i want your input on it. "squawk box" begins right now. ♪ good morning welcome to "squawk box" on cnbc. we are live from the marketsite in times square. happy valentines day no red but some green. dow indicated up about 60 points, s&p indicated up about 10 points and the nasdaq about 38 this comes after a slight pull back yesterday the market was down. s&p off by 5.5 and s&p by 13 so there was declined and we'll see how things shake out today >> you'll see the 10-year is

yielding back below 1.6% and below at 1.957 we'll get january retail data coming up at 10:30 eastern time expecting an increase of 0.3%. february read on consumer sentiment due after the opening bell bit of a light day on earnings we'll hear from canopy growth. see how high they go joe is giving me a look. >> leisman is writing your jokes now? >> astrazeneca ceo joins us live >> we start with coronavirus and viral video. i want a new name.

it is in all of our minds now. those numbers, 17,000. we'll have azar on today >> i don't think it is surprising i think we thought for a long time it was really underreported or unable to track >> the things i'll ask alex later is what i asked the gentleman yesterday heading up some of the efforts in new york city, are we preparing for testing people if it comes to that? i don't want to think it will come to that because it will mean in this country we need to test people. i hope it doesn't. >> the official from here in new york city, i didn't like his answer get test kits prepared and masks prepared the hope is you never need them. >> it is conceding it could come here bigger than just 14 cases

>> both new york city's mayor and new york state have said they suspect it is already here. back to business a federal judge has ordered a block on the government's jedi cloud contract funny that initials are jedi >> those aren't the droids you are looking for? >> it was awarded to microsoft amazon filed a lawsuit said the evaluation process included unmistakable bias. you can read that as president trump and jeff bezos the court granted the injunction and told the company to earmark $42 million for any costs in damages that could be incurred if the courtrooms. amazon is speaking to depose

president trump as women as current and former secretaries of defense disappointed with the delay but believes they'll get the job and move forward with the work this is a big decision and it really is trump versus bezos and bezos versus trump >> you can view it that way. >> the whole lawsuit is bezos versus trump >> i thought you were saying it is a given that trump said to give it to microsoft >> the pretense is that trump gave this over >> i know. oracle wanted it too nothing to do with oracle. there are other companies that want a piece of this business. >> the issue on amazon was that

they were supposed to get it >> there could be a case made that they gained the sustain teem to their advantage. don't look now but jeff bezos might control every aspect of your life one day. i don't have a problem for him doing everything in my life for me >> you do have a problem if the president dictated -- >> yeah. he doesn't leave him a lot of fingerprints >> if amazon loses, has to pay the $42 million, was it worth it if you were a share holder of amazon, would you say that was worth it >> this is the equivalent of fighting on the football field, should you call the challenge.

>> about the same as losing a time-out >> exactly i would say, yeah, it is worth the challenge. we'll see what happens with it i don't know the when. >> i was surprised -- >> look, becky i like his hair like that. you look tussled you look for rugged to me. >> my hair is a little out of place. >> it was before now you are back to andrew >> you've told me you like my hair like that too a little less perfect. >> maybe because he's a little less of a pervert with you >> you were just in a heart with him. >> okay. let me tell you about huawei it is valentines day

love is -- >> that is andrew's red tie. that's as good as you could do >> you don't like bright colors? >> i do but i wore a red tie last friday because it was heart healthy day. it is really my only genuine bright red tie >> i don't know what that is >> it is like a wine brown >> suit supply a company i like >> it sounds cheap that doesn't sound like you. >> meantime, huawei >> sounds like, you'll like how you look >> not men's warehouse >> suit supply is sort of like

and in between not j crew. >> you realize this is not a commercial break huawei said the justice department charge of stealing and conspiracy in an attempt to damage its image the trump administration issuing a 45-day extension to allow companies to continue to do business with huawei >> this is a big story these are the charges laid out we've seen it reported to have the department of justice pick it up and run with it it is something we'll be following throughout the entire arc of what happens with it. for the second straight day, the number of coronavirus cases confirmed has shot higher. authorities have reported more than 5,000 new cases and 120 new

deaths the death toll now stands at 100 other people because of the counting in the province the biggest hit has been on the cruise liner quarantined some passengers were allowed to disembark and allowed to quarantine on shore. focus to older passengers and those with windowless cabins >> it probably doesn't come as a surprise that royal caribbean has warned of trouble ahead. it has canceled 18 cruises set to sail in southeast asia. that would an impact on the year by 65 cents. the firm added if it had pulled the rest of the sailings, that would knock another 55 cents

off. this comes after the report that he couldn't rule out a recession for the city state singapore is bracing for an economic hit very dependent on trade and tourism. the country is expected to unveil measures next tuesday in beijing, business is attempting to get back to normal apple opened five beijing stores today. they had in place a lot of prevention measures. plenty of crowd control, one entrance everybody was beg funneled through temperature checks, limited hours. only seven hours as opposed to 12 it was surprisingly busy but not as busy as what you would expect on the afternoon of valentines day in china guys >> eunice, thank you

>> that could go into a weekend now. i don't know i can't tell can you tell yet which side of the mountain are we on still going up or are we on our way down, eunice, do you know? >> it is hard to know. the figures keep changing. the local officials double counted and tha t is raising a lot of eyebrows. >> it just seems hard once something gets out to stop it. we've done it with other epidemics. when you are talking 17,000 numbers and one person can infect how many. it gets scarey >> you think of how much more we travel increasing flights, travel and

trains >> coming up, tesla shares are on the move again. still up more than 85% since january 1. you've got to remind me how much money he makes if it stays above $100 billion he could be the richest person on the planet. remember we thought he was doing us a favor a round up of calls on the stock next he's happy plus we'll run through some of the morning's biggest earnings movers including roku, nvidia and expedia. stay with us what's important to you.ow saving for ava's college. being able to retire on our terms. taking care of dad. why ameriprise financial? my advisor cares about my personal goals. he gives us comprehensive advice. i feel prepared for what's expected in life

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welcome back to "squawk box. want to run through some big names. starting with tesla. headlines might have crushed its stock a few months ago now being slugged off. the buy or hold rating here to chat with us the director of institutional

sales, cnbc contributor. how do we handle mr. musk. >> is it a car company a solar company? an ai company? a battery company? it is all. that's what the chart indicates. here, when with you go back on this level way, way back. >> there are shorts that indicate this is crazy >> the problem is that it is not short coming anymore it is only two or three days that's not an asset anymore. look here. this was a stock going out of business it was going to lose everything. from there, you end up with this base built in the stock. you come off the back. you get the going broke off their back, you get a little ripple here. you get another base, the

explosion and the move how do you trade something like this you have to look back at reversions we start here with this base i ask you where did the move start? you could say it started here. you could say it started here. you'd all be right you have to look at the reversions you look at the major move and the half way point on a lot of these things that brings you up here. so around $600 around $600. if you want to keep a close stop on your money here you shave to go with tight, roud numbers. think 700. think about moving after averages, they are useless with this stock >> how does retail play on this

differently? it plays along here. and how to reposition. everything in the world of stock trading is about positioning this tells me everyone was off sides because they thought it was going out of business. this is where you have the explosion. everyone thinks this is crazy. what if you start talking about these stupid numbers like 1,500 for tesla. could it happen? absolutely >> what about the $2 billion race had to >> had to. why wouldn't you >> should have done more >> you think it will be $3.5 billion why not more >> everyone came down on me for saying he wasn't going to do the raise. then he did it to do an explosive one, he would have had that much more

momentum >> let's put roku up there that company had earnings. >> very interesting chart when you look at roku everyone counted this one out. when look at where we are stemming here. this is the latest if we go a little wider back on roku, here is where everything happened around 160, 176 was the high down to about $100 you want to get to the middle of that move, that's your baseline. >> about $130, $150? >> the baseline, the real number to focus in on is about 135 area ish is where you want to stay focused on that. that's your bareometer we exploded out of that.

what is roku there is so many streaming entities to get involved with, i want to be the guy who makes money off of all of it and roku is the place to be >> happy valentines day, sir >> i wore my tie >> no red tie. >> it is a sad valentines for all the people who don't have a valentine. >> meanwhile, anthony wood of roku will be on squaucwk ali today. waste management ceo and which tech sector will he fall in love with check out shares of canopy

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got it. servicenow -the smarter way to workflow. . somebody came up with this, one man's trash is another man's treasure joining us now to talk more about north america's top trash haulers. i would have said it like this, a lot of people have speed dial,

doctor, lawyer, therapist, hair colorist for me, garbage guy is up here all you need to do is be in a place where they go on strike and you realize. you do have a stake in a shanghai company there any effect there with the coronavirus? >> you don't do anything with this >> no. as someone involved in medical waste disposal here, is it a

daunting thing to deal with this explosion of what is happening over there >> i think it is a daunting challenge not just in china but around the world we are always being reached out to by others and certainly china is no exception. one comment here in the fourth quarter guidance for 2020. were they expecting too much we projected 5.2% growth >> that's pretty good. is the midpoint of the range below where analysts were expecting?

>> if you go off the fourth quarter with a couple of one timers in it if you add those back and then look at 5.2% growth, i think most in that general range, i think we had pretty healthy guidance, that's all pretty good for 2% or 3% economy >> overall, stock has been doing well your efforts are focused on doing what you do better the demand goes up with a strong economy but it is kind of flat year-to-year >> the stock has quadrupled. really what you said, it is not really anything super exciting it is efficiencies and technologies to the company and applying that to our sales and

operational metrics. it is not anything super sexy but surhas been sexy on the stock price. >> right and collecting garbage better and more efficiently a lot of people look at recycling. this is still demin muss like $12 million on $4 million >> people still want to talk about it we are committed to it we are committed to recycling. it is a good thing for the u.s. and the world. we are having to change the business a bit it is still small relative to the best of the business >> do you really do better in a strong economy do people create more trash? >> i'm not sure at their houses. a big piece is industrial and commercial >> i guess you love horders.

they removed 8,000 pounds of trash from someone's house yesterday. horders are probably not something you like we typically limit how much you can put out. >> what would you do it is on grudge. it was not on huffington post. >> if i dejunked, i'm afraid how much i would take out. >> jim, ready for anything thank you. i think we got some good info. thank you. when we return, we'll talk about an airplane passengers right to recline and look at a passenger hitting the sit in front of her as the seat in front pushed back to him

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good morning u.s. equity few tutures have ben reported as higher indicated up by 61 appointments. s&p up by 9.5. and nasdaq by 33

shares of mattel are trading higher a decline in infant, toddler and preschool toys the ceo of mattel will join us later. >> shares of yelp fell short company announcing an additional $250 million share buy back and a new cfo. a viral video is stirring a heated debate. showing a tall man in the last row of a plane, the woman in

front of him reclines. others saying if she bought the seat, she has the right to decline. i am in the camp he shouldn't be punching the seat. i don't think there is much of a call here. >> i get it because of that backseat i kind of blame the airlines >> something has to be seriously wrong with you seriously wrong with that guy. someone needed to tell that guy what to do >> having said that, let's take the punching out of it what do you think shall should she have put her seat back

>> and why have the button on it and he could have asked her to move up a little bit but this is a case of the airlines cramming people in. >> you are sitting there, when the person moves back. it doesn't come close tore my legs he had his tray table down and it looks like it is right up against him. >> there are road warriors out there who do a lot of work >> but what he's doing is unacceptable what would you do with him should he be carried off a plane? >> can't we resolve things more civilly. >> like mayor mike and president

trump and resolving things more civilly. i don't know -- you can get arrested for anything. >> can you get taken off a plane for anything >> i don't know what i would have done. i don't want to think about it it gets me sort of -- >> nervous >> anxious i don't want to get anxious on a friday, on valentines day. wait until tonight i'll get anxious did i do everything right. all the flowers? >> what would you do if that backseat and if you were in her seat, would you have reclined back >> sometimes you say something and then they don't. >> i like that you think you know what goes on in coach >> i've seen you in coach on monday >> i know all about it now kids in first class, that's a debate worth having. we can talk about that all day

long many of our viewers know, we haven't had that debate in a while we will soon flipping back in time. folding phones momming a come back the galaxy z maybinglaunching. we'll have a look at the device. our first interview with delta airlines ceo big announcement from him. you can watch or listen to us live or on the go. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from finding out what's selling best...

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flip phones are back

here with his first impression you have the best job. >> i get to play with toys travel and play with toys. you flip that. pop it back open with a 6.7 inch screen it is a little chubby. i think because the way they do a battery now. there are two batteries on each side one of the cool things, you can set it to prop up. certain apps, you can set it on your desk and chat with somebody >> i actually like it. >> it is a really pretty phone it has a glass screen as opposed to the galaxy fold, which had a

plastic screen and to the hinge so stuff doesn't get inside. >> how long have you been playing with this? >> 10 minutes. i got it this morning. i played with it for 30 minutes at the show. >> how about this crease >> it will stay there. that's what we are dealing with now is the set back. in the future, hopefully we don't have a crease and we talked about whether apple will do this in the future. i think it is something we'll probably see from them apple likes to wait until things are perfect. maybe we won't have the crease and it will get the hinge right. >> i like it but my entire life is built into the apple eco system >> turn it side ways >> it does flip for videos

>> will it ever get thinner? >> i think that's juan of the goals. one of the reasons why it would get thick. a lot of people liked flip phones we went to smartphones that are getting bigger and bigger. there is a screen here that works as a view finder you double tap the power button. i think in the future, this will be the screen the screen was so

junky at the outset you can't set it down like a miniature laptop it is like an umpalumpa. >> what about for video chats? >> it looks like a laptop for a little tiny person >> if this screen just fell down it has to be solid i like that. it is $1,400 $1,380 and you don't get a lot of the technology samsung puts into other phones. you don't need 5g yet. if you spend $1,400 on a phone,

you are going to keep it for three years. you might want it. >> you have the greatest job >> he has the greatest sweaters. >> if i could just review products all day long, i'd be so happy. >> all of us would be. >> that's why i'm a happy guy. >> you are missing that. he wants me toe join your team head over to cnbc to read todd's review of this and other products when we come back, cases of coronavirus continue to climb. more than 100 deaths reported in the hubei province overnight richard tub will join us next to talk about taking proper precautions. >> announcer: don't forget to subscribe to our podcast on apple podcast or your favorite

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welcome back for the second straight day the number of coronavirus has gone higher chinese authorities reported more than 5,000 new cases and 120 more deaths. the death toll stands at 1,400 people after being adjusted lower after double counting in the province for a look at the impact on business including the cruise ship industry let's welcome the white house

physician for three u.s. presidents and now he's a medical adviser for act global general, thank you for being here. >> thank you, good morning. >> good to see you today i guess first i would ask you from your position advising presidents and caring for them, what do you see happening right now? is there a huge risk of this coming to the united states and are we prepared? >> it's easy to see the bad in this and it's important to find the good in it there is good news and bad news and we do bad news very good all you need to do is flip the cable channels and you'll see bad news, bad news, bad news, the good news is that we do good any better and that's what i want to focus on because the truth of the matter is there's not going to be a single solution to this coronavirus and it's fair to call it a crisis but we need to keep it into the context but that solution is not going to be a single solution.

it's going to be a solution that involves governments partnering globaling. governments partnering with their citizens public-private partnerships. unleashing the power of the private sector to find novel solutions and then at the ground level it's going to take individuals picking themselves up and overcoming their first and finding solutions. >> particularly from the cruise industry or airline travel business how should they be approaching this problem and are the things that they do right now sufficient that would say no if you look at the cruise line industry. >> many of them are doing what they can and that's where novel solutions will be game changers.

my life when i was with the president was to provide alcohol based jail so he didn't get an infection. the company approached me in november pre-coronavie with us with a novel solution to human nature and infection control and the key there was that it was a self-sustaining, self-disinfecting platform it uses the power of the sun to take a catalyst. it's long been approved. and to create or reproduce the body's own systems for attacking microorganis microorganisms whether it's bacteria, viruss or

organic compounds like volatile organic compounds. >> do you put it on your hands or surfaces? >> it's a three pronged approach the key to it is that whatever surface or environment you want to protect, let's say an airplane, you go in there ahead of time the company goes in there ahead of time and coats all the surfaces. >> tables and the seat pockets in front of you which have earned a bad reputation for good reason but everything else as well. that is based on nanoparticle technology and completely invisible to the human eye. >> those places never see sunshine. >> perfect which is what differentiates this company and this technology from all the rest because the technology itself has been around for decades but what they haven't been able to do is get it down to a nanoparticle size that will remain active for up to a year and develop a catalyst such that you don't just need

the disinfection of sunshine but any light would work in here as soon as the lights are on it powers the catalyst up to go through a chain reaction. >> it's not going to work in the pocket of the airline thing though right. >> so that is phase one. they could actually spray in the pocket too it's not harmful to the fabric or the floor or the plastics or to people within two hours your plane is back online. >> how many planes do they have right now? they have been in production in europe primarily in the hotels, hospitals and beverage for about two years. >> they spray it on the tv remote >> i would if it was me or spray it on the hotel card what's the thing you do when you check into a hotel. >> every one of your phobias. >> every one. >> look at the airlines.

what do you do when you get up to go to the restroom? you do this on the seat backs. how many other people before you did that and airlines, this is not to villify them they do a great job with what they have. but you wipe that down and the first time somebody coughs you're back at ground zero literally. if you have something that is self-sustaining which is key and perpetuating then it will always be there operating essentially in the background. >> i want to thank you for your time appreciate it. >> good news to come. >> thank you. >> john hope bryant will tell us what to make of the democratic primary after the first two states held their contest. plus take a look at the rest of the big squawk box line-up we have you covered on all of today's big headlines. you're watching squawk box on cnbc we'll be right back.

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plan to give back to employees. >> and market milestone madness. the push to dow 30,000 continues. oh and how times have changed since 1999 we'll find out what's different this time around it's friday, february 14th and we're all feeling the love this valentine's day as the second hour of squawk box begins right now. good morning, welcome to squawk box on cnbc happy valentine's day. love is in the air and i'm andrew ross sorkin with becky quick and andrew ross sorkin and chairman and ceo of operation hope also bringing us hope steve is with us wearing purple. it's a little bit of love.

>> we're twins. >> u.s. equity futures at this hour it's funny because to be on like the color code you want some red on the screen but you really don't want some red on the screen dow looking like it would open up about 62 points higher. the s&p 500 looking to open higher the nasdaq looking to open about 40 points higher love, hope and we just need charity. are you here for valentine's day. >> you're actually concerned about my heart and my feelings. >> no. >> you had to think about it for a minute. >> you're fine tried my best. >> i love you anyway. >> the u.s. is accusing huawei of stealing trade secrets as a

new indictment comes quickly making them a responder by saying the u.s. is attempting the damage for reputations for reasons unrelated to law enforcement. a stock offering has been priced this morning according to an sec filing tesla selling 2.5 million shares at $767 a share. revenue exceeded analyst forecast and that helped boost shares as well of those arrivals and arora and questions are emerging over president trump's fed nominee after a contentious nomination hearing yesterday steve joins us with more and you told us there would be fireworks. >> it was a good call. i wish all my calls were that good love was not in the air yesterday.

here's some of the comments afterwards he came out and told reporters he was concerned too he said i remain concerned and then john kennedy, the great orator that he is. and that was his comment the concerns center around whether the fed should be independent or the fed should act to weaken the dollar if that isn't advocating for returning to the gold standard, what is? >> what i was suggesting there is that having a stable international level monetary playing field is very supportive of free trade consistent with the principles of comparative

advantage and mutual benefit i really appreciate your willingness to serve i do but i'm going to tell you something when i read things and they say the things as directly as you said them, which i appreciate by the way and then you come in here and by the way can try to justify them, the dog doesn't hunt i'm just telling you it doesn't. >> it's not been scheduled but it's fraught with as much politics as economics. the question being is will they defy the president on the nomination it takes just one and the nomination will go down. it is interesting john that the

one place where republicans seem to have drawn a line on some of the president's nominees is the federal vefsh. let's be clear he has a bunch in and guys we had a fall on this if you can shoot it he had a bunch of successful ones and i think there's four, the chairman, he appointed, he nominated the vice chairman, corals the vice chairman and bowman in charge of community banking but then there's been a fairly long list of those that haven't made it in a variety of ways mostly never got to hearings. >> they were sort of in one stage or another of names -- and that's a pretty long list and i don't know that shelton is going to be on that wall there unsuccessful nominees but there was a question about it after yesterday's hearing. >> john, what do you think about central bank independence at this point it's been so talked about. it's been so focused on.

the president has made clear what he would like to see happen using his twitter account to tell the world. >> i think that's critically important. there has to be some place where the facts matter more than politics or persons or people or even the moment. and i think this is one of those places and one of those faces. the color is not red or blue it's green and i keep saying people vote their pocketbooks. this is the best way to keep that party going is to keep the politics out of it and i think some of these nominees intended to that really wasn't serious maybe that was an attempt to signal there's others like the vice chairman, i know him very well very serious people. but i think this is the right call. >> i think what interesting is there's been a change in the process here

and i know that because i was able to report that that came out of this group inside the white house that was doing things at the way things used to be done before in other administrations. and then you also consult with the fed. it feels like the four that haven't made it were off the top of the head of the president he read or saw something and decided i want that guy on and then came and it hasn't been the same deliberate process going on inside the white house it's changed some what the president is more out there. >> let's talk about the work you have been doing in the community in terms of trying to make sure that you are getting financial literacy and financial access to communities that haven't had it in the past. >> operation hope is now what, 150 locations and banks. >> 150 locations 30 states we're physical and 40 states we have a presence.

four main clients. $3.5 billion of money. >> that's good. >> underserved neighborhoods, we're paying their bills and we rehabilitated a bunch of people. homeowners, entrepreneurs, the guy that made the suit i'm wearing. can't make that up. >> when you come on you have that. >> it's my suits. >> the idea of people having to drive 30 to 40 miles for the nearest bank what is that like? and how does it change your ability to participate in capitalism >> time is money spend more time and more money give me more time i'll make more money. when you're in these neighborhoods you're constantly degraded nothing is efficient nothing is available >> has technology not helped to

change that to some degree what you can do on a phone but, you know -- >> access to the phone well this is the question. >> they're closing down the community banks. and they're closing down the banks because more of the banks are going virtual. and have a little bit of decorum and the fed chairman and teach financial literacy and i'll have them anyway. >> it's like when you approach the queen. the point was hey, what they're really saying was he's not a politician.

get to this point. we ran across this idea too. the computers tend to make al r algorythms you find ways to make the loans that are different from them. >> we're going back to the way it was built piece by piece, person by person copies of phone bills. that's a form of credit. it doesn't show up in your credit report. who is helping them to understand that to write a letter to dispute that if we dispute that, the law states the credit bureaus either approve it or put it off in the credit report. >> what do you make? >> there are people trying to rewrite what the fico score even is how it's defined

by the way, for folks in china, you look at what they're doing the way they are scoring people, you might have some real problems you get up off the subway and give somebody your seat and there's cameras watching, literally all of these things are going into the metrics into whether you're a good person or bad person going to pay not going to pay is technology going to help us or hurt us. >> the answer is usual technology alone will hurt us. i'll give you an example so max is a great guy. i'll talk to him tomorrow. and if they're not careful the company could accidentally bankrupt a lot of people because you can microfinance anything, a plane ticket, a karenal. and it's $5 a month you say i can afford that. because you say what's the payment and not what is my debt. so financial literacy and

coaching, now you can do high-tech and high touch and doing well and doing good. 10% of all corporates with financial coaching >> what is your default rate. >> 3%. >> 3%. >> that's amazing. >> defying all the odds and all the other stuff and it's 3%. >> and i think that -- >> we have to go. >> joe as a customer we should look at 100 million people. >> why din you jump on that? >> your daughter is much smarter than me. >> they have chapters that all -- they give $500 to these kids to learn how to invest the money. >> why didn't you jump on it >> it's not yours. you got your own thing. >> it doesn't mean that you can go to the front of the line. that's not what that is at all >> make it a point get to the back of the line.

>> take a money. >> take a money. it's already happening. >> it's valentine's day folks. i want to say love is in the air and i will say this delta airlines showing some lof to employees through profit sharing. you have to hear this. we'll discuss the new niche tiffs and the coronavirus impact and a big announcement from that company as well. you do not want to miss this check out the futures as we speak. things are looking in the green so people are happy and in love. squawk returns right aft ts.erhi

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welcome back to squawk box this morning it is valentine's day. love is in the air which is an extra special day for delta employees. the company distributes more than a billion dollars and joining us in the first on cnbc interview is the delta ceo and before we get to your big day we do want to ask you about the impact of the coronavirus and what's going on in the business and everything else. i want to go straight to the employee piece so i understand that and how much money do employees get on this

valentine's day? >> we are paying today $1.6 billion of profit sharing to our people. >> yes. >> it's the equivalent of about two full months of pay for each of the 90,000 front line employees of delta airlines. we always tell our customers that valentine's day is the best day to fly delta because everybody is in a great mood and we look forward to celebrating with them today. >> you also have a big announcement another big announcement that you're making this morning. >> yes so profit sharing day for us is about giving back. giving back the rewards to the people that have built this airline and create such great service for our customers. $1.6 billion it's a historic amount we've never found a company anywhere in our industry that has paid a profit sharing of that size. but we also know that we have more responsibility than just to share our success with our people and we are now seeing that starting march 1st, delta

airlines will become the first airline to go fully carbon neutral on a global basis. now we'll be focused on the reduction of carbon that we are investing in our technologies. clean technologies that we're using for engines and also carbon removal and the investment that we'll be making in new technologies going forward to remove the carbon that we can reduce. >> a lot of people are going to do a double take an airline becoming carbon neutral is a bit of a reversal of how we think about things given that airlines are going to be based on using fossil fuels for as long as we can possibly imagine. how much is this going to cost on an annual basis >> you're right. it's a big challenge and a big commitment i don't ever see a future that

we're eliminating jet fuel from our footprint. but what it's going to cost for us, we estimate about a billion dollars over this decade close to $100 million a year and there's no greater challenge that i know of that we need to be investing and innovating in as environmental sustainability. some of which we all participated they are doing a bit to help the planet but we have to be investing in new technologies of tomorrow whether it be ref reforestation. to investing sustainable aviation fuels. >> is this even plausible? >> i understand how to buy offsets. first of all, the great conundrum is there's not enough offsets to go around effectively. so every company in the world

decided they were going to try to become carbon neutral by paying others. there's not enough -- there's no way to do this the other thing is what happens to your competitors. you're doing great and relatively flush other airlines are not necessarily in your situation. >> you're right. carbon offsets are not the solution they are not enough to go around we need to be investing in projects that make a difference. and they have a lot of efficacy issues some places do more harm than they do good or pay people not to do harm that's not really helping our planet we hope this is something that everyone can join in you'll continue to see as you go forward more companies putting forth more investment dollars to find a cleaner future. we hope our competitors join us. this is not a race to be number one in the space

this is a race for our planet. we want to make sure that we're as open to all stake holders that want to join us on this as possible >> this is one of the coolest most progressive ceos that we have in the space right now. not only because andrew he taught me how to wear tennis shoes with a suit. but you're talking about technology isn't the best technology come up with reinvestment of your people but you get on a delta plane and why are people nice. everybody is nice. everybody has a nice attitude. he's sharing on the upside when the company does well. they have done better andrew as one airline. as all other airlines combined and here's a question, has -- this is a give away or an

investment >> marketing, third option >> repeat that >> you're talking about the profit sharing. >> profit sharing, yeah. >> the profit sharing is an investment in our people we put it in place about 15 years ago when the company was not doing well we went through a very difficult reorganization and at that time we told our people when they got it turned around they would get the efforts of their hard work and that's close to between 15 to 18% of the profits to the company and the larger or more successful our people are the better the returns are for our customers and our owners and our people it's full alignment. and unions were an adversary of management he's aligned employees with the

interest of the company. how could that not take off like a rocket if he does well they do well too. this is a new model for everybody. this could be an upgrade on capitalism itself. >> particularly in the profit sharing with employees, if you get into a situation where times are tougher there's a downturn in the economy and something has to give first the carbon neutral plan or the employee profit sharing? >> neither we are in a position that we're not like we have been in the past we were profitable throughout the entire past decade every single year this past year we generated profits of $6.2 billion we got our investment grade rating back several years ago. these are two of the most important issues that we face. first of all taking care of our people certainly the profit sharing self-corrects for that and makes an adjustment and wouldn't go away we talk about a hundred million

dollars a year it's the equivalent of about $1 per barrel of oil price impact on delta it's about $100 million for delta. this is something that we have to do. and that's also financial wellbeing inside the work place. >> there's going to be a lot of people today that can use that coaching. >> help us with this everybody is trying to make sense of the coronavirus and the impact take us inside the room with you in terms of modeling it. how does delta model out the different potential impacts and what you're going to do about it that's what everybody is trying to do now.

we'll make it really simple for you. when we started to consider and think about the harm that our employees were potentially getting into or going into it was a really simple decision that we need to exit the country and we exited it about two weeks ago. it was not easy in terms of impact it was about 2% of our revenues. we cannot ask our employees to operate in china if they don't feel safe. >> larger questions are people trying to monologue how long this goes on for i'm sure that you have experts and others inside the firm thinking about that. what the impact is even beyond the flights in terms of other traffic just around the world. we're seeing the impact in the pacific. not like we're seeing in china but there's some impacts throughout transpacific travel we're not seeing the impacts of the u.s. or any of the other regions in the world they're all staying healthy.

we're monitoring europe. and i saw the announcements in barcelona about the show that was just recently cancelled. but fundamentally the business is doing very, very well we're expecting to grow our revenues at a decent rate this quarter. i'm not sure i'll see a big impact >> these are coming back from places in asia i was on a plane on monday that come from taipei to new zealand and san francisco and brought us back across. we are stricter standards with respect to safety and cleanliness. there's not enough time the plane sat for an hour in san

francisco and there's no way that you can thoroughly clean it. >> i can't comment because i'm sure that was not a delta plane. >> it wasn't, it was united. >> but we absolutely have especially on international trips we go through deep cleaning and return every time it takes 2 or 3 hours to turn an international flight on average and we have a company that we have announced a partnership with early this year which i'm actually using light sensor technology and some of it has been previewed in coming back with planes from china for reusing light technology to keep it as clean as possible but also that we can roll through the planes but our team is focused entirely on the safety particularly on international returns. >> transitioning real quickly, tell us about recline gate the person who -- recline gate the issue -- the american airlines flight where the person reclined in the seat

had somebody banging the seat. how would you handle this situation? >> we haven't reduced ours in years. in fact we're going the other way. we have been adding a lot more pitch and a lot more seats with more space on the aircraft more premium seats we ask all of our customers to show respect to their fellow customers. we want all of them to have a great time and we generally do not see that issue. >> what is the etiquette though? if you're a tall guy and ed, you are a tall guy you are in coach and somebody is in front of you and they want to go all the way back, is it appropriate to even say to them i'm really tall or whatever it is could you do me a favor and don't go back? do they have every right to go as far back as they want they paid for the ticket. >> i think customers have the

right to recline we have been testing reduced recline and seeing response on that we have a fair amount of our fleet on a reduced decline as a result of that but the proper thing to do is that you ask if it's okay first. >> you have to ask. >> oh, that's interesting. >> i never say anything myself though. >> it's called manners. >> you don't think anything. do you think the etiquette is to ask the person behind you if you can recline? >> i think if someone knows there's a tall person behind them and they want to recline their seat, i think the polite thing would be to make certain that it is okay. i never recline because i don't think it's something that since i'm the ceo of the airline i should be reclining my seat and i never say anything if someone reclines. >> thank you. >> happy valentine's day. >> thank you for what you're doing. >> coming up nasdaq is creeping up toward 10,000 along the dow nearing 30,000

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the nasdaq is creeping up toward 10,000 while the dow is nearing 30,000 and some are

seeing some echos of similar psychological milestones in 1999 joining us now is the co-founder of investment management and we said there are maybe somebody else that said it that maybe it seemed like 1999 wow, should we run for the fences another it's year and another 30% before the bottom dropped out. >> i can't emember it was somebody. >> well, so what is interesting is that we're looking at dow 30,000 now and nasdaq 10,000 we were looking at dow 10,000, nasdaq 5,000 so the dow tripled and the nasdaq has doubled for all the talk about how tech is out of control that's a little bit of a difference

there's similarities if you look at it. some of the biggest arguments that were similar to 1999 or 2000 are you have tech dominating you have the high concentration of market cap in the largest stocks in the s&p 500 and you have growth out performing value but those are the similarities there's major differences. looking at tech dominating tech counts for about 30% of the s&p 500 right now if you include facebook and google and back in 2000 it accounts for 30% the difference was valuation it's trading for 28% premium so valuations, it's rich the tech sectors valuation is the highest in ten years but from 1995 to 2008 the

premium was higher than it was right now. >> a lot of the stocks had zero. they had zero. >> pick the concentration. walmart and ge for the five larges stocks. they're trading 56 times earnings those stocks in the s&p 500 could double and still trading at a slightly cheaper valuation in the five largest stocks were then. >> so you're not concerned that these top five stocks are trading at 47 times earnings that's not concerning. >> they're not trading at 47 times earnings now they're trading at about 28 times earnings on average. they're still more expensive but not as expensive as they were. you can make arguments that they

deserve the higher multiples they have an earning market multiple we don't have nearly as much as the five largest stocks. and it's a much larger difference and then the growth versus value trade and growth is outperforming value and it's even more than we saw. and again you had growth trading for 56 times earnings. in 2000 versus 18 times earnings for value today. it's 28 times earnings it's completely two different conversations between main street and wall street

along with a home economics class so everybody can come up and participate. >> i think any high schooler should be reading the wall street journal and when i was in high school in the editorial section and just reading the business section not even the editorial in the business section and people should learn personal finance and how the markets are generally working. the psychological milestones and based all the numbers on base ten. and they're psychological and 30,000 you can get there and it can actually be self-fulfilling and it effects sentiment at those levels and it really couldn't make any difference. >> a thousand points on the dow -- >> anyway, thank you. >> the nasdaq 10,000 >> still to come we have much more from our guest host the chairman and ceo of

operation hope, john brian and later, tesla shares jump after a $2 billion stock offering and a record share of wall street analysts are still bearish greg erwin has a sell rating and $350 price target. you can always watch us live on the go on the cross-examination nbc app. we'll be right back. when it comes to your customers' expectations,

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still to come, analysis shows that u.s. ceos spent in the quarter of 2019 leading up to the elections we have a preview leading up to the election. >> good morning. the top 15 ceo political donors 12 gave to republicans but the two biggest spenders gave to democrats. we'll tell you who they are, how much they gave and what it could at cin t ectn.leio th'somg up imagine traveling hassle-free with your golf clubs.

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impl >> take a look at their political donations. robert frank is -- what does he do he follows the money. >> the big money. >> the big money this season the nation's top ceos gave over $2 million to political campaigns. that's in the fourth quarter most of that to republicans. a cnbc analysis of the s&p 500 shows that 12 of the top 15 spenders are republicans but the two biggest donors were democrats. he was the biggest donor in the

fourth quarter writing a 5,000 dollars donation helping democrats in senate racing warren buffet gave 245,000 to the congressional campaign committee. that helps democrats protect their majority in the house. now ranking third, someone i hadn't heard of, he's the ceo of the auto salvage company and gave just under $200,000 to republican causes with 95 paid to republican national committee. now the intercontinental exchange gave $100,000 to the rnc. fed smith of fedex and greg brown of motorola solutions. this is just one quarter obviously they aren't huge numbers but we're going to follow this all the way through november. >> did anybody really say they're not taking big donors?

money from big donors? >> i think so far elizabeth warren and bernie sanders, they haven't held big fund-raisers. so i think those two you could everyone else, no. >> robert, let's continue this conversation stay with us we're also going to bring in our guest who is the co-founder and managing director of the venture capital firm and our guest host john hope brian. let's get you to weigh in on this part of the conversation. you have been voecal about supporting joe biden you said after iowa it was disappointing but you were going to wait and see what happened. >> last night was two big fund-raisers for joe in new york and we're over the top frankly and i have no specific knowledge. and it's based close to $1 million and if you divide by that $2,800 a piece. it's a lot of people and i can

tell you that the rules in both cases, two of them and they were both packed. >> it hasn't translated into votes yet. what happens what does he need to do in order for his campaign to keep going. >> he has to produce in nevada and come out close and in south carolina he has to show his stuff. >> he has to win. >> it's critical he said it i think that donors feel it and everybody is sticking with joe until they see what happens there and then of course super tuesday but i think the money is i'm sure a difficult issue and you really have to raise the money and you need momentum to do that. that's why i say last night was a very good indication that people that have been supporting him stayed with him. >> do you think this is now about personality or do you think this is about where the party is >> i think that mike coming into the race has confused a lot of

people because the kind of people that would be supportive to mike are the same people that would be supportive to biden i believe and, you know, a lot of the people, certainly new york people are all as i am and just came in a lot later and i think people are sticking with the candidate that they started with and joe is very strong last night but in the end the voters are what counts. we have to see how things go in the next couple of states. >> would mike be your second choice bloomberg. >> it's fair to say that i have certainly always been a friend of mikes and he is a viable formidable candidate and certainly his ads are overwhelming at this point what is strange is that bloomberg and who is going to be

president. and everybody else is far below. who is going to be the nominee it's still sanders well ahead of where sanders -- well ahead of where bloomberg is so it's weird. for the nomination it's still sanders but who has a better chance of being elected president it's bloomberg. >> that's the interesting dichotomy. >> take that as an example i don't think there's a chance he is going to be the candidate. at the moment joe is behind but that could change also one interesting thing is watching the bloomberg ads you'll notice that he has assumed the obama role if you see his adds the last couple of days it's all obama and mike and joe has not done that it's ironic.

joe is his vice president. >> he has that affiliation mike is trying to take that association away. >> what do you think of bloomberg's efforts online to punch back at trump? a lot of people in the democratic party said we don't want to get down in the mud. when i say mud meaning slinging mud -- >> twitter mud. >> we'll call it twitter mud, the muck, name calling, all of that stuff and one of the things that bloomberg has done is said i'm going to take advantage of every time trump goes after me i'm going to go back after him and in this world it's almost like any news is good news for you in terms of the attention you can get. he is often times trying to differentiate himself from trump. >> it's a great strategy for mike he is a street fighter

really he's a self-made guy and he's not going to take any bologna from anybody and particularly from trump you measure someone's size from the neck up which is a good comment. >> but the whole you go low, we go high. >> that was never true. >> people that said that never stayed high. they were always just as low. >> but it's not against each other in the democratic party. i mean, joe has been consistently anti-trump from the day he started until -- >> we're seeing some sniping there too. >> we have bernie supporters booing pete buttigieg when he goes on. >> that's the supporters. >> those are the voters. >> let me ask you when it comes to this idea of self-funding, bloomberg is self-funding and some people say that's money buying politics. some people say that's his money so he's not corrupted by all the corporate influence. how do you read that

it's my money so therefore i'm not under the influence of anyone else. >> for the underserved communities i serve it's a br brilliant strategy the comments were about money coming out of his wallet and money going into their pocket. how can i become a millionaire how could i become wealthy and i think this neutralizes the interest question. do you believe my ideas or do you not? joe in your comment about sanders popularity versus bloomberg, you have the emotional side of the brain and that's sanders and the question is when does the logic side part of thebrain kick in which is more the bloomberg conversation. >> i don't know, bernie has different -- different emotional responses.

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the final hour of a special valentine's day edition of squawk box begins right now. it's okay. >> good morning, welcome back to squawk box here live at the nasdaq market site in times square do i have it on backwards? >> would you stop? >> they do they think hat.

did have a very low yield. so that story continues. >> what are you looking at >> i was just looking at more of the elta

your point is correct. there's not enough if everyone decides to do it you can't do it. >> that's right. >> but you have to know, he offsets -- a lot of the offsets aren't real. >> right. >> all you're doing is paying somebody not to get rid of some somewhere. so how this all gets measured that's going to be the big challenge. >> i haven't seen any of these virtue signaling types do anything in their own life that changes the way they act larry fink down the road so you stop flying you're a fossil fuel person and you're made of carbon. you have carbon in your body >> there's a very interesting article about all of this. we have to go.

apparently it could take 50 to 100 years to get enough trees to actually start doing it and that's too late. i know that you don't think it's too late. >> living on mars with jeff besos. >> a couple of stories to watch this morning here's what we're talking about. we're less than 30 minutes away from the january reading on retail sales congress looking for an increase of .43%. that will match the performance. among the stocks on the move we have roku. we talked about the maker of the video streaming device lost less money than expected. better than expected sales and also gave an upbeat sales forecast for 2020 as he benefits from the introduction of new streaming services and you don't want to miss this. anthony wood is going to be hanging out in the gang later this morning that's going to happen at 11:45 a.m. this morning. also cancelling 18 cruises in southeast asia why? of course in terms of the coronavirus. about 65% off.

if he cancels it through the end of april and analysts have been forecasting 2020 earnings of $10.40 >> it doesn't seem like a stretch that all sailing cruises in asia would get cancelled through the end of april would you get on a cruise at this point >> i suspect they could push further than that. eventually people may forget about this stuff. >> he is going on the cruise >> yeah. okay >> i have a very little thing and i don't think that you're going to want to go on that. >> do you have a boat? >> no. it would be the size of a little -- one of those things

that are behind. >> exactly in the above ground pool. >> stocks are managing the whole near record highs while bond yields remain stuck near lows before the friday morning bell he is going to try to figure out that answer. it's a common thought that this is telling two conflicting messages stocks versus bonds. here is the relationship of the s&p 500 against a ten year treasury note over the last year what you see since the fall and especially this year is treasury yields compress down and by the way on friday since the coronavirus scare started you have seen bonds rally and yields go down as people brace for over the weekend and stocks manage to click to new highs so is this a matter of tension? is this actually a contradiction? it's not clear because what is working within the stock market are those things that benefit from a high liquidity slow growth environment

things such as tech stocks and within u.s. markets in growth stocks the question is how far can we carry this if bond yields remain close to lows right now the high liquidity growth is working for the kind of market the united states indexes reflect. >> can i ask, isn't that a little bit weird it seems to me like one of the industries that most could be in trouble with this just from supply chain would be technology. >> you would think so. apple and microsoft in the tech sector and people are willing to overlook it.

it's a temporary stutter step and it really compromises the earning. >> we continue this conversation on set with mike and alicia. she's the chief strategist at bny melon investment >> i want your take on what's happening in china and the economy there and also for around the globe do you think it's going to be worse. >> the street has the consensus that more or less the hit to growth is going to be limited to the first quarter and it's going to be about a 2% hit to growth if you start running baseline numbers you and take a life of

its own. about 300 million workers are migrant workers. those 300 million people have not been on the roads. either cars or trains or planes. so you don't have workers going to the factories right now >> the other thing is that 14% of the work force is actually underemployed so have we ever heard unemployment rate in china? we haven't the official rate is 4% and it's been 4% unemployment for the last 15 years. so running some numbers, actually the underemployment is 14%. that's a very large european country and you marry that with a huge hit to growth it's longer and sadder on the

left side than i think that the market is really pricing in right now. >> is that a problem simply for stocks in china for stocks in asia >> it winds up rippling back here if it's not confined to the first quarter. you're really disrupting supply chains here. you don't have finished goods coming out of china and you don't have all the m copoenlcoms it's down 14% at the end of january. and the coronavirus and it's something to keep an eye on. i think wall street is not modeling this correctly. >> my bet is not something that i heard around the table much at all. for the meantime, we'll just

hide in the secular growth stocks and the defensive stocks. that's this dynamic where it seems more about which things work and where the pain is administered rather than the overall market trying to readjust to this. >> and the key thing here is the recovery the pricing in is no matter how far down we go and you have to ask yours what if that doesn't happen if you look at daily traffic on the road it's flat lined 1.5% there's been no sales. if you just compare what's happened two weeks after chinese new year there's no activity at all. >> jim cramer said he thinks gdp and china goes from 1 to 2% in the first quarter. >> that's probably right china is forced to stay by the end of 2020. the official number for the year is going to come in at 5.6 or

5.7% of the year >> what would you tell people to do for stocks in the united states right now. >> if you're worried about tail risk here, this is 2019 reducts. the u.s. is the strongest house in a bad block and you have growth and earnings here and an economy picking up by the middle of the year here and we see wage growth and inflation by the end of the year. it's the same trade that you have last year. >> thank you it's good to see you thank you for coming in. >> it's a half a billion dollars job. you have to go that may have been where he thought about buying the house

165 million. >> he's a genius. >> he is he's worth $9 billion. not to say that makes hmim a genius, but he is. >> in every element he has invested perfectly. >> i have never gotten an invite. >> no invite. >> my e-mail address. >> i think they can get it. >> david if you're watching. >> new york times. >> right here. >> a new twist, elon is like give to me please. in the battle between microsoft and amazon but we're talking amazon and that $10 million department of defense contract she is on land talking to us from somewhere hey. >> well, amazon has won the first battle in it's legal challenge to the pentagon $10 billion jedi contract that was awarded to microsoft a federal judge ordered the government to stop working on jedi while the contract is being protested in court in a statement microsoft said it's disappointed in the delay

but believes the facts will show the defense department ran a detailed thorough and fair process. meanwhile, the dod warned that halting the jedi roll out will deprive our war fighters of capabilities that they need and that it's confident in it's decision to give the contract to microsoft. amazon is claiming the evaluation process is flawed and it's accusing president trump of political interference this is separate from amazon's move to depose other officials we're still waiting on that request. back to you. >> thank you coming up when we return a lot more on squawk a strategic insurance policy what the decision is in the

long-term health of the examine. you do not want to miss that the latest on the response for the coronavirus. stay tuned you're watching squawk on cnbc

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investors expect they'll keep going higher. that's the debate and the question we have tesla bull here and also tesla bear greg erwin. the senior research analyst. he's here with us on set as well let's go -- do you know what, i'm going to start with the bearish because right now that has almost become a contrary juan case and it might be more

fun to hear what he has to say it puts it in a better position than they were a day earlier this whole story is about are they going to have a cash crunch they just helped themselves immeasure bi immeasurably. >> the only reason they need another 223 is if they're going to reverse what has benefitted them to the tune of 400 million over the last two quarters the lean out of the channel and then we're going to see increase here instead of r&b down. >> what happens if i told you they were going to build another factory in china >> they're going to have the demand for that. they're goingto sell the vehicles before they can do that and the factory in china has capacity for 150,000 cars. i mean, today the run rate that

they fear it can produce at is 1,000 cars a week. 50,000 cars. they don't need cash for that. this is just them -- >> what do you think the stock is worth >> 350. >> you don't think this advanced your cause at all? >> no, i mean, i still think -- >> did you think a smartphone would do this? >> absolutely. it was the right move for the cfo. he made a good decision. you raise money when you can and not when you have to last year, you know, they were backed into a corner a little bit. that's why everybody was negative. >> what do you think of this idea that this is somehow a sign of what's happening here >> well, one stepping back is i think the debate about tesla is still relevant i understand that the bulls have had their say over the last couple of months but it's a good debate on one side i would generally put the balance sheet on the negative side and the piece that is generally missing from that view, i think we're talking

about today about raising cash and leans and building factories is really the undeniable truth that this plays into there's two of them. the future of automotive is going to be electrofied and autonomous we're talking the federal highway administration estimates that 2.5 trillion miles driven per year in the u.s. and what we have here is one of the largest addressable ones and put it in the most basic case i think that the people that are more negative on the tesla story are missing the truth. it would not be a theme that i want to be negative on that would be my question is why would you want to be negative in front of a leader what is an undeniable truth

>> very bullish. >> a look at tesla strip out consumer finance three times the valuation, this is really a bet whether tesla is going to have the large oems for two years or ten years. i think two years is a pretty fair time line they have no strategic structural -- on the traditional oems catching up recently met with a top ten a o automaker. he had been around for 85 years. the meeting started out and they said just because we have been around for a long time doesn't mean that we have a future and we need to make big changes so it is true that these automotive companies have a fire. this is a very dire situation and i would also add that this

is not in the truth category but i think that automotive is not two years behind it's ten years behind and at this point there's an escape velocity question that would be difficult. in the next ten years we'll have a top ten automotive company that will be in business but on the track to going out of business this is going to take longer than people think but be more profound of an impact than people realize >> so my response is i'm very clearly in the two year camp some of the brightest people i have met in the world have been inside the european oems they have state money behind them when they want to build the big factories. tesla has no structural strategic long-term advantage. they have done a fantastic job they basically made the category successful but it doesn't mean they're going to do -- >> but you don't think it might be simply innovation which is to

say that it's going to take ford and gm and everybody else several years to get even the first or second or third type of car out. where as they might be on to next iterations of their cars new and suvs and all types of vehicles and different things and there's going to be a constant catch up game going on. >> i think a better word was risk appetite. so tesla was very much like a technology company traditionally. they're willing to take a lot of risks and the big oems are not excited about taking outside bets that could put their main product lines at risk over the next number of years so they are much more stamgged n the way they do things it doesn't mean they don't have the talent and the resources they still have the complete capacity to execute. >> but you said they don't do it why would they in two years? >> well, i mean --

>> if i can interject here -- >> yeah. >> if i can interject this idea that traditional auto is going to somehow catch up. there is a problem that they have to reengineer their production they're going to be producing cars they have to do that for several years in order to catch up in some deficiencies that tesla has. and they could start to be profitable and exactly what you said is if they have cash cows they need to displace that with cars if they lose money that's a dangerous combination that they have and i categorically

disagree >> if not, tesla, who? meaning since you thought about it, you look over their shoulder. >> i have to worry about that a little bit >> i think there's a lot big automotive companies out there. i can't think of which ones turn the corner and it sounds out of touch. >> just one. >> there's structural problems there's existing, all of the partnerships that you're going to say the best position of all. >> total ev sales are what

percentage now >> it's going to 100%. >> it's just a better experience it's just a better product. >> all right >> part of the mix it will be an important part of the mix. >> coming up, two high profile voices on the fight. the ceo on the company's manufacturing operations as well as 16,000 employees. we're coming right back.

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welcome back to squawk box rick santelli here live with breaking news. we have import prices for the month of january, sozero, unchanged. so it isn't so bad we lost last month from up three tenths and look at prices.

and up much better than expected if we look at year over year now let's go to exports shall we and .7 down to .6 is still a nice back to back combo. higher up the economic fundamental food chain and it is

zero we're expecting the number .3 and you might think last time it was up 25 which was powerful, that is big time so it becomes .2 and now look at zero it was nice as all the data seems the actual part that we have been plugging higher up could have been better on that control number and the long and the short of it is we're still now under 160 in the ten year note yield that's sort of a line this week. in the grand scheme of things this recent 2020 cycle will close. and it's 150 in change and there's not much cushion here. it's looking flattish. also the three day weekend and this coronavirus continues and there should be some volatility. so back to you. >> a lot of stuff is going in. >> first of all we have the trade thing.

the trade thing pull forward and we have kind of be working that off so a little unclear about seeing the strength and the consumer they're not good numbers for the control group. i don't know what was estimated by the street. it's down 3.1% what's the weather weather is very warm so i'm wondering if that's part of a decline in prices for winter goods. if you look at the whole map of the country, the anomaly is all sort of orange. >> it's late in the season anyway. >> they would be discounting if they didn't get the gloves and the hats and the sweaters off the shelves that's one possibility and then we have this 2% surge in agricultural. remember we have the trade deal in december and you have the agricultural so there's a lot of

distortions out there. i think we're still on a track here for a -- what would be a 2% growth rate. that's going to knockoff because of boeing. .3 for corona. >> all of these government numbers are done >> back up all of these events and the coronavirus on any of these issues. >> i don't disagree one bit. >> what is often the case, it's not often the case -- >> nothing now we have time >> and another third it's what joe was about to ask me the first quarter weakness. >> i'll tell you what i was about to say -- rick is still here

three days of coronavirus news we have no idea and i don't know if i'd say long going into 4:00 today. >> it's a huge move but anything you're a bit nervous about we might come to a point where it actually works the other way where investors take a long shot maybe some of these areas are priced to move down. >> it's a weird convergence and nothing is scary >> and people being held in the pandemic fear.

>> here's the thing. faith in the fact that we have the ability to spread the information that's out there and then the ability of science to address it and the ability of health professionals to address it these are new technologies in a new world. >> i just wish that i knew that the people that were in charge in china and here were doing the necessary anticipatory things. >> i'm with you on that. >> 14 days and they're all over the place. >> i think that you get one answer at the bond market trading under 160. >> that's what i mean. >> and you get another answer looking at the stock market which looks a little bit more

willing to take a flyer on the containment of the virus. >> right >> there's so many that we wouldn't be at 160 if there was no coronavirus. >> tell me i'm wrong i could be wrong. >> i think you could be. i think that this global move may have been enhanced >> okay. >> let's all go home and everybody be well on the weekend. >> happy valentine's day. >> happy valentine's day rick. yes. >> lots of love today. >> lots of love. >> when we come back, health and human services secretary on the chinese government campaign and what the trump administration is doing. we'll be right back.

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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 ♪ othroughout the country for the past twelve years, mr. michael bloomberg is here. vo: leadership in action. mayor bloomberg and president obama worked together in the fight for gun safety laws, to improve education, and to develop innovative ways to help teens gain the skills needed to find good jobs. obama: at a time when washington is divided in

old ideological battles he shows us what can be achieved when we bring people together to seek pragmatic solutions. bloomberg: i'm mike bloomberg and i approve this message. >> let's bring in our special guest to talk about the latest on the coronavirus in this case, health and human

services secretary alex azar as each day goes by we find out more information in your view and if everything that you know i assume as much as anyone knows in this country, should people in the united states feel that the risk to them at this point is small, medium, large, where are we in your view realistically? >> the risk to the average american is very low right now let's remember, we have 15 confirmed cases here in the united states. all of whom were either traveling or had direct intimate personal contact with an individual that was there. that's not to say that we don't prepare but for individuals the individuals should not be worried about their own situation. they should be more worried about flu and cold season. in terms of not touching their face but the average american

should not be worried at this point. >> this could change rapidly. >> this could change rapidly. >> in anticipation of something changing and not saying that we can cure it or use anti-viral medication although there's a lot of that would be cute. >> absolutely. we're deploying the full force of the u.s. government and the health and safety of the american people and one of the things that we did within a week of getting the genetic sequencing we had a diagnostic there and we deployed that around the country. we had 170 health labs and we're taking an important measure that we announced yesterday which is that we're using our flu surveillance network in seattle, san francisco, l.a. and chicago and new york where individuals

who present with flu-like symptoms will be tested not just for that but also tested for the coronavirus, that way we have an early warning system we have no reason to believe that we have cases out there but we want to be on the safe side. >> secretary, do you think that there is community spread that's taking place right now that we just haven't detected yet? >> no, we have no evidence of that, nor do we have reasons to support that hypothesis but we're going to look just to be safe we immediately alerted them of the symptoms so we have been scanning and surveilling from day one on this. and we have them in place and we have the test now deployed out there and we're going to do this through the early warning system

also. >> how would you raise the amount of information that china has about this on a scale of 1 to 10? would it be a 2? or would it be a 9 >> the problem is with china you don't know what you don't know we're getting a lot of information but i really think that the world health organization must be transparent and cooperative and you need to get this offered now for 39 days of cdc experts we have to get them into china and they have to be given access to sequences to run the studies to get answers to the key question. how severe is this how does it transmit what is the incubation period. and i don't know if they can get

it we're being very careful not to engage in speculation. we need transparent access with all first generation genetic sequencing we need to get on the ground and we have to do what we always do. the scientific experts to look at raw data and solve these questions. >> in your opinion -- >> i don't make it my business to speculate without intelligence. >> i don't make it my business to talk about my discussions with the intelligence community

either. >> all right. >> thank you. >> you know, some people are focussing on what is happening in singapore because we are starting to see cases rise there and there's human to human transmission right now we don't have travel restrictions whether it's community transmission. is that something that you're considering to stop any transmission to the u.s. >> we're assessing that situation hour by hour and it's coordinated on this. >> they're warranted if the data supports that but we're trying to get to the bottom of the questions and it's whether we're seeing true multigenerational spread we're actually seeing a first generation cluster that is

really not that type of multigenerational spread so we have to get to the bottom of that working with singapore. >> i know that we have offered help with the cdc and things like crime over there. do you know if they're going to accept our health at this point? >> they keep saying and the world health organization keeps saying there's an agreement to send the world health organization team as part of that i can't take that to the bank. it has to happen get the answer to the key questions. >> thank you for coming on appreciate it. >> thank you. >> when we return a look at the business impact of the coronavirus with the ceo of astrazeneca. we'll get an update right after this and a reminder, don't forget to

download squawk pod. that's our daily podcast monday maybe a market holiday but we will have an all new podcast on that holiday. this time around they did spend time with comedy and golf legend bill murray and followed him and clint east wood. their teams around we're going to have highlights of that in the squawk podcast. we'll be right back.

shares of british drugmaker astrazeneca are lower in uk trading but they have come back from a bigger drop earlier this morning when the company reported fourth quarter product sales and core earnings per share below expectations, and it also factored in a hit from the coronavirus to its 2020 forecast joining to talk about the results and impact of the coronavirus on the company, ceo pascal soriol and meg tyrell is with us as well. mr. soriol, i guess not everyone is familiar with how much your business depends on the growth engine of china and some of your factories and some of the sales over there with what you know now, how do

you expect covid-19 to affect results in the current quarter >> well, first of all, thank you very much for having me. it's a great pleasure talking to you today. to answer your question, china represents about 20% of our global sales last year, globally we grew as a company by 15% in china itself we grew by 35%, so that gives you a sense of the importance of china to our company. the coronavirus of course is having some disruptive effect on our organization in china, but i have to say we have a factory up and running since this week. we've had two weeks of stoppage because we have the one week of new year, chinese new year celebration and we extended that over the week. we are back to work in our plants, and our teams are on china, except for the wuhan and

hubei region, our teams around china are starting to work again, so we expect some disruption and some impact, but we hopefully, we hope that it will not last too long >> can you help break down for us, pascal, how much of the impact could come from demand for medicines and how much to a disruption and supply in china >> actually, the supply chain has been able to operate efficiently. again, except for the wuhan region, but across china, we're going to supply hospitals and wholesalers. patients tend to go more to the pharmacy to renew prescriptions as opposed to going to hospital. as you know, in china, typically medicines are delivered through large hospitals. patients have been a little bit reluctant to go to the hospital unless they have to, of course so this has certainly disrupted the way it is delivered but again we hope this will impact us for a few months.

we've built that in our guidance for 2020 remember that a few years ago, after the sars epidemic, china rebounded very quickly so it is quite likely that china will bounce back as soon as the epidemic is behind us. >> how should the -- we're dealing, astrazeneca obvious i had has a lot of business in the united states as well but what would be the best way to level the playing field between what drugs cost here in the united states and what drug, the lower prices that the rest of the world might pay? we're trying to grapple with that, with varying drug plans here in the united states. what's the best way to do it, pascal >> you know, i think the best way is really to protect patients i think it is important to remember that for patients in states who have insurance, access to medicines is the best in the world

we should never forget that. patients in the united states benefit from new medicines, innovative medicines faster than the rest of the world. having said that, it's clear that they tend to have to pay large copays, so what is needed is number one protect patients, and there are two bills going through congress, as you probably know. both of those include a copay cap of $2,000 a year or $3,000 a year, and when that is done, then the question becomes how do you manage the cost, and that is not covered by patients. how do you redeploy this to insurers, industry and potentially the government for part d so i think really the number one thing to do, to answer your question, is really to protect patients against large copays. >> very good we appreciate your time today, mr. soriot and thank you as well, meg. >> thank you . >> thank you so much >> thank you, sir. let's get down to the new york stock exchange.

jim cramer joins us right now. it's good to see you this morning. >> thank you, becky, good to see you. secretary azar interview kind of shook me up. i didn't know, i thought that they had given us some of what he talked about. i was totally in the dark. >> meaning the information we're getting from china about the coronavirus? >> geez, yeah. i didn't know it was that scary. maybe w.h.o. gets it but i got to tell you f we really don't know that much, i mean what are we supposed to do to try to stop it in >> the one thing i was glad to hear from them is that they are rolling out these early testing kits, so that we can try and find out or at least be able to very rapidly identify if we get concerned about these cases breaking up quickly and something we've heard again and again from people in charge on the ground >> the article, becky, that came out yesterday, really some high-level scholars is that maybe it's not even 14-day incubation, maybe it's 24. you know what that would mean?

we're letting loose people who could still have the virus >> preys on all my darkest fears, jim >> it's tough. >> three-day weekend, who knows what we'll find out over that period of time >> coming in on tuesday, maybe things are better. >> we hope jim, thank you, see you in a few minutes. >> okay. final check on the markets where things stand right now 'lco rhtactoou in just a minute. mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪ when i lost my sight, my biggest fear was losing my independence.

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othroughout the country for the past twelve years, it is already working in cities like tokyo. mr. michael bloomberg is here. vo: leadership in action. mayor bloomberg and president obama worked together in the fight for gun safety laws, to improve education, and to develop innovative ways to help teens gain the skills needed to find good jobs. obama: at a time when washington is divided in old ideological battles he shows us what can be achieved when we bring people together to seek pragmatic solutions. bloomberg: i'm mike bloomberg and i approve this message.

final check on the markets this morning, we'll start in the green on this friday happy valentine's day. what's that? bye. ♪ that's why your love ♪ your love keeps lifting me ♪ keeps lifting me ♪ keeps lifting me ♪ higher ♪ keeps lifting me higher ♪ i say your love >> i'm carl quintanilla with jim cramer and david faber at the new york stock exchange. futures are flat, the market balancing is coronavirus headlines and strong earnings from chipmakers like nvidia. a fifth month up on sales. yields are said to end the wee