"squawk box" begins right now. good morning to "squawk box" becky is off today stephanie link is here for the hour she's a cnbc contributor. >> among other things. that's not -- that doesn't define her. >> it's her highest -- >> i'm most proud. >> highest ranking. >> good answer. >> take a look at u.s. equity futures. the dow looks like it would open off 9.5 points the s&p 500, we'll call it a little up, maybe a point up. the nasdaq looking to open 12 points up. we'll show you the ten-year. treasury yields at this moment

you can look at the ten-year note at 1.578. welcome back. >> thank you. >> to the east coast. >> it's warmer here. >> what was your score can you give us a brief update >> i maintained -- i stayed in the red. stayed in the red. my pro was even. but it was difficult for me to play >> it's a difficult game. >> difficult game to play well. >> it's hard to get up at 1:00 in the morning, do the show, and go play pebble in front of people they saw some things no one should see we'll talkabout something very serious. we'll get back to that because i want to tell you i saw one of our old friends. >> that's a good tease. >> jay z. >> did you >> i mean justin zuker i played with him and he made the cut. his short game -- he's a competitive person have you noticed that?

>> he is competitive. >> that's one thing we may talk about more you know who else is a cnbc contributor? dr. scott gottlieb, how excited are we we get to talk to him again. coronavirus, 910 people are dead that's making the outbreak deadlier than the sars outbreak. more than 40,000 people worldwide are now infected and the ripple effect is across the business landscape as well that's one of the things we cover. factories operated by foxconn, china's largest employer, and a major apple contractor remain closed today after chinese authorities rejected its proposal to resume operations citing fears over the outbreak and ailpylibaba is extending it hollywood and airbnb is

suspending bookings. the company says it will refund reservations and kia motors is suspending productions at its south korea plant due to plant shortages linked to the outbreak eunice yoon is monitoring the situation in beijing >> reporter: companies are dealing now with a conflicting tangle of policies that vary from province to province and city to city that for the most part are keeping a lot of factories closed most factories are being required to provide prevention measures and very strict one factories need to quarantine work that come in from other areas, so migrant workers, and source masks and googles for every sickle worker. after they have these restrictions in place they can apply to the local authorities

to reopen. some areas are also putting in outright production date delays as late as march 1st and that said, some factories did reopen today i was speaking to the folks over at ford today and they said that their plants have resumed operations though they are not running at full capacity tesla reopened its shanghai factory. the local media had spotted staff going into the facilities in a bus, wearing masks as well as all the security people there. chinese tech names being very cautious most are asking their staff to work from home at least for another week or two. and i think all of this shows the situation here is not going back to normal for quite some time >> thank you just be on the ground there, is there any feeling that we're

approaching what people are looking for in terms of the peak and then it starts to subside from there or are we still on an -- there's no way to know, i guess, is there? >> it's really -- it's really difficult to know because it's not as though the situation -- most people are focused on the situation in wuhan, the epicenter of the outbreak. the stories coming out of there sound even worse than before and so because the situation is so dire there, a lot of the focus has been on, you know, just how bad the spread is going to be. a lot of the -- over the weekend, a lot of hospitals were sending staff to wuhan to try to get a handle on the situation. there's also been a lot of concern about the communities outside of wuhan there's some smaller cities now that are getting badly infected. there's a lot of talk about lockdowns in these cities and

these cities don't have the infrastructure, the health care infrastructure that wuhan has. so, that's really worrying people about the spread of this virus. >> do we know how many people have left wuhan? i saw -- i don't know. i didn't go you into the article itself but a lot of people that have left, that are unaccounted for that may be all over china or in other parts of the world do we know that? >> well, we know what the mayor had said from wuhan. he said he believed 5 million people had left. so this was because of the lunar new year holiday and once they heard about the lockout. we know there are millions of people from wuhan who have been traveling around that's -- again, most are probably in china, but it's something worrying a lot of the people here because it's it's seen as so contagious.

>> i was amazed at how recent everything is. we're talking a matter of weeks and it sounds like we've been talking about it for a while you would hope when that 14-day incubation period is up, hopefully there are pockets of wuhan and krz coronavirus or there aren't >> i think what's concerning people here is it looks as though the virus is moving person to person there were reports in europe there could be a reports of a super spreader where -- there's a group of people in europe that looks like they became infected by a british national who was traveling to singapore and that none of them had actually gone to china so, because it seems to be jumping from human to human, we don't really know the extent of the spread in china. that's what people are worried about here, despite the fact that the government says things

are largely under control. president xi jinping was featured heavily in the state press tonight traveling around a hospital in beijing to show that china has the situation contained. >> eunice, thank you >> we're going to talk to dr. scott gottlieb if you have any questions, you have any questions or anybody have questions about the coronavirus, tweet them to us now @squawkcnbc. then at 6:50, dr. scott gottlieb will join us on set to answer some of ours and your questions. president trump set to unveil his budget. the white house budget includes dramatic spending cuts and rosy economic forecasts but it still won't be able to eliminate the nation's $1

trillion deficit for another sa years. the budget will officially be released today calling for $4.4 trillion spending dedeductions come from changes to social safety like s.n.a.p., medicaid and housing assistance that is less than the amount the white house made with lawmakers last year and already the administration is facing political blow back. john yarmouth said, quote, congress will stand firm against this president's broken promises and his disregard for the human costs of his destructive policies the white house is also forecasting an average of 3% gdp growth over the next 15 years. there are no new economic proposals in this budget but there is a $1.4 trillion placeholder for tax cuts 2.0.

>> thank you for that. we have a lot more on the budget in the 8:00 hour with acting omb russell voigt. history was made at the oscars, because i actually saw an hour of that before i retired early. i'm going to tell you about this and then make it all about me. south korea's "parasite" took top honor. first time a non-english film claimed the award. they also won best director, best screenplay and international film i was unable to do draft kings out in california. when i got back -- >> betting on the oscars. >> i bet on the oscars with my son's advice i was unable to figure out a parlay he wanted me to do best original screenplay and he wanted me to do -- everything he told me to down, including my bet on "parasites" for best picture >> you won. >> i won 3 to 1 odds.

if you but $25 on brad pitt winning best actor, guess how much you won 25 cents it's not a good bet. i did win 3 to 1 >> now you're going to get into the oscars, membermys -- >> if you can bet on it, i'll get into it. i'll even put up with the speeches about cow insemination, whatever i have some comments about this. netflix went into the night with the most nominations with 24 and won only two trophies. laura dern won for "marriage story" and american factory w won -- that has something to do with the obamas. >> it was fascinating. >> disney, cgi won four trophies i saw "the irishman" in the theaters and i wanted to see those four guys.

i liked it for 3 1/2 hours i liked it i thought it was good. now it's on netflix. i said, you know what, i'm going -- it's a saturday, i think i'm going to watch it again. i watch about a half hour and i said, i can't do this. >> it's a tough commitment. >> so, it came with a lot of fanfare, it's going to win everything by the time we got to the oscars, people -- it wasn't even in the running for best picture. >> it was too long. >> it's as long as a football game and people watch nothing -- >> i knew nothing was going to happen even when i wait till the end. >> we know it's bad for net flis fliction but on a net basis all the u.s. studios got blanked because "parasite" was not u.s. distributed. >> have you seen "parasite"? >> no. >> i have seen it. it is bonkers. it is. but did you -- while you were watching it, didn't you think, i

didn't expect this >> absolutely. >> this is crazy >> 100%. >> violent and knives -- it's nutso. >> i'm not crying for netflix. >> don't cry for argentina. >> don't cry for netflix. >> people are still holding it against them, though. >> people are less interesting -- fortunately or unfortunately in the oscars than they have ever been in their whole life >> it might have something to do with a bunch of high school dropouts lecturing us on crap they know nothing about might be one of the problems. >> i think it's about the movies anyway, let's check out this ad, though, that aired during last night's oscars the first look at samsung's new foldable fold phone. it appears to have a small screen on the exterior for things like notifications and a dual lens camera system. samsung expected to reveal more details at a product event tomorrow even has -- i don't know if you saw the little writing about it

is fold because there will always be a crease in the glass, which is not a problem, they say. but if you remember, was a problem for the flip phone the -- the flip tablet they used to have. more coming up we have l brands nearing a deal to sell flagship victoria's secret brand our big interview of the morning coming up at 8:00 a.m. it's an exclusive with wework chairman his first interview about all the headlines about wework and soft bank. do you have questions about the coronavirus outbreak but don't know who to ask? twit them to us right now @squawkcnbc. and dr. scott gottlieb will answer them later this hour.

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and voice for an amazing price. call today. comcast business. beyond fast. welcome back l brands nearing a deal to sell victoria's secret to sycamore partners people close to the deal tell cnbc it could be announced this week

wexner has been under mounting pressure because of his ties with jeff hi epstein and accused of creating a culture of misogyny and wlamed for the performance of the flagship brand and their transition -- or miss on the transition in terms of what would be appealing to their audience they're going through that transition right now what do you think? can victoria's secret be victoria's of yore >> by definition -- >> it was so massively -- the execution was terrible at the company. >> the bigger point if it's mysogynistic it's a different world you go become to the history of victoria's secret and it looks like it doesn't fit in 2020.

>> but it was so mismanaged. >> the stock is a different story. but miss universe pageant and everything else we look at with a different viewpoint at this point. >> i understand that but as an investor, there's a lot of money to be made. >> let's talk about that stephanie link owns -- you own shares of l brand. what did you buy >> i bought it a couple weeks ago. this stock was $100 stock in 2015 it was $61 in the beginning of 2018 it's lost a major amount of value because it's been mismanaged i bought it because i thought there were a couple ways you could win. either the management executes better or you have an activist in there, barrington, they would stir up the pot. they could do asset sales, split up this company. i have sumtive parts analysis that gets this to $32. from here i think it can still neighboring money. there's a lot of thibs they can

do that will have this stock win over the look term. >> don't you think there's a perception it's like a blockbuster or gamestop? it's in a business -- i mean, are you still going to buy things -- maybe you will if they sell victoria's secret, they still have bath & body works, which is the gem -- >> do they need to get a price for victoria's secret? >> i don't think so. the price gets you a $3 stock. >> which is super cheap. >> it's at a point to be a public company do ul think that will survive as a public instrument? >> they could. they've done a good job in terms of products innovation there's a lot in terms of inventory management that can help grow the earnings and you have the products, you have the

top line >> you've been -- we've never gone there, right? >> to? >> a bath & body works. >> not in a long time, no. >> can you get everything there they have -- totally different. >> totally different. >> we should check it out? >> check it out. >> on a rainy saturday. >> they have good candles, i think. >> a lot of candles. a lot of sniff, skin care, creams. >> i like that stuff. >> the gen z, they like that we have candles all over the place at my house. >> candles and moisturizer. >> gen z, white house that now >> they're teenager. >> actually, we need skin cream. >> they're doing facials and all that - >> that's all they do. they don't care about cosmetics. they care more about skin care which is why estee lauder posted a -- >> youth is wasted on the young, have you heard that? >> you've heard me say it.

>> i have. >> i'm not bitter. stephanie, thank you coming up, we'll talk to the reporter who made the call that soft bank was ready for an investor before -- before that was made public. woman: what gives me confidence about investment decisions? rigorous fundamental research. with portfolio managers focused on the long term. who look beyond the spreadsheets to understand companies, from breakroom to boardroom. who know the only way to get a 360 view is to go around the world to get it. can i rely on deep research to help make quality investment decisions? with capital group, i can. talk to your advisor or consultant

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welcome back to "squawk box. reuters reporter penned this piece -- wanted, bold activist to take on masayoshi son joining us is that very reporter who called for all of this and called it right. liam proud has every reason to be proud reporter for reuters breaking view good morning. >> thank you very much >> walk us through your thinking i'm even more curious about after you penned the piece if you got a call from anybody at elliott. >> basically there's two reasons i thought this was likely to happen the first is governance. softbank is run essentially by one person, masayoshi son. he has a big stake in the

company. he tends to make investment decisions on gut he likes to feel the force like jedi in star wars. that's not a typical thing activists like to see. you like to see accountability and the next thing was the valuation. this thing is worth $200 billion, $300 billion depending on how you count it but the stock market thinks it's worth $90 billion. >> did anybody at elliott call you after you wrote this piece >> i mean, i'm not supposed to talk about who i've spoken to on various on record or off record. we're constantly in conversation around this. >> sounds like somebody did call him. walk us through what do you think happens next in terms of the process, if there is one, and what can really happen here. >> i think the process has already started. my information is they've been having conversations for some months before this came public

they've actually been quite friendly conversations if you look at the two things that elliott is calling for, it's a big stock buyback masayoshi son has done that in the past and governance changes it's about being more clear, more transparent in the vision fund, how are you valuing that stuff, how do you get to those conclusions. i think you could probably come to an agreement on those basic principles. >> let's talk about the vision fund let's talk about the second vision fund because new reports out that that fund is more troubled than ever may even come in as half the price that they were even looking for and most of that money would come from softbank >> yeah. you know, they put out this statement around the middle of last year saying they were looking for $108 billion sequel to the first vision fund details about how they would get

there were scarce. we tried to run the numbers a few times based on they've known this bank, how much could they afford to give up. we couldn't get anywhere near the big numbers. it's not all together surprising but it doesn't make it any less embarrassing they don't seem like they're going to close that scale of fund. >> what's the relationship right now between masayoshi son and mbs given it's so much of the money? >> that's hard to tell you can speak to people in both companies and see how they're thinking about it but it's two powerful guys. you can say -- lots of reports come out saying people close to the public investment fund, the saudi fund, but ultimately mbs could just turn around and change on a dime this is the kind of power these people have. it's very hard to get a read unless you're in the room with those two people. >> we have to go do you think founders and other

startups are going to still take softbank money i don't know if you saw over the weekend, chamath went on a twitter tear about the mormon church money he thinks that foubders will have a whole new morality about money and who they take the money from and why they take money. we started this conversation -- it started with the saudis, frankly, but it felt like we're at a tipping point where this might actually move somewhere. >> i think they'll be okay it doesn't look like they have any more saudi money at the moment they spent most of the saudi money. to an extent that was going to be a problem it might be less of a problem. second of all, this he have the biggest fund in the world. i mean, if you're a startup founder and you think this is going to be a kind of winner takes all market you're in, if you have more money, you can outspend your competitor at the end of the day, that's the edge as long as they have loads of

cash, they should be able to find targeting >> liam, thank you appreciate it. also, programming note, we're going to talk to the coo of softbank and executive chairman at wework in an exclusive interview at 8:00 a.m. first time he's talked in a long time about all the things taking place at wework and, of course, at softbank. coming up, get ready for the week ahead on wall street. we'll have your squawk planner right after this break >> announcer: do you have questions about the coronavirus outbreak but don't know who to ask? tweet them to us right now @squawkcnbc. dr. scott gottlieb will answer them later this hour through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business.

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welcome back to "squawk box. take a look at u.s. equity futures at this hour we're off ten points on the dow but nasdaq looking to open higher, 12 points higher s&p 500 looking to open marginally higher as well. joe? time for this week's "squawk planner. tomorrow fed chair jay powell. do we really need this honestly two more days of this, congressional testimony? what are you going to say now? god, just let the economy run, would you? anyway, i'm not going to comment on that. but he will be talking for two days and we're going to cover it. >> it's the law. >> okay, fine, fine. santoli, that's not the answer we wanted but if we must, we must on thursday we'll get the latest read on inflation from the consumer price index on friday we'll fet a look at retail sales for the month of january. everybody that is in a cab in new york already knows this. >> what's that >> about the gasoline prices

because i already did the cab read i know what i'm going to say the average price of gasoline fell seven cents for your mini van. >> i paid $2.99 yesterday. >> did you drive 20 miles to get the $2.99? i've done that. >> no, but it was a lot. >> oh, it was a lot. i thought it was cheap. >> you think $2.99 is cheap? >> that's the national average. >> you think in new york $2.99 is a good deal >> yes. >> i was saying to my wife, do you think is a good deal because it's on the highway. sometimes on the highway i think they rip you off because there's nowhere to go. >> don't you get 93 octane for that silhouette -- is it an olds silhouette you're like danny devito that's the cadillac of mini vans. >> we don't have a mini van. we have a highlander i want you to know, the sorkin family is going to get a chrysler pacifica. >> i heard. >> i want you to know, they just came out -- they announced one

last week. >> how do you even know what that is. >> all wheel drive. >> vacuum cleaner. >> vak kul cleaner in it, moon roofs, all sorts of cool stuff, a new ten-inch screen in the front. >> do you care what color it is? >> i'm so thrilled - >> do they have a hybrid or electric >> they do make a hybrid i don't know if they make a hybrid with all wheel drive is the piece we were waiting for. the snow, east coast, that kind of thing u up in connecticut -- >> fls you get the hybrid you can't get the bumper sticker that says, i'm better than you or you >> it's still like a mini van. >> i know but we're thrilled about it. >> what color are you getting? >> i think we go straight black. you could do the grilles blacked out so you could look really cool. >> oh, boy >> you're usually on "the halftime report. you're looking around in disbelief. >> i'm thinking lower gas

prices, good for the consumer, i'm looking at my retile stocks. >> the new national average is -- you're paying way too much >> i'm getting ripped off by $2.99 a gallon. coming up, the oscars making history with "parasite" coming home like a horse for me 3 to 1 odds. way to go, scottie, who told me to do this we'll go through the biggest moments of the night and talk about which major studios came out on top that's next. i missed ricky gervais once they started, right out of the box, brad pitt had to start and later, senator marsha blackburn joins us to talk about the competition for 5g and huawei's role. you can listen to us live on the go on the cnbc app do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended

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welcome back to "squawk box. take a look at u.s. equity futures this hour. it's not too tch of a mixed picture. dow off by 2.5 points. >> we were down about 40 or 50. >> yeah. and the s&p 500 looks to open about a point higher fay a look at shares of tesla. they are uhm shap sharply as the

factory in shanghai set to resume production. we're looking at this stock up about 9%, up at $815. >> it's 23% off its high. >> you saw - >> it's all relative. >> you saw the piece in the journal about the short squeeze. >> yeah. >> those shorts are in a vice. >> $9 million. >> that's not enough - >> it's still 20% -- >> it's down to low teens now. >> but, you know, having been in the business, if you're -- stephanie, if you're long, you know it's going down, you dondon't like a stock but when you're in a stock and short and it goes up - >> it becomes a bigger part -- >> you can lose three times your money than just your money when it goes up and they know you have you on the run and it's a sickening feeling. if you've written naked calls and stock gets taken over. >> i think you have a lot --

>> all esg. >> i don't know if it's all. >> it's a lot. >> it is certainly -- that's the thing that's changed, say, in the last six months -- six to 12 months the cult stock for sure. >> teslarians, they all think they're right and they get mad if you even -- watch this. see my eye twitch when i talk about tesla. i'm going to get mad if you do that, you are one of the enemy and you need to hear from them because they have six shares of dtesla. anyway, "parasite" making history -- i'm going to make my joke how did "parasite" win when there was no host for the oscar? >> very good. >> "parasite" -- >> i'm laughing. i'm laughing there's a smile. >> fake smile. "parasite" won the oscar for best picture there was no host. no host -- >> i know that.

>> you can't have a parasite without a host it just sits there >> see. >> you didn't get it you did not get it you did not get it till now. you don't listen you did not get it until now give me a piece -- let me draw a picture for you. joining us now for a look at the other winners and losers and what the awards mean for the studio -- cynthia littleton was laughing >> she was laughing. >> "variety" business editor. >> i'm unable to hear. >> and cnbc contributor. there's different nuances here we talked about netflix. i think people -- voters don't like them -- >> you think they were voting against netflix more so than they were voting against hollywood? >> the hollywood status quo i think still doesn't -- not as much in this case but i think they could have won last year or the year before and they didn't.

>> usually with oscars they spread around the love, right? you sort of -- you get best screenplay here, best picture, you spread it around no, "parasite" out of nowhere. i've been told the odds -- they had some odds in favor of them. >> no, it was 3 to 1 and i won. >> you won >> did you see it yet? did you see "parasite" >> i did it's the only film i saw in the lineup i liked it i liked it okay? were you surprised - >> no, it was a very good movie. and it was surprising. and the topic, economic inequality and class warfare which some argue is the situation here swle. but in terms of studio and money. netflix spent $170 million to make "the irishman." they're moving into more prestige, high budget films. it's hard not to read that as

netflix got snubbed in some way. how much of it was netflix versus scorse. "marriage story" didn't really land in terms of where it was supposed to win either in terms of the - >> cynthia, are you okay are you hearing us now >> i can hear you. thank you. when you were watching, what really struck you last night >> i think what ed said, it really did strike me -- it's hard to see the results and not think there was a large body of people who were not like netflix and perhaps there was an element of trying too hard on netflix's part i think you saw some of that in the ground swell of sort of the -- the "parasite" story was a grassroots slow build of true admiration for a very unique and just a very innovative form of film making from a wildly fresh

voice. i think that was the kind of -- that was the kind of move hollywood wanted to get behind this year. >> i'm curious what you think about this, cynthia, since you cover this so much more closely. the oscars themselves, you know, it has changed, right? it used to be more the films that won, they were kind of big budget maybes. in the past decade it's shifted more to you have like "moonlight" winning a few years ago and "parasite" now so it seem -- i think "parasite" won at cannes and now best picture i don't think that's happened in decades in terms of a pomdore, the highest and the academy awards which is the box office cheered film i think the oscars itself has

changed. >> does it matter when you release the films? >> i think it's in the minds of academy voters usually the prestige, the ones you want to get rid of once voting in january, february, it's in their minds. i don't know how cynthia - >> one quick comment, cynthia? we're out of time. >> i think one issue for the oscars is there's so many award shows, by the time these people are collecting their prizes, we've heard from them. that's going to be a continued issue for them going forward >> this year they sped up the whole season. >> yeah, it was shortened. >> thank you both. thanks, ed thank you, cynthia i can tell you screenplay, hit screenplay and hit director, suddenly i was feeling really good. >> you had money on it. >> i didn't have nearly enough probably >> you keep changing the whole time. >> you can bet on the second half of these ncaa games.

coming up, when we return, you sents questions about the coronavirus. when we return, dr. gottlieb will jusoin for a rapid fire q&a session right after the brea legendary terrain in telluride,

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we asked you to tweet us your questions about the coronavirus and now we have the doctor in the house. and cnbc contributor we want to start with this question i keep hearing things about the limits of data collection. specifically the lack of enough testing kits have authorities already run up against that limit or is that still in the future. what are we doing to grow testing? >> in china they seem to be

limited and if you notice the reporting is pretty steady day-to-day so it appears that in wuhan, they do about 6,000 tests a day on specimen. so that means you send up with two or three specimen per patients that's why you have probably seen the 3,000 reporting 200 test kits to laboratories here in the united states. each can test 7 to 800 samples you might send in two or three samples. >> this is coming from a viewer. china reported coronavirus outbreaks of two weeks due to every day numbers. do you think they have contained the virus or too early to tell are there people on the ground in china to help them and give them more information? >> we don't have americans on

the ground as health officials i'm sure that we have people collecting intelligence. now singapore appears to have sustained community spread as well we're starting to see epidemics spread in other countries now. >> our third question, what is the likelihood of a pandemic here in the united states. people including myself are concerned that officials are not being completely truthful as not to hurt global markets. >> well, we're probably not at a pandemic yet that means epidemic spread in more than two continents we probably have transmission that we're not detecting certainly not thousands of cases but there's probably dozens of cases. >> does it transmit only through water droplets, cough, sneeze, surfaces or things like that or through the air? much talk about negative pressure rooms. >> the way this is transmitting is through touch people touching surfaces or having dirty hands and touching their face you have to be close to people to get aerosol transmission so

the best thing is keep your hands clean. >> is it possible for the virus to be transmitted by a good shipped from china. >> that's unlikely to survive on a surface long enough. it's probably hours and not days. >> if question that i heard over and over again this weekend including from some doctors, you know what, the flu is terrible, how much more terrible is this. >> i don't think it's a good comparison they're both bad this could be worse. the case fatality rate for the flu is .1. this might be as high as 1%. and the biggest concern is this looks highly contagious so the flu, the number of new cases for every case that you have is around 1.3 this might be as high as four but it's going to be between 2 and 3 and this could spread much more efficiently.

>> can we -- is there anything that we can use that really minimizes or stacks the deck in your favor that you're going to recover. >> i think we should be able to find an antiviral. >> the question is that if you introduce it and already has severe disease, you already have enough viral replication that simply that's a good therapy benefit. the inflammatory response has already taken over >> do you think we'll know more in a few days because of the 14 day incubation period is over? >> we'll start turning over the card on outbreaks toward the end of the month maybe in the next couple of weeks we'll start to detect it singapore has as many chinese travelers as the united states and they have sustained transmission so there's no reason to think we don't have introduction of cases

here that went undetected. >> thank you thank you very much. >> thank you. >> no. >> happy birthday. >> no. how did you know >> a little birdy told me. >> oh, it's jim cramer's birthday too. >> what sign. >> aquarius. >> all rhtig i consulted with your grandmother's doctor. we can do the screening at her house.

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businesses in china attempting to get back to work even as the coronavirus death toll climbs. market drivers, coronavirus, economic data and fed speak and presidential campaign season what should investors really pay attention to right now. >> plus our news maker of the morning. we works executive chairman will join us live the second hour of squawk box begins right now. good morning welcome back to squawk box on cnbc

i'm andrew ross sorkin along with joe becky is off today our guest host is liz young. she is back. thank you for being here a lot to talk about. and the market is opened upright now. earlier this morning down much more than that nasdaq looking to open 14 or 15 points higher and the s&p 500 looking to open a little over a point. >> among the headlines we're watching for this hour, president trump is going to unveil a $4.8 trillion proposal today. the plan increases military spending by .3% and it cuts spending by 5% the budget plan assumes tax cuts set to expire will be extended and economic growth will be faster than many economists have predicted. the number of coronavirus cases in china is well over 40,000

including 910 deaths that makes this outbreak deadlier than sars back in 2003 and it continues to slow or shutdown retail businesses and manufacturing in l brands shares are higher. sources tell cnbc that it is going to sell it's division to private equity partners and a deal could be announced as soon as this week. >> friday's jobs report makes it seem like the economy is booming and stock index levels back that up and growth numbers are coming down and the bond market is trading as if there is weakness ahead. steve joins us now with the real story. good morning, steve. >> good morning, mike. concerned about the coronavirus weighing on the outbreak of growth the equity market is not taking the threat as seriously as the bond market. a survey finds first quarter gdp forecast averaging down nearly a

point over the fourth quarter and with a modest bounce back in the second quarter the forecast from a low of 0.4 to a high of 2% for action economics. the downgrade comes importantly as the u.s. data has improved some what. especially business survey data and a blockbuster january jobs report it's the result of a downgrade to chinese growth along with a shutdown of production of the boeing 737 max bonds seem far more concerned than stocks. the ten year yield off almost 33 basis points since the beginning of the year. the s&p up jp morgan writing rate markets are sending warning signs creating renewed disconnect between rate and equity markets. chinese economic weakness will have limited repercussions for the rest of the world. it comes with a belief that the fed will act in january 2021 that might be propping up the

equity markets we'll hear from the fed chairman how realistic that outlook is. and i see how it's hard not to buy equities with the strong jobs market we had and all the other strong data we had really scary things immediately and they get out of the way long before. >> the general idea that the bond market is smarter than the equity market. >> how many yield curves have not resulted in recession. >> something like that, yeah the equity market. >> you would immediately go -- yield would go to zero

you think growth is going to go to zero and how many times do these pandemics become pandemics? they usually don't. >> there's only been one, right? >> in the middle of it we were really scared. i remember bird flu and sars what was the other >> the idea that was in that jp morgan quote there that there is a knock on effect from the shutdown of the industrial heart land of china that doesn't suggest apocalypse but some downdraft coming to either growth and or earnings that have not been priced in. >> this has made it worse. the coronavirus but how long is it >> it's heading up 193

>> it's a near term look. >> joining us now, it's a good name. >> you could pick that name if you didn't like your name. do you know what i mean? managing director of global market researchers, liz young director of market strategy. >> i was going to ask. >> not married. >> no. >> okay. >> awkward pause >> well, i am but not to liz >> bond market or stock market >> i agree the bond market has been castrophizing a little bit for the last year and a half or

so and it is true that the bond market is typically ahead of the stock market it's 150 above a lot so it's going to continue. it's not necessarily all fear driven if it doesn't validate that rate cut.

>> but it's a real time situation so they want to know what's the latest real time sense and we get that tomorrow within the entire global sample of markets, the u.s. market is a haven because it's got resilient growth and within the u.s. market the huge tech stocks that have been running the show for awhile are considered a haven within the stock market so if you look at what's been working it's the kind of stocks that maybe are more insulated or perceived to be more insulated from this macro threat coming out of asia. does that make sense >> it does make sense. that means valuations can go to the moon. >> that's a whole other argument that i am still kind of behind that just because tech has outperfo outperformed for a long-term doesn't mean that it's stopped

we have economic fundamentals behind us. we vernings fundamentals behind us and we had some pretty big pull backs and tech is still the best performing sector in the index. >> one thing that's interesting is its more of a cloud software. the hardware makers have supply chain risk so one thing that i would note late in the cycle you tend to get more of a momentum driven market there's more of buying things because they're going up right now i think we're still hooked up with fundamentals but we're starting to see signs of detaching from fundamentals a little bit tech is where the organic growth is especially on the software side but a name like microsoft, these things are all in the market. >> yeah. i heard about microsoft. it's that stock for every purpose. everyone loves it for their own reason it's now at a 20 year high. >> i just think the easy money is going to be in this market.

>> change your mind. and and morbidity rate and they never do it in the past. and it will make you concerned about the coronavirus. >> i think at this point so talking to scott in the green room, dozens of cases in new york city and i don't think that wasn't aware of that and i think the key is really the markets and it's the

production effects and the lack of supply exports and decline from that and i think the equity market gets that they just think whatever they lose now they'll pick up later the bigger risk is if it starts to hit u.s. economic activity and people start to travel and it's on the lenses of what this can do if you just had this. >> coronavirus or the jobs number. >> could it be the jobs number >> if there's distance between this idea of 50% probability of a rate cut and -- >> how often do they do it >> right here. >> it's accountability it's transparency. it's what we need. >> greenspan he deliberately didn't say anything. now it's all we do.

>> that didn't turn out that great for alan did it? >> we love him anyway. >> okay. didn't larry sommers and who is the other guy -- >> ruben. >> i want to thank alex liz and steve and when we come back why shares of tesla are popping this morning and then our news maker of the day, we works executive chairman is going to join us live to talk about that company and soft bank. first as we head to a break, don't forget to subscribe to our podcast squawk pod interviews, behind the scenes access and so much more. download it where ever you get yourodst pca stay tuned squawk returns right after this. for instance, we know how your customers shop. and what they've already purchased. like this lamp.

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welcome back tesla another 8% the stock has been on a wild ride reuters reports the company's in shanghai amid the coronavirus outbreak check out the article in the wall street journal entitled the

agony of the tesla bears $8.4 billion of losses in five weeks and i understand the vacuum cleaner in your pacifica but i don't understand why you don't go all in and buy one of those hatch back electric teslas or something. >> not big enough for the kids. >> not big enough. there's still draw backs. >> will you order a hybrid pacifica or a regular? >> i would i don't know if the new all wheel drive pacifica that we're in the model for comes in a hybrid model as well but if it did, if tesla did a mini vans we'd be all over it. i want to tell you. >> it's back to just the pitfalls of short selling. would they even recommend a position like that >> for tesla. >> selling anything. it's always a risky proposition.

>> i'm a strategist so it's more long and long-term we're typically a long only firm i think there's times when you can use it to hedge things out i don't know that i would be doing it on individual positions in a market like this. >> how much of what you see on the screen there is based on fundamental profitability prospects. >> we talked about that the last time too there was some short covering that happened there and it became this animal spirits thing and then the draw back, honestly the draw back made me feel a little better because it seemed healthier. we get back down to a more healthy level. there are so many expectations baked into the stock price at this point that the company really has to come through almost in a perfect way to live up to that so i think that we're going to continue to see some of this boom and bust kind of stuff.

>> the short position is basely more than one day's average volume now that's not relative to the amount of trade so it's clearly not the only thing going on. >> okay. we have a big deal. >> what? >> breaking this morning, simon property group is acquiring taubman centers. shares from an altered pending the announcement when i say this is big news in mall land, this is a massive transaction. not as massive as it used to be which is what i was going to say. it's massive to me selfishly because i covered this transaction back in 2002 to date myself when they tried to put the two companies together then and taubman said no way.

so here we are almost 20 years later and they probably should have just done it then. >> yeah. obvio obviously get bigger scale >> this should matter to you because this is the short hills mall this is a short hills mall for you. it's on the other side >> it's malls and low gas prices that's a good mall. >> do you remember, there was that movie, whenever sally field got down on hearse, she would just go out to the mall.

people would come and she would feel good about herself. >> you should try that. >> going there this weekend. >> i might have to. >> give yourself a little bit of an ego boost. >> are they doing better there's a lot of talk about it. >> almost as a novelty let's go hang at the mall. >> yeah. >> anyway, in mall land, this is huge because there will be some rationalization in some of this and that will be what is going to happen to all of that >> all right coming up, president trump set to unveil a $4.8 trillion budget proposal today we'll get reaction and futures right now hovering not too far from the front line. they continue to show a modest loss of less than 2 points for the s&p. at this moment, the nasdaq still slightly in e thgreen. you're watching squawk box on cnbc if they saw you on the street would your advisor recognize you?

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predicted. joining us now is marsha blackburn. she serves on the commerce committee. so the big question is if this were to take place do we really think that the world is or our country, the economic growth is faster than had been expected because i could make the opposite argument. >> i think what we do know is that the economy is growing that jobs growth is taking place and you look at places like ten and our economy is very robust and what it speaks to is good federal policies coupled with good stake policies is going to create the environment for jobs growth to continue. >> i didn't see you sitting here it's great to have you in studio >> good to be with you. >> i'm sorry. >> the case that the economy wasn't growing strongly. >> no, strong enough to war aren't the tax cuts.

so the tax cuts were based on this idea that we would have 3 plus percent economic growth. >> you know -- >> stipulate that that's what was said. >> but president trump did make a conscious decision in great political peril and there was a deal that's been done. use some of the good will from the tax cut to address some trading concerns. >> i understand. >> but on top of that you do have the stock market continues to hit new highs you have low employment across the board for a lot of different -- you have wage gains that have been better than ten years at the low end. >> correct. >> we didn't need you in here. do you want me to keep going >> listen i'm just loving hearing this i think it speaks to something that is vitally important. the federal government does not create jobs. the private sector creates jobs and what we have seen with the tax cuts and jobs act is

companies said get the federal government off our back and out of our pocketbook, this is what we can do. he delivered and the economy, the private sector is delivering and as i said, you couple good federal policy with good state and local policy and you're going to have robust growth. >> let me play the did he feevis advocate. >> no this is how you feel. >> running up massive deficits. >> from 9 to 18 trillion in the obama years? which ones are you talking about? >> a trillion dollars of debt under this -- >> at least we're getting something for it it's better than -- >> in this type of economy, most

economists would tell you should not be running up debts? >> why interest rate is too high. inflation is too high? >> you look at where we are and after cutting spending, federal spending absolutely i am and whether i was in state senate in tennessee or my entire time in d.c., i continued to would address our spending that is out of control and right size the federal government when you cut regulation and when you reduce litigation, when you lower taxization, what are you going to get innovation in the private sector and jobs growth. >> but you're not worried about the debt and the deficit at all. >> of course i'm worried about the deficit and the debt. >> would it be responsible to continue to extend the tax cuts if, in fact, you can't get

spending you want on the other end. it's a fundamental question. >> it's a fundamental question but it's not an either or. it's continue the growth -- >> if i told you were not going to be able to get the spending cuts, is it responsible then to extend the tax cuts? >> you have to eventually get the spending cuts. >> if you can't get them, what's the responsible thing to do then >> you go in and right size it it's irresponsible and i think it is immoral to pass on to our children and grand children the amount of debt that's there. >> that's why i'm so fascinated. >> that's why you need members that are going to say let's get in here and reduce some of this. here is a great example of mandatory spending and new ideas coming to the table of how to handle it.

the biggest of the entitlement programs we have is medicaid and now what are we working on in tennessee they're looking for a modified grant so that they can deliver and the public sector will be well served to make better use of the innovation and utilize technologies that are available in the private sector. >> that's the whole deal defense is off the table medicaid is not as big as social security and medicare. so it seems as if there's an idea that it's an easy fact to cut, maybe that's not the case anymore. >> not any of it is easy

it's like ronald reagan said, the closest thing to eternal life on earth is a federal government program. do these programs need it? absolutely not that's why i applaud tennessee where they're working together to get a modified approach on delivering medicaid services that's how you get the cost of delivery down. >> separate question for you, i don't know if you saw this, but senator ted cruise sent a letter to twitter did you see this >> there were, yes, there were four of us. >> asking for them to suspend the account. >> yes. >> what do you think of that >> there were four of us. >> you were part of this. >> that sent the letter. >> yes. >> so what was the inspiration for that and have they said anything to you about it

>> we have not gotten a response yet but we did send it because we think that as we have sanctioned individuals that it is importantfor them. >> we want to make sure that free speech is honored here in the u.s. but when the u.s. sanctions these leaders especially looking at the issues we think that's fully appropriate. >> so he sent a letter to jack dorsey saying i need to suspend his account. do you want to suspend it around the world or just in for access to citizens of the u.s. it is

appropriate for us to follow through on social media and other platforms. >> so interesting. okay well, senator thank you for coming in. >> great conversation. we appreciate it thank you. >> sure. >> are we going to run the besos jokes? did you see it last night? >> i saw the besos jokes. >> they were funny. >> do you want to tell them? >> i want to tell one. he's so rich that he writes a check and bounces and then he's so rich that he got divorced he is still the richest man in the world after you even cut it in half because he looked very uncomfortable. did he not >> i thought the other one was the marriage story. >> that was the third one. >> right. >> but i like that you write your check and it bounces. that's a good one. >> thank you, senator.

>> yes. >> thank you senator. >> speaking of really, really rich people, some might call it the bloomberg effect campaign ad spending soaring as democratic presidential hopefuls storm new hampshire today ahead of the primary in that state joe biden is like fifth. what happened? >> i don't know. >> it's unbelievable that full story is next. they're acquiring the owner of the short hills mall for $52 in cash and stock we'll be right back. how's the it department liking the now platform? every time it takes care of something for us, we celebrate. how often does that... got it. servicenow -the smarter way to workflow.

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we're good. >> how are you doing how much money are we talking. >> the $300 million ad spray has created a wind fall for local broadcasters that have seen the bloomberg effect last week bloomberg saying he will double his spending after iowa which could bring his total

to over $600 million much of that flowing to the three biggest local broadcasters $36 million so far they have 8 stations sinclair 13. next star and sinclair are also big in texas where bloomberg spent nearly 30 million and gray big in texas and the south now shares are up over 25% since news of bloomberg's run back in november wells fargo media analyst writing that broadcasters are quote jazzed to have bloomberg in the race. now he is projecting $3.5 billion in total ad spending this election cycle over 11% in 2016 and would set an all time new record bloomberg is also driving up ad rates for other candidates in local races. in north carolina rates jumped as much as 23% after a major bloomberg ad buy and in houston

they were up 45% a lot of these shows you can't get time because he has taken up all the inventory. >> they run them -- i have seen them where they run one after another. who is handling that for him they shouldn't do it just back to back to back. >> it's just so much money it's a flood. >> so don't the energy -- joining us now, we'll talk about the political angle but also we want to talk to the media angle. t does it make sense when the leader of the guy in the lead sanders and a lot of those are talking about getting big money out of politics and the guy that might end up as the nominee is doing it through spending. >> hubert:s -- through spending hundreds of millions of dollars? is that going to work for the core democrat constituentcy?

>> he is doing this to introduce himself to the american public we live in new york and we know him. this is a lot about educating especially the largest electorate the voters. >> forget about citizens united. >> i think it's about educating colder voters. >> so it's okay that these 17 people have been going to small towns for the last 2.5 years and he can come in and spend $300 million and become the nominee. >> we'll find out, huh >> what is it doing for the media landscape? >> we go through these periods of time where everyone gets really excited about something out of the ordinary and a seismic change all of a sudden tv advertising is not getting healthier more people are not watching tv. and the numbers are going to be helpful and then we're back to

the business of normal which is dramatic declines in live tv viewership and all the best shows are moving and if you watch the oscars last night, you saw a lot of hulu ads and you can see all the content are moving over to hulu. and the reality is this is sort of, in many ways this is like the last great election tv spend. i don't know if you're ever going to see what happens here again. the landscape is going to look a lot different. and you can be looking at something in the 60s it's going to be a very different world for advertising on tv in four years. >> i would agree with that in part but if you look at 2016 there was the expectation a lot of people then were saying this could be the last big ad buy structurally we're shifting to digital but you have citizens united in addition to that this huge

partisanship in the country and as much as digital is great and can be, in fact, more targeted, the dollar numbers just can't compare with what's going into broadcasting and no one is more data centric than bloomberg and it's almost 10-1 what he is putting in television versus digital. >> sure but someone like trump is also very data intensive and i think that part of it is the introduction phase there is sort of a -- he is in a different position if he had started earlier maybe he wouldn't be spending as much on tv as he is here. it feels a little bit like playing catch up and using the blast of tv to have that effect. it's always going to be hard to make an emotional attachment to somebody on digital. getting someone to watch a 30 second spot on digital is usually like five seconds on facebook and if you miss it it's gone so tv is still unique. your parent company comcast is launching peacock to try to bring an ad supported product

that actually has a place for advertisers because most of the on demand world has no ads that's the real challenge. candidates and any brand in this country faces is what does the future look like when there's so few places for ads it's the amount of spending that probably has to shift more and more to dimgal jugital just as number of eye balls that you can reach keeps dropping. >> is it having an unintentional negative effect on the other players in the party where it's raising ad spending for them and to get the same amount of time on a network, they have to pay that much more just because he's spending that much on it. >> it has to the simple infusion of the amount of money that he is spending has to be raising the ante for every single other play. >> and then if the intention is more negative advertising, right? more anti-trump advertising and less pro bloomberg advertising then is it actually hurting the democratic party >> you know, i think that's

impossible to know right now i guess it depends on who ends up actually being -- your question presupposes he's not going to be the nominee. i don't know who is going to ultimately be the nominee but it is a parallel campaign he has one campaign that's pro bloomberg and the other is an anti-trump this is a whole different level of spending we have never seen before it's not just bloomberg. it's the fact that trump has $100 million going into this and he didn't spend much in 2016. >> and look the digital world only gets bigger and bigger through the course of the next few months i expected digital warfare to get much more than what we're seeing right now this is just the beginning >> all right thanks, rich. >> coming up, we will have this morning's stock movers the names you need to know before the opening bell rings and you can always watch and listen to us live on the go on the cnbc app stay tuned

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let's start with shares down about 4% premarket the drug maker is taking a hit after it announced disappointing trial results for one of its alzheimer's treatments eli lily said while the trial didn't meet the main objectives layed out studies are still on going and it hoped to have a more complete review later on in the spring so shares are off by 5% you have shares of tesla up 8 to 9% roughly 472,000 shares of premarket volume some of that is positivity around reports that the shanghai government in china will help get it's on rags back -- operatk up and running as soon as possible there's also a speculative report saying there might be a acquisition of tesla and we'll end here on shares of fedex up 2% premarket on around 15,000 shares of volume.

the package delivery and cargo delivery company upgrade by analysts at ups and the target price goes to 187. it's 161 they think a combination of low investor expectations and improving cost structure in the express delivery unit will power the results. right here on squawk box we'll be back right after this break ♪ ♪ ♪ ♪ don't get mad. get e*trade, dawg.

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>> eunice joins us now with more a lot of factories are being asked to put in preventive measures coming from other areas. some localities are outright delaying the production date to as late as march 1st they're creating a lot of confusion. i was speaking to one factory owner that said that his industrial zone isn't allowing him to bring his employees into his factories and they live a couple of miles away

there have been several reports now of private shipments that were meant for factories being redirected to wuhan so he has no idea when he's going to reopen now there's also one important date to keep in mind and that was february 20th because a lot of chinese now are hoping to see a turning point. because it's two weeks from when most chinese had started traveling back to big cities in order to go back to work, guys >> yes were you able to watch >> i was. >> anything strike you about what the doctor had to say >> it was actually the conversation that you had about the incubation period and question about whether or not it would be a turning point the chinese are dating the

incubation period from february 7th as opposed to january 23rd when wuhan was under lock down and then, you know, so people are seeing this as the danger is that so many people now are traveling all over the country and that started on february 7th so in the big cities a lot of chinese are bracing for a surge in cases and then they are hoping that by february 20th we would see a die down of new confirmed cases and that that would mean that maybe there is a turning point with the spread. >> thanks you nice let's get to our next guest. david novak he is founder and ceo of a lot of dicfferent things he lead the parent company of taco bell and pizza hut through the sars outbreak in 2003 and the avian flu health scare in 2014 just from what you can tell at this point, do you think there's

a lot of similarities to those previous incidents or more differences? >> well, i think any time that you have a health crisis, joe, you know, the only way out is through. it's just going to take time we always looked at situations like this. obviously they're very distressing for everybody involved but we want to come out of a health crisis with an even stronger reputation as a company and, you know, for us in china, to your point, we have a lot of history. you know, with sars and avian flu and one of the things that history does is it allows you to do a couple of things. one, you learn from it so, you know, i think the companies in china, i know certainly yum brands, we have process and discipline around what really matters in a health crisis and, you know, which is everything from training employees on how to recognize

symptom and what to do compulsory hand washing and we started this thing called contactless delivery where our team members use gloves. they don't touch the food. everything to try to do whatever we can to protect our employees and protect customers and protect the shareholders but the other thing that i think history is good for is it reminds you that business has always bounced back after avian flu and sars, our business always bounced back stronger than ever as did, you know, china. so, you know, i think it's just a real challenging time for everyone involved but i know it's all hands on deck. >> can you just give us some insight into exactly what a ceo like you -- what did you do back there? when it first starts do you

convene a panel of people within the firm, without the firm you have a crisis meeting. how does it work what are the actual things that a ceo does at that point >> well, the first thing that we did is we immediately engaged outside experts so we would get somebody from the cdc to work with us. we would get medical doctors and establish our contacts with the world health organization and then we would form a cross functional team and we would get every function involved from supply chains to operation to finance and we would really layout exactly what has to happen and the more experience we had, the easier it was for us to really develop those protocols and put things in placement but, you have to communicate to all constituen constituents you have to communicate with your employees so they know exactly what to do one of the things that we have in china is we have operational

excellence and so that gives, you know, we have very trusted brands so our customers, if there's one place that you could potentially go to it would be kfc and have the best possible likelihood of successment and the other thing is that, you know, we would always try to go out of our way to make sure that we were serving the community. i heard last week for example the china team opened up kfcs in wuhan to serve food to the hospitals and doctor and nurses and patients just as a service you try to do what you can to do right by the customer. >> david, thank you. appreciate it this morning and hope to see you again soon on set. up next squawk box is coming back your cash is automatically invested at a great rate.

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breaking news on xerox dom joins us. >> here's what we have got the reason you're seeing a jump in hp shares from 7 to 8% right now is because xerox just

announced they're going to increase their offer to buy shares of hp from $24 a share. and somewhere around the date of march 2nd at this point. it will be $18.40 a share in cash and about almost, call it.149 of xerox shares for every hp share that works out to be roughly $24 a share. now xerox will say this offer is subject to the normal conditions about them getting at least half or more than half. a majority of outstanding shares of hp and this is one of those situations where xerox said they already met with multiple of hp's shareholders and large stockholders and they believe this is a better transaction for many of the people involved. just a reminder about this whole dynamic right now. this idea that xerox wants to buy hp hp expressed concerns about a

combination of the two the leverage and what this transaction will do but for right now the shares up by about 7% roughly 67,000 shares premarket. we'll bring you more as we know more here but that's the reason why the shares are up. back over to you guys. >> yeah. xerox is an $6 billion company. >> yeah and they just had earnings this past week. >> it's like a microcap. it's weird. >> well, maybe -- >> a mid cap. >> but it's xerox. it's been around and it used to be a real company at one time. it's not. >> it has big backers though. >> right. >> all right right now, let's get to the big interview we have been talking about all morning long andrew ross sorkin is standing by. >> we are at wework headquarters and we're with the executive chairman and also the coo of softbank and this is his first television interview in quite awhile, since i think you took

this role and, in fact, i think since you now have gotten this new ceo in place about a week and a half ago so thank you for being here. >> good to see you again. >> so much to talk about given what's happened with we work and where it's come and where it's going. i think the biggest question on people's minds is how you think you're going to make money doing this you have ten plus. maybe 15 with this it's now valued on the order of 7.9, $8 billion on the books people talked about this as a $40 plus billion valuation company. how does this work just walk us through the math. >> first wework is a sustainable business over the course of the last 100 days we put together a five year plan that includes looking at every single building and putting the financial forecast of every building and the five year plan is a great plan. it comes down to execution -- let me take a step back and tell

you how softbank looks at it first, it's an enormous market business is large. secondly we have a plan and i'll talk to you about it we have a plan that is quite important. sufficient between debt and equity and the plan is funded and we'll have an excess of 2.5 to $3 billion in excess liquidity. now when you ask about we work, basically a plan calls for us to be profitable by 2021. cash flow positive by 2022 and $1 billion of free cash by 2024. so we have it now come down to execution and we are going to have our first 1 billion quarter in 2020 and we're going to have a thousand this year so it's a large business it's competitive. >> in terms of the valuation, how do you get back into the money? >> well, you get back into the money by having a clear plan and start executing.

it's a huge inflection point everything is 50% better than last year and when you get to 2021 you're positive. >> in terms of valuation, multiple action one a big question is does it get a tech valuation? does it get a step up in terms of how it's being valued or is it effectively valued like every other real estate company? >> it's an underlying part of our business but this is a combination of technology, a combination of amazing buildings with great design. >> what's the comp >> it depends on the growth. all businesses are going to be on your ability to generate free cash i don't care if you're a tech business or real estate business and when you have a business today with a clear line of sight that will generate over a billion of high growth this will be a business that will provide a return toward initial

investment. >> let me ask you a question, this is from your boss back in november he said in the case of wework i made a mistake. i won't make any excuses it was a very harsh lessonment what was the lesson for you? what do you think the lesson was for him in terms of the investment and to the extent that you think it went wrong. >> maybe the lack of involvement in the business. we did a good job in terms of building a scale business. >> now we are a lot more involved with all of our businesses we have active board members in all of our businesses. this is a great business if you go, this is the only area that hasn't moved to an on demand business. today you can order it pretty much from your phone think about it other ways you can go to an office building. they want to ask you to sign the five year lease.

have to get a builder and all of that today you can go to your phone and go to an app and you can sign three month to six month and one year lease so this was the last part of the world in which the economy has to have an effect today you can see the growth there's very few businesses in the world. in this type of business where we have grown from 200 buildings in 2017. at the end of this year we're going to have over 1,000 building and these are large buildings. they house 1,000 people so therefore it's a great business. it's high growth our customers love it. it has a great brand so i could not be more in the future. >> did you talk to adam newman. >> rarely. >> rarely? >> not that much anymore. >> i mean, adam calls and he gives us his opinion. >> what does he think of all of this >> i think he's very excited he's very excited that the businesses transition in from, you know, high growth and most disciplined business with

accountability, with more mature leadership. >> i know that you have been asked this a lot especially by employees in this company but just speak to it -- i know that you tried to speak to it before, the idea of adam effectively walking away with more than a billion dollars after what felt like a massive failure in terms of the larger valuation company. >> right so adam hasn't walked away with over a billion dollars there's something on going now in which he'll have the right to participate with shareholders. he's a large shareholder of the company. he was a founder and buys shares from other shareholders. he's going to have the same opportunity as any other shareholder but to say that he has walked away with over a billion dollars is totally false. >> do you think you could have cut a different or better deal so that he at least optically these questions wouldn't exist >> i mean, i think it's easy to go back and say what would a

deal have been like. what we're seeing is softbank expresses an interest in owning a larger part of we work and adam is a large shareholder. so buy shares, he has an option to participate we have no idea how much he plans to sell and that's what people speculate of how much he can potentially walk away with but he walked away with a billion dollars. >> you just hired a new ceo. comes from the real estate world. does that change the culture of we work because -- and this goes to is this a tech company? is this a real estate company? is this something else >> first, we hire a leader, right? a great leader that has probably done well. the most amazing turnaround in the retail industry. gdp which as you know he took it from bankruptcy and tens of billions of dollars. that was the transformation. has a great culture and there's a lot that had to do with a lot of innovation in order to transform that retail business it's a very similar play here. so we have to get away from the

tech business and real estate business we work have it's own space. it's a uniquecompany. >> it's something that elevates it to the extent that it's not a real estate business there wasn't this special cultural sauce that was layered on top that actually created that excitement and to the extent created a higher valuation. >> the excitement doesn't change all you have to do is go to the building and when you find the combination of amazing real estate with amazing design with technology and with community, that's a special place for we work it's not your traditional real estate but this is a service company. and focus on doing your job and then let everything else by we work. >> long-term you can have more leases and you can have other people and you're going to be servicing other people's leases. what do you think this looks like >> we had a thousand there's nobody in the world that

has it today all over the world in 140 cities. you know, i think over 37 countries. you have a lot you can be a we work member in boston and then be able to, woman standing. >> do you want to have less overtime >> not necessarily we have to make sure that we on board the buildings. that the 1,000 buildings we have are profitable and doing a good job. we might do more management deals. we're talking about potentially doing franchising and we're going to continue to open new buildings in great cities the same type of business that we have it is a business that generates cash and it's a business that's profitab profitable. >> coronavirus you have a number, i think 100 different we works in china. what's happen right now? >> we are first wanting to make sure that no members and no employees are infected and that's great to be following the guidelines of the chinese government. we have them monitoring and with

the chinese government to make sure that we're following the proper guidelines. so that's for us but it's just an area of concern having members not having access to it and just working with emergency personnel. it's an issue. >> let me ask about soft bank. >> sure. >> and specifically, the second vision fund. there have been reports that it has been very hard to raise new money for that fund and that instead of $108 billion fund it might come in and the majority of that money is going to be soft bank money and not outside investor money what can you say about the state of that fund-raising effort? >> one it's too early. you have to put things in p perspecti perspective. that was $100 billion two years. it had never been done so now, this starts to finish and then we're looking at how we're going to do. obviously performance and start getting away from the media and

the craziness and all of that. and we feel good that we have a plan for we work you start seeing that uber was a good investment. ride sharing has an incredible amount of potential and we work has a plan you're going to see that potentially, the additional vision fund are going to come along. but you know when we launch the first $100 billion fund it was supposed to last. >> this strategist is shifting do you think there's a major strategy shift in terms of soft bank and his own thinking in terms of growth at any cost versus trying to get to profitability much quicker and what that means? it also means about the outside valuations that i think he has thought about as a long-term investment. >> well, i don't think it's neff been growth at any cost. that's misconception

we like accelerated growth we like companies that can take a lot of market share and we like companies with profitability and cash flow. you have to look at the entire track record of soft bank. >> there's been conversations over the past couple of months with portfolio companies that said okay guys, i know that we said put your foot on the gas but maybe we have to put our foot on the break. >> i would say decelerate but nothing has changed in terms of we believe there's certain companies and entrepreneurs that have developed a business model that you can accelerate the growth what i think we're a little bit confused is everybody is saying oh my god, this vision fund performance is terrible. it's great you have had 8 ipos. the value that has been generated, most of the funds, their values are still on paper.

we turn money and at the same time, its been uber. guess what, you're following uber we have a tremendous amount of good views and what's going to happen the second was rework. we have a clear plan on how to take it. >> what about this idea of paper based valuation. part of the issue is the idea that effectively there was this artificial valuation of $47 billion in part because it put much in after it's own money so how accurate are all of the marks in the soft bank funds. >> it's very accurate. you have to look with a move open down value in many cases. the only deference is because we're a publicly traded company we get to report on that most don't have the problem. they have to report on a quarterly basis on what is happening to their mark ups and all of that. i think we are con seservative

today. every valuation is done by independent third party and they're based on the traditional methodology in which you value companies. >> he pushed people around what is the relationship like now that he has a take in that company and is calling for changes? >> start and since day one you wear

multiple hats. the mobile deal, we're still waiting on the judge when do you think we're getting here >> it's been two years and incredible resilience for this time. it's up to the judge right now, he has all he needs to make it respect the decision to come any time but there again he can take his time

>> okay, thank you for joining us great to see you. >> guys, back to you. >> president trump is set to roll out an expected $4.8 trillion budget for 2021 later today. just a few minutes ago we saw the next chapter in a well established tradition, the budget books were delivered to capital hill here now is a preview of the president's budget acting office of management and budget director. a lot of this is done in a way where we go about our motions but we know this is not going to pass congress. >> it's unfortunate that we have a congress that has not

considered it in the last 15 years. it includes more deficit reduction. $4.6 trillion than any president in history we do need congress to pass the budgets to be able to begin to make progress with regard to trillion dollar deficits but we have to get after the work we probably need to have a national election in between it but this is where the president's proposals are and we believe we can make a big dent and get back into the realm of fiscal responsibility. >> when i spoke to the president this year in davos, russ, i asked him about entitlement reform and medicare and social security and he said that it's something that he would look at if he was reelected in terms of how to fix it and make it more sustainable. and at this point the unfunded liabilities are something that we're going to have to deal with but then again in a speech recently said the state of the e union, he'll never touch

medicare or social security. >> what do you think he's willing to do there? >> he's been very clear in this budget and it protects medicare beneficiaries. it does try to find good government reforms. and the ladder of economic opportunity. it saves taxpayer money. >> we know how much we're going to spend no matter what and unless we do something some day, either with means testing or, i don't know, some type of reform to entitlements it's not going

to get under control am i wrong on hat? >> part of that projection of going to a balance comes from the fact that you project 3% annual gdp growth over that span we haven't had that consistently in quite sometime. most private sector projections don't come near that and one would exapproximate epect you'd recession. how do you come to the numbers >> again, this is a post policy budget so it assumes the enactment of our policies we need to be able to get our trade deals done and not have them sit for a year until they're signed into law.

but we believe 3% is entirely possible to be able to hit in the next ten years. >> the age old guns versus butter debate that we have had for forever, it looks like .3% increase in defense spending and then you'll hear from democrats and othersthat the rebuild was necessary when this president came to office and this would be the 4th year of high levels of defense spending $741 billion in that $741 billion is a 20% increase for nuclear modernization and the important

work done at the department of energy so look we prioritize the defenses of this country that president and commander in chief believe is absolutely vital and at the same time we believe that it's necessary to have restraint on nondefense spending 21% reduction for foreign aid. we believe that the era of spending money for bob dylan statute or professional critic league in afghanistan those days are over and we need to get on defense discretionary. >> we provide an extension of the tax cuts about $1.4 trillion is allocated for the next discussion so we believe that we have an ample amount even within the fiscal path to get to balance to be

able to have that conversation when would we see us come back below a trillion dollars in terms of running deficits and then hit balance in the 15th year. >> the chances that it looks anything like this or what do you think? >> i'm not a prognosticat or bu we need to pass budgets if we're going to reduce the deficit in this country. >> we appreciate your time today. >> coming up, more on the coronavirus. quarentined at sea a live interview with an american stranded on board the

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coming up, two views of the coronavirus scare. a live interview with a passenger quarentined on a cruiseship and the fall out for apple as a company and as an

investment in the news that a key chinese partner may not be able to resume production as quickly as eecd.xpte stay tuned you're watching squawk box on cnbc at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪

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we were down 70 and now we're down 30 again. they'll buy rival taubman for 52-50 a share in cash. it's about $3.6 billion. it will continue to be managed by the existing executive team and l brands shares are higher in premarket trading sources telling cnbc companies near a deal to sell it's victoria's secret division to private equity firm sycamore partners a deal could be announced as soon as this week. looks like we're getting matt smith ready. he's on that cruise ship we're going to skype with him in just a moment. i guess that we're checking the shot and the razor maker,

edgewell personal care is calling off it's deal to buy rival harrys that comes after the ftc moved to block the deal. edgewell says it disagrees with the decision but will move ahead as a stand alone company however harry's is responding by suing edgewell for terminating the deal. >> the market seems to like the non-deal now an update on how the spreading coronavirus is impacting america's most valuable company josh joins us now with fast moving developments on apple good morning, josh. >> mike, conflicting headlines this morning really on apple supply chain in china. now it does appear that the largest manufacturer of apple devices will have closures extended reuters is saying that the key china plant got the green light to resume production and only 10% of the work force actually returned and another facility remains shuttered. china is a key link in apple's supply chain

nearly 15% of its manufacturing and supply locations are in that country. so what does this all mean for supply well, earlier this month, well-known apple analyst estimated that for the current quarter apple would ship 10% fewer iphones than initially projected and there's now reports that the expected new low cost iphone model could be delayed. also saying that q-2 shipments are hard to predict at this point. china is also a critical consumer market for the company. remember apple operates 42 stores there but now the company is extended store closures and importantly apple does say that it's online store remains open there. all of this uncertainty is why tim cook aware of just how fluid this situation is recently offered investors wider than usual guidance guys, back to you. >> josh. move on to eunice now. 910 people have now died from the coronavirus making it deadlier than the sars outbreak in 2003. more than 40,000 cases have been confirmed around the world

eunice joins us now and after we speak we're going to actually talk to an individual on the cruiseship with us so -- >> i'll be sure to listen in. >> yeah. it should be interesting the -- here in china the whole country really struggled to get back to work today a lot of manufacturers are grappling with new types of requirements that vary province to province and city to city most are being required to put in place very extensive prevention measures and that would include for example to quarentine workers coming from other areas. some localities have also just outright delayed their production dates to as late as mar march 1st and they're creating a lot of confusion i was speaking to one factory owner and he said that his localer government said he can't reopen until he gets permission

but then he wasn't clear as to what documents he had to provide and then another factory boss who i spoke to said that he has a shipment of masks sitting at the port in hong kong and he doesn't know when he's going to be able to bring it in because there's been several reports now that private shipments of masks have been redirected to wuhan. so he doesn't know when he's going to be able to reopen s a a lot of chinese tech names have been very cautious and that gets to the date that a lot of chinese are looking at right now which is february 20th because that would mark the end of a 14 day incubation period from february 7th which was when much of the country started to get back to work and travel to the big cities, guys. >> okay. eunice, thank you. the coronavirus has now also

struck a princess cruise ship with more than 3,700 passengers and crew on board. it's currently quarentined in the japanese port of yokahama and earlier today an additional 66 cases from the ship including 11 people that are from the united states. that brings the total number of cases to more than 130 with many having already left the ship for medical facilities joining us now is matthew smith. matthew is stuck on board the diamond princess with his wife you got wind of this before the quarentine and on the last day of the cruise you stayed in your cabin and in your state room i understand it's a suite and you have been there situation more days quarentined is that the chronology is that correct? >> basically we stayed one day just enjoying the cabin for the last day of the cruise the next day we were in the

cabin waiting to be and temperature and seven days total. and some of those state rooms are pretty confining and what is it like being there and are people coming to bring you, you know, food, et cetera and how uncomfortable have you been >> well, because of the nature of the accommodation we had, i have to say we have been i'm sure more comfortable than most on board we have travelled in an interior state room or cabin before and we have nothing but huge sympathy for the people who are in that situation now on quarentine because that's quite close quarters

my wife said to someone else she said imagine being trapped in your bathroom and that would give you kind of an idea of that we are -- our interaction with the crew, they come by three times a day for meals and then there's various things throughout the day this evening, they delivered some prescription medication for the first time they have come by with bottled water. do you feel like the people in charge have this under control for you? do you have a good feeling for a favorable outcome? i guess that you're hopeful. >> we are. i personally believe it's very well getting us into quarentine and

basically keeping us in the cabin as much as practical the circumstances. i mean, only people that have been letting me in small groups to get some air which is obviously necessary but i recognize the situation both the ship and the japanese health officials were put in and i'm maintaining my confidence that they're going to conclude at the end of the time if we're nonsymptomatic that we don't pose a risk and that we'll be able to leave after the 14 days. but sometimes you get to think when you look at how many days remain it can be a little bit depressing >> i can imagine. >> i can imagine that but then again counter factual what could have happened. but you'd say the response to this as doing very well as well as could be expected in what is

a very daunting situation i would say. they had no plans in place for and in this space of a little more than a day. they got the food service organized. we have menu choices for lunch and dinner they have been providing us with sodas and called up and got some sparkling water for my wife tonight and the captain is just, you can tell, he is so trying to really provide for the passengers on his vessel. >> imagine, 3,600 people that the crew is trying to keep mentally and physically healthy. anyway, matthew smith we appreciate your time and obviously god speed and we wish you luck and are really hoping

and praying for a favorable outcome for everybody on board thanks again. >> thank you. >> you're welcome. >> coming up, what to watch ahead of the open on wall street the futures have softened up a little bit you can see the dow down 47. s&p down a couple of points right now. nasdaq around the front line elgol be joined by charlie mclitt you're watching squawk box on cnbc

welcome back to squawk box welcome back andrew. right there. welcome back. >> thank you. >> nice to see you. >> good to have you back great job. how was that >> very close. they're just down in chelsea >> how did that -- how did you do that? what did you do? >> jumped in that car and went down 7th avenue jumped out of the car and went upstairs. >> all right let's take a look at the futures right now. futures are indicated down about 43 or so 44 points. s&p down a little over 2 in the nasdaq basically unchanged did you see -- did you hear about that xerox >> i did >> that's what i thought

okay >> do you have anything to add >> could you have made some calls. >> i'll make some calls right now. >> meantime, microsoft vying to become the biggest market cap company in america and it's the most beloved stock and we're trying to figure out if there's one. mike is over with more. >> a big question right now. not only -- so basically the way the microsoft and apple are now trading premarket it looks as if microsoft will eclipse it exemplifies the position that microsoft had in the market for awhile now it accounts for about 1/8 of the s&p rise over the last 12 months or so. it's more overbought than it's been since late 2009 on a technical basis. it encapsulates everything that the market loves right now secular growth and cloud services long-term cash flow

growth and all of that stuff wrapped into $1.4 trillion bundle right now and the question is is the market just crowding into microsoft? also by the way, very low china exposure so all of these things working together makes you at least ask the question if it's getting a little bit overheated, overextended and what that might mean for the broader markets, guys. >> thank you mr. santoli our next guest was spot on when he called january's reversal and after that a mini reversal of the reversal now investors need to be prepared for really wild stuff in february. and i never know how to produce it mcelligot. >> it's shockingly phonetic. >> dynasty. >> what is it? >> nothing. >> so what is a reversal mean? that february is going to be wild. >> yeah. so when i was last year at the end of december --

>> right. >> this entire market you need to have a view on interest rates whether you realize that or not as an equities investor. late december, remarkably because it seems so polar period sit from where we were mentally sentiment wise right now was very much this view of a post china phase one relief route and the curve was steepening and you finally got that big cyclicals and value stock rotation because bonds were selling off my call in january then was that there was no true sticky secular inflationary catalyst. it was a big seasonality for treasuries in january and then particularly in the factor world of equities there is a major rebalancing impulse the first month of the year in january that would feedback into that.

and short the cyclicals. that's exactly what you got. >> what's going to happen in february then? >> so give me the i inquirity story in february. >> i think there's a big up trade to be had in the next two weeks actually certainly potential for a pretty strong impulse that is tied to options positioning. right now, we are certainly in a band right now both within the rate space and within equities where if i look at the amount of bonds it's a hedging construct for options market makers and there's about four billion dollars with the 3,300 strike which is about 25 handles below here in s&p and it's about 6 billion at 3350 and another 5 billion up. >> for those of our viewers that aren't pros action options market makers are short options generally speaking to the down

side. >> okay. >> and generally speaking their long options to the upside right now, though, we're short the wings. right? there's a lot of fear out there in regards to the on going slow down and story economic impact. impact, so dealers are short downside which could create ironically with all of this hedging they have to do to be short the downside if they have to short futures, that creates a potential pull, where into expiration next week if the shorts, if all the downside hedges in the market don't trigger and dealers are long all of this crash protection, this crash protection is going to start decaying, and they have to puke out of that stuff and that causes a slingshot higher. >> that's a two-week story >> two weeks out >> that's a technical story. >> yep, that's a two-week story. to me right now, why the reversal of the reversal worked innen ja, the opposite of that

december reflation trade back into momentum, back into tech stocks, back into defensive leaderships and you see energy get hammered again that's the pure story to me that's the one year out trade that there is no core deep reflationary catalyst in the global economy, in the absence of large scale fiscal stimulus fiscal stimulus is going to be a political story that could be a dynamic, say if you get a move hard left with the bernie sanders shift, if you were to see the house, if you were to see the senate push left then all of a sudden you're talking infrastructure, you're talking living wages, mmt potentials and that could potentially proliferate around the globe, too, germany, green bonds, chinese stimulus which is going heavy. then you need to do a rethink on inflation and you'd look at the cyclical value commodities stuff. >> as we look now, you mentioned you have to have a view on bonds and rates. 156 on the ten-year right now ticking toward the recent lows does that just kind of feed back

into that same process of buy defensives and tech and things like that, and just what are the limits of that crowding? >> 100% spot on there. i feel like and i said this in december there is no reflation catalyst i also feel like at this kind of 150 lower band in treasury yields that's probably a pretty rich spot, too so it still is this range trad where we are going to have overshoots in positioning. we're going to have overshoots in growth scare narratives or coronavirus narratives or bernie sanders narratives thatwill then kind of get priced out and adjusted to by the market and we trade to the 190 level and those swings from kind of the everything duration, the long interest rate sensitives into the cyclical reflation, you probably want to do the opposite of both of those ends. so i do think that right now there probably is an impulse for a yields higher, stocks higher move potentially in the next two weeks. after that, we're going to be beholden to election risk as

well as the coronavirus progression. >> election risk, super tuesday. everyone's talking about this cluster of hedging happening >> yes >> march 3rd >> we touched on that. that is only accelerated if you think back in october last year, we had this very similar setup, there was two big market hedges going on, both in vix upside, kind of short term, and the hedge buying program that's in the market, really outsize market maker capacity to recycle all of that risk and cover their own option shorts as well as the election stuff and at the time it was elizabeth warren now it's bernie sanders. either way it's viewed as a strong growth negative u.s. reregulation, you lose the tax haven status, corporate profits negative and that stuff is disrupting the vault curve out through february, out through march that will absolutely impact the market, because dealer gamma, i know it's an intense concept, but

that's what moves markets, not single stocks. >> charlie, thank you for coming in >> appreciate you having me. >> have to see new two weeks and see where the market goes now and then earlier i sat down with marcello flores. among the topics we hit the company's valuation. here's what he had to say. >> you get back into the money by having a clear plan on the start to executing when you look at 2020 it's a huge inflection point, pretty much everything is 50% better than last year and you get to 2021, you're in the positive all businesses are going to be valued on your ability to generate free cairn. i don't care if it's tech business, a real estate business when you have a business today with a clear line of sight that will generate over $1 billion of free cash, high growth, i believe this will be a business that will provide a substantial return to initial investment already made >> let's get down to the new york stock exchange, jim cramer joins us, probably saw the interview, jim i know macro, it's coronavirus

and of course we did have the jobs number. so from where you sit today, how are you feeling about things >> well, first, congratulations to andrew. i thought that interview was riveting every single tough question, great job. >> thank you >> the best thing that happened is that deal didn't work, never happened and he was honest to say i didn't pay enough attention. job number was great nobody cares everyone is monitoring the virus, so this weekend was just virus. i mean, i cannot believe that given that there's only 12 cases, this is just what this country is talking about, and everyone thinks we're not prepared, and i think it's really paralyzing us, joe. i don't know whether they are prepared or not but i don't think the authorities are doing enough to calm things down, because they themselves seem a little frightened. >> i guess, jim, it's just when we think about something, if it really is human to human and

very easily transmitted that way, we can't believe that something can just end and then it just can go away. that's what we're hoping for, and it has happened in the past. remember sars and how we watched that can it really peter out? are we skillful enough to just confine it to where it actually just goes away it's hard to believe that we can do that. maybe we can that's what we're hoping for >> you know, i listen to dr. fauci in an interview, such a great guy. he's saying yeah, we hope it calms down before april, when it will calm down april is sounding like a magic month, but yeah, that's kind of what we're hoping, isn't it? >> and then it's gone. just hard for us laypeople to really understand exactly how epidemiology works and everything else. >> wish we would spread, i wish they'd say come april, there is often relief i know it seems far but at this point, we'll take it >> yes, and it's 1% is horrible

obviously, but sounds like healthy people might be able to, you know, to deal with it and you know, it's not a -- doctrine. >> total agreement we have to tell that story it's our job >> thank you >> we'll see you in a couple of minutes. tonight on "mad money" take 2 strauss zennick who is meerhaedly over 60 remb tt guy, andrew? >> yes >> i can't believe it. we want his secrets. "squawk box" will be right back. , attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life. saved my life. saved my life. what we do here at dana-faber, changes lives everywhere. everywhere. everywhere. everywhere. everywhere. (sensei) beautiful. but support the leg! when i started cobra kai,

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thanks to mike santoli hanging out with us. joe, nice to have you back, sir, back with us again tomorrow. >> nice to have you back >> "squawk on the street" begins right now. ♪ don't tug on superman's cape ♪ you don't speed into the wind ♪ ♪ you don't poke the lone range and you don't mess around with jim ♪ good morning, welcome to "squawk on the street. i'm carl quintanilla, jim cramer and david faber at the opening stock exchange our opening music is in honor of cramer, who turns 65 today >> i have some reading to do, this is it >> as you tweeted. >> what's really interesting about this, it's impossibl