in the talks between tesla and alameda county that could mean the end to the fight to reopen alameda. wednesday may 13, 2020 "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. some green arrows after a lot of red yet. yesterday, the dow closes down by 457 points. a decline of 27,000 and change amid a lot of financials that kind of rolled over in the afternoon. jp morgan, citigroup and others down we saw nike and disney down. you also saw the s&p down 2.1%

yesterday. nasdaq down 2% yesterday dow futures indicated up about 26 points, nasdaq up by 30 and s&p up by two. the 10-year is yielding 0.667% andrew we have news out of washington to tell you about democrats unveiling a new $3 trillion spending bill including another round of stimulus checks up to $6,000 per household and extending the weekly unemployment benefits that would go through january including $107 trillion to stabilizing rent and mortgages and a cap on state and local tax reductions for 2020 and 2021

of course returning the tax bill that hurt high-taxed blue states that hurt them the hardest saying the relief bill is a big ticket for a big problem house minority leader called the bill a waste of time and an 1800-page of liberal wish list with no chance of becoming law the fight begins >> the latest update on the efforts to reopen america. california governor announcing next phase of opening including some malls and museums offices that can't telework would be allowed to open with safety upgrades. shopping and strip malls will offer curb side pick up. carwashes, pet grooming and pet

washing also allowed to open the california state university system which runs 23 campuses is planning to hold its fall semester online. some exceptions for in-person activity like research labs. dims the prospects for college f football in the ball the president of the ncaa doesn't see a scenario where athletics take place if students can't return to campus a lot swirling yesterday with the hearings, remote hearings and very somber sort of tone of what happened in the stock market in the last hour. others pointed out that fauci's job is to talk about public health, risk, mortality and morbidity.

not necessarily to mix that all in with the steps needed to reopen the economy >> he was very up front about that he said that himself he said, look, my job is sto tell you about the implications of health. other people's job is to tell you about the economic implications >> the click bait websites, i can't help myselves. they are getting worse with the headline and then i read it and then it is like, that's not what they are saying, you are lying productivity is increasing with people doing their job from home did you read that one? is that true >> well, yeah. not commuting. do you know how much time that saves people >> i just think when you go into

the work environment >> so no one is ever going back to work. twitter people are never going back to work >> i'm worried about you two >> i'm okay from here. >> you are okay from there >> well, hell, move to florida or something sorkin wants to go there a lot of reasons you know what i'm saying income taxes am i right or am i right right. right. i'm looking at you -- >> to see you in person. >> you are coming back we'll be back together >> i'm going to come back. i'd like to come back. >> do you really believe people are more productive? >> i do. for a lot of white color work, i think you can get a lot more done becky hit it on the head o often even during commercial breaks do we chit chat

>> one exception is when you have kids at home it is difficult to work later in the day. it is fine when they are asleep. tougher later in the day that's a huge issue. >> all these office workers. it wouldn't have been possible before but we are so wired in to where we work. maybe it is possible it is just a whole new world >> andrew and i got an email yesterday concerning the wework interview. i won't say who it is from someone brought up an interesting point in terms of trying to get people to return to work, the real question is how do they get there. if you can't use public transportation, how do you get people in with parking spaces especially in a place like new york city. >> i think new york city may be

particularly major cities where people genuinely rely on public transport, that would be the gaining factor for a lot of the reopening of offices and such do you agree >> what month is it? >> for large parts of the country where that is not the case, maybe a different story. >> we are soft we couldn't believe everything would be closed down now we can't believe we'll ever be back to normal. people in world war ii, they were in that mode for years and years and years. men were gone. people had to do different things there were rationing it was never going to end. you must have been in a position then where you thought

we've been at war my entire life i feel like we are getting in that mindset now that we never think we'll come out of this don't you think we'll come out of this and go, remember 2020? >> we will >> but that's the thing. you will remember it this is life-altering. this will go on for a while. >> think about it without netflix and amazon >> a lot of people who are watching that but by the way, we are all blessed because we are still working. a lot of people are at home watching netflix because they don't have another opportunity let's talk opportunity right now. we have some news to bring you on tesla and reopening on this very topic a major update on tesla's defiance of shutdown orders in

california elon musk reopening under new safety precautions he received support on twitter yesterday from the president overnight, tweeting it received a prevention and control plan from tesla and helped productive discussions including some additional safety recommendations. the department said if tesla includes suggestions and conditions remain stable or improve, it has agreed the factory could operate with approval as soon as next week which would bring an end to musk's defiance of the local order. the thing i don't know -- from what i understood yesterday, they had opened. i would imagine they are still in defiance or out of order for the rest of this week or is that not the case >> good question >> i don't know. >> i don't know either let me tell you about

another story too. hedge fund manager druckenmiller says the prospect for a v-shaped recovery is a fantasy. he said the risk reward is maybe as bad as i've seen it in my career but the wildcard here is that the fed can always step up their asset purchases. that is a great example of how this is playing out. he said, he's not a scientist. he's a common sense guy. he says, i just don't think you can take massive amounts of money and allocate capital to zombie companies it doesn't make sense to him it is an interesting study >> we'll get him to flush a lot of this out. i have high hopes in talking to him. you wonder, guys like that

they don't necessarily want to be out and about all the time. when he has something to say, le say it but he'd be on every week if he would agree to it but he doesn't. so i'm doing back flips. so hopefully within the next 10 days or so, we'll be able to talk about this at length on "squawk box. >> pretty pessimistic view though >> unbelievable. nauseatingly pessimistic but realistic perhaps. we'll see. holds out the fed card too that word infinitiy comes up a lot. speaking of. >> speaking of, fed chair jay powell will be speaking today at 9:00 a.m. eastern. based on what we have been talking about, people will be listening as to any hint as to

what will happen you can watch coverage on "squawk on the street. next, reaction to dr. fauci's warnings about opening the country too soon dr. scott gottlieb will weigh in next futures down sharply late yesterday after the big sell off. i don't know, maybe we've moved past some of that commentary we saw with the senators. we'll be right back. it's best we stay apart for a bit,

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if that occurs, there is a real risk you will trigger an outbreak you may not be able to control, which in fact would set you back not only leading to some suffering and death that could be avoided but could even set you back on the road to try to get economic recovery. it would almost turn the clock back >> that was the warning to congress yesterday from dr. fauci. joining us now dr. scott gottlieb, former fda commissioner, cnbc contributor and serves on the board of

illumina and pfizer. he was talking about the schools opening them in the fall, the headline was opening them was a bridge too far what he actually said was hoping to have a therapeutic or vaccine to allow the bridge in the fall was a bit too far. he went back to qualify it saying, i'm not saying it is not going to happen with a lot of safety measures. i'm not saying we are opening in the fall i guess, a lot of times, scott, the news, if the house is not burning, it is not worth reporting. a lot of times, we seize on things that is the worst possible spin to put on everything i wish we wouldn't do that we call it click bait on the internet it was still sobering with the

qualifications yesterday even for you, it was sobering. you've been pretty sober >> i think he was clear enough with respect to what he was saying about the schools he said we weren't going do have a they are forapeutic i think he said we are going to try to open schools in the fall, residential schools in the fall. i think we'll see cases in the sum were a seasonal effect cases will go up as we reopen. as you look at the two-week data nationally over the last two weeks, you are seeing some flattening across the country and the number of states that have expanding epidemics go down there are some hopeful signs that the epidemic could be peaking. they are showing declines now

for more than two weeks. there are some hopeful signs as we reopen, cases will go up you look at states like florida and georgia. they reopened. we haven't seen a sharp uptick of cases we'll see. can you make an optimistic case here as well as a pessimistic one. we are not in great shape. we have a lot of infection you are seeing signs of slowing. >> how long does it take for some type of antibody to use in conjunction with remdesivir or plasma or something. can you fast track that more quickly than a vaccine, can't you? >> yes the doctors when you talk to them i was on the phone with some

doctors at hopkins and they are hopefully of using plasma maybe even prophylactically. it is not very efficient you need a lot of sick people around to get the plasma but the antibodies which are equal to taking the antibodies and manufacturing them at scale, we should have those in the fall they'll be in the clinic in june by at least three companies. lily, amgen is a little behind they could be available under emergency use in the fall. we largely understand the safety profile and so you are looking for the evidence of benefit to try to make them available under the authorization. with he could have these in the fall that combined with remdesivir and a broad screening that could take place

one headline was that statement that they plan to have up to 10 million tests a week available in the fall. >> that is a goal. that might be conducting those 10 million tests a week. that is a very robust testing form we'll be in good shape we'll be in better shape as well >> doctor, it would be great to have 100% of the population immunized. that would be great. what if you knew there was a cocktail where you weren't going to die even if you got it bad, even if you were not one of the 85% that had a horrific level of the disease, what if you had a cocktail that is something you could

start. we won't know until you see the flash of such and such company that has the report of phase one or phase two that could happen between now and the fall >> that will happen. we'll have therapeutics before we have a vaccine. >> cramer said it, you take death off the table. there is a lot less anxiety. >> in the same vein, dr. gottlieb the anti-vaxer movement seems like it has gotten louder. a lot of people don't want this and say they think the gates foundatio foundationd is out to get them do you worry about those who woech won't take it. >> i think enough people will

get vaccinated and wheel achieve herd immunity. there will always be people who don't get vaccinated take the flu vaccine people should try to get the flu vaccine early. but people won'tget vaccinated for covid-19 therapeutics won't be fool prove. we'll see reductions in fatality and icu stays. it will take some of the sting out of this zedisease and make more livable something we are still worried about and perhaps not as fear some as it is right now.

>> thank you we look forward to our next visit with you becky. when we come back, some optimistic news from the mayo clinic we have that story next. and later, we'll talk about the news overnight that tesla may have soon reached an agreement to keep its factory open with the blessing of local authorities. first, a look at images from the pandemic across america. flexshares may look simple on the outside. but inside every etf... there are untold hours of careful construction... infinite "what ifs?" and contingency plans. creating funds that help target gaps in client portfolios. tap untapped potential.

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welcome back some optimistic news from the mayo clinic. cardio s cardiovascular chair saying using an artificial analysis of the ecg developed at mayor

the tool runs to determine the probability of dysfunction or just means it determines if you have a weak heart pump saying this is important right now because of the heart-related risk of covid-19 patients. an example of great advances but also the fda stepping up and maybing sure they are moving quickly to find ways to address those. >> just makes it even scarier that you've got to basically have a degree of biochemistry and computer science and a couple of foreign languages maybe. >> amazing what they can actually do. >> yes taking data and looking at really big data and looking at the conclusions that you can

derive from that and going back and seeing if there were signs you could have picked up along the way. especially in drug development and everything else. we've got a lot of technology in terms of monthly he c-- moleculr technology and you need a super computer to hash through it. >> andrew, that's a different color shirt? is that the same blue? >> i have various shades of blue i am going to say now. these people that think you are not changing your shirt, it sort of makes me angry. that is a different shirt. >> i wear a different shirt ever day. they all look similar but

technically different shirts. >> that is different than the one you have been wearing an extended period. >> they are clean. cleaned and ironed i promise. >> are you lululemoning every day or do you put on your fancy pants without the belt >> i have worn jeans some days and these other pants. >> so it is not only the lululemons >> that, i only have one pair of >> something called the internet can you order things whenever you want and they'll bring things to your house >> i'm learning something. when we come back, so much more to talk about. we'll talk about the way health care is changing in response to the pandemic including, we will

offer some telehealth that has revolutionized things. and before we head to break, we'll look at yesterday's winners and losers these days, it's anything but business as usual. that's why working together is more important than ever. at&t is committed to keeping you connected. so you can keep your patients cared for. your customers served. your students inspired. and your employees closer than ever. our network is resilient. our people are strong. our job is to keep your business connected . it's what we've always done. it's what we'll always do.

welcome back to "squawk box. we've been watching u.s. equity

futures. we've seen some green arrows pretty heavy pressure on stocks which were down. s&p down 2.1, the nasdaq off 2.2. the dow off and the dow indicated up by 450 points new this dornmorning, zocdoc providing more virtual appointments as people around the country remain under shelter in place orders. joining us to talk about it, the founder and ceo of zocdoc and tuili o's ceo. oliver, let's talk about what

this program is and why you are launching it now i think doctors won't have to pay anything to sign up for this, correct? >> correct it is a telehealth service doctors can use for all patients the doctor doesn't need to be part of the traditional offering and be available on the marketplace to find new patients we started offering telehealth that doctors used all kinds of different solutions we were happy to support but frequency not happy with those we traded for this hippa compliant, easy to use application. >> in two months, nobody has gone in for poappointments unle an emergency what are you hearing from

doctors now? >> initially, they were under an enormous amount of pressure and saw volumes decline in lock step with the lockdown. we've seen many of them that had previously not considered a telehealth, then quickly switched over and now telehealth is 30%, 40% up from zero in february, essentially. it turns out both doctors and patients really like telehealth. we believe it is something here to stay. the crystal ball here are states that have already reopened where we see in person volumes have come back to pre covid levels where we are seeing an additional 20 to 25% of volumes that come in through telehealth. >> jeff, you've got some heavy

lifting you are responsible for. i would imagine this is such private information. how do you make sure you don't have the type of troubles zoom has run into a lot of people are getting on and finding ways that some of that data can be compromised >> absolutely. private health information is important to protect we have spent the last few months making sure our application is hippa compliant we are taking all of that information and making sure it is encrypted making sure we have medical-grade access controls. just like if it were at a hospital or medical records company. our platform is made for this work load based on the fact that we can be embedded into a

solution like zocdoc and because our applications are made and encrypted keeping health information secure >> jeff, i can only imagine the increase you've seen in terms of traffic. everybody is trying to figure out how to do everything from home and on line how are you handling the surge >> we have seen growth in products video is one of those. moving from face-to-face to telework loads we have seen 850% increase in users since mid-february that shows the number of cases whether medicine or distance learning and other work loads that have grown because of social distancing and covid. our platform is designed to scale out to support the work

loads so any company doesn't have to worry if we can keep up with their scaling that's what we serve our custodies. through this covid crisis. the twolio has moved to accessing digital. software agilitiy to be able to reconfigure your business rapidly and cloud scale. you don't have time to capacity plan you need to build the solution, light it up and be up to scale >> quickly, have you had to add to the number of servers you have out there if you are seeing the increase of 850%, you had the storage sitting around and you are to add storage? >> we have 30 data centers

around the world those are in the cloud and can burst up and down as needed. we have the ability to add our services not just adding servers but our capacity is growing by the minute based on real time customer demands >> oliver, in terms of the doctors, if they are not paying you to get their service, that's incredible you are offering this now. how do you make money? do you eventually charge for that >> hour plan is to make this free permanently we have other offerings like zocdoc marketplace where if doctors want to use their own marketplace. if doctors want to grow their client base, we have that interaction with the zocdoc video server >> thank you for your time >> thank you, becky.

coming up, shares of gilead moving on some news about remdesivir up a little bit. up 1%. that story is next a reminder you can watch or listen to us live on cnbc on the app. as we head to break, a look at some scenes yesterday from states that are reopening. you can also use our podcast but i don't think there is video a lot of reopening of businesses across the states. we'll be right back.

welcome back new this morning, south korea reporting 26 new coronavirus cases as the country continues

to track a new cluster of cases linked tonight clubs the country fearing a second wave after easing restrictions the company struck a licensing agreement it will give to make the drug remdesivir in 127 countries not including the united states. the agreement will be royalty free during the pandemic and intended to boost distributions in lower income countries. andrew, i think mentioned this yesterday did you see -- were you feeling the burn did you watch bernie yesterday >> i read about it i did not watch live, no >> i don't want to get into this i guess i don't but now i have

i would certainly hope a vaccine would be available to everyone it would be nice it it would be free everybody should get it across all socio economic poor people should not be waiting and rich people should not be getting it first. >> 100%. >> just watching bernie talk about the pharmaceutical companies and the notion that any would make a profit just shows me the disconnect between his world view and what actually results in this great innovation and technology he has no idea >> drug companies have already said they won't take a profit now. >> if these profit mongers make one dime from saving us all, we need to throw all the ceos in

vei jail it is just a mindset, they don't understand this makes for all the bad pr and feelings with pharmaceutical industry with price gouging and extended release versions and reimportation and all of that. if they do provide some help here or an actual cure, i think the entire industry might be looked at better >> i think there is a lot of industries that were looked at negatively that will be looked at positively. pharmaceuticals will be one of those. the tech lash against technology companies. amazon is beloved and hated at the same time. >> i can't believe i'm tip toeing around this that maybe socialism doesn't generate a lot of innovation. maybe it is because i see you

out of the corner of my eye. >> in fairness, when it comes to the vaccine and other things, so much of this is being funded by the government and by not for profits including bill gates and so many others >> i applied for a national science foundation grant when graduate school. i know how it works. i was there. i applied for one. >> we'll talk about the backlash and elon musk when we return karen swisher is with us to talk outhe move to keep his factory in california open we are back with more after this some companies still have hr stuck between employees and their data.

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. welcome back to "squawk box" this morning elon musk is a ceo known for break rules. he defied stay-at-home orders by opening tesla's fremont factory. the health department tweeted it received a prevention and control plan from tesla and had productive discussion with the company and its representatives. if conditions remain stable or improve the factory cooperate

with its approval as soon as next week but it's already operating. we're joined by kara swisher, co-host of the pivot podcast and a cnbc contributor no sunglasses this morning great to see you help us understand, what do you think of this? it's early in the morning. it's getting sunnier and sunnier in the morning >> okay. all right. sure you know, it's elon. i don't know what else to say. he's operating it now and officials are rushing to keep up with him you know, he sort of calling their dare what are they going to do? very few people would do this. but i think you can't see a tim cook doing this or anybody else doing this but it's very much in keeping with i had personality obviously, the company is under pressure to make cars. and he's in the san francisco bay area which is, you know, harder hit than other areas

where manufacturing is being allowed to proceed in california and so you're going to see struggles like this every where and he's just -- it's very typical of him to do this, to push them as far as they can i suspect he's been talking to them behind-the-scenes but they weren't moving at the pace he wanted them to move at and he's been rather public about it. >> do you think it's a bluff he'll leave california completely and take his factories to texas or move the facilities >> no. he's working i don't think it's a bluff absolutely you know, it's expensive, obviously but people have given him an enormous leeway look at his stock it's gone up he would do it of anybody i think a lot of people might not and sometimes he does bluff and sometimes he does, you know, sort of punch

indicate on twitter. but he's done manufacturing facilities lots of places. i don't know why he wouldn't do that >> most silicon valley ceos and tech ceos talk about the relationship with their employees a lot. the relationship with the employees is very, very important and the reason i mention that is because if you're willing to effectively give up 10,000 people in california to go elsewhere and also i should also mention at least online they are employees who appeared to have leaked memos from the company suggesting that they've been bullied or threatened to come to work or to lose unemployment insurance and the like if that was happening at other big tech companies there would be an uproar >> yeah. yeah you know, elon has had a long history of this. there's not a lot of reporting on it. he's pushed hard against it. it's a great question. if you remember the last time

this happened when they were building, i think, it was the three -- same thing. he was sleeping on the factory floor. he felt safety standards weren't in place and he kept going he feels he's on a mission whenever you talk to him, it feels he's on a mission and he has to have this happen. he was saying other automakers got a break but only tesla was singled out. he feels this is critical. i know it sounds like, that it's not so but i think he really does feel like a man on a mission so his impatience is clear. these tweets are unfortunate some of the tweets i don't know if he understands kind of the overall impact of what he might be setting off, but i think he's just going to go forward and it will be up to the officials to respond i don't want to compare it to trump but these techniques are not dissimilar they are not dissimilar

techniques >> somewhat political question and it relates to trump. he now has the backing of trump in a very public way and he's sort of on the trump side, if you will, of the liberate america concept. but on the other end for many, many years he would at least privately and in some cases publicly deride trump and sell tesla in large part on the idea of trying to end climate change and all of these things. so how do you square that up >> he's a complex person i don't know what to tell you. i don't think he's necessarily a trump supporter. i never heard that of course, he has been critical and he was on that business council because he wanted to get some impact on climate change. so it's a complex situation. it doesn't mean that he's not using twitter to the same effect, sort of rally his troops and does have a lot of fans. you know it's his technique of

doing this high drama, threats that he manages to somehow settle things sometimes it turns out well. sometimes it doesn't but, you know, this is a guy he went up against the sec and from what i can tell they really didn't -- they warned him and said he can't do it again and he did it again i don't know if he feels there's a lot of consequences for doing what he's doing and his aim is to build these teslas. and, you know, he got a lot of criticism from the alameda county officials what will they do? the mistake is getting in this fight with him publicly but i guess it wasn't working out privately. then you have gavin newsom in the middle of it because he's been supportive of musk and important to keep manufacturing in california. but eventually just like what happened with amazon you either say we want this or we'll put up with this or we won't pay for this and you can go elsewhere.

this is a struggle for all local officials, including protecting the safety of workers which i think is very important. >> it is always good to see you. got to have you back to talk about the other big valley story people that will work from home forever given jack dorsey's plan at twitter >> yeah. jack can live in africa now. he can live wherever he wants now. it's great >> all right thanks we'll see you very soon. back over to you, becky. >> good point. i didn't think of that aspect. jek gets what he wants to do when we come back we'll talk market strategy and the futures this morning have been a little higher right now the dow is indicated up by 40 points. later gop senator rob portman will weigh in on the democrats $3 trillion for the next phase of relief aid. "squawk box" will be right back.

♪ happy birthday! so, it goes... ♪ hold up your answers. how is mickey doing today? ♪ you're just a really hard worker. ♪ ♪

♪ ♪ the big debate worrisome testimony from dr. anthony fauci about the human cost of re-opening while others are concerned about the economic costs of staying closed is

simply too high. we'll speak to a number of voices on this very topic including the ceo of lap corp. and house democrats unveil a new $3 trillion stimulus plan. a rundown of what is in it and what it means for the market straight ahead taking on fed. legendary investor signalling -- signalling out the central bank for a policy he calls puzzling and aggressive reaction from former barclay ceo bob dimon coming up as the second hour of "squawk box" begins right now good morning and welcome back to "squawk box" here on cnbc take a quick look. i'm joe kernen as you know you know becky and andrew. futures this morning up 54 on the dow. they were negative for a lot of pre-market session and the overnight session.

some positivity in europe. maybe leaking into here a little bit after what was a negative close yesterday which took the dow down over 400 points took a big chunk out of the nasdaq and the recent gains there. and, andrew, you are this close to your doughnuts at this point. i was up -- i think about 80 points above that. >> and my puppy. >> and my puppy. i don't know about that. >> it was your idea. >> am i on the hook for that >> yeah. it was your idea >> dot to be hypoallergenic. >> it's on tape. >> this was about tacos and doughnuts. >> you're the one who brought up the puppy. not me >> hypoallergenic. >> pull the tape isn't that your line >> go the videotape.

>> in the meantime investors have been pouring money into what's working the nasdaq 100 has risen more than 4% this year. driven higher by companies like tesla which is up 93%. amazon which is up 27% and then microsoft up about 16%. yesterday, though, tech stocks were hit and the index broke a six session winning streak joining us now to talk more about the market is noah blackstein noah, before we get to what you think is working why don't we start with these comments come being from stan druckermiller. he think the risk reward scenario for stocks is the worse he's ever seen it in his entire career what do you think about that >> i never disagree with stan and have the utmost respect for him. he also mentioned in areas of secular growth where the economy

is shifting, and i agree with that part of his thesis. this whole pandemic certainly does pause everything that's going on in the economy now. government led shutdown of the economy in reaction to this pandemic and that pause accelerates the futures. so whether that's the digital transformation of enterprises and you had a great segment on health care in terms of accelerating those trends. on the negative side it also accelerates the trends there were mall base retailers and mall traffic that was struggling and this pandemic is questioning the solvency of malls and certain mall based retailers. there are as many positive as negatives for sure but it's an acceleration of trends that were already in place before this. >> what do you think happens if some of those losing areas, whether that be travel, tourism,

whether that be the retailers, whether that be restaurants? i mean there are so many troubled areas the airlines what is the potential for problems in that area to kind of bleed through to the rest of the economy and make it a huge issue for a longtime to come for so many other companies i think about advertising and how that plays you think about consumer spend and the consumer has been the strongest part of the my for a longtime >> right so, you know, i think on their quarterly conference call they have pointed sale terminals at their retailers from march 13th to april 24th they mentioned that the sales were down about 71% for their merchants but their merchants were able to recapture 94% of sales online in that period of time which, for me -- you know i've been doing this a longtime. that was an astounding number they were able to do i think people's willingness to

adapt and to change behaviors is obviously important. i think, you know, there are larger questions, for sure in term of the future of malls. there are larger questions in terms of large events, football stadiums, cruise ships no way to know how this will evolve also no way -- i guess the opportunity is that, you know, the simple models at the beginning of this was simply one person can infect three people and three can infect and so on and so forth now you're in a situation where you have large numbers of people infected people who are still susceptible and people who have recovered. we don't know those things a lot of these models of how long this continues are really unknown and have a tremendous amount of uncertainty. the question becomes longer term obviously the vaccine goes a long way to address some of these issues the fed in the short run and the

government can address liquidity issues for workers or liquidity issues for the markets, but they can't in the longer temple solve conveniency issues longer term solvency issues for areas that were in trouble before can only be resolved by opening up the economy but if you look at states that are re-opening 45% of u.s. gdp in the states that are re-opening are beginning to re-open. so we're sort of coming off the bottom here in terms of the economic numbers there's a lot of questions on how this recovery looks and what it looks like. obviously, a vaccine is a critical solution and there's a tremendous amount of effort and innovation going into that plus we don't really understand fully understand the extent of the spread of the virus and how many people had it and how many haven't. a lot of predictive models aren't there the longer thing stay closed the more those issues will come to the fore

but there are other areas where things are moving towards, whether that is digital transformation enterprise or health care, continuing growth of ecommerce those areas, you know, even as we recover, those areas are going to continue to grow coming through this and out of this >> so, what have you been doing with your snow, where your putting things to work where your pulling back? >> we've been involved -- we've certainly been involved with this cloud and digital transformation a while the health care space, especially for the company in the medical device space whether using glucose monitors to monitor critically ill patients as opposed to coming into the hospitals. telehealth those areas are beginning to accelerate a lot of areas that we were in before, we remain in now the bigger question becomes and the bigger questions i have are a little bit more in the finance

space. we've certainly seen moments of payments to online but a lot of companies that were supposed to be challenging to the banks have also, you know, in terms of volume and in terms of loans are also having issues right now. so i think we're not totally sure what's going on in terms of finance. i think the banks have hit the foul line and have not rebounded. unless it's a pure online payment company there's larger questions. volume is moving online but what do loans look like and with what does solvency and bankrupts look like this is beyond the ability to open as well the ability for businesses to open is important. also depends on a willingness of people to come back as well. again, these are unknown questions. obviously we talked about vaccines solving a lot of these issues but we don't know in some of these areas we don't know how willing people will be to go back into a stadium. you know, if everything was

certain it would all be in the price. this is, obviously, the opportunity. >> but does that mean -- are you fully invested or do you have cash waiting on the sidelines that you took out and are waiting to see how things play out? >> this is my -- i'm probably moving -- i guess i'm moving in my 23rd year of running those same fund. cash never helped me on the down side and hurt me on the upside we're always looking for companies an ideas clearly a bifurcation within the market not necessarily evident in the general index number but underneath the surface that's sort of where we've been positioned and we're constantly looking for new names. there's bifurcation in health care it's about a very, very difficult time for, you know, general surgery or for hospitals. entire hospitals have shutdown for elective surgeries so those numbers need to recover as well. so those might be more -- but

right now the numbers are terrible and hospitals are in financial trouble. even within the health care space or technology space there is this bifurcation that's providing opportunities. that's on the long side and short side as well, i think. >> good talking to you and hope to see you again soon >> stay safe >> you too meantime when we come back a lot more on "squawk box" cfo of takeda pharmaceuticals is working on a treatment against coronavirus. then we'll discuss the role that the fed is playing during this crisis and what other tools policymakers may through at the economy with robert diamond. we'll be right back afteth r is

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we can ensure fair funding for our schools, libraries, hospitals, and other public services. the census is safe, it's confidential, and our community is counting on us to do our part. we know who we are and how vibrant our community is. let's make sure our nation knows it too. for more information, say "census 2020" into your x1 voice remote, and to participate, go to census.gov. welcome back to "squawk box" this morning takeda pharmaceutical out with earnings and a bigger news on the virus front. meg terrell joins us with the details. meg. >> reporter: good morning, andrew for the quarter, profit topped expectations the company also saying they see no material impact on their financial results as a result of the covid-19 pandemic. either in this quarter and they don't foresee one coming up for 2020 also some news on the covid-19 treatment front.

takeda is one of the biggest makers of plasma therapies they say their plasma therapy for covid-19 is expected to start trials in summer with the first patient to be enrolled in july this is a similar approach to the convalescent plasma approach where somebody donates their plasma this is a turbo charge to that takeda is doing that in alliance with a number of other plasma companies around the world in a very unique kind of approach guys joe, back to you >> let's bring in the cfo of takeda pharmaceutical, christopher weber. thanks for joining us this morning. give us a best scenario timeline for some type of plasma treatment for covid-19 patients, in your view >> good morning, joe and good

morning everyone thank you for giving me an opportunity. so we initiated this treatment approach a few weeks ago in fact, quite rapidly we understood we could do a better job by creatingan alliance wit other companies in the field so right now what we have been doing is collecting plasma from a patient who had recovered from covid-19, from the coronavirus we have enough to actually start manufacturing of the clinicical trial batch today. so today we're starting the manufacturing of the clinical trial batch in our covid-19 site in georgia and we'll be able to enroll the first patient in july so we started clinical trial with the first patient in july >> you do work in covid-19

do you have a treatment for that platform >> not specifically. in our pipeline and portfolio we have many products which have activity and we know that inflammation is a big issue with coronavirus. so we do have -- we ask screening these products and we're seeing some activities so we hope to be able to show it to this treatment in the future >> you're not a stranger to vaccines i think you have one for -- i don't know, not necessarily a virus but a dengy virus. >> we don't have a specific technology to go by ourselves. we decided not to develop our own programs we didn't have that inhouse. but we're looking to partner

with other companies which are developing coronavirus vaccines. i think i know the key will be manufacturing capacity that's always an issue with vaccines so we'll be ready to partner with companies in order to increase manufacturing capacity >> meg >> reporter: thanks, joe good morning i'm curious to here more about this alliance to create this hyper immune gobulin how is that different from take one person's blood plasma who recovered from the disease and give it to somebody who is suffering from the disease >> well, i think this is a similar approach but at scale so we can pull it from multiple source, multiple countries, multiple patients and that's create more scale and more volume and we can also manage very precisely the level we have

in the formation so it's really doing something at scale, a level. productivity that will become a drug and treatment >> reporter: you're working with nine other plasma companies around the world to do this all together which is kind of, what you want in a pandemic situation for commercial concerns to be set aside and everybody to be devoting their resources towards solving the problem. how does this kind of work, though, down the road if this ever became a commercial therapy. how do you sort of envision that playing out? >> i think at the moment it's a race and we have been much slower by going alone. that was our initial intent but very rapidly we felt we could be much better to pull our resource so today we're starting the manufacturing of the clinical batch. there's no way we could have

done it so fast alone. so i think we're moving faster with more scale. in the alliance we have other companies which will help us promote the donation as well because that's a limiting factor at the moment this is what we're doing. we're projecting ourselves to bring a treatment potentially before the end of this year, and i think that's why we're focusing we'll see later how we manage long term. first we need to manage this crisis against this virus. >> reporter: of course, the supply of the medicine depends on people donating their blood plasma, people who have recovered from covid-19. what kind of scale your looking at for how many people you could potentially treat by the end of this year with this approach >> well, the key parameter as well is how many patients can you treat with one dose. we don't know this ratio yet it could be three doses for one

patient or could be one for one patient or one donor treating two patients we don't know this ratio we know through the clinical data that's generated. we need donors but this ratio will be very defining for number of patients that we'll be able to treat >> all right very good. we appreciate your efforts and your time this morning thanks for filling us in meg terrell, thanks for bringing him in coming up, the latest read on mortgage apps and later dr. anthony fauci warning states that if they open too early they could face some serious consequences ceo of labcorps will join us to discuss the importance of testing. "squawk box" will be right back. >> announcer: time now for aflac's trivia question. what is the most popular seafood in america the answer when cnbc "sqwk x"onnuesua it started with a few smaller bills.

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the answer to today's aflac trivia question. what is the most popular seafood in america the answer, shrimp on average americans eat about 1 billion pounds annually. mortgage applications out moments ago. i want to bring you in diana oleck. she has got the numbers. >> reporter: stronger than expected demand from home buyers again. mortgage applications to purchase a home rose for fourth straight week jumping 11%. still 10% lower than the same week one year lower ago but that

annual loss has been slinging. last week purchase volume was down 19% and a month ago it was down 35% as some states re-open and open houses re-emerge buyers are showing up we saw that in atlanta last weekend when more than a dozen families came through in two hours. in the ten largest states new york led the purchase demand with 14% jump in applications. illinois, florida, georgia, california and north carolina also had double digit increases last week. low mortgage rates are helping the average on 30 year fix increased slightly but from a record low of 3.4% to 3.43% with loans with 20% down payment. applications to refinance fell still 201% higher than the same week one year ago. that's when interest rates were a full percentage point higher lenners are not offering the lowest rates on refis because

they are overloaded with demand and facing higher risk due to the government's coronavirus mortgage bail out program. diana, thank you very much andrew, we have some breaking news >> yep we got some breaking news on uber uber out with an sec filing. it is now proposing a $750 million note offering with proceeds to be used for what they are calling general corporate purpose. the notes would be due in 2025 we'll try to drill through this and see more about it. all of this happening as the company is in talks with grubhub to effectively try to merge that business with uber eats. they are still far apart on price we're told so we'll see whether that transaction ever does come to pass. but, of course, both companies have long talked about the idea of consolidation becky, over to you andrew, interesting.

that business when we spoke last week about it, it's still not a profitable business even at a time when everybody is ordering from home. >> right >> part of the problem -- i don't know if he spoke about it but we asked him about this a couple of months ago we had ceos of grubhub and door dash, they all talked about consolidation because there's too many players in this space, all bringing food from the same restaurants in large part. to the extent that there can be some consolidation in large part to bring down southeast marketing costs that are involved in it and the like, and, of course, the cost of all of this is going up as you provide ppe to delivery drivers and others you hope to the consumer the price doesn't go up for the delivery cost.

but we'll see. >> tough for the restaurants, tough for the delivery guys. still to come on "squawk box" this morning house democrats unveiling a new $3 trillion coronavirus bill which includes government relief. direct payment and hazard pay for essential workers. merchant capital co-founder bob diamond will join us to talk about what that plan means and what it could mean for markets futures this morning have been higher dow indicated up by 55 point stay te.un you're watching "squawk box" on cnbc n. high protein. 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. confident financial plans, calming financial plans, complete financial plans. they're all possible with a cfp® professional. find yours at letsmakeaplan.org.

. fed chair jay powell will give a speech today at the pe r peterson institute at 9:00 a.m steve liesman is here and joins us more with the fed and powell's comments that are coming as the central bank embarks as a historic corporate bond purchase program. it is mind-boggling to get your arms around what they are doing and what they may be willing to do next. >> reporter: you know, that's a good comment, becky. the fed is trying to get its arm around what it's doing we haven't heard from powell since the end of april we'll be listening very closely to what he has to say. there's a lot of unanswered questions out there and unfinished business we'll talk about in just a second among the questions for the chairman, what is the status of these $2 trillion c.a.r.e.s. act program he was alluding to what about future policy a lot of discussion about

negative rates dismissed bay lot of people and dismissed by powell in the past and additional quantitative easing the faed chairman has not provid a positive outlook as a result of these programs. you can see the fed balance has crested a little bit in march it rose by $2.4 trillion kind of just cresting just a bit there. we'll see if that's because the fed is about to embark on a lot more work when these programs get going. here's the unfinished business of the fed the main street lending facility, the municipal bonds program. ahe setbacked program. only a part of the corporate bonds program is working there's some criticism already about whether the fed is going far enough in its lending to help the economy chris wrote this morning in an

email exchange the only borrowers who use the programs will be the one whose are relatively disstressed is the weakest of the qualifying group. so the volume of credit dispersed through these programs will be less so maybe in this environment they need to make credit more available. some people arguing on one side that the fed is being too aggressive, here's chris and a bunch of others saying the fed needs be more aggressive, get more money out to the economy, lower the standards so more companies can get help becky? >> thatseems crazy, steve. if you lower the standards all you do is wash out private capital. if everybody can get lower rates and come in through these things, i mean i think the point and the reason that the rule exists is because you want to make sure that anybody who can get money from the private investors that they do, right?

>> reporter: right but the question is why does the fed have to do anything at all and that's because the private-sector is going to be above what's deemed be a normal rate look, this is not science, becky. we've seen the fed set a rate here for example, you know, libor 100 plus or 200. then get feedback from the market and the market comes down what's been absent in this whole discussion is really an underlying principle here. who gets saved and why the ppp program was merely so far a first come first serve so you got one salon across the treat that managed to get their application in, the other salon on the other side of the street didn't this salon will survive and this one won't. should these rates being set by the fed -- this is a separate conversation -- be set at a place if you were a good company before the crisis you should be able to get capital and liquidity from the federal reserve. or should it be set relative to

the private-sector which is somewhat higher than it was before and below the private-sector >> your camera is freaking me out. it keeps doing this thing. come to me it's going -- i don't know what's going on with that. it's distracting to the conversation i lost my train of thought in that look there's nothing that's completely fair. no way to completely build this out because there's just not enough money to go around. by the way, thfrs rolled out so quickly and trying to fix things we're going to be arm chair quarterbacking this for years and decades to come, probably. >> reporter: i think that's right. and one of the interesting ideas out there, becky, is whether or not inside of what's happening right now is any of the process of creative destruction actually happening. if the companies that are saved are random then the process of

creating disruption is not working because random ne doesn't get you to any kind of positive outcome yes some of the weaker companies maybe they were too indebted, maybe they shouldn't survive but where do you draw that line? should companies have been rightfully expected to be prepared for this coronavirus shutdown, or should everybody be made whole i don't know the answers to those questions. it seems we're not having the conversation >> all right thanks joe, over to you >> yesterday we had legendary investor sam druckenmiller saying a v-shaped recovery is a fantasy. he said the risk-reward for stocks is as bad as he's ever seen but be careful to bet against the market because in his words the wild card here is

the fed can step up their asset purrs. the fed's moves in march to shore up the market was puzzling and aggressive to talk more we're joined by bob diamond ceo of atlas merchant capital. is this your quote -- maybe it's steve's quote, bob, that "star trek" fed goes where no fed has gone before. we know that to be true. was it warranted too aggressive was it puzzling? what words would you use to describe it? >> huge. unprecedented. joe, i would use the word critical you know i look back to kind of the playbook that was developed during the financial crisis in 2008 and 2009. and relative to the actions taken then, the fed was very, very fast to act the breadth of actions are significantly broader than they were in 2008

and in each of these programs, it's uncapped. we haven't heard the fed mention any amounts. so the size, the breadth, the speed is unprecedented it's incredibly impressive i think it's critical right now. >> watching the bank stocks, bob, justin last couple of weeks, you got -- you got some explanation of what's happened there, not doing nearly as well as the overall market. is that important teportending loans going bad with a lot of companies? >> one of the positives particularly here in the u.s., relative to 2008, the banks are clearly much safer i think they are much larger as well and i think one of the interesting indications i look at is the relative performance of the large u.s. banks versus the large banks in the uk and

europe and because of the actions of t.a.r.p. and many other things done in the u.s. markets in 2008 and. 2009 we saw that out performance for a long period. that outperformance has picked up since this most recent market dislocation. so the u.s. financial institutions may be behind the overall index but ahead of their peers in the uk and europe >> okay. so, bad relative to the s&p but better compared to their peers is it signalling anything about how difficult the environment will be for either consumers or companies that they do business with or yield curve? what's in it, do you think >> so, i think as you look forward particularly as we look at the larger u.s. banks, they are very, very safe. the capital levels are much stronger than the period in 2008

and 2009 but the lower interest rates are certainly going to impact earnings i would say that's part of it. part of it is in the index you have some tech stocks that probably have a better future than the banks >> do you at this point -- you seem sort of dead on arrival but the latest stimulus that we're looking at from the democrats which is a nonsecretary of state, supposedly, but it is adding up. isn't it bob are you and mmt guy? do you have any concerns about the amount we're throwing at this, and whether that ever comes home to roost >> you know, i think what all of us are waiting for joe, when is the right time for kind of a very careful, very measured, very coordinated, you know, reboot of the economy. and, obviously, that's very

complex and the timing of it is very, very important but i think for any of to us act surprised at the kind of numbers we're seeing in the economy, i think the uk numbers today came out and the economy was down something like 5.8%. we've pretty much closed the economy for appropriate reasons. so those numbers are understandable i think the focus should be on the most important thing is getting something that's very, very careful, very measured, very coordinated, very incremental to get the economy back taking into consideration we have to do it in the right time >> i remember the financial crisis we had stimulus that people didn't like. it was less than a trillion dollars, i think then the balance sheet, the fed's balance sheet expanded but now look at what the latest stimulus being added to the economy from congress is the fiscal measures and look at what the fed is doing and it's got to be a multiple of ten to

what we were so worried about in 2009, '10, '11 and this coming due and this isn't free and we got online on this it's now ten times as much why aren't you more concerned or why shouldn't we be more concerned that it's going to be really difficult for all of us to deal with this and bad for growth, overall growth in the economy when we have so much debt >> as i said, joe, the speed which the fed acted and the breadth and the size is incredibly impressive and critical but you can't, you know, we're not going to do everything with monetary policy. i think fiscal policy has to go alongside that the area i feel the focus should be on is small businesses. and even with the ppp program and others over 60% of the small businesses in the u.s. have had

to let people go and so focusing this on lending and to small businesses to me is the most critical part. but i am supportive of fiscal alongside of the monetary for sure >> andrew? >> i had a question and it may be unrelated to business but we had you on probably a year and a half ago with the head of colby. do you have any updates or what you know about the timing of whether people are going back to school and what you're hearing on that front and also all the seniors who are trying to get jobs, what's going to happen >> so, we're cautiously optimistic david green and the trustees are very, very focused on doing what we can to provide in person education to our students. and this program has to be very thoughtful there has to be a lot of, you

know, a lot of health aspects to it and testing aspects to it one of the things we've decided is the leadership of the college and as the board of trustees, even if when he to delay the first semester as late as december or january, we could still run a full year of in person education and the second thing that david has done and this is where leadership really matters, he's got en30,000 alumni and thousands and thousands of colby parents to commit to getting jobs for every one of the seniors in 2020 and we have a very large number of those seniors that for various reasons related to the market dislocations don't have jobs right now. so he's mobilizing us very well. >> robert, thankyou. appreciate that. and you seem pretty calm what do you think, andrew. he seems pretty calm of course he went through some stuff a couple of years ago that

probably steeled him to a lot of what's happening here. >> yes exactly. we got a lot more coming out talking about the science of all of this. the ceo of lab corp will join us we'll ing brit to you right after this

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still to come this morning the ceo of labcorp on the company's roll out of its covid-19 tests and the latest on the battle against pandemic.

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for more information on how you can stay connected, visit xfinity.com/prepare. welcome back to "squawk box" dr. anthony fauci warning congress some states are re-opening businesses too soon and risking additional outbreaks of coronavirus >> when you look at the dynamics of new cases, even though some

are coming down, the curve looks flat with some slight coming down so i think we're going in the right direction but the right direction does not mean we have by any means total control of this outbreak. >> joining us right now to discuss the roll out of testing is labcorp ceo, adam schecter. labcorp announced it ramped up at home test for covid-19. adam, good to see you. >> good morning. thanks for having me back again. a pleasure to be here. we are making significant progress on testing and i'm thankful to all our labcorp employees that are enabling are labs to be opened seven days ago. yesterday we announced to expanding our home kits. we launched to it people that were either first responders or health care professionals on the front lines. we did that because we didn't have enough kits to roll it out more broadly

the good news is now we have over 200,000 kits available and yesterday we announced it is available for anybody that meets the cdc criteria they can go online and order one. we ship to it their house. they ship it back to us and we run the test >> adam, so let's just talk about this test in particular and then i want to talk about the tests that take place in a doctor he's setting. but this test, are you supposed to take this test if you have symptoms, if you're asymptomatic >> the test is for anybody that has symptoms but also people that are asymptomatic that may have been exposed to people that have symptoms or have the virus. >> and what is -- >> hey adam -- >> what is the accuracy rate

>> as high as the drive-throughs at pharmacies. >> adam, the last time we had you on because we didn't get a chance to ask you. new york, new jersey, some other states won't let you do testing at home. have you been able to find a way to let that happen >> we've talked to other states. they will be open in the next several days i believe two or three of them are already open >> okay. great. thank you. >> yep >> adam, the other question i wanted to ask you about, though, is and it does relate to the accuracy issue when it comes to the antibody test for example for we had dr. scott gottlieb on the program and he said he would literally have to take the test three times to feel comfortable with the results what do you think about that >> so there are a lot of different antibody tests in the marketplace. some are available today that haven't even been approved through the process at the fda if you look at our antibody test

they are highly specific they are above 99 pierce specificity. our tests are very accurate. i believe that as more and more people do the serology test you can see which ones are more accurate than others we tested ours versus others in the marketplace and we're running three or four different types of serology test from different platforms and all of them are above 99% >> the other big question, of course, is businesses that want to get access to these tests, whether we'll have enough of them now or come fall. where do you think we really stand on that and i would also tell you dr. scott gottlieb who we have on the program literally every day says we're at about 2 million tests per week we're not where we need to be. in july we'll have 3 to 4 million tests. but to do this properly we need multiples of these numbers >> actually i think we have the ability to run more tests than that today one of the biggest issues is the

front end, meaning getting the samples taken. right now labcorp alone can run 75 to 80,000 tests per day and we're targeting by the middle much next month to run 150,000 of these test as day, the ones that tell if you have the virus. so just labcorp alone will have significantly more capacity in the next two to three weeks than we have today. so, i believe that we're ready to start to open up states with the testing that's available today and that's only going to increase over the coming weeks >> in terms though of the number that you think needs goal i've seen it anywhere from being able to do 2 to 3 million test as day to over 5 million tests a day. >> i think that if we can get to somewhere between 12 million tests per month that's enough to test as we go into phase one and then as we go into later phases we'll have to increase

that i'm not convinced we need have 2 to 3 million tests per day >> in terms of businesses having access to these tests, how are you prioritizing that? how if you're a ceo watching this program right now should you be thinking about that getting in touch with a labcorp to be able to access these tests if for example you're elon musk and trying to open up your plant? >> absolutely. i'll give you a sneak announcement we'll make tomorrow we're already working with employers and what we really want to do is make sure we help employers get employees back to work so tomorrow we'll announce our labcorp employer business service. and the type of services we'll include from employers is screening for covid, things like temperature checks or helping with questionnaires as people come in to work, testing for covid both pc r testing and serology testing and things in the fall offering flu

vaccination on site. so we're doing to do everything we can to help employers get employees back to work >> do you think we'll get to a point where we're going to be testing people that are symptomatic and asymptomatic just all the time like on a weekly basis in certain industries >> i think there are certain industries that will be looking for that particularly if they have people going into hospitals often or perhaps are even coming into very important workplace like your laboratories could stay and running i think that it's still unknown exactly how many tests are going to be need but i do think different industries will look at testing differently and even certain employees will look at testing differently from certain employees and others >> adam, thank you for joining us thank you for breaking that news on our air just now. we wish you a lot of luck. appreciate it the. joe? >> coming up, glenn hutchins

will join us to talk about the fed, the markets and impact of the pandemic stay tuned ♪

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stay safe. stay home. together, we'll get through this. pnc bank is congress all done throwing money at the coronavirus? democrats unveil $3 trillion spending plan but republicans don't seem to be on board. market warning from an investing giant to those expecting a v-shaped recovery out of current crisis. stan druckenmiller said keep dreaming wall street wants to know what the central bank has up its

sleeve we're waiting for remarks from fed chair jay powell final hour of "squawk box" begins right now >> good morning i'm joe kernen along with andrew ross sorkin and becky quick. futures up 80 points on the dow after being down for most of the night session. adding to what is a pretty ugly close where the dow dropped more than 400 points really in the last hour. down maybe half of that or so. then that accelerated the close as that senate testimony was continuing with the heads of the different response agencies in federal government, dr. fauci and robert redfield, not robert redfo redford, got to be the cdc guy anyway we're up 63 points on the

nasdaq and the s&p is bullpen 12 treasuries yesterday, i remember changing hands around .7 .667 on the ten year. the investor event of the morning is fed chairman jay powell who will be speaking on the fed's historic market interventions in an hour's time. yesterday the central bank began a program to buy corporate bonds and etf. joining us now is glenn hutchins good to have you here especially to talk through a lot of these issues >> good morning. hello to andrew and joe. i'm pleased to know joe likes my mustache >> i didn't say i liked it i said you stick with it through thick -- in fashion, out of fashion, it works for you and you're going to stick with it. i do like it >> joe i missed you. wonderful to talk with you >> i can't do it i do it and it looks like i got

something on my upper lip. >> for a price i would shave it off. >> is that true? >> has to be a high price. >> i think you have enough cash, joe. >> no i don't either i'm pretty sure. >> big donation. >> glenn, let's talk about the fed. we were all surprised by this move for them to move into bonds and bond etfs, to be buying those things makes people start to wonder will they buy s&ps what do you think? will the fed do everything and anything >> we're in unchartered territory, becky and one of the things that -- we've heard a lot of talk about going -- the risk of a great depression one of the things that's happened in this cycle is that the lessons of the great depression, public policy lessons have been applied in the positive we can talk later on about unemployment but with respect to

fed's actions the fed is taking everything in its arsenal and inventing new actions to try to smooth the path for this pandemic and the subsequent recovery one of the new features of it is to be buying even in the corporate debt markets sway brand-new piece of it not just two facilities but what main street facility. those are as i say brand new things that the fed is doing they represent innovations we'll see how they work. i think if you quoted krishna earlier today, i would argue what the fed is doing is creating capacity for companies that were previously investment grade and don't have access to markets today to get access to those markets. hopefully that's a temporary measure. hopefully it's bridge financing to the future. and we can have these markets stabilize, company stabilize and great conditions for recovery. so i think it's all good the one issue about it, though,

does get the fed closer and closer to fiscal actions to have the fed picking individual companies or individual etfs to invest in. picking winners and losers is something that's more, i think correctly done by the fiscal authorities, by the treasury and by the legislature i assume that's one of the things that jay will be addressing today >> i agree i hope that is something they address. glenn, the other issue at the fed and this has been a running debate on the show, just what the fed is doing whether that's going thread a big backlash in terms of, again, thinking what everybody thought after 2008 is that the fed bailed out wall street and main street got left behind there's a real risk for that this time around too anyway to avoid that >> that's a good point lagly we internalized saving the bank is necessary to save the economy but still didn't stop the whole thing being

stigmatized. one of the elements of the learns from that is that these programs need to be fully disclosed. they need have good governance in place we need transparency that can give people confidence that these things are being done in the right way. i think we're doing that at the fed. that's something which i'm focused on i'm determined to get right. i would also point out that the c.a.r.e.s. act was combined with a lot of individual relief, the ppp loans,the extended unemployment, the checks are written to people, the help for the health care system paired with a lot of other activities that went directly to help individual people or different kinds of institutions, just large companies and banks very different set of circumstances too. >> it does seem like we have reached the end of coordination between the democrats and the republicans in terms of everyone being on the same page and saying we should be spending

amounts. we may have seen the last of the bills that have been passed in terms of saying we're all vote forge this unanimously now the democrats have a big plan they want to put together the republicans say no way i think the exact quote on it was something like a liberal wish list of things they want to get accomplished so what happens if there's no longer the fiscal money that's coming in to help us out >> i think that you need to distinguish between political theater and actual actions being taken. even when the two or three c.a.r.e.s. act were being negotiated there was still political theater going on simultaneously a lot of that is what's going on here don't forget we're in a political election season, hotly contested presidential election. that will continue but i do think it's probably not wrong. it was important to act very, very quickly to stop the raging bull from rampaging through the

economy. with the first two actions, three actions and then the action by fed. not wrong now to take a pause, look at what happened and understand where we should go next in connection with that, there's an interesting piece of analysis up on the brookings site right now that says the virus is now heading towards what he call trump country, heading towards the middle part of the country and that all of the declines in new york and new jersey increasing in parts of the country that haven't seen it before so that suggests as new york and new jersey and the northeast begins to decline, you'll see significant economic problems growing in other parts of the country which means we'll need greater relief for them than we have now and will create a different set of economic politics around it that suggests we need something that looks more like automatic stabilizers where we shouldn't

have just one set of shocks here with our economic policy and then wait and see what happens we should have economic policy that turns on and turns off based upon how bad the situation is in this case unemployment then we don't have to constantly go back is it bad enough to do something. get subjective measure of unemployment and turn it off and on something that was done in germany very effectively >> you're on the board of new york presbyterian hospital you have a good idea how bad things are at least on the front line i wonder what you think about the efforts to open economies state by state, area by area, how concerned you are about it or whether you think it's time to start doing this? >> i think it's time to do it but we need do it in a careful way and there was an event up on the website again at brookings yesterday where a number of

leading epidemiologists modelers had their proposals for doing this there's some interesting thoughts out there i think it's time to be able to -- not just because of the virus incident but because we have learned that the virus was contained, was able to be contained within the capacity -- treated within the capacity of our health care facility we're getting pretty steady supplies of ppe out there. your previous guest from labcorp, that's very encouraging, american companies meeting the needs of the country getting testing out. we're creating circumstances under which people can go back to work. i think you'll first see people who have high economic value, low transmission possibility work going to work and then that scaling up so i think it's right to do it on a regional basis. and company by company basis within the context of federal guidelines this is the right time to talk

about that >> did you just have a cat or a dog walking in the room. what were you looking off to the side there oh, oh i think we justlost glenn. we will have him back very soon. a lot of things we want to talk with him about glenn hutchins again giving us an update on what he's been seeing on front line next time we have him back we'll talk about his concern about charities. this is the time of year when a lot of companies would be doing things like 5ks to raise money for charities. glenn, you're back did you hear that? >> i did i think i heard -- when i was on the last time we delivered care packages in the harlem and bronx. people asked how they could participate. we established a program where

companies can challenge their co-workers, and we'll sent care packages to front line health care workers we hope you join with us to do that >> great excellent news glenn, we really appreciate talking to you we appreciate your efforts on this we'll have you back very soon. >> stay well >> thanks. make sure to catch cnbc's complete coverage of fed chair powell's speech coming up at 9:00 a.m. eastern time >> when we come back a big interview. should america's big companies be stopped from snapping up smaller players and the out by the coronavirus. we'll ask the department of justice's antitrust chief about a new proposal from two well-known members of congress as well as some deals in the offing speaking of potential corporate tie ups. check out these two early morning movers uber in talks and

grubhub. the companies are in odds over price. stay tuned, makan derrahim from the department of justice right after the break. w sugar. mmm, birthday cake. and try pure protein shakes, with 24 vitamins and minerals. is so easy all you need is a phone and a finger. just scroll through amazing,

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welcome back to "squawk box" futures are staying positive, a little bit better than nasdaq than we saw at some point but what dow is up over 50 points. s&p indicated up seven and it's early. not even 9:30. by the end of the day it could be a lot different than what we're seeing now depending as i say depending on everything that happens mostly about the virus

>> thanks, joe meantime democrat senator elizabeth warren and aoc are calling for changes in the world of deal making during this pandemic the duo introducing an anti-monopoly act calling for a freeze on mergers by companies with revenue over $100 million or more as well as some hedge fund deals until the ftc determine small businesses, work earns consumers are no longer under severe financial distress. joining us now in an exclusive interviews to talk about this idea and so much, makan delrahim, assistant attorney general for the antitrust division at the department of justice. the man in the middle who ultimately makes decisions about the futures of mergers in this country. it's great to see you. we appreciate you joining us before we get into some of the larger issues taking place in corporate america around consolidation during this pandemic i did want to get your thoughts on this bill and the

idea that there are folks in washington who think that during the pandemic transactions should be stopped >> well, good morning to you, andrew and thanks for having me on you know, we haven't seen the legislative language so we don't have an official position on it. however, i think it would be misguided to just block all attempts for transactions. there's no question that the crisis hascreated some real challenges for the division, but, you know, there's an old saying in a great book a few years ago, i think it was called "the unfinished leader," for every complex problem there's a very simple solution and it's wrong. and here i don't think we should be using the crisis to just block all sorts of full competitive and probably some transactions that would be very necessary during this time to makesure that companies have the liquidity to continue on and

keep workers employed. >> let me ask you about that, whether the bar changes during the pandemic you talked about necessary and there are going to be companies that are genuinely challenged businesses that might not have been challenged months ago where two companies coming together, you might have looked at those two companies coming together and said this is too much consolidation. how does that change in this environment for you? >> so, you know, the legal standards are the same but what's great about the way we work we have flexibility to deal with these circumstances we recently reviewed and i made some public comments about the current crisis affecting that transaction was when the dairy farmers of america bought, i think, it was $400, $500 million transaction from decent foods

and then some other transactions and when he to look at those because the current challenges for, you know, demand of milk with the schools closing and restaurants closing was down so those were real effects but there's been an established three-part test that businesses would have to meet for us, you know, under what's called the failing firm defense the company would have to, have to be unable to meet its financial obligations in the near future. they can't re-organize and shed off the debt through the bankruptcy proceeding and there has to be some kind of a good faith effort that's been unsuccessful to sell the business or the division or the assets to a less anti-competitor or less competitively restrictive buyer. so ultimately what we look at in normal times, the consumer how

they would be before the merger as after the merger. >> let me test one out onyou let me try there there's been reports that amazon is looking at amc the film movie theater owner across the country that's now a genuinely challenged business and is likely to be a genuinely challenged business at least for the next 12 months if much longer how would the justice department look at a transaction like that? >> so, you're right that i can't comment on any potential pending deal if rumors are correct. you know the movie exhibition industry has gone through some challenges over the years with high capital expenses that they must continue to put in. and movie theaters have been shut down like theme parks we would look at it under the

same three-part test the merger itself under normal analysis may not pose competition concerns so, you know, the men and women of the antitrust division will give, take a look at all the facts. the failing firm defense of amc may not be necessary we would look at it and look at it quickly under these circumstances. you know, the process has been challenged we can't really take depositions of witnesses, meet in person that has been very useful. we'll look at it through the same fact based analysis >> what about the idea of national champions in this age of pandemic one of the lessons we learned is we want to bring more of our supply chains, manufacturing, everything else back to the

united states. we need being much more resilient and reliant a lot of business people and policymakers say we need to allow more mergers to take place when you have a home grown giant in places like china and elsewhere. is that going change the dynamic in terms of the thinking of your department >> there's no question the challenge is in the supply chain and how we look at it from a national security standpoint and strategic supplies we need and will need in the united states and this white house has been looking at that. it's going an important element going forward for southeast critical areas the antitrust laws have a different regime it's recently been updated to

where we take a look to see if there's any foreign investment related to that i should also say when the government directs certain types of activities there's documents that would immunize those in the private sector working with government from antitrust scrutiny. >> what about the travel industry obviously airlines are hard-hit. a lot of second lie addition in that industry. some people argue that prior to this there was too much consolidation in that space. also seeing it on the other side of it, travel reservations, the department lost transaction involving saber. you look back at that now both of those companies may be very challenged businesses. >> they could be we all hope the travel industry will be back in force once we're on the other side of this

pandemic saber is a good example. that's where we made a filing yesterday to vacate the lower court's opinion which was wrong on one element facts may change as they always do every situation will allow us to look at the same standards the antitrust division, i think people can take comfort. we don't stick our heads in the sand and assume we'll apply blindly a particular standard again in the way of business i think we're all challenged to work together to make sure that we're getting out of this and get the fastest recovery for the economy. >> thank you a privilege to talking to. we wish you lots of luck and you have a fascinating job in the middle of all this right now thank you again. >> becky, back over to you thanks, andrew when we come back we'll talk about house democrats new bid to

double the amount of money the u.s. has spent to get through the coronavirus and why republicans are not impressed. check out shares of gilead sciences they struck deals with five makers for production of the drug remdesivir. 127 countries not including the united states. a reminder you can always watch us or listen to us live on the cnbc app stay tuned, "squawk box" will be right back hey! lily from at&t here.

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>> reporter: rick santelli live here in chicago. our april read on from ducer price index down 1.3 almost three times the expectations and, of course, it's a record. the series was changed, revamped, altered in 2009. nothing has been anywhere near

that the lowest we've seen is down.6. strip out food and energy it's down .3. we look at ex-food, energy and trade it's down .9 let's look at final demand a headline year-over-year number is down 1.2 versus the month over month which is down 1.3 and if you strip out year-over-year food and energy it's up .. 6, -- -- up .6. why? because you're going all the way back looking a year back and if you include trade on the ex-food energy and trade it's down .3. nothing really shocking with these data points of coerce cpi is a little bit more relevant to traders close own the pipeline to the ultimate end user, but this is still very important data especially for the federal

reserve. don't think they need to worry about inflation any time soon. jay powell coming up at the top of the hour and everybody wants to know how he'll deal with negative rates will he say it emphatically. will he say it behind closed doors? these are very important things we want to hear. andrew, back to you. great. thanks, rick appreciate it. we'll get over to steve liesman who joins us with a little more as well. steve? >> reporter: thanks, andrew. yeah the big decline in energy showing up in a big way in this report what you have is you have massive deflationary forces right now coming from a lack of demand all around the world especially in energy but also in other products what i have not seen, and i think is interesting here, any of the detail in the cpi report a little bit yesterday or ppi report is any of the inflationary forces that would

come from supply shortages you have to imagine some things are in short supply that are needed and you're not seeing any of the offset at all you have these massive declines minus 1.3% on the headline and ex-energy minus 0.3. maybe that's part of it as some of it is being pushed down as i look at the pipeline, i don't see much inflationary pressure either. that's the story that gives the fed some leeway to possibly,to keep the foot on the accelerator. but also it creates an issue which is that does the fed need to start taking action now to avoid outright deflation in the economy. andrew >> okay. steve, it's going to be fascinating to hear what mr. powell has to say about all of this in just a little bit, and i think we'll all be glued to it and looking for your commentary

as well. so thanks so much. i'll send it now to becky. okay, andrew thanks when we come back the new fight in d.c. over potentially trillions in coronavirus aid is the federal government done fighting the virus financially at least for now we'll find out right now as we go the break check out nasdaq the ticker is ibb. broke a six day winning streak yesterday but after it hit an all time high and this morning it's up another 1.1% reminder for you make sure to check out our podcast squawk pod. get the day's top interview, analysis, all the things we say to each other in the commercial breaks much, much more. you can sub describe for free wherever you get your podcast. we'll be right back. this is decision tech.

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welcome back to "squawk box" the futures this morning, actually the dow has taken a turn into negative territory it's down by eight point

we had seen it up by he 80 points maybe a little more earlier this morning. s&p 500 is still up by 2.5 points nasdaq up by 41. market waiting to see what happens, what fed chairman jay powell has to say. that's coming up in about 24 minutes time andrew >> thanks, becky house democrats unveiling a $3 trillion coronavirus relief bill in an effort to deal with the ongoing economic and health effects of the pandemic. eamon javers is in washington this morning with the latest on what's inside that bill and whether it's going to go anywhere >> reporter: yeah. good morning, andrew those are both very good questions. $3 trillion is the size of the bill 1,118 pages overall. the size of the bill is the controversial item with republicans in the senate looking that and saying it's simple lie too big too soon. we'll see where it goes. what's in it

start with the big ticket item, trillion dollars in aid to beleaguered states you heard andrew cuomo in new york complaining about that. states can't print known fed can. they need to fill the hole in their budget this would go a long way to do that in there a second round of direct payments to individuals $200 billion in hazard pay for essential workers. $75 billion for testing and contact tracing related to the virus and $175 billion in housing assistance nancy pelosi was on "mad money" with jim cramer last night she said this is the opening bid here take a listen. >> this is a negotiation we think this is what is necessary to need needs of the american people. state and local. testing, testing, testing. and putting money in the pockets of the american people all of these provisions have prominence in our former four

bills that passed in a bipartisan way all of them are supported by democrats and republicans across the country. >> reporter: now republican leaders in the senate and at the white house have said they want to see a pause here in any additional aid as they digest all of the trillions of dollars that have already been spent on aid to the country to figure out what's working and what's not working. nancy pelosi says she doesn't apartment pause, she wants to push ahead she's going to hold this vote on friday in the house of representatives. we'll see how the white house reacts i can tell you i talked to people over at the white house who say ultimately this economic crisis is getting worse day-by-day there's a real sense of urgency to do something and we'll see whether they agree that any of the things on nancy pelosi's list are things they think ought to be done andrew. >> okay. >> after a took a listen joining us now his take on this

latest proposal and what it will take to get the country back on its feet financially ohio senator rob portman, great to have you on the show again, senator. we want to keep doing things we want to keep helping people the democrats just going about it in the wrong way or is there some merit that was the first offer, dead on arrival some things we need to do and republicans would be willing to work with democrats on >> well, of course there are joe, there is $3 trillion. this is more than the last four packages combined. and i want does nothing as i see it to help get the economy moving and that ought to be part of at least our proposal next time is to say let's not just of a another rescue-package which will be needed but let's do some things to move this economy forward and that's traditionally tax relief, traditionally things like spending on infrastructure, smart spending where you can create jobs and get the economy

moving instead this goes in the other direction. it's not only $3 trillion that's more than we've already spent in four packages at a time when our debt and deficit are at record levels but it's not helping the economy. ate wish list. there are things like salt relief for those living in new york you might like that 50% of that benefit on salt relief, this is for state and local taxes will go the top 1% this is something that those state snirenators have been pushing. let's close some gaps. but let's move on to get this economy moving again i don't see that in the bill >> you after trade representative foop ittoo. it's a political hot button whether we say you discuss the origin of the virus, but if you at least admit that maybe

initially china wasn't forthcoming enough with all the details about what they have and now we're in this position, i mean people get a lot more strident about what they say china did. but either way, do you think we need to let this affect the recent trade negotiations, huge trade negotiations should we go through with those first and maybe consider this later after the globe starts recovering from covid, or do we never do anything? >> well, the trade negotiations we have ongoing with china right now are in our interest and the global economy interest because it levels the playing field between the united states and china in the case of a huge trade deficit. one, we ought to be sure that kind continues to implement phase one which include by the way buying more of our products including agriculture products which need that market right now badly because prices are low but second, we have phase two that we're supposed to be negotiating which is also

fundamental because it gets at the issue of chinese subsidies including their state-owned enterprises which just don't damage the u.s. economy but damage economies around the world. trade negotiations going on right now, completion of phase one and moving on to phase two as china has promised and they need to make their commitments on these those should proceed, of course. the question is where do we go from here. there's so many issues i spent a lot of time looking at china taking our tshlechnology, military, economic back to china. we had another example of that this week when an arkansas professor has been arrested allegedly again engaging in these chinese programs without divulging it fraudulently taking money from the chinese this is taxpayer money going out the do the research and china is taking that research they've done it for 20 years it helped fuel their economy and

rise of their military we need to cut off things like that and we need to look at the supply chain we need to bring more onshore to us of essential products whether pharmaceuticals or protective gear, the gowns, masks and so on, we need to be able to rely on it and therefore it need come back to the u.p.s. >> how do you think ohio and governor dewine are progressing in terms ofre-opening the state? i got a lot of relatives still back there, senator as you know and i thought dewine has his popularity is up some of my relatives are like, they think it's taking too long, maybe and that the time that he's talking about has been pushed back too far. it's a microcosm in the political debate how do you think dewine is doing in terms of opening -- trying to get the economy back open for people that aren't working

>> i think he's doing a great job. er with re-opening so on friday we were re-opening restaurants for outdoor dining as an example. factories up and going offices are back at work construction is going again. so i think it's smart because we're doing -- we're re-opening in ohio as we bring on more testing, as we have more previous gear and seeing remdesivir and more antiviral medications. those are the three big things we need to focus on re-opening is smart being done in proper phasing in ohio because we're doing it right we won't see this resurgence will we have hot spots probably that's why testing is spore. contact tracing and all that is what you throw at a hot spot and stop the spread of a virus i think we're doing about right in ohio. nobody knows what's right as we heard yesterday. experts are all over the place reality is we got get back to work we got to get back to a normal

life and do it safely and those two things can to be done and we're doing it in ohio >> senator, i had a couple of questions for you. one is as one part of that bill which i know you have questions about, but as one part of that bill there's the intention to extend unemployment benefits through 2021 given the remarkable efforts that the fed is pursuing to help businesses and also so much of the previous stimulus effort my question to you would you be an advocate for unemployment insurance to help people into 2021 >> andrew, that's an example in this legislation of something that will hurt not help the economy. that's how i feel about it the additional $600 federal benefit is on top of an average of $360 that the states have meaning in our states right now if you're making say 50,000 a year it's more advantageous to be on unemployment insurance than it is to go back to work.

so was it notices do something to pump up you or i? absolutely the level we took it to make it difficult for small businesses in ohio and around the down bring their employees back in some states they say they will enforce the rule you have to seek the work so if there's a job you have to leave ui employers don't want to do that to their employees we need to put together a package let's continue to help people but how about having a bonus for returning to work. so instead of an additional $600 of a federal benefit, again almost twice the state benefit that's currently in place, in places like new york it makes it very difficult to get people back to work if they are making more in unemployment than they can make at work why not provide a bonus to people and say if you go back to work you can take some of this unemployment insurance with you if you take 450 with you per week that means in every state

from minimum wage workers more advantageous to go back to work than just stay on unemployment insurance. that $450 would go back to you and your workplace between now and end of july when this unemployment insurance runs out and this would give us an incentive to get people back to work it would help the individual workers who many want to get back to work >> senator -- >> but not to continue this until next year. >> what do you tell the person who is out of work who doesn't have the option to go back to work because the job that they had no longer exists the economics in business don't work any more. >> right if someone is out of work through no fault of their own they can't go back of course they should get unemployment insurance. we extended unemployment insurance another 13 weeks we provided it for people who

are self-employed. that can all continue. but the point s-andrew, we should all want information go back to work that ought to be what we're doing here in washington is trying to help the economy move forward. not to encourage the economy to remain stagnant and to encourage people not return to work when they are need. i hope you're talking to employers out there about this because i think what you'll hear is a consistent message which is now we're going re-open but having a difficult time getting people back to work who are on unemployment insurance for good reason. if you're making in new york about 55,000 to 60,000 bucks a year it's more advantageous to be on unemployment insurance why not provide a bonus to that person if you did 450 bucks to workers they will get their salary plus that it's great for the taxpayer saves the states and the federal government just back of the envelope calculation about $45 billion just between now and the end of july. $45 billion and helps the

workers because again they are getting the bonus plus their salary gets them back to work it won't work for everybody because there will be some businesses that won't be able to re-open as quickly but those that are re-opening are looking for workers. we should not be standing in the way that we should help to facilitate that i think this is a bipartisan proposal which has promise, rather than in the house bill which will make it harder for our economy to get going >> senator, i love that idea i think it's fantastic it has the added benefit of rewarding the workers on the front lines, the minimum wage workers going in and going to work when so many other people get to stay home and work. how much support is there in the republican party for this? it's not cheap you're still talking about paying people $450 a week, it's not the $600 a week they would be making on unemployment alone, but how much support do you have from democrats and republicans on an idea like this

>> i think a lot of people are looking at this for the first time people are intrigued by it the alternative is unacceptable because, you know, again, we need to get people back to work and encourage that yet wewant to be sure to help workers. i think it pairs nicely with what the president was talking about in terms of a payroll cut. those workers who stay on the job will get a payroll tax cut i think it's important for us to do things now in washington that rewards workers, rewards work and moves the economy forward without getting more revenues into our hospital and our universities and colleges, without getting more revenue into the federal government to deal with our unprecedented level of deficit, we're not going to be able to turn things around that requires us getting the economy moving again that should be our focus here. how in a smart way to help ensure that we can get this economy up and going again safely and that includes getting people

back to work >> senator, the question i would ask you -- i want to get people back to work as much as anybody, but i would also advocate what you just said at the end there, we all want to do is safely. there's lots of people out there who don't feel necessarily their employers have set up a system now to do it safely. there's other people that are either a particular age cohort or have underlying conditions or things that may not be able to go back to work or may not feel comfortable going back to work there's a real question of trying to find a balance between getting people back to work in the safest possible way -- and i remind you, even dr. fauci says we don't have the testing in place, the tracing in place, none of the things you would want in place to set this up so we are somewhat doing this more blindly than i think anybody would want to. therefore the question is what kind of protection should we put

in place for citizens in this country at a time when we're providing all sorts of insurance for businesses >> yeah. andrew, look at the guidelines the guidelines set up by the state of ohio and cdc require these businesses do this safely. you do wear face masks when you're on the factory floor. you have hand sanitizer available for everybody. you do temperature testing as you walk into the office building these are measures that are common sense that should be taken. social distancing continues at work i couldn't agree with you more you need a safe workplace. in terms of testing, in ohio, compared to two weeks ago, two weeks from now, we'll have a 600% increase in testing ohio is not every state but that testing is ramping up around the country. one thing i do support in the democrats bill is more testing and contact tracing. that's smart that helps us reopen the economy in a safe way and keep it open

as i said earlier, throw everything at it in terms of testing and contact tracing. the antibody test is great, too, but it doesn't replace the need for a diagnostic test. i think in hursi ingnursing home should be testing more frequently there's ways to get at this and open the economy that's smart. i would rather spend the money on more testing than going in to rescue more testing will result in more economic growth because it will get people safely back to work that's money well spent. dr. fauci also indicated testing is increasing. so are these antiviral medications. remdesivir is the first. i hope many others are effective. i was told yesterday that was coming third, you have to have the ppe and finally we're getting control of that. we have masks available around the country. they can be recycled, decontaminated quickly we have 4.5 million a day

capacity on recycling. we have more gowns here. more gloves. so all of this is important. it should be done in conjunction with us beginning to get people back to work and getting back to a more normal life >> senator portman, thank you. i guess 5,000 a month ubi is out of question for you at this point. thank you. appreciate it. >> virtual baseball, joe the reds are ready to go >> finally the bengals get a quarterback and it's during this mess any way, there's always the other side to look forward to >> they'll be on the field >> all right >> may not have fans, but they'll be on the fan. >> how can you tell the difference no that's wrong the that's really wrong. any way, andrew? >> thank you, senator for the great conversation. when we come back, we'll gelk markets and a hedge fund

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welcome back joining us now is the former vice chairman of investments at invesco what do you think we should expect to hear from chairman powell >> i think chairman powell basically has a consistent message, which is they will do whatever needs to be done to make sure we come out of this hole so far they have done an extraordinarily good job they have unfurled everything they could over a short period of time and they continue to add things to it they will start buying corporate bonds and they're doing

basically everything they need to do. >> what should that mean for the markets? is this something that will push up market prices for some time to come? >> no, i think without the fed the market would not be where it is i think the markets are already discounts that commitment from the fed. i think for them, for the markets to blow up on the back of whatever he will say, it's going to take more than what they have done so far. i think for the markets to go up, we have to continue to open the economy and not have a flair up have a reversal somewhere. as long as that is the case, the markets will probably continue to make progress >> great to see you. thank you for your time. we'll hear from the chairman coming up in a moment. that happens right now "squawk on the street" is next

good wednesday morning this is "squawk on the street. i'm carl quintanilla with david faber and jim has the morning off. you'll see him tonight powell set to make some comments this morning we'll go there live. the futures coming off off the late-day selloff let's get to steve liesman with some of powell's remarks >> good morning. jay powell will say that the path ahead is "highly uncertain" and he sees significant downside risk to the outlook. he is concerned about a prolonged recession and a possible weak recovery if the government doesn't get the stimulus and the relief correct. he says additional relief may be needed beyond that what is already done concerns that liquidity problems could turn in solvency problems. policies should address a range of possible outcomes additional fiscal su