Good morning, it is midnight in beijing its 11 00 a. M. On wall street and squawk alley is live. Good friday morning welcome to squawk alley. Im jon fortt with carl quintanilla. Its the end of cloud week on squawk alley. What a week its been. They have brought news on custom chips, Machine Learning and more sales force announced plans to buy slack for nearly 28 billion in the second largest Software Deal ever. Weve had ibm and microsoft weigh in snowflake and others have turned in blah earnings well hear from the ceo this hour what does it mean for investors already sky high investor malic noijoins us now i cant believe we never had you on squawk alley before i hope this is a trend i want to start with sales force slack. I know that you have known stu butterfield for a long time, even before flicker was a hit. You think this very expensive deal makes sense why . So lets remove the price out of the equation. I think what youre looking at right now is in 2020, we have gone from the idea
Basic terms of the phase one part of that deal. That is coming from the wall street journal, among other sources saying that the deal is not a finished or kaput deal at all. So well see how the market responds to that. Some mild positive reaction to all of that. The s p in record territory. The nasdaq in record territory. Both hit records yesterday. Any gain today is a record. Were following a couple of other developments. Well pursue it with the tiktok head of u. S. Policy on this giant move right now to find alternatives to how tiktok ultimately is or even if it will be sold off or kicking the companys tires. The president intrigued by that. He said he would support an oracle move. He said a couple weeks ago he said he would support a microsoft move for the company. Well speak to the novavax ceo on the latest vaccine trials. If you had gotten into this stock by the way at the beginning of the year, you would be up more than 2,000 but whos counting. Day three of the Democratic Convent
Going to prosecute. The governor calls these businesses selfish. President trump goes to pennsylvania on thursday and later on this program, we will have numbers from businesses in states that have allowed a partial reopening and ill tell you now, business is good. Moments from now, we have Shelly Luther with us. Shes the salon owner who went to jail for opening early, an American Hero on this program today. One hour from now, dr. Anthony fauci begins his virtual testimony before congress. Reportedly, he will say opening too early means needless suffering and death. The democrats will try to drive a wedge between dr. Fauci and the president. We will have, by the way, the latest on the explosive revelations coming out about what president obama was doing to instigate and set off the russia collusion mess. Turns out joe biden was in the key meeting. He was asked about it this morning. He did not have convincing answers. The status of joe bidens candidacy, the markets stunning recovery, o
Lets get into these results from samsung. What was the offer . Not as impressed as the shareholders are. They seem pretty impressed. I think there is a lot of concern they need to be aware of. First of all, the chip business really fell off a cliff. Operating profit really fell a lot. The other thing is the smartphone business had a good quarter. It was the secondhighest sale on record for that division. Incomecompare operating versus a couple of quarters ago, operating profit was a lot lower. Margins a lot worse than it had been in the past. They said themselves this quarter, the fourth quarter, they would see a deterioration, not only in shipments, but also a have bees. What they ship will be the cheaper phones. Not the flagship stuff they had in the first quarter. The cheaper stuff. Those are the landmines investors need to be worried about as we go into the next. Components are weak and their products are week as well. It definitely is downbeat, a column this morning. You sum up by
Of mainland chinese visitors who account for the majority of tourists in hong kong was down 42 percent in august every sector is affected skirting. The day you know before used to be like a good for the us from this but now its getting worse and worse so is probably if these things going on again and again for 5 months im going to have to close now most of them and bars and its not just the protests hurting business the ongoing us china trade war is also contributing mainland chinese visitors are spending less chinas currency the yuan has depreciated against the u. S. Dollar august retail sales where the worst on record the current outlook for hong kong is gloomy. Now to some of the other business stories making news south Korean Military is spraying the heavily armed border with north. Korea with disinfectant its part of a week long quarantine operation to prevent the spread of african swine fever officials have confirmed 2 new cases of the deadly virus said hog farms near the demilit