet with their outgoing counterparts to try to hatch a more fullyformed transition plan into access that federal funding i mentioned earlier. Now, without a formal concession, that the formal concession is what essentially would unlock that earlier on but at some point once these state calls become official, i believe it would become inevitable that gsa would have to make that call, although despite all the hand wringing among trump advisers over the weekend im still told as of last night there was no official plan for President Trump to make a concession right and some of these states dont actually confirm their results until december, right . Thats right. Specially in some of these states where we could have recounts you have North Carolina, which has a deadline to count votes until november 13th. And based on how slim the margin there is, unclear what could happen in North Carolina then you have several weeks for a recount in georgia so, and wisconsin. Even though as of last week, the Trump Campaign had not officially requested a recount in wisconsin so, yeah, it could be weeks before we get some of those official results but well keep doing the math and seeing where the math leads us and then finally, cay larks before we let you go, when you go back to 2000, and think about that transition period, how short was it in terms of when bush was able to begin my understanding was they all began their transitions actually pretty quickly and there was a lot of back and forth. Yeah. At that point, andrew, there was a lot of back and forth. But it was a very different political environment at that time i mean, i think that the margin in florida was so thin and there was an agreement on both sides that they wanted that Legal Process in place and that that was the right thing to do. And so there was sort of an agreement between both campaigns that that was the direction that would provide the clearest result there is clearly not that this time around with the two campaigns obviously having very different views about what happened, what transpired during the election and how many votes do truly separate these candidates in some of these critical states. Kayla, thank you for helping us through this this this morning. Appreciate it. Talk to you very soon. Becky . When we come back, more than 700,000 new covid cases were reported in the United States over the last week dr. Scott gottlieb joins us next on the surge and how the Biden Administration could approach the pandemic. And later, new Jersey Governor Phil Murphy will join us on the rapid spread of coronavirus in his state talk about measures he might reenstate. Squawk box will be right back. You can go your own way its time you make the rules. So join the 2 Million People who have switched to xfinity mobile. 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Lets start just talking about how many cases we have right now, how this is spreading and where. Well, look, its really spreading everywhere were seeing acceleration in the number of cases across the United States. Werelikely going to be over 100,000 cases in perpetuity right now and deaths start to rise were seeing that already. And hospitalizations go up i think this week well hit a Record Number of hospitalizations in the country 55, 56,000 right now will probably eclipse the totals of 60,000 hospitalizations and 11,000 people in the icus. Those are big numbers. The challenge is that its spreading really across the entire country its concentrated in the midwest and up midwest, the great leaee region what youre liking seeing epidemic across the entire country and starting to see the states take more aggressive steps. Utah announced a statewide mask man dit and suspending certain High School Sports my home state of connecticut announced limited mitigation steps closing restaurants at 9 30 and going suspend certain High School Sports youll see more states step forward with targeted mitigation to slow the rate of spread. In fact, you have an op ed in the wall street journal today that says the Biden Administration should look to the states to find ways to fight this is that a suggestion that some of these measures being taken should be enforced across the country or do you think this is best practices well, i think theyre best practices and can sort of guide a National Plan. If you want to implement more federal action, look to the states that had success. So weve had stateled efforts and we have seen states do very effective things connecticut and massachusetts, two states i helped advise rolled out enormous amount of testing on most days massachusetts one or two in testing in the nation. P maryland put in strike teams in Nursing Homes that worked closely with lower income neighborhoods where people didnt have access to all the opportunities of testing and getting good care. So they focussed on those neighborhoods and got resources into them and testing into those neighborhoods. So, if you look at what the states have done, theres been some successful models for how to slow the spread, how to address some of the hardship imposed by covid i think if you were looking to formulate a National Plan you should look to what states have done successfully. Scott, i will tell you, its a little surprising this far into the pandemic that even some states that have taken aggressive actions still dont have great testing plans on friday, i was trying to get a test for my son because of an exposure at his school the pediatrician wouldnt test him because hes asymptomatic. Youre in a position where you have to go to an urgent care and stand in line with a lot of people who are symptomatic if you want to get a test like this which seems more dangerous to begin with shocking to me that its that complicated this far on. Well, this is the challenge theres a lot of tests available but theyre not well coordinated. Some states have good testing plans in place where they allocate the tests to different needs and different locations out of different locations other states arent so well coordinated. And theres really no National Plan with respect to how tests get allocated to states and get used within the states so there is het gentlemen nayty as you go from state to state the kinds of tests available in the states so it sort of youre short on tests but theres really a lot in the marketplace thats the unfortunate thing in certain respects a lot of antigen tests its hard to access in a lot of states because its hard to find the places that will take the sample were going to be speaking to the governor of new jersey a little later this morning and he made noise that later today is expected to announce potentially some rollbacks of some of the things hes opened up to this point, not entirely sure what that is. You dontthink that lockdowns are necessary or are the things that well be relying on from here what should we be relying on more heavily well, its not that lockdowns, stayathome orders wouldnt help reduce the spread more quickly and we see europe now reaching for those i dont think the support is here to do that among the people so i dont think youre going to see the Political Class implement them but you can avoid a broad stayathome orders, broad business closures if you take targeted steps so i think we should have mask mandates at a state level and should be enforced in places where you have rampant spread and take targeted steps to close certain activities and close certain settings where we know spread is occurring. Congregate settings indoors, restaurants and bars and large gatherings, celebrations should be put on hold while we get through this this will be the most difficult period of the pandemic we will get through it there will be more opportunity on the other side of this as we get into 2021 to have therapeutics and potentially vaccine more widely available to mitigate this in 2021. The hardest months are really the next two or three and we need to take targeted steps to slow the spread. You see Health Care Systems starting to get press right now. The reason to do the mitigation is slow the spread enough so the Healthcare System can keep up with the infection rising burden on the Healthcare System that should be worrisome across the country right now. Dr. Gotlieb, how critical is it for the Trump Administration to work with the president elect during this transition period and could you see you talked last week, for example, Vice President pence reinstating the Covid Task Force or being more active could you see him break with the president in terms of trying to work with the next Administration Early given the crisis that were in yeah. I dont think it would be a break with the president i would think that the president would support the Vice President getting more active through the Coronavirus Task force and the president himself perhaps as the infection starts to increase around the country the administration has been working with the transition process. Chris ladell deputy chief of staff, very senior person in the white house, i worked with him when i was there and accomplished individual, former cfo of a number of large companies, hes been leading an effort to try to put in place a transition process thats not happening in secret people in the white house know chris has been working on this and so this has been a white houseled effort to try to create the infrastructure for a smooth transition. So i would expect that to continue hey, dr. Got loeb can you hear me, scott i can, yes. You can all right. Okay maybe its back here are we expecting anything nearterm with some of the therapeutics, some of the vaccines it seems like were in a period where some of those tests were some of the i got to take this out. Some of the trials should be getting close to being able to demonstrate efficacy for the vaccine. How many weeks are we talking about at this point . Yeah. Well, ill let pfizer im on the board of pfizer one of the companies that has a vaccine im not prooif ivy from any ress from moderna i would expect to see continued data with the trials with the therapeutic antibodies the fda has been reviewing the data for a while now so i want kppd a regulatory decision probably emergency use authorization imminently on those. A lot of us expected that to happen based on the data thats available. Those could be available in the nearterm. Enough supply to have some impact on the spread thats underway to target those drugs to high risk individuals dr. Gottlieb, i want to clarify something you said earlier about this transition, you believe that the administration is going to be working with the Biden Administration or the president elect bidens Transition Team irrespective of whether the president concedes well, the bottom line is that theres interactions going on. Theres very formal process in place for transitions between administrations. Some of this was put in place after 9 11, a recognition you needed a smooth handoff between administrations because of how uncertain and dangerous the world had become so theres transition offices set up and theres formal interactions my understanding is that work has been proceeding and its been headed up by chris ladell and people in the white house are aware of that work i mean, hes a very senior individual, very accomplished individual, well regarded in the white house. So that wouldnt be going on in secret that would be going on with full white house support. My understanding is thats continuing to proceed. Im not close to it now. So i dont know exactly what the mechanics are day in and day out. But theres a very formal transition process between president ial administrations thats customary and thats enshrined in law scott, do we have a good understanding of whats going on with influenza, with the flu season do you think social distancing, hand washing and all this hygiene explains that were not seeing very many cases at all . Or is it early right now for the flu . When would we expect to know and is there a scientific explanation if its not just behavioral well, it is early for the flu season but were not seeing a lot of cases. It is still early. When you look what happened around the world, australia, new zealand, south america their flu season was virtually nonexistent. What does appear to be the case is the mitigation steps were taking to try to reduce the spread of coronavirus is very effective against flu. Flu seems to be far more sensitive to these kinds of measure than coronavirus coronavirus on many levels may be more contagious than flu. I expect a mild flu season people should still get the flu shot there is evidence you get the flu and coronavirus at the same time twice as likely to suffer death, to die from coronavirus or flu and so you do want to reduce your chances of getting the flu because its going to help reduce your chances of a bad outcome from coronavirus and the other thing to remember is the more that we can keep flu patients out of the hospital, so reduce the burden from flu, the more that were going to have capacity in the Healthcare System the other thing concerns about the fall and winter isnt just were seeing the rising infections from covid, but this is typically the season when hospitals become pressed naturally, when hospital volumes go up and icu admissions go up superimpose covid on that, that becomes very challenging dr. Gottlieb. Thank you. Great talking to you thanks a lot. Berkshire hathaway spending 9 billion to buy Berkshire Hathaway details after the break. 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Berkshire hathaway ramped up its stock repurchasing company in the Third Quarter Warren Buffett bought back 9 billion of its own stock of that total, 6. 7 billion was in class b stock and 2. 5 billion was in class a buffett said he would buy back berkshire stock only if he and Charlie Munger believe its selling for less than its worth and if after the purchase the company would still be left with ample cash the stock underperformed the s p 500 this year. You can see its been down by 5. 7 s p up by about 8. 6 andrew a lot more on squawk. The post election rally does roll on this morning the futures look up. And to the right, as they say. Dow implied open 388 points higher nasdaq looking to open about 205 points higher. S p 500 looking to open 48 points higher. Well talk about what the biden presidency could mean for your money when we return investor mark will join us after the break. Squawk returnens aft ts. Erhi 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. Good morning, everybody. Welcome back to squawk box. If you see the u. S. Equity futures this morning theyre up sharply, continuing those gains we saw through most of last week right now the s p 500 is indicated up by 50 points. Dow futures up by 380. That adds to the big gains we had seen last week reversing the losses from the week before. Joe . Thank you joining us to talk about what we can expect 2349 markets during the biden presidency is mark, Founding Partner of mobius partners normally youre very global. You dont believe that there was in the last four years a period of deglobalization you think its moved on a pace maybe theres been some lessening of those forces. But its obviously we trade around the globe and thats not going anywhere, but at this point, you are worried about equities in the u. S. And think there should be some shift to emerging markets simply because of the possibility of higher taxes on wealth, on wealthy americans, on corporations and you say the socalled wealth effect will be at play because of biden tax increases and that people that invest in the market should expect their wealth will be hit by higher taxes and theyll restrain from investing. Do you still think thats on the table . We dont know whats going to happen with the senate but do you still think this is a risk for investors that theyre going to realize and act on . Yes, i think it is still a risk, but theres no question that will be more difficult given now the gains that the republicans have made in the house. And the fact that they still control the senate probably will be difficult for biden to get through the tax the rich program that he originally talked about. But you must remember, hes got a far left wing in the Democratic Party that will insist on something being done so there may be other ways of doing it, but nevertheless, given the current scenario of my earlier thinking is now watered down quite a lot i think youre not going to see this kind of increase any time soon and therefore, the u. S. Market will probably do okay. But the uncertainty will soon be there. And i believe the emerging markets will do better than the u. S. Market. Particularly now with china sort of winning in this current phase of politics, the china market will do very well and of course india is powering ahead. So emerging markets will do much better, i believe, than the u. S. Market did we see any benefits in the United States to the stance we had against china and the past four years and what im getting to is if that is lifted, could you see that as a positive factor for u. S. Stocks or for the economy . Yes i think it would be positive in the sense that trade with china will be accelerated and there will be more business being done by u. S. Companies. So, the Tech Companies will probably benefit to some degree, although i think the concern about Technology Sort of imposing its hand on privacy and other measures is going to be sort of weight over the sector but nevertheless, i believe the u. S. Market will do better because of the china in fact, better trade with china. Do you think the net net, the outlook for overregulation for technology has increased or decreased given the makeup of congress and the presidency . I think the pressure for regulation of the tech sector is still there and will probably increase, but that will not put a damper frankly on the growth of the sector. Youre going to soon see incredible growth in the sector. More regulation but generally speaking the sector will grow by leaps and bounds, not only in the u. S. But also in china and other parts of the world its interesting the situation in china how the Chinese Government is now beginning to say with ant, this has gotten too strong, wait a minute. One company has gotten too big and were concerned about how they will impinge upon the economy generally. I think youll see more regulation, but that will not slow down the tech sector at all. So you would still allocate more away from u. S. Even though you dont sound as negative, you would allocate more into emerging markets specifically where, mark . Well, seskically china and india. Those are the two areas. Then also pref rale to that would be corkorea, taiwan, areas benefitting from the Tech Revolution so these are the countries i would emphasize. But dont forget this Tech Revolution is hitting countries all over the world were finding companies in brazil, companies in south africa and other companies around the world that are going to do well because of the tech so you have the a situation where by fur indicated market where the market overall may not be doing very well but then you have these Tech Companies doing very well. So, with the you say that president elect biden is going to have some pressure still from the left, even if the senate is not something that he can count on so, i guess theres ways he can do that that dont involve legislation. What im getting at is do you think there will be pressure on Profit Margins do you think multiples will not stay as expansive as they are right now, based on the overhang from that . I mean, are you pulling in your horns on your bullishness towards u. S. Stocks . At what percentage would you say . You must remember that in a regular portfolio the u. S. , of course, will be dominant not because the u. S. Economy is going to do very well, but because you have so many multinationals listed in the u. S. Who have exposure to china, to other parts of the world where theyre growing very fast. So you have to be, of course, in the u. S. Markets and most liquid market in the world, its exposed to the Global Scenario and to emerging markets, but what im saying its better to put more in emerging markets now particularly in china, india and some of the countries i mentioned because theyll probably be growing fathser. Okay. You dont sound like a stimulus guy. You get a little more stimulus so you buy the market just across the board doesnt sound like something you think will help that much. No, not at all. Okay. All right. Thats one of the legs of the bullish case. Thank you thank you, mark mobius. Appreciate it. Becky . Thanks, joe when we come back what the biden presidency could mean for ad dollars and media stocks. New york times media columnist ben smith will join us straight ahead. Later, new Jersey Governor Phil Murphy will talk about the surge in covid cases and how he plans to try to handle it ahead of the holiday season. Remind e watch or listen to us live any time on the cnbc app. Hey, dad hey, son no dad, its a video call. You got to move the phone in front of you like. Like its a mirror, dad. You know . Alright, okay. Hows that . Is that how you hold a mirror . [ding] power e trade gives you an awardwinning mobile app with powerful, easytouse tools and interactive charts to give you an edge, 24 7 support when you need it the most plus 0 commissions for online u. S. Listed stocks. Dont get mad. Get e trade and start trading today. Welcome back to squawk box everything meg terrel joins us right now with breaking news from pfizer. Good morning, becky this is the news we have been waiting to hear. Reports the first results from the phase 3 vaccine trial saying in this interim look the vaccine showed to be more than 90 effective in preventing covid19 cases. Now, this is the first look were getting at any of these efficacy studies of covid19 vaccines and it is much higher than analysts had been expecting or modelling now, this is based on seeing 94 infections of covid19 in the trial. We dont have a formal breakdown of all the data, but pfizer saying based on the breakdown of cases of the 94 there were so more on placebo than on vaccine. Now they also say no serious safety concerns were observed in the trial so far they plan to file with the fda for emergency use authorization after they reach a safety milestone of two months followup on half their participant which is they expect to reach in the third week of november which essentially is next week now, pfizer ceo saying in their release this morning, quote, today is a great day for science and humanity and he joins us at 7 15 this morning to answer more questions for us, guys but 90 efficacy is much higher than everybody was expecting for this vaccine back over to you. Great day for humanity, great day for science, great day for the markets. Check this out because if you were watching the futures we added about 300 points on the dow futures as you were reporting this news, meg we had been up 380 points. You can see the dow futures are now up by about 725 points you cant keep up with this because its moving so quickly 90 effective is kind of amazing. We were thinking, okay, if we can get something thats 50 to 60 effective, okay. The flu vaccine is nowhere near this effective yeah, becky i was looking this up last night. The flu vaccine is 40 to 60 effective. Talking more than 90 efficacy, you get into the range of the things like the measles vaccine, 97 effective after two shots. Chickenpox vaccine, 92 effective after two shots. Smallpox 95 effective this is really a high bar of efficacy and the fdas bar for considering approval was 50 effective. And so they are going to continue with this study until they accrue more cases so the percent efficacy might change so well have to watch that as it goes. But, this is much higher than people expected. Again the safety profile, they saw no safety concerns with anything they have seen to this point. How much more testing needs to be done before you can say, okay, this is something that would absolutely be approved by the fda . Well, vaccine experts say that most side effects you would typically see within six weeks of administration of the shots so thats why theyre looking for that twomonth safety followup on half the participants in the trial. They enrolled almost 44,000 people in this study, more than 35,000 received their second shot so at that point they would file for emergency use authorization. They are going to follow everybody in this trial for two years to observe further longterm data but, given that were in a pandemic and this is an emergency, theyre going to be filing obviously much earlier than that. Of course then the next question is supply. Pfizer says 50 million doses globally by the end of this year so this will be constrained at the beginning as we have been reporting, but we are expecting data from moderna at some point this month as well and also from Johnson Johnson and ast ra zen ka well wait to hear how the others do. Just so many questions still remaining, meg, about i mean, and we wont know if its permanent immunity, right . Is it mediated through just the bcells, how long would the t. Cell immunity last there are some other questions does it sit the antibody levels that are so positive or actually preventing the symptoms of covid for weeks and weeks in patients youre asking all the questions that science needs to know about this virus, about how vaccines work against the virus in order to better understand how they work. So we dont know yet what the protection are and the phase 3 results, the full phase 3 results will start to give scientists a picture of what do you need to see in terms of antibody response the response, cell response that will refer to real protection from the disease. Thats what these results are showing, real protection from covid19 we dont know how many severe cases of covid19 were in this trial. Thats a secondary end point theyre going to continue to monitor. That is something critics have said of all of these trials, you want to make sure youre preventing people from being in the hospital, preventing the critical cases of the disease, they are counting any cases of covid19 in terms of deciding efficacy the other question about how long this lasts, thats another key question and of course they only started this phase 3 trial at the end of july they started their phase 1 trial back in the spring they have some data on that, but, you know, its just not long enough to know necessarily how long that protection lasts hey, meg, i forget which ones of these trials are looking at different age groups its Johnson Johnson looking at older individuals, but i think thats a key question because this impacts particularly older people. Not all vaccines have been tested on older cohorts. That may need to be tested and find a different sort of level of the vaccine that you put in same thing with children if you have kids that are high risk, that will also require more testing what is the age group that the 44,000 people signed up for this trial . So they began with over 18 and i cant remember the upper limit of the cutoff, but they did have a focus on older age groups because of that point you just made. Often vaccines dont work as well in older people as younger people i think they saw in terms of anti body responses, a similar response, which is encouraging for a lot of vaccines. Pfizer is the only company to have started extending the age younger in its trials. Now it says down to age 12 thats very recently, and so in this release this morning, we dont have any break down of the ages of folks or their immune response based on age or anything like that this is the top line this looks like it works 90 effective and everybody is going to be clamoring to get more data. We should remind folks, this is a two dose vaccine you take this 21 days apart. And then they started measuring effectiveness seven days after the second shot. Theyre basically saying 28 days after you get your first shot if you do it all on schedule, thats when the protection should kick in here. Wow again, just to look at the futures, we were looking at the futures up by 350 to 400 points before this news you now see the dow futures are up by 970 points, almost up to a thousand in points if youre looking at the s p 500, the s p was up by 49 points, the futures beforehand, now looking indicated up 110 points and up a thousand points for the dow. We talk about all of the things that are really impacting this, the market, but the idea of having a vaccine that is high apply effective is incredibly hopefully and you can see that playing out in the markets joe . Meg, just in looking back at all the conjecture and maybe a lot of the sort of the negative thinking that we had, just for the last eight, ten months or whatever, this, i mean, i would imagine that the Airline Stocks, even, i dont know, any of the open up stocks should probably do well today because weve almost, the narrative got so heavy, meg, that we got to the point we thought we would never stop Wearing Masks again, never be back to normal, never have sporting events. I know weve got to get we have to have a lot of doses made, but just as far as light at the end of the tunnel, theres going to be a long way to go, obviously, still, but proving efficacy of this vaccine and its science, which is a lot different than it was, as you know, meg, 50 years ago, even, trying to get a vaccine using some of these new techniques i mean, this is a big day. This is big news for all of us who someday, and when i say all of us, i mean all of us, who some day want to get back to life thats more normal. Hugs and school, and sporting events, and just everything that you can imagine. So i really think, you know, i dont think we can really overstate the possibilities here we dont want to get ahead of ourselves obviously, but, you know, for those people that said, oh, well never get a vaccine. You know, its never going to be the same, and really, you know, who were wondering about the Financial Markets and the response, this could be good, right . Well, joe, i mean, the light is there at the end of the tunnel the big question up until this morning was everything looks great so far will we actually have a vaccine . Will they work in the phase 3 trials this look shows us that this vaccine was more than 90 effective th effective in this trial. There is light at the end of the tunnel Public Health experts will be jumping to remind folks, that tunnel is long we wont have enough supply of the vaccines most of us wont be able to get access until into next year, and we will have to continue to wear masks and social distancing and do all of the things to protect ourselves in the meantime, and you mentioned the supply is an issue. Another huge issue is that a lot of americans are skeptical of this vaccine because of the pace of the development, and there will be a huge hurdle for the, you know, folkis working on thi vaccine to get comfortable with taking it. There was a 60 minutes piece, his biggest nightmare is they have a vaccine that works and people dont want to take it thats a huge challenge coming up. Meg, can you just speak on the scale issue, given how much pfizer has potentially production, and then more importantly, because i imagine that unto themselves, this vaccine wont have enough scale on its own to cover the United States, let alone the globe, you know, whether the other vaccines that are coming online hopefully behind pfizer, how similar or not, we know moderna is very different, but the j and j, astrazeneca, whether those profiles look at all or could potentially look like this, or a bifurcation on how they work so, moderna is also a messenger r and a vaccine. One might expect it would show similar results. We dont know. Were going to have to wait to see how it looks in its phase 3 trial which we expect. In terms of supply, pfizer is saying 50 million doses globally by the end of the year this is a twoshot vaccine that will cover 25 Million People thats for the entire globe, youre hearing some numbers from other companies as well. It depends on their timing youre really only talking about 20 Million People by the end of the year, potentially in the United States. Next year, pfizer expects it can get up to 1. 3 billion doses globally, and you have all of these other companies as well. The moderna is the same its hard to keep track. The j and j, what is that, the adno whats the astrazeneca j and j pfizer and moderna are the messenger rna. Thats right. So moderna is not different and it could follow up and have good results as well coming up, much more on the vaccine news sparking gains in the market which have now, i mean, were up 1,300 points now. 1,300 points now on the dow, plus we have the first interview with the ceo of pfizer believe it or not, thats coming up, squawk box coming right back r, how do you find companies that are driving the right outcomes . If you care about economic equality and social justice, which firms are addressing it in their workplaces and their communities . 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Claim your seventyfivedollar credit when you post your first job at indeed. Com promo good morning, and welcome back to squawk box here on cnbc im Andrew Ross Sorkin along with becky quick and joe kernen. U. S. Equity futures are moving a lot higher, we should say, this morning. Dow up about 1,300 points, the kna nasdaq up 182, the s p 500 up 120 points all of this on the back of breaking news from pfizer this morning about its vaccine, and a 90 efficacy. We want to get straight to meg tirrell who joins us with the latest well 90 efficacy in this trial, this was a trial that enrolled almost 44,000 participants, and they saw 94 infections as of this first interim look the way they get to 90 effectiveness is basically breaking down how many infections were on people on the vaccine, and how many were in people on placebo, and they saw a dramatic imbalance thats how you see that this protects with 90 efficacy against covid19 now, the company is saying pfizer and biotech, no safety concerns observed in the trial they need to get to two months safety follow up after half of the participants have had the shot before they can file for emergency use authorization. They expect to hit that point in the third week of november, which is next week we could be seeing a filing with the fda based on the extremely strong data and safety follow up they will get soon, guys, so this is a twoshot vaccine you get it three weeks apart, 21 days, and then they started counting the cases in the trial, seven days after that. Theyre looking at protection against covid, 28 days after the first shot a few things to remind people of, there will not be enough of the vaccine immediately for everyone who wants it. Globally, 50 million doses available within 2020. Thats for everybody and its a twoshot vaccine. Thats worth 25 Million People that they can serve with 50 million doses, guys. 1. 3 billion doses they expect to get up to in 2021. They are not the only company developing a vaccine we are expecting results from moderna in weeks, and later in the year with j and j and astrazeneca, this is the first real glimmer of hope that these vaccines work in protecting people against covid19. Meg, quick on the supply scale issue, we showed the table on the screen. You talked about 1. 2 billion doses in 2021, just speak to how that would roll out. Im assuming thats 1. 2 by the end of 2021, but as youre into january, february, march, april, i assume once they get through the first 50 million in this year, theres still theyre going to be manufacturing them constant, correct . Yeah, youd imagine theyre running at full capacity now, and its going to be a metered release of the vaccine as theyre able to produce it getting out the shipments of the doses. We dont know what that pace is going to look like through 2021. We havent heard about that yet. They are one of multiple companies around the globe working on these vaccines. We have to hope that the other ones work as well. The fda bar for efficacy is 50 . Flu shots, 40 to 50 effective 90 effective at preventing confid covid19 thats why so Many Companies were brought in to develop the vaccines hopefully they work. If they do, supply is a team effort from the entire industry as well. The real thing here is proof of concept were on the right track, and i think that thats why this isnt just a quantitative thing. This is a qualitative finding today, that messenger rna, when you look at the way this works, youre not introducing a tenuated virus, doing in the things in the past, first hippocratic oath is do no harm the idea that you can take just the genetic code for the spike protein, thats all youre introducing is the spike protein, and you know, a lot of criticism of moderna was they had never commercialized any vaccine. This is pfizer in this case, but talking about the concept using messenger rna, its never been proven that its going to work, has it this is so exciting. You make a good point this is a brand new Vaccine Technology it has never been used before, and one of the reasons there was so much stock and might, the nih paired up with moderna to create this construct separate from the results were seeing today, but the same technology, way back at beginning of this pandemic, because it is so fast. We didnt know if it was going to work. This is the first evidence in the real world, and messenger rna vaccine provides protection against covid19 there are a lot more caveats, did does it protect against severe disease. In the trial they look at people who didnt have evidence of prior infection with sarscov2, and does it also protection against infection, if they didnt have their own protection a lot of questions to be answered in this data. We only saw the top line, 90 effective. No serious safety issues, but people would be very curious to see the entire dataset to learn as much as we can with the new technology in this particular vaccine. Hey, meg, you have mentioned a couple of times, there were 94 confirmed cases of covid i know we dont know how bad those cases were couldnt we assume they picked up covid somewhere else, it wasnt a reaction to the vaccine when you have 44,000 people in a trial when the covid cases have risen as much as they have any reason to think the vaccine caused that or because they didnt have protection yet, they could have picked it up elsewhere. Right so the expectation is of course that all of these folks were infected going about the course of their daily lives with covid. Thats how you test how well a vaccine works. You give half the people a vaccine. Half the people a placebo, say go about your every day lives, and then you see who gets infectioned ai infected the way you judge efficacy, fewer people in the Vaccine Group get covid than the Placebo Group, and they saw such an imbalance of the 94 people infected, so many more were in the Placebo Group than the Vaccine Group. Thats how you get the number. People worry with convenienvacc could they cause the disease itself in this situation as joe was describing, the vaccine is actually just genetic instructions being delivered to your body to make the spike protein of the virus so youre not making the entire virus, youre not getting delivered the entire virus, youre getting the genetic material, then you make the spike protein, your immune system sees it, recognizes as an invader, creates antibodies, t cells, thats how the vaccines work, and that is not a concern from folks we have heard. Meg, stay with us lets bring in jim cramer to get a reaction to what is happening to the markets this is good for 900 to a thousand points on the dow were up by 1,300 points, maybe not a surprise given how important this news is. Absolutely. I mean, i think that we came in here thinking that the disease is out of control. There were some states we just felt, look, we just lost any ability to contain there wasnt anything we can do. People talking about a National Lock down or local lock down under a new president , and this may end that, obviously if we get too far ahead of it, people will say, listen, we have to spend more time. Justifiable because the country and the world with the exception of china, singapore, taiwan were being cut down by this as joe was saying, this is not a company thats never brought anything to market this is one of the greatest companies in the world i want to point out that the cynicism about science was unrelenting. Theres a belief among some people that science was never going to be able totackle this thats wrong too i think that the rally is justifiable. I think were going to start a new discussion, and the discussion is whats america going to look like post covid. Yeah, and let me ask just very quickly, questions about stimulus, some people say this means we dont need it just to point out, this is amazing news we have a bridge before we get this out there maybe we need the stimulus for the businesses and people who have suffered. Obviously theres businesses that are being hurt, and there should be i think some compensation, given the fact that i think there should be some sort of we used to talk about disruption insurance, i dont want to be cavalier, i have lost a few businesses i understand but look, lets go beyond that and just say, what happens if travel returns, what happens if countries all over the place come back given all the stimulus of course well be neiaysayers, this is a reason for genuine optimism why dont we celebrate it. Yeah, i hear you. Its weird to not be really excited. Im thinking about paris, jim, we might be able to go back. Im wondering about amc or a lot of these businesses that we were worried were gone for good is there going to be enough financing to get them through whatever it takes to get this up to scale because im starting to think, jim, i cant believe it. Im starting to think, i might get emotional, im starting to think that there may be a cruise industry, again, not that i want to go on one again. Why shouldnt you be emotional . I know, i know. We can go to restaurants, jim, we can go back to your restaurant in brooklyn we can be 100 full. We could be, you know, theres so many things that we have written off. We almost got negative and pessimistic about ever life returning to normal, and that was a sad prospect for kids, colleges, and you know, grade school, and socialization, all of these things that have been prevented. Proof of concept, we might be able to get through this. There was a program last night on another channel which talked about how the military is ready to be able to disseminate this, and it made us feel like if we ever got something it would not be a dead end or a waste of time. Its just the opposite should the dow be up this much i dont know, if you think about where we were last week, where we felt that there was very little chance to be able to stop this thing, now suddenly we have hope, and im sure that in 1953, when you realized that you kno what, we may not get polio again, theres a similar reaction, we can go out and do things my first thought is travel, maybe theres something to go to youve got disney, what happens if everybody gets vaccinated and people start going to disneyland so there are a lot of people on the other side of this parade. Theres a lot of people who felt growth was going to drop dramatically i think thats going to be off the table and people will have to radically revise their estimates up from next year. Strange to be glum on a day like this. Maybe there are some people. Look, theres always reason to be glum except for how about we get a couple of hours of positive do i want to buy pfizer up 13, i dont know do i want to buy disney up 10, maybe . Youre not the only one thinking of going to disney. Theyre up 8 stock. Im thinking about going to pennsylvania that would be a big deal jim, thank you. Were going to check in with you in just a little bit later this morning, too meg tirrell has a very special guest this morning meg, this is the news of the morning, the news of the week, and much more than that. Go ahead and take this away. We are all ears. Becky, thank you, that guest is Albert Bourla, the ceo of pfizer albert, thanks for being here. What a morning i can only imagine what you all at pfizer are feeling today. What was it like when you saw the results, 90 efficacy for your vaccine for covid. It was exactly what you can imagine. It is a great day for science, a great day for humanity, when you realize that your vaccine has a 90 effectiveness. Thats overwhelming. You understand that the hopes of billions of people and millions of businesses and hundreds of governments that were felt on our shoulders now we can see light at the end of the tunnel you said no serious safety concerns that you observed in the trial so far tell us what youve seen there, whats it going to be like for people if and when this vaccine gets on the market to take these shots. After the second one, you do feel some side effects sti sometimes, right we have published, as you remember, you know, rnd at pfizer blinded safety data from the first 6,000 patients now we have almost 40,000 patients with a second dose already been given, and its exactly the same situation hasnt changed at all. So the probability profile, it is among the best. So this is of course just the top line data. You took a look on an interim basis. 94 infections in the trial we dont have the spelled out data, what can you tell us about did you prevent severe infection in the trial you know, just tell us what you can essentially at this point about what you know. Im telling you what i can because of i dont have this information. This information is blinded and a committee of experts reviewing the data according to the protocol, the only information they had to give us was if the product is effective and the effectiveness of this product and the first primary point was people without prior infections, and also they had to look on their safety data base, and they told us that they have no safety concerns. We are not aware of a secondary points and it is the severe covid, and we are just waiting for the stock to be completed but given how quickly the events are occurring, because unfortunately this great news are coming at a time that the world needs it the most, where we have a hundred thousand cases every day, we will have completed the study before the end of the month. Wow albert, congratulations, i think a lot of people are, a sigh of relief, hopefully, and praying that this can get out quickly. One of the issues we have been talking about is the supply constraints and how quickly thats going to change and move. I know theres 50 million doses available at the end of the year 1. 2 million doses in calendar year 2021. Can you speak to how you see that rolling out is that in fits and starts how quickly does that come is that by the first half of the year, second half of the year . What does that look like yeah, thank you very much, and first of all, let me tell you that theres no one more relieved than you seeing these results. We have already started to manufacture sometime back, and as i said, we believe we should be able to have up to 50 million this year, 1. 3 billion next year these will be coming gradually in the beginning, a little bit less than the First Quarter more, the Second Quarter more and then we could have a significant drum up in the second half of the year. But given how effective this vaccine is and we are aware of the demand will be much higher than anything we can produce, we are also looking right now to see if there are other ways thinking out of the box have increased even further, the manufacturing capacity now were speaking about 1,000 people dying in the u. S. Every day, right, so theres no time to be lost here. And just to follow up on that, the 1. 3 doses, billion doses, i should say. Because there are two doses required for each person, were talking really about 650 Million People that can be treated is that the way to think about it this is exactly the way to think about it and then the last question i had related to all of this is obviously there are rivals and competitors working on vaccines and i know you cant speak necessarily to their vaccine efforts, but given what you think you have learned here, do you think you could extrapolate out those kinds of results in any of the similarly situated vaccines that are using similar technologies let me tell you, when it comes to pandemic, the only competitor is the virus and time and right now, the first of all of us was able to beat, and i hope that others will also be able to beat this virus as effectively as we do because we need options and, let me take also the time right now to thank not only the hundreds, thousands, actually, of scientists that were investigators, but more importantly, the 44,000 volunteers but raise their hand and participated in in a trial they didnt know if the vaccine works or even if the vaccine is safe i think the world owes them big time hey, albert, i said at the beginning, this is the news of the morning, the news of the week forget the election, this is the news of the year this is the most important thing we have heard, the most exciting thing we have heard. I want to thank you, your team, everybody you just thanked for this this gives us hope that we didnt think was possible just an hour ago. Let me ask you, sign me up for this thing how quickly can you reform laul it, what can you do for older cohorts, and kids, kids as young as 12 right now. How quickly can we sign up all of our kids for this, how quickly can you get the testing taken care of in. We are doing all the way from 12 years old to 85 years old we are collecting data and information for all of the age cohorts. We are also doing for people whether they have chronic diseases, hiv, hepatitis c, hepatitis b, and of course we will decide which ages they are going to recommend it. The study is very robust right now. Yeah, i hate to keep pushing this, but ive got a 4yearold, 9yearold, and 94yearold grandma. We talking six months, nine months i think that the older people more than 85 i think like regulators status to 85, they are giving, and physicians, they are treating very easy the older people thats up to physicians and fda of course, and right now, we are focusing on 12 years old i think the most vulnerable are the older people albert, i got three or four questions. I want to start just, you know, its hard for you to be just, you know, very serious and state about this i can see how happy and excited you are. But can i ask you when you heard 90 , was there ever a period in the development where you were questioning whether there would be efficacy, and when you heard that it was 90 , were you surprised that it was that high . Were there do you think that looking at the signs, seems like a really high number, even it may have surprised you first of all, youre right. Im happy, but at the same time i have tears in my eyes, when realize that this is the end of nine months, day and night work of so many people, and how many, as i said, people, billions invested hopes on this you know, i was going up and down, while i was trying to maintain not to speculate if the vaccine works, and thinking maybe not, because i have seen many times although the data, your phase 1 and phase 2 are very positive, sometimes you fail in phase 3. I was cautiously optimistic. I never thought it would be 90 . My next question has to do with its 90 , thats like measles, thats like a vaccine that we think of that you get when youre a kid and youre done for life. When will we know whether thats the case what type of additional studies need to be performed for us to know that there wont be a yearly comeback of a different variation of covid that would require a flu type shot every year when will we know how long the immunity lasts in terms of antibodies being present or the right type of cells, and what kind of tests are your scientists planning now that you need to do to determine the answer to those things yes, we have already in our protocol provisions that this study will continue and we will follow the patients for two years, and there is news we want to maintain, but for two years, we will exhaust every single possibility but we will pick up any safe event but also we will see how long the immunization lasts and how long the cell immunity lasts, and so with this study, as time progresses, we will find out about the durability of the protection as i said before, sign me up, and im sure there are lots of people thinking the same thing, but the ethics of how you distribute this are going to be pretty closely watch how do you do it, how do you determine who gets it, and who has to wait . Youre absolutely right, and i truly believe that its not for pfizer to decide who will get the vaccine. I think it is for the Health Authorities of every country and the many cases within the same country of every region or every state in the u. S. , for example, because the situation differs from state to state or from country to country, and you need to taylor it to the needs of the specific geographic region we will of course work with all of these Health Authorities to provide them the insight they need to understand how it works in groups of older people, younger people, who will provide all of this information, and eventually they have to make the decision who gets it obviously i believe that all of these authorities will make the decisions in the most scientific and equitable base hey, albert, its meg tirrell, just to follow up on that question. Of course governments will be making the decision about allocation for their citizens, but how do the decisions get made about how to allocate the vaccines to different governments . You have made supply agreements around the world how will pfizer decide who gets how many vaccine first versus the u. S. , europe, asia, you know, all of these different questions . Yeah, first of all, we have two separate manufacturing lines, one, it is in the u. S. , and that has three manufacturing sides in massachusetts, missouri, and in kalamazoo michigan, and you have a separate line in europe with manufacturing sites in belgium we have offered this vaccine and we have signed already contracts to multiple governments in the world, and in most cases, we define how these quantities will come in month after month, when we want, well do that proportionally to all of them. Can you break that down at all, albert . Just to give us an example of it is most of the vaccine thats being produced in each of these nations staying in those nations or does it go out dependent on who signed up . Whats the break down for each of the governments youve already agreed to in terms of who gets what . I think its very very important. Will not say whether they are manufactured but send them to the entire world, because you are as protected in a pandemic as your neighbor is protected. We need to understand that nevertheless, we have two manufacturing lines, and i hope we will be able to the entire world from these manufacturing sites without problems. Albert, when was it clear to you, when did you get the actual news, is it just yesterday or over the weekend what was the actual time it was yesterday afternoon. It was around 2 00 amazing, the timing of everything guys, i just, albert, this has nothing to do with you, but i just said i wonder how zoom communications is doing, it closed at 500, bidding 440 right now. It changes a lot of different things, i think. Just the way that we think about, you know, travel and we have talked about all of these things i dont want everything to get ahead of itself, im wondering, what are we missing in terms of something that could pop our bubble down the road is there anything you can think of that could come out anything other than supply issues which we have heard about again and again and again. I think that it was very important but only the first step and now we feel very very very confident about the efficacy because its overwhelming. We feel very good about safety but we need to wait until next week when the safety data will mature completely based on the guidelines of fda, and of course we need to make sure that we can constantly manufacture in both continents, in europe and the u. S. In the quantities that we are seeing we feel good about all of that but of course, as we said before, this is something we have done the first time in the world. I believe this is likely the most significant medical advance in the last hundred years, right, if you count the impact this will have in the Public Health, global economy, et cetera, et cetera, so im happy that we have the whole pfize machine, of course biontech, well be able to support it i hope. Its meg tirrell. We have talked so many times about the timing of this data, and it was so tied to election day. You had expected you would see by the end of october whether the vaccine worked youre getting this news now, a week after the election. What do you say if President Trump accuses you of waiting until after the election to release this information for us, the election day was always an artificial day we were not working with the election as a time line. We were working, released a letter, if you remember, meg, to our employees, some time ago saying that the only pressure we feel is the pressure of the billions of people hoping on our vaccine. And we are going to follow the speed of science, so science spoke, and i was predicting that this will happen at the end of october. It happened a week later i think the most important thing right now for everyone is to feel the joy that it happened, and it happened so well, 90 hey, albert, 90 effective is amazing. I know. Dont tell me. I know 90 is just amazing i know that, again, for people who havent been listening through this entire thing, for the flu vaccine, its generally 40 to 60 effective. I wonder for the 10 that its ineffective with, is there a pattern, can you determine if theres some commonality for the people it doesnt work in . It is too early, because as i said, i dont have the all of the data it is a group of independent experts but they can see those data unblinded, and once we have a start date, i think it will happen before the end of november, but you know i said that it is more than 90 . I didnt say its 90 . More than 90. We will not give a specific number because, you know, the numbers from 92 to 100, one two points up or down, but right now i feel comfortable it is more than 90 but it is dependent on a patients own immune system. Can you be so immune compromised for whatever reason that its not effective and is it more effective in people with vibrant immune systems, younger people, people that dont have comorbidities or does it seem across the board in terms of effectiveness. I believe, yes, in biology, you never have 100 , and in general, speaking about more than 90 is one of the highest results that you can hope and expect for vaccines right now, and they will be also with some people, but will be a small percentage when you see from a Public Health perspective, this is more than what you could ever hope to have this is a game changer. And i wonder what else we can why cant we, i guess the coronavirus that causes the common cold, mutates so quickly that its impossible to have something that lasts year to year im just trying to understand the difference between maybe some other chronic reoccurring seasonal diseases that we have, and why this new technology couldnt be applied to that, or whether it can be applied to some of those things do you know at this point ever look, i mean, speaking about mutations of coronavirus, i think that this is a likelihood scenario we start seeing some of them right now looks like our vaccine is, as i said, very effective to all of the mutations that exist out there right now. But in case a new mutation that requires lets say new vaccine, emergence in one or two years, the good thing with this technology is that you can adopt the technology extremely quickly because as you were saying before, youre sending a message to yourself to produce dna its an rna message that we are sending. So we can just change the code in our vaccine without changing manufacturing process, without changing virtually anything and be able to be effective against the new mutation thats why we selected this technology when we started back in march, we had access as pfizer to multiple platforms of technology and our scientists proposed and selected to use this one for these reasons. You can boost as much as you want, for example, if you need to boost next year, you can do it this Technology Allows you to do it, and you can do it the year after. And also, if there is a mutation, you can produce in weeks, rather than months, the new vaccine. Hey, albert, its meg tirrell. I want to follow up on the International Allocation of this vaccine because it does seem like it could be a tricky situation. To make sure we understand, pfizer is going to be making the decisions about where the vaccine goes country by country, and what about low income nations. Does pfizer have an agreement with covax, do we need an International Overseer of distribution or will companies be making these decisions . Pfizer has agreements with multiple governments but also has discussions with even more, and we are of course in discussions with covax facility to provide our vaccine to the low income countries, the poorest countries of the world on a not for profit basis for these countries so we are discussing as we speak, and i hope that we will be able to provide equitable protection to the entire world. As you have been speak, the current president President Trump, tweeting out the stock market up big, vaccine coming out soon 90 effective. Such great news. My question to you is given the polling around americans willingness to take the vaccine, youre seeing some polls suggest somewhere between onethird and twothirds of americans say that they wont take the vaccine. What do you think has to happen . What do you think the industry and government needs to do to create the kind of confidence that you would want to see so that much of the country, if not all of the country ultimately takes it i think the number one and most important thing is that we keep discussing about the vaccines in scientific and nonpolitical terms i think this is what confuses people and make them doubt they dont know whom and what to believe. The second what we are already doing, we should continue doing it to the end, which is transparency i believe we were very transparent with our protocols, with our safety data we are extremely fast to announce the efficacy data once we have them we believe, but its good those data will be publicly exposed. I think fda plans to have a committee of external advisers to the fda they will review the data publicly, and of course i think it is up to the greatest scientists that we have right now in the world and the u. S. , to express their opinion about this vaccine i understand that they were skeptical about the vaccine but i need to repeat that the decision to vaccinate is not affecting only yourself. Its affecting the health of others and likely the most vulnerable others because if you decide not to vaccinate, you will become the weak length to allow this virus to replicate and produce the effects, so many people unemployed, 1,000 deaths every day in the u. S. Only and even more in the world, much more in the world. Its an important decision i want everyone to be open minded from our perspective well do everything that we can, to convince them that 170 years of legacy is we plan to respect some questions for you just about some of the nittygritty details in the release this 90 efficacy threshold was met in people who did not have evidence of prior infection with sarscov2 now, you are continuing to evaluate both people who do have prior infection, and who dont to see, you know, does itwork for everybody. But what scientifically does that potentially mean. You know, would people need to get an Antibody Test before they get this vaccine tell us about that detail and its significance. I dont think of course its up to fda and the authorities, but i dont think really the first primary point is the only point the experts, were allowed by protocol to talk to us but of course they have data about also people that have been previously infected and by people without previously infected we will only know when the study is complete. Typically its a lesser hurdle if you are able to protect people not previously infected, likely you will have better chances to protect people. Also, we are going to see information that we are going to have for 14 days after vaccination because keep in mind that right now we use the most extreme test for this vaccine. We tested people seven days after the second index this means that we tested these people can be protected four weeks after they start their vaccination schedule first dose day one, 28 days we start looking events its very very quick and this is a very very big test we are testing also what happens in 14 days after the second dose, which we expect will be an easier hurdle but of course we need to see. Hey, albert back to the confidence point about getting americans and those around the world to take this, under what circumstances would you take the vaccine how quickly would you imagine that you would do it, and if it wasnt the Pfizer Vaccine, if it was another companys vaccine, what would you need to see personally for your family to decide to take that vaccine . The fda approves it in the u. S. , and if i was living in europe, that european authorities approve it i truly believe in the integrity and scientific capabilities, first of all, of fda it is a Renowned Agency for these capabilities, but also the european agencies. Once they approve it, i know that it is safe for my family. Myself, i would like very much to get it among the first to demonstrate to the world that i am the first one, but i will try it with my family. We need to see some ethical considerations, if, for example, we have a limited number of doses, i dont know if the government would recommend people of my age and cdc, people of my age work capacity to be among the first to get the vaccine, so i want to respect that but i will try to convince them, if they will allow me to vaccinate. Well, Albert Bourla, this has been a historic morning, we appreciate you being here with us i can only imagine the pride that your scientists and your entire team feel at pfizer, and we see light at the end of the tunnel so thank you very much for being here with us this morning. Thank you very much for having me. And meg, thank you, again amazing news we have watched this play out, but you think about what this might mean the idea that we might get back to normal, sooner rather than later, that there is actual hope here this is such a different world than what we woke up to early this morning check this out you can see playing out with whats happening in the market dow futures indicated up by 1,442 points, by the way, this would put the dow at a new high. We were less than 5 from all of the major averages, all time highs earlier today. Watching this if the market continues at this pace would put it back at an all time high for the dow. S p is indicated up by 120 points the nasdaq is turned down by 75 points you may wonder whats happening. Thats because a lot of stocks have been doing well as a stayathome play. First, though, looet taets takk at pfizer shares unbelievable news, they have a vaccine that in the phase 3 trials is showing to be better than 90 effective 40 to 60 is what the flu vaccine is better than 90 . You get up there with smallpox and some of those things right now, that stock is up by just over 11 . The idea that we might be able to get out and travel again. Certainly thats helping things like the airlines and cruise lines, if you take a look at these stocks American Airlines up by 23 1 2 . United up by 18 delta by 17 , and big gains for southwest and jet blue as well also the cruise lines, the idea that you could potentially travel, all of the cruise lines have told us they are going to withhold the cruises for the current time carnival up by 25 norwegian up by 24, almost 25 the nasdaq, thats a reflection of stayathome stocks and faang stocks the stayathome stocks, joe called this early, he wanted to see what was happening with zoom zoom is down 15 , down to 423 peloton down 12 these are the stocks that have done so well as people have been staying at home. Netflix off by 5 1 2 . I saw it down by 6 1 2 a little bit ago, and the faang stocks that have done incredibly well as people are using all of this technology, theyre down a little bit netflix is the big decliner. Amazon off by 3. 4 facebook by 3. 2 joining us is mike santoli, stephanie link of high tower, and mohammed, lets start with you, what this means watching this from europe with what this means for where we stand, where the markets stand. Its great news, becky, and thank you for the amazing reporting this morning it is great news, and it reflects life reflects light at the end of a very long tunnel im fascinated not only by the way the stock market is reacting which is to favor the go back to work, but look at the bond market, the bond markets give a very interesting signal, the notion that the u. S. Will recover much more quickly than europe because of the internal strength of the u. S. Economy youre getting consistent signals across different segments of the marketplace. Hey, mike, lets just kind of dig through what the markets reaction is, probably not an overstatement, given how important this news is. No, i mean, if you think about where the s p is due to open up, its about a percent and a half above the record high you didnt know if there was going to be an effective vaccine, and all of the other things were ahead of it, like an election to be a percent and a half above where we traded three months and one week ago whats very interesting is the dynamics over the last, lets say ten days, a week ago friday, people kind of hunkered down a little bit scared, worried about the election result. Worried about covid case surge, and really that sentiment to be quite negative there was internally a belief that there was going to be stimulus at the back end in a few months and you had bond yields going up cyclical stocks working and the apparent result came out tuesday, and wednesday, and people went to the other side of the boat saying buy the nasdaq stocks, low yield, and slow growth, and you have to buy secular growth, and today is the opposite so i think theres some accelerant in the market based on how people have been forced to reposition multiple times over ten days. My final point is if youre the type of investor who says gee, i think i want to buy this dip but i want to wait for certainty if today is your certainty about the election and the vaccine, youre buying at 10 above where you had it a week ago friday it doesnt mean buy every dip but it tells you the market is going to get there before you feel comfortable getting in. Hey, mike, you know, weve talked a long time about people being in the market, out of the market, and to the extent people have been in the market waiting for the binary moment. Being that we will find out theres a real vaccine or not. The question is at this moment and when you look out either 12 months from now, do you say to yourself, the entire country is therefore vaccinated and we are back to normal because clearly between now and then, we still wont be back to normal, and so how do you think that investors are going to measure that . First of all, were going to have to look at the underlying data for this vaccine trial. Were going to have to get a sense of how the process is going to unfold. And really whats going to happen in the intervening time, when it comes to an existing pandemic thats going to get worse in places. Maybe you can get a little bit of credit, not worrying too much about what growth looks like, if people have to hunker down a little bit more. I dont think its fair to look at it as a buy narrinary moment its not as if we have been sort of sitting around doing nothing waiting, so i think its an increment incremental positive, favors stocks people have been nervous to go around we have an s p 500 right now thats like 40 stayathome secular growth type name beneficiaries. Who knows what the effect on the actual benchmark is going to be, even if we get excited about what the economy is going to look like. Is it too late, to mikes point, to try and chase any of this stuff down . What are you doing today hey, becky, im assuming it came to me, i didnt hear you. Look, this is a remarkable day, were chipping away at the uncertainties, 90 effective versus dr. Fauci saying 50 to 60 would have been acceptable 50 million doses are going to be produced this year, going to 1. 3 billion doses next year. This is remarkable now you have the election sort of certainty there, right, we think, and now you have this certainty. So were chipping away this is very positive. I still think you want to have a barbell. You take advantage of some of these Secular Technology stocks getting hit today because of the total Addressable Market strength that the companies have, but you also want to own cyclicals because you have enormous fiscal and monetary policies were going to get more fiscal, and youre also Getting Better Economic Data. Last week we got a lot of good Economic Data that people earned, and stocks follow profits and earnings so its very exciting today, and i think you still want to have a combination, again, of technology stocks, secular growers, but also the economically Sensitive Companies that are going to benefit from us reopening. Santoli, i guess im just wondering what the market saw. The binary moment was probably about six months ago, if you think about it at a new high and up 50 , or what it is, fou inow im wondering whether the market continues to crank or segmenting into reality where it should have been when we thought the world was never going to get back to normal we had our chance, and if youre not in, were going to the binary moment is the day the dow hits a new high. Look, i dont think its necessarily a moment where its a, you know, declaration of victory, and we arrived at the place we thought we were going to over the course of the last six months, the pendulum has swung a couple of different times, back and forth to wow this is going to take a long time to were going to reopen soon it it happens over that period, it was a net benefit to the overall market over that time. Its still acting like a bull market what youre going to see is volatility continue to crash a lot of people were very very defensive and henldged up coming into the election. Maybe you have the positive seasonal effects i do think to your point what were going to be on the lookout for is over confidence starting to manifest itself in a market running a little bit hot in the shortterm, and then you have the normal, you know, kind of trading around that, and figuring out whos been overdone and who got neglected in that rally. Most Big Companies were doing pretty well already. I think that was one of the headlines i saw in the journal today that big u. S. Companies have trounced expectations this earnings season. Prior to the positive news about the vaccine, we saw things in the corporate sector, and overall economy that sort of, i dont know whether it press edged the move back to normal, but we definitely didnt, i mean, the World Business didnt end, obviously. No, i mean, the floor in corporate profits was definitely much higher than people thought it was going to be six months ago. Its hard for companies to get in a lot of trouble when the Capital Markets open that way. Private sector outperformed expectations of a few months ago. Mohammed, just in terms of what we might anticipate, you know, you start thinking through this is great news, but were not there yet. Its going take months before we get to that. What does this do for the stimulus talks in washington there had been talks maybe the two sides could come together and pass something when you have Something Like this looming out there, how much more difficult is that to come that is the added piece of the puzzle to the discussion now with stephanie and mike san ttoi which is what does it mean for other things that have been keeping the market going, not just hope of stimulus at one point but also the incredible support of Central Banks to go back to mikes point, there is a reason why investment grades are at 2 thats because the fed has been buying bonds which has allowed everybody to refinance as long as they can get access to the bond market. Investors when they look at the overall market, as opposed to betting on lagging names that will benefit unambiguously from the light at the end of the tunnel, but youve got to factor in these other two things that have been important. For me, on the stimulus, i know what the narrative will be the narrative will be, we need it less. We do not, between now and herd immunity, theres a risk of bankruptcy theres a risk of unemployment, and youve got to make sure that you keep the economy going, and you stop the shortterm problems of becoming longer term problems the issue with the fed, to tell you the truth is, not really what i think they should do. Its what i think they will do is they will continue with peddle to the medal. Steph, just want to talk about stayathome stocks, and youre watching them literally falling in realtime this morning, whether its a zoom or whether its a peloton, does that make sense to you in terms of where we really are here . It does, for sure because these stocks are up like triple digits, right, on the year, and the reopen stocks. Im just looking at marriott, and wynn, and zf corp. , and caterpillar, they are up slightly but the other stocks are down on the year, and the valuations are so compelling, if you believe that we are going to get back to normal, so i could absolutely see the reversion to the mean trade happen in the shortterm, but to the extent that some of these stayathome stocks fall, and i dont mean zoom, or peloton, i mean like a sales force or alphabet or even an amazon, if these stocks come down substantially, then you want to pick away at them. They do have such strong growth, secular growth, but you want to have some of these other names that really could pop strongly, and were seeing that today. It certainly makes sense to me this is all about diversification. Thats why you want to have it stephanie, heres the thing i dont understand either we believed and maybe you think the time line has fundamentally changed. I would argue it hasnt changed. This news today is fabulous, but i think, and i dont want to say it was baked into the market because clearly it wasnt but i do think that the smart people i knew were saying we should have a vaccine and a lot of people would be vaccinated come next summer, and clearly within the next year so the question is then you look at a zoom, you look at a peloton, and you say were those investors thinking something differently. Was that a Sustainable Growth rate for them . You know, i think theres some real questions to be asked then. Well, no, i mean, look, they have real growth they have secular growth, but did they get overextended, of course they did, right, its not normal to have a stock up 3 or 400 in a year i dont care what you say. Vaccine or no vaccine, reopen or not. But those stocks had momentum and people were following the momentum you can invest like that if you want, thats not my style. I like to buy things at a discount, growth at a reasonable price kind of thing, and thats why im saying, some of these companies, these secular growers, and its not peloton and big high fliers, but if some of these secular growers, cloud, ai, retail ecommerce, those themes are powerful, and then if they come down, you want to buy them, right, but you also want to absolutely have the economic company, the cyclicals and value. Thats the other question it goes back to the same time line, which is to say youre looking at the airlines and they are rocketing into the sky to use a terrible analogy, but when you think about those stocks, do you think theyre still under priced do you think theyre overpriced at this point, if i told you that most of america were still not on an airplane until lets say next september, i dont know if you think thats realistic, november, maybe another year and a half out so andrew, you know the market is a forward looking indicator, right, so were always going to price six to ten to eight months ahead of time. I was on your show in march, and i was buying and it was hard as heck to buy stocks in march, but i was buying Quality Companies with good cash flow, dividend and dividend growth, is that the airlines, i dont think so, but you dont have to go to the airlines right now you could go to some of these hospitality companies, some of these leisure companies, some of these discretionary companies that have gotten hit very hard as i mentioned before, marriott and wynn resorts, wynn just posted a beat in the face of horrific numbers, and they beat and they have great liquidity, same with marriott, vv corp. You dont have to go for the high fliers, no pun intended because these companies, those are really structurally having difficult times obviously but you can go to other companies that have kind of gotten thrown out with the rest of these reopen stocks and you can find really good blue chip ideas even at this point, even up this much today. Stephanie, mike, mohammed, we want to thank you all for being with us through this breaking news pfizer announcing it covid19 vaccine has an efficacy of better than 90 . Better than anybody was expecting. No serious side effects and that has the entire market taking off. Well continue to cover that when we come back, joe. Coming up, much more on pfizer and the vaccine and then new Jersey Governor Phil Murphy joins us to discuss the rise in covid cases in the tristate area, and of course well be talking about this news and what it means for all the states really squawk box will be right back. Ok, just keep coloring there. And sweetie can you just be. Gentle with the pens. Okey. Okey. I know. Gentle. Gentle new projects means new project managers. You need to hire. I need indeed. Indeed you do. The moment you sponsor a job on indeed you get a short list of quality candidates from our resume database so you can start hiring right away. Claim your seventy five dollar credit, when you post your first job at indeed. Com home. Breaking news and it is big, pfizer saying its covid19 vaccine may be more than 90 effective on the Coronavirus Vaccine. The companys ceo telling us its a great day for since science. You understand the hopes of businesses and governments that were felt on our shoulders, now we can credibly tell them, i think we can see light at the end of the tunnel. Stock futures are surging across wall street were looking at new records for the dow and the s p 500, so with this news, does the calculus change in washington around the next stimulus package, and president elect bidens coronavirus strategy were going to talk about it all on this very hopeful day as the final hour of squawk box begins right now good morning, and welcome to squawk box. Here on cnbc, im joe kernen along with becky quick and Andrew Ross Sorkin news of the Coronavirus Vaccine from pfizer and biontech, treasury yield is moving, stayathome stocks moving some of the non the open up stocks are moving. Its all happening all at once welcome backdrop that just as a person the notion that someday life gets back to normal is Pretty Amazing i woke up to a horoscope that said you may be rather emotional about something today, which is not like you at all. I swear to god, in the new york post, but the planets indicate you need to let your feelings show so you can move on from a situation thats been affecting you intensely. And you know what, theres no crying in baseball, but, man, i dont know there is in covid. There is. And the idea that this can actually change things you can see your parents and grandparents again. I thought of my son, senior, i thought of my daughter, you know, nobodys doing things. I thought of masks forever i thought of, you know, the airlines, their employees, small businesses, restaurants, its just, i mean, i dont want to jump the gun either, and, you know, we got a long way. I think its got to be stored at minus 95 degrees theres a lot of logisticals. But it works, you know, and its not 90 effective, the ceo told us its more than 90 effective, and thats so much better than anybody was anticipating. It was. Movie theaters, last week was like, why even bother. I drive past those places and its just, you know, and i like the popcorn. I like the theater popcorn anyway, it just could be for sports, for vegas, for across the board, it could be good. Stocks tied to how quickly the country can reopen, surging including airlines, hotel stocks, check out crude oil this morning. Well take a look. You can see the tenyear is. 9 , and there is, you see the airlines all up. Some of them up over 20 you can see amr, you can see the hotels im cancelling one more trip out of the country its just not possible, i dont think, yet in december. And there you can see the crude up almost 10 if that doesnt tell you something right there weve got a big final hour of the show today were going to talk about what an effective vaccine would mean for the markets, the money and the economy. Well talk to new Jersey Governor Phil Murphy who was coming on for a completely different topic, its the same topic, but maybe will be vowiew in a different light b. E. T. Finder, bob johnson, and theyre going to join us to talk about that the other story from the weekend, Vice President biden, elected president elect. First, though, becky, i mean, did you feel the import of having Albert Bourla on the day that it happened yeah, i am grateful to meg for bringing him here, and letting us ask all the questions we had, and for him taking the time to go through it with us. We said this is perhaps the biggest story of the year, and i think it is. The biggest medical advance in a hundred years and when you think about what this means to the globe, thats probably not an exaggeration first, though, we keep talking around in circles, in case you havent been with us for the last hour, lets get the latest on pfizers vaccine news meg tirrell joins us she has more on this meg, take it away. Pfizer and its partner biontech, shows 90 efficacy in protecting against covid19. This was a 44,000 person trial, and they saw 94 infections in the study. That is how they gauge the effectiveness of the vaccine there are more infections on people that are in placebo, than in people who got the vaccine, showing that it is protective. Now, they didnt see any serious safety concerns in the trial they are going to wait until the fda required time line of safety follow up of two months after half the people in the trial got their second shot. To file for fda emergency use authorization. They expect to have the data in the third week of november, thats essentially next week this a two dose vaccine. You get the doses 21 days apart. Theyre essentially looking at protection achieved. 28 days after the first shot with this vaccine. We of course did speak with Albert Bourla, the ceo of pfizer this morning heres what he told us it is a great day for science. It is a great day for humanity when you realize that your vaccine has 90 effectiveness. Thats overwhelming. You understand that the hopes of billions of people and millions of businesses and hundreds of governments that were felt on our shoulders. Now we can credibly tell them i think we can see light at the end of the tunnel. And fwiguys, a lot of reacti from all over the korworld. I just heard from the chief adviser to operation warp speed who has been leading this vaccine effort in the Trump Administration for the government he says 90 , this is so exciting and so clear, and in line with my early predictions, taking a bit of a victory lap there that so many dismissed. This is a great day for humanity to put this in context with other vaccines , the flu vaccin is 40 to 60 the fda bar for Covid Vaccines are 50 effective. Youre talking 90 effective up with convenience of measles, smallpox, chickenpox we dont get the smallpox because the vaccines eradicated that disease this is a high level that people were not expecting i heard from paul offet in support of the fdas outside panel of advisers. He knows this is encouraging data he wants to see more information on the degree of protection for severe disease and also the break down by age. Becky, you have been focused on older adults do they get the same level of protection we got the top line, the vaccine works, it looks to be safe well be waiting for more details on how long it takes and how long the vaccine lasts. Thank you so much for bringing us that interview earlier this morning on this, six, earlier, hopefully, very hopeful day. Joining us with his reaction to the news from the pfizer and what it could mean for his state where weve seen a concerning number of rises in covid cases, new Jersey Governor Phil Murphy recently warned of potential new restrictions in the garden state. Thank you very much for joining us on what is a very good day in terms of science, less good day in terms of where we stand with covid right this moment. Im curious if you think that this news, and potentially the time line for when a vaccine becomes available would change your strategy at all andrew, good to be with you short answer is no i was on saturday with dr. Tony fauci who has been a great adviser for us in new jersey, and he made the point were sort of in a sixmonth window here. Im not sure he had the pfizer news at that point he may have, but were in a plus or minus sixmonth window where we got to battle against the fatigue, the covid fatigue here, stop letting our hair down, with holidays coming up the answer is it doesnt change us in that window. Boy, its really really good news in the longer term. In terms of the idea of lock downs, other types of restrictions, where are you at right now, and what are you thinking over the next month or two . Yeah, well take some steps later today, but they wont come close towhat we were doing in the spring this is not a lock down, but this is tweaking our parameters at the edges andrew, the fact of the matter is a lot of the transmission, as far as we could tell, and apparently this is the case nationally as well, is in private settings so we got to stay on the bull horn, keep pleading with folks, battle against that fatigue. This is not forever and always we got a sixmonth window, basically, to keep this thing at check, and then with the vaccines, such as the one that pfizer has announced today, well be in a dramatically different place. Not entirely in the clear, but a dramatically different and better place as much as six months from now. I know and imagine you would be encouraging people to take the vaccine once it has been approved bid the fda im curious how you would think about employers, private or public, meaning government workers being required to take the vaccine to come to work . Thats a good question. I mean, i think folks will get there on their own, honestly, and were not going to wait for the vaccine. We have already started Public Service announcements and efforts to communicate we have been pretty convinced over the past number of weeks that the feds were doing the right thing, the private sector doing the right thing. Weve got our own checks and balances in new jersey, and the pfizer news today is another good example of well placed optimism i think notwithstanding a vocal but minority antivax block in our state, and frankly probably in every state, i believe folks will get there of their own free will. Governor, you have warned with the climbing case rate in new jersey and the tristate area, that you are likely going to have to issue new restrictions or bring back old restrictions what are those restrictions, what are you targeting yeah, becky, were still working that through, but my guess is later today that were going to shave at the edges, you know, for instance, we have seen that if you sit at a bar, theres a much higher likelihood of transition. Restaurants that stay open late, folks let their hair down later than earlier we have seen some sports, particularly Indoor Sports transmission we dont think its due to the sport but adjacent activities to that, particularly in multistate tournaments. Those are the sorts of things were looking at in the near term. So youre talking about High School Sports potentially having restrictions on Winter Sports that are played indoors . Indoors but interstate importantly, not necessarily inside of new jersey, but tournaments in particular that include other states and especially that include travel those are areas that were laser focused on. Up college, too, Like College Football up through high school. Governor, i wanted to also ask you about testing, and continu continued investments in testing and thousand you think thats going to change or not, given that we might be on the cusp of having a vaccine, again, its unclear how quickly it will be available, and available at scale, but do you think thats going to change the incentive system, and if it does, whether you think that Government Support is going to be needed. In the long run, it may, but it wont in the near term. We test per capita, probably among the highest if not the highest state in the country, the federal government to their enormous credit is going to be very good in helping us with the resources we need for that i think that stays at the level its at right now, and the need to get tested. So when weve got a Community Hot spot, we surge resources high on that list as our testing, testing tracing, compliance, Public Service, bull horn announcements, you know, including in multiple languages. I think that still remains part of our arsenal for the foreseeable future. And speak to where you think we need stimulus at this point or where you think we dont, and again, how this may change that conversation when i say this, the potential for a vaccine, which i think were hopeful about. Theres a timing element of when people will have crest to it given the efficacy, does that change the conversation on stimulus i dont think it does in the near term. We still need that bridge over troubled water that we started to build as a nation in the spring and early summer, and the rug was pulled out from under so many where we need stimulus, i cant think of a state or any state that doesnt need it, so were talking about state and local budgets, folks who are unemployed, small businesses, especially restaurants and hospitality, Health Care Systems, transit systems, we need it, and i will just repeat what i have said to you guys before, history will not be unkind if we overshoot here. I think it will be potentially devastatingly unkind and the consequences enormous if we undershoot, even with a vaccine. Six months from now, if youre unemployed right now, that might as well be six years we need it still right now governor, this news about pfizers vaccine may be overtaking some other news that happened over the weekend that we wanted to ask you about, which is to say that we do have a new president projected, the president elect biden. How do you think that is going to fundamentally change, if it will at all, the calculus, both on covid and on our economy . I think it will change if for the good, and thats not to say we havent found Common Ground with the Trump Administration in our desperate hours of need. What we havent had is a coherent National Strategy and we will get that with a Biden Administration without question in fact, youre seeing it already. Hes announced a group of wise men and women already today that i think is the tip of the sphere as they say, and i think youll see a real belief in the good that stimulus can do to bridge our economies into a brighter, better day so i think its a huge plus on both covid, as well as the belief and passion around a big federal stimulus that, again, will connect us from a very tough time today, to that Better Future tomorrow. Governor murphy, we appreciate you being with us, and especially on this exciting day around what looks like a very positive moment in terms of this potential vaccine meantime, i want to bring you a statement president elect biden just putting out a statement about that Pfizer Vaccine news he said his advisers were informed about the effectiveness about the vaccine last night the statement says in part, it is important to understand that the end of this battle against covid19 is still months away. He said this is why the head o. Co. F the cdc warned for the fall, a mask remains a more potent weapon against the virus, then the vaccine. So providing a bit of context around where we are right now, but nonetheless, the markets quite hopeful, forward looking, and i think were all forward looking and hoping to get to that future as soon as possible. Joe. A lot of pride in the private sector and pfizer and you see moderna is up about 4 or 5 points, too, so its just good joining us to talk about the markets, and Economic Impact of pfizers news this morning, 90 effectiveness of its covid19 vaccine. Cnbc senior markets commentator, mike santoli, senior economics report reporter Steve Liesman joining us now the most significant thing youre seeing in your lane in terms of what this means for bonds and yields and the fed and stimulus and the economy and everything else. You got ten seconds. No, go ahead i think its higher rates, joe, and questions about how the fed will respond here, but also sort of echoing what governor murphy was talking about this makes me a little nervous shortterm i dont want to take away from the glory of the longterm outlook here, this is obviously great news but to the extent that you may not get stimulus, to the extent that there are still some 10 Million People that dont have work, and this would reduce the effort to help those folks, and also what happens with the state and local government financing it could be more trying times. The coronavirus right now is raging out of control, and you know, well all follow what meg says and pfizer says about this. Its a while until this vaccine gets out there obviously i dont think the market is wrong to be jubilant about the longer term prospects mike santoli, one of the things that struck me was when we were thinking about furloughed airline employees and a lot of the airlines said, okay, weve got it covered until x time, suddenly, a lot of the industries that need a bridge, that last week i just wondered whether they were gone for food, i think we can do the bridge now. I think theres an end where we dont have to write off the entire movie industry where you go out and see a movie or sports or cruise or whatever you want to talk about, hugging, meg said she got a little teary a lot of things we never thought were coming back can we survive can some of these industries, maybe restaurants in places. You might be able to get a loan now, if you said, look, i need if for three months, i need a term for this long it seems more manageable maybe. Thats what the market is essentially doing right now. Coming into this past weekend, a lot of companies, the array of probabilities for whether they could make it were not that hopeful, and right now you can pull forward that moment when you think youre going to have something close to more normal, keep yourself capitalized and make it through. So that really is the thrust of whats happening in the markets right now. Its sort of just moving to a different point on the probability spectrum of when we go back to normal. Also, its happening in the context of what was already a little bit of a tension release moment very typical dynamics, people clinch up, heading into the election or not being sure about how this covid was going to play out, and the stimulus vigil got people on edge we started in recent days to try and essentially release that tension. What that means is money flowing back people raising their equity exposures, and maybe youre going to get a more exuberant version of that coming on this news people think its an all clear we have the subtraction of all fears type moment happening today, and that probably gets overdone at some point its unable what why that is happening. The market has been willing and able to look out there beyond the immediate challenges and say were going to get something that helps the medical situation and its going to allow us to believe 2021 is a snap back year in a lot of ways. We got to go. Weve got a big guest coming up. A lot of conjecture that i was reading studying for todays show about what president elect biden is going deal with it said stimulus and the fed and jay powell, and continued fed supporting the market. Its not going to be all about fed support and we probably still need stimulus. We still need fed support, but we may have an underlying economy thats not firing on four cylinders not if it was a four cylinder car. If it was a v 8. Of course if its a tesla, it doesnt have those, but. Citi this morning talking about a new Economic Cycle in 2021 that is kind of propelled by the things youre talking about here it raises Big Questions for the fed. I think theyre still on hold but raises Big Questions for them, and youre right, a vaccine is the biggest economic thing that could happen to the country. Thinking about europe, its possible its possible, guys, its possible rome, oh, my god anyway, thank you, mike. Thank you, steve well see you guys if youre just waking up, markets are reacting to news that pfizers covid19 candidate shows more than 90 effective. Heres ceo Albert Bourla in the last hour. I believe this is likely the most significant medical advance in the last hundred years if you count the impact this will have in the health of the Public Health, global economy, et cetera, et cetera. So im happy that we have the whole pfizer machine, and of course biontech is our support Robert Johnson joins us now, the founder and chairman of rlg companies, and the founder of b. E. T. Network, and a cnbc contributor. Its great to see you, bob, thanks, for coming on this morning. Not all of your businesses would benefit from a return to normalcy just for as an american and human and business american, how are you feeling this morning about this news . This is great news, and its particularly great news for black americans. Because you well know black americans were disproportionately impacted by the covid virus because a lot of aft African Americans with a lack of health care and Health Services have preconditions, which maded covid19 virus doubly dangerous, and so for black americans to hear that theres a possible vaccine within several months or so has got to be something that is going to give them hope for the future combined with the Covid Vaccine, joe, you want to be healthy and well, but you want to be also economically growing and vibrant, and generating income and wealth for yourself and your family so i think that the country should focus on how the macro level, the Covid Vaccine is going to drive the economy for the same reason that blacks were disproportionately affected by lack of health care, theyre disproportionately affected by lack of access to capital. That should be a priority to go along with mobilizing the company for the vaccine. The incoming administration, Vice President elect biden needs to focus on bringing the black businesses that suffered dispo porti i think black americans are as joyous and they should be, as anybody in the country or the world. Right the very first, given that you would have to take care of to start doing that, is this, bob we can start going back and working on intransit sort of systemic problems that we have known about. You couldnt address those, really, when the virus was, you know, out of control so at this point, you know, youve got this arrow in the quiver, and what does it look like in practice well, joe, what it looks like in practice, im a fan of the old you can walk and chew gum at the same time. This is a great country. The innovation coming out of pfizer proves that, pfizer with the work in the midst of the depths of the pandemic, and i think the economic engine of the country with the right news can get to work during the beginning of a recovery from the pandemic. So one of the things that, joe, you know this as well as becky and andrew, that without access to capital, without access to money to invest, to grow your business, to hire employees, to complete, youre simply not going to be able to survive. I look for this country from an economic standpoint for black americans to begin to figure out ways to pump money into the pockets of black businesses and that means if it means that, for example, i think the fed could trade the notion of the tax policy in a pay that would encourage companies to invest in black businesses by giving them a deduction against any income that they might earn from that investment it used to be a program called the tax certificate, for example, where if a white Business Owner sold a business to an africanamerican, this was particularly in radio and media, that business person would receive a tax certificate, allowing them to deduction on the capital gains. What it did, it stimulated and encouraged white Business Owners to sell to minority businesses who didnt have all the necessary capital, but that tax certificate that gave the deduction in terms of the returns to the seller made the difference in the movement and increase in ownership of black media and radio in particular. Its those kind of innovative things that i think the government can look at, playing with tax policy, more than entitlement. Im a big believer in finding Business Solutions to social problems i have talked to you guys many times on the show about my efforts to reduce 401 k cash out through affordability. If the government were to encourage the large corporations and the Big Fund Managers like f fidelity and vanguard and others to move towards a nationwide, auto port ability regime, that is billions of dollars going into the pockets of low wage workers, black americans, hispanic, costing nothing to the taxpayers. Theres no tax transfer payment to make this happen. So im looking for one, innovation, movement of capital in the right places and the government to understand if youre going to solve the problem of health care, once health care is solved, economic care still remains a problem for black americans. What i hear and you can be more specific, bob, but what im hearing from you is youre not necessarily convinced that simply raises taxes to fund more transfer payments, especially in an environment that were in is necessarily the way to go, and before the election, you kind of made that point that you werent particularly thrilled about the notion of taxes going up, and as a result, im not sure you thought we needed to, at the time, you more or less said the devil you know, you knew what was likely and werent enthralled about rescinding the taxes. Are you saying restructure the system to make it add van to my knowledgeous to black businesses, rather than raise across the board and use transfer payments to handle inequality. I think transfer payments are good for people at the lowest rung of the ladder who are not likely to be able to achieve an Economic Growth just because of historic problems that theyve had. But transfer payments have the problem, joe, of creating a little bit of, you know, i guess id call it resentment or at least deep concern from those individuals who are paying the taxes that motivate the transfer payments my argument with this is deal with the tax code, because money, as you well know, goes to where its best treated. If companies and investors and banks were told that they have a hedge when they invest with the minority business, a start up of existing business, theyve got to be more comfortable in making a loan or an investment if they know theres some benefit back to them, not only the benefit of the company growing, but something that takes the risk off the table, and that risk coming off the table means that you get some tax from the government if youre willing to take a risk on start up businesses we do it in a lot of other industries duo we do it in defense, in other businesses, where the government encourages investments in these industries because of the overall longterm growthof the economy as a whole right and i think when you got 40 million black americans, where the Median Income for a black american is 17,000,the Median Income for a white family is 170,000, that as an axios article pointed out, thats a wealth gap or a wealth casm. It will not be closed by entitlement programs i dont care if you include in that a subsidized school, money in black banks, encouraging blacks to act as model citizens, none of these things are going to close that wealth gap until the flow is equalized between white americans, and black americans. Final thing i would say, this study pointed out that a white male with a High School Diploma has a 32 chance of becoming a millionaire than a black male with a masters degree and thats because the flow of capital tends to go to individuals who are part of a, what i call the deal flow of how cash is distributed in this economy. Black americans, black businesses are at the lowest rung of that deal flow, and unfortunately that gap consists and it will not be brought out by entitlement payments. Bob johnson, we appreciate your thoughts this morning well see you again soon hopefully. Andrew. We got so much, thanks, joe, weve got so much coming up this morning on the big news of the day, and potentially the year. Pfizers vaccine news. Former fda commissioner. Dr. Scott gottlieb is going to be back with us to walk through it stay tuned youre watching squawk on cnbc find a stock basedtech. On your interests or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. Pfizer ceo first on what is now the biggest story of the queer a year the pharma giant saying it may be more than 90 effective of preventing the coronavirus its a great day for science, a great day for humanity when you realize that your vaccine has a 90 effectiveness. Thats overwhelming, you understand that the hopes of billions of people and millions of businesses and hundreds of governments that were felt on our shoulders, now we can credibly tell them, i think we can see life at the end of the tunnel joining us right now on the squawk news line is former fda commissioner, cnbc contributor, dr. Scott gottlieb we should say he serves on the board of pfizer and illumina its great to have you back on the program, now that this news is public. You have been talking about various time lines for many months about when we might get a vaccine and what it looks like at scale how does this change the dynamic in your mind i think it doesnt necessarily change the time lines. The time lines we were talking about is predicated on a positive readout, which is what we were hoping for, and we had some reason to be optimistic based on the early data. I think what this does is affirm that a vaccine does seem possible this is a, you know, meaningful result, exceeds the expectation on the analysis. If the data holds up on the, i think its light at the end of the tunnel this is a key milestone in the effort to reduce death and disease from covid with our technology we have been saying for a long time since the opening days of the this crisis, we would ultimately be able to vanquish with our technology, and this is a critical step along that way, and i think really is light at the end of the tunnel if it holds, and we hope it will we need to keep in mind, i need to pause here. We have a hard stretch in front of us. We need to continue to keep Vulnerable People safe as we continue to get to a widely distributed vaccine. Keep wearing your mask in the meantime let me ask you this, were watching stocks flying here, especially those in the airline sector, travel sector, as you might imagine with the expectation, the markets expectation that a year out from now, things are, dare i say even back to normal will they be back to normal . Look, the time lines that we have talked about in terms of a vaccine being broadly available is that if you had positive data from one or more of these trials, a positive result on an interim analysis its 94 patients its a robust result, that you could have an eoa filing, a request for an emergency use authorization from the fda at some point later this month and it would take fda two or three weeks to turn around. Its so far a positive result based on both the safety and the efficacy of the vaccine. Its an early result its an interim result assuming youre able to file at the end of this month, and it will take fda two to four weeks to turn around an emergency use authorization, youre looking at some point, probably mid to late december having the vaccine commercially available the government said they would get the vaccine in supply chain. In terms of when it will be widely available in the supply chain, and we have very limited supply of the vaccine, but when that limited supply would be available in the supply chain youre probably looking at late december, and you would probably be then starting to vaccinate the initial traunch of patients eligible for the vaccine, and a select portion of the elderly population, at risk for the covid, the likely scenario you would be vaccinating them in early january to mid january take you two to three weeks to get through that population. Then you need a second dose. To get the full protective immunity you dont get a lot of immunity after the first dose you need the second dose in the case of pfizer, comes in three weeks, in the case of moderna, in four weeks now youre looking at probably late january, early february until the initial population, the full compliment of the initial population has the second dose of the vaccine, and then you need to wait a week or two until the full protective immunity kicks in. Sometimes youre looking at february and march i think if thats still the time line thats the time line we have been talking about maybe you accelerate it a little bit if you have very strong data you could file a little bit earlier perhaps. Fda will review it a little more quickly. Youre not going to shave months off of it. You might shave days or a week or two the time line holds. So what it means is that we need to get through the hardest stretch of this pandemic without the benefit of a vaccine the vaccine is really a 2021 event in terms of when its going to provide protective immunity in he dterms of when its widel available, you can have a vaccine broadly available, maybe the end of the Second Quarter, maybe into the Third Quarter, youre looking at having the vaccine available in time for the fall 2021 covid season i still believe that after we get through this pandemic, after we get through this acute phase of the pandemic over the next three or four months, well hopefully have a relatively quiet spring and summer. What youre going to want is a vaccine available in time for the fall covid season to protect against another epidemic next year. Dr. Gottlieb, we spoke with Albert Bourla, pfizers chairman and ceo, and he talked about how this is going to be distributed. Hes got plans with doses that he will provide to different governments. But do governments, lets say does the United States government have a plan for how this will roll out i know youll talk about how it goes to the elderly first, Front Line Health Care workers, is there a hard and set plan for how this will be distributed and who g who get it is . I want to make one point acknowledging just knnot just te patients and providers, but really the hard work of the company, and albert had a vision to try to do this, and really drove the company and invested enormous resources, pfizer resources in the development of this vaccine and a lot of folks throughout this crisis have been working literally nonstop to make this possible in terms of what the government is doing to distribute this, they have engineered a system, and this is going to be managed out of hhs in terms of making the supply available to the states but the states are ultimately going to manage a distribution way its going to work is they built a system in hhs that is effectively like an i. T. System, and once day get the authorization from fda lets say the fda authorizes there. Lets say fda says this is authorized for people 65 and above, who have one or more comorbidities. Thats the clinical language the fda would use, and acip is going to make a granular recommendation they make a recommendation on what should be in the Childhood Vaccination schedule theyll make a granular recommendation that might go beyond clinical criteria it might say Something Like the first people who should get this might be people in institutional settings like longterm care facilities and Nursing Homes theyll come out with their own relations and hhs will take that re recommendation, put it into their computer, and their computer is going to generate data on how many of the individuals who are now eligible with the vaccine live in each state, and every state will be apportioned a supply of the available vaccine based on those numbersment lets say theres only 10 million doses available, and these are hypothetical numbers. I want to give a generalization to illustrate the point and massachusettss has, you know, a Million People who fit the criteria, and massachusetts will get an allotment from the 10 million base on how many patients are in the state. Might not get a full million they will get a fraction of whats available, based on their population, relative to other states populations of the Eligible Group scott, so i dont know whether you were very confident in this technology, the proof of concept for putting in a strip of messenger rna and having body do his i dont know whether it opens up new vistas as a clinician, if you could introduce snips of genetic material is this better an adno mediated vaccines astrazeneca and j and j, that causes immunity based on the vector itself. 90 seems good i dont know why you would need anything other than what pfizer and moderna are doing at this point . Well, what i think this ultimately ushers in is the age of formulating synthetic vaccines this is really validation of the platform, and the reason we were able to get the vaccine constructs here so quickly across the board, not just with moderna, and pfizer but also j and j and astrazeneca and merck, is the gene sequence to derive a con construct. They didnt have to wait for the live virus to start deriving vaccine constructs based on the sequence data alone, so what it does is validate a platform that allows us to scale up a construct quickly. The notion with the adno, to deliver the epitope, the spike protein that the virus expresses is you can elicit a b cell and anti response but a t cell response you might get a more durable immunity, versus protein based which is likely to elicit an antibody response, unless you add to it, the early data in the moderna and Pfizer Vaccine, it was early data, this is a phase one, phase two day it, is it appeared to elicit a t cell response whether or not thats going to hold up in the full result, and whether or not thats going to impute a clinical benefit, provide a durable immunity we dont know. Were going to see that when we see the full data set, and we have the longterm follow up well have a sense of that it did at least initially seem to elicit a b cell and t cell response. Doctor, do you think that this, what appears to be fantastic news, should change Public Policy in terms of how were thinking about the balance between health, lives, death, and the economic implications for the country . Theres some commentary today right now about how people think about lock downs it was one thing to think about a lock down for a period of time, not having that light at the end of the tunnel, and saying, okay, if youre going to balance these things, we should maybe not have a lock down, but if you told me i could save these amount of lives today, knowing theres a light at the end of the tunnel, maybe that changes things does it . I think we need to remember that we have a brief, perhaps a brief but very hard stretch ahead of us. I think theres the potential were going to have one or more Vaccines Available in 2021, and 2021 will look different than 2020 we need to get through this period of time from a personalized and Public Health standpoint, we are to take this positive news and recogni recognize there may be a much Better Future ahead of us. We need a vaccine available, and do everything we can to continue to protect people vulnerable to this virus over a period of time recognizing it may be a brief period of time when we have a sense that this is indefinite and theres no clear end point, it becomes harder to make the sacrifices to make to protect yourself in that kind of a sort of framework. But recognizing that it may be a briefer period of time now because we do have vaccines have vaccines that are stating efficacy in early trials, hopefully people will have more of a willingness to make a shortterm willingness to protect the vulnerable populations. The people we talked about, the elderly. People with illness and people who are older and more vulnerable to this virus we need to get through this fall and this winter. How does that translate into policy i think when youre looking at it if you can have confidence in the result and confidence that you will have a vaccine available in 2021 does that translate into the ability maybe to endure a little bit more Economic Hardship right now over a brief period of time or use a little more Government Resources to individuals feeling an economic burden from this . I would hope it would on the margins influence that kind of behavior help back stop people who are hurt by this economically is going to be perhaps the last time we have to reach for stimulus, that might affect our ability and willingness to provide those kinds of resources. So, hopefully, as we accrue more data and not just from this vaccine but the moderna will read out this month or in december we have confidence well get to an end point here. Hey, dr. Gottlieb, we want to thank you for not only today but what youve been doing for the last seven and a half, eight months you make the point were not at end yet but can see potentially the light at the end of the tunnel and that is great, great news thank you for sheparding us through everything the last seven or eight months. Thanks, becky. Joining us right now with a personal stake in this fight to find a vaccine walter isaacson. Hes in the pfizer trial and also a professor at Tulane University and a cnbc contributor. Walter, i had no idea you were in this trial. What happened . When did you get it . What kind of side effects did you get, if anything i feel great and i feel great for the country and the world and for pfizer ive been writing a book about molecular biology and i was particularly interested in the rna type vaccines. At the end of july when pfizer was looking for volunteers to be part of the clinical trial, i just went online and signed up and i was in louisiana, which is a place they were signing people up and the next day i got a phone call and went to Oxford Hospital and it was an interesting process. Two doctors and their two female doctors and one looked me right in the eyes and just as the other one was about to jab me with a needle and the doctor said, no, keep looking me in the eyes and i said, why we dont want you to know whether youve gotten the placebo or the real vaccine. We dont want it to affect your behavior im not sure you can tell the difference, but we just want to be sure. I didnt have any major reaction to it but i keep on my phone, which you cant quite see every few days i keep a vaccine diary which gets sent in to pfizer so that they can tabulate results i was thinking of something i thought the needle was this long or whati thought you were going to say im glad thats not what you were talking about and like a thick one, like a garden hose. You wont feel a thing thats not it. No, no. Joe, you asked a really good question dr. Gottlieb, why it might be better than the deactivated vaccine that you described and theres such a cool thing about rna that i went to a lab and its easy to just, every time a new virus comes along. Well have new coronavirus not just that, not just that. Any protein product that someone has because of a genetic mutation that they dont produce naturally, if you can prove the proof of concept of inserting that little stretch of nuclaic acids, this has much more potential than just vaccines bingo not just vaccines and it is, by the way, the proof of content, we had it for a billion years. I mean, thats what it is bacteria know how to do this and thats what it does. It gets into the outer part of your cell with a code and it makes a protein. And anybody in a lab now can type up a sequence for whatever protein you want in this case a spike protein of the coronavirus. You create antibodies to it. But if you are missing and you have sickle cell amenia and other things and you need something created for you, having a messenger rna that somebody can gen up in a lab in an hour, it is a miracle of molecular biology. Walter, just really quickly you still dont know if you got the actual vaccine or just the placebo, right right we had to make a pledge that we would not try to find out. They did give us assurances you get the vaccine right away if you were in the placebo. Thats in order to make sure that people will join trials thats really cool. Walter, great talking to you a lot more to bring you back to talk about well have you back very soon. But, thank you, good to see you today. Hey, becky, good to be with all three of you take care andrew thanks, becky. Want to get over to cnbc headquarters and jim cramer rejoining us jim, were watching the markets, obviously, rock it the real question i think right now is you look at the stayathome stocks and travels and cyclicals, theyre succeeding being overdone one way or another at this point . Ill tell you, its interesting that the nasdaq futures are up so much that doesnt jive at all with the stocks and the nasdaq. You can figure out how many nasdaq stocks can rally on this and there are surprisingly few cloud stocks not beneficiaries of this and the very big run in companies that have done quite well when you cant leave your house. Theyre not good you have a couple stocks that are, obviously, related to biden and china. Those are good but its really the listed stocks i would feel much more comfortable buying an Airline Stock up 10 than i would buying a cloud stock down 5 . I think we have to be respectful of the fact that the futures, the nasdaq futures are just wrong. There is enough in the nasdaq to be up as much as the futures jim, can i ask you a question which is, you know, this is a very hopeful day and fabulous news for science and hopefully for humanity but in terms of timeline and we talked to dr. Scott gottlieb moments ago, the timeline hasnt changed in any drastic way in what the expectation was. We know the light at the tunnel might be really here in a way that maybe we didnt yesterday but the expectation, the way the market was betting was to some degree on this so, the question is, how much more do these stocks have to move one way or another . I think what i guess i would do is look at the way stocks trade. Stocks trade in anticipation of not there. If you want to wait until we all have a vaccine to buy southwest air, youll miss the whole move. Dr. Gottlieb is right about health care but not telling you, remember hed come on and say this is the time to buy American Airlines hes not that kind of guy. Hes right so much, its scary i cant believe that he directed National Health care through our network but i think you have to recognize that stocks well in advance anticipate this. And its not like were going to sit here and say, wow, january, so much longer were going to be saying the comparisons are so much better than they were it will be very easy watch mcdonalds they had great numbers, but i dont know if it is going to help jim, we will see you in a couple minutes want to get more of your analys analysis with the gang light reopen. We can only hope. Were reopening dont worry. That a boy. Good margaritas. Final check on the markets are up and definitely have a margarita later maybe. Up about almost 1,700 points on the dow. The nasdaq which for a while the dow was up sharply a lly and the nasdaq down because of the stayathome stocks not doing quite as well. S p up 150 if the dow opens at a certain level, you could see 30,000 on the dow today. Lets look at europe quickly see if theyre responding, as well and then oil and the ten year and we can end this on a positive note because i want to, i am not a hugger and maybe earlier i said we can go back to hugging. I dont remember saying it, but ive heard from a couple people that, im not talking about me personally im talking about people i might hug a little more than i used to. Ill give you the elbow elbow bump my daughter changed her life. Its really something that was missing for her to be able remember seinfeld said im not going to hug they wouldnt get on the elevator with him any more they got so mad i might hug. I might hug you guys we might be together again some day. Ill hug you back okay. Wear your mask. Well be back tomorrow. Good day squawk on the street is next good monday morning. Im Carl Quintanilla with jim cramer and david faber 90 efficacy and no serious safety concerns so far massive implications for stocks, oil, growth, the fed, the future of america at large. We are looking here. Take a look at the screen. You wont see many mornings like this one of the biggest gaps higher in recent memory, jim stocks with alltime highs in sight at the ope