A day. Yesterday that was a big head wind as the market did get up the s p just to the cusp of those old highs. We did it without the help of technology, of the big Growth Stocks everyone is talking about this rotation the nasdaq has had yet another of its fairly routine pullbacks so far it has bounced to maintain this up trend today yes, tesla helping it, but really it is the old favorites as well, just picking up the slack and the s p is right back to yesterdays afternoon highs before we had that shake out going into the close. Julia, david faber mentioning last hour the passing of Sumner Redstone, a legend in the content world. Coin that phrase content is king. Has a bit of feeling the end of an era, of course, he lived well into his 90s but what are your thoughts on what a figure like Sumner Redstone meant in his prime and who is defining this era right now. Well, certainly, jon. He was the ultimate media mobile of that raera. He was responsible for the consolidation of so much content, so much of the distribution to consumers. And then, of course, he was responsible for the split of viacom and cbs, a dramatic move that said a lot about what was going on in that moment in time. In the sense these different assets would grow at different speeds now in retrospect, many would argue that he should have left those two companies together of course, cbs and viacom recombined viacom and cbs looking for that scale which is considered so crucial in the media space and notably, jon, well hear from one of the next generation of the ceos in this space jason kyler head of warner media and well hear from him later in the hour about whats going on there, the future of hbo max but just reflecting on Sumner Redstone and the opportunities i had to interview him really interesting in his persistent focus on content the idea that content is king and if you can get the content right, everything follows from that, jon. Speaking of content, well begin this morning with tiktok as the wall street journal reports that that company tracksed user data by employing a tactic banned by google. Several Tech Companies make a push to buy the u. S. Operations of that social media phenomenon ahead of a september 15th ban imposed of the Trump Administration former facebook chief Security Officer chris kelly joins us now on that. Chris, good morning. Good morning. So, whats your take on both the Security Risk posed by tiktok itself and the approach that the administration has taken to that. It seems either Company Specific or china specific and not Data Security specific. Well, yeah. The action that the administration has taken is on some level fairly outrageous actually you know, it is unprecedented. None of this has been done before on a content basis. And it was hard to understand the rational behind going after tiktok and then we chat together in this executive order and that kind of came out of the blue i think to a lot of folks. Now, why do you say outrageous a lot of people will say, hey, look at this story in the journal, look at their practices and look at the Chinese Governments policies. Lets be clear, there is a real risk here and Everybody Needs to know about that in the past, though, weve had sort of pretty wide open net that allows Chinese Companies to get to americans in some ways. But with notice and choice on the part of individuals. And if theyre a violation of platform guidelines there would be action against the various companies that may have individual that control the platform either apple or google on the mobile space, but to have the government step in in this, its an escalation of general trade war thats been going on and its it might be over r overblown in some ways but, let me be clear, there is a real risk of data flowing to the Chinese Government and the Chinese Communist party, and that should be a part of anything that an American Government takes action against. Chris, julia boor stin here tell me about the risk when were talking about the kind of data thats being collected by tiktok users, this is maybe other data on their phone, what is the data thats actually being collected and why is that such a risk . And i think that what youre seeing with the breaking story around their circumventing other security majors on the phones, that begins to get at whats dangerous. People look at is it really that dangerous if the Chinese Communist party knows that my renegade dance is bad . Probably not but if theyre obviously more data on the phones or if theres other activities i think you saw a number of American Companies and American Governments at a Sub National Level begin to be concerned about that and take action around it. Blanket ban might be the right way to go here and it might actually drive a deal that allows for tiktok and what originally came from bytdance musically to continue operating. Obviously american teenagers love that and teenagers around the world love it. But the risk factor may or may not be addressed by this fairly blunt instrument thats been used and when you think about what the potential is in terms of acquisition, do you feel like microsoft is necessarily the best one to address those privacy and security concerns . Or do you think that this is such a big challenge to unwind these two businesses the domestic business from the Chinese Business thats a challenge Microsoft Might not want to take on right now . It will be a huge challenge and theres no question about that the companies that operate at scale, including microsoft, have very sophisticated security infrastructures and understandings of how the platforms that they have run have been infiltrated in the past and attacked in the past. So it is almost imperative if a company is going to acquire tiktok that it be a Large Company that already has a lot of expertise in this area. Now, the complexity of unwinding the inner op ratability with the Chinese Service and tiktok emphasized repeatedly and we dont know if its sbhierly accurate that American American operations are served that are not inside china. That would have to be verified a whole bunch of things that need to go into how either they would prove what theyre doing but the ban in place, the clock is ticking theyre not going to continue operating a restriction order from the sifious is almost unchallengeable in the courts. They kind of need to do a deal microsoft does have the scale to do that. They indicated with their quick blog post about the deal that they are temporarily in the lead well see if others step up. You know, theres been all sorts of rumors and possibilities, but nothing really coming to clear fruition about alternatives. Yeah, chris i was going to ask you about the legal options. You say its almost unchallengeable at this point, there are been reports tiktok went through the administration to try to block or delay this order. If it were your job to make that case, you dont think its worth doing . I mean, i definitely think its worth trying to make the case or to plead for more time so that they can get a deal that works for consumers. But it is very difficult, my former law School Classmate did a very good job of on the law fair blog of explaining just how why this type of emergency power is so extensive and how hard it is to challenge in the courts. Chris, i want to go back to this Data Security policy issue. This is really the core issue for me its not about specific companies. Its not even just about china to me isnt the issue that the u. S. Government should say here is what you have to do to keep u. S. Data in the u. S. , if thats the policy, data center wise here is how were going to make sure that the data doesnt flow into other countries here is how well make sure that data doesnt flow to companies that shouldnt have their hands on it, a la cambridge analytica. Dont we need an underlying policy and set of rules and checks like this for every company no matter where theyre from and there has been a lot of progress made around the world over the last 20 years i think in coming to more standards across the globe and approaches to thinking about data and its flow. But it is this inherent flow that the internet creates that can cause the problem of awe her to tear yan governments being able to access this data and potentially misuse it against their citizens now, you know, there were a lot of strange false equivalents made at the beginning of the tiktok discussion around well dont facebook and google already have access to all this data and couldnt they misuse or couldnt the u. S. Government misuse it . In fact, one of the reasons that the Privacy Shield that we negotiated with the eu was overturned recently was because there are government access protocols in the u. S. That the eu has deemed inadequate what we need is a regime that allows for reasonable rule of lawbased government access to some information and to set that as a global standard and hopefully in some of the negotiations over what replaces the Privacy Shield, the u. S. And the eu can begin to do that now, thats a very different question u. S. And eu where you have general rule of law operating very well that you can have some confidence in the judiciary for limited access on warrantbase, you have to prove things up to a judge versus plenary access by a Chinese Communist party or another dictatorship elsewhere in the world russia for instance. Very, very different. Were hoping over time and companies when i was at facebook and as i shared previously on air im still a consultant to facebook on a number of these issues, that its important for there to be uniform regimes across the globe for ease of administrative ability. It will be a struggle and it will be hashed out the next 10, 20 years the more it moves towards a harmonized standard is better for citizens across the globe. Not a side project for microsoft, twitter or whoever might end up with this chris, thank you chris kelly, consultant to facebook and former facebook chief Security Officer cnbcs latest states of play survey out with some interesting numbers on covid19 and signs of inflation. Eamon javers breaks those numbers down for us. What were seeing is exactly all the different ways in which this virus is really dominating voters economic lives take a look at this chart and youll see that 66 of the voters that we survey, these are likely voters in swing states are saying that theyre experiencing higher prices for supplies 40 say they spent down their savings. And now here is one the middle bar in this bar graph is interesting because this puts cash back into voters pockets 36 say they received a rebate from their Car Insurance company. That does put more cash into circulation in the economy thats a positive for consumers. But 14 say theyve gone into debt as a result of the virus and 10 say theyve received unemployment so some tough numbers there. What about those Inflation Expectations well, theyre much, much higher now than they were earlier this year take a look at this. In march, 33 said they were seeing higher prices for supplies, but that spiked with the virus to 71 now its tailed off a little bit to about 66 of folks saying theyre seeing those higher prices out there in the economy. And then the feelings of the economy generally look at this chart, what you see is optimism really collapsed early on and started to come back in may only to slump again at the end of the summer generally thats not a good indication for the party in power. So now 34 say theyve got a good feeling about the economy, 43 say theyve got a good feeling about the economy for next year. So maybe theres a little bit more optimism around the corner than there is for right now. But you are seeing that economic expectation number start to slump again late in the summer as weve seen that virus continue to expand throughout the country, guys. Back over to you oh, thanks so much. Pretty striking numbers there. Very drawmatic in terms of the impact of covid. Coming up at the bottom of the hour, do not miss our exclusive with warner medias new ceo jason kilar. A big show with squawk alley continues next stay with us look here, its your very own allinone Entertainment Experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Major Drug Companies are now beginning to develop therapies for covid19 as the wait for a vaccine continues. Meg terrel explains. Reporter 44yearold jason barten had just returned to arizona from a family trip when he got a pounding headache testing revealed he and his whole family had the coronavirus. It was mostly just headaches 24 hours a day for two weeks straight barton entered a Clinical Trial of a new kind of drug to treat covid19. This is a class of drugs that works by getting people antibodies that will help fight the virus. Reporter in development from regeneron and eli lily, they have combined antibodies one it developed in its labs. The drugs are tested to treat the disease, a different kind of trial has started as well. Designed to see if they can prevent it in people who might have been exposed. Theres a lot of reason, a lot of evidence to suggest if you treat before infection for most of these diseases but including covid you can entirely prevent the infection. April stewart enrolled in one of the trials after her son was diagnosed with covid19. This whole thing is scary i was thankful that nobody else in my household had come down with covid reporter the prevention trials are run in partnership with the National Institute of allergy and Infectious Disease they are enrolling house mates of people with covid19 while eli lily goes to Nursing Homes that had outbreaks and guys, jason, that patient at the beginning did tell us he felt better a few days after entering the trial and april says she has not come down with covid19, but of course neither knows if they got the drug or the placebo in the trials. The results from these trials are expected within a few months guys yep important process. Thank you, meg and meanwhile, you can see shares of lemonade, thats the insurance tech provider falling this morning after reporting its first results as a public company. Well tell you why when the ceo th botr def the hesi o isreak stay with us at u. S. Money reserve. Weve helped hundreds of thousands choose the best precious medal for their retirement portfolios. And many are in profit positions today because of those choices. So, dont wait until the next crisis. Get started secure your financial future today. Recently, Congress Passed a bill that created a better solution. Its a new type of ira that allows you many of the same tax benefits of a traditional ira, but without the same types of exposure to market volatility, its called a selfdirected ira. Were talking about real solid physical gold just like the gold im holding in my hand. Securing your savings with gold or silver and a selfdirected ira is an easy way to protect your financial future. So you dont want to wait for the next market crash. Call and ask the experts at u. S. Money reserve to send you their free information package. Its full of everything that you need to know about Getting Started on your selfdirected ira today. Youll be glad you did. Shares of lemonade falling this morning in its first Quarterly Report since going public last month. The mobilebased Insurance Company posting better than expected results by guidance coming in short of street expecting. The ceo joins us to talk about the numbers and the outlook. Daniel, good to see you. Good morning. So, just to talk a little bit about what youre seeing in the business obviously the Second Quarter you had greater than 100 annual gains in revenues and premiums very modest, i have to say, short fall in revenue guidance relative to what the street was looking for on a small base. A million dollars, stock is down what are you seeing in terms of the pacing of business in this quarter, which of course is almost half done so, yeah. Q2 was a top line grew by over 1030 . Our gross profit grew by over 200 that was during the most dramatic quarter that weve had for so long because of the covid19 epidemic. We took a conservative stance early in the quarter and as we saw that actually all of our kpis Key Performance indicators conversion and demand and retention were all fabulous we reversed course. As we look forward to q3, we have a certain amount of uncertainty. The Third Quarter tends to be moving season. People because of the school year move a lot during the Third Quarter. And our caution was that we dont know how much of the moving that traditionally happens in 3 q3 will happen this year but so far i have to say the covid pandemic has enabled us to continue to grow very aggressively to