"squawk box" begins right now. laptop docking stations. so while we normally keep enough stock and kind of like that other business owner, we stock up for the lunar new year because you have a normal two-week supply disruption, you know, this supply disruption is >> good morning. unplanned and unpredictable. welcome to "squawk box." we really expect the disruption live from stage, star of stage to be hitting us hardest and screen, kelly evans. actually next month in march and are you still doing the exchange april because any reaction that we take now in terms of trying later? >> are you >> i have. >> i am. to kind of secure extra supply, tried to keep the seat warn. it takes that long for that to >> kelly evans, star of the kind of flow through the supply exchange here today because becky is off. chain. >> in terms of capturing extra you have a long day. >> it is not that long supply, have you thought now how >> liz young probably has a to either move the supply chain to someplace else or diversify your supply chain over time? longer day >> i have to go to dallas. >> we've actually been fairly >> really? aggressive about trying to move >> you are directing strategy at out of china we had our first factory partner move from china to taiwan three bny melon.

>> dallas? years ago. >> traveling with a big sales what's interesting is it is a connected supply chain so what we're actually discovering here with the coronavirus is those factories outside of china, they person >> a deal? >> a few of them >> i was a stock broker. also are having supply trouble not able to start production in would you like to buy this or many cases because all it takes would this be better for you is one part to come from china >> alternative choice questions. so our products are electronics, >> you do. fairly complex and parts really >> she doesn't get on a plane come from all over the world and unless there is money to be those parts that come from china made >> everything you do should be are affected. >> okay. closing. bernie, thank you for joining us this morning >> i'm closing every day appreciate it. coming up, can a slick >> we digress. it is up we are green today multi-million dollar ad blitz translate to success on the up 65 points, the s&p indicated debate stage that's the question of the night up about 7, nasdaq indicated up for billionaire mike bloomberg his team also announcing he'd sell his company if elected about 31 president. i think we want these to go up we're going to discuss what to and maybe we are not all going expect tonight and his economic to catch this horrible thing plan here are the futures at this hour we are in the green pretty

some day handily. on the 10-year, kind of sickly, "squawk box" will be right back. when we started our business isn't it >> aren't we inverted again on the three-month, 10-year >> it portends a slow down it will be in this trading range for a while. >> is it mostly coronavirus related right now? >> in this range, yes. >> i thought i saw oil better today? >> i think the market is confused there are others that say they would be dealing this well into next year. explain why the bond market would be a little strange. this is more structural strain

>> i think the bond market wants we were paying an arm and a leg for postage. support. it needs help. i remember setting up shipstation. one or two clicks and everything was up and running. i think if there is a quick i was printing out labels and saving money. resolution and v-shaped shipstation saves us so much time. recovery, that will be okay. it makes it really easy and seamless. pick an order, print everything you need, >> you are here. slap the label onto the box, couldn't stay away yesterday and it's ready to go. our costs for shipping were cut in half. you called in. >> we had some news. just like that. >> you did shipstation. the #1 choice of online sellers. >> did that work my appeal for you to get a vacation day since go to shipstation.com/tv and get 2 months free. you essentially worked shipstation. the #1 choice of online sellers. >> were you not on the same can we go get some ice cream? alright, we gotta stop here first. ♪ ♪ e-mails i was? >> you didn't get it from smarter atms, to after hours video tellers >> i had a half day. ♪ ♪ >> we can't let him get too comcast business is connecting thousands of banks to technology comfortable with this calling that turns everyday transactions into extraordinary experiences. in >> how many days is it hi there. how are you? do you have any lollipops in there? 181? >> you have to stay out of the (laughing) no, sorry. city 180 days. we're helping all kinds of businesses >> would you come clean or go beyond customer expectations. pretend you are here >> would you let him pretend how can we help you?

>> bingo january producer price index coming up. expecting an increase of 0.1%. atlanta, minneapolis, dallas, richmond and cleveland fed presidents all have planned speeches we'll see if they are all singing from the same hymnal we'll see. welcome back to "squawk a new case of the coronavirus being confirmed in box. mike bloomberg will take the stage tonight. california the spotlight will be on his $5 a second patient under trillion tax plan and how his investigation. message changed over the years both had previously been robert frank joins us with a little bit on all of it. quarantined on the diamond >> good morning, andrew. two years ago mike bloomberg princess in japan. took to the stage at an imf overnight, the evacuation of meeting and warned of the

dangers of taxing the rich. about 2,500 people began but >> you can take money from the expected to take several days. rich and move it over to the poor if you do it too much, then the passengers cleared could be seen rich stock producing and departing here everybody loses. some received health check forms now that he's running. asking if they had symptoms. those tested negative and reported no symptoms were also subject to body temperature checks before leaving. >> i wonder about the whole they're imposing it. cruise industry at this point. fool me once norovirus. have we looked at those stocks that's on top of the more than $5 trillion taxes he's proposed who is going to go on a cruise to pay for infrastructure, again? >> they will health care and he's raising the >> it is a traveling petri dish. top tax rate from 37 to 44.6% and raised a corporate tax rate i know you, you'll got on from 21 to 28% geffen's boat. 16 people. capital gains will be taxed the same as ordinary income making you and tom and leo. more than $1 million a year. >> who is tom? bloomberg says fixing inequality >> hanks >> obviously is my priority and that the >> there is an imam boat that rewards of the economy are too

far concentrated at the top. goes between two of the islands the tax foundation said it will in the maldives. increase tax burden on saving, that's got my name on it investing and working in the u.s. while reducing global >> has that caught your eye. competitiveness in the u.s. >> i think it is just a day or economy. >> question for you. two but that is my kind of i write some news that suggest speed. >> the floating speed. that his plan is more aggressive >> we think this escapism is than elizabeth warren, more because the world is so aggressive than bernie sanders actually in terms of the daunting we are going to go back now to eunice in china. ultimate money that will get the death toll has crossed the raised. >> not even close. 2,000 mark and the number of new warren is something like 20 to 30 trillion compared to 5 infections has daped, trillion and sanders, just the reportedly health care part, is 30 1,700 cases is the lowest new trillion now biden is 3 daily rise since january >> right. new new questions about how >> so he's between biden and warren is kind of where he is on transparent the chinese the spectrum but nowhere close. government has been about the >> just the debate itself, this is by far -- >> this is going to be the big one. >> as the most -- andrew, remember when trump tweeted it was scorched earth and it was answered, it was scorched earth

outbreak by bloomberg eunice he's not going to be someone eunice yoon joins us with more who's going to avoid getting down into the muck is that a false certainty we're cargo called -- i guess bernie feeling? called cargo a hack and bernie >> it is interesting that when it comes to a free flow of said, at least i'm not a communist. information, the chinese bloomberg is smart and i government has become more guarantee you he has people with answers to anything that happens aggressive authorities here are departing tonight. because there's a perception that to take on trump you need three wall street journal to fight fire with fire. reporters based in beijing for i think he's going to be loaded for bear tonight an opinion piece that they did bernie and bloomberg are going to be loaded for bear. not write. >> we're going to see whether they said the opinion piece that he -- you know, how he brings referred to china as the sick it, meaning he historically is man of asia as racist. not somebody -- >> i know that he needs to bring it. this comes after the is >> that part -- >> have you watched his new york designated several chinese news city debates have you watched those old outlets as exceptions of debates? not great. >> did you need -- >> not great. beijing. censorship here of the outbreak >> you needed some meth? has ratcheted up recently so >> at the -- much so that companies have been >> yeah, he's got to bring it. >> we'll see complaining generally but to me we'll see if he brings it. >> even if he brings it, is it going to ring true specifically that it has been people know he has all of these advisers to come up with lines more difficult to work remotely that's different than people who

from home, which is a challenge are bernie ardent supporters. >> he's got people who are since they can't go to the giving him lines office the world health organization is elizabeth warren has people giving her lines. >> kelly's point is really here as you well know, china has been important because my hit today was about the authenticity and under great scrutiny and under consistency of his positions and fire for not sharing enough bloomberg, whether it's on information with the obamacare, whether it's about international community. red lining on wall street the w.h.o. senior team is in causing the financial crisis, he's done a 180 in three months on so many issues. beijing. >> exactly. this week, very far from the we have guests to talk about this epicenter of the province. for more on the candidates' i spoke with the w.h.o. about plans and looking forward to this and they said a trip to mike bloomberg's first appearance joining us douglas holtzaiken wuhan and hubei is currently not on the agenda, however, they and former budget director and said a trip there is not ruled jose joseph i wish i could -- i think you're conflicted, jason. i'm trying to figure out where out. guys you're going to come down on >> i want to talk about these these things knowing you as i do, i feel reporters that were expelled sorry for you. this is tough for you to pick they are asian reporters between a bloomberg and a bernie since i feel your inner

conflict, i don't know how to deputy chief josh chin, chow address your feelings on this. what do you think of bernie sanders, jason you're a smart guy ming, and another all expelled i mean, you don't want to do any of these things he wants to do, do you >> i heard andrew say his plan >> right they have five days to leave the would raise $50 trillion i don't think he was taking into country but they did not write the piece. account the impact on the >> are you very careful with how economy. after that i think we would be you phrase things? lucky to get $5 trillion from i think you are. his plan. i think you have to be >> you're not disappointing me how about bloomberg? >> no. are you okay with a billionaire i don't think so we just report what we feel. buying an election it's a loaded question >> i look at his plans i like the proposals he's making i personally am not a fan of president trump, would like to many times they don't like what see him beat president trump. one of our guests or one of us >> what? >> would like to see who could are saying here. that happens from time to time have a sense of sensible economic policies. i wonder if you feel like you i think bloomberg is one of th are walking a fine line at people that might meet both of those criteria. >> all right, doug what about bloomberg's plan itself anything there that would make things even better than they are times? >> we are censored once we start today in the economy or would we go the other way

>> no. talking about something no sensitive say for example the no everything on the democratic hong kong protests side is headed south as far as it is quite common here and i'm concerned. especially these days when it there's not one good plan out there. lots of regulation, lots of big comes to anything sensitive when taxes, lots of big spending. it refers to the government. not going to do anything good for the economy. >> every night, we'll hear about new cases. >> nothing on the democratic i wonder when we'll be able to side is worth anything at this tell there is an actual slowing point? >> i don't think so. honestly, these are not plans and whether there is for economic growth. these are plans for government transparency i wonder when we'll actually growth they're about government know >> i think it is going to be programs always and they're about redistribution and they're really difficult to know not about the kinds of things we are hoping to see the trend that have relied on the private continue to fall with these new market and inknow vapgs and success. cases. there has been a lot of hope i find it very dispiriting this is not an election that pinned we talked about it before looks like it's going to have a february 20, which is tomorrow good, solid policy core. >> jason, it comes back to how we got here, and there's been a later this week because a big controversy this week. high-level, well-regarded doctor i'm loathe to bring it up expected to see a turning point because i think it's ludicrous, but do you think some of the in southern china at least this economic success we're having right now can be traced back to week so there are a lot of people that $800 billion cash for

here hoping that the number of falling new infections will be klunkers not shovel ready boondoggle is that why we have these reflected and that we would see historic lows in unemployment? a turning point. again, very difficult to say can you connect any dots from that to where we are here today? >> we feel like we have a i bet you can. >> you know, i think about 80% divergence between the stock of the year is in the last market and bond market century, the unemployment rate was lower than the last year it is hard to give that type of that's happened in the last two years. you know, joe, you were talking about 3% growth. this last year we got 2.3. the year before that we got 2.5. >> what happened to 2.9. wait >> you told me -- >> 2.9 2.9. you did it a different way and indication got above 3. >> joe, you were the guy who it looks like it is indicating a wanted -- right. right. you wanted q4 over q4 until slow down it is hard to extrapolate how long this lasts. those numbers got revised and then you changed back. >> i want whatever is best for the country. >> the numbers have been made up >> you set a standard. >> the information flow is really messi the only thing that was really we hear a lot from the top that strong in 2019 was the federal says things are under control. spending increase. that was the largest federal on the ground, it is really spending increase of the

dysfunctional. recovery you talk to several suppliers. investment growth, excluding oil and gas, was the slowest of the recovery so i don't think this is looking most people think the disruption a lot like an investment fueled will continue to the spring. economic boom. >> we did pay a little -- because of the disconnect. >> okay growth with a lot of we don't know whether or not government spending. >> it's the truth! authorities aren't sharing keep talking information or if they actually >> keep telling the voters that don't know what the situation is things suck. >> i'm not saying they suck. on the ground. >> the america you promised us, because of that, you are getting joe, hasn't showed up. you made us a big promise. a very spotty picture. >> you deal with 30 years of a renegade china in terms of trade morgan stanley indicated a policy and you pay it forward by dealing with some of those issues, there were some research report indicating that headwinds but i think -- we could see a spillover effect. >> you keep moving the goalposts, joe >> doug, are things pretty good? >> thank you for your reporting the stock market's at highs, from the ground in beijing wages rising, anything to be -- coming up -- you want me to these democrats going to run against the economy? >> no, they're not, and they don't really read if you listen to the debates, you were applauding my reading they're not an attack on trump's

it was the question. >> so probing. >> i missed you yesterday. economic policies. they know they've by and large been very successful much more on the impact of the coronavirus on companies people are very happy with where we are worldwide. they're on his conduct and his we'll highlight some businesses character. that could see some gains from it's not about how the economy is doing, not really supply productions related to they're not going to run on that. >> jason, i would even go as far the outbreak if you have questions for warren to say that, you know, to get to -- when you're at 12% or 10% buffett, now is your chance to unemployment, those first three, ask and tweet them with the four, five points you can do obamacare. you can do redistribution. you can ramp up regulations and it's going to happen because the economy recovers but there wasn't a single pro-growth policy to point to during the obama's eight years, right hasht hashtag #askwarren how do you possibly -- how do we'll be right back. you possibly attribute any of the economic successes now at ameriprise our financial advisors which program? klunkers? which one? give me one that was pro-growth. can not only recognize you in a crowd, but recognize what's important to you in terms of your goals >> one that was pro-growth get 1-to-1 goal-based advice where and when you want i think the affordable care act and real-time goal tracking online. helped stop people -- >> that's a good one ameriprise financial >> enabled them -- >> come on, jason. >> enabled them to take more

risk you want entrepreneurship. and when you open a new brokerage account, you want people to move from job your cash is automatically invested at a great rate. to job >> we saw a steady -- look that's why fidelity leads the industry in value what's happened to health costs. >> no, no, no. while our competition continues to talk. >> years of higher growth rate ♪ talk, talk while our competition continues to talk. under obama than trump. >> what kind of debate are we we segetting to patientscines in record time. having here? >> i'm happy to move forward at emerson, when issues become inspiration, creating a better world isn't just a result, i don't know how you have strong it's a responsibility. growth with more investment in science, more investment in emerson. consider it solved. infrastructure i think we're doing perfectly fine now i think we can do a whole lot better and a whole lot better on a more secure diaper closure. there were babies involved... and they weren't saying much. a sustainable basis if we make that's what we do at 3m, we listen to people, the -- >> can you believe, doug -- even those who don't have a voice. >> it's a rorschach test. we are people helping people. >> can we establish a few facts here >> please. >> it is a fact that the economy accelerated under president trump. it hit at a low of year over year growth of 1.3% in the second quarter of 2016 and it grew faster every quarter year over year until the second quarter of 2018. that was less regulation, that

was tax cuts and tax reform. >> sugar high. >> government spending. >> hang on there was some government spending in there. and then exactly at the peak growth when it was growing at 3.1% he went at china with a big even those who don't have a voice. trade war. which of your devices are protected it has decelerated since by daily security updates? the idea that nothing has daily security updates... changed is wrong it's changed dramatically and he daily? i don't know. the only thing... then stepped on it with the i'm struggling with this. trade war. there's no question about it some providers you have to manually download updates going forward the issue is what to each device. will be the trade policy comcast business securityedge updates every 10 minutes will he get some results for what he did or will we continue to help keep your connected devices protected to shoot ourselves in the foot against new ransomware, malware and phishing threats. that's the big issue there's no doubt about it. >> one of the biggest problems every 10 minutes feels pretty good. that we've had here is there get secure, reliable internet and voice for an amazing price. hasn't been a lot of private investment i don't know what the answer to call today. comcast business. that is -- >> there was a lot of private beyond fast. investment. >> the answer isn't enough. >> i'd do another round of business tax reform. >> to actually drive growth from a private perspective. >> cash for klunkers 2, jason. was that your idea i still think that's why we're here. >> i don't remember very well, but why don't you ask austin

i'm sure it was his. >> i get done with this and then gools goolsby's going to be here. >> i keep hitting my head against the wall and when i stop, it feels awesome. >> thank you, furman and douglas holtz-eakin. >> furman is tough. >> because he has facts. >> the truth on my side. >> alternative facts >> yeah. >> all right and we wanted to thank liz young for being with us this whole hour she has to get off to dallas welcome back we have a couple of stocks to make haste, make deals. >> always closing. >> coffee's for folks -- highlight this morning >> on behalf of the client joining us now, portfolio manager. always what's best for the i want to kick things off right client client first now. >> coming up, our exclusive you like air lease corporation interview with the doj's why do you like them >> great it leases airlines globally. anti-trust chief makan delrahim. what has been under pressure, he'll sign off on the t-mobile the names are under pressure

you do see some pull back. they are taking advantage of venture. here's the market. tesla is back over 900 this to work with partners and we're back in tw move inventory all around. it has been the opportunity to buy a great company at value prices >> what do you think it is worth? >> we'd like to see it above $50, $55 it is below $40 right now. we think the health scare, once that abates, this will be great. it has also taken advantage of what is going on with boeing >> how much lost in the last four or five months? >> you look for those opportunities and do your due ♪ diligence before it hits the ♪ i got that vibe, got that vibe ♪ bottom >> some other stocks on your ♪ got that vibe, yeah, i ain't petty, ♪ list the second is lam research ♪ looking fly, looking fly, ♪ >> that is more of a larger ♪ looking fly, yeah, they ain't ready. ♪

♪ i can shine, i can shine, ♪ company company for smaller ♪ i can shine. ♪ i'mma do what i'm made to do. ♪ semicap companies. they are a leader but will ♪ i'mma do what i'm made to do. ♪ built for excellence. you start from the foundation up. probably be impacted about what is going on in china and also the excellence is reaching dreams and chasing them at the same time. some of the noise around huawei ♪ we are beginning to hear what is the risks in taiwan? >> look at the run it has been on >> right where we are doing our due diligence, which is the next slide we are bringing up >> to be clear on lam, you still think this is a screaming buy at that price >> no. this is and indicator of the next name which has been under pressure again >> what a tease you are. bring up the third name. i feel like vana pho

pho pho phototronics they do have operations in china. we don't know how much it has been impacted. as china begins to develop their own semiconductor industry, these guys are positioned for that we are seeing the bounce small caps do that on lighter volume we are watching for the earnings call what the guidance would be there. you have to be prepared. >> what do you think this is worth? >> i think there could be significant pull back? >> i'm telling people to do their homework and be prepared >> for this moment but this moment is not here . an exclusive interview with >> not today >> looking at your watch and the head of antitrust at the department of justice.

thinking of calling your the doj joins us live on the broker -- >> this is why you hire active managers to pay attention. t-mobile/sprint merger. >> tesla surging again >> is that your birthday suit there's a new top bull piper sandler ups the price that you are wearing target by almost $200. and the brewing battles >> this is my birthday suit. ahead of tonight's democratic debate >> is it your birthday a surging bernie sanders, rising mike bloomberg and what people >> it is only 6:19 in the need to know the final hour of "squawk box" begins right now morning. >> a little birdie happy birthday, mr. sorkin >> we'll celebrate later thank you for celebrating with me and talking with me good morning and welcome back to "squawk box" on cnbc they want me to go over here the high-profile pardon from mr. from the nasdaq market site in times square i'm joe kernen along with andrew trump yesterday, namely mr. ross sorkin and social media main kelly evans milken and why oracle is facing becky is off today >> 4400. >> u.s. equity futures -- a backlash over something he's planning to do with the president. that's next after this >> some people are not stopping

following me and following you >> i don't know what they think they're getting out of that. >> i don't know. i blocked them i did. you're right you're not going to follow me because you're blocked. >> we're up 88 points now on the dow. the nasdaq up 48 s&p up almost 10 points. treasury yield, 156. >> crazy >> bond yields, we have more to talk about >> stopping the deal ♪ yes i'm stuck in the middle with you, ♪ the third and fourth largest no one likes to feel stuck, boxed in, or held back. guards especially by something like your cloud.

it's a problem. but the ibm cloud is different. >> all of this is maki it's the most open and secure public cloud for business. it can manage all your apps and data from anywhere. makin dalrahim, from the department of justice. the man in the middle and we are so it can help take on anything, thrilled to have you here today. from rebooking flights, on the fly makin, thank you for being with to restocking shelves on demand. us >> thanks so much for having me, without getting in your way. andrew. >> good morning to you ♪ ♪ help us understand this. a lot of people have looked at the states suing you had obviously reached an and when you open a new brokerage account, agreement with the companies and then the states came in over the your cash is automatically invested at a great rate. that's why fidelity leads the industry in value top. a judge is has now obviously while our competition continues to talk. ♪ talk, talk sided with the companies, i could argue sided with you but the larger implications of the states suing and what that means going forward for transactions in deal making. >> well, i think it would have raised some serious issues of uncertainty had the states won in this case i think in a long, well-reasoned opinion said that what we do in

the -- at the federal level at the anti-trust division or federal communications division is not conclusive but it deserves a level of deference and he went throughout his opinion explaining that but had that gone the other way you would have had 53 antitrust agencies i can't imagine being in one of those investment banks or private equity firms trying to handicap a transaction getting through the regulatory process when youhave 52 whacks at the pinata >> this is not going to prevent states from bringing suits in the future or do you think that this ends that >> you know, i don't know. i think they'll still be some appetite if the federal agencies are absent, but in this case it was such a comprehensive set of recommend zis that were there and the judge appropriately looked and said, you know, my job is not to look at the underlying transaction, it's the underlying transaction as remedied by the justice department so i think the bar is going to be high.

whether or not the states, you know, go down this route and spend the type of resources. i do hope that folks kind of step back and take a look at this they call this a game of "star wars" and call themselves luke skywalker and darth vader. it affects millions of jobs and we took a lot of work. i was proud of the work of the men and women of the justice department >> to a degree we have people who say states have rights too, when do you think a state should be able to jump into a situation like this. >> they do and our filing stated more than 2,300 oracle that congress contemplated the employees have signed a petition states having a role against the fundraiser for president trump reportedly being held later today at larry

ellison's personal property. former cia chief has held a seat states are not preempted by federal action congress said states are almost on the board and in 2016, oracle like private plaintiffs and so they have a higher burden to seek an injunction than the federal government does. ceo was on president trump's transition team. that was the appropriate one look, whether or not it is a long process of a judge taking a if it was purely not wanting year or two years to determine their leaders on either side to an outcome or the uncertainty of stay out of politics, i could understand it. states jumping in, we're dealing but it is the same woke with an asperatus that creates resistors. >> it is a valid situation some uncertainty. >> makin, should consumers be >> there areother americans worried about pricing in this space going forward? the reason i ask is uniquely and interestingly, once this transaction looked like it was that deserve to be heard going forward, meaning once the >> it is a valley situation? judge -- the judge ruled, the or valid >> he would say it is a valid stocks in at&t and verizon didn't go down, they actually thing for them to do, i went up. what does that say about all of guarantee. does it irritate you did you see me doing anything this >> i don't pretend to know how to play the markets. if i did, i'd be doing something

during the last eight years like else right now but, remember, a lot of the this protesting or anything folks in the market also handicapped at 70% that this >> every morning transaction would be blocked and they got it wrong. i think by the end of the day >> i'm not carrying a sign verizon and at&t stocks were >> pretty much actually down i think 1 or 2%. president trump issued some so the market and the price discovery, you know, will work itself out i don't second guess that, but i high-profile pardons and can tell you one thing, right now we have two premium comutations is the world providers in at&t and verizon. with this transaction going do you remember this guy rod forward and the remedies we put in, you're going to have a third premium that's going to innovate for the first time for the consumers. you're going to have a fourth blagojevich arrived after his that's unencumbered by 3g and 4g 14-year sentence was cut short convicted in 2011 of crimes customers who's going to be entering through dish with some including attempting to sell the incredibly valuable spectrum that they're going to have and appointment to barack obama senate seat. they're going to be super here is what he said as he boosted by the remedies that we put in place and the structural prepared to leave from the denver airport changes so i think they will get in and i think the consumer is >> president trump is the one who did this going to be a winner over the i'm profoundly grateful. next couple of years. >> when do you think we'll know one way or the other

my gratitude >> i think within, you know, 12 he is forever. he has a big fan in me to 16 months we will see because if you ask me my party you'll -- you'll begin seeing affiliation, i'm a trump ocrate. dish's network to be built out. >> right >> so they immediately come in >> largely the face. with the nvno deal where they're basically riding on the back of he wasn't convicted. the insider trading scandal of the t mobile network but pretty soon they'll be able to have the 1980s. core control and prop up their president trump cited the work own network within certain states. >> what do you think of the idea he's done on cancer research of the government looking back, separate from insider trading meaning looking back even ten charges he did not plead guilty years ago, and this is now something that's going to happen apparently from what we hear in to some prominent people supported the tech world, looking back at transactions that happened, you him. a long, bold-faced list. know, many, many years ago and deciding that that was a good most interesting, rudy giuliani, idea, a bad idea, and what you do about that? who was his prosecutor saying he >> you know, look, i think you're referring to the federal deserved the pardon. trade commission's mention of a study looking at all of the little transactions that were not reportable within, you know, rupert murdoch as well i think four or five tech companies. look, i think if we can learn and former nyc who was the face from that to hone our

enforcement tools, that's a positive endeavor. the problem is they're counter of the nypd after 9/11 factual. how could you tell the but for of google buying youtube what would that have been if they didn't buy it did they crush a competitor or did they actually save a competitor i don't know the answer. also close to giuliani who is i think it is important for us and both agencies to have the resources to go back and look. godfather to two of his children >> i remember really well. especially in big transactions where we have what's called a i remember there is a stark competitive impact statement we filed with the courts and take a difference -- the difference look and see if our presumptions between the guys carried around were correct maybe they were incorrect. money in suitcases and i know and then adjust our future enforcement. you think any s&p company that >> you don't look at this as a take a look back and then decide to break things up afterwards? and how difficult that very well would be given how integrated so many of these businesses now are? >> i think it would be very difficult and there's some core precedent that says that type of remedy would be a challenge. couldn't revolutionize

to me, it did not seem like it in the parker hanifan case in a went along with insider trading. merger that was closed and the department had reviewed it a few years ago. however, we found out that there was a monopoly this had to deal with fuel true scum bags and then he's led filters for planes and we brought a suit and got a divestiture out of that business i think it's a very difficult endeavor to go back and try to an exemplary life. second guess the facts and try to figure out how to make them i thought giuliani with his better. >> should the law be changed so political ambitions forced him that the doj and the ftc can to chase milken around look at smaller transactions i thought the love gov, spitzer that historically they may not have looked at >> i was involved 20 years ago when we changed the threshold from 15 million to what it was, 50 and now going up with inflation to about 93 million followed as well while visiting now for reported transactions. hookers. he asked for that music. >> by the way, let me quickly get off that topic i went back to read what your our jurisdiction is not limited by the reporting threshold paper had written up we have jurisdiction for any

he spent about two years size of a deal where we find there's a substantial lessening sentenced to 10. part of what appeared to be the of competition we already have that authority case is that he didn't cooperate >> right >> what is reportable is different. we exempted out 58% of to the extent and he was fined transactions from government reporting that never, ever even $600 million as well >> he was one of the first guys got a second look. so i think that's an unnecessary that made like a half a billion tax. >> makin, how about this in a year. one of the things people talk about is if you go over 10% of it is an interesting case. deposits, you can't make anymore acquisitions you're done. the question is for a google, an he's on tape saying, hey, this is a really interesting senate apple, an amazon, i don't know what size it is, you say to seat yourself, they should be done or >> isn't milken still banned not? i don't know i raise it as a question from the industry? >> i believe if he wanted to go back to the industry now, given the pardon it effectively erases the if a company is efficient and innovative and providing competitive use, you don't want record i imagine if he wanted to get to put an artificial limit back to the securities industry, saying, wait a minute, guys, he could we're too successful i got an email from one of his senior advisors yesterday let's slow down. hold on, you're going too fast because a lot of people were here you don't want to do that. asking that question i think that's a wrong move for

would he try to get back the government the answer was, this is the however, there are areas where furthest thing from his mind you can tinker with burdens of >> to his credit, he has done proof if a company is at a certain market share right now, you know, the justice remarkable things for cancer department and ftc bear the research >> the relationship he had with burden of proof to proving that giuliani if you remember, rudy had a transaction's anti-competitive there are areas that we should prostate cancer. study and take a look they got in touch. particularly in the areas like that's when the relationship or in the high tech where there are major network effects. friendship emerged actually >> so if you were able to force then he changed the world the divestiture of that park eer economically in terms of getting people access to loans that hanifan monopoly, couldn't the otherwise never would have creating an entire industry at divestiture of facebook be the the time there were problems same basis >> it could be there though was a merger from a there. >> there would be no industry two to one of a monopoly of a certain kind of business that with that. was overlooked >> we are going to talk in a little bit to the man who wrote whether or not the government the book, literally, "den of can prove and review the thieves. facebook and instagram that one of my favorites. somehow they overlooked a he has a more skeptical view particular market or information wasn't there

having sat in that courtroom remember, these are -- this is every day and heard all of the going to be a very hotly contested issue of whether or evidence not that particular transaction i think it is going to be a little more -- was instagram the competitor >> you wither in college back then or was it facebook's i went to the beverly hills office and interviewed there resources that added to that company that they bought for $1 it was herb dunn billion and, frankly, i think it was the competition from snap i could have gone to the newport chat that forced a lot of the changes to instagram to make it as popular as it has been. if they had violated the law, the law does allow for the beach drexel divestiture, structural remedy to restructure that. the dc has warned there has to be a high bar and the government i ended up here with you has to meet that. >> makin, quick question where are the fire works and there was a report that you have recused yourself from the google balloons we got nothing anti-trust inquiry we got some big things planned why did you do that? >> i did that out of an >> you do? abundance of caution >> we do now the justice department had >> singing happy birthday. reviewed that. i had represented google in the marlin monroe style. >> oh, boy coming up, the turn around double click

as the investigation proceeded, i did not want -- these are efforts at one of our favorite important investigations that are much more important than me, frankly. and i wanted that to be from -- companies, bed, bath&beyond. >> and more on blue apron as free from any appearance of an impropriety so i did that out of an abundance of caution. >> what's the time line look like, do you think, for the big part of our stocks to watch, after this fang stock investigations that corner of your growing business. are taking place >> i don't really know since i've recused myself from a number of those. from finding out what's selling best... to managing your fleet... i think the attorney general has commented he'd like to fish or cut bait this year, so i think to collaborating remotely with your teams. that is one that might be a time line you have to let the facts play giving you a nice big edge over your competition. themselves out in an investigation. >> and then i've got to ask you, that's the power of edge-to-edge intelligence. bill barr has now publicly said that the president makes his life and work harder given some of the tweeting that he has wewithout the planet cooler getting warmer. done the president has tweeted a lot at emerson, when issues become inspiration, about different deals and creating a better world isn't just a result, different companies. it's a responsibility. has he made your life harder >> you know, my life continues emerson. consider it solved.

on, as i've said before, the president has the right to comment just like any other [mus♪ i've got so muchut): lack of love to give ♪for love] ♪ i've got so much more to give, baby ♪ senator or member of the public does to me about a lot of the transactions to start your retirement plan, the important thing is not to find an advisor at massmutual.com let anything interfere with the [sfx: mnemonic] facts and the law enforcement duties that i have taken an oath to do. >> it's a good conversation. we have like 40 years of data! that's incredibly valuable! i hope we get to do it again ...i...i don't know... makin, thank you so much >> thank you so much happy birthday to you by the way. >> thank you very much >> makin, follow kelly @kelly -- when did we introduce siracha? not soon enough. on twitter these are our sales... by product, by region... you're almost 5,000. >> is it ...set against evolving demographics. coming up, 3 stocks on the move this morning you can actually see taste- trends. we're going to dig into an since when can we do that? electric car maker you might since we started working with bdends. know big-name retailer and apparel (announcer) people who know, know bdo. company making big executive changes. programming note, if you have questions for legendary investor warren buffet. now's your chance to ask with #askwarren the oracle of omaha might answer thison mday from 6 a.m. to 9

a.m. eastern we're coming right back. ♪ ♪ ♪ ♪ ♪ ♪ don't get mad. get e*trade, dawg.

these are our sales... by product, by region. good morning you can actually see taste- trends. welcome back to "squawk box. take a look at u.s. equity since when can we do that? since we started working with bdo. futures this morning (announcer) people who know, know bdo. dow looking to open about 60 points higher, nasdaq about 30 and s&p about six. talking about shares of blue apron. the company said it is exploring strategic options, usually means which of your devices are protected by daily security updates? daily security updates... putting itself on the block. daily? i don't know. the only thing... i'm struggling with this.

fourth quarter showed $94 some providers you have to manually download updates to each device. comcast business securityedge updates every 10 minutes million of sales and losses. it fell to $351,000 by the end to help keep your connected devices protected against new ransomware, malware and phishing threats. of 2019. the delivery service is every 10 minutes feels pretty good. get secure, reliable internet and voice for an amazing price. considered merging with other services and raising more money. call today. comcast business. you can see that stock is down beyond fast. 8% that's what happens when you pushup your sales through marketing. they were spending, spending >> here is what blows me away. i get advertising for these companies all the time >> i never used it. >> i have used it from time to time to get a free week. i don't know who thinks they are going to make money unless they are were constantly marketing. that's the problem for all of the direct to consumer

companies. they are realizing if we don't plaster the world with ads welcome back to "squawk >> we should get them on the box. time for a few stocks you need to be watching this morning. squawk pod. >> if i do a meal kit, it will joining me for that is cnbc contributor stephanie link good morning. >> good morning. >> quite a few names here be nutri-system. catching everybody's attention tesla, first of all, is over 900 >> that's different. bucks this morning, this on a that's a diet kit. piper sandler, we say now, price >> nutri-system for men. target at 928. highest on the street. we're just about $10 below that >> i see guys get really thin on level. >> i thought the interesting thing is he's focusing on the tv solar business and battery i've watched business which was only 6% of they advertise a lot does it work total revenues but he sees a total addressable anyway, shares of bed, bath and market at $165 billion that's the real opportunity that i don't think is priced into the stock. yo beyond everybody else is talking about planning to invest $1 billion. the automobile side of the business. >> right. >> this is sort of an and spending on remodelling. interesting call >> would you get involved with store designs will slash tesla? it doesn't seem like a stephanie link stock inventory to cut the clutter and >> i wouldn't. i missed it. add marketing signage. they reported a pretty good

quarter, right that's when the momentum really do you ever tweet anything that took off is interesting that is when people got >> i have a merry band of 2,500 confidence in their balance sheet, right that kind of thing so it tells you everything that they did a secondary and the stock was up on the day. followers. >> i know you do >> right i'm going to appeal to people to absolutely didn't even go down for one day and here it is up $61 this please follow. morning, just under 920. is it @kellycnbc how about some bed, bath and beyond big news the ceo telling cnbc >> yes that fixing physical stores i tweet quotes remains a focus. no wonder no one follows me. investing $400 million on >> i only have 1,200 remodeling and supply chain >> there you go. upgrades $6 billion in debt share and buy it is legit to have fewer. backs. that gets the stock up just under 5%. >> of course it was down 26% on >> i tweet pictures of my dogs friday so this is a turn around they make fun of me for using my story. you're expecting asset sales instagram on twitter you're expecting asset sale can i tweet pictures of my dogs? proceeds to be buying back stock and the dividends. i like the fact that they're >> the president high-fiving the going to buy more stock versus the dividend payout, especially at this price, right queen or something this is a new ceo. >> no, no. >> and hillary clinton at a book he's from target very good reputation he says, just going to take signing at walmart or something. time, i think, to really work. >> someone with trump >> what do you think the market is saying this morning

derangement syndrome are crazy it's up 5% is it perhaps suggesting these i put a picture. moves are not enough trump in a tux talking to the >> yeah, i think it's a wait and see. it's going to take time to see queen and below that, hillary comps and margins improve. we need to see the strategy of signing books at costco with one how we're going to see sales person sitting there there's always the amazon >> how many followers do you threat, right? that's the problem have >> he's the one with a million >> right >> i think you've got time >> i don't have a million. you know i'm all about a turn around story this one is going to take time. >> finally today, nike's new ceo john donoho is shuffling the >> please follow @kellycnbc. ranks. the current ceo will switch to >> this is getting more coo. pathetic nike shares, this is a getting to 5,000 fractional move up 3/4 of a >> it will be effective. percent. >> he's building his bench some of andrew's followers, new ceo, that's what they're going to do. i worry more about the multiple. switch from andrew to kelly. i worry about china andthe >> we are doing yours next exposure >> coming up, democratic i sold the stock right around these levels i think at 31 times that's candidates will face off tonight pretty fully valued. >> the high end of what nike has in las vegas what to tell you about michael ever traded at valuation wise? >> it is at the upper end. bloomberg from the national >> the shares up a little less

debate stage than 1%. after this stef, thanks. used for hiv in certain adults. >> thank you. new consumer price data and the latest breaking numbers from it's not a cure, but with one small pill, biktarvy fights the housing sector we'll have that for you. hiv to help you get to and stay undetectable. plus, instant reaction from that's when the amount of virus is so low it can't be measured by a lab test. austan goolsbee. research shows people who take hiv treatment every day you can watch us live on the go and get to and stay undetectabe can no longer transmit hiv on the cnbc app. "squawk box" will be right back. through sex. serious side effects can occur, including kidney problems and kidney failure. rare, life-threatening side effects include a buildup of lactic acid and liver problems. when i lost my sight, do not take biktarvy if you take dofetilide or rifampin. my biggest fear was losing my independence. tell your doctor about all the medicines mmm... good. and supplements you take, if you are pregnant or breastfeeding, so i've spent my life developing technology or if you have kidney or liver problems, including hepatitis. if you have hepatitis b, do not stop taking biktarvy to help the visually impaired. we are so good. without talking to your doctor. we built a guide that uses ibm watson... common side effects were diarrhea, nausea, and headache. to help the blind. if you're living with hiv, keep loving who you are. it is already working in cities like tokyo. and ask your doctor if biktarvy is right for you. we're changing what's possible my dream is to help millions more people like me. every single day.

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welcome back to "squawk box. the futures about where they've been for most of the pre-market session. about 80 points on the dow nasdaq indicated up 47 and you can see the s&p is indicated up 9 points shares of virgin galactic up 200% this year alone analysts say the stock of launching a company -- the company launching a commercial space vehicle soon and retail welcome back investors getting into the stock. fidelity, td and sofi. candidates will meet in vegas they say virgin galactic is the most popular stock on their with a look ahead of what we trading program. might expect >> i wonder if it's a gen z >> mayor bloomberg has not appeared on a single page or mania. millennials. coming up, breaking economic ballot that will change tonight data from january producer

prices but first a special delivery to the squawk staff our friends at the nasdaq are his decision to fund the bringing donuts in honor of andrew's birthday. campaign >> thank you noting the qualifications only you guys know me too well. >> of course. >> how many are you going to eat? >> where's ours? >> they're for all of you. >> no, no, you don't know. game he spent about $400 million in you don't know me well enough. >> you have a hollow leg. >> there we go advertising and would fund his thank you. and so it begins. agenda with a new transaction >> spells happy birthday tax. did you see that ease a massed a staff of more now it's appy birthday than 2,400 people. >> thanks. the campaign says sanders and trump in that arena are the only competitors that are viable. bloomberg has passed biden in national polls in the latest nbc news wall street journal poll. all of that largely companying at the expense of the former vice president joe biden mayor pete buttigieg is up others are roughly unchanged

here in nevada where bloomberg will not appear as a choice on saturday members for the influential culinary union say this is their priority >> right now, we are focused on the goals. we are really hard and committed at the end on whatever candidate ( ♪ ) are elected. we want to relive the field. i cowe can do theyour screening at her house. >> nationwide, about two-thirds of voters will be their authority. hi. just like in new hampshire, this is the man that's going to check your eyes grandma. candidates will change the cognizant ai solutions are helping healthcare companies course on how voters decide on the coming case here advance diagnostics and prevent blindness >> now as people are asking in patients with diabetes. everything looks good. bloomberg about his business and you have beautiful eyes. if he will sell it ♪ he used to say that if he even

ran for president, why is there more pressure to sell this thing and move away from it more fully at this point? >> kelly, bloomberg told a radio host that he would sell his company, the wall street giant to a buyer if he were to run for try to win by attacking, now, we know the trump strategy- distorting, dividing. president. i asked that question of a mr. president: it. won't. work. handful of wall street sources newspapers report bloomberg is when he decided to get in the the democrat trump fears most. as president, universal race i was told then by people who healthcare that lets people keep had spoken with campaign their coverage if they like it. a record on job creation. officials about this issue that a doable plan to combat climate because the company is so big in change. i led a complex, diverse city terms of valuation that any sale through 9-11 and i have would trigger antitrust concerns common sense plans to move america away from chaos to and there is a worry about progress! i'm mike bloomberg president trump that the and i approve this message. anti-trust apparatus could quash that deal. he didn't want to cross that bridge until it were a sure thing that he were in office >> he doesn't want to sell it

until he is for sure in office he can't tell them not to do any negative stories >> hold on for the last three years, those of us who have had concerns of president trump making money off his presidency or using his business -- >> i would keep it too so i could tell my reporters invest gate trump but don't investigate me then sell it once you get in >> those reporters are not happy because there is an impression -- >> you are kidding he told them i pay your paycheck. welcome back to "squawk box" don't say anything bad about me. on cnbc live from the nasdaq market site in times square. i'm 6'2" let's talk more about the we're seconds away from the january producer price index and debate this evening. housing starts data and just joining us now mike allen. checked with them. the ten year is at about 155 or 156. we do have some time though since we came back early let's start with us, does it come down to whether it will be maybe rick santelli has other

comments you have 40 seconds to tell me a moderate like bloomberg or a the state of the world more progressive like bernie and how's chicago? >> reporter: chicago is normal this time of year. elizabeth? it's not very warm, but really >> i think that's the breakdown. the heat -- >> that's all going to change. mike bloomberg's financial plan >> -- the heat is about the economy here was not some sort of centrist i'll tell you what, andrew, in the grand scheme of things, it financial plan looks to me like europe and it was pretty radical. japan are going to continue to he doesn't go as far as bernie be kind of skiddish with regard sanders because he doesn't want to economic activity for 2020. to smash the banks the coronavirus of course is but it was pretty radical. going to be a lingering issue they are not talking about the although we may keep our fingers fact that he seems to like the crossed be on the back side of that within the next week or so. minneapolis fed plan to all things considered, i'm still looking at interest rates as dramatically raise bank rates. this weird anomaly that is a pretty radical plans here we go january numbers coming out for but obviously investors think housing starts down 3.6% at 1 point be point 567 million bernie sanders, he's a socialist. he really means it seasonally adjusted annualized if he gets in -- tomorrow, if units. this is definitely a number that all we are talking about is is better than we expected democrats like bloomberg and how so why is it down? they took a chunk out of bernie it's down more because of a revision we're expecting a number around sanders, investors are going to

get bernie sanders as a nominee. 1.423 and we ended up, like i >> they thought there would be a said, 1.567. revision last month was rather brokered convention that substantial. if we look at what's going on with regard to permits, it ultimately picked bernie sanders. do you think that is a path this jumped over 9% to 1.5 million could go >> for sure. seasonally adjusted annualized for the moment, bernie of coursr units. it was also a positive revision is going to try to change that to those numbers which moved tonight. this is going to be by far the from down 3.9 to only down 3.7%. juiciest debate. joe is definitely going to want now let's look at ppi, shall we? to break out the popcorn. >> unreal. up half of 1% and that's both on >> emoji for his twitter gram. headline and oncor a couple of story lines. this is a big number a bit of a surprise. one, look for mike bloomberg to so core up .5. pull out oppo on stand ders. headline up .5 these follow .2 and .1 he, too, recognizes someone respectively let's look at month over month needs to disrupt him or he's on trade going to rack up probably that is up .4, also much hotter unsurmountable lead after super than expected. final demand year over year up tuesday. two, watch joe biden he has the most incentive to 2.1. much bigger than the 1.3 in the directly attack -- to go right rear-view mirror if you look at core energy at bloomberg one, he doesn't want a job in that's up 1.7.

any bloomberg administration two, they won't both want to be the electability guy as everybody around that table no matter how you slice this, is biden is furious that he got andrew, where we didn't see much on the cpi on the producer's in bloomberg said he would not get in as long as biden were viable. side, definitely see some jumping there. this is going to be hard to a third story line, the decades interpret. between phase 1 and all the of oppo against bloomberg that issues relating to trade and they're all going to pull out tonight. >> right right into the coronavirus, this so we've got to go, but, again, is going to be hard to calibrate if that happens and bernie's the into strategy but all things guy, does the market then panic considered, it's not surprising because of that or think there's to see yields. no way he's elected over trump now they haven't jumped because we've got to go. nothing makes them jump lately >> that's the risk they think there's no way we move from 1.56 to 1.57 and sanders can beat trump if it starts to look like he basically half a basis point can, that's the black swan. let's let it simmer. the dollar index continues to >> happy 30th, mr. sorkin. >> thank you, mike so kind. keep me so young >> yup i wish you hadn't -- kelly, you hover at 30 highs and euro are -- >> i am kitang off currencies in the 10th or 11th liz is next. >> follow kelly. session down in a row. that gives us a quick glimpse of it's them, calling us. how the globe feels about the it's going to be a week before they can get through on these roads

european economy shhh, sorry, i didn't catch that. kelly, back to you. >> rick, we appreciate it. i said ask how soon they can be here right now? rick santelli in chicago what's now? steve liesman has more context he says they're surveying our property now they're probably at the wrong house on these numbers steve, what jumps out to you i don't see any hovering >> first of all, i want to talk his name is hovering? about the housing numbers which look up? by automating claims with machine learning and analytics, come off that really strong january where we had cognizant is helping insurance companies advance december was up 17.7%. how they serve even hard to reach customers. a little bit of give back is not cool too bad here ♪ you have this big surge in the northeast up 32% that's the other side of the negative we talked about yesterday when we had utility production fall because of warmer than expected weather on the ppi, rick is right, very hard to interpret. a lot of weird things in there i'm going to put it aside for a minute and say there's not a lot of inflation on the wholesale level especially with what's going on with the coronavirus. if it comes back next month and we have this rise in prices we may think it, but i think for now i'd give it a pass a lot of anomalies in it i do want to talk about a new

research paper that's out which pegs the cost of the coronavirus at potentially 400 billion to as much as 1 trillion 400 billion is if it stays in asia, 1 trillion is if it comes over let me read you what they wrote. in the asian pandemic scenario the impacts on output are centered in asia in the global scenario the g7 shows notable negative impacts with technical recessions in the u.s. and eurozone in the first half of 2020 that is a worse case scenario. meanwhile, jpmorgan writing our daily trackers of energy use and transportation show no material sign of increases thus far we expect these to rise measurably over the next several days as production comes back online everybody is closely watching things like traffic indicators, electricity output, pollution indicators to get a feel for where, when and how china is

coming back online if it is. very quick, take a look at the rate cut probability this is before the number. i don't suspect they'll change much still banking on that rate cut for july 59%. that moves all the way up to 83%. when you are trying to puzzle out, why is the market taking this in stride that is the actions on the people's bank of china and other's banks including the federal reserve. >> thanks, steve someone's listening in for more on the data and the impact of the coronavirus on global economy, economic themes to watch and tonight's democratic debate let's bring in our guest, our friend austan goolsbee professor at university of booth school austan, i was looking forward to talking to you so much because i really want to focus on tonight and i want to just find out from you who you think has the best

chance of succeeding and really who you're leaning towards for the nomination so i'm just going to concede to you that trump's been impeached. he's a horrible person anything good in the economy happening right now is because of cash for klunkers and he was all right. we're on unable to do 3% as you forecast. the outbreak of the coronavirus is putting the medical product so i'm conceding all those supply chain in focus. things to you so you don't have the fda recently said it's to go into any of that stuff tell me who you think can bring reaching out to drug and device this country back to good times manufacturers to identify a possible disruption on shortages. joining us now, alethia young, economically mike bloomberg, bernie sanders, amy klobuchar? where are you on that issue? analyst, head of research and stay away from the other stuff. there's a bunch of different >> i'm almost speechless angles we don't have much time to do this can we talk about whether there >> all right if you don't talk about trump are any prospective therapeutics being bad. >> you have voluntarily said on the horizon ready in time that you were actually going to there's vaccines, which i don't buy me the dinner you owe me it know there's therapeutics and there's would have been like the cherry on the sundae. quick testing. >> i cover biotech companies so >> do you want me to send you like door dash companies like gilead and >> i'll accept breakfast at

regeneron. and gilead is looking for an mcdonald's. >> grub hub. send me your address i'll send something to you have a taste tester. antiretroviral product go ahead >> the person i'm for is mayor pete so those are kind of two it seems like with mike predominant ones but a lot of bloomberg coming in, he's kind of taking some of the oxygen away from the middle lane of the other paharma companies are looking at it. >> the gilead news that you democratic party i'm going to be interested to pointed out to us, they're see tonight -- i haven't seen having trouble filling a 700 mike bloomberg in a debate patient trial. i don't understand setting. you guys may be having seen him and they need really sick people, average sick people and as the mayor have a better mild symptom people. they're in china trying to do sense. my sense is he's a little bit it why is it so hard? thin skinned and it's a bit of a is the chinese government preventing enrollment in the weird environment to be running trial? >> i don't know if the chinese government is preventing it per for president and enter se, but i think obviously mobilizing that amount of presidential debates if you're thin skinned because they're patients very rapidly. definitely going to come after people are being found in emergency rooms and all you. >> austan, honestly, i think different sorts of places. it may be particularly tricky we're together on this for them to get the mix of trial i'm interested to see the bernie they need. and the mix of patients they sanders versus bloomberg dynamic need to basically get the trial tonight. aren't you to be run in an effective

are we -- are we voyeurs in manner at the end of the day it needs to be safe and efficacious wanting to see -- >> we are. if we have a major outbreak in >> i can't look away >> i am a little nervous. china, it has to be safe for >> i know. >> that they turned the patients. >> we introed the segment democratic party contest here into oh, this is between mike talking about supply chains. are any companies being affected bloomberg and -- >> kind of is though. negatively by not being able to >> and bernie sanders. get the reagents or products it's come down to that that they need from china? >> not yet, but i do think it's >> that's where the betting something that a lot of people are talking about right now, markets are right now, and they which is you've had small change elizabeth warren was leading for biotech, even big, right a while. mayor pete was doing well for a the small guys do discovery, while. what about joe biden preclinical development in china you were never a biden guy, with contract resource organizations and then on the austan you served in his administration large side, you know, a lot of with president obama it was vice president. companies like all of the >> i've always been a biden guy companies of the world that we and i love the vice president cover like the amgens, gileads, and i loved working with him i think for me, mayor pete is they get pharmaceutical product the smartest from china i think it's something if this he's got the most sensible plan. were to continue for another he's not from washington, d.c., three to six months it might become a bigger problem. and he's of the next generation right now i think people are very focused on putting so it's more about the future, contingency plans in place that's why i went to mayor pete. >> we need to have you back. i love the vice president.

we should know more in a couple it seems like he -- they've of weeks on some of these stumbled a bit, his campaign they've got to get up if they potential drugs or even tests or vaccines. >> certainly, thanks. want -- two big hours ahead on "squawk. >> you would be unhappy with we have a federal judge bloomberg or bernie sanders it rejecting a legal argument from sounds like? >> look, as you know, i have not aw a we will be talking to been a fan of bernie sanders program and his people have -- meagan back in the 8 clk hour. the bernie bros have come after me multiple times. and building workforce development and tuition-free college programs i have some problems with to generate the talent companies need. bloomberg walking in with a $150 billion investment in state of the art, he spent $500 million i think so far on tv ads. modern infrastructure, and a nation-leading commitment i just think if he'd of spent to low-cost clean energy, new york is doing more than any other state $50 million on ten battleground to build for the future of your business. senate races he could be new york state, the state of the future. changing the world at this point. right now it feels like he's learn more at esd.ny.gov. just trying to weigh in and buy the nomination i find it a little weird. >> austan, if i were andrew, i would now ask you if it came down to bernie versus trump, who would you vote for >> there you go.

>> hey, 100% i'd vote for bernie i mean, i'd rather have a socialist than somebody who's an authoritarian so it's -- >> wouldn't a socialist be more authoritarian. >> for sure i'm against trump. >> even for bernie >> even for bernie. >> booth school of business professor. >> i'm not a fan of bernie's, but just look at president trump yesterday pardoning corrupt officials, pardoning people guilty of gambling fraud i mean, the way the president's taking us is far more dangerous than bernie sanders would take -- >> you probably knew blagojevich, didn't you? >> i didn't know him, but he -- he extorted a children's hospital. >> right >> for money you want to build a children's hospital, you have to pay me. >> okay. what about -- okay so mayor pete, i see different

things you know, on my twitter feed, i have different people that follow me, believe me, but i hear that the moderate label does not fit mayor pete if you look really closely at a lot of his economic policies. in fact, he's -- some of the people say he's way, way far -- too far left >> let me guess, joe you and your friends think he's a socialist who's going to destroy -- >> democratic socialist. >> democratic socialist. i think his program is very sensible and i invite you, joe, to go look at it i think if you weren't already in the tank for the president, i think you would be pretty impressed with mayor pete. >> austan, let me ask you something. this proposal the white house has floated that kayla's reported about which would give people basically a tax break to put 10 grand into the market if they make under 200 grand, you know, what do you think about that idea? they're definitely leaning against all the kinds of proposals coming from the left

do you think that has broad appeal would it be good for america >> i don't think it would be that good for america. i mean, it's just -- they're proposing an unfunded tax cut. coronavirus cases in china slowing but investors remain now they're trying to aim for people with less than $200,000 a vigilant about numbers and the impact on the economy. year we already just had a $2 the latest is straight ahead. mike bloomberg take the trillion tax cut that was stage tonight when democrats massively geared towards face off in las vegas. millionaires, billionaires and what to expect in his first big corporations appearance on the national if they were proposing to do debate stage and what it means for money. that, to fund it, by getting rid u.s. judge rejecting of the high income tax breaks, huawei's case rejecting a then we could talk, but i -- in challenge on the products. my view, this is more of a we'll speak to a chief security gimme. officer about the latest move and the second hour of "squawk >> all right box" begins right now. were you back here have you been back here where you didn't let me know you were back here so you can continue with this harangue about me not paying my -- >> what harangue debts are debts, joe i didn't peg you as a deficit good morning guy but, you know, here we are welcome to "squawk box" right here on cnbc >> i went republican

kelly evans is hanging out with i'm a deficit guy. us today you say that all the time. becky has the day off. >> exactly our guest host, liz young is exactly. >> if you come back here -- also spending some time with us. look, there's a whole new list of menu items at taco bell that director of market strategy at i tell you about they have doritos flavored stuff dny melon. u.s. equity futures at this and we can eat very well. hour let's show you what's going on green across the screen. >> it's going to be on my list >> exactly dow looks like to would open up if you come back here, we'll go. 7 points higher. kfc, whatever you want to do nasdaq looking to open 35 points whatever you want to do. you name it. you name it. higher meantime, the u.s. and huawei we'll do it. have long had a complicated see ya, austan. >> see ya later. history. we've talked about it on this top stocks ahead of the show the pressure on huawei ratcheted opening bell tesla, the electric car maker, up at the end of 2018 when the getting a price target increase cfo was arrested at piper sandler ever since the chinese telecom $928 it's up from 729 company has been in the cross the firm has the highest price hairs of u.s. regulators it's considering further legal target on wall street on that options after a federal judge stock. we'll speak to a top dismissed its lawsuit challenging a federal ban of the strategist that says apple's company. joining us is andrew purdy warning from the coronavirus may be the tip of the iceberg. stay tuned you're watching "squawk box" on cnbc. don't forget to subscribe to we've had conversations about this, andy our podcast. it does feel like we are now at you'll get interviews, original an inflection point and the real content, a behind the scenes

question i have more than access look for us on apple podcasts or anything else is about the on your favorite podcast app and subscribe to "squawk pod" today. at fidelity, online u.s. stocks and etfs are commission-free. perception of huawei and what huawei needs to do not what the u.s. government needs to do and what huawei needs to do if it is to do business not just here in the united states but to change the perception in the west. >> well, i think it's two things we've seen some greater attention on one of those things, which is the impact of this campaign to carpet bomb huawei out of existence. the impact on america. i saw a tech leader on tuesday talked about huawei derangement syndrome accusing the trump administration of blocking exports, basically hurting american companies, nearly 300 american companies want to sell to huawei. we're talking 40,000 jobs. you talk about -- in the united states you talk about a lot of jobs on this program on cnbc generally, but the fact is i don't know of numbers that large that are impacted and there's no national security

reason it's blocking the ability of us to export this technology and it's already cleared national security review. it's crazy so what we need to do if you're huawei is we need to have a and when you open a new brokerage account, transparency initiative. your cash is automatically invested at a great rate. and that's what we need to have the carriers and the operators that's why fidelity leads the industry in value to call on the equipment while our competition continues to talk. ♪ talk, talk suppliers for each of us because it's a shared responsibility in cyber space. invite us in to the experts. let's talk about what it is we do to provide assurance, integrated product development and in fact our software engineering processes. let's get the experts to hear the truth, the facts, let's talk about where we are and where we need to go. >> andy, the conundrum is as long as this is a chinese company that's seen as an arm of the government, i know you don't believe it is an arm of the government, but so long as china is china, it seems to me that while our competition continues to talk. there's always going to be a we see eat emerson,mulating when issues become inspiration, skepticism and a worry, if not a creating a better world isn't just a result, cynicism, that if the government were to want be to use huawei in

it's a responsibility. emerson. consider it solved. untowardways that they could. >> and as a number of u.s. government officials said in the last year, it's not really about the company, its's about the country. china is the issue we can put in place the kinds of measures that the united kingdom has decided on, that germany, the e.u., france are deciding on we can put in measures circumstances that show we're not under -- >> just so we understand what is it exactly that you did in the case of the u.k.? >> the u.k. has government monitored evaluation of our products and the u.k. for a long time, more recently in the decision that was announced, under an hour until the opening bell on wall street. they are concerned about the dom chu rejoins us with a look role of the telecom and mobile operators because they run the at some of the morning's top stock movers networks so they control the hey, dom. >> joe, we have some of these equipment and the access so they require, and they've morning movers like what's happened with shares of nvidia identified the critical nodes in the u.k. up 1.5%. roughly 175,000 shares of

they've required diversity of pre-market volume. the computer chip maker gets an each supplier and put limits on the market share they've said if huawei is not upgrade by bernstein it was market perform. the target price at 360. allowed to participate in the it was 300 they admit they made a mistake in not being as bullish on u.k., then it will be less secure nvidia over the last year. we can't send data to china that we don't have access to they see more price stability regardless of what the chinese and more product mix going government order us to do. >> andy, there's the national forward. then you've got shares of adobe security piece and then there's which are up about 1% or so. a separate piece of being a good roughly 1,000 shares of or bad actor in the world of pre-market volume. the software and digital media company gets the price target up by analysts to 430 from 360. technology huawei's reputation has been it remains a buy rating. less of a good actor and more of they conducted a survey that shows positive trends in a bad one. what's changed at the company, adoption those shares catching a bit of a if something has changed, that bid. then we have shares of tencent might ultimately change that perception >> well, briefly, the context. music. falling roughly 15,000 shares of in industry where in the last pre-market volume after analysts five years apple has been over at oppenheimer downgraded involved in 596 intellectual it to market perform from outperform property cases they cited among others things samsung has been involved in 519. we've been involved in 209 uncertainty around live streaming regulations and since ten years ago there's been increasingly competitive

environment over short form great progress by the industry video platforms. pretty specific, kelly we have 11,000 patents in the those shares are down. i'll send it back over to you. united states. >> dom, thank you. we're already getting the debate we purchase over $1.4 billion in started back here. let's bring everyone in on this. licensing rights to products talk about the markets we spend $6 billion to rich bernstein is here at companies, 80% of american companies, rights to use richard bernstein advisors and a intellectual property. cnbc contributor before we talk about warning we have strengthened our signs. >> yes. >> how do you think that the internal and global compliance average person would describe the economy and describe the program. >> andy, i don't want to stock market right now relitigate the history because i mean, is it -- we know there obviously there's a history and are always imbalances, right becky and you have talked about >> right. >> do things feel dangerously it imbalanced to you? it is littered with examples >> no. >> would you say we're in an that are less than attractive, economic boom? let's just suggest, but what i'm how would you characterize it? >> first of all, to put it in trying to understand is what do you think has changed in the proper perspective we're last several years inside the company when it comes to ip benchmark weight equities so we're not bearish. compliance and all of that the reality is gdp growth has >> well, i think the been below average strengthened internal compliance the yield curve is inverted. and internal accountability has been following the model that corporate profits growth is 2% the united states uses for and we're talking about things like tesla and virgin galactica strong ethics and compliance program. and the strengthening of the as being the future. cross licensing with various that's very strange. >> that's all true.

companies of america and others >> battle star galactica where everybody's understanding who's using what and people are it's virgin galactic. going to pay for it, sometimes >> whatever it is. i don't think you're going to it's an equal swap, so that's a mars any time soon. >> here's my point, richard. very different kind of thing you're absolutely right about >> andy, we've got to run, but the financial markets, but in the so-called real world, in the final question what's going to happen next? unemployment rate we have meaning in terms of the personal basically a historic low. >> absolutely. >> wages moving -- so it's not me pirm mutations with which you just an artifis of financial see this entire battlefield playing out. what's the next shoe to drop engineering. how do you square that with the yield curve. >> the cabinet meeting set for >> as an investor you have to sit here and say what will february 28th. the decision on whether the people be talking about 12 months or 18 months now? efforts that the department of defense and treasury came it's not what's going on right now. if you had said to people two forward with calling into question the further limitations years ago or three years ago on the ability of american that we would be in the companies to sell to huawei situation today people would have said you're crazy. because those companies need the financial support, they need to >> you mean with the unemployment rate? >> with the unemployment rate, be able to do r&d. with the economy even if you did it five years they need to support the ago people would have said american defense industrial you're crazy i don't think today we should base we need to protect america first say oh, wow as investors and foremost the lesson of the u.k., those we can sit here and say is the economy great today? the economy is fine, yeah, but are going to be very important what are people going to be steps forward because those talking about a year and a half, countries want to use a fact-based approach. two years, three years from now? >> andy, it's always good to see

you. we appreciate your time and >> do you date your -- you were perspective. bullish for a long time. thanks so much. coming up, the market we gave you a lot of credit on remains focused on the that do you date your becoming less coronavirus outbreak and its affect on business bullish three quarters ago we're going to speak to a >> roughly i said mid year. portfolio manager and get some >> where was the s&p then? investing ideas after the break. >> i don't even know check out tesla ideas. >> all right >> if your point is is the piper sanders raising the target s&p -- >> no, let's say that eventually from 928 to 729. that there isn't a day of the new price target makes piper reckoning and that we go on to the biggest tesla bull on the street and a programming note. 3500 or wherever don't forget to join us monday will you look back and say, i for a very special edition of miscalculated something? >> my miscalculation would be a "squawk box. if you have questions for true legendary investor warren for instance the yield curve buffet, now's a chance to tweet them to us with #askwarren and ed yield curve inverted and everybody is now saying it doesn't matter which is typical. follow @kellycnbc. >> at that point, what would you do would you still say, do you ever oracle home at 6 to a.9 m. say okay, these signals that i eastern. "squawk box" coming right back saw were incorrect and i need do you realize how many different taxes we pay? to -- i'm going to go above benchmark weight >> i don't think for us right sales tax, different p-o-s systems in all seven countries. now, i think we need to be proven rock in the future. and online sales? >> that's whey mean -- 4,000 or

that's a whole other system... and different regulations. if it keeps going up over the therere'realal eate e crits,s, . year >> it's not just the market, though, joe. and we have no way to integrate all that? we can go to '99 and 2000, no... but bdo does. saying the market kept going up and going up and then it peopopleho k kno knonow o. crashed. from our perspective it's the combination -- >> it's possible it comes down >> my point is you want to have a back to the acceleration in the market and i think that is starting to diverge. >> other analysts have seen a problem with the fundamental background for five years and guys from last year, wilson or a every year, our analysts guy at ubs, trahan visit thousands of companies, in a multitude of countries, where we get to know the people they had problems for the last that drive a company's growth 40% of the market they had a and gain new perspectives. problem with the fundamentals. that's why we go beyond the numbers. >> if you look at the tradition t. rowe price. invest with confidence. applicators that set up the warning signs one by one by one, if you five years ago that was a stretch to say there was really warning but i think today it's a little more realistic. >> last year seemed to change the narrative considerably, early last year we had the three-month, ten-year inverted and a lot of warning signs

the fed cut rates three times ultimately steve told us they're pricing in better than 50/50 odds there's a rate cut coming this summer. do you think a rate cut is coming why are we talking about one with unemployment the way it is and is that the difference to once again remedy the yiel curve situation and unlock -- >> it's an interesting question. the fed has a dual mandate, right? low unemployment, stable prices. that's why we go beyond the numbers. which of your devices are protected why would they be so in an by daily security updates? daily security updates... easing mode with the daily? i don't know. unemployment rate of 3.6%? the only thing... it must be the price sign. i'm struggling with this. they must be worried about some providers you have to manually download updates to each device. deflation. we're turning it around, what comcast business securityedge updates every 10 minutes people are missing is that the fed has a sea change going on to help keep your connected devices protected here, they're pro inflation. against new ransomware, malware and phishing threats. this is not the voelker fed every 10 minutes feels pretty good. anymore, not a fed that's fighting inflation get secure, reliable internet and voice for an amazing price. this is a fed that wants inflation and i think thefixed call today. comcast business. beyond fast. income investors are fighting the fed. >> um-hum. >> and i think there is a major sea change going on here in monetary and fiscal policy, by the way.

it's proinflation. >> they sea the see change and think it's not going to work not going to get it. >> fight the fed that's what it used to be. the fed eases and it's never going to work. they can't get the economy going. >> you look at what happened in japan, they passed that massive increase in sales tax, the economy plunges 6% annualized. >> absolutely. >> here you have a situation where the pickup we talked about earlier under president trump was pro-growth, tax reform, derogd deregulatory and the debate tonight we're not hearing that message. we'll hear more like what happened in japan. cnbc has learned that boeing people want inflation and growth, i think it's too told employees that it two-extremely different discovered foreign object debris algorithms. >> politicians talk about pro in the fuel tanks of several 737 growth and never tell if you max planes that are in storage it's real or nominal growth. the company plans to investigate to a politician, they don't the foreign objects in the tanks care they want growth and i think and said the discovery won't what is starting to happen and impact the plane's return to what we will see over the next several years say shift towards service. they said the -- said it is nominal growth and away from aware that boeing is conducting real growth and i think that's a voluntary inspection and out there. increased its surveillance based that's the opportunity or the risk, depending on how you want

on initial inspection reports. to look at it in the financial markets over the next several years. >> look, the stock is not >> it's going to be spend, trading down on it. spend, spend >> what are we talking about >> you've got consumer here confidence at a high with the someone -- >> honestly, you wonder if budget deficit growing they're becoming scrupulous that has never happened before about every little thing that we've got this huge divergence might go wrong as almost kind going on and the reality of of, hey, we know we messed up on where that growth is coming the big thingment from it's not really private sector i'm sure they're being super growth right now >> rich, thank you we appreciate it careful. >> if there's anything that's rich bernstein >> time to get down to the new not jet fuel it could be a problem, could clog the line york stock exchange where jim do you see this story? cramer our good friend joins us. can you add anything to this jim, nice to see you, sir. are you boycotting because it's >> oh, gf doughnuts your birthday. >> no value add. >> nothing >> nothing. >> the first time you haven't today. had something to say about -- >> it's his birthday, jim. >> on anything >> down to how many have regot here i'm usually willing to spout it >> happy birthday! off about whatever it is. >> do you think it's trump's >> can you see, i don't know if you can see this, jim. fault probably somehow if we could connect the >> dunkin' donuts got a dots back to -- it probably is the emoluments. >> emoluments. downgrade. >> you know -- >> letters happy birthday >> we can only hope. andrew i'm kidding. i think the glazed are better let's check on the markets than than the chocolate. which are looking to rebound here is where i want to go with today after the dow fell for you, jim, virgin galactic. >> oh, my.

three consecutive sessions sandy pom roy is a senior >> stock is on a tear. it's shooting up, if i could be portfolio manager. so bold. liz young is our guest host and >> but now look, when i go in to she's director of market twitter and i say look, this is strategy at dny melon. sandy, real quickly on boeing, a short squeeze. people say no, it's not a short not to belabor the point but, squeeze. i would tell them they're ill you know, it's a big member of the dow. advised. this is what happens when too it's been plagued by issues. many people want a stock around the clock and this thing was at would you do anything with that stock or what do you do with it 12, no one's going to mars that at this point? >> so we don't own boeing but we i know of. but it can't be stopped right are following it closely because now, and these things tend to end badly but you try to tell it at this point does have a 3% someone that they think that this is tesla. dividend yield that's about where we get they better put -- these guys interested we run an equity investment better put someone on mars like strategy and we are looking at yesterday. this guy is a charm guy. stocks that pay 2.5 and might remember it's virgin galactic. there's nothing he can do that's grow. >> boeing totally fits into our wrong, right isn't he an angel or something, other-worldly guy? >> not a stock but i want to ask fisching fund. >> would you reel it in or is but this, we've had a debate the story too risky for you? about it all morning and you >> no, we're following it lived through it closely. there would be a better buying michael miliken and the pardon, opportunity. the way we're taking interest in what do you think? >> i'm in the jim stewart school it is we've written puts the judge wood analysis.

i also think the guy paid their we think if something were to dues not a lot of people paid their happen and we were to get that dues he did serious dues paying so i selloff, we would be comfortable buying at that price don't mind that he was pardoned. that's where our research tell there are few white collar guys zblus i'm curious if you're that have ever gone to jail. doing equity, you have bond this guy did i think there are a lot of market valuations that are so people in 2007-2009 deserved to high, yields so low, i can't imagine that there are a lot of have his punishment and didn't stocks that look pretty get it and at amazes me. attractive for people who want some income. where would you have people look i disagree with jim, i think the guy has done a lot of genuine good since then. i think -- so he's done more if they say i don't know if it good he certainly spent more time so i don't know. i mean if the people -- i know looks great for valuations at one point jim said well mark >> it's funny. rich got a pardon. stocks relative to bonds look what did mark rich do? fantastic. the yield spread is just out of did he ever do seminars to try this world to make the country better we only buy stocks that actually did he ever pay the price? can grow those dividends so i don't mind miliken, i think not only are you not buying fixed income stream, you're buying a growing income stream it's fun the guy really suffered. so it has that advantage as he really did pay the price. well we have a diversified portfolio what's the matter? dave is giving me some heat. across a number of sectors the best value is in all the oh, david's talking about some other guy. really unpleasant areas. >> we will watch you and david >> per usual and carl and the rest of the >> yes all the commodity companies. gang in just a minute.

>> happy birthday! the energy companies have big >> thank you >> this is a big day, andrew fat dividend yields right now. we own some of them because as i >> i'm eating the "r" in andrew. said we try to have this >> he wasn't kidding how many diversified portfolio. we're not all betting one way on doughnuts he eats. >> for real. >> are you going out to see reets, for example, and yielding buffett? >> becky is going out to see sector >> right. >> we have the diversified buffett. >> remember that time you went portfolio. to see buffett my point of view is if we were it was really fun. >> yes, years ago. to have a regime change and be >> i liked that. this other stuff were to start to work, we want to be able to yeah, that was great absolutely participate in that. happy birthday >> we used to have a counter how many doughnuts we were eating at we're willing to suffer them not one time providing that return right now i don't know what happened in exchange for a time when they anyway >> "squawk on the street" in ray could. couple minutes >> you and sug aarre a scary >> do you see in the energy industry as a potential, not just the dividend yield, going combo. you taking us out? your mouth is full forward let's call it the next five years, is there potential your neighborbe mad for energy to actually produce always wants to hang out. that return? are we going through a transformation to the point that and you should be mad your smart fridge is unnecessarily complicated. energy becomes a smaller and smaller piece of the overall make ice. index and a smaller piece of making ice. investor's portfolios? but you're not mad because you have e*trade >> it's hard to know which isn't complicated. it's under assault in a million their tools make trading quicker and simpler different ways you have esg funds that are so you can take on the markets with confidence. massively liquidating. you have the coronavirus that's don't get mad get e*trade and start trading

really shut china down commission free today. practically. dampening demand and you have this transition that's taking place. renewables, very slowly but it's happening. the question is, you know, is there one great bull market still out there in energy before something else comes to take its place, and if you just look at the supply that's being delivered right now because the shale drillers are being starved more and more for capital, it's creating a situation where you could have that one last, you know, opportunity. >> one last opportunity? >> well, it's hard to know, right? we have to see how it all but inside every etf... evolves. >> you did bring some names here there are untold hours of careful construction... that you think could be interesting for people, infinite "what ifs?" and contingency plans. including next air energy, creating funds that help target gaps bristol-myers. caterpillar and eaton. in client portfolios. tap untapped potential. you think caterpillar can be an okay stock and strengthen confidence in you. flexshares. >> i put that in the same category as boeing powered by over a century of investment expertise we bought it back in the fall. it had a 3% dividend yield before investing consider the fund's investment objectives, things looked rock bottom. risks, charges and expenses. go to flexshares.com

the pmi was bottoming out. for a prospectus containing this information. we thought it looked like a read it carefully. value. the company came out and basically endorsed the fact that they could generate about $10 in pre-cash flow in bond cycle. to us if indeed that is true that represented a good value to us so we bought it the industrials, because they are sort of a stepchild or cousin of some of these more commodity oriented sectors do represent good value in the market right now. >> sandy, we appreciate it sandy pom roy. liz will stick around a little longer. michael mill kken, pardonedy president trump who pointed out the support milken has given to cancer research. we'll discuss that act of clemency with jim stewart who wrote this book in "den of thieves. coronavirus, many who rely on products from china

stay tuned, you're watching "squawk" on cnbc. time now for today's aflac trivia question. in what year did coca-cola company purchase minute maid anerhecn "uasqwk box" continues .but not what the so we're answering their questions. aflac is auto insurance, right? no. uh uh. is it homeowner's insurance? no... uhuhuhuh! is it duck insurance? nope. ahhh! do they pay me money directly when i get sick or injured? yeah. aflac! lsht, thank you. you got it. you know aflac! >> i don't know if they're going boom! to like it but thank you get help with expenses health insurance doesn't cover. >> make sure you join us tomorrow "squawk on the street" is next get to know us at... aflac dot com. ♪ ♪ good wednesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. future is green after three days of losses for the dow. investors looking over some of

the coronavirus headlines this morning including the smallest number of new confirmed cases since january although the death toll exceeds 2 . europe a surprise up 0.5, looking for 0.1 weveryone, looknk isn'tat your phones. the design thinking, the digital engineering, security, blockchain, and we will be first to market! yes. when we do we launch? unfortunately, in 2 or 3, hours. why the delay? cognizant is helping banks use digital technologies at scale to advance speed to market. 1 in 4 of us millennials have debt we might die with. and most of that debt is actually from credit cards. it's just not right. but with sofi, you can get your credit cards right by consolidating your credit card debt into one monthly payment. including your interest rate right by locking in a fixed low rate today.

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. now the answer to today's aflac trivia question. in what year did coca-cola company purchase minute maid the answer, 1960 president trump is pardon doning michael milken, the former junk bond king spent years in prison for violating securities law today he's a prominent philanthropist joining us is jim stewart. he's a cnbc contributor. he wrote the book on big scandals called "den of thieves. i haven't talked to you. i haven't pre-interviewed you on this, jim, but i was in the business back then i thought of going to drexel i always thought that milken changed the world in ways for the better i thought parking stock was not an egregious -- i don't even know if at the time whether he was absolutely aware that that qualified for jail time compared to bosky, marty siegel, some of

these true -- guys carrying suitcases of money to get inside information. i think "the journal" talks about it going after wall street greed in an era that caused prosecutors to be over zealous, one of which, giuliani, he was doing it for a reason. he wanted to become mayor, which he did, and he inspired the love gov to become -- >> talking about spitzer now >> yeah. everybody knows the love gov inspired him to make his political hay by doing the same thing. am i wrong that milken was positive for society and finance? >> i'm not disputing that milken did a tremendous amount on wall street. >> good? >> good and bad. i've never had any quibble with junk bonds they're thriving today but they were misused in that era the point i would really stress is that the justice department did very thorough investigation of this case judges oversaw it.

i quoted judge who sentenced him talking about how serious these issues were. these particular crimes did create tremendous amount of collateral damage. i think another important issue that i find troubling is the whole point of having milken going to jail or any white collar criminal for that matter, it's not that they're going to go out in society and commit a crime, it's the deterrent factor. >> you say net-net the collateral damage is a net negative versus giving financing to -- i mean, how many companies could issue bonds before milken? there were about 20 or 30 companies in the entire universe. >> based on -- >> it's not part of the measure in a courtroom of whether you go to jail or not, right? i mean, you could use -- >> that was a lot of leeway.

there's a lot of leeway whether someone gets jail time or not for things rapists sometimes get three years and other people get ten. >> now you're talking about the sentence or whether or not he was guilty he pled guilty. >> i understand that but i'm looking exactly what the infraction was it wasn't insider trading, it was parking stocks it was not nominally known that he owned that stock so he could build a position. >> i agree it was not insider trading. the law is the law it's not for us. we may not agree the sentencing for the securities frauds which he pleaded guilty were what they were the law was what it is. >> okay. >> you can disagree. it's not as bad as -- they say that on many -- >> how about prison life that doesn't play into -- >> i think it does i give him a great deal of credit. >> not enough. >> all though i point out that he immediately went out and started violating his ban, his securities ban when he got out of jail doing deals for people like ted turner. even putting that aside, yes, i

give him credit. let's keep in mind the reason he could do this is because he was a multi-billionaire. all of these good works were due to the fact that he was so rich. he could afford to do it, and good for him he could have horded the money >> did you receipt "the journal precepts"? it's diametrically opposed it's like "the new york times" and "the wall street journal." >> i was doing my milken reporting at "9 journal". >> they threw you out. >> i would report the facts. >> you left them, they didn't leave him. no, i think the facts are different. that's the thing you can talk about this, "the journal" is looking at this the way you are. what did he do for society kind of way you can say he did good things and then there's the separate issue did he do the right thing, the wrong thing. >> i know what he did with parking stock. i never had a problem. >> by the way -- >> i also didn't like the way

that the government destroyed drexel, too, because it wasn't part of the wall street sort of establishment. it wasn't white shoe it was an up start and they really did destroy it. >> i think there's a bit of rewriting of facts. >> it's true they were an up start. that was part of what made this a very interesting narrative there were a lot of people who were 24re9end by what was going on that to me does not justify the fact to break the law. by the way, drexel also -- >> what? >> what is the -- i have actually a very different question which is he's pardoned. whatever was the sentence about michael milken and the history, whether there's a pardon or not, it will still say that this happened some people will say this whole thing is politically motivated, that trump is the one who gave him the pardon people question trump's credibility and his credibility. i'm not so sure. is this a net benefit to his life >> i can't imagine his daily

life is going to change one bit. i think again one thing i find troubling about this in the broader context is the whole rule of law in this country is seemingly under threat at this point. this is part of a broader narrative. we have the justice department in turmoil >> it's true >> all right >> i mean, did the justice department -- >> we need to bring back the paragon of law eric holder, get him back in charge of justice. give me a break. anyway, thank you, tim stewart >> thanks. thanks you're safe >> you haven't been here liking the now platform?

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welcome back to "squawk box. i'm dominic chu. we are starting with shares of garmin up over 5% or 5,000 shares after pre-market volume the company known for gps location devices reported profits that came in the best. it was helped by strong growth in fitness wearables it helped offset sales and declines in its auto products unit garmin will have a hike to 61 cents per share. those shares up 7%

next up you have shares of dish network up nearly 1.5% nearly 2,000 shares pre-market volume after they reported better than expected profits and revenues as well dish is still losing paid tv subscribers but at a slower pace than the last time last year they're leaving the streaming service compared to a year ago those shares up 1.7% not an earnings mover but there's tesla stock which is catching a bit of a bid which is up 7% thanks in part to a price target upgrade at piper sandler to 928 to 729. by the way, that's a current street high for wall street estimates. joe, the reasons among them, more optimism and positive commentary about the battery business we'll see if that keeps that momentum going there tesla still on a wild ride this year. >> getting used to that piper sandler. >> i said it, too. i keep jaffry.

>> what the hell happened. >> never be the second name. >> that's why i can't believe they named it viacom cbs it seems like such a demotion. >> you know, you're right. if you want an answer, kelly, about what she feels there, it's @kellycnbc. >> 4300. 4370 something. >> what do i do in return for this social media? >> i'm doing this purely altruistically you're on instagram, too >> oh, yeah. i'm on tiktok. >> no. >> coming up, the effect of the coronavirus. kate rogers has a preview. kate. small business owners who import from china are eagerly awaiting factory reopenings. we'll have much more coming up after the break on "squawk." to infrastructure, we're creating state of the art, 21st century transportation hubs, constructing new bridges,

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sales tax, real estate credits, solar incentives... and we have no way to integrate all that? no...but bdo does. (announcer) people who know, know bdo. welcome back it's not just the major companies watching the coronavirus closely, small businesses who keep less inventory on hand may be hit even harder. and for those that import from china, which is many of them, the ongoing factory closures mean supplies are dwindling. kate rogers spoke with two business owners who are trying to protect themselves. >> reporter: as the number of

coronavirus casesaround the world continues to rise, u.s. businesses that import from china are eagerly awaiting factory reopenings omg accessories is a lifestyle brand for kids that imports most of its signature unicorn backpacks and accessories from china. made in a factory outside of wuhan where the virus has been most heavily impacted. she has enough stock until back to school. her manufacturer's reopening date continues to be pushed back. >> i do communicate every day with my overseas partner and we're just day to day following up making sure that everything is moving along. we're just hopeful that they will find a solution. >> reporter: kyle kirshner owner of kindly has learned to stock extra inventory ahead of the chinese holidays while he has a three-month supply on hand, he's eager to put in his next order for

backpack coolers if he runs out of product his amazon rankings may drop. >> we are one of the best sellers on amazon in that category right now i contacted my manufacturer today and their factories are closed right now because in shenzhen the virus is pretty -- it's up there pretty well. >> the outbreak is out there the group says the global impact of coronavirus is a threat to small business sentiment it's obviously something that we're watching very closely as are the small businesses. >> how can you lose your spot on amazon that could be catastrophic. >> another business owner said basically i don't have the capability to say this is back ordered and it will be back in stock. you don't show up for prime and you're not there as a top seller and you lose your ranking. it's important to make sure you have enough supply. >> it sounds like they have enough inventory now for months. >> right. >> is there a chance that once

people go back to work they work overtime, they work harder and we can build it up >> i think that's the hope both of these business owners have been doing business in china for a long time so they increase their imports around the lunar new year so they were stockpiling. they're concerned about the factory reopenings because the dates continue to be pushed back. >> get that backpack cooler. >> that's right, or unicorn backpack. >> that's right. kate, stick around. >> stick around. want you to be part of this next conversation joining us from seattle, an amazon seller that provides usb blue tooth plugable works with 15 factories in china let's just start here, which is what's the impact been for you and what do you see out there? >> right now the factories that we use, our factory partners, are not fully open yet they're eager to be, but it's really amazing what's happening in china over the last few

weeks. they're being very cautious. each factory is having to get local government approval to open and then actually each employee, some of whom are traveling, you know, from around china to get back to, would, they're being individually screened so at this point there's actually only a percentage of factories that are really running and those that are generally have less than 100% of their staff. >> what's your inventory look like right now >> you know, so this is an interconnected global supply chain that we try to be as lean as we can. so we, as one example, have a top seller that actually sold better than we thought over the holiday of our triple display