>> good morning. we are live. let's take a look at u.s. equity futures. after the s&p 500 closer hire. dow open another 90 points it looks like the nasdaq would open by another 43 points. you'll see right now, the 10-year is at 1.a 92%. markets were up in hong kong and shanghai as well >> the death toll from the coronavirus has topped 1,000 the number of confirmed cases

has topped 43,000. the number of new cases is starting to slow the 13th case detected in the u.s. in san diego. in the next hour, we'll speak to a british doctor now in the animal testing phase of a new vaccine. stock rising on the news that a district judge is expected to rule in favor. made public today as we spoke with the sprint executive about that deal. >> we'll have a decision based on the mergers he didn't know yesterday the

decision was coming. i started making calls nobody knew what was going on other than that they were waiting. this is how the information we are reporting is based on is that the clerk for the judge called the parties and said we plan on issuing this tomorrow and by the way, this is going to be our decision. this become difficult because you would call certain of the parties and say, our understanding is that there is a ruling in the case they would say we haven't heard the ruling the ones that didn't want to play along would said, we can't

dmomt on a ruling we haven't seen then you go, this is weird the one caveat i put in. i was anxious about reporting this it could be that we get this decision and it is favorable is it possible there are other restrictions that are more or less favorable we've talked to all the parties and it is clear they've all been talked about >> how unusual is this to get handed down like this?

>> very. >> is it possible a low-level clerk told someone >> no, no. it is clear the judge told his clerks. >> and it is okay for them to then make the decision >> if you really read a lot of the stories out there including the one in the new york times and that we reported on cnbc, it indicates the issue. >> is the judge allowed to do that >> i believe the judge can do whatever he wants. it is very unusual >> it has been two years >> just that the sec might look at it and say what the heck. >> it was all after market >> but not after the after market closed. >> i was watching before any of

the reporting actually hit on line all of this was going on close to 5:00, 6:00 last night the biggest winner here is softbank bankers will make hundreds of millions >> am i going to want to switch? >> there was serious questions >> is it going to be unbelievable service am i going to want to switch are prices going up across the board? >> we won't know for three or four years >> i was getting rumors and e-mails saying this means your prices are going up. >> we'll see we'll see if your prices go up part of the argument and reason

we were able to persuade and the conversation about where we are. if you believe you need to have a strong 5g network, you need companies. by the way, they have the midband spectrum they can deploy this faster and better. >> it will be years before we know you won't ever know the counter. they'll be pouring it back in to the networks to build out better networks and how do you do that about how would your coverage be the same >> the other piece of this is charlie. they'll be the fourth player we'll see what they do

that is sort of the argument why the deal was approved. why they found the fourth player and how they have a history of being a disruptor. news at google the human resources chief is stepping down. leading the human resources department since 2006, i believe. during that time, google has faced backlash over a handful of executives being accused of sexual misconduct and the discussion of handing over ai. slack is downplaying a report saying slack just scored the biggest customer deal ever when ibm decided to deploy to all employees. but slack says ibm has been

their strongest company for years the company also not updating fourth quarter guidance shares are down about 7.6% >> shares in the company moderna shares following the proposed $500 million stock offering and expected to use the money to fund clinical and drug discovery on news that the progress in developing a vaccine for the coronavirus is preceding in their words with no clichs so far and for me, by far, the biggest news, sports betting

company has struck a partnership with cbs they'll pay a fee for access to its audience and partnerships aimed at getting to the betting accounts increasing the sports betting conduct. >> the key is that this will be done by march any media company that doesn't get into this is missing the boat you know what i won big on >> the oscars? >> not all of a sudden my son told me that parasite would win. >> good for scott. it was three to one. >> how much did you put down $25. >> i only put $25.

i wish i put $500. >> can i ask you a question about the cbs deal >> you can ask me a question that's all i know. >> my understanding is that some sports league, some are embracing it and others are not. >> it is like legalizing pot >> you can't do it if you are a national company by cbs doing this, it advances then maybe into the ncaa are there other leagues that say, this is no good for us. >> that's an interesting question it is good for everyone except those who end up in gamblers a

none news. the engage much, franchises are worth more you you are engaged. did you see bailer and florida state? you didn't see florida state/duke >> no. i'm trying to report on t-mobile/sprint. >> i give information to investors who want to gamble >> i think this is a whole offshoot >> espn broadcasts if you don't care because you are not from that team no other reason to watch it unless you are engaged >> i saw a piece on the xfl. one of the things they do is talk about the spread the whole time >> they do

they are doing it more normal. can you bet during the game. >> genius sport to distribute nba betting data this is an article about how they all used to vee am atly opposed to this. primary day in new hampshire get your wagers out. we'll take you there for a look at the early voting and talk to the state's former governor jay greg right after this. >> announcer: today's big number, 373% that's how much the i shares u.s. aerospace and defense iups

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and save even more when you say "bring my own phone" into your voice remote. that's simple, easy, awesome. click, call or visit a store today. welcome back voting has kicked off in the new hampshire primary.

residents in the small community cast their ballots with michael bloomberg winning three of the five votes as a write in candidate. good morning >> senator amy klobuchar is continuing to see momentum among those small-town votes overnight. certainly notable to see that rise continue after her bee bait performance. new england candidates tend to do really well that's why bernie sanders got 16% of the vote. that ground swell of support runs deep, it cuts a little different demographic. take this man.

a former attorney who now runs a bar. he is concerned for his younger employees. >> i'm concerned about my emp employees and how they'll get along with financing and housing and cost of education. getting to know the kids pretty well and their financial circumstances that is something i'm always aware of. i can do so much as a business owner. >> jamie is one of those workers. 26 years old, a regular sister independent. she and her fiance live with his family she would like to work in health care some day.

but on $13,000 a year, health care is out of reach >> i would really like to be able to pay to live. it will take me a really long time to get there. >> worth noting here in new hampshire, it has the lowest poverty rate but one of the states where income and equality has worsened the things we have heard over and over is that the cost of living is just becoming unbearable >> thank you for that report for more on this, good morning to you let me start by asking you to try to handicap it in the polls and what you know.

>> new hampshire is unpredictable and fluid. the dicksville notch number is interesting there. >> my sense is that bernie sanders is going to win with the socialist movement that is maybe 20 to 30% of the party but the vast majority will be looking for an alternative who they think can beat the president in november if you look at the field, i don't think that person is showing up every time sanders wins an election, we say, my god, we

can't nominate a socialist >> looking at where biden stood in the polls and in iowa, is that a commentary on the idea of a moderate democrat or something else >> no. i don't think it is on the moderate democrat theme. i think aim yay klobuchar has great movement those two have traction. my sense is and unfortunately for joe who i like and respect, i think the train may have left the station on that campaign this party may be in the throws of a threat of nominating a

socialist. that's not going to fly in america. they are looking for someone to take that place. who knows mike bloomberg has the money to try it. >> if you are right, this goes to the question of whether you think when the voter goes to the booth and presses the button, whether they are thinking who can beat the president in this case and the other side as opposed to who they support or want to support more >> i think the voter is thinking both thoughts in the primary, they are going in and want to vote for somebody they identify and have somebody that could be viable candidate those are very much intertwined. remember, independents can vote.

you'll have a lot of right-leaning independents people who may had been republicans and are now independent. they are going to be voting in the democratic primary they are not going to be voting for sanders and elizabeth warren has sort of faded too. >> can i pivot the conversation. i'm curious your thought on the budget proposal? >> it is a joke. it is a terrible proposal. you are not going to balance the budget in 15 years he's not willing to address what is driving our budget, which is entitlement spending in the health care a

health care. >> is this -- >> they want more -- we are going to have your thoughts with kentucky >> i don't mean to talk over somebody they are adding hundreds of trillions of new spending to a normt already $22 trillion in debt headed to 100% debt to gdp >> nancy pelosi said what is hatching here is braisenly inflicting savage multimillion cuts meanwhile, entitlement spending will prize $54%. discretionary spending stays flat revenue has continued to rise up

6% we'll have people on today that say there is no infrastructure here they'll complain about the deficit what they don't like is that there is even more spending >> we don't have a revenue problem. the revenue is growing economy is growing we have a spending problem driven entitlely by the issue of entitlement spending and medicare soon, medicaid will dwarf in cost nobody is willing to address it on either side of the aisle. >> are you teaching a class later today? you are so scholarly >> thank you i'm trying to look substantive now, joe

>> why now >> i'm trying to catch up with you. have you tried that kevin kisner thing? >> it works fabulous >> it doesn't work in front of crowds what i really don't like is cameras. >> your business, i can see that >> all right >> it is nice to see you, as always i imagine we'll talk a lot more about this when we come back, a new read on small business in america. the latest numbers right after this and earnings just in from hilton worldwide beating estimates on top and bottom lines in the fourth quarter the forecast is some what shy and does not include possible coronavirus impact that stock down about 1.6, 1.7%. "squawk box" will be right back. we're carvana, the company who invented

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time now for the executive edge we have a new read on small business kate rogers is back with the latest numbers >> good morning. the index bouncing back from losses to start the new year at

104.3, an increase of six points about four points below the all-time high we hit in the s summer of 2019 biggest gains were in those who expected higher than expected sales in the next few months the biggest losses were those who expect that the economy will improve. a small decrease as uncertainty will stabilize skilled labor is an issue. the single most important problem, that is followed by taxes and government red tape and regulations the biggest risk here is the potential global

implications of the coronavirus that they are monitoring closely. >> how long is that the lag? and before fears work their way into these things? >> i expected to hear more businesses are concerned about coronavirus. we are monitoring it i wonder if businesses have shifted their production i'd say either next month or the month after, that could show up. right now, they are just saying that they are monstering coming up, a new set back for softbank one of its investments abruptly shutting down and we'll talk to

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good morning welcome back we are live from the nasdaq marketsite a lot of police out there. >> some excitement out there yesterday. >> what happened >> naked people? >> person. >> man or woman? >> woman >> you missed it >> we missed it. >> what time >> i think it was before the show it was early here is the futures up again. is that a unique thing in times square it is really not whacky and crazy and rainy

>> unusual in february >> yeah. don't want to do that. surprised you know what is going on here and we don't even know >> i have ears everywhere. >> hasbro better than expected $1.24 a share to $0.91 products related to disney's frozen ii and star wars. >> that's before you get to baby yoda >> everybody wanted it they had it under wraps. wasn't produced in time for the holiday but still a lot of demand out there the retailer brandless will shut down. the first startup backed by

softbank's vision fund to fail they have not responded to cnbc's request for comment every time there is any word about brandless, it is all about how bad softbank is. >> you said sprint is the bigger deal >> yes what they are looking for is one or two grand slam home runs that will make up for all of the failures to look at brandless and identify that as the problem child, i think -- >> is there a moment in time when this masa son was so respected and admired where it was just a short >> the plan was pouring into

fund >> the vision fund because of the size and scale of it -- >> was it not until wework became a short >> no. the second they announced he was going to spend $100 million of his own money. they said he's kookoo for cocoa puffs. when we come back, we'll talk to a doctor working on a vaccine for the coronavirus next and john yarmuth's reaction to president trump's latest budget proposal. remember, you can watch us live or on the app. we'll be right back.

welcome back it is time for an update on the coronavirus. the death toll has topped 1,000 and the number of confirmed cases has topped 43,000. although the pace of spread is continuing to slow eunice yoon has more it is good to see you. >> thank you, becky. it is good to see you too. the continued spread of the

coronavirus has stalled production lines across china. we spent the day with one beijing manufacturer who said he is concerned the disruption could last until april >> he expected to reopen his beijing motorcycle factory today. instead, it is 10:00 in the morning and he's home with his dog. >> it is nice to be home but this is too long >> because of the spreading coronavirus, he's stuck trying to manage his company from his apartment. he's depended on the thousands of workers at this facility to build his motorcycles over the past two years from here, the bikes are shipped all over the world authorities here have prevention measures like installing showers, and separation rooms.

>> chinese work force is a migrant work force and majority comes from the wuhan those guys won't get here until the end of the month >> he and his partners had to delay the launch of a new motorcycle they had planned for this month >> when do you think you'll reopen >> fingers crossed friday but you will never know. >> he and his partners already have a facility in india they are thinking of sending senior staff there >> bringing in a doctor working on a vaccine for the coronavirus. head of department of medicine at imperial college, lone ton.

thank you for being with us. >> my pleasure >> it sounds like you are already working on animal trials >> we have been fortunate as have other groups around the world that the chinese scientist have made the genetic sequence of the virus available in a record quick time. that has a lllowed us to start working on a vaccine which we have moved to animal testing this week and we hope to move to human testing within a period of months >> what does that mean in terms of, if everything went as well ooze possible, how soon would a potential vaccine be able for around the world >> there is a couple of things to put in context. we and the other teams around the world have moved much faster than has been done before.

we have done this in a matter of weeks, months and years. it still requires a lot of testings to see if these vaccines are safe, then working in field trials. the closest they will get to making this available will be next year or later what is exciting is by having multiple teams working on the same target, we hope more than one candidate will come through and it will mean there is plenty in terms of scaleup and supply chains to act as sufficiently as possible >> this is an rna, single-stranded virus. do you try to make the vaccine against the rna or find something that is conserved?

>> what's really useful is a lot of the science is driven by our understanding of previous coronavirus, sars and others that allowed teams to identify a small portion of the genetic code that has instructions just for the protein on the surface that seems to be conserved and doesn't seem to be changing. >> i know it would take additional money how much would you need in funding to take this all the way through? >> it is hard to predict how much money is required to take it all the way because that will really depend on where the pandemic is over the coming months and how many doses may be required if the current measures contain it within china, that would be a

different scenario to a virus that might become a pandemic >> so many questions about the incubation period and how it is spread do you have a better idea how it works? >> for now, we don't have a better idea from other experts working on this. the epedimologists are the ones working on it here the w.h.o. have a team on the ground able to verify the data it looks dramatic buts that because the fatality is on the number of cases and doesn't take into account those with mild or no symptoms. it is probably an overestimation than a real figure

>> if there were to be a pandemic, would there be a second wave? and the vaccine would then be ready? >> right we don't know how things will work out the best case is that it will start to go away and by the summer, it will start to disappear. we hope there will be a distinct slow down. to have a vaccine available if it comes back with a vengance next year on a more global basis. we hope that won't be the case but it is important to have tla insurance policy in place. >> thank you for your time we appreciate it >> my pleasure coming up, the ceo of the country's biggest auto retailer.

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. auto nation beat estimates above the top and bottom lines concluding a record year for the country's largest auto retailer. joining us to break down the results is the ceo at autonation just had a surreal discussion. i apologize. >> we also talked about that as well that's what the customer wants right now. >> these numbers are very good and record for the year in

general, it was helped by the interest rate moves by the fed. >> absolutely. the customer is in great shape so you have low unemployment you had interest rate cuts all time record not only for the quarter at $1.74 that is up 71% year over year. >> that was a gain it's still well above expectations. >> it's the second great quarter in a row we had an all time record for the year so the year was $4.98 up 58% and the customer is in great shape it says here used vehicle revenue. >> 51%. >> but you don't use used vehicles don't you use preowned or something. >> it's amazing. so for 2019 we had 57 million units so between new and used in the industry 57 million. that's about the same that we expect for 20 so another great year in 2020. >> are people buying more used cars

how does that ratio break down >> definitely a migration. so we have seen a migration from new to nearly new so we anticipated this several years ago. we built a great brand and we won pricing and some are really well positioned. >> do you think more people are doing that because prices have gone up more substantially there's more and more electronics than cars. >> prices have gone up about 15% so that's a $5,000 increase in the period. >> 11% gain in revenue for used but actually down 1.3% for new what does that mean for new vehicles >> from a new vehicle perspective we're seeing the price point pressure for consumers but the great thing is strength all across the board in different sectors. great new products and a lot of electrics coming out and different products out there but also strength in customer financial services the customer financial services

$1,989 up $130 year over year on the quarter. >> and there were other -- i remember mike in the last initiatives were broadening perspective beyond the car those operations adding -- >> absolutely. so customer care period rations were great for the quarter up 4% as well. they continued to see strength in new, nearly new customer care operations. >> so you need something to sell to the electorate. so you need this you're very excited about this there it is. >> absolutely. so i had an opportunity to drive it two weeks ago it's amazing we have a six month back order it's definitely going to be a strong competitor to the tesla. >> it's faster than -- see a 911 turbo. >> it's just as fast. >> i know that you drive one as well. >> it's not a turbo though i don't see how this is the turbo with the battery. >> i drove the ticon turbo s and

it's in the range of the 911 turbo s. extremely fast. >> it's 2.4 seconds 0 to 60. it will pin your ears back, joe. >> i could use that. >> it is. >> not only porsche. you have all the other manufacturers coming out we electric and we see that a lot in the premium luxury space. you can see bmw and mercedes after that. >> you heard that the battery on the porsche. >> the battery in this new porsche is better than tesla. >> the range is not as much. >> not as long. >> the performance is amazing. >> the performance and your ability to sustain the performance. >> to keep driving faster longer. >> that's great. >> faster longer. >> absolutely. i took that out on 95. it was amazingly fast. i was getting raced by some young kids in the car. >> thank you >> thank you i guess we got to go

thank you very much. >> thank you for having us on today. >> coming up when we return the chair of the house budget committee is going to join us to reenact the president's 2021 budget

a merger sfwrient sprint and t-mobile. >> plus a targeting ban on travel to china and his call for the communist nation to open up to international scientists to stop the spread of the coronavirus. the second hour of squawk box begins right now. welcome back take a look at u.s. equity futures at this hour we'll show you what's going on

green arrows across the board. dow open up close to 80 points higher and the nasdaq up about 32 points but i'll tell you the stocks we're looking at right now. that's underarmor. shares lower following the quarterly results. the company reporting an overall loss and warning of a negative impact from the coronavirus. that's off 15%. >> on going demand challenging and the need to drive greater efficiencies and our business requires us to further prioritize our investments to put our company in the best position possible to achieve sustainable growth over the long-term. so they're changing their outlook and strategy too the release of 2020 restructuring initiative 325 million to 425 million in estimated charges for 2020 we'll talk more about this in just a little bit. >> has it not --

>> remember all through the financial crisis that continued to grow double digit in terms of sales growth and maybe earnings per share too. they grew incredibly where the consumer demand was dropping overall. they're talking about issues and also talking about the coronavirus. it's not been a good couple of years. politicians on both sides of the aisle are reacting to the $4.8 trillion budget proposal outlined and increases military spending tomorrow. and testifying about the president's budget joining us now is the house budget committee chairman that will oversea that hearing. it's good to see you congressman

and, you know, we already talked about i don't know if you saw the journals oped. it basically says okay queue the progressive outrage. we're going to hear about the discretionary cuts but the journal points out that over the next decade that discretionary spending is flat and that entitlements are going up 54%. so this doesn't seem like a draconian budget is that how you would characterize it. >> it's good to be with you again. what the republican administration has done is what they continue to do which is continue to cut taxes and take it out of the social safety net and other important investments for the american people. they extend the 2017 tax cuts past 2025. that's an additional cost of $1.5 trillion and they cut about $1.6 trillion again out of

programs that support the american people. it's pretty draconian and it's a betrayal of a deal we made six months ago we pass a two year budget deal based on a bipartisan compromise the president endorsed it and six months later he submits a budget proposal. >> the first four months of this physical year, tax revenues are up 6%. you're talking about the tax cuts you hear it again and again it's not a revenue problem. it's a spending problem. where would you focus the cuts do you think we should be cutting defense depending and maybe doing more for student loans? >> i think we ought to be cutting defense spending that's a deal that we made last year we accepted the people that wanted a higher defense number in exchange for getting a higher

non-defense number and remember part of that non-defense budget is homeland security and fbi and a lot of important security elements so it's not just programs that like snap and other things so what we are concerned about is once again cbo, congressional budget office was issued their annual report last week. they showed that the 2017 tax cuts basically reduce gdp by 1% and added .2% of revenue so 80% of the tax cuts were not paid for now they want to extend the tax cuts past 2025 which will have the same result. so what we would say is we do need to deal particularly with health care costs. but, you don't do it by cutting services or reimbursement to providers. what you do is, prescription drugs, deal with the structure of therevenue side and we can' do anything about the aging population we have 10,000 people turning 65

every day. that's not going to change gdp is way more than we can really afford. you spend more on infrastructure and cutting back on defense spending you want to spend more than we're already spending as a percentage of gdp. >> but the revenue is above what it was the spending is what is really rising so you want to do it through just more revenue to spend more revenue. >> well, if you look at the cbo report what they said was they had to continually up their estimate on the revenue lost because of the tax cut so yes, revenues are up but they're not up as much as they would be

as we know, medicare, medicaid and social security are going up >> the other thing, since 2017 when trump took office, we're spending 21% more than we spent -- this doesn't sound like a draconian tax cut. it doesn't sound like we're pulling the rug out from under the revenue side of the equation we're still running at a flat rate and they do cut nondefense discretionary past 2021. 2% a year for ten years and they do increase defense spending by 2% a year. so the dispair sy gets wider but on the mandatory spending side again we have a growing

population we can't do anything about that. we have to have more people paying into the funds, social security and into the medicare immigration is a good way todo that and bring in more people but also we can really go after some of the costs. we have to go after pharmaceutical costs i heard yesterday that the state of utah, their public employees they send out to mexico, pay for their plane ticket and give them $500 because that saves them money on their prescription drug costs. >> well, i saw a trump ad yesterday. i think it was from the aarp which could have been an ad from your side of the aisle it was about, you know, not saying i agree with all of it but talking about everywhere else in the world the prices are here for prescription drugs and they're much higher here there's no innovation happening in the rest of the world so i disagree with the premise of the whole trump ad but sound like you'd like to import the

price controls here. >> there's steps that we know can be effective we can reimport drugs. we can do a lot of things. >> we're reimporting price controls and a lack of innovation too theoretically. >> theoretically. >> we have to be careful. >> absolutely. >> anyway, keep ken hasntucky hg game tonight. >> absolutely. >> so good luck. >> i'm primarily a cardinals fan and we won ten in a rowand are number five in the country. >> i have seen that recently you got my coach. >> chris mack, he's awesome. >> you stole him it was nasty what you did, really for money money. >> imagine that. >> can you believe it? thanks >> you bet. >> coming up, when we return, should the u.s. implemented a targeted china travel ban? he'll be our guest at 7:30 eastern time this morning. let's get a check on markets you're looking at the dow up

about 80 points if we opened upright now. s&p 500. ua rur aerhi sqwketnsft ts. when it comes to your customers' expectations, there's one thing you can be sure of. they're changing by the nanosecond. that's why cognizant created a unique engineering approach to design and build new digital products. learn how cognizant softvision designs experiences and engineers outcomes. ♪ cool. ♪

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here's what's making headlines at this hour shares of under armor plunging in the premarket in a big way. the company reporting an overall

loss with revenue falling below forecasts and also warning of a negative impact with china representing one of its fastest growing markets. also assessing a possible restructuring that would take place sometime this year off 14.5% as of this moment. actually just past 15% right now. >> yeah. i mean, i think the biggest question here, they layed out their plans for where they were going to restructure and their goal between now and 2023. obviously this was moving the goal post to some extent people are going to have a lot of questions about what that means. also he wants to hear where the doj sec investigation stands too on some of these issues. coronavirus you might have expected that is something that would be there temporarily have they pulled back from some of the off price locations are they doing well? we'll hear more about that when we come back, with the

housing market heating up, non-bank lenders are taking advantage. we'll take a look at how the sub prime housing crisis gave rise to a new industry and why some are now worried. right now, though, as we head to a break, let's take a look at the dow premarket winners and losers

welcome back, everybody. nonbank lending is taking over the mortgage market. now regulators are raising red flags. that is one of the topics on the agenda good morning. >> good morning. >> after the sub prime mortgage crisis major banks pulled back on home loans because of confusing regulations. big names like quicken, loan depot and better.com they accounted for more than 2-thirds like fanny may, freddie mack and according to inside mortgage finance

growing much faster than the total market and they don't have banking licenses and they're improved more quickly online but generally the same underwriting standards because they mostly sell their loans to fanny and freddie and originate most at fha. in a recent report the financial stability oversite counsel said nonbanks could pose a risk because they rely on short-term funding sources and have relatively limited resources to absorb financial shocks. it encouraged regulators to take additional steps to address the risk and that's the issue there. >> it may or may not pose the market and we have two sides on that the former fha commissioner and former nba ceo

also the former president and ceo. i think you are the one that has the general problem or at least thinks it poses a bigger risk right now. >> why is that what do you see is the risk that the market is missing? >> well, the issue you have is they do a great job of good quality loans, good operations you know, deposits, cds, rely on short-term bank lines of credit which can be pulled back in time for recession when they need that liquidity to step up. >> do you see this as a systemic problem or particular non-bank lenders as being dangerous >> well, it's the idea in general. non-bank accessible deposits under the program they're required to make liquid payments

to bond holders and make sure that they always get their money every month. so some of these could take a year or two to foreclose and a substantial amount of liquidity you have to come up with to make sure that they comply. >> david, contextualize this for us are we safer or less safe than we were in 2007 or 2008 and speak to what ted just said. from 208 to 2012, 465 federally regulated banks collapsed. washington mutual, wachovia. can any of you name a bank that failed during that period? probably not we have a much more diversified industry when i was fha commissioner in 2011, 80% were held by 2 banks and a lot of that was because other banks had collapsed and be absorbed by the larger ones.

a report of 2019 that was referenced they actually couldn't call out any systemic risk of any independent more ganl banker. we need to have them regulated it's a far better system than it was back then. >> i would ask you, you talk about this risk to the system if there was a recession and people were to go into foreclosure. we're looking at the highest level of home equity in history right now. we have a severe housing shortage and investors really interested they would be able to sell their home in a nano second. is this really that much of a risk >> the issue again is like they said, prior to the great recession there's a couple of banks, the concern is having this much moving out of the banking sector it hasn't been tested. it hasn't been stress tested

during recession and that's my only concern is making sure that we have the stress testing now to really try to understand where the risk may be in this unprecedented situation. >> i would ask you this, if you overregulate or regulate the non-banks the way you regulate the banks right now they would go out of business. >> if anybody thinks that non-banks are not regulated i don't understand how the scoring position works since the consumer financial protection bureau now regulates non-banks. the csbs, the state bank supervisors has stepped up to regulate nonbanks. they have to go through extensive licensing and that requirement under the safe act, all of this is loans being created prerecession has been

eliminated by law. good quality ability. >> but is there a bias to the banks? we know the connections between washington and the big banks do you think that there's any kind of biassing like non-bank lenders are taking over the market. they're over 50% share we are concerned we have to help out the banks. >> no, i think it's more people realize the banks for good reasons. and it's just reality we're in right now. i agree with dave. when it comes to dealing with consumers, they're as regulated as any bank. my concern is the liquidity and not the quality of loans, it's not servicing. they do as good a job or better job and my concern is that structurally nothing will have access to guarantee deposits could be challenged in a recession. >> thank you back to you guys. >> thank you for bringing us that conversation. >> still to come on squawk box, senator tom cotton on the coronavirus outbreak and the

budget and effected to improve a t-mobile sprint merger what it means for the wireless industry is coming up and it's primary day in new hampshire we're going to discuss what that means for democratic candidates with new hampshire governor. squawk box coming right back imagine traveling hassle-free with your golf clubs. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call, we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks.

the coronaoutbreak poses a threat to the global a couple of numbers as of now. the global death toll, 1,018 there's more than 43,000 confirmed cases as of now as well >> our next guest favors a targeted travel ban to contain the spread of the coronavirus. he serves as a member of banking intelligence and armed services committees thank you for being here today.

>> thank you for having me on. >> let's talk about the targeted travel ban how would that work. >> that's exactly what the trump administration did a couple of weeks ago. we are currently excluding any foreign nationals that have been in china in the last 14 days for any americans that have been in the province and it's only a prudent stop to stop more than 20,000 persons traveling from the chinese mainland every day given how many uncertainties there are about the very dangerous virus. >> there was some push back from the chinese ambassador to the united states on some comments you made recently. i believe you suggested at least that the virus could have come from china's biological warfare program. the ambassador pushing back pretty str pretty strenuously about that. >> first off, i would note that he didn't deny that china has

been deceitful about the origins of the virus there were reports that it started in the food market and we now know that it did not start in the market. it went into the market and went out of it. i do know that we need to get to the bottom of it and we do need to ask questions about the super laboratory that is in wuhan. there's too many unanswered questions and china has been too deceitful for us to just take the word of the chinese communist party. >> on that point, let's talk a little bit about other news that came out this week that's the 2017 equifax cyberattack. reports this week suggest that it was the people'sliberation army in china and some of the chinese intelligence agencies that were responsible for that attack that would have come two years after they signed an agreement with the united states not to continue hacking or doing cyberattacks what do you make of that >> pursuing these departments

against the people's liberation army it doesn't surprise me to know that china is targeting companies with massive amounts of data like equifax we need to do more to deter china from the actions we also need to do more to continue to hold china to the commitments. as you said, xi jingping pledged not to undertake these kinds of attacks. it's within run it's so important that president trump kept the tariffs on most of the products as a way to continue to demand that china uphold it's commitments under that and other agreements responses with relief to the idea that there's a trade truce on this front.

it's what you're seeing with the back and forth are you skeptical of the trade talks? do you not believe the talks to this point do you not think that things will improve >> i'm sceptical of the willingness to uphold their commitments. that's why it's so important that the trump administration did not remove the tariffs it didn't remove the past tariffs until china demonstrated upholding of its commitment in these deals. i think it was a step in the right direction. it's now incumbent upon china to deliver although as you suggest i'm afraid that the coronavirus could be the single biggest threat to global and u.s. growth in this year. >> i want to go back to the comments from the chinese ambassador to the united states. over the weekend he said it's very harmful, it's very dangerous to stir up suspicion and rumors and spread them among the people one thing is it creates panic. another thing is racial discrimination and other things that will harm our joint efforts

to combat the virus. obviously the intelligence committee knows more about what's happening how firm are you in your concerns about this? >> so i have two responses to the chinese ambassador one the thing that is really harmful, that really spreads fear is china lying about the origins of this disease and about the number of people that have it. and trying to get to the bottom of it. second in terms of the claims of racism the chinese people are the first and the worst victims of the chinese communist party we should all hold them in our prayers and hope that we get a vaccine because they're the people most harmed by the chinese governments incompetence and duplicity. >> we spoke with a researcher from london already starting animal trials on a vaccination they're working for and he cited china was sharing that information and getting it faster than they have in some cases in the past. what would you say to that. >> that's grading on a very

steep curve compared to what china has done in the past. >> you mean with sars. >> i can promise you that the chinese government is being far from cooperative with the united states and other world leading country scientists to try to get to the bottom of this. if they wanted to get to the bottom of it they would admit western scientists into wuhan to get to the bottom of it and get a vaccine as quickly as possible for our people and the world. >> what are your concerns if the travel ban has kicked in do you still have a heightened level of concern about this? how would you stridescribe your thoughts >> i do. it was a central step to minimize risk to the united states but the first cases of this viral pneumonia appeared in early december which meant it could have been incubating in mid november a million and a half people flew from china into the united states in that period of time. that's why we're taking such an aggressive posture for trying to identify people that might have

coronavirus and people they have come into contact as well as pushing out testing kits to all 50 states but it's also essential that we work with our partners around the world and the world health organization that heir on the side of caution. an ounce of prevention is worth a pound of cure. >> former head of the fda wrote an op ed that says in singapore you have already seen this case get passed on to other people. his concern about what happens here next. what will it look like how will we first find out that there was a situation like that here in the united states? >> yeah. that's a very worsening development in singapore people that have not been in china or maybe don't even have a clear connection of someone that has been in china, that's why it's so important that americans if they get any symptoms that are flu-like or certainly if they had any viral pneumonia that they and their doctors make sure if they have been to china

or been anywhere around china that public health authorities learn that quickly so we can hopefully get a handle on the united states before it expands beyond the cases we have now. >> jay powell testifying before congress this week what are your biggest questions for him? >> one thing we should explore is the impact on the u.s. economy and the prospect that it may require another rate cut sometime this year i also want to speak to what china has been doing to digitize it's currency and the prospects for doing that with the u.s. dollar it's a great benefit for prosperity and security of americans that may be something though that we need to do to ensure that it remains the reserve currency of the world in the years ahead. >> i want to thank you for your time today. >> thank you. >> good to see you. >> coming up, dialing up a deal, a federal judge expected to clear the way for a merger between t-mobile and sprint and david faber will join us after the break to discuss this as we continue to watch the shares of

underarmor the stock dropping after shares fell short and the company warned of a hit from the coronavirus and you can always watch us live on the go on the cnbc app we'll be right bac k.

let's get a look at morning movers good morning top of the morning to you, joe so we have a hand full of the big movers and they're tied to earnings this morning. let's kick things off with shares of underarmor taking a big hit and they're down 12.5% around 693,000 shares of premarket. matches wall street earnings estimates. the coronavirus outbreak in china will shave around 50 to $60 million in sales investors not liking that bit of news down 13% we're also watching shares of hasbro up around 6%.

this after it posted better than expected profits it's an accentuate the positive story here investors are cheering affected cost management and a surge in sales. and those sales by the way rose by 50% we're going to end on sales of auto nation higher by 10% premarket. and some of the lack of demand up about 9%. >> as i reported late yesterday a federal judge expected to approve the t-mobile sprint merger this morning. it should come at the end of a

suit filed in june states argued it would reduce competition in the industry and shares of sprint jumping more than 60% on the news this morning. and yesterday i spoke with the sprint executive about this very deal here's what he had to say. >> we're going to have a decision based on the merits of the merger nothing has changed. this is the best for u.s. and consumers. >> now it's important to note that none of the parties at least as of now have read the actual ruling. leaving open the possibility that the decision could include conditions perhaps or restrictions or other things that we don't know about but as of now it appears to be favorable and joining us to talk about all of it is david faber that's been covering this deal from the very beginning. i'm surprised. i'm also surprised about how it's come ut

it was the best case it was 50/50 rarely did i hear anybody stray into higher percentage terms just because people thought if the judge applied the law they were going to ose. gave them a sense of the decision we'll see what conditions come along with it if any but even with conditions i think it's fair to say that the market and a lot of other participants are breathing a sigh of relief

you can go off and on. and by the way, across the business world if, in fact this decision went the other way, in part also because state ag's would have stopped a major transaction. >> other deals that may come now as a result. things that have been on hold and people are waiting to find out. >> that's not clear. this is the last year that we're going to see it in wireless. they're going to be getting together it's been waiting for this case. you still need the judge in d.c.

to less the decrease it was entered into when the department of justice allowed the deal to proceed. it's still going to be spring before this deal actually closes and what does that mean? >> yeah. that's a key in fact it appears to be the case that the companies are going to win and the testimony will be cited as being a key part of it. and answering the question because he indicated that we are going to be a player in 5-g but it's going to take awhile, the questions that we have, i'm looking forward to him answering at some point, can you do all of this on $10 million? that's a number to put out there

frequently or less it seems hard to imagine it's going to take a lot more than that. the question becomes will there be a significant partner that takes on some fashion? there's plenty of rumors about that but that remains completely unclear in terms of whether he would get significant capital infusion or take on a significant capital infusion. >> one other thing that i was going to mention, let's not forget there's a likelihood of it i reported there has been a great deal of signaling from the t-mobile side and we're going to push for a renegotiation. >> is there any chance that they walk away after this after going through all of this and finally saying okay forget it we don't want to do it because we don't like the deal that we originally cut. >> i know. it seems hard.

that said, everybody believes there's going to be a renegotiation. maybe it won't be of great significan significance maybe it will be a small ship. but that's what i have been hearing for months so that will begin in earnest and, in fact, i think both sides are getting the arguments ready already as to why -- >> can you imagine >> i can't imagine >> this is crucial for softbank of course. if they were to renegotiate the deal, how could that be? >> if it went against them, sprint would still be their problem. figuring out everything what to do with it what the asset in terms of its capability is. now they have that spectrum and it's still very valuable

it's a lot less of a problem now. it's a tough spot. >> and by the way, are you a believer that everybody will be able to move forward at such a rapid pace that it will be genuinely competitive if not more competitive of 5-g with veriz verizon? >> that's a great question >> in terms of what they'll be able to do let's not forget he's also going to be exiting the community in a few months we'll see. he is an executive can they deliver on their promises they're going to have to in some

ways >> thank you, sir. >> when we come back, macroeconomics on the market rally and the driving force behind it. check out the futures this morning. yesterday the s&p 500 and the nasdaq closed at new highs this morning. green arrows once again. nasdaq indicated up another 45 points pntup by 12ois. the dow right now up by 107. we'll be right back. give me your hand! i can save you... lots of money with liberty mutual! we customize your car insurance so you only pay for what you need! only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ apps except work.rywhere... why is that?

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it's really concentrated at least in the short-term in the growth stock look at this comparison. the third of that index is microsoft alphabet and that index is the all country world index excluding the u.s. so it's everything in the world except the united states and you can see over the last six months when they had the low we got out of that recession scare to some degree this has gone pretty vertical as you can see. we know why this is happening. low yields this premium on reliable cash flows, long-term in the future, that's what is getting these stocks moving.

the question is if you're buying now are you skating to where the puck is or was as opposed to where it's going i don't know these guys are holding the market in the current record high position while we wait for the macro to improve. >> investors monitoring news on the coronavirus but he thinks the outbreak's hit to the global markets is exaggerated he said because of the temporary nature of that, i would expect more of a rebound. it will most likely be something that in another year or two will be well beyond what other people will be talking about. it's the managing partner at macroeconomics do you agree >> yes absolutely so the way i approached the coronavirus was not to become an expert in something i had no business trying to become an expert in. but first of all, what is the

potential risks of business confidence so i looked at that and furthermore from the frame work that we had really depressed business confidence through the trade war last year and if you think about where carter and the u.s. are right now in terms of recovering from all of that uncertainty it's a hit to the order of magnitude of what happened in may. it's unlikely that we would have a hit unlike what we had in may or august. it was likely to be less than it was in those two episodes as well and it's what it does the supply chains and essentially shutdown the

global auto industry in three or four months. now i'm not becoming an expert in the coronavirus it will probably start to fade but more importantly that 2011 incident was the starting point for companies no longer stretching their supply chains all around the world so they started to go toward local sourcing and you guys actually interviewed him in davos and he said that's our motto. we locally sourced that incident floods in the same year and trade war. all of those things moved the companies away from that and the hit to the supply chain is unlikely to be nearly that order of magnitude >> the market also seems to think it's a transitory event. is that overplayed, underplayed? a week or two ago would have been a great time to buy on a

relative basis to where we are today. is today on a relative basis a good time to buy. >> once you pushed past all of this and you think about the drivers, for me there were three main tail winds that were likely to persist through april or may. those are the liquidity being created from q-e or not q-e 4. the business confidence resurgence you can see it capital spending is improving. we have a software and research and development spending which to the earlier point about the megacaps, that's why it's happening. the effects of the tax cuts and jobs app we have 15% r and d spending in the tech sector. 12% for the s&p 500. so that's tail wind number two and then tail wind number three is the condition of the u.s. consumer which is off the charts those things are the reason that i was bullish. and then we get a little bit of

an uncertainty >> appreciate it. >> when we return, it is primary day in new hampshire bernie sanders and pete buttigieg are locked in a fierce battle to be the front runner. chris sununu will join us after the breaks in the meantime take a look at the futures. the gains have been building through the morning. dow futures up by 117 points the nasdaq up by 48.

underarmor tanking. the athletic making reporting a loss and warning of negative impact from the coronavirus. and the light at the end of the tunnel from sprint and t-mobile. a judge is getting ready to approve the firm's mobile. sprint shares skyrocketing the final hour of squawk box begins right now

>> good morning and welcome to squawk box here on cnbc. live at times square i'm joe kernen with becky quick and andrew ross sorkin the trade is higher up 113 points this morning. the s&p indicated up 12 and change and the nasdaq up sharply. the race is on in new hampshire is the first in the nation primary and democratic hopefuls are really opening their wallets. robert frank joins us right now with the numbers and by the way, one guy seems to have already won. >> the money raised. >> the money raised. >> but you saw that he got a couple of votes. >> that and that money guy. >> we'll talk about that in a second. >> democratic candidates spending nearly $50 million in tv ads leading up to today's

primary but one candidate o outspent them all. that's the billionaire he has poured $19 million into tv ads running in new hampshire and nearby states. bernie sanders comes in a distant second followed by pete buttigieg with 3.7 million elizabeth warren behind at 1.5 also spending a third of all and $600,000 on ads compared to 141,000 for sanders. michael bloomberg is not on the ballot in new hampshire but the market, new hampshire voters are

seen and over $30 million and spent 3 million and sffinished first. >> do you think he's taking a pa page. >> i think it was that i think it started before that when he felt like it was either going to be his break out or his waterloo and he needed to get big in new hampshire i don't think he's spending nearly as much. >> bernie is at 80 b cents buttigieg is 18 cents. >> kamala harris, corey booker. >> who dropped out. >> corey booker. michael bennett.

>> spent how much? 19 million. >> oh, okay. >> it's andrew yang. >> what's the point? couldn't we have -- we could have split it. >> couldn't we have -- >> supporting the local. >> that's what we want to do, support the local media. >> someone has to. >> let's welcome new hampshire governor thank you for joining us you make some interesting points about bernie sanders you don't think his popularity is because of how close he is in the neighboring state. you say it's because -- well, maybe because new hampshire people know him and feel that he's genuine and that's why he is going to do well.

>> yeah. i mean, look new hampshire is a place where you have to earn the votes. person to person we have to look you in the eye and republican and democrat bernie is as socialist as they come but at the end testify day he's pretty unabashed about it he doesn't change his position he is what he is and there's something refreshing to the base elizabeth warren surged but she placates and panders and is a phony. tom, you're just talking he spent $20 million and all he really achieved is annoying the entire state he wants to talk about being a good economist that's the worst return on investment so you can't buy your way in you have to spend time person to person here. that's why bernie does well. that's why trump does well here frankly because what you see is what you get. >> i understand all of that. is that -- what is on your license plate? is that live free or die >> live free or die. >> it's how we live here it really is. >> that's what i mean.

and they're going to support a socialist. >> bernie got 60% in 2016. he will be lucky to get 30% this time around. you have more moderates that have trying to be moderate he's going to surprise a lot of people today biden, you know, buttigieg is socialist. he comes off as a moderate and it's ultimately going to leave to a brokered convention it's going to be a wwe match up as they try to figure it out and they're not going to be able to. and with the strong economy that's what is going to give trump the momentum to win in november. >> i won there 6-2

>> basically, i think all of the folks voting there are all in the same family. so, you know, if they had bloomberg on their mind they're going to vote for bloomberg but he has thumbed his nose here in terms of new hampshire he's trying to buy an election which the progressive socialists are not going to allow an out of touch white old billionaire buy his way into the nomination. he'll be influential because he's going to get a lot of delegates as will biden and the other candidates and they'll have to figure that out but i can't see nationally bloomberg walking away with this thing the socialists pushed pelosi around they're going to push bloomberg and biden around i don't care how much money they have. >> do you think when it's all said and done bernie sanders is going to be the nominee? >> i think that's the most likely scenario.

but it's going to be ugly. they don't play well together those two sides and i don't think they're going to magically get it together all of a sudden right before november. so it could be also somebody that we don't even know. it literally could be a candidate that isn't running that's how brokered conventions play out it's going to be exciting on their side but in the meantime we're focused on the economy we have a booming economy here in new hampshire a lot of states are doing well economically that means more money in people's pocket for themselves, their naeighbors, their community. that's how they're going to vote in november because it's in their interest to secure that for themselves their family and their future economy does drive what happens in the ballot box. >> a brokers convention could be the best bet for bloomberg he's coming at this very unconventionally. >> it could be i've never had a brokered convention with a billionaire that doesn't care about his billions and will spend whatever he needs to within that medium

i don't know how that will work. it's going to be interesting to watch. that's for sure. who knows. who really knows i think warren is going to really start falling off if biden doesn't do well he has to put all of his money into south carolina win south carolina and give himself momentum to win some of the southern democrat states that he should do well in. bloomberg is spending a fortune in places like texas and massachusetts and other states now. he could not win in the general but could get him to the nomination. >> all right we had jud on earlier. former governor. he still says new hampshire maple syrup is better than vermont. so that might be -- >> he's never wrong. that's what i heard. he's never wrong i'll take our maple syrup over vermont, either way we're both making fun of new york's maple syrup. i can tell you that. >> thanks for coming on. maybe we'll check back with you after we get the results.

>> absolutely. i got all the answers. it's the benefit of being governor. >> you're never in doubt anyway, thank you. >> fits in with the rest of us. >> and all the people we interview. >> all right let's turn to one of the morning's big premarket movers shares of under armour are under quite a bit of pressure this morning. he is the senior equity research analyst and lots of people that i talked to said they're expecting negative surprises here and what really caught people off guard and why is that down 13%. >> good morning, becky. >> look, as i look through the report today, do i think the big message and i think it's why the stock is down like you said 13% is that with underarmor saying that the repositioning or the strategic repositioning that we

have been talking about for the last couple of years is not over and frankly, potentially moving into a more aggressive phase now under a new ceo and it doesn't surprise me. i know that i have been on your show a bit and we talked about under armor. in my mind, what's happening here is under armor is attempting to reposition it's brand against a much stronger nike a much stronger and wider dispersed lululemon and we're seeing this in the results >> one of the things they said this morning is they may not proceed with that flagship new york store i guess that's the space on fifth avenue that used to be occupied by fao schwartz this is the new ceo saying wait we can't do this >> well, it's interesting. what i thought was interesting or odd in the release today is that the initial 2020 guidance was down beat and that in

addition to that and talk about the other strategic investments. i'm going to understand this correctly that the flagship store is 225 to $250 million which is expensive that's a lot of money. what they're probably saying is our brand is where it needs to be it probably does not make as much sense, at least now to invest that kind of money in a brand building effort. >> what do you do with the stock today if they are putting off what they'll do. would you buy the stock on a dip like this or do you need to see a lot more of what the plan is. >> as i talk to our clients there's been a decent amount of optimism out there lately. that underarmor is turning around that optimism needs to get out of this stock.

i think. it's nike and lululemon. >> in terms of what you think it's worth at this point, it's $17.80 right now. >> it's hard to say. if you try to value it on its earnings basis, we're looking at next year, it's obviously a very depressed number some call it 15 cents of earnings. >> thank you. >> coming up, samsung's latest bid to keep the crown is the world's number one smartphone maker by market share. plus the chief operating officer on the coronavirus scare the 20th anniversary of jet blue's first flight. as we head to a break, check out shares of sprint and t-mobile.

>> this looks like this is official at this point just released the statement from the judge. the ruling from the judge on this. >> we'll be back as we dig through that report. you're looking at sprint stock up 63% back in a moment it's them, calling us. it's going to be a week before they can get through on these roads shhh, sorry, i didn't catch that. i said ask how soon they can be here right now? what's now? he says they're surveying our property now they're probably at the wrong house i don't see any hovering his name is hovering? look up? by automating claims with machine learning and analytics, cognizant is helping insurance companies advance how they serve even hard to reach customers. cool ♪ before we talk about tax-s-audrey's expecting... new? -twins! ♪ we'd be closer to the twins.

change in plans. at fidelity, a change in plans is always part of the plan.

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a federal judge approving the merger between t-mobile and sprint it rejects an argument that said it would violate anti-trust laws and raise prices you're looking at sprint stock up about 64% on that news. and until this very moment, we did get reports last night as i was on the phone with folks that had gotten an indication from the judge's clerk that the decision was going to come and be favorable to the companies. they were going to try to dig through that decision. >> they don't know. >> but as of now, and i know there's a lot of folks digging through it right now but they are going to do it and see if

there's anything else. >> can we split -- >> looking very quickly. >> can we divide up. >> directed to enter judgment in favor of defendants. telecom, t-mobile, soft bank and sprint >> it does not appear that way i imagine there's going to be many, many, many pages. >> delegate. delegate. >> but this is a huge decision in the world of telecom and a huge impact for softbank all the wall street banks that were waiting on this and the hundreds of millions of dollars in fees that are associated with it and then of course consumers and what is ultimately going to happen to the product and pricing. >> give us a couple of minutes. >> it's 170 pages. >> yeah. >> give us a little bit of time.

we'll come back to you. >> in the meantime, samsung is the world's top smartphone maker by smart share and it's expected to unveil the newest flagship device creating renewed competition with apple josh lipton joins us with more from san francisco good morning. >> so becky, it's that time of the year samsung's big show in san francisco. here's what we expect. new phones, specifically the new galaxy s-20 line-up. three versions thought to be coming with 5-g support, updated cameras and processors also the new folding phone samsung still does reign supreme controlling 22% of the market according to research firm idc but it is facing increasing pressure from rivals like

huawei we'll also see an up grated versions of samsung's new wireless ear buds. it has a broader manufacturing footprint but importantly like so many other tech companies it's got components from china too. back to you. >> thank you so very much for that meantime -- >> this is pretty interesting. >> it's a fascinating document. >> the guy writes about how both sides get their policy experts and line-up and it's hard to tell who is telling the truth and it gets down to competing crystal balls and it's pretty interesting reading. i don't have anything new but it's interesting. >> it is 173 pages and we'll go through it but in the meantime i want to change gears right now celebrating it's 20th

anniversary of the first ever flight today joining us right now is joanna >> i was on a flight about 20 years ago. i love jet blue guy through and through. >> appreciate your loyalty. >> congratulations. >> thank you so we're focused on working with the authorities and the government to make sure that we're following the protocols around customers entering the united states and making sure

that our crew members understand the protocols and we're keeping a close eye on it so i'm seeing conflicting views out there. a lot of people take it. >> bring the clorox wipes. >> way before the coronavirus you were a wiper. >> i have a 3-year-old whose hands are always in her mouth. i don't know how to control that. >> if you bring your own wipes you can always make something cleaner with wipes i have a young child at home as well i have been known to do that on occasion as well

>> boeing 737 max. what do you think? >> jet blue doesn't operate. we operate airbus and 190. the airline industry is such a safe industry notwithstanding the tragic events involved with boeing we're all watching closely the return of the aircraft the regulators and the operators will not fly that plane until it's safe to fly again and stay tuned. >> this might be an issue that you weigh in on. >> have you been following this? do you know what i'm about to say? new york state. >> new york state. >> if you're a global entry, do you know about this? >> i don't do it. >> no it's because they're cracking down. >> what do you think of that >> the background in terms of how the department of homeland security validates the information that goes into

global industry system that is ultimately where we need to focus on and ensuring that the u.s. government and federal government is comfortable and confident. >> so this isn't retribution to new york state new york state put them in a bad position. >> i'm going to bipine on what e policies are but we're focussing on the regulations that the federal government issues >> that's the experience we look for customers having we offer free wifi we're the only u.s. carrier that does. >> it's good quality. >> it's great quality.

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breaking news, it is official a federal judge approved the merger between t-mobile and sprint. this rejects an argument that said that the deal would violate antitrust laws and raise prices. if you're looking at stocks right now, t-mobile up by 7.65%. just like before the deal people still reading through all of this it looks to me so far i haven't seen any sort of reason. >> it doesn't seem to be the one thing that i was going to say if we can pick it up, can we look at shares of at&t and verizon this morning because that's an indication of

pricing. >> the bad news is that the market is saying all of this is going to get rationalized and great for the investor and bad for the consumer. >> i would also say look if prices go up but it means that that money is reinvested back in to build out the next network that might serve not only the consumers needs but also the governments. >> sure. >> if verizon -- if i saw verizon and at&t down today because we all thought that now sprint, t-mobile, the combination was going to be a more powerful competitor against them that's reat

you can say prices went up how much would they have gone up if this merger didn't take place. >> meantime, we have remarks set to be delivered by the fed chair later this morning this was a monetary policy report sent last week but today powell will tell lawmakers that the fed is closely monitoring the outbreak for any signs that disruptors in china could spill over to the rest of the economy. now powell does seem satisfied with the level of accommodation that's in the market he said the current stance of monetary policy will likely remain appropriate if the expansion evolves as expected.

powell said this is more of a technical change overall, the fundamentals of household spending look solid. even though business investment declined residential investment is picking up. he also provided a little bit of color around the strong job market he said that job openings are plentiful and employers are now more willing to hire workers that have fewer skills and train them and that's giving new opportunities to low and middle income communities and ensuring that the gains in the job market are being shared more roadly

joining us is jim o'sullivan also our very own senior economic reporters and let's start with you first what did you hear from the headlines that jumped out at you the most >> rerepeated the phrase saying they would change policy if there's a assessment of the outlook. think about everything else that he said in context of the statement. what would it take not hearing that because we're hearing two different things the first is that there is a new challenge from the corona virus. trade problems have receded but other problems remain. none of this seems to amount to the idea that there's a reassessment because the economy

is resilient but it bounced back in the second quarter and the jobs numbers together with the bounce back and the business surveys and the u.s. economy is resilient in face of the challenges that it has so there are new changes, new challenges outthere and at thi point when you look at how resilient it continues to be and also it's the impact of the coronavirus will be fairly modest and more important and

temporary. but if it peeks in the next month or so and it's coming back for the second quarter this should not have a major impact on the trend and the fed will ease again. >> we're not convinced that trade uncertainty has disappeared and domestic and political uncertainty is probably only going to rise. and i think there's signs of strains in the profit numbers. because they also picked up a little bit at least and over time we'll see more slowing in corporate spending and employment as well as capex on the soft side. >> there is a bit of a problem here and it's not one that's

immediate. and looking at the july futures 57% chance of a july rate cut. i'm not sure that what powell says today is supportive of that i'm not sure if that's underpinning equities here the fed is going to have to guide the market or the market is going to have to come off where it's priced for future fed rate cuts. >> if the fed did take action what do you think it would look like rate cuts or another sort of stimulus ballooning the balance sheet? >> well, i mean, the fed is sort of increasing the balance sheet

and i think they're far from another qe round it still has several cuts remaining. it's important to note that he sees inflation moving back up to 2% in the next several months and that's important because some of the older numbers and the inflation number back up to its goal and that's going to be the upcoming rate cuts as we get closer to the summer then it's going to have to be that. >> steve, i would add to that that i think the way to look at markets right now is markets are

always probability weighted averages of the possibilities. and they're doing their review but they told us already that they adopted some form of average inflation targeting which means they want to see inflation go to at least 2.5% before they tighten again. in terms of the possibilities over the next 12 months either they sit here or they ease markets are reflecting the risk toward easing. there's clearly much more of a risk of easing than tightening we have been keeping a running survey we have 1-2 as the average. >> we have 1.6 we haven't made an adjustment

for coronavirus. that does allow specifically for .4 from boeing although in the other direction you're getting a bit of a bounce back in auto production. that's what i with was going to say. if it turns out to be contained and if the 737 max is back up how quickly could that change? could we be looking at a stronger economy heading into the back half of the year? >> q-2 should be better than q-2. but more important is what happens to the labor markets. >> i would also watch the business surveys i want to see if this trade deal does bring back this confidence and could bring back capex >> that's what we heard from kate rogers this morning from the small business

association. thank you both >> q-e 3 and they want a hewy ten and i saw him out there. saw him and he has a new album he told me about it. supposed to be great he stopped touring. >> it's the first new album since 2001 which he introduced on squawk box. it's coming up february 14th. >> is he going to come on and introduce him here >> he should i thought it was funny someone said i'm so sick >> thanks for that joe. >> it's more for the monetary policy discussion. >> it's all good, joe. >> i'm a huey fan. >> we're huey fans

never mind thanks. >> when we come back, are we still just scratching the surface of how much content we'll all even actually stream we'll bring you data out this morning. stay tuned you're watching squawk box right here on cnbc >> i was looking but in my mind i'm still 25. that's why i take osteo bi-flex, to keep me moving the way i was made to. it nourishes and strengthens my joints for the long term.

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as is it streaming wars heat up a new report is shedding light on what is the front runner just how much content we're all consuming. julia joins us with more on that. >> good morning. well we are consuming more content than ever before american adults spend nearly 12 hours a day connected to media as of the third quarter. that's an hour and a half more than the year earlier quarter. so the big question is what are people watching or doing well, live tv has actually declined by 17 minutes over that year to just less than 3.5 hours a day. the growth is on time spent using the app or a web up over the prior year and the amount of

content available continues to grow up 10% over the past year to nearly 650,000 unique program titles now a tenth are available only on subscription streaming services and 44% are available on ad supported streaming services now nielson reports that just 19% of all tv video viewing is happening on streaming with netflix in the lead with nearly a third of that streaming time peacock could be hbo max there does seem to be room for services, only 3% of people polled say they plan to decrease their streaming usage or downgrade that adow downgrade their plans. >> a unique view on the potential hit to china's economy from the coronavirus take a look at the shares of t-mobile and sprint. federal judges approve the merger between the two

companies. also minor minutes between the carriers and american tower you're watching squawk box on bccn 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. mastercard needs approval to begin setting up a domestic bank card clearing institutionment this is a joibt venture between

the credit card company and the chinese company and it follows last month's u.s. china trade deal remember the financial services area was supposed to open up after the trade deal was reached. the president and ceo of mastercard says that within a year the company will be able to apply for formal approval to begin domestic bank card clearing activity. >> just under an hour until the opening bell on wall street. dom joins us with a look at this morning's key premarket movers and we have a number of biggies. >> big analyst calls out they're moving stocks around let's start with shares of facebook that stock is down just about a percent or show premarket on volume the social media giant and fifth biggest market value company in the s&p 500 is getting downgraded by analysts to a sell rating it was a prior hold. the target price gets cut to $180 it was 215 they cited concerns over

increased regulatory risks and risks to advertising trending spend so those shares are off in an uptake. next up shares of nvidia up 2% in premarket 176,000 shares of premarket volume being helped along by analysts that upped their target price on the stock to $300 a share. it was 250 they cited better growth trends and cloud computing markets though coronavirus is still a wildcard for the chip industry overall. and then you've got, we're going to end here, on shares of crowd strike up about 4% premarket roughly 84,000 shares of volume after the cyber security and cloud computing company gets upgraded by analysts at d.a. davidson to a buy rating and target price up to $78 it was 58. they cite better traction for key products and also better overall demand

for some of the products so overall crowd strike up 4.5% back over to you. >> thanks. let's talk more about the markets around the world the impact of the coronavirus and how home grown tech giants may be providing that country a lifeline joining us is the chief global strategist at morgan stanley investment management. rushier, the rest of the world will outperform the u.s., the equity markets or economy? >> that's what my note was about the top trends of the 2020s and the whole pattern, this has been america's decade by far in terms of the american stock market over the last decade up 250% all the other world stock markets on average are up 50% or 60%. we've never seen a period of outperformance with america with the rest of the world in history. the american stock market today is relative to the rest of the world is at 100-year high both in relative price terms and also in terms of the valuations

so the whole point here is that what works one decade really works so well in the subsequent decade that's the history of the last years, japan in the '80s, you bet a parabolic move, all things fade america is 66% of the world's stock market capitalization. the american economy is 25%. huge disconnect. i think that is bound to narrow in the coming decade >> you're not saying that the u.s. economy on a relative basis underperforms the rest of the world. the stock market which could be based on the relative outperformance the last ten years in valuation that it will not. are you making a comment about the economy itself underperforming the world or no? >> probably not. because i think that america still has enough advantages to keep it going but what's really sort of shocking to me is the disconnect which has opened up in terms of 56% of the world stock market cap in 25% of the world's gdp. >> you talk about populism,

nationalism, things like that, which make domestic companies around the world more attractive than multinationalism. >> yes, i think we are in an era of deglobalization, leading to greater localization, something which we are seeing across markets now, in terms of private labels, smaller brands, beginning to make a comeback the same companies which are getting edged out by these large platform companies and using those platforms to try and sort of spread themselves and also you're seeing protectionism go up everywhere, across borders and it's interesting, places like china, how the mood shifted that five, ten years ago, owning a u.s. brand in china was aspirational in terms of having a global and u.s. brand. today they're rethink being owniown i rethinking about u.s. brand the rise of nationalism, nationalism, politics and economics intersect is fascinating.

china is a classicexample of that >> smaller companies, although i'll come back from smaller companies although the top ten world's largest companies will be new names and i'm wondering like who >> yes that's always a question here is the history for you. if you look at each decade the top ten companies at the end of each decade in the subsequent decade nine out of the ten companies tend to change the whole point is today we start of extrapolate the top ten and have incredible faith in the companies, dominating, disproportionate share of the global market in terms of the stock market gap the history of markets is one of churn. so the last time the u.s. and technology dominated in such a similar way was 1999 seven of the ten largest companies in the world back then were also american and also technology >> yes >> of those, only one today is in the top ten >> microsoft

>> exactly >> only microsoft. every other company has changed. back then if you look at it, we thought entity, nokia those were the behemoths. >> amazing to reinvent itself. >> exactly that's one of ten. all the other companies at the end of each decade, every single decade nine out of ten companies have changed microsoft is the only survivor amazon wasn't even in the top hundred at the start of the decade facebook, netflix, these companies were not even in the top 500. >> you're smart but if you're really smart you tell us which companies will be this time and then we could buy them >> the big strategic call -- >> could you give me one ruchir now that will not be there ten years from now alibaba? >> alibaba is already in the top ten. >> somebody else then. >> alibaba and ten cent are top two companies which are there. >> let me ask, one in the top

ten that will still be there ten years from now >> peloton >> i expect it will be one o the chinese companies. >> really, no facebook >> i doubt if big tech will survive the way it is today. that's what i said in the top trends of the decade >> sprint, t-mobile? >> they're not in the top ten today. could they come? possibly >> no, they're not anyway, all right, ruchir, thank you. he's a thinker, and a couple other things in here that are interesting, but i think we got the main points. we appreciate it >> jim cramer at the new york stock exchange, lots to talk to him about. we could talk about sprint t-mobile but i want to talk about under armour and what you think investors need to do here. >> wow, fourth straight decline domestically talking about mid single digit decline? you know, i have to tell you, i'm kind of blown away at how bad it is. i was trying to figure out, do they have to sell themselves

they've been completely outflanked by nike and by adidas, and this is a new management team, and i like them very much, but geez, i got to tell you, andrew, this is just a real pancaking and everyone's going to have to take it down and you start wondering, are they just the odd man out? are they existentially necessary? i think this is a great company but sure not coming out. >> who would you put as a potential buyer for this business >> look, first of all, i know there's a class of stock, kevin planck doesn't want to sell. i don't know what the solution is and it's driving me crazy because i have not met an executive as hard charging as kevin. i really want him to win this new guy he's got, frisk, he's terrific but just not working and when it's not working, like matthew boss downgraded it a while ago saying listen, there's just no path

there is no path here. and unless someone, unless t-mobile comes along, it ain't happening. >> okay. jim, we're going to see more of you in a couple of minutes on "squawk on the street. reminder, don't miss cnbc's special report tonight "outbreak: coronavirus." r ne in 7:00 p.m. eastern fo the latest on the virus and impact on global markets we're back after this. woman: what does the word "partner" really mean? someone i can trust. (impact, click) who is with me for the long-term. who understands i'm dealing with lives,

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you're going to see right now futures up across the board about the highest levels all morning, dow futures up by 130, s&p up by 13, the nasdaq up by 51 see you tomorrow time for "squawk on the street." ♪ good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. it's a big morning fed chair powell testifies before house financial services committee in about an hour meantime, more corporate impact from the coronavirus, this time it's under armour guarding down. and the dunlg approves a $26 million t-mobile/sprint deal david has details. >> we learned about an hour ago as we learned late yesterday would probably be the