the future of theme parks everywhere we'll take you there live. elon musk taking on california, threatening to move tesla's headquarters to another state. we'll see whether he answered andrew's tweet monday, may 11, 2020 and "squawk box" begins right for you. good morning, everybody. welcome to "squawk box" on cnbc. i'm becky quick along with andrew ross sorkin last week was the first time in three weeks all the major leading higher nasdaq back above 9,000. nasdaq is up by four points but

dow futures are down by 40 s&p futures down by 5.5. if you want to take a look at the treasury market, the ten-year right now at this point, of course wti, i should point out, is down by 2% still trading above $24. the ten-year yielding 0.7% 0.697% andrew we'll get an update on the pandemic the number of cases worldwide, crossing 4 million with 1.3 million, that's in the united states the biggest hot spots in america are new york, new jersey, massachusetts and illinois all with more than 75,000 cases. now, new york's governor cuomo saying yesterday the number of new cases was back to the level from two months ago. lots of good news there, when he first issued the shutdown order. overnight, india, reported 4,200 new cases in the last 24 hours the largest single day increase in the country

they are entering the final week of a nationwide lockdown a few cluster formed around nightclubs in south korea. they eased restrictions last week but on saturday, shut down all clubs, bars and discos in seoul after dozens of infections were linked to those hot spots good news back home, guys, that some of the numbers are starting to look more positive our way. elsewhere, things are potentially becoming more challenging. we'll see. >> part of my ritual now on sunday nights is looking at the futures at 6:00 p.m. when they open right in the middle of mother's day dinner. but initially we were up like 100 points and a lot of football websiinan wrote, dow up back-to-back days on reopening hopes then oil looked okay yesterday, too. suddenly oil sort of weakened this morning and maybe

overnight. it was down more than a percentage point and then you could just sort of see the stock futures. where you are? what the hell happened, sorkin i expected to see buzz lightyear going behind you doing infinity and beyond look at your bad self. did they put that in for you >> we renovated over the weekend. home re in o. >> is that a plasma screen it's a big thing behind you. >> it's a plasma screen. >> you're in the same place. >> a little extra energy in the morning. we're all upgrading. >> man, oh, man, you are -- it looks like - >> we can -- >> i thought you were broadcasting from spacex i thought you tweeted elon musk and i thought he sent you up what happened there? you appealed to him for an answer and he just blew you off.

>> he didn't respond i was having a conversation with a friend over the weekend how things i had been surprised by and mistaken by over these past month or two -- >> that must have taken a while. >> and i noticed a tweet -- thanks i noticed a tweet of something elon said about how he was much more optimistic about what was going to happen with covid clearly a mistake with where things were. he's a very smart guy. you always want to understand how smart people think about things and where they get surprised and what happened. i shot him a note. unfortunately, he has yet to supply hope springs eternal. >> he's so smart, he's off the charts you needed to have three years of calculus to see his kid's name, i think. did you see -- >> i saw that. did you see the podcast where he was explaining how to say it >> yes >> i saw somebody else say they thought it was symbol for kai --

>> he didn't know how to say it. >> it's an x and ae which he said is for ash. what's the name -- >> he said ash but she said i and he said ash. if you ask the two parents -- >> in the old days when we used to cut sound bites, do you remember in "splash" when tom hanks asked daryl hannah where her real mermaid name was and she goes -- i think it's kind of like that, isn't it? you need to be - >> i'm sticking with kyle. i like that. >> kyle's good >> well, he knew about your kyle maybe. anyway, did he make that latest -- does that thing actually move, that robot behind you? that's a cool looking thing. that took a while.

>> oh, kyle's thing? >> yeah, yeah. he wanted me to do this. it does -- if i can figure out how to do it without breaking it it lights up. >> wow, that's cool. >> he spent a lot of time building legos. >> how was mother's day, andrew? >> it was great. how was mother's day, andrew >> i can't really repeat it. i can't repeat the story all i'll tell you is we had a fire in the oven on saturday so we had to clean the oven so we had to put all the baking soda on and it was ready to be cleaned on sunday and she wouldn't let me do it. so mother's day she was fully in the oven with gloves on. i was drinking coffee. i stayed and watched the entire thing. i did. i never left >> i not trust you either. >> but it's -- she said that you would do a half-ass job but -- but on mother's day it killed me i'll never live it down. anyway, a new week - >> at least you feel bad

that's good. >> i feel bad and then i try to do a lot of other things try to cook and do other things. grill out. awe new week means fresh progress getting back to normal in this country. it's going to be tough, obviously. but this is -- i mean, how do you do social distancing in an apple store? it's always -- i guess you have to only let a certain amount of people in because it's always so crowded. macy's and apple are reopening stores carmakers ford, gm, fiat chrysler resuming some operations this week states including arizona, arkansas, kentucky, florida, all allowing some businesses to open their doors. meantime, president trump announcing the federal government plans to offer fresh support to this country's farmers amid the ongoing pandemic the president said the u.s. is going to buy $3 billion worth of dairy, meat and produce. farmers have been forced to destroy crops, dump milk and throw out perishable items that

cannot be stored as the outbreak disrupts this country's supply chain. how are they going to open apple stores in malls that aren't opened have you thought this true. >> those won't be opened. >> free-standing - >> how do you try on clothes again? >> yeah. >> where are the apple stores exactly? >> all of the free-standing -- joe, all of the free-standing stores if you're in a shopping mall, unless the mall's open, obviously, those stores won't be open now. >> some the stores in short hills mall are open. >> and some stores that are not going to be open in municipalities where there are still restrictions. >> but how will it -- the social distancing will be depending on how many people get to go into the store at any one time. there will be a line - >> i waited on line to go to target this weekend. they have lines on the floor you had to either -- >> one-way with -- >> how far sh had to stay from each other.

>> you ventured forth. >> that's new for you, isn't it? >> i'll tell you, the kids wanted to get all sorts -- we were on a big mother's day shopping spree on saturday but what i was going to say is, there were people inside the store without mafshgs and people inside the store with masks. and there were confrontations between these people >> i saw that. >> it was very -- i'm saying this was happening in front of us it was scary to see. >> andrew, you can put in an order at target and pick it up in the parking lot and never have to go n. >> you can do that at bed, bath and beyond, too. >> i'm learning that now >> we did that to get a broiler, which is what was on fire. it was a saga. it really is anyway, let's get to yunis

this seems positive. how do you open disneyland >> they opened it and there were demand let's get to shanghai disneyland reopening to customers after a three-month shutdown a look at what theme parks could look like in a post-covid world. if you open it and they come, i guess that's one part of the story. >> it's true people are coming. of course, disney is managing the coronavirus concerns by screening everyone's temperature, asking visitors wear a mask and keep a safe distance from each other >> reporter: another sign life is getting back to normal in shanghai, selfies in front of the disneyland castle. after being shut for 15 weeks, shanghai disneyland became the only theme park open for business it's definitely not business as usual. they are under post-pandemic restrictions the man in head of operations,

andrew. >> we have that space around everybody. >> reporter: every line has markers instructing people to keep at least three feet away from the next person at entraentranss and even on ris like pirates of the caribbean. >> we put an entry seat between each group and an empty row. >> reporter: at the park visitors get constant reminders to keep a safe distance from each other at the restaurants, entire tables are blocked off. >> at the restaurants the menus are the same but the service style may be different we won't have buffets. we will have the buffet concept but serve the food for you. >> reporter: hand sanitizers available at restaurants and stores, mobile payments encouraged to avoid passing of cash theaters will stay shut. parades limited. no fireworks to discourage crowds you can still see your favorite characters just don't get that close. mickey and the gang are social distancing just like everybody else no shaking hands or hugging. that has to wait for safer

times. >> disney is capping the daily capacity at 30%. that's about 24,000 visitors a day. what's interesting is from a general experience for the visitors here for today, it's less crowded if you could get over the idea that there's this pandemic going on and so if you could get over that fear, the experience is quite nice a lot of people were talking about how it's not that crowded, a lot of excitement you only have to wait in line, people were saying for about five minutes to get onto a ride there's not that kind of stress to get everything done you might see at a park if you go to disney >> i wondered how they would deal with the social distancing. we've been telling people, the cdc has been telling people, and i think w.h.o. has, too it, you need six feet between people how did they come up with the three feet

>> the company said that there are several different guidelines in china right now it's actually been one meter or three feet so, they were going with the three feet or one meter guideline. but it's different i think what's happening here is disney is figuring out what works in different parks social distancing here, will it work elsewhere i actually specifically asked about the health code because there's a government mandated health code in china that the shanghai park asks all the visitors to show them. that's not something that would potentially work in the united states where you probably won't have a government-mandated health code. there's still a lot of learnings going on the company tells me they are sharing a lot of these discussions with people within the industry >> i guess part of it is, if you were still forced to keep six feet apart in the parks, that would mean you would need two lanes -- or two aisles in

between everything on the rides, which means you'd get a lot fewer people going through i wonder if that's a point that would make it uncomfortable for companies to operate here in the united states, too >> i was actually asking a bit about the financials, but, you know, the people that i was talking to are on the operations side nobody really had much to say about that the executives are actually outside of china because of the way the restrictions are for travel, none of them were here for this reopening. >> thank you very much it's great to see you. keep us updated on things are going there. >> over the weekend with he heard a couple things. number one, actor and comedian jerry stiller has died i don't think it had anything to do -- natural causes according to his son, ben stiller, who confirmed and tweeted this morning, his dad passed away from natural causes.

one of the greatest and the founder of festivus, which is celebrated, the airing of the grievances, the festi vuchvus, h was celebrated on december 23rd, if you remember that i think he may be best known for how great he was as george's father with that -- with the actress that played his mother obviously, stiller and myra in my day, sorkin, were a big duo, too. there was a time when they were as big as empty duo. but i think even before, you know, ben was born one other thing that happened. i have to tell you guys about this little richard was unbelievable. he was part of my childhood. f influenced so many people, including the beetles. i heard this on a competing network from a young correspondent that a lot of major music stars tweeted regards to him, including mick

jagger, elton john and tom petty. she said that with a straight face. >> tom petty >> said that with a straight face i -- i rewound the dvr just to see, did you really say tom petty? >> that would be a feat. >> that would have been through a medium of some kind from beyond tweeted it's like, come on up, little richard. i don't know it was crazy was he part of your childhood? little richard -- >> little richard was part of my life we send our condolences to both families >> neither one had -- every time you see it you think, oh, no one was bone cancer and i think jerry stiller was 92 or something. a lot more to talk about when we come back. more signs of progress in the

effort to ramp up covid testing in america dr. scott gottlieb will weigh in on the latest emergency use authorization. he has some important things you don't want to miss. elon musk taking on the state of california. threatening to pull tesla headquarters out of the state. we will will debate that whe quk"etns right after this (vo) since our beginning, our business has been people. and their financial well-being. it's evident in good times, with decisions focused on the long-term. and crucial when circumstances become difficult. that continued emphasis on people - our advisors, associates, clients and communities

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welcome back to "squawk box. the fda offered emergency use to quidel for antigen for covid-19. in his latest "wall street journal" op-ed, former fda commissioner dr. gottlieb says antibody testing could be the key to stopping the coronavirus if we make sure the tests are reliable dr. gottlieb joins us now. also, of course, a cnbc contributor, serves on the boards of lumina and pfizer. great to see you, doctor walk us through the importance of this, how it works and how it could be a game-changer. >> this tests for antigens and it has antibodies on a stick,

you swab them with the stick these are particles on the surfaces of the virus's coat and you put them in a little machine that's about $1,000 and installed base of about 40,000 machines in doctors' offices because they use them to test for flu and strep throat and it changes color. you can get a readable result in the doctor's office. takes about five minutes the test itself will cost about $5 the problem is it's only about 85% sensitive. that means if you have 100 patients with covid come into your office, you're only going to catch 85 with this test the other 15 you have to send off a pcr-based test as a physician you hopefully have enough suspicion when you get the negative result, you say, this is a false/negative. let me send a confirmatory test. but the good news is for 85% of the patients you've tested them in the doctor's office inexpensively without a reflex, without sending off a pcr-based

test this expands the ability to test in the doctor's office and another tool it's another layer of testing. the company itself has about 200,000 of these kits they can send right now within several weeks they'll be up to 1.5 million a week this is the first of just a number of these approvals. >> doctor, here's the question if the accuracy level is only 85%, does that mean any time you get a negative test the doctor is going to want to do a second? if not, what are we doing? can this test improve over time? >> there will be other antigen tests probably over 90%. that's why they should be done in the doctor's office if you come in with strep symptoms or flu-like symptoms and you use one of these rapid tests and you get a negative test, the doctor will probably treat you in the interim and send off a more accurate test like a pcr-based test.

for the vast ma eithjority of patients who come in with the symptoms and disease, they can test it. it's a good first-line tool. it's not what you want to use in the community where you get a negative result you don't do anything this isn't a test you would to use in places of employment or in the white house screening people meeting with the president. in those circumstances you want a test far more fullproof. >> speaking of that, doctor, i was shaken a little bit about vice president pence and some of his people and the secret service agents and i think the fda commissioner -- you're the former but the current one is quarantined, too it got awfully close to the leaders of this country, including president trump -- i don't know if he has comco-.

is it scary it's that close to the white house? i'll have navarro on later today and i'm going to ask him, too. should we be concerned >> this is very contagious setting up the screening process in the white house, they should use a very sensitive machine for screening people who are going to meet with the president they are using the avat result which can turn around results in 5 to 15 minutes. that machine itself isn't isn't 100% sensitive i think when you use a machine to screen asymptomatic people, where you get a negative result you assume with a high degree of certainty the patient doesn't have the virus in that situation where you screen people that don't have any symptoms, you say they're all clear, you want a machine that's very sensitive. the only point of care machine

or point of care device that gives a pretty rapid result that's very, very sensitive is sepi the abbott machine, the antigen-based tests and other machines that should be on the market soon that have a lower sensitivity, 80s, lower 90s, but not 100% >> scott, you've been pretty cautious yourself, with your family, trying to make sure you're doing everything you possibly can to keep them safe but you had said several weeks ago that if you were called to washington, you would go there because you think it's important. given all these cases popping up in and around the white house, would you still do that? would you still go to washington tomorrow if called >> i would but i'd take a lot of precautions if i had to travel but if i had to travel for congress or the white house, i would make the trip given, you know, what i've been doing to try to be helpful. i think there's a lot of things you can do to be careful in

terms of wearing face masks, hand coverings, cleaning your hands, watching how you travel not everyone has the opportunity to take the kinds of precautions i could take it's difficult right now to travel for people who don't have access to both the equipment as well as the modes of transportation that could be a little safer >> doctor, one of the other questions i wanted to ask you about is news over the weekend, and we talked about this a week ago when we were talking about covid and its relationship with children there was a report over the weekend that three children passed away from what they're calling a mysterious coronavirus illness. we talked about it before. looks like kawasaki disease but do we know any more about it >> we don't. it's not that uncommon to see certain viruses lead to certain post-viral conditions or syndromes. these are tragic cases

there's been several dozen reported what we don't know is how many kids have actually had coronavirus infection either asymptomatic or mildly symptomatic and cleared the infection. then what we're seeing is some post-viral condition is it hundreds of thousands or millions of kids or dozens of kids and this is a concerning trend? there was a good study in "science" two weeks ago that said children are about a third susceptible to the infection as someone aged 14 to 65. the study found kids are probably getting infected but at a much lower rate because they're not susceptible for reasons we don't fully understand, but it suggests there are probably more kids infected than what we presume. the literature is mixed. there are studies on both sides of this debate people can cling to there's going to be a more definitive test of 6,000 people that the nah just started that will give us a definitive answer of what percentage of kids are

getting the coronavirus. but that will tell us how concerned we should be about these cases. of course, we're concerned about it but we should understand at what rate are these cases occurring. >> doctor, the question, of course, for parents who, as you might imagine are skittish by default as summer approaches and some may be going to camp. some camps are opening the importance of camp opening is important for the economy as far as allowing some parents to work what would you advice those parents right now? >> there was a point weeks ago, months ago when people in the media were cavalier about the risk to kids because there was this perception kids weren't getting coronavirus. we didn't see any deaths

we think kids are getting infected but we don't know what rate now this post-viral condition kids are getting and i think it ups the risk here. i think it needs to make us all more cautious about exposing kids to this infection if we can otherwise avoid it you won't be able to completely avoid it schools will be open inthe fal and will be continued spread, but in the interim it will rethink starting camps and putting kids in environments where you can have large outbreaks. until we can understand what this condition is and what the rate is -- it might be very small. we're probably looking at a situation where between 10 and 20 million people in the united states have probably had this infection at this point. we're only diagnosing at most one in ten infections. how many kids have had it? is it a couple million or thousands? we need to understand that question >> okay.

dr. scott got letlieb, a privile to talk to you. >> hold on a second. did we talk about this weird not putting people on ventilators because they don't seem to be having trouble even though they have low mrood blood oxygen. what's going on there? >> doctors are holding back putting people on ventilators. before you were seeing situations where people were acutely decompensating some were blood clots to the lungs we weren't recognizes because this disease seems to activate platelets that we don't understand but it does something with oxygen transfer so the red blood cells don't transfer oxygen as efficiently. so you're getting a low reading on what we call a pulse ox, oxygen saturation in the blood when people aren't oxygen starved. you can't just look at that metric that's why you see doctors experimenting with ways to change the transfer of oxygen in the blood thinking what's

happening is people aren't getting enough oxygen but the oxygen isn't being transferred efficiently. we don't fully understand that these are theories being thrown around in the medical literature. >> yeah, i just -- i was thinking how strange that was that you'd have such low blood oxygen and not having any trouble breathing. and then the nitrous oxide, that's some of these other things -- they work on that and i wonder -- it's bizarre the things we talk about anyway, thank you, doctor. i'll say good-bye. thanks, doc. we have a quick programming note as well to mention. cnbc is gathering health care leaders at the center of the fight against covid-19 for an interactive virtual event. it takes place tomorrow. you can learn more and request an invitation at cnbcevents.com/healthyreturns. there could maybe never be a more important healthy returns than this year becky, over to you

>> thank you. when we come back, we will tell you why elon musk is suing one california county and threatening to take tesla's manufacturing operations elsewhere. right now, though, as we head to a break, here are some of the images of the pandemic impact yesterday from across america. ♪ you should be mad they gave this guy a promotion. you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis.

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sales of tesla 3, the model 3, fell more than 6 h4% in apri from the prior month despite an 10% increase in electric car we reached out to tesla for comment. tesla's earning call on april 29th, elon musk said tesla was lowering the price of the model 3 in china over to andrew whoa, whoa wait a minute. hold -- whoa >> let's talk about -- >> you changed you changed the background are you in new york now? >> the magic of tv >> but you're not in new york. >> because i can match you now. >> people will think you're in

new york that's fake news. >> i can match you. >> but you're not here. >> it's a stylized background. you you think i'm sitting on top of a roof somewhere? come on. nobody believes that. >> fake news you're not here. >> let me tell you what took place over the weekend because it became a massive debate elon musk said the company was preparing to file a lawsuit against alameda county over pandemic restrictions. he said, frankly, this is the final straw. tesla will now move its hq and future programs to texas/nevada immediately if we even retain the fremont manufacturing facility at all it will be dependent on how tesla is treated in the future. tesla is the last car manufacturer left in ca, california later on saturday tesla followed through filing a lawsuit against the county over contributions with state policy. this is going to be a huge debate for places like

california not just about elon musk, by the way, to me, and this tesla issue, but there's larger debates springing up all over the country which it comes to how businesses and states and municipalities are dealing with these things we're watching it with costco. they put a nationwide plan forcing everybody to wear masks, even in municipalities where masks aren't required so they are butting up against these state and municipal issues what a state wants and corporation wants during the pandemic is becoming quite complicated. >> yeah. this isn't the end of this story, andrew. are you going to stick with that i'm just wondering how many choices do you have i'm going to get one of those. >> i have lots of choices. we were just discussing -- >> who's we? >> we think this is the closest to squawk colors at the moment. >> who's we? >> i think marco is there. i saw him earlier. >> people in the control room. >> control room? >> oh, i saw somebody there.

>> you have somebody there you're important you are the first one with that. that's awesome what other choices do you have do you have -- >> i can always go back to the red bookshelves but i always thought they were ugly. >> why didn't you like the other one? the coloring wasn't good for you or what was in the thinking for changing i'm wondering. >> we thought it was a little more squawky the view back home - >> you have too big to fail or -- >> morning colors. >> can you just put "billions" behind you if you promoed that. >> i can put joe kernen. i can write words in the back, too. you may not want me to. >> maybe not. coming up -- i like that but i'm not -- people might misinterpret because with you're in connecticut. stocks on the move that's coming up next. futures down 98 points. the nasdaq 100 is on the longest winning streak of the year now just 5% away from its all-time high. these days, it's anything but business as usual.

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we are watching the bond market closely prices this morning after last week's flirtation with negative yields in the u.s. joining us is mark grant, strategist at b. riley we're watching all the markets, mark let's start with the bond market and then we'll get over to equities i remember last time we had a great -- we had some great interplay. it was interesting because you were saying we're probably headed lower but don't sell.

that's what i finally got out of you. once again you were right because you didn't tell anyone to sell and we've bounced 30% or something. maybe we'll still go lower i saw on market watch it said we're goes to go to severe new lows it was this guy doug ramsey that is like the opposite of paulsen. we had him on. he's wrong for like three years. they put this in the headline. we're going -- i go, it's doug ramsey anyway, what are you thinking today? >> well, one, joe, i want to make you an offer to start with. if you feel the need -- i'm a bachelor, if you feel the need to clean ovens, call me up, come down to ft. lauderdale, i have two of them. >> i have seen it done i did not do it. this is what you do, baking powder and you rub it all over the oven and then you get a spray bottle with vinegar after 12 hours and you do it and

everything dissolves i felt really guilty i didn't do it >> you can do it however you want bond markets let me taulg talk about the bond markets. the fed is in in ways we've never seen them in in terms of quantitative easing. balance sheets going to all-time highs. they'll be buying shortly through blackrock corporate bonds and high-yield bonds we're seeing a big push. the bond markets are going to be low in terms of yield for the foreseeable future there's some very interesting opportunities, i think, because i like to tell your viewers what i think is interesting in both the energy bonds and in some of the real estate bonds where you can get very close to double digit yields i'm looking at those with a number of institutional clients. the other thing is the government with all this borrowing can't afford to pay high interest rates, so i'm telling you right now, and for all your bondholders out there,

interest rates are going to be very low for a long period of time and if you can find some interesting niches to play, i think you'll do very well with a little patience. >> it's a mixed blessing, isn't it, mark we have a lot of debt. it would be nice -- we don't want rates to go up immediately, but what it indicates is not great about global growth and growth here. what do we want? we want them to stay low, make stocks more attractive, maybe props up that a little bit so what do we really want? do we know what we really want with rates and bonds >> well, i think what people want is some yield one of the issuing here, well, it's very positive for the government, the fed, i think, is doing a very good job in implementing what they have to do in our very difficult situation. i really do. i compliment them. and it's very bad for fixed income investors, insurance

companies, pension funds, retirees, seniors. and you've got to be very nimble to try to find some spaces as i've said to you before, and you and i have had good interchange, my favorite space is the closed-in funds where you can get double-digit yields and you can get a monthly check. i don't know any other space out there, any other sector where you can achieve that except for closed-end funds because they're not tauted like mutual or etf funds but they're off to the side but if you know about them and do your homework, i think they're very attractive. >> do you think dare we're on bonds. let's focus quickly on equities. do you think there's a huge disconnect between the underlying economy and where stock prices are that is going to be -- it's not going to end well for people that are long here >> joe, we discussed that last

time that's not my feeling. i didn't feel like the equity market was going to go down. you said, what if it does? i said 5% to 10% - >> you're blaming me for putting words in your mouth. >> i'm not blaming you. >> no, no, no. you did say, don't sell. i'll give you that. >> thank you. >> i'll go get the tape. don't tempt me that's a scary thing if we have tapes of all this stuff. some guests we don't even see them because they're worried we might bring up the tape. probably most of them. thanks, mark you've been right. we have -- we have idolized you and said such great things about you so many times about being right on so many things. you don't have to, you know, squirm when maybe you said sell when we shouldn't have anyway, you didn't thank you. >> thank you thank you. >> all right love those glasses andrew >> coming up, when we return,

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welcome back, everybody. some familiar retail names have filed for bankruptcy as the coronavirus pandemic decimated the industry so far we've seen j. crew and nieman marcus file for chapter 11 protection. many other consumer names are on the brink including jcpenney and stage stores, both who could reportedly file soon hertz recently receiving a debt restructuring. joining us is mo meji.

mo, thank you for being with us today. it's good to see you. >> good morning, becky thank you for having me. >> the big question about these restructurings, these bankruptcies, how much is going to be a restructuring where the company comes out the other side and how many are going to be in situations where the stores close and they don't come back >> indeed, that is the single most important question. i think there's two categories of companies stage stores actually filed last night in houston houston is now becoming bankruptcy central for the united states, both from an energy and retail perspective. nieman marcus filed there as well i think you're going to see post covid-19, you'll see a significant reduction in the retail bricks and mortar footprint in the united states but out of nieman and j. crew,

both of those companies have gone into these filings with what we call pre-arranged plans and financing to allow them to exit from bankruptcy having looked at stage stores briefly this morning, it does look like they're looking to look for a buyer or they're going to try to liquidate. >> yeah. this was something that was happening already. retail was under siege even before the coronavirus came along because of how consumers are really changing the way they shop the big threat they face from online what do you think happens to the malls from here? >> it's -- it's -- there is no doubt in my mind that the next shoe to drop, and this will be a few months out, is the malls and reits that own the malls are going to have a lot to content

with in this process in my view, it's difficult for there not to be a significant shrink in the retail footprint i see 25 to 35% of the bricks and mortar stores in the united states, all of whom, as you point out, secularly have been beaten up by ecommerce but the covid-19 pandemic has really accelerated this process and i see that having a large impact on the reits going forward as well >> if there are 1,000 malls in america, how many of them do you think will still be standing two years from now >> look, i wouldn't be surprised if as many as 1/3 of them, that's a gross generalization, are not around the question is what do you do with that, you know, real

estate how do you redevelop it? is there sufficient demand in it post covid-19 economy to redevelop that but over a long period of time there's going to have to be a reduction in the retail foot prij print in the u.s. which, by the way, has been multiples of most western countries. >> you know, you're not an analyst, somebody telling us what to do with our money, but that is not an endorsement of the reits. would you put your own money in a reit at this point >> i would be very careful there are certainly some, you know, economic downturns i would certainly not say that every reit is not going to be around i think economic downturns bring cyclically great opportunities and i think for the top most reits, again, i don't -- i'm not an investment analyst, but i certainly would look at buying

some reits, maybe not immediately, but sometime in the next three to six months once one can understand what's going to survive and what's going to have to financially restructure. >> mo, thank you for your time good to see you today. >> thank you hey, beck, i knew it when i said it. baking soda. baking soda. baking soda. baking powder is what i use -- >> baking soda, right. >> baking soda to clean. >> can be put -- >> and vinegar white vinegar. >> i do make pretty good chicken wings, you put it on there with salt and pepper, it gets -- >> cookies. >> you do it in cookies. so baking soda is one -- >> baking soda and white vinegar is a great clean. >> don't try this at home with baking powder. make it worse. coming up, we'll talk about this morning's market moves with mohamed el erian and later

autonation's mike jackson will join us on car sales during the pandemic mike jackson iths e ceo of autonation "squawk box" will be right back. every financial plan needs a cfp® professional --

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the u.s. looking to get back to work while still combatting the coronavirus outbreak after friday's historic jobs report, some economists are questioning whether the worst is behind us. we'll speak to market watcher mohamed el erian

plus, autonation's ceo mike jackson. the reopening of america and the pent up demand for new cars. speaking of pent up demand how about demand for some fun? shanghai disney is open for business and people showed up. we'll get a live report and talk about the future of media and the giant as the second hour of "squawk box" begins right now. good morning and welcome back to "squawk box" here on cnbc i'm joe kernen along with becky quick and andrew ross sorkin u.s. equity futures have been down more than this earlier. been down 100and change. now down less than that. down 90. overnight they had been up 100 but oil got a little bit weak and -- or weaker and now we're seeing some red after a pretty solid day on friday, andrew. okay thanks, joe. the april jobs report was both

historic and dramatic. more than 20 million jobs were lost last month as a result of this economic shutdown and coronavirus pandemic now there's a debate over whether the worst is over. steve liesman joins us with more good morning to you, steve. >> good morning, andrew. yeah, that historic jobs report where 20.5 million americans lost their job sparking good debate between really forecasters and economists and markets over the outlook a lot of the optimists pointed to the 18 million reported to being on temporary layoff with the idea that these folks could come back to work very quickly but jpmorgan writing over the weekend, almost all the increase in unemployment was due to an increase in the ranks of those, quote, on temporary layoff though bls so classified anyone that could not work. thus it is unclear if these people will actually have jobs to return to when the economy reopens. another source of optimism came

from the states that are reopening and the idea that some of these stores may reopen and those on temporary layoff could be called back pretty quickly to would i oxford economics wrote, how long the markets are willing to downplay the disastrous economics is anyone's guess. we suspect that fear factor will prevail after lockdown restrictions are lifted and restrain household spending propensities there will be other economic data this week for markets to debate with economists here. tuesday we're going to get inflation with a question as to whether or not some of the price spikes you've seen created overall inflation or is it the decline in demand that's dragged it down. wholesale prices on wednesday along with presentation by fed chair jay powell, jobless claims again on thursday down 2.6 million or up 2.6 million is the expectation. the big one friday, retail sales, you see all of this has impacted consumer spending

markets and economists watching the behavior around the reopenings they want to know, are people not going to stores now or to work because of government mandates or because they fear the virus overall, becky a sense among forecasters that markets are at least somewhat unhinged from the uncertainty around the outlook here. becky? >> steve, i think that's such a tricky question because it depends on where you are if you are in an area that's been particularly hard hit where there are lots of cases popping up around, i think people tend to be more cautious, more careful and more concerned about things versus if you're somewhere where you don't know anyone who's had a case, has come down with coronavirus, you don't see many things around you, it's a big country in a lot of different places. >> i think that's right. i think that it's going to be hard to gauge the impact or the response to some of these reopenings i'm watching the high frequency data, the traffic data, some of the historic closing data.

i've not seen much response yet, but it could take, you know, a few days, a few weeks for people to unlearn the behavior of self-isolating and we'll see how that goes. you have questions among businesses, for example, where places like where texas could open 25% as to whether or not it even pays for the restaurants or some of these establishments that you're reopening if they can only serve a certain number of people it's piece by piece and we're trying to build up the outlook from all of those different experiences. >> hey, steve, you know though, many of these polls obviously show that there's a population out there that says at least, at least to the pollsters, that they don't want to necessarily go out and go shopping, that they want to stay socially distanced, and yet at least anecdotally, it's only anecdotes, you look online, t.j. max in arkansas packed, some people wearing masks, some not

even my own experience this weekend up in connecticut, people were out and about. the store shelves were basically empty. at a target it was sort of remarkable to see what was going on you look at even some of the data coming off of some of these phones showing places like nashville where it looks like they're moving around nashville as much as sweden and yet there's a lockdown taking place in nashville so i wonder what data we should really be focused on >> reporter: i'm wondering the same, andrew i'll tell you, the data that we're following, we're following all the data the economists are following and our own data we dug up here. we don't know how well it will react and show the change in mobility there's the google data and the apple data that you're talking about. there's yelp data, tom tom data and it may be that all of this lags becky's comment is critical here that there will be different experiences in different places. i will say i saw a poll over the

weekend that said only 27% of those asked were comfortable going back to restaurants. it may be that there's a whole series of different responses of people i'm going to target because i need dog food but i'm not necessarily going out to dinner because i can make food at home. >> you can get dog food, steve, delivered. we have it coming -- >> you know, we figured that out. >> yeah, we have -- >> reporter: we did figure that out. >> deliver it in bulk. believe. >> reporter: yeah. >> do you have plans for -- is the plaz coming, plasma coming have you demanded that >> i was asked about whether or not they didn't want to have this, you know, mess behind me which, by the way, folks, some of it is planned, but reflective of the mess that is the general organization of my life. >> are you getting your own cameraman, for example do you get -- are you getting that as well what are you demanding

>> reporter: we already have a large staff here, joe. we have cameras, sound, lighting we have three or four people they're all named steve but we have a large drew of people who are making this possible. >> all right, liesman. becky -- thank you, steve. el erian's i think on now. that's exciting. >> he is he is. in fact, joining us right now for more, allianz chief economic advisor, mohamed el erian. what do you think of what steve was laying out whether or not there is going to be demand that steps back in when things open back up and whether or not some of these closures become more permanent or whether companies can handle a lesser demand load and still become profitable? what are your thoughts >> i think steve is absolutely right. there's so much we don't know, becky, and we've got to look at all the indicators we can get our hands on the economy was a very nice

photo. we're trying to figure out are all the pieces still here. it will take time to figure it out. key things to look at, of course, is the reopenings from a health perspective consumer behavior and business behavior we're going to get a lot more information on that in the next few weeks. >> mohamed, we are talking about how it's going to be different in different places. my guess would be in cities, particularly in cities that have had higher caseloads, you probably have more hesitancy on behalf of consumers because maybe they know someone who got sick or who died that changes consumer perspective pretty drastically. >> totally i mean, the amount of difference is enormous. the problem is that we are a very interconnected country and a very interconnected global economy. different parts are going to go at different speeds. even within families

i know within families people who are willing to engage and others who don't want to go out, but they live in the same household, which raises really interesting dinner conversations. becky, i think the key issue is that we are reopening. we are reopening in a bumpy manner and we've just got to keep focused, but markets are completely divorced from this reality because markets have stumbled into win-win. you win if the reopening goes well and you still win if it doesn't go well because the federal reserve is in there in a big way. and i think that's why markets are in one universe and the real economy is in another. the real economy is going to get a lot worse. we have two officials telling us the unemployment rate is going to go north of 20%, and it is, unfortunately. >> is that the correct perspective, the market's idea that it's a win-win. it doesn't matter if the economy doesn't open up so much because the fed will be there, the treasury will be there >> it is if you are in the upper

parts of the capital structure if you are in treasuries, you can bet -- you can sell volatility because the fed is there and is going to anchor that market. in investment grade, you can earn the extra yield because the fed is there buying investment grade. high yield, a little bit more iffy, but you when go into equities, you're betting on an indirect fed effect that you're going to have a spilldown, water fall effects, if you like, all the way down so depending where you are, that's why most investment professionals are comfortable in the upper end, that's the strategic exposure when they come to equities, strategic is limited to a few companies and the tactical exposure is what goes to the indices. >> hey, mohamed, let's do a little bit of a history lesson and look back at what happened after the great depression when prices collapsed but then the market came back for quite a while. i think until around 1937 until the government backed off a

little bit and that's when things got dangerous. the fed is saying now that it will do anything and everything, and there are no limitations, but are there limits >> so there's no limitationson the fed's point of view if they have the treasury on board the fed has the balance sheet and if it has the willingness, it can go. and the difference between the fed and the government is that the fed can go straight to the markets, whereas, the government's ability to get to the end user is much more complicated. the issues for the fed is the collateral damage. they've become more andmore of a quasi fiscal agency which exposes them to political risk they have reputational risk if they buy things that go bankrupt we've heard bankruptcies are going to go up the fed has to balance what it can do with what it should do. i think that's where the judgment calls come in a lot of us were surprised, not that it went into buy fallen

angel, that makes sense, but instead it's willing to buy the index. that is an aggressive move that gives them confidence that the fed backstop is solid. >> the fed backstop is solid as long as you said the treasury backs it up. we have a treasury secretary who is definitely backing up the fed at this point, but we also have an election in november. do you think that would change if the democrats win that election and a new treasury secretary is appointed >> so, becky, we are two months into this crisis and already we're hearing main street versus wall street because a decoupling has been so big. company versus people. why are we saving companies when they're not keeping people we had record unemployment coming up. rich versus poor if you look the unemployment report, it's the young and poor that got hit hardest it's only been two months into

the crisis yes, it has an important political angle. i think up to the summer, well into the summer we will get a third package and i think you'll see both the treasury and the fed doing whatever it takes. the question mark is how far is the market front running that. remember, they haven't bought a single bond yet in high yield space, investment yield space, but the market has priced it all in. >> right a lot to think about mohamed, it's good to see you this morning thank you for joining us >> thank you, becky. all right. coming up here, monday morning corporate headlines, including elon musk suing a california county and threatening to move operations out of the state. phil lebeau will join us with the details. before we head to break, let's get a check on the markets "squawk box" is coming right back with the dow down triple digits.

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welcome back to "squawk box" this morning here is what's making headlines at this hour under armour out with quarterly results. losing an adjusted 34 cents per share. compares for a consensus estimate with a 19 cents per share loss revenue falling below wall street forecast. a note that under armour had already withdrawn its 2020 outlook in early april due to the virus related uncertainty. that stock you're looking at the premarket down about we'll call it 2% for now.

personal care markets maker coty is planning to spin out its hair care products business which includes the wella and clairol brands it will hold a 60% stake in that new company. this will result in a cash infusion of coty of $3.75 billion. we're focused on lodging and travel mixed quarter for marriott this is last quarter the hotel operator missing on the bottom line but posted a better than expected revenue number marriott said business has been improving in china and stabilizing in the rest of the world although at of course very low levels that stock down 2.5% in the premarket. mr. kernen. >> thank you, andrew yeah who knows about these poor hotels we'll see. can a consumer dna test save

your life? that's one of the questions explored in cnn's original doc, dna testing, the promise and the peril airing tonight correspondent scott wapner talked to the researcher who discovered two genes linked to breast and ovarian cancer. he learned that one popular home test only looks for three. >> actress and filmmaker angelina jolie made headlines in 2013 when she revealed she had undergone preventive surgery after learning she had a broca mutation jolie has a family history but doesn't carry the mutations 23andme looks for. >> had angelina jolie just used a 23andme test, what would have happened >> if she had used only a 23andme test, she would have been told she did not have a mutation based on their test >> so --

>> the mutation would have been missed >> for comprehensive look at the tee bait over consumer genetic testing, tune in tonight at 10 eastern and pacific for dna testing, the promise and the peril. becky? >> all right, joe. thanks. when we come back, elon musk threatening to move tesla's headquarters out of california that story is next then the magic of social distancin distancing shanghai disney reopens with coronavirus precautions. we have a veli report and that's coming up soon we'll be right back.

elon musk is escalating his fight with california.

phil lebeau joins us now he has more on the story good morning. >> reporter: were you watching elon's tweets on saturday. it was a full on twitter rant and when i say rant, he was going at it for a while. in fact, he engaged with one of the assembly women in california we'll talk about that in a little bit again, he is threatening to move tesla's headquarters out of california currently, the head kwaufquartee in palo alto he's trying to force alameda county because they're saying they're not ready to go. tesla knows more than an unelected interim junior official this is the main plant the china plant is still coming up most of the production, anything from north america, europe is

coming out of this plant been closed since march 26th alameda county said we're working with tesla tesla says working together is not enough until we can get this together they put out a white paper saying here are the steps, safety protocols we're putting in place in order to make this work when you look at their annual deliveries, they have not changed their annual delivery estimate at this point let's be clear, increasingly nobody expects them to make that given the fact that they've had no production since march 26th they could announce a new u.s. plant. a new gig factory. that lends into the other tweets where we saw, you know what, we're going to pull our headquarters out of california we may not want to be manufacturing in fremont unless california can work with us. right now, guys, it may be settled in court

>> the plan that tesla plans to implement, when you think about that plan, is it different than what you're seeing from general motors or other manufacturers given what they're talking about in terms of elon musk's experience in china? >> reporter: it's pretty similar. you know, the safety protocols in terms of distancing while on the plant floor, the plexiglass in different areas in order to limit the interaction between employees. i mean, most of these when you look at them, whether it's the big three, the asian automakers, what we're seeing from tesla, most of these manufacturing adjustments that are being made in this world of covid-19, they're fairly similar what is interesting here is why the health department has said, no, we're just not there yet we're working with tesla, but we're just not there yet in the world of manufacturing, guys, a day is a big deal. you know, if you say to these guys, we'll get around to it we'll let you open up at some point, now we're going three,

four, five days past when they thought they would reopen. >> two other questions any other manufacturing companies or facilities in the area that are being allowed to open and tesla isn't and is alameda a hot spot or does it have a higher incident rate >> i don't know if they have a higher incident rate, but clearly that whole northern part of california has been much more cautious about reopening than other parts of the state the governor said, you know, we're going to reopen, but we're going to be very judicious and cautious about it. i don't know about other manufacturing in the area. there's not a ton of manufacturing when you get that close to california. tesla's plant in fremont is the largest by far. >> right okay phil lebeau, nice to see you, my friend. we have a lot more we'll be talking your favorite subject, phil, when you return the ceo of autonation will be

joining us to talk about the reopening of america and the company's response to the pandemic mike jackson after the break plus, take a look at futures now. we are in the red, 120 points off it looks like we would be. s&p 500 would open 15 points nasdaq looking to open down 23 points "squawk" returns right after this

welcome back to "squawk box," everybody. things are in the red. dow futures down by 111. s&p down by 13 and then the nasdaq which was earlier at 6 a.m. is now indicated down by 21 points joe? >> thanks, beck. major milestone kicking off

to the in the auto industry. car makers including ford, general motors, toyota, subaru are resuming u.s. operations auto sales down 47% in one month. let's bring in autonation's ceo mike jackson good to see you. we're going to talk about the results that we're seeing from your firm. welcome. great to have you back as ceo. we understand sherm millcheryl miller has some health issues. welcome to you this is quite a time to be back at ceo how's business today versus even in the last six weeks, mike? >> well, joe, thank you forex tending your best wishes to cheryl with all of us. it's been a remarkable experience we are all in a very different place than where we thought we would be two months ago. we like others had an

exceptional january and february business was really good and then shelter in place arrived. you can see the extent of the strength in that adjusted earnings per share were 91 cents for the first quarter compared to 95 cents last year. only down 4% with shelter in place hitting us in the middle of march i have to say, shelter in place was not in our -- any of our business plans i even have a hard time imagining it for america i don't think it's ever happened in the history of the country, but by the beginning of april 95% of our markets were shelter in place and we had the most rapid decline in business far exceeding the great recession or anything elsewhere the business collapsed literally in a matter of days. we were down 50% on vehicle sales, 30, 40% on customer care and not knowing is it going down to 80, 90% down or just what

so we had to take action to protect the company to ensure that we would be on the other side of the crisis come what may, and we took steps to reduce the size of the company. we had to furlough 7,000 employees. almost 30% of our work force we took pay cuts everywhere. all the classic things you do on the cost side and all the things you do on the capital side all capital spending was suspended to maintain the business now what was good is dealerships and autonation was deemed an essential business by every government across the country, and if you think about it, it is indeed essential in that nurses, doctors, firemen, policemen, when they have difficulty with their cars, they are truly

essential saving america, they need to be cared for i want to thank for all of the employees of autonation being there working under these conditions to care for these vehicles i think it was a great moment for every dealership in america, proved to be a pillar of their communities. now very interesting was this drum beat from customers coming in about safety in two aspects for them to come in or interact with the company, even if we came to their home, they wanted to be sure they were going to be safe and entirely new protocols had to be put in place around safety this included everything from providing every employee with a mask and wear it, new one, fresh one every day, to if you hand a pen to the customer it's in a sealed case, sealed envelope, never been used before, doesn't need to be used again. but the biggest insight, joe, is the drum beat that customers

want personal space in mobility. we hear this day in, day out this drum beat is increasing we've moved from being 50% down, and rather than it getting worse, the last ten days of april into may were only 25% down i never thought i would ever celebrate being only 25% down, but it could have gone the other way. i'm comfortable here and declaring the automotive recovery is underway it's supported by pent up demand, this need for personal space, available financing at very affordable prices and it's entirely appropriate that the factories reopen i fully support it we need the vehicles as a matter of fact, andrew, i would go so far as to say i support elon musk. tesla should open. >> it's joe, mike. anyway, that is unbelievable

so for the first ten days of april down 52% in sales and then for the last ten days down just 19, i mean, your stock -- we have seen the stock market, mike, we've seen it come back substantially, but you were down in the low 20s autonation in margot down to the low 20s, i think around $20 interday it's doubled back to where it is so you can almost see what you were just illustrating, that you're already seeing a rebound in just the whole sentiment around cars. and i know exactly what you're saying because when i'm in a car, we've driven, we've had to go and pick someone up that was out of town. when you're in a little steel tube and it's almost like you're driving -- there's no covid out there, but we're all so aware what's around us that when you are in a car you are in a totally safe space i can see that i'm not sure what it says about mass transit, flying, subways, everything else, but certainly being in a private car, i think

we're going to drive down somewhere on vacation now, mike, if we ever get to take one. >> joe, you're not -- this is an exact quote from customers what you just said, joe they're already planning their next vacation, and it's in a radius that they can drive in in a couple days. they want a vehicle that they will be comfortable making a trip like that with their family who they trust, but they collectively want that family to be safe. i don't know what it says about air travel, subways, buses, but we have a drum beat around safety i think the challenge for every business in america is to figure out how you're going to create a safe environment for your customers. that's now the entry back into the gate is around safety. you have to figure it out through your business. we've done it for ours and we do have this drum beat around safety and personal space and

personal transportation that i would say the recovery is clearly underway >> hey, mike, when it comes to safety, one of the questions, and i've heard this question, actually it was asked to me over the weekend, when people go to service their car, for example, at an autonation or anywhere, they want to know whether the service person has been tested they may sit in the passenger's side seat to test it if it's working. what are you doing along those lines? >> so all employees arerequire to wear masks. no employee's allowed -- permitted to come to work who doesn't feel well. and we have the ability to provide a clorox service and it takes 20 minutes that will kill

all corona in every car. we do that for every car we deliver. our protocol list is long, safe and expensive. i think it absolutely has to be done i think it's the cost of doing business and every company has to figure it out for itself. i would also say, andrew, that digital capability, that the customer can do as much as possible digitally they really like that from preregistering the car, picking it up or delivering the vehicle to their home. we've moved from doing 30% of our sales transactions originated digitally up to 45% in a matter of days and i don't think there's any turning back companies need digital capability and companies need to provide a safe environment >> hey, mike, it's becky it's good to see you again i know that there had been some concern kicked up or controversy kicked up about some of the

dealerships, the autonation dealerships that had applied for money under the ppp. can you give us an update on where that stands, if they did apply because they're separate and apart from the company walk us through that >> first, becky, i give the government very high marks on the economic front in trying to deal with this incredible economic catastrophe i think the work the treasury and federal government have done between steve mnuchin and jay powell have done is remarkable they both may ultimately be nominated for saint hood for the work they did in an incredibly short period of time i also think the ppp program, to focus on that specifically, was inspired almost, i hate to say this, joe, european in concept where we had this avalanche of unemployment imagine there's fewer jobs in america today than there was at

the bottom of the great recession. it's almost incomprehensible so they had many innovative, creative programs to try to deal with unemployment. that was the origination of ppp where it was basically a grant that said if you'll keep your payroll the same as it was a year ago, we will give you this grant and it will be forgiven. that's how the program started i furloughed employees people were making far less than they were years before we were in effect a pass through to try to protect paychecks. well as can happen with government, they changed their mind mnuchin and treasury said, look, you're above a certain size. even if you dot all your is and.all your ts, we're not going to forgive it. that's a game changer. you could see many companies

rethinking ppp because no one's in a position to be a pass through for the government the unemployment lines were as far as people could see. i applaud the initial program. once they turned it back into a small business loan program and there's no clear path to forgiveness, we went withdrew all our applications and returned the money we had received thus far. >> we've got to run. good luck. i know you're mostly in ft. lauderdale most of the time. >> joe, one last -- if you could bear with me. >> sure, go ahead. >> one last moment the call on america was to shelter in place to bend the curve to save the health care system from being overwhelmed. that goal has by and large been achieved it wasn't to shelter in place until there's not one more case of corona. don't let the health care system be overwhelmed, so now that it has not, and we paid a big price

for that ask of america, it's time to gradually, safely reopen and rebuild america. >> we're hearing that point of view from a lot of different places, mike we appreciate it coming from you today. >> great seeing everyone this morning. >> good seeing you >> andrew. a lot more on "squawk box" ahead, including maybe a debate about that as well but a live report from disney's shanghai is ahead. at the top of the hour, white house trade advisor peter navarro is going to join us to discuss u.s./china discussions and the pandemic "squawk box" returns right after this derek, seems like your team is operating just fine remotely.

yeah, everything is running smoothly with the now platform. (bling) see, incident resolved. how did you... gotta enjoy the small wins. you keep being you, derek.

keep being you.

welcome back, everybody. under armour shares are down after the company is out with its quarterly results. under armour losing an adjusted 34 cents a share that was double what the street had been anticipating. i think the street was looking for a loss of 19 cents revenue also below what wall street was forecasting the company had withdrawn its 2020 outlook in early april because of the virus related uncertainty. the company was tracking well to plan through early march then they experienced a decline. they have 80% of the global locations where under armour is being sold are currently closed since mid march. the company is preparing, they say, to open a handful of stores in north america it is a bumpy return for normalization as they hope consumers return to stores they have a significant increase in digital sales the stock is down by 4%. >> yes we're at some of the lows of the

session that we're seeing, beck. i'm seeing some of the headlines. the headlines i told you earlier. stock market called higher adding to friday's gains on reopening the economy. now stock market on jitters of reopening the economy. we have a firm grasp on what's happening. people that twliets stories. coming up, disney looks romantic in shanghai eunice yoon joins us hey, eunice. >> reporter: shanghai disneyland wrapped up its opening day with fanfare and new safety precautions. "squawk box" will be right back. this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology

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social distancing is a must at disney. eunice yoon joins us hey, eunice. >> reporter: shanghai disneyland just closed out the day, not with the usual fireworks display but instead some temporary projections on the castle meant to keep crowds from forming. another sign life is getting back to normal in shanghai, selfies in front of the disneyland castle. after being shut for 15 weeks, shanghai disneyland today became the only disney theme park open for business it's definitely not business as usual. the park still under post pandemic restrictions to keep people healthy the man in charge to do that here is head of operations andrew bolstein. >> we have the space around

everyone. >> reporter: every line has markers instructing people to keep three feet away from persons, even on rides >> as our guests are loading in, we put an empty seat between each group and an empty row between each of the rows. >> reporter: at the park visitors get constant reminders to keep a safe distance. at the restaurant, entire tables are being blocked off. >> all the restaurants, the styles are different we're not doing buffet we have a buffet concept but we will serve the food for you. >> reporter: hand sanitizer is available. mobile payments are encouraged theaters will stay shuts, parades limited. no fireworks to discourage crowds but you can still see your favorite characters, just don't get that close mickey and the gang are social distancing just like everybody else no shaking hands or hugging. that has to wait for safer times. andrew, a lot of people are

talking about how they've really enjoyed the day at the park today, mainly because there are so few people. in fact, some of them said they only had to wait five minutes to get on a ride. >> thank you so much for that report there's so many questions i have for you, but we've got to continue this conversation and we'll do that. we hope to see you tomorrow. i want to bring in lexie q quadrani and mike santoli. lexie, my question to you is you look at the experience in shanghai, what does that say to you about what you think is coming here to the united sta s states >> oh, i think it's a great blueprint for what's going to happen here in the u.s we've put in our notes that we expect an opening potentially july 1st for the domestic parks. if you look at what happened in shanghai, they opened up the stores and the restaurants kind of in march and now you're seeing the official park open up in full and that's what we're seeing here in the u.s we've seen the early sign of it

in the sense that they've announced that disney springs in orlando, the stores and restaurants will be opening up later this month, and i think that's the first step to seeing kind of a recovery of a full opening here at disney world i think disneyland might take longer given the politics of the two different states i think it's a very positive sign for reopening in the u.s. >> then to the degree that you can make projections about wha traffic looks like at a place like disney world, how do you begin to estimate it is it 30%? is it 50%? is it 75%? who are you talking to to try to make those estimates >> we've seen a bunch of different data i think orange county, california, for example, in their group meeting to try to figure out how this can work, they put out their 50% capacity at opening and i know there's been a council also in florida that's been looking into it as well they have suggested that as well i think disney will do the right

thing and just like they're doing in shanghai, they'll look at what the government mandates and suggests and then they'll probably open a little bit less than that and then after that, you know, they'll kind of build up slowly assuming that it's working out well >> hey, mike, what does this say though about the larger picture for business for getting back to work it's so interesting because you do look at the polls and there are so many people, majority of the country saying that they think we're moving too fast in large part and yet then you look at a lot of anecdotal evidence whether what's happening in shanghai, frankly even going to shops right here in the united states over the weekend and it does feel like a lot of people are out and about. >> reporter: for sure. i think that, you know, from the market's perspective, the direction is towards more incremental reopening, even if it's slow. if you look back i think a month ago, it was kind of pretty much a very kind of a black hole in

terms of figuring that out now you have kind of progressive incremental reopening and the market has, i think, seized on those dynamics you've seen the worse in terms of lookdown. i don't think the market is trying to get ahead of exactly where the public is or the business is or that this is going to be back to normal at any time soon. even though the normal s&p 500 is down. if i look at the kinds of things that would represent a back to normal type economy, whether it is disney stock down by 1/3, airlines down by 70%, casual restaurants down by half all of that stuff is showing you it's going to be fits and starts, maybe we're going to have to dial it back once it opens up nobody is sure about what the consumer appetite is going to be for these things i think that it's a mixed picture, but increasingly investors are looking towards how it might work rather than how it might fail. i think very crucially, if

you're betting that we're going to reopen in certain phases and maybe it's going to be okay, you're not going to be proven wrong for a while. so kind of the bulk case is hard to disprove until you try it >> hey, lexie, quick question. if the park is operating at 1/3 of its capacity, what does that mean for profitability for disney i'd ask the same question of universal studios which is also closed right now >> i think it doesn't matter if it starts slow we asked this question on the earnings call, like what kind of capacity do you have to be at in order to resume profitability. and bob had a great answer it's not about levels of capacity, it's about beginning to cover the costs disney world and disneyland is losing a lot of money. we estimate close to $800 million per month being closed so if they can bring back the costs slowly, not bringing it to full capacity in terms of the cost basis because you're not going to have full capacity in terms of visitors and bring back

your costs slowly and bring visitors into the park even at a lower level, you're still going to start covering the costs. i think that's what's really important here just like you guys said, it's not about going back to normal right away, i think it's about baby steps and setting a path to normal and that's what gets the stock going. >> is disney world different than disney world shanghai the reason i ask that question is because disney world, i've always been under the assumption typically a majority of the people going to it are traveling. they're getting on airplanes, flying to orlando. shanghai may be very, very different. the question is do people get on airplanes? are the hotels, therefore, full? what does that look like are we looking at a very different picture this time? >> i think there's no question that disney -- there's no question that disney world has more people come, you know, from airplanes and from further distances although shanghai does too. shanghai disneyland is not local. they come from china and some from outside of china itself

yes, disney world has a higher concentration of folks that have to get on a plane. that doesn't mean it can't see very strong demand even if it opens at 25, 30, 35% we saw how shanghai disney sold out within hours, right, for the first few days i think you're going to see a lot of pent up demand and you will find people that will drive long distances to go to disney world. it will be a positive even if it opens up at capacity >> lexie, great to see you this morning. mike santoli, thank you. >> thank you. >> meantime, i am going to kick it over to becky andrew, thank you. when we come back, white house advisor peter navarro, mississippi governor tate reaves and mark cuban and paul tudor jones all coming up in a big hour of guests stay tuned, "squawk box" will be right back achievable steps along the way... ...so we can spend a bit now, knowing we're prepared for the future. surprise!

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good morning futures pointing lower ahead of the opening bell we're coming off a strong end of the week performance for stocks despite the worst jobs report this country's ever seen one corporate giant to watch closely today. that's disney. the entertainment giant reopening its theme parks in mainland china could be one of our first glimpses of how life begins to return to normal that's a theme we'll hit from all angles this hour with a very special lineup of guests white house trade advisor peter navarro. the governor of the state of mississippi. billionaire investor paul tudor jones and dallas mavericks owner mark cuban the final hour of "squawk box" begins right now

good morning, everybody. i'm becky quick along with joe kernen and andrew ross sorkin. the u.s. equity futures are under pressure the losses have been increasing. dow futures indicated down by almost 200 points. s&p futures down by 25 the nasdaq, which actually started this morning in positive territory, is indicated down by 60 points right now. a lot of that has been coming as we've seen oil prices come under pressure wti down 1% at 24.48 the treasury market, the yields have been increasing 10-year looks like it is yielding 0.692%. joe? >> thanks, becky tensions rising between the world's two largest economies, washington and beijing are sparring over the origin of the coronavirus outbreak and how it was handled. president trump has threatened tariffs and there's been renewed back and forth over the south china sea. joining us to talk about all of this, peter navarro, assistant

to the president and the director of the office of trade and manufacturing policy peter, we're all human, as you know, and we all have fears and anxieties. do you have any fear or anxiety about the -- what's happening with some of the staffers at the white house and some -- even members of the task force being self-isolated at this point? where are you? >> good morning. >> good morning. >> good morning, joe i was going to wear my chaise today in honor of andrew's new background no, what i'm focused on is what i've been doing throughout this crisis, making sure that the american people and our nurses and doctors have enough personal protective equipment and medicines at the front line. so that's what i'm focused on. >> okay. >> and, you know what, i'd love to talk about today, remember that famous day right after the election when you and i talked about what was going to happen

under the trump administration, the futures were way down. what i did at that time was predict dow 25,000 based on tax cuts, deregulation, the unleashing of our energy sector and most of all getting fair trade deals. today i have a similar kind of forecast as to what's going to be going forward in time, and what i see, joe, in the front lines and the supply chains is hope and optimism again based on four different constructs. sure, we're going to throw what is already close to 10 trillion dollars in fiscal and monetary stimulus in the economy and the job market that's going to be great for the stock market as you can see now. the structural pillars going forward are going to be buy american that is bringing our supply chains and production home, deregulation to make that possible and innovation to stay

ahead of the competition if you look at what we're doing here as this crisis unfolds, this last week the president signed an executive order on commercial fishing of all things it is going to create tens of thousands of jobs in that industry two weeks ago the president signed an executive order aimed at making our bulk power system, our electricity grid secure. and what that's going to involve is basically then buy american policies when we buy all the heavy equipment and transformers, it will be made in america. the biggest thing that's going to happen in the short run, joe, is bringing back our pharmaceutical supply chains we are moving full bore on this, and, again, it's going to be a buy american policy where the veterans administration, the department of defense, hhs are going to be buying american. we're going to deregulate so that we can actually locate pharmaceutical manufacturing

here it's very difficult to do that innovation i think one of the reasons why the nasdaq's outperforming the other indexes now is that the crisis we're facing you no with all of the structural problem is springing up is going to require tremendous innovation in order to overcome these problems and advanced manufacturing, things like continuous manufacturing, 3d printing applied to pharmaceuticals is really going to be our pathway so what we have, joe, right over there is a jobs president, a manufacturing president, an innovation president and an on shoring president. the only way we're going to get out of this over the next couple of years is to bring our supply chains and our manufacturing home >> so let me ask you this, peter. >> sure. >> we're not -- we're more of an island no man is an island. no country is an island. we need to keep trading with china. some of your recent comments -- let's not get into whether it's

from a p4 lab or whether it's from a wet market or whether it was intentional, but one thing we do know is that there was -- there was not the most transparency that you would have liked. you even made the case -- >> ambassador of the understatement there, joe. >> you even made the case that there was some stocking up by china on ppe and that they then used it to either sell at premium prices or to actually influence countries that needed it to bend those countries to china's will >> sure. >> that doesn't sound like the kind of country that we'd want to just go business as usual with. >> yeah. yeah >> with the trade agreement and with the next round of the trade agreement. >> yeah. >> now the president said some things on friday, if you're in his ear, are you telling him we need tariffs we need to punish these people we don't go forward with the first part of this trade deal? we don't continue to negotiate the second part? is that what you're telling him and do you think he should take

that tact? >> yesterday the pity party, which was called the sunday shows, i found it astonishing that there was absolutely no mention of china's role in creating this pandemic it was like the immaculate conception somehow this pandemic just descended on us, but i think it is worth saying this, joe. this president, donald j. trump, built up the most beautiful and strong economy in 3 1/2 years and it is simply a fact china spawn that virus, that is a fact china hid that virus for about two months, that is a fact, behind the shield of the world trade -- world health organization now here's the thing, joe. while they did that, flights out of wuhan couldn't go to beijing or shanghai but they sure as heck could go to milan and new york and hundreds of thousands of chinese super spreaders seeded the entire world with what would become a pandemic

and -- now this is also a fact because, joe, it's based on china's own customs data right out of their website they vacuumed everyone from a net exporter of ppe to net importer they bought over 2 billion masks, gloves, goggles, you name it, scooped it up over the world. what's my point here they inflicted tremendous damage on the world which is still ongoing. joe, we're up to, close, $10 trillion we've had to appropriate in order to fight this battle? so what's -- look, a bill has to come due for china it's not a question of punishing them, it's a question of holding china account, the chinese party account for what it did not just to the american people, the american workers, american children, american senior citizens but also to the rest of the world. >> how do we do that without

hurting ourselves, peter you are getting so good at this. when you go back -- >> good at what. >> -- and a student asks you a question you have a way of never answering. you have to answer the students' question. >> try answering this, joe you know what annoys me. i put on "squawk box" and the first person we put on is eunice at the damn disney world in shanghai i come from orange county, right? that's the motherland of disneyland and my american people can't go to disneyland in anaheim because the chinese communist party inflicted a pandemic. >> do business as usual with a trade deal should we keep the normal business as usual relationship with china with the trade deal or do we need to really get tough and cancel that, don't do any of the future deal >> yeah. if you could look down at my feet here, you'd see a lane

right over to my office and in that lane is not bob lighthizer, steve mnuchin who are handling the trade deal my job is to localize the supply chain president donald j. trump. >> bringing the supply chain home the wages are going up in manufacturing joe national security. it's where we are. it's stretched out all over the world perilously where we could have made it there it is. >> let me ask you a question >> shades on

>> andrew -- >> hey, peter -- >> you look marvelous, andrew. >> thank you, peter. we're all rooting for you to get all of the ppe and supplies you need and moving that back home the question i have and this may be the first time we've had a chance to talk since the report that you had written, frankly so smart sli and ahead of it in late january about the potential for a pandemic the question though that it raises to me is -- had we pushed to use the defense production act. >> we're working on this with hhs and fema so that we were attacking this

january 29th from that point, that was like the starting gun in all of this, we began from that point and the first of february, 2nd of february, we began to move on different vectors of attack. vaccine development. we were putting in place the five company horse race so that we could get a vaccine rapidly that was key therapeutics this was the remdesivir issue plus others like regeneron has and then also particularly on the n95 facemasks, we were putting in motion plans to actually bring that here if you look at, for example, the miracle of honeywell opening factories in smithfield, rhode island and the one the president visited last week in arizona, those factories were done in five weeks, andrew those usually take nine months so this whole idea of a lost

february is not supported by the facts in evidence. what the president and this administration were doing during that month is trying to sort out in the fog of war how serious this crisis would be without alarming the american people but beneath the surface of those waters we were swimming as fast as we could towards these three vectors and so when you see remdesivir ready to go now, that was the product of work in february when you see hope for a vaccine by the end of the year, that was started in february. and when you see these n95 masks and surgical masks going, that was all started early. i just reject this whole idea that we weren't doing anything because i was there. i was there. i was talking to the president i was working with hhs and i wasn't the only person doing that >> question from jim cramer who's been watching the interview too. he says should we declare taiwan

strategic because they make so much of our semiconductors >> jim's causing some trouble here yeah, well, i think what we need to do with semiconductors as well as pharma is bring them home here. president trump, right over there, is talking with intel and other companies to learn how to have fabs and foundries here right here in the united states. this is the big epiphany for the world. if we don't learn from this crisis the only way this great country is going to prosper is by making the stuff here as much as possible, then we will have learned nothing and we will sink into the abyss with this press we will not do that because he is the jobs president and the manufacturing president, the innovation president and the on shoring president. he's been that from the day he walked down with a beautiful first lady melania on that he is can he lator and declared for his candidacy. he's been nothing but consistent about that this crisis, it's proven him right. >> we want to thank you.

we know we have to run you know, time will tell on so much of this, peter. >> indeed, indeed. final war now. you guys are looking marvelous, by the way back on set, joe. >> thank you >> andrew, whatever. have at it. >> thank you we appreciate it thanks for saying that, too. andrew, we're looking marvelous, he says. >> appreciate it we're all trying we're all trying thanks, peter. thank you, joe. when we come back, we're going to talk market gains and last week's historic job losses with billionaire investor paul tudor jones, the founder of robin hood he has a big virtual gala tonight. we'll also talk about disney, look at shares of it the company shanghai disney resort reopening today with mandatory masks, temperature checks, social distancing and, yes, a sold out crowd capping at about 1/4 of full capacity don't miss a full interview

at w bob chapek, disney ceo. thill happen on "squawk alley. stay tuned "squawk box" continues after this usaa was made for right now. and right now, is a time for action. so, for a second time we're giving members a credit on their auto insurance. because it's the right thing to do. we're also giving payment relief options to eligible members so they can take care of things like groceries before they worry about their insurance or credit card bills. right now is the time to take care of what matters most. like we've done together, so many times before. discover all the ways we're helping members at usaa.com/coronavirus

welcome back to "squawk box" this morning take a look at oil prices turning positive after saudi arabia said it would further reduce output. the prices of the wti buying it by a barrel if you do it that way, $25.34. becky, over to you andrew, thanks interesting it's not really helping the futures yet. the dow is still indicated down by about 183 points. across america and across cnbc, we're taking a closer look at how states are fairing when they lift coronavirus

restrictions the data are very new but we've seen trends emerge with government officials trying to balance the state of economies and the health of everyday americans. since mississippi began reopening on april 27th, it's seen a 61% increase in cases one day last week they saw their highest number of deaths yet this is all happening as testing has increased in that state by 34%. of all those tested in mississippi, 12% have come back positive joining us now is tate reaves. he's the governor of mississippi. governor reaves, thank you very much for being with us this morning. >> thank you for having me on this morning >> i realize it's a difficult decision to have to make, but the cdc guidelines have suggested that states should wait until they have seen a decline in cases over the case of two weeks what led you to go ahead and say that the state needs to open up earlier than that?

>> the last 35 days we've had a relatively consistent number of pieces we've had a relatively consistent total number of cases. at the same time significantly increasing testing we have now tested almost 35,000 per 1 million population in our state. the other thing that leads us to make that decision is the fact that we have a public health disaster in our country going on there's no question about it at the same time we have an economic disaster in our state and across this country. in the last seven weeks we've seen 200 thousand mississippi ans. that's 16.4% of our population

they can put food on the table for their kids and grandkids. they conducted a survey to see if they are following guidelines >> we have state resources if and when they ask for it we're not going to get 100% of our people to follow our rules

people are experiencing doing social distancing. they are doing the right things. when we talk to our public health experts, they make it clear that outdoors is less risky than if you had hundreds of people in a very tight space indoors. what we find is the vast majority of mississippi businesses and the vast majority of mississippians are adhering to the standards we put in place. >> they can protect our people

from the virus and the people from the economic disaster at any time. >> it's a heavy decision to weigh people's health alongside of their economic health what would make you tighten restrictions is there a level that would be in your mind that would make it unacceptable to some of the cases coming out >> i'll tell you, every single death is unacceptable and every person that gets the virus is unacceptable to us we do have the largest number of cases on thursday that were reported that was 404 on friday,saturday, sunday we had 220 cases, 170 cases and 120 cases in each of those three days so when you -- you really can't just look at individual cases oen a day by day basis the reporting is sporadic. what you really have to do a good job of is doing con tast

tracing. we are making sure we quarantine them we can slow the virus and what we look at and our goal from the beginning is we had to make sure that every single mississipian that could get well with proper treatment receive that proper treatment. our goal was to focus on our hospital capacity and what we found is we have less than 600 total patients hospitalized in mississippi with covid-19. we have less than 150 patients in icus and we have less than 80 patients that are actually on ventilators. that means we have approximately 90% of the total ventilators totally available. every single mississipian that

can get better quality care can do that. our health care system is not stressed and that was our goal from the beginning we're going to continue to monitor that >> governor reeves, want to thank you for being with us this morning. wish you good luck as you start to reopen the state. thank you for your time, sir >> thank you for having me on. >> thank you >> joe coming up, dallas mavericks owner mark cuban he decided to measure how texas businesses were obeying the state's reopening rules. you're going to want to hear his data. a note as we head to break tomorrow we will be gathering health care leaders at the center of the fight against coronavirus for an interactive virtual event. guests will include the ceos of moderna, bristol-myers squibb and pfizer and merck's chief patent officer i think we mean that there patient officer. learn more and request an invitation at cnbc events/healthy returns stay tuned "squawk box" will be right back. when you take align,

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two big interviews coming up paul tudor jones on investing in the markets. then dallas mavericks owner mark cuban on the debate of how and when to reopen states around the country. take a look at shares of tesla the company sued alameda county asking them to validate orders that have stopped tesla from opening the car nuctinmafaurg plant there. stay tuned "squawk box" will be right back. every financial plan needs a cfp® professional --

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welcome back to "squawk box" this morning we've been talking all morning about what is going to take place or what's going to need to take place to get the markets to a stable place in the u.s. economy back on track. we're joined now by someone who's been thinking a lot about both of those things paul tudor jones joins us this morning. he's the founder and chief investment officer of tudor investments and founder and board member of the robin hood foundation having a virtual fund-raiser

this evening that's going to be carried on cnbc. we're going to talk about that in just a minute, paul you told us in late january back in davos to be worried about this pandemic and then we talked to you again about six weeks ago in late march and you had a much more optimistic point of view, both about what was going to happen in terms of the health issue and also in terms of what was going to happen to the markets. you've been right about the markets. on the health issue you had suggested back then about 40,000 people, there would be 40,000 deaths in america. i wanted to understand your analysis as you look back on it now and what you're thinking about looking forward. >> thanks, andrew. well, when i said that on your show last time, that was probably at the time i think that was on the less optimistic scale of what people were

forecasting. and it all -- it was difficult at the time to even -- if you will remember, it was difficult to even comprehend 10,000 deaths now we're obviously at 70 plus and counting do you know, the american people are a unique breed when you think about it, we have a second amendment that says -- it gives us the right -- excuse me, we have an amendment that says we have the right to bear arms that's an incredible mindset when you think about it. as a people, so that we will never be under the yolk of a tyrannical government. we have states whose motto is live free or die i think america's greatest strength is its individualism, its love of freedom. in the case of this pandemic it's also our greatest weakness because if you look at the asian countries that are succeeding in beating this, they're doing it because they place a much greater emphasis on societal

values than they do on individual rights. so it's very difficult to get americans to act as one unit, to come together and do what's necessary to actually again reduce the number of covid cases. again, i think it just goes back to the core of who we are as a people and i don't necessarily see that changing going forward so we're clearly the hardest hit of any country in the world as far as the eye can see right now, certainly with the kind of mentality we've got and the leadership that we've got and i think just the core basic principles, i don't know if that's going to change. >> how does that impact your thinking about the world of investing? does the stock market look fairly valued to you cheap to you over valued to you >> well, i think, again, the last time i was here i thought the market would be higher at

this point in time, primarily higher because we're in a liquidity driven state i think this part, the bounce, was easy to forecast i think what happens from here, again, depends a lot on covid. there will be a shift in focus from liquidity issues somewhere down the line to solvency issues and if we start seeing -- if this -- if we don't find a vaccine or a cure, if we don't find a much better way of testing at scale for the population so that we can get back to work and we start seeing daily doses of bankruptcies and other insol ven sis, then i think the market is going to have a much more difficult time. so so much of this is dependent on what happens with our response to covid. can we find a way, with or without a vaccine, to get people engaged again?

there is -- again, there is that dynamic tension between the health costs and then the economic costs but i wouldn't say just the economic costs there probably -- the one thing i get nervous about with regard to the self-quarantining, and i've been doing it now, like all of us have, for the past two months if you just think about the track of human history, right? every year or every decade that's gone by we've -- as we've added more humans to the planet by definition we've probably become more urbanized. we've crowded together it's because we're social animals. with that has also been an attendant drop in the number of wars we have, our violence towards each other even our poverty rates are probably the lowest in the history of the world or were before covid so we are by definition social animals and our sympathy,

empathy, compassion and kindness, the more that we're together, i think the more those values become embedded in who we are. it's been a good thing the social costs of self quarantining, which i don't know, but i'd say it's a legitimate question is, is if we look back and we're doing this for another year, do we begin to chip away at the very trait of kindness and brotherhood and sisterhood do we begin to chip away at those because we're all isolated i don't know the answer to it, but it's something that stays in the back of my mind, particularly as we go through our weekly robin hood meetings and we're thinking about programmatically the people that are in need right now. we've had this great rush to help, and i just hope it continues. i hope that we continue with the same sympathetic responses that we're seeing right now >> paul, but doesn't that suggest to you, i mean, if you're talking about the american will, the will of the

people to be social and we're starting to see it across the country irrespective of in certain cases what the knew miss pal municipalities or health experts are saying, perversely even, isn't at that suggestive and promising for the economy? >> i think -- i think it is promising for the economy. again, i don't pretend to know what the right balance is. i don't pretend to know the right answer the costs are so huge on either side of the scale. the covid costs in terms of deaths is tragic and horrible but then again we've got the economic costs and the unknown and unquantifiable social costs of self-isolation so i don't know what the right answer is. i think the market's going to figure this out. we're obviously doing that right now. certainly our cost has been much higher than a variety of other countries who have a more

stringent lockdown, and i don't know what's necessarily the right way we should be doing it. certainly in china, south korea, et cetera, they are -- we can't even compare their situation to our situation because they have such fewer deaths, et cetera but the way they got there is they have a phone with an i.d. number and you're tracked. you're tracked every single day. as a society, are we willing to do that? again, i don't know the answer i think i know bhat --what the think i know what the answer is. i think americans are too different. i don't know if we'll be able to come together and do that. >> paul, for a long time you were a skeptic of bitcoin and some cryptocurrencies, but you recently appear to have changed your mind about that what happened? >> well, covid happened and the great monetary inflation happened and that made me begin to think about how do you want to be positioned in your

portfolio going forward? so that's really what tripped my interest in bitcoin. and you have to realize, if you just think about, say, bitcoin versus cash, right bitcoin -- when i think of stores and value, i think of it four ways, purchasing power, trustworthiness, liquidity, portability. that's kind of the categories i put it in. when it comes to trustworthiness, bitcoin's 11 years old. there's very little trust in it. we're watching the birthing of a stored value whether that succeeds, only time will tell. every day that goes by and bitcoin survives, the trust in it will go up. if you take cash, on the other hand, and you think about it from a purchasing power standpoint, if you own cash in the world today, you know your

central bank has a goal of appreciating its value 2% per year so you have in essence a wasting asset in your hand so bitcoin, i think it's a great speculati speculation. i've got something between 1 and i think -- just over 1% of my assets in bitcoin, maybe it's almost 2 that seems like the right number right now. it's not -- for me it's not the greatest -- it's not the -- you know, the great cure for all the monetary ills, et cetera it's a great speculation, that's what i would say bitcoin is. >> right paul, do you see this though in relation -- i'm thinking about tech stocks now. one of the things we have seen, even over the past few months, is the move towards virtual. anything that can be done virtually has had great success, whether it be zoom or any of the big tech companies in the valley because we're all able to do that virtually

is that the way you see bitcoin? and separately, do you own gold i was going to ask at the same time. >> i have assets in gold also. i think gold can go substantially higher and, yes, the digitization of the world clearly benefits bitcoin. i mean, we wouldn't even be talking about bitcoin if we weren't seeing first cousins like ven mow and a variety of other ways my children don't even carry cash they barely even know what cash is so we're clearly digitizing the global economies you've seen some countries do it explicitly like india. you're seeing other countries are on the way to do it like china. we're getting into an increasingly digitized world bitcoin will be that much more successful by that group of people that could own it as a store value. every bull market, every single

bull market has one common thread an ever expanding universe of people who own it. there's probably -- the estimates are between 55 and 70 million people own bitcoin we really -- if you're buying bitcoin, your bet is that number's going to go to 120 million or to 200 million. and it's kind of hard when you look around and you see that the world's becoming increasingly digitized not to think that the p p preponderance of the evidence doesn't point in that direction. but, again, i am -- when i think of bitcoin, i look at it as one tiny part of a portfolio it may end up being the best performer of all of them i think it might be. i'm very conservative. i'm going to keep a tiny percent of my assets in it and that's it it has not stood the test of time, for instance, the way that gold has, which has been a stored value for 2500 years.

>> paul, before we let you go. tonight is a big evening i've been attending for many, many years the robin hood's gala event. taking place at javits for many, many years this time it's being done virtually. it will be broadcast on cnbc along with a host of other networks in new york city. just tell -- how hard was it to get this one together? >> well, this is unlike anything that i've ever been involved with because i've never been involved in producing a tv show. it's going to be -- it's going to be a spectacular night. it's going to be an hour of great messaging and great entertainment. a diversion for the millions of people that have just had enough of covid so we've got -- we've got robert deniro kicking it off. we have an entertainer closing the show

we have acts like lin manuel miranda kicking it off we have some great film clips of new york's greatest sports come backs, because that's really what we've got to do here. we've got to come back as a nation and in particular in new york from covid. one out of every four deaths in this country happened in new york city. and so new york city deserves some special help and some special attention, and i'm so thankful to cnbc for broadcasting this nationally and internationally because i think we've got some important messages to deliver there. when i think about -- when i think about what's happening right now, we're really probably, depending upon how long this lasts, if we're a year from now in the same situation, we will be and we will be called the second depression. just depends on whether

unfortunately this goes to a year with this kind of a lockdown -- another year with this kind of a lockdown. so 1.2 million new yorkers have lost their jobs in the last 2 1/2 months i say -- i think to myself, i wonder how many of that 1.2 million somewhere in my nearly 5 decades in this city either opened a door for me or served me a meal or maybe they were a tour guide or maybe they were a taxi cab driver. who knows what they do, but i wonder how many of those 1.2 million that i intersected with? then i think, okay, they served me and gave me some of the greatest memories of my entire life, as well as are responsible for the success i've had, so here tonight in our telethon and

supporting any charity really anywhere, i'm thinking new york because this is the epicenter, i'm thinking, okay, this is my chance to serve them this is my chance to be of service to them, to try to equalize the ledger, and i want to be able to say in 20 years to my grandchildren that -- when they ask me what did i do in the second depression, i want to look them in the eye and i want to tell them, i did more than i ever thought i could do. i think that's the measure. >> paul tudor jones, we appreciate you being with us we are rooting for you we are rooting for robin hood and we are rooting for the rest of the country we appreciate seeing you and good luck this evening, as we mentioned, we'll be broadcasting

this evening at 7 p.m. eastern time paul tudor jones >> thanks so much. >> becky over to you. >> thank you, paul. >> andrew, thank you paul, thank you. it's been a week and a half since texas began reopening for business, but the lone star state is still seeing a pretty big increase in case numbers with more than 1,000 per day each weekend our next guest wanted to gauge for himself whether businesses were following the safe practices that have been mandated and abiding by the guidelines for reopening he hired a team of secret shoppers to find out, and he says what he discovered is not good joining us right now is mark cuban. he is an entrepreneur, of course, philanthropist and owner of the nba's dallas mavericks. good to have you with us this morning. >> thanks, becky good to have us on. >> i was pretty intrigued when i heard what you did you hired hundreds of secret shoppers to go around and check out some of the restaurants that had opened in dallas to see what they were doing. what did you find? >> well, it wasn't just

restaurants. it was the weekend that everything opened back up, it was 300 different businesses we just asked a company, shift smart, that goes out and hires surveyors, if you will, and we just wanted to see what they were doing and if they were open the first thing we found out was 36% of eligible businesses actually opened. that was kind of interesting i thought in texas the number would have been much higher. the second thing we found is that not all were practicing the recommended guidelines of enforcing social distancing and some of the other recommendations, but that's to be expected on the first weekend of just opening up because, you know, there really weren't a lot of good protocols or support mechanisms available to small businesses, but what we'll do and what we're already planning to do is next weekend we'll do the exact same thing we'll see what the trends are and we'll try to learn from it >> mark, what were the most common violations in terms of what the safety recommends aatis

and what people were doing >> mostly not enforcing social distancing look, there are things that are hard for -- you know, in texas you are allowed to use up to 25% of your capacity kind of the things you would expect not enforcing enforcing the mask requirements, where the local municipality required them, just the expected the blocking and tackling type things >> it seems small businesses might have the biggest burden put on them. a bigger business can institute it across a lot of different places they open for a small business person trying to maneuver this, trying to figure out what they're supposed to do, seems like they havedisadvantage >> there's the ppe, but the way the ppe is structured, you have to use 75% on payroll in order to have that amount be forgiven. so that doesn't take into

account any expenditures to upgrade your location and try to adhere to all the requirements for safety so, they're in a catch 22 position that's part of the reason why we wanted to do the survey to understand more about what we can do to help them. >> have you had any conversations with anyone in washington about potentially opening up the uses for the ppp? that's a good point, if you have to bring people back but need to spend more money or time investing to make sure that it's safe, it seems like a reasonable point to have. >> yeah. you know, i know the national restaurant association is pushing hard it is just not designed to work right now. you know, if the ppp money would have gotten into employers hands immediately, the first few days after the legislation passed, then i think it really would have served its purpose. now, again, there's just so many

issues for small businesses, whether it's a safety standard, whether it's not being able to limit your payroll to 75%, whether it's not being able to open again and the eight-week clock is ticking in terms of forgiveness. whether you're employees are making more money on unemployment and they don't want you to ask for them to bring you back, so there's even an updated guideline now from the sba or treasury, i forget which, saying if you're an employer and you send a letter to a potential employee offering them employment back, they don't count against your 75% there's a moving target. in terms of forgiveness for the amount, that's become a moving targ target we have to make it so small businesses understand what's required of them and that the treasury understands what's happening for small business and i think that's the real disconnect i don't think that treasury is

really asking small businesses, you know, how is this affecting you and what is the impact of ppp? what do we need to adjust in order to make it work? because if it doesn't work, then the entire ppp program underperforms. it's going to make it difficult for businesses, small businesses to survive past that eight-week forgiveness period we've told some of our "shark tank" companies that have gotten ppp, if it has to convert to a loan, that's fine. better to have a loan that allows you to survive than try to change your whole business approach to fit the forgiveness protocols that still may change. it's a difficult set of circumstances for small businesses now >> mark, just in terms of your comfort level, have you gone back out to eat in a restaurant in dallas at this point? >> no. only delivery. all the restaurants in dallas are delivering, it's simple to have them just show up

again, you know, i'm using the white house protocol now whatever the white house is doing for the president and vice president, that's the protocol i want to use for my employees if i can't adhere to that, why would i put them at risk >> yeah, that protocol is pretty complicated when you're dealing with the president of the united states and the vice president. a lot of those people that deal with them on a daily basis are getting tested at least once a day at this point. are you going to be able to do that with the mavericks? >> not yet that's the problem see, we're not getting -- effectively, becky, we're asking ourselves who can we trust with our lives? we're not getting any type of response back. so, if we're not getting a solid response, if we're not hearing a solid plan, if we're not getting specific guidelines for health care, the best we can do is emulate what has to be the highest level of care available, which is the white house you have to protect the president. you have to protect the vice

president. why would i not want to adhere to the same standards for my employees, whether it's the mavericks or any tiny company. we have to get to that point where the white house standard becomes the national standard i think in order for consumers to feel safe going out. in order for employers to feel safe bringing people back to work i think we can get there i don't know when. >> paul tutor jones just suggested it could be a year from now before we get to that point. would you be willing to pay your employees and get them through the next year if that's the case >> as long as i can keep on affording it, yes. we have to do -- >> thank you for your time >> thank you appreciate it. stay safe. >> it's great talking to you we'll have you back soon thanks joe? >> thanks. let's get to cnbc headquarters, jim cramer joins us now. you're never a shrinking violet in terms of china.

i know you were watching that interview. i don't know if you seen navarro's other interviews, he's basically saying they sent out seeds of this virus by closing down flights within china but sending -- you heard him say milan, sending it other places should we deal with china terms of business as usual considering we need them to keep our economy going and this rebound that maybe we're seeing, is this a time to punish them or to act with, you know, punitive measures against china it seems like the president's between a rock and a hard place. >> right >> it doesn't seem like they deserve at this point to be treated with business as usual >> dr. fauci said something very right last week, we don't know we should stop caring whether it was made by them or whether it was just from the wet markets. we have to worry about our economy. we have to worry about growing and doing the right thing. they're a stronger economy than

we are i think there will become a better time. i agree with peter navarro my question to becky to ask was if we're going to get the semiconductor chain in the united states, we have to worry more about taiwan, because that's where so much manufacturing is maybe we have to protect taiwan. some people feel that would cause world war iii, not the time to do it. but we have to be thinking internally about what to do when we get stronger. right now i wish we were stronger it's painful to see how strong they are painful. >> yeah. >> it's the truth. >> with the ppe stuff, if they were using that as leverage. just some of the charges that navarro makes versus what he's telling the president to do. it seems like if those -- some of those things are true, a lot of scientists and mds disappearing, all the stuff we know now or have an inkling of a lack of transparency is effecting us deeply in this

country. now they're not quite as effected if it was in the back of their mind that it's a way of competing against us, they couldn't have done a better job. >> i agree they hogged all the ppe, maybe they thought it would be bigger for them it's time to play a longer game with them until we become strong al that's a good line to wk. "squawk on the street" will begin after this low sugar. tastes great! high protein. low sugar. so good. high protein. low sugar. mmm, birthday cake. pure protein. the best combination to help you stay fit.

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[music] especially in times like these, strong public schools make a better california for all of us. good monday morning. welcome to "squawk on the street." i'm carl quintanilla with david faber and jim cramer futures are red to start a week with a packed calendar, whether that's earnings, inflation data, retail sales, nine fed speakers with foul tomorrow we will watch reopenings from automakers and shanghai disney oil is steady as the saudis do voluntarily cut another million barrels a day. so much to sort through in the