investors have doubled reopening america, the wisconsin supreme court striking down the stay-at-home order and others taking early steps. one major beef supplier cutting meat prices to keep burgers and stakes on the dinner table. thursday, may 14, 2020 "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc been watching u.s. equity futures. they are not telling much of a story now. dow has gone up about 15 points to down about three points now s&p down nasdaq up about 27 points but the real story is waiting to see

what happens after yesterday's big move the dow down yesterday by 2.1% the dow's worst performance going back to may 1. a lot of this was happening as we were getting comments not only from stan drunkenmiller and dave tepper talking about his concerns about this being the second most overvalued market he had ever seen. comments from fed chairman jay powell all of those things adding up saying what do we need to worry about and where do we need to be concerned? >> watching the treasury markets, you will see the yield for the 10-year right around 0.61% so that is with a little more pressure. watching wti this morning, you will see that is up about 5% i think it is 2r5iding near

session highs of $26 a barrel. andrew thank you. every day, we have a huge show another big one this morning what is on the lineup this morning. the ceo of verizon, new york times, mohammad el-eran to join us and eric schmidt who will be working with the governor of new york states and work places looking to him and that group to understand where it is all headed hedge fund manager david tepper saying the stock market is overpriced. >> caller: the market is pretty

high the question is has there been differential o different allocations in the market the market is by anyone's standards pretty full. then again, there is a lot of liquidity there, the fed is still there. it is too hard to say the market can't go up or something like that but it is not a very good risk reward market. >> saying some big tech stocks like amazon, facebook and others will be fully valued he said airlines will be difficult stocks as long as they are keeping middle seats open. yesterday, i was watching. powell was pretty somber between three and four, i got nervous. 500 was not the low. it was 700 and falling the day before, earlier this

week, remember, the close after we watched fauci talk about a bridge too far actually where we are going to do a story about richard burr. remember, we did a story i messaged you, he grew a beard. he's the guy who sold all the stock. that didn't work people remember that he's the guy. so 700 and 450 has an drew's doughnuts looking much better. this is not a frivolous bet. there are serious things happening in the country it was on may 1 -- >> i don't want the doughnuts. i prefer to lose >> becky glomed into this bet. she thinks she's getting a

$2,000 hypoallergenic dog. i said what do i get she told you, you don't get anything has not how bets go. >> it is when you bet with a woman. >> i have a 14-year-old preowned dog for you. we have to work on that. andrew, your doughnuts are -- i'm not convinced yet. what is the date the 14th i was up 80 s&p points and yesterday, it looked like we were going well below 2,800 on the s&p. my tacos are -- i can afford my own tacos, by the way. here is what i'll say. i was much more sickened on may 1 about the prospects of this

whole world and we are down from there. i think the jury is still out. still only dropped 1% since that day on the 14th with all of the swirling things going on do you see what i'm saying we should be testing the lows again, basically maybe we still will. >> i know becky has to talk about tepper's comments and jay powell's comments. the other comment is the world health organization suggesting we might have to live with this forever, meaning we may never get a vaccine. if that's the case, this whole thing becomes complicated. then you have bill miller say, if you are betting against airlines, you are betting against a vaccine. there is a real question about that do you bet against the vaccine

or not >> i don't agree with the w.h.o., the w.h.o. he's been trepding a lot because people with asking about the w.h.o. you heard dr. scott gottlieb we've seen immunity with people who had the disease. we are seeing immunity and a response that makes them recover. they expel the virus and it is gone by definition, it should be possible to bring that same immunity with a vaccine. also saying we won't have a cocktail of some type of vaccine. i don't think i would listen to anything the w.h.o. says at this point. let's wait

that's truly a worse case sk scenario >> just saying those are other things on the mind at the moment >> if the market goes down another 500 points and we never reopen the economy >> even if you have a vaccine, that's a different story andrew, back to bill miller's comments on the airlines, i completely respect miller. if you think that airlines are going to come back at some point, that doesn't mean they'll come back in the same iteration or that there will be more damage done. there will be two or three more happening. that doesn't mean airlines will be a great business again.

there are so many planes and so much capacity. the world was flying at incredible rates it will take time before you see that pattern return. not that it is just there. the airline industry will come back it is a question of what sort of damage is done along the way >> i hope so >> i can't drive everywhere. taking a new shot. people keep telling me to get a treadmill. i'm getting a treadmill. that's not true. send in a picture of yourself there, fatty >> you should stay off twitter yesterday tepper's comments. after jay powell warning

policymakers might have to use different weapons to the economy. subject to significant downside risks. one weapon that isn't in the arsenal is negative interest rates. >> we chose not to implayment negative interest rates and we focus on forward guidance and asset purchases. we intend to continue rolling on those tools which are tried and they are now a part of your tool kit. >> president trump disagreeing with powell saying he still strongly believes the fed should have negative interest rates but his tone was a little less toxic than we've seen in the past against the fed chair that he appointed. andrew meantime, i want to tell you about the wisconsin supreme

court because it struck down the state's stay-at-home order as unlawful, invalid and uneven forcible saying the decision was a result of a lawsuit brought by the state legislature asking the court to grant relief in the rule making process. saying their local stay-at-home orders will remain in place but you you are seeing lawsuits like this throughout the country and all sorts of other suits i don't know if you saw, there was another suit out there a court striking down the sba and their ability -- there are certain types of businesses that are limited and not supposed to get pay outs of ppp and pay

outmon payout money like strip clubs. there are lawsuits about this and other things becky? >> did you see, i think, the washington post said the aspen institute like millions even though they have a big trust fund set up. the stash that they have on hand technically, it is okay but that is the type of thing that will draw negative attention. >> this becomes the question, what are we trying to do here? trying to keep people -- is this a full employment program? can you pick your winners and losers >> i don't know, if harvard should have to give back the money, i can't imagine aspen

shouldn't. >> i struggle with it. >> really? >> the question is, what is the intend and how it crowded out others because it was a first come, first serve program. >> if you have a limited amount of money and taking that money anyway companies that have access to the public markets universities with big endowments, i would lump aspen institute in with that no >> by the way you could look at lincoln center, all sorts of not for profits out there that, some have, quote/unquote endowments do they pay for everything this is why it is tricky on all sides. it is hard to figure out who should get the money and who shouldn't. the worst thing about it is in

truth, the rules are not clear even this lawsuit with the strip club has proven even rules set up may not be legally binding. we'll see. >> what is a hotel going for in as sp aspen, that's a sorkin spot. >> their main location is in d.c. >> picking its name is a pretty good spot. that's your spot you are not a copper mountain. you don't slum with the normal people out there >> i'm a utah guy. >> because of the snow or the amount of shredders out there?

>> both. >> becky's husband is the type that tears up the mountains. >> we can only hope we can go skiing again >> we got to go. when we come back, president trump taking issue with dr. fauci's warning to congress and reaction from dr. gottlieb futures are under pressure in the last 10 minutes. the dow now down to 71 off about eight. nasdaq up about three. back after this. feed a healthy lifestyle, with pure protein. high protein. low sugar. tastes great! high protein. low sugar.

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news out of washington, president trump taking issue with dr. fauci's testimony here is what he said about the warning about reopening states and schools too soon >> i was surprised by his answer actually because, you know, it is just -- to me, it is not an acceptable answer, especially when it comes to schools >> here is what the president

said when asked if he agreed with fauci's concerns. >> he wants to play all sides of the equation i think we are going to have a tremendous fau tremendous fourth quarter and transitional third quarter and i think we are a country ready to absolutely have one of its best years >> joining us now to talk about this, dr. scott gottlieb former fda commissioner, cnbc contributor. i'll ask you the same question the president was asked, do you agree with dr. fauci's comments? >> i listened to dr. fauci, i think he was answering the question about opening schools in time for a vaccine to be available. a vaccine won't be available in the fall it is too early to say whether we can reopen the schools in the

fall it is not how the comments were implied ba implied based on my understanding of what dr. fauci said we'll have to see in august whether this is still spreading in july and august what we should do in september >> there is some reports we could be seeing a new hot spot in texas and some other states, what are you seeing? i any some has been positive elsewhere, there are more challenging spots? >> that's right, when you look at the data, you see steady declines across the united states even, when you exclude the new york region, you see steady declines i put out some of this data, you are seeing sustained declines. that said, you are seeing some states where cases are rising and hot spots within those states minnesota, nebraska, missouri,

alabama, wisconsin, district of columbia, kentucky, tennessee and texas, those states you are seeing cases rising. this is what we're likely to see even as the country comes down the curve. there is likely to be localized hot spots with outbreaks and states where you are seeing cases rise as the rest of the country starts to fall there is a diverse nation and different states doing different things and taking different risks. >> a piece in the new yorker, the tool or chairman of haven, the health insurance program put together by berkshire and jp morgan along with amazon looks like he's gone to chairman he talks about n 95 masks being the single most important thing

that could be a game changer when you are wearing a regular mask, you are protecting you from me and when you wear an n95 mask, you are producting yourself if we could get everybody an n95 mask to wear ever day, it would be a true game changer how far away are we from that happening? >> i don't know what the supply of personal protection equipment looks like right now my guess is that whatever comes in to the market with respect to the masks is that is it even going to be stockpiled at the state or federal level for a while. for consumers to get access to masks will be limited. the kn 95 masks are coming in or the ffp 2 mask which is a

european equivalent. the fda has published some of the kf 95 masks. no question that the masks do afford a level of protection consumers are better off wearing than not wearing a mask. the more protection the mask, the more protection they'll derive if you think about the cloth masks, a lot of them are meant to protect people from you they don't provide as much protection to you. the kn 95 masks are protective to the individual. >> the skoul opening has become sort of a met fohe for for the

economy. if you don't have the schools open, you can't get people back to work. the teachers that are 60 to 65 are the at-risk group but kids in general are at far less risk. now we are hearing evidence about could yokawasaki and immu issues now we are talking about bending the curve or whether we are going to shut down the country until there was zero cases of covid-19 again right? those are the two sides. the side that wants to reopen says, look, we never said there was never going to be another case of covid-19 we said hospitals are not

overwhelmed, we'll look back and see that point do you think the schools should open in september? if they don't, the economy is not open and you are back to how many people will have major problems not from the virus but from not having a job and not going for medical procedures >> the decision about schools should be made locally if the disease is epidemic within a state or community, the decision will be made to close the schools. i don't think this is a national level with what we do in the fall this comes out of learning we have with the flu. when you shut down the schools in the flu, it shuts down the spread of the flu. we don't know what it is with coronavirus. we do believe kids are getting infected but we don't have data

to suggest the rate. there was a study that showed that kids probably have about the third of sustain septemberibility than adults kids are getting infected but at a lower rate than adults part of this inflammatory condition does appear to be correlated because of the rising instance we don't know yet whether there is true coral relation. the evidence is suggested but we haven't been able to prove that yet. >> before we let you go, what would you do with your own kids? >> it will be based on what is happening in my own community. i continued to send my kids to

school through february because we didn't have a local outbreak. once we had a local outbreak in my community, the schools made a decision it is too early to say what schools will do in september we should attempt to reopen schools if this isn't spreading widely >> dr. scott gottlieb, always a pleasure to spend time with you. we look forward to seeing you tomorrow thank you. ly -- i will point out i read an article that kawasaki-type disease is up 30% in an italian province a warning to tesla employees that don't want to come back to work we have that story next.

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confident financial plans, calming financial plans, complete financial plans. they're all possible with a cfp® professional. find yours at letsmakeaplan.org. welcome back tesla's head of hr issued a

stark warning to waecalifornia employees, if you choose not to work, you could lose unemployment benefits. if you choose not to return, you could be unfurloughed. musk reopened the facility earlier this week in defiance of local orders there were reports that some of the employees being asked to come back being told if they didn't or were unable, they might lose these unemployment benefits this is a larger issue across the country, especially for people at risk being asked to go back to work and how they are going to be dealing with that and sometimes uncomfortable conversations taking place as a result >> i think tesla's response was to blame the state >> elon will have to come up with a good answer

a lot of people in that tribe, the reopening tribe see him as almost a hero in what he's doing. i don't know how long he could say you are going back to work whether you want to or not and maintain that sort of hero status how do you thread that needle? i don't know that's a tough one >> we'll speak with a congressman in california about this later too >> you are hearing this not just as a tesla story but across the country. businesses that want to reopen are calling their employees. some employees are gung-ho and feel like they can do it and others are morris being averse and maybe in a category they shouldn't be doing it and then there is pressure to do it it is a push pull. for a long time.

>> the truth is, we just don't know enough about this virus, what underlying issues could create this or cause this. there are so many questions. i've read questions maybe there is something genetic in the reaction which is why you see so many in one family die it creates a fear factor and how do you decide what is right and what's not it is hard to set the rules on it you guys are speechless. we'll move on. amazon will stop offering employees hazard pay and reverse to regular pay after this month. as the covid-19 pandemic led to a boom in business this is risky. if you end it before it looks like we've come out of the other side of this amazon is particularly in the bull's-eye when it comes to

washington regulators and more, i thought the move amazon made where they said they weren't going to be profitable because they were spending so much more on them and safety is a smart one. but if you are pulling back from those too early, good luck >> amazon is in a pretty good position on all of this. why we said they are sharply higher you don't have that delay, you don't know we are not talking for like 10 seconds. it is impossible it is tough. >> i don't have a delay with you. i hear you instantly andrew and i have a delay between us >> i don't know if that's good or bad look at cnbc how they are very sensitive to how we feel about coming in. you are there. i heard andrew is ready to come back any time. i can take off a week if you

want to come back in here. i saw you tweet that any time. you ready to come in here if i take off a week. becky, you said you didn't want to because of cooties. >> no way. i'm staying here >> it is good to be here i didn't know you are ready to come back. where the hell are you right now? >> you know we are in connecticut. the issue for all of us is not about the nasdaq can we all sit at the table together that's what we want. at least i want. maybe you don't want we can all sit at the table. >> speak for yourself. >> did you see the shot that shows the covid-19 ha i've gained i'm doing that do you like this shot better they changed it. i told you not to change it.

they like this shot. i'm sacrificing my own self-image this bald spot here. >> i have to say, particularly when i'm doing my own hair, i don't want a steady cam coming behind me. >> i'm showing all my rolls. the covid-19 >> andrew taught us that >> he doesn't have that. he has that covid minus 1 because of that hallow leg >> looking forward to those doughnuts. >> you can have them we'll be talking about the surge in weight -- sorry the surge in retail activity. that's coming up next. these days, it's anything but business as usual.

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u.s. equity futures down trying to rebound. it was a tough session yesterday. not as tough as it looked like it could have been around 3:00 when it looked like we were going to go down around 700. we came back a little in the final hour we'll see what happens only temporary retail investors have doubled their trading activity

on line brokers site people stay ing at home. >> some of the popular stocks were tesla, apriling, beyond meat, microsoft and sticking with american airlines and delta. speaking to our guests mike santoli, cnbc market contributor. you are saying some people are buying cruise lines as well that would seem they are totally buying value i saw something from paulson saying growth stocks were outperforming right now. where is the interest? >> what is interesting on the cruise lines i'm seeing buy for indicating buying some like dow stocks like the

apples, exxonmobil the cruise line and airlines are interesting. it started with the millennials buying first the airlines, our clients are a believer in that story longer term we've seen american and delta where our clients longer term believe people will get back to travel this is a trade if you are making it, you better have a longer term horizon. i don't see us ramping up right away we've all seen pictures of super crowded flights buts that because there are so few flights. that one is interesting. and talking about what is your time frame that one needs a long time frame. beyond meat, around earnings, et cetera, tesla, fell out of favor for a little while our clients had been right back

at it the best few weeks i don't know if it was what you were talking about earlier the back to work or the expectation of meeting what they said they could do >> santoli, you were watching yesterday i'm sure between three and four a lot got thrown at the stock market yesterday starting with drekenmiller and throw in tepper and cherry on top with powell's comments when we were down 700 -- remember there were a few days when we were down triple digits, more than 500. did you think that was a possibility yesterday as far as a quick retest of some of the lows >> no. i think it is interesting we can even be talking about, does this

mean we are down 2.5% a day on a typical market environment, we don't talk about that. >> on the way. we could get where we are trading lower. >> i'll take it in steps this is the fourth or fifth pull back since april the other two were picked up pretty easily. it does seem like there will is a shift and pull away from the mood in opportunities pulling away from hazards and all of those things you are talking about. what is interesting, we've had weakness in banks and energy in many days, the nasdaq 100 stocks were up for no particular reason and holding the index yesterday, they pulled back and

exposed a weakness we closed above 2,800 and above the levels before david tepper started speaking and by the way, his comments were not trying to knock the market down. he was saying, it looks like you have an edge all of the stocks carrying the indices, it is hard to feel like you have a read on something that could change the script from here. >> worst over valuation since 99 didn't sound too good joch >> looking at the nasdaq 100 with the earnings. >> if you've got zero earnings, like the fed, almost like infinity anyway, do you have a feel whether we are just in a range here or do you think we break out one way or another near term >> i thinkmichael was pit on

holding the 2,800 that was important, joe what you did see quickly, you and i talk about the vix it popped back up higher near 36 now. it should tell you we have a little rougher road. i think people have this expectation we are going to go straight up and that the worst is over. some of the biggest tests are coming as states get back to work how quickly can we ramp up there has been so much optimism about things coming back together quickly i think we are meeting reality here >> if someone put a camera off to the side or behind you, would you accept that shot you seem you are like me, would you say why is it necessary to take that shot that shot. >> i'm actually okay with it

my son cut my hair the other day. i'm high and tight i'm okay with that >> i don't know. what are you looking at? >> sorry, joe. >> santoli is fine he wears that jacket i don't know what he's hiding. andrew when we return, more on the impact of the pandemic and which parts of the economy were hit the hardest. we'll talk about that when we return every financial plan needs a cfp® professional --

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still to come, the great pandemic originally seen as the great equalizer has t nohit the economy equally. some saying it has hit women more than men. more after this.

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welcome back, everybody. the economic fallout of the pandemic has hit women disproportionately hard. cnbc contributor joanne lipman writing that the pandemic may cause a she session. that could impact diversity. let's bring in joanne lipman she is a distinguished fellow at princeton. great to see you. >> great to see you, becky thanks for having me >> this is not just a theory this is borne out by the numbers. women were 55% of the people who were laid off since this all began, right >> that's right, and it's not only women as a whole.

if you look at the different groups of workers in the different age cohorts, there's an especially huge differential between men and women at the youngest ages, from 20-24, at the older ages, over 50. women of color also is a huge issue. and a big piece of it is that women are over represented in the industries that have been hit the hardest. we're talking about things like hospitality, travel, restaurants, child care. and they also make up more than 60% of the lowest wage earners and then there's this added wrinkle, becky, that i think you know well, i know well, which is that women, it actually does fall on women disproportionately at home during this time period, the home schooling, the cooking and the housework, et cetera, the child care and these are all issues that my concern, i will tell you, having worked in this area for a couple of years now, is that these

losses will be sustained and there's actually -- there was a white paper that came out recently that came to the same conclusion, that these losses will be persistent and they're not going to come back the reason being that the reason we have seen gains from women, by the way, i think you know this, earlier this year women had for the first time were the majority of the work force the problem is that what we see is that the reason that we made so many gains is because there was such a tight labor market and unemployment rate was so low. and once you have a high unemployment rate, a lot of these diversity efforts just go out the window >> joanne, i think you're right that these losses could be permanent, particularly because of the industries that were city hit so hard in this situation, but you've got some thoughts about how we might be able to fix some of that we were talking earlier this morning that if the schools don't open back up it makes it really difficult for a lot of parents to go back to work, and

that includes of course a lot of women, working moms. what could we potentially do on that front to help >> there's quite a few things we can do we have to act now for example, we talked about the schools, but we're not talking about so much is day care. as anybody who knows who's at home right now with their preschoolers, if you don't have day care, you cannot go back to work currently, you know, you were talking earlier about tesla where elon musk said if you choose not to come back, you don't get unemployment benefits. well, there are a lot of parents, and mothers in particular, there's more than 11 million single parents out there, the majority of whom are women, if they don't have child care they can't go out so i think we need to look at when we're looking at the federal stimulus programs, we have to look more carefully at child care can we support child care? over the long term is this something we need to think about federally funding or federal subsidies the way that we do for public schools we also need to think about things like paid leave -- paid

family leave obviously is something that's been percolating for a long time. i think we see now more than ever how important that is paid sick leave. i mean, paid family leave is something that every other industrialized country in the world has except for the united states i also would love to see some guardrails put around how we invest in companies. so goldman sachs we know took a very baby step last year that they got a lot of attention for, that they're not going to take your company public unless you have one woman on your board, but why don't we extend that why -- let's have some other -- you know, why not we're not going to invest in your company unless you actually have he can witdable pay, for example, unless you have equitable family leave, for example i mean, the fact is we're not going to get this economy back on track if we sort of ignore half of the working population >> joanne, just a policy

question >> yes >> i'm usually very sympathetic to your cause in this fight. in this particular instance, and i think you said it, because of the way the industries that were most impacted, i think this is a ramification less of the implicit bias that's in the system, though i don't want to suggest there isn't, you go back and look at the financial crisis of 2008, by the way, it disproportionately hurt men, oddly enough, for whatever reason the question i would ask you is we can do all the things you're talking about, but that doesn't necessarily change the dynamic in these particular industries in these industries do you want to change the mix of gender? is that one of the things you're saying the other piece of this is you look at people who have college educations, don't have college educations i mean, that's where the true mass gap is in terms of who's being -- who's been hurt by this >> right andrew, you're making fantastic

points i completely agree with i think the issue is we are not paying attention to the very basics professional situations, we have to actually make -- we have to allow women to be able to go back to work, right? at this point we're in a situation where there are a lot of women who, we talk a lot about the people whose health is compromised, how hard it's going to be for them not to go back. what we're talking about is this part of the population that doesn't have the access that they need to be able to go back. we're seeing that as strongly as ever joanne, great to see you thanks for your time today >> thank you you should be mad your neighbor

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markets on edge again this morning over renewed concerns about reopening the economy. those worries coming after fed chairman jay powell's dire outlook on the road ahead. we've got reaction straight ahead. keeping people connected during the pandemic. verizon ceo hans vesper talking

to us. president trump voicing frustration after dr. tony fauci warned against reopening schools and businesses too early we will speak to "new york times" columnist tom friedman about what needs to be done to get america up and running the second hour of "squawk box" begins right now good morning, everybody. welcome back to "squawk box" right here on cnbc i'm andrew ross sorkin along with becky quick and joe kernen. take a lack at u.s. equity futures at this hour things have moved around dow looks like it would open down 24 points, 25 points. a little bit better before at one point it was better than that s&p 500 off about a point and a quarter, a point and a half. the nasdaq looking to open up about 7.5 points we have a lot to cover this morning and a huge lineup of guests on the roster this hour we will be talking to

b of a's ceo we'll be talking to the ceo of verizon and tom friedman and mohamed el erian we're going to talk to former google ceo eric schmidt how to get the city and state back up and running. >> liesman's picture should be up there because he's up now investors grappling with down beat comments from fed chair jay powell after he said the economic outlook is highly uncertain and that more stimulus may be needed. i'm sorry, steve error of omission, that's all that was and steve liesman joins us now with more hi, steve. >> reporter: joe, thank you for suggesting i ought to be up on that board there with all of those really smart people. >> there was room. there was room >> reporter: well, yeah. you need to bring the i.q. down to sort of average with all of

those people and i would help them do that listen, very important what powell said yesterday. really reminding markets of the risks out there, that the v-shaped recovery is not going to -- is not a certainty him saying the outlook was highly uncertain and there were significant down side risks the longer this lasts. >> recovery may take some time to gather momentum the passage of time can turn liquidity problems into solvency problems additional fiscal support could be costly but worth it if it helps avoid long-term damage and leaves us with a stronger recovery this tradeoff is one for our elected representatives who wield powers of taxation and spending >> reporter: so i think there was a message there to markets and investors, a message to congress, maybe even a message to treasury secretary steve mnuchin that you ought to have more contingency plans in place, more stimulus necessary if it ends up being needed on the issue of negative rates,

he said it's not something we're looking at some people seized on the saying for now. i put a list together, guys, of a bunch of things the fed would do before it ever got to doing negative rates the first is it still has about 2 trillion plus in lending under the c.a.r.e.s. act there's another $2.6 trillion possible, more lending under the c.a.r.e.s. act if it does ten to one with remaining treasury money. there's additional lending programs, commercial paper, money market, a whole bunch of other ones and then finally it could do infinity qe along with hard forward guidance the fed president saying those are next steps that are possible but they'd wait until the fed -- until the economy got going because that will provide more certainty when people actually want to lend for economic activity guys, the claims number today is an example of the risks we're looking for. 2.5 to 3 million in additional claims which is going to be

another wave that comes after the shutdown andrew >> steve, i don't know what to say, but thank you thank you for that record, steve. we wanted to mention hedge fund manager david tepfer saying this is over priced above 1999. this is what he said on our air on halftime report >> the market is pretty high and the fed's put a lot of money in here the question is have there been different misallocations of capital in the markets certainly you're seeing pockets of that now in the stock market. and the market is by anybody's standards pretty full. but then again, you know, it's -- there's a lot of liquidity there and the fed's still there. you know, i'm not going to -- it's too hard to say that the market can't go up or something like that, but it's not a very

good risk/reward market. >> joining us right now is the head of equity and esg strategy at bank of america securities. you heard what david tepper had to say market may be over priced, but then there's this other issue of can you fight the fed, can't you fight the fed? what do you do >> so, yeah, it's interesting because i think that what we've heard is policy makers, not just the fed, essentially pull out all the stops. i mean, they've got our backs on this recession but i guess the worry is what else is going to keep the market propped up one of the things we've noticed, i'm sure you've seen this as well, every time you get some kind of bout of stimulus, you see a lower risk rally than the prior risk route think of t.a.r.p. that saved the world in 2009 but then the next round -- the subsequent rounds of qe produced lower and lower

risk so i feel like we're kind of maxed out in terms of stimulus and what we really need to see is a clean reopening so i don't know, i look at this as kind of a big moral hazard risk you know, the other thing be that i worry about is what if the fed intimates somehow that they may not be able to save us? i think that would cause a big confidence crash in the market because if you think about it, the fed bolstered this market pretty aggressively for over a decade know, i think we're in bit of a tough spot about how to get higher from here the good news is the s&p 500 and the reason we're not outright bearish on stocks is that there is a huge percentage of the market that is comprised of recurring revenue, high quality companies. so amongst all of the equity benchmarks i would have to say that the s&p 500 actually looks to be the most stable area in which to invest your money

>> so you would invest in the s&p. the question is, is the bet at this point about health or is the bet about stimulus or is it a combination of the two and when it comes to the health piece, you talked about clean opening. everybody wants a clean opening. you talked to the health experts, you listen to dr. fauci, he would almost make you think that almost by default it's going to be almost impossible to have a genuinely clean opening given what could take place the question is, are the american people -- i don't want to say do they have a risk appetite but a risk acceptance maybe to go back to work in ways that maybe with ppe and other things keep going? and what does it mean just to go back to work because i can see lots of people go back to work but then i'm not sure, are they going to still have the same kind of demand for products and other things? >> absolutely, andrew. i think the question is, you know -- i mean, if you look at

china, they had a very -- a pretty quick recovery but china is much more manufacturing heavy and services light what we've learned from looking at china is that the services sector has been much more sluggish to come back. the consumer sector has been much more sluggish, and as you know, the u.s. is much -- is tethered to consumer and services so that's why i think that, you know, the market may have run up a little bit too quickly ahead of expectations. so just to give you a sense of what we're expecting, we have a 2600 target on the s&p 500 for this year. i think, you know, targets are -- point in time targets are fraught with peril, but i think our view is that from here the risk is to the down side in the market, and i would agree with tepper that, you know, stocks look pretty over valued on almost any valuation metric you look at, but the one metric on which stocks look cheap is relative to bonds. so if you look at the dividend yield of the s&p 500, it's

trading at almost three times the treasury we haven't seen that multiple on yields since the 1950s so i still think that from an asset allocation perspective and for the long term stocks, and in particular the s&p 500, looks attractive relative to bonds and then on the clean reopening question, i mean, my worry is in china you had a very top down controlled policy where, you know, the reopening was very -- very sort of controlled essentially, and in the u.s. we've had a much more fragmented, localized recovery -- reopening strategy so i think that that could create more of a risk of a second wave of infections in the u.s. and that i think is another point to factor into the market that might not be priced in at this point >> saveda, always good to see you. thank you for your insights and perspective and look forward to seeing you again very soon. >> great to see you. >> joe >> thanks, andrew. coming up, with major u.s.

sports, becky, on hiatus, they love that in jumble, don't they? they put hiatus in every different combination. we never remember this where's the advertising money going? we're going to discuss with media and tech executive tom rogers after the break he has a new company he's working with as executive chairman and then ceo of verizon hans vestberg every financial plan needs a cfp® professional -- confident financial plans, calming financial plans, complete financial plans. they're all possible with a cfp® professional. find yours at letsmakeaplan.org. you know, the chef here trained in france. mmm, it shows!

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>> executive chairman. the media. cnbc contributor really one of the founders of cnbc you're a visionary, tom. i can't believe esports is your latest vision. your first vision, there is a market for business news are you sure no, no, it's been very -- >> i don't know, joe that's still an open question. >> i don't know whether to trust you on this or not from your record no, that was great and we -- you know, we love that you were involved with all of that. so i think you need to explain not only what this new venture is going to do but also the

name, which i think is the name. the eng. not just engine. it stands for something. >> it does, just like cnbc stood for something, which is a great trivia question. but starting with engine e for esports. n for news streaming and g for gaming and what that signifies is this is a company that is about creating new sources of revenue for sports and news programming, and cnbc being a news channel, it should be close to your heart. as entertainment programming goes to the streaming world, netflix, hulu, et cetera, sports and news programming are particularly vulnerable to cord cutting. and the massive diminution of revenues that sports and news that flow from that. and so we've created a company that is about creating new sources of revenue for those

forms of programming >> actually, tv on apple, how do you describe it? it's a "sportscenter" for gaming sports >> well, our esports interests are very wide and one of those interests is a competitive gaming platform where esports competitors play against each other for money. and umg tv was just launched, a linear streaming channel, again bringing in the news component of this. kind of a "sportscenter", sports news element for esports that has all kinds of news and information related to that industry and it's one way that we are taking what we have and bringing it into the streaming world. we actually do that for about 1200 broadcast and cable interests taking their traditional content, bringing it

into the streaming world but the other meaning of engine is our underpinning expertise in esports is actually car racing, which engine underscores and our virtual car racing has been on espn in the afternoons since the pandemic began and has turned into a great substitute for their lack of sports programming. we're taking that success that we've had on espn and memorial day weekend where traditionally for car racing fans there is the indy 500, we're going to have a virtual indy speedway race, virtual version of the actual indianapolis speedway with six former indy 500 champions and some formula one champions as well and have a great memorial

day race in the absence of everybody's favorite memorial day car race >> was this in the works all of these ideas and moves, tom, before the pandemic? obviously it makes a lot of sense now. if it takes a long time to get back to normal, it will be nice to have some sports entertainment to be able to -- you know, to ingest because we have nothing right now even when we come out of this this is going to be just as viable, it seems even more attractive now. >> well, it's introduced some traditional sports audience to esports which certainly i think will have lasting effects, but we may not come out of this for a while. there's a lot of talk of there not being a college football season this year, and one of the things we've found is we have had all kinds of collegiate clash competitions around overwatch and rocket week, some

well-known games that esports fans really go for and that has led us to announce that we're going to create an esports gaming conferences for colleges we've had hundreds of colleges express interest and whether there's a football season or not, but particularly if there's not we think getting collegiate competitions going of that sort in an organized conference form will be a real boon to the industry and a further way to introduce traditional viewers to that kind of competition. >> pretty unbelievable, tom, just the environment in general. we've got to go. i'm glad we got to talk about this, but everything's down, what, a minimum of 50% local advertisers. no sports advertising. i mean, you can imagine being a media company right now. it's like i have no media. what am i supposed to do it's really difficult. >> and the advertising will come back >> right. >> sports has actually gained

viewing share relative to other broadcasting cable programming, but the cord cutting issue is not going to stop and 40 to $50 of everybody's $100 cable bill is going to sports and as that diminishes, the whole fundamental revenue stream for traditional media companies being able to bid on sports which are going to escalate, it's surmised that the nfl on renewal will get a 75% increase in their rights, with increasing rights and diminishing revenue from cord cutting, the traditional media companies have to find new sources of revenue in order to support what they do >> yup. >> that's an awful lot of what we're about. >> bet you're watching a lot of cnbc though, not just because you're one of the founders >> no. my morning is not complete unless i wake up and see your mug there. >> right well, that doesn't make you unique, i don't think, tom i think a lot of people might say that, right? >> wait until we have a clash of the business titans esports game

and your avitar leading the way. no shirt on of course. >> sure. but we'd need competition, which i don't think that exists at this point i guess we could play against ourselves. anyway, thank you, tom appreciate it. great to see you. >> thanks for having me, joe. >> like your house when this is all over -- >> when this is over you're coming over. >> thanks. good >> andrew. >> okay. coming up, when we return, verizon ceo hans vestberg is going to join us to talk about the impact of the coronavirus on business the buildout of its 5g network and so much more in the meantime, check out the futures right now. we're about two hours away a little more. dow off close to 100 points right now. nasdaq will be open down about 24 points. it was in the green at one point. s&p 500 off about 10 points. "squawk" returns with the ceo of verizon after this time now for today's aflac

trivia question. in what year was the first uber ride requested the answer when cnbc "squawk box" continues it started with a few smaller bills. fifty dollars here. eighty dollars. a hundred dollars. i had good health insurance. why isn't this covered? well, then they started getting bigger. eight-hundred dollars. eighteen hundred dollars. i saved for this. but not that much. i'm glad i had aflac. they gave me money when i needed it most. that's why aflac is here, to help with the expenses health insurance doesn't cover. i love that aflac duck. aflac! get to know us at aflac.com our retirement plan with voya gives us confidence... ...we can spend a bit now, knowing we're prepared for the future. surprise! we renovated the guest room, so you can live with us. i'm good at my condo. well planned, well invested, well protected. voya. be confident to and through retirement. confident financial plans, calming financial plans, complete financial plans.

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stay safe. stay home. together, we'll get through this. pnc bank now the answer to today's aflac trivia question. in what year was the first uber ride requested the answer, 2010 welcome back to "squawk box. this morning making headlines, federal agents seizing the cell

phone of u.s. senator richard burr as part of a justice department probe of stock transactions he made ahead of the market downturn triggered by the pandemic that's according to a report late yesterday by the "los angeles times. nbc has now confirmed with a senior law enforcement official. burr has denied any wrongdoing and he relied on news reports. senator burr turned over his phone to agents after they served a search warrant at his washington residence becky? andrew, thanks still to come on "squawk box" this morning, keep people connected is as important as ever verizon is doing just that we'll hear from the ceo hans vestberg after this break. we'll talk about what he's seeing with consumers and how the rollout to 5g is going. could this be a black eye for tea?sl threatening workers unless they come back to work. "squawk box" will be right back. .

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welcome back to "squawk box," everybody. a busy time for you all. we do appreciate your time today. >> thank you good morning to all of you >> let's talk a little bit about what you are seeing in terms of consumer demand. i realize that it's shifted from the workplace and from urban areas really out to residential areas and probably more suburban areas. what does that look like for you? what kind of surge have you been seeing and how are you handling where that change in traffic is coming from? >> if you look at a network, i

think comparing right now we are up 1,200% on the collaboration tools in the network that will be video conferencing, what other types of tools. so it's enormous increase, the practical applications gaming is up 120, 150% network streaming, downloads, all is up with so many people at home at the same time we saw the peak that the mobile handoffs meaning when people are either moving between the different radio cells was down 35 perfection percent. -- 35%. people are staying at home now we are seeing 80, 90% in handoffs compared to free calling. the surgeon the tools working from home, easiness, moving around in the country kept up.

>> hans, even though you are more than ever, obviously uncertain times. anything you have to do, cap exis something we're watching is capital xpenditures. are you cutting capital expenditures and what does that mean for the 5g rollout. >> so from the first quarter was a small decline. we saw we end on the quarter so we had a good quarter still. we continue with guidance on bottom line but not on top line.

when it comes to our cap ex. we increased cap ex at the beginning of the pandemic. we thought it was a good time to see what the capacity would go that we handle well. now it's a good morning for our 5g rollout we increased guidance from 17 to $18 billion u.s. dollars cap ex. we saw momentum for increasing cap ex our networks are more used than normal and i see with all the shelter in place and many of that, many of our services becomes even more important when we come to what we call the new normal >> andrew has a question, but i do want to follow up really quickly with this, just very quickly and then over to andrew. in terms of where you're spending, hans, has that changed? because obviously you guys were building out in cities a lot of places before. i just wonder as usage has switched, are you changing the

places where you are trying to build out the 5g or is it sticking with the plan you had before >> stick with the plan we had before we are going for 60 markets this year, five times more 5g stations 10 cities with 5g home and 10 mobile ex compute centers. the rollout is going as planned. we are on plan so far this year. in general our team has been very innovative and working with all of the cities in order to continue the rollout >> hey, hans, a couple questions. one is i imagine there are consumers that can't pay their bill, and the question i was going to ask is do you turn the service off? does the service maintain for several months are you negotiating with consumers, both businesses and individuals? how does that work >> this is unprecedented times, and you need to take unprecedented actions.

we are not disconnecting anyone. it is so important to be connected in these days. we have what we call keep america connected which means if you have problems because of covid-19, you're distressed financially, we actually keep you connected. we're not disconnecting you. we have today roughly 800,000 customers that have said that they have challenges with it that is 2.5% of total customer base and the majority of them actually have a credit history with us before as well so it's been it's now serve iing custom. it's everything.

given the shift. the conventional wisdom is there will be a shift away from cities over the next five years, maybe longer i don't know, maybe you believe that, maybe you don't. how do you think that's going to weigh on thinking -- maybe not changing your plans today but changing the plans in the future about what that rollout/buildout looks like, getting the rural areas that may not have been connected historically how do you think work changes as a result and, therefore, what verizon has to do? >> so two things here. number one, the network is equally largest today as it was before this pandemic so that means we're already very good resilience in the network and it's performing fantastically great.

so that -- we don't need to change that because we're handling the traffic right now when everybody is home what we really see is going to see is going to happen is some of the barriers, transformation in our society will happen over time that's, of course, telemedicine will happen where we have been fighting for years, you know, to see that people actually using technology for telemedicine. it's going to be mixed onion line learning and physical learning all of that will change and you need different applications for it, but the network so far what we see is handling that very well but there's going to be definitely behaviors in our society that's going to continue over this. many of them are really, really good for our society so each and everyone can get the same access to health care, education. this is not only u.s. but of course globally. i think some of the things that we are fighting over time to use for mobile and cloud services in order to be efficient and make

sustainable so-called solutions, that's going to happen after this pandemic whenever it's over, or the new normal. >> hans, we're only about two months into this, and we're finally, i think, probably getting to the point where people have gotten into routines, maybe we've gotten our arms around how some of this is working, but i wonder if you can make walk us through maybe a little bit about what happened when you start seeing these increases. you say 1200% increase in usage under the network. that must have been unbelievable to watch in the early days what happened? how did it look like and how did you all react? >> so unfortunately verizon is very used to crises. natural disasters. every natural disaster has new types of applications. we have crisis management that we initiated extremely early on in the beginning of february we monitor that all the time and saw that we can actually help. the main challenge we have is customers that had not prepared

themselves for working from home or moving the loads to a different place, facilities that the government are stepping up these emergency centers, et cetera, where the coverage was brought down they didn't have the technology. that was what the challenge was in the beginning right now if i look week over week, we actually have decline of uses, decline on downloads. collaboration tool is flat so we are in a state right now in the beginning it was more of a preparedness of our customers in order to have all of the technology and capacity in the places to work and our team made it fantastic and sorted out with all the customers who had all the great types of capacity needed >> you know, when you talk about the idea that you're spending even more on cap ex at a time when you may be seeing revenue decline because of the difficulties in trying to see through this, i'm always interested in how every company is approaching this. if you are not going to cut cap ex, are you going to cut

salaries, institute layoffs or are you telling shareholders they have to wait and ride this out until earnings come back to normal >> no, we have not announced any of those we are continuing to execute our strategy we haven't closed. i still have -- later this week we are going to have 50% of our stores are open because they are essential in character we have our field engineers out there handling the network people are using our network we are critical infrastructure at this moment of course the hospitals, that is even more important. we have continued to execute on our strategy we actually work very normally in our company, forced to take care of our employees and we have number one priority, the health and safety of them. we have not taken any decision to cut any costs or dividends or something like that. we're in a good place. we actually are executing in order to be stronger coming out from this given what we're doing in our business, but we are also

helping our customers in these times, we are helping our society in this time which we should do because this is unprecedented times. >> hey, hans, i just wanted to ask you about the rollout and rapidity with which you think 5g is going to come out the reason i ask is the big expectation was come this fall apple would be coming out with an iphone for 5g people talk about it as being a super cycle that was going to really hasten the rollout of 5g. other phones are already out, of course, but i don't think there's been the true pickup just yet the question is sort of how do you see the fall in that context because you're going to have customers imaginably with less money, so that might hurt demand, but at the same time you might have an issue where more people are either working from home or needing to be in different places and so maybe that will push demand. sort of how you think about that push/pull, if you will, come this fall. >> in the beginning of the year we talked about this going to be

20 new 5g devices this year. all of them will have a way to 5g ultra wide band those plans have not changed we are rolling out our network and the plans for having natural coverage this year then, as i said so many times before, this market has a high penetration of apple phones so the day they decide to come out with a 5g phone, that's the day we see a big pickup for 5g consumers. even though something has been out with great phones for a while, given the market shares and the so-called relentless issues between moving between android and i0s which is not happening, i think when i0s and apple will come out with a 5g phone, that will be different for the consumer sake. then we need to follow what's going to happen in the future, what to cut consumer sentiment will be, et cetera we are preparing ourselves

because people really need even better connectivity, more throughput speed, lower latency. i think that's something that is also demand. there's always going to be a weight against your economical purchase power ultimately it's time to really make 5g being big and that's why we are continuing our path >> hey, hans one more quick question. this came from twitter and it's a good one because it kind of gets at the idea of what you're seeing in the broader economy right now. this viewer writes in, what percent of your customers right now areunable to pay their bills. >> it's 2.5% as i said, the majority of them all had a credit history with us, 800,000. what we saw when we reported the first quarter, we saw some challenges for them to pay their bills. the last two weeks we have seen improvement. not any substantial improvement.

it's still going the other direction. we are seeing improvement on the payment cycles from our customers that are stressed in these times for covid-19 that's where we are, 2.5% of our customers but the last couple of weeks sort of development of how they're paying their bills >> that's a good sign for what that means for the economy hans, really want to thank you for your time. we appreciate it good talking to you. >> thank you very much >> thank you andrew coming up when we return, thanks, becky, thank you, hans when we come back, the reopening of america we'll speak to "new york times" columnisttom friedman about th important part schools play in this equation. he has some provocative and u n'resting ideas. yodot want to miss him we'll be right back with tom friedman in a moment when we started our business

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coming up, america slowly attempting to reopen but the threat of a second wave and the economic impact weighing heavily on individuals and investors pulitzer prize winning writer and ewortis""n yk me columnist tom friedman joins us to discuss next every financial plan needs a cfp® professional --

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welcome back to "squawk box" this morning president trump taking issue with dr. anthony fauci's testimony to congress this week saying edition agrees. on reopening states and schools too soon speaking with dr. scott gottleib about that earlier locally depending on what's going to happen. if the disease is epidemic within a state or local community, the is a national decision what we do in the fall with respect to schools. >> joining us right now to talk more about this and everything else, "new york times" for affairs columnist tom friedman his latest column, has trump decided we follow sweden and just not told us tom, it's great to see you this morning. we spend a lot of time talking to schools because they're so critical to the entire economic

eco sphere if kids are staying home, it's hard for parents to go back to work what's your take on this >> andrew, since the beginning of this crisis i've believed that our goal has to be what dr. david cass calls total harm minimization how do we balance saving lives and livelyhoods in a sustain ab able way exploring how to get kids back in school is vital to me, it's all a question of how. how do you frame these things? we have an excellent op ed piece from a doctor at johns hopkins and i would endorse every proposal he made i think it should be a national rule that everyone has to wear a mask inside, outside, any kind of public area second, we should actually be encouraging people to do as much business outside as possible there are all of these studies coming out if you have to work in an enclosed space, by the way, that applies to a restaurant or a factory, the

speed and ease with which this coronavirus can be spread is really stunning. third, we should i think be actually surrounding every nursing home in this country with units of the national guard and public health together to make sure we are protecting the most vulnerable. fourth, we should be practicing social distancing everywhere lastly, we should be taking over hotels the government should be taking over empty hotels and enabling people who live in maybe a family where one of the parents has to be at home for whatever reason of illness, the other one is working outside, the kids are in and out that elderly parent especially if he or she has obesity issues or pulmonary issues is extremely vulnerable i think if we took all five of those things and put them out there, there's a chance that we can open in a way that minimizes -- does total harm minimization. >> tom, i completely agree with you in most parts of the country. one of the more complicated

issues is in cities like new york city, chicago, other cities that require public transport or transportation, meaningful public transport to get to schools, for example and so the question i'd ask is sort of how you think about those kind of locations and also how you think about -- how do you think parents should think about these risks because even though it seems like children have very little risk, we are hearing of p certain anecdotal stories of certain children having severe complications and real problems. and so even if the risk is tiny, if it's your child, it's a problem. so there's this asymmetric relationship there yeah i think you do need to look at the numerator/denominator issue here and what real fraction of children are affected by these

extreme symptoms you know, this is i think the hardest thing for us to appreciate, andrew, is up against mother nature and it's not fair and it's not going to be equal there are some parts of the country, as dr. gottleib said, they may not be able to open schools. we need to find other alternatives for them. we need to find ways to economically sustain people and maybe sustain them while their kids are at home for a much longer period in different parts of the country none of this is fair but where i begin all of my analysis, andrew, is not with economists, not with political scientists, not even epidemiologists, it's with evolution biologists. if you don't start there, you don't appreciate what you're up against. viruses, floods, droughts, pan dem mix, these are all the fastballs mother nature throws at us to sort out the fits that's what she does she does not reward the smartest she does not reward the

strongest. she only rewards the most adaptive in our case the only way you can adapt to this virus, you have to take three states of mind. one is you have to be incredibly humble if you are not humble, she will hurt you number two, you have to be incredibly coordinated you have to find your weakness and lastly you have to be about chemistry, biology, physics. if you're not, if you're about politics, ideology, something else, she will hurt you. >> tom, let me ask you though about the politics of this because the democrats now have $3 trillion plan on the table, much of which is being derided by the other side. there's big questions about how much testing is going to get into service and into place over the summer there's still obviously questions about access to ppe and the like how would you recommend from a policy perspective, and if you can do -- and how do you do that without -- and take the politics out of it?

>> well, it's really hard. what worries me right now, andrew, the administration talks like we're kind of being like china. it acts like it wants to go for herd immunity like sweden. it prepares for neither and it boasts that it's superior to both you've got to take this seriously. one of the things i've become in favor of is i really think we need to take seriously these proposals for some minimum income for people. we could be in this for a long time i think basically i would rather err, andrew, on the side of pushing too much money out to keep people upright, all right, than holding money back and making a depression -- a great depression >> tom, on that point, we spoke with senator portman yesterday from ohio. he was talking about his plan which is he thinks that in order to make sure you still have people going back to work but also still to reward the people on the front lines that maybe what we should be doing is if

you do go back to work, maybe in one of these low income jobs, maybe one of these minimum wage jobs, you should continue to get to keep some of the pay that you would be getting unemployment at home instead of $6 a week, maybe $450 a week which would be a pretty big number if you add that to the number you're getting on top of it. it's an interesting plan and perhaps could get some support what do you think? >> i love that idea. i love every idea like that. i am terrified when you see the pictures that we've seen over the last few weeks of miles and miles of cars, you know, six wide, rows six wide lined up to get a box of food. there is real pain down there, and this could turn into a real social unrest if we, you know, go for a couple more months like this, and there's every possibility we could i'm for erring on the side of just pushing the money out we will sort it out later.

>> okay. tom friedman, always good to see you. thank you for coming on this morning. >> pleasure. coming up, the big market number of the morning. we're now just 30 minutes away from weekly jobless claims allianz economic advisor mohamed el erian will join us. futures down 170 points on the dow. nasdaq is now negative w wnd to stay positive nodo about 58. stay tuned you're watching "squawk box" on cnbc tempur-pedic's mission is to give you truly transformative sleep.

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breaking news. futures pointing lower once again after comments from fed chair jay powell and billionaire david tepper have driefd markets down the closely watched markets are

going to hit the tape at 8:30 eastern time a potential tough choice for tess what workers in california. the company alerting employees they could lose unemployment benefits if they choose to stay home once a key facility reopens. we'll get reaction from california congressman eric swalwell dig into the markets with mohamed el erian and the future of work in the time of big tech with google ceo eric schmidt -- former ceo the final hour of "squawk box" begins right now good morning again, everybody. i'm becky quick along with joe kernen and andrew ross sorkin. they're a little bit weaker. the dow futures have taken a turn down. down by 150 points on the heels of that 516 point loss from the dow which was the worst performance since may 1st.

the s&p is indicated down by 18 points if you take a look at the treasury yields, last time wleekd they had come under a little bit of pressure 0.256% right now. oil prices had been running a little bit hotter. you had seen prices up by 5% if you are looking at wti, it's up by 2.25 points to 25.87 earlier we saw it at 26.50 >> yeah. talk about powell, mohamed saying nothing should have been that surprising, but first let's start with this. comments from billionaire hedge fund investor david tep ler. the marke -- tepper. tepper said the stock market is significantly overpriced second only to what he saw in 1999. earlier in the day fed chair jay powell weighed in on a fed comeback for the u.s. economy at large.

washington may need to provide more fiscal help >> recovery may take some time to gather momentum the passage of time can turn liquidity problems into solvency problems additional fiscal support can be costly but worth it if it helps avoid long-term damage and leaves us with a stronger recovery this tradeoff is one for our elected representatives who wield powers of taxation and spending. >> joining us now, allianz chief economic advisor mohamed el erian. we were down 15% yesterday or the day before maybe a little bit more than that and so he said these things and we go down another 500 i don't know how much -- you know, what is that that's not even 2% i don't think. so we're down again today and we

were down earlier this week, 450. so we're down over 1,000 points. none of this may have anything to do with what chair powell said in terms of him describing reality that we all know >> so, joe, we've had these three phases that you and i have talked about phase one was very sharp correction when we realized that we had an economic sudden stop phase 2 was a reaction to policies so everything added we came back strongly but partially. and phase 3 for the last month has been volatility towards slightly lower we are lower for the last month except for the nasdaq. and what you see happening now is a tug of war between continuously worsening fundamentals and policy hopes. and what chair powell said yesterday, there was nothing surprising about how he described the economy. we all know it's highly

uncertain. we all know there's down side risk we all know that liquidity can turn into solvency problem just watch "squawk" every morning that's repeated over and over again what the markets were hoping for was a stronger policy message. they were hoping for stronger policy guidance and they didn't get that and it tells you that this market needs continuous support from the policy side in order to, in my view, overcome the weaker fundamentals for now. >> there was one day on the 17th of april and we've been below that we've been above and below that so we're basically flat for the last month you're right, it's been turning around so is it we're back to fed moves or science moves that dictate or

reopening moves? i guess there's three different ways of trying to decide what the market keys on, mohamed? >> all three depending on what type of investor you are look, i have said continuously, and you've pushed back against that, it's much easier to make a judgment about specific companies and four attributes in particular that i've stressed that it is to make judgment for the market as a whole and those attributes have actually outperformed both on the way down and on the way up and they're positive for the year. significantly positive for the year in some cases so look for particular attributes that's what's going to navigate us through if you are a tactical investor you're looking for policy. if you are more of a strategic investor it's about science and reopening. and i think that the reality is we are a mix of everything so i'd rather build it up from the bottom than top down.

>> yeah, i don't know whether it's been -- when you say quality. quality means different things to different people. when you say raise your quality, that sounds like, you know, strong balance sheets and staying pay sta staying power but in this bifurcated market it's been about pandemic winners, netflix, amazon, any of the -- companies that can actually flourish in this bizarre closed down economy that we find ourselves in. i don't even know if they need to be strong financially because a lot of them are making money just based on dealing with this current situation. so you needed, i guess, to look at the winners versus the losers obviously cruise lines and the airlines were not a place to be. >> so, joe, i suggested four attributes for the last i don't know how long. one is strong balance sheet which means either no debt,

little debtor it means access to capit capital. two, positive cash flow. three, strong management teams four, what you just said on the sunny side of both the covid shock and the post covid world there are companies that meet those four criteria and they've been doing relatively well in this whole environment, and i suspect they will continue to do well i have no issue with the relative pricing where i and others sort of wonder is the absolute level of markets. >> do you think we go -- when i see trump talk about negative rates he's so -- you know, as a real estate guy he's so just straightforward. and there were times in the past when he was telling jay powell, you know, you need to do this, you need to do that. it sounded simplistic. almost too simplistic. then it actually -- some of it actually came to pass. do you think that the record is

significant enough and that what happened over where it's been done where you didn't get the desired results, does that prove that we don't want that here, mohamed? he said that's the one thing he disagrees with jay powell on now is that maybe we need negative rates. we have a very strong currency we could do it we could get paid to lend money. does it make sense >> it depends what you're targeting joe. >> borrowed money. >> if you're targeting real estate, sure negative -- yeah if you are targeting asset prices or negative rates -- oh, the real estate. yeah, go to negative if you're targeting the economy, it's not going to have much impact then you have to deal with the collateral damage and the unintended consequences. the evidence from europe is that so far the costs and risks exceed the benefit for the economy as a whole it doesn't mean you don't get different compensational issues. that's why the market is pressing for lower rates

the market is pressing the fed really, really hard to do more, both on credit support, where the fed is already doing a lot, and also on negative rates that's what the market wants it's not clear that the economy will be better off what is absolutely crystal clear for me is that the credibility and the standing and the political autonomy of the fed will be weakened >> are we looking at a nike switch it swoosh it's not a v, a u, an l. got a sim ymbol for that. >> it's a series of ws. >> w >> a series of ws. no, think of a pendulum. we swung from everythingfine t complete shutdown, now we're having partial unsynchronized reopenings some of them are going to go well, some of them are not going to go well the pendulum is going to continue swinging with lesser

and lesser magnitude as we learn to lift from the virus the good news in all of this, leap frogging and scientific discovery. we're learning a lot more about the virus every single day you've heard me say every single day is a win because we learn more and we're starting to realize you're going to have to start changing things we do. i'm so glad you have eric schmidt on he will tell you how we live with this virus. we have to learn how to live with this virus. we have to swing one way we're really excited about the reopening. then we have the swings getting lower and lower in magnitude as they go forward. >> and if you could design something fiscally now between what the democrats want to do and what republicans want to do, what would it be >> i would do two things one to win the war against the depression, i would continue to look at relief measures aimed at the most vulnerable segments of society. and as tom friedman just said,

the amount of pain out there is significant and we don't want short-term unemployment to become long term, but i would also be spending a lot of time right now not just winning the war but securing the peace and what i would look at infrastructure programs, i would look at labor retooling, i would look at labor retraining, i would look at better safety nets we've got to make sure we don't come out of this with higher debt and lower productivity and less dynamic demand. if we do, it's a new normal 2.0 and this new normal 2.0 is going to be a lot worse than the first new normal of inadequate and not inclusive growth. >> all right, mohamed. where's the dog? no snoring today we couldn't hear the snoring you didn't take that personal when your dog was snoring, did you, during your -- you don't think it was -- it wasn't you? >> oh, no. what i -- what i took personal, i don't know if it happens to you, what i took personal is the extent to which the dog has

conditioned me she comes back from her walk yesterday, she's exhausted she comes into the study where i am i tell her go drink some water, she doesn't. so i go fetch the water and bring it to her. that's how much i've been conditioned, joe >> right you remember the seinfeld routine. if people looked at us from outer space the dogs are like kings. we are walking behind them picking up their poop. i know -- >> i pick up the poop. i don't know whether you pick up the poop >> of course i do. of course i do i have two german shepherds. it's like i have horses. it is. i need a -- that's neither here nor there. thank you. it's a privilege to own them though, isn't it it's a privilege to even be in their company. >> it's more than a privilege. >> you're right. maybe not so much for them thanks, mohamed. andrew okay coming up, a wide ranging interview with the former ceo of google eric schmidt on virus

technology, how he's advising new york's governor during the pandemic. plus, the debate over reopening local economies as seen through elon musk trying to get his tesla plant restarted. california congressman eric swallow is going to join us in just a little bit. as we head to a break, check out shares of norwegian cruise line almost doubling the costs of losses. norwegian said it was positioned to withstand 18 months of voyage suspensions. 'lta me outhwel lkorabt at in a little bit when we return.

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worse as the morning has progressed dow off 189 points as we open up right now. the s&p 500 looking it would open 20 points the nasdaq looking it would open down 65 points becky? >> andrew, thanks. a warning from tesla to some of its workers. the company's human resources chief told california employees yesterday that if they're called back to work and choose to stay home because they're concerned about the coronavirus, they may lose unemployment benefits tesla did say though that if it happened it would be the state's doing, not the company's this comes as the standoff over reopening tesla's fremont, california, factory appears to be easing. let's welcome congressman eric swallow of california. some of his constituents work at the fremont plant. congressman, good to see you. >> good morning, becky thank you for having me. >> let's talk a little bit first about the situation on the ground there i think it's difficult for people in different parts of the country to really imagine how this plays out and what the tensions are without knowing how many cases of coronavirus do

you have there how big of an issue and how concerned are you about what's happening with coronavirus in your district? >> thankfully in alameda county we have just over about 1,000 cases. we're seeing on average around 30 to 40 new cases each day. the county next to us had their first day of zero cases on monday and went back up to 14. so we're startingto stabilize in the low double digit of cases. we should be rewarded for that by coming out. we have to do it in a responsible way. i'm glad to see tesla and the county have worked out a plan where they can come back as early as monday. >> what did you think how this all played out it was a little ugly on both sides. >> i think you can't be stubborn, you can't be impatient, you have to follow the science. i don't think it was productive that tesla was threatening to

leave the state. you know, when you have over 10,000 employees in a city of nearly 250,000 people, it's not as if those employees would go to work and stay on site and never leave. they would go back into a very large community and so it's not just protecting the workers at tesla, it's protecting the other people in the city of fremont and the county of alameda. i'm glad that it was resolved and hopefully they're making cars and people are getting a paycheck very soon >> what do you think about the company's hr representation saying that if you choose not to come back once they've reopened the plant, that you could lose the unemployment benefits? they say it's the state's doing. that is the case in a lot of states if you choose not to go back then you will lose benefits is that the way it should work >> you know, becky, these are uncertain times. people are anxious when they see

the death rate continue to go up do what's right and find ways to accommodate workers by having a safe working environment people should not lose their wages, benefit, bond of employment if they have legitimate concerns. i hope we can show flexibility on the government side, the employer's side and what we're asked to do at home if we're not an essential worker. just do the right thing. take a step back from impatience and being stubborn and wanting to get out and think of what is the right thing to do? don't lose sight of that. >> it sounds like you have a fine line to walk. it has divided your con stit two wednesday si sharply, those wanting to get back and earn money and those concerned about their safety maybe they have underlying issues is that what's happening >> absolutely. i don't want us to be at home a second longer than we have to. but you can't attack the health crisis by solving the economic

crisis you can solve the economic crisis by attacking the economic crisis the worst thing for the economy is if we all come back out, reopen main street, factories, workplaces and then we see a second spike i think that would be just pull very advising. that's why we're passing tomorrow the hero's act on the house floor which will put a trillion new dollars into the economy for state and local governments to take care of their needs as well as continue to reload the paycheck protection plan and adds further benefits for employers to keep their employees. it'll never be cheaper than doing that right now >> the republicans sound like they are not going to go along with that at all are there places where you find common ground where maybe there is some area where the two sides will be able to come together? if not, it's not going to pass the senate >> you know, becky, the common ground is among america's governors. republicans and democrats are saying we have to help state governments. so that's why we're doing that

we've united republican and democratic governors also the president's fed chair said yesterday that congress has to do more to stimulate the economy. we're doing just that, but the opposite of that is what senator mcconnell has proposed, which is to allow states to go bankrupt, which is just not an option. so we're responding to the need, and i think the politics will -- i hope we can come to the table with republicans and make sweeping changes to stimulate the economy in the last two months in a bipartisan way and i hope we can do that in the next couple of weeks. >> what do you think should be getting paid out directly to citizens, to taxpayers >> in the heroes act there's up to $6,000 in stimulus dollars for families, but also i think hazard pay we have $200 billion in hazard pay for the front line workers, the people who have put

themselves out there, doctors, nurses, you know, janitors, cleanup crew at a hospital we have to take care of them not only to make sure that they are made right during these traumatizing times you have a next generation of doctors and nurses and people who want to go into the health care, police officers, firefighters if they see us not take care of those individuals, you're going to see a steep decline in future recruits and that's not good for the future of medicine and first responders >> yeah. on that line, again, we had senator rob portman on from ohio yesterday. he's a republican from the senate if there's an idea he's talking about, i wonder if that could gain traction on both sides too. but he was saying that he thinks that even if you go back to work, particularly for low income workers, people making minimum wage, that if you are working on the front lines, you don't have to give up all of your unemployment benefits that you would be getting if you were staying home because obviously some people will feel more comfortable going back than others maybe they should be getting

some sort of hazardpay his thought was they could keep $450 a week of the 600 and continue to earn a salary to thank those on the front lines what do you think of an idea like that? >> becky, i'm flexible i like ideas like that because they fall between, again, letting the states go bankrupt and us doing nothing further to help people and what we've proposed for the hero's act. showing flexibility, ability, in these uncertain times is what american people want our heroes are worth it and we should reflect that in the way we try and respond to their needs. >> yeah. >> hey, congressman, just wanted to ask you about the senator portman proposal, in part because after he made that proposal people wrote in to me and said, he's effectively incentivizing people, yes, to go back to work but he's

disincentivizing people with pre-existing conditions and effectively incentivizing people who are sick to go back to work. one of the complicated balancing issues has been the whole idea of how do you incentive advise people to go to work and how do you incentive advise the right people to go to work and to not make people make decisions simply out of economic desperation? and i think there's a real sort of challenge in terms of trying to find that balance >> yeah, it's a great question i would say first and foremost, testing, testing, testing. widespread access at the testing will help us determine who should be going back to work and who should not be. funding the diagnostic that will tell people if they've already had this, of course, but also increasing through the defense production act the materials that are available to employers so they can sanitize the workplace. most employers are telling me even if i could physically reopen by an order of a county or a government, i don't have the materials that could make my work space clean so we really

need to ramp up production so that employers could make the work spaces safe as you said, it's really an employer by employer, person by person decision. i just think we should show maximum flexibility. >> representative swalwell, thank you for your time today. >> my pleasure thank you. coming up, our weekly look at initial jobless claims. millions more expected to have lefor unemployment last week stay tuned, "squawk box" will be right back

zil to come this morning 2.7 million expected

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down 2.6%. if we look at import prices,

petroleum down half of 1%. year over year down 6.8. now let's go to the exports side of the equation. month over month is down 3.3 that's all time going back to 1989 worst month over month change on export prices. and if we look at year over year, down 7%. all right. the money ball numbers 2,981,000 on initial jobless claims do remember the historic week we all would like to forget was the 27th of march where it was 6,867,000. basically we're looking atz half speed, which is still way too much continuing claims, they've moved from a slightly revised 22.377 million to 22.833 million on the current week, which is always a week in arrears. so the worst week ever of course is this current week at 22,833,000 so continuing claims, of course, is kind of the bucket catching up here. of course, there's going to be a

very big correlation between how continuing claims end up and some of the job losses we're going to get on the first friday of next month. we still have some important data from the week tomorrow especially retail sales. will be very significant we see that yields have moved down, especially on the long end be still within the range of the bottom of the range. obviously jay powell was not a cheerleader for the u.s. economy and in the aftermath, the dollar index should enclose where it's currently trading, just a whisker under 100 1/2. becky, back to you. >> all right, rick thank you. steve liesman joins us right now with more on this. steve, what do you think about the numbers? >> reporter: you know, i think they're still pretty bad and i think that the -- it's problematic to me the deceleration has slowed. you only dropped a little bit at this time. you're still doing 3 million it tells me there's this second wave of unemployment is

happening, which is the first wave was from things closing down because of coronavirus. the second wave seems to be the result of economic declines out there as a result of the closings it tells me we're not done yet a lot of movement within the states in the prior week that i can't quite understand florida is up again. florida it looks like it's up by 47,000 connecticut rising by 262,000. i'm not 100% sure what's going on there, but a big increase in connecticut. california, which was one of the first ones to sign up the most people for unemployment benefits, down by 102,000. i think, becky, this is what powell was talking about yesterday when he said he's just not sure about the outlook and whether or not this is a sort of v-shaped recovery idea if you have this continued, big gains in claims. it has to make you pes sim miss stick about the outlook. we could stop the rise of the

uninsured rate that's when you have to get positive on the outlook. >> steve, i will give you one positive anecdote we heard hans vestberg was on with us and when we asked him how many of his customers couldn't pay their bills, 2.5%. he said the numbers have improved over the last several weeks. one good sign if you're reading it from a broad macro look >> reporter: yeah, you know, i don't want to minimize this, but the current set of bills are not the problem. i really don't think that's what powell's talking about i've been looking with john riding, i hope to have him on soon, we've been doing some work together it looks like more or less the amount of money the government put out there is pretty fairly equal to the amount of lost income so this month, maybe next. i know, by the way, that's not true for a lot of people, but when you look at the broad macro data about the amount of money in claims, the amount of money in the $1200 checks and all of

this other stuff, it's not that far off, becky the question becomes next month and the month after that i'm sure you'll have the verizon guy back on. watch what diana olick is reporting about forbearance and delinquent mortgages i don't think this month and next are the big problems. i think what powell's looking at and what you should be looking at i think as investors are the month after that i think it's a june, july, august issue as to whether or not we start getting into bill paying problems on the part of ordinary americans >> that's interesting because that's when a lot of these programs actually end in terms of the companies saying they will not shut off your service in the meantime. steve, thank you >> thanks. >> andrew? thanks our special interview with former google ceo eric schmidt his latest project using technology to help reimagine new york's economy as we head to a break, check out shares of netflix. jeffreys initiating coverage on that stock saying it sees three

reasons to buy, one, the addressable market is vastly under appreciated. two, improving margins, three, a ffoven ability jeries says buy netflix on the dips stay tuned you're watching "squawk box" on cnbc changing data. more and more sensitive, personal data. and it doesn't just drag hr down. it drags the entire business down -- with inefficiency, errors and waste. it's ridiculous. so ridiculous. with paycom, employees enter and manage their own data in a single, easy to use software. visit paycom.com, and schedule your demo today.

welcome back, everybody. et cetera will' get to skroocnbc headquarters welcome, jim the interview with hans vestberg, the amount of traffic increases, 1200% on the network and the number of people not able to pay their bills were both interesting reads coming out of that. i wondered what you thought. >> it's in line with what i saw with american power and what i heard last night from chuck robbins at sisco there's a sea change the genie's out of the bottle. it's not going back. too much equipment is being bought that hans will have a very valuable arbitrage.

it's better to have those lines at home than it is at the office of course you do have the people who are not paying, it's an offset, but i've got to tell you that i thought hans is so steady as she goes. he's a delight to listen to. >> yeah. and just hearing how they kind of handled it, how they're not -- there's not any sense of panic or anything. >> no. >> they're staying with cap ex how much they're spending and this is the right time to be building infrastructure. that's a good message to hear that i wish the country was taking a look at that. >> it's funny, when you asked the cap ex question. i had to cut cap ex by x this is when you have to be like chipotle, spend, take over take over the world. but, look, he's got it down. he's in a very competitive space now. remember, at&t said yesterday they have no problem paying their dividend we haven't heard from t-mobile lately but, wow, they're on

fire it's an industry where you can own any one of them. really interesting. >> jim thank you. great to see you. >> absolutely. >> see you again coming up at the top of the hour. thank you. andrew. >> thanks, becky we just got the number nearly 3 million new claims for unemployment last week and as we talk about the future of work and what that evenly looks like and the state of the economy and so much more, we're privileged to have eric schmidt join us he's the co-founder of schmidt futures. eric, great to see you we did just get these terrible numbers crossing the tape this morning. before we get to some of the future of work issues that i know you're grappling with in the state of new york and elsewhere, i'm curious what your own time line is in terms of how you're thinking about the economy returning. >> good morning, guys. the core problem here is you have to solve both the health problem and economic problem at

the same time. so far the rate of infections across the nation are not declining in a substantial way the way to say that is the same number of deaths next week as last week, that sort of thing. and with the decrease in social distancing and the improvement in weather, it's not clear to me whether they equilibriate. i worry about the fall and when the flu season begins. >> therefore, are you -- i mean, that's a relatively pessimistic view are you thinking that we're going to have therapeutics and potentially a vaccine on the other side in 2021 are you thinking we're all going to be wearing masks for a very long time? >> i think we're going to be wearing masks and bowing as you do in tokyo for a very long time the core problem is that the country has not eliminated the

virus and the globe has not eliminated the virus it's accelerating in places like latin america and russia and may be accelerating in places like india and pakistan at a horrendous rate in the next couple of months a real look at the numbers which says the current optimism, which we all want to have, may not be justified. the fact of the matter is that we're not treating this as an information problem. the core issue you have is that you don't know whether you're going to get the disease or not. you need some way of knowing whether you have the disease and whether you're likely to get it. the government needs ways to identify the hot spots the majority of the transmission appears to be from super spreader people and events and the ability to build systems that can identify those and go and deal with them -- deal with both community spread but also interventions like contact tracing and so forth that's the only way we're going to really lower the numbers. you heard that in the testimony in the senate two days ago

>> what we're doing with the governor, governor cuomo in the state of new york. new york city represents a majority of the tax base it's a large part of the city and there's a push on public transportation you talked about offices being spread out and work changing, but if work really does change, can you be bullish on the state of new york? can you be bullish on the city of new york over the long term or is it fundamentally going to change forever >> i am very bullish on new york state and new york city in the long term and the governor's doing a really good job of addressing this. he has the data out and he's putting these teams together i'm fortunate to do one of them. the way to think about the next year is we've got to -- in ten

years we have accelerated everything up to one year. all of those digitgital changes that we've talked about, all of them happened in the month and next month as an example, we're going to focus on telehealth, essentially broadband and access to broadband and how and where we work those are at least our first initial three. telehealth, well, 80% of the people are going to the doctor electronically because they don't want to go to the doctor's office in case they get exposed. that's a net improvement in efficiency for everyone. so much more convenient to see the doctor virtually than go to the office, wait for them forever. that seems obvious your previous guest talked about the scale of broadband, how many people are using it, getting used to it those changes are not going to go away. we are going to change the way we work. an example is we're going to have less density in the buildings, at least until there's a vaccine which is probably a year and a half, two years time frame less density means literally more office space, not less.

because of the transportation problem, most people are not going to go into the center of the super cities, they're going to want to go into the hubs. you think of it as a huband spoke system when you reimagine all three of them, you get a pretty good city and pretty impressive state. don't bet against america. don't bet against new york state. we are innovators. we can solve this problem. >> would you though bet against super cities as you describe them over the long term meaning do you think this -- i know so many people who grew up in the city, i grew up in the city who are now talking about not just for the next year or two, they're saying maybe i should move to the suburbs, maybe i should move farther out. if you move to the suburbs, a lot of people take public transportation to move back to the city if i am not going to the city and i can't participate in the active life of the city in that way, that the value proposition changes? >> i would argue differently

i think that the city will reemerge even stronger but it will be somewhat different there's lots of evidence that the super -- that the super cities, of which new york is maybe the architect in the world, economically in terms of creativity, people are social, they need to be physically next to each other, near each other, we will stop pressing the elevator buttons we will stop holding onto the bannisters quite as much some of the interactions will change those are probably permanent but from my perspective, we're not all going to move to the suburbs. the cities will stay there and emerge in a different way. i do think we're going to have to make some changes for example, the buildings in new york, you want to increase the air handling, put in filters for the air, those sorts of things for the subway, people are going to be wearing masks, right as dirty as the subway cars are, the disease is not from the subway car, it's from transmission the vast majority of transmission is person to person >> one of the things we've been

talking about all morning, and we talked with tom friedman about, is schools though and how you get schools back up and running. they're such a critical component to the economy because the parents are stuck at home trying to help their kids to school over zoom or virtual school it means they're not at work how do we confront that challenge? especially when it's -- when some of the data suggests that kids are not having problems and then there are these anecdotal terrible stories, i think it's really raised questions for parents. >> there's lots of evidence that the kids can transmit it, they can actually get infected, they just don't show the symptoms so kids are not immune to this disease. no one is. everyone is eligible for this dead virus, if you think of it that way so if you look in europe, schools are beginning to reopen with various adjust. >>, more sort of physical constraints. they are doing duel shifts and so forth it will be incredibly important

for all of the schools in america, in particular those in new york city, to open up by september. i just don't think we can get the economic productivity that we need if we're forcing everybody to stay home, to educate their kids because we can't get the teachers and kids together that problem and transportation problems have to be solved >> right. >> now remember with dedense si if i case you can solve a lot of these problems the tools of 1918 that we had in the last pandemic were social distancing, wash your hands a lot and wear masks they had all ditys which were interesting. we have the same tools as 100 years ago. there's much research, i funded quite a bit of it myself, in accelerating both vaccines as well as anti-virals and treatments and so forth. we understand much, much more about this disease in record time in biology. it's a huge, huge boon to that the fact of the matter is those are the tools that you have. when you think about how you behave, what can you do? wear masks

i'm shocked when the governor doesn't require these things it seems obvious because it's -- the mask helps me not spread it to you washing hands. social distancing. and being outside. >> right what should -- what do you make of what's going to be a battle, i imagine, across the country as businesses restart and ask their employees to come back to work you're already seeing this battle, if you will, play out with elon musk and tesla as an incentive, inducement, some people might describe it as bullying, they're telling some of those employees if you don't come to work, whether you feel comfortable or not, you won't be able to get unemployment insurance. how do you think that that's going to play over time? because there are a lot of businesses asking people to come to work, some of whom are going to be desperate to come back to work, some of whom are going to say for whatever reason i don't want to? >> it's never a good idea to force your employees under fear

of losing their jobs to come to work it just doesn't produce the right outcome. the reality is that corporations broadly are going to find themselves in roughly three c categori categories people who are literally cannot go to work because they have kids and so and so forth and son people who don't want to go to work or they are worried about exposure because they have comobidities and so forth, and people who are just dying to go to work, they can't wait to get out of the house my guess is you'll see pods of people this group will be in this remote place this group will be in the central office these people will never come into either because they have legitimate fears until this get resolved, these teams will organize in virtual pods and work it out employers will have to give employees some kind of flexibility. if the answer is employers are going to be forced to come to work, employees, in order to do their job with a genuine fear of

infection and significant health problems it's going to be a tough time. >> what do you make of the way you think the world of technology is going to be viewed when this is all over? going into this pandemic, there was what was called the techlash, the backlash against technology now it's so clear we're as reliant as ever on amazon and google and so many other technology companies some of that may play in their favor, but you're also seeing lots of criticism and critique still of amazon, for example >> well, any big company is going to be criticized, and the fact of the matter is try to imagine your experience in this pandemic right now without these tech companies so let's give them a little bit of credit. most of them are relatively inexpensive. people are now relying them in a way, it used to be that the internet was optional. you could live with it or live without it now you really need it to get through the day. you need it for food, you need it for information, you need it for employment

one of the goals we have is to make sure everybody has acsecess to that. if you look at overall new york state, there's a real disparity of access to these things. you can't participate in the economy without a digital connection now it used to be you could. by the way, one of the things the government should be doing as they think about how to deal with stimulus is they need to do a significant infrastructure bill, and that infrastructure bill needs to include access to technology of one kind or another and communication around the country. this remains a problem, especially in rural areas, and it's really a disadvantage as a country, we want eke wnt opportuni equal opportunity for everyone think about kids being schooled at home where you have no access to cellular or broadband the parents are reading textb k textbooks. it's a problem we need to address that and

quickly. >> geopolitical question within of your roles in google, you spent a lot of time traveling the world dealing with countries like china and making some very difficult decisions in the process. when you look at what's taking place now, the posture that our administration is taking towards china, what do you think the appropriate end goal or end result should be given what's happening here >> so you would thing that when we had one common enemy around the world, one common enemy, literally, this virus that's killing millions of people all around the world, we would unite. instead, we have decoupled the cost of the decoupling is quite high some of the decoupling will make sense. we'll have more resilience supply chains, more manufacturing in the united states that's all good. but the tensions are not good. all of these countries have huge militaries they have all sorts of ways they play to their domestic politics and can do negative things it gets really important that we

understand as you decouple from china and they are perfectly capable of building their own ships and their own software, they're not coming back, and that hurts us. we're stronger globally when we have a common information platform, when we communicate with each other. the net of this is we need more communication, not less. less positioning against, and figure out ways to collaborate we're never going to be great friends, but we can collaborate on common problems such as the pandemic >> but how do we do that if we don't trust them >> well, you can -- in business, you have all sorts of examples of people who have been able to work together without trusting the other company. why can't we do that on a nation state level. you have to have diplomats who can sit there and argue through this stuff it is in america's interest that american platforms in particular all the computer platforms and networks platforms spread globally it makes no sense to block that. so the way i think of it is, when we compete, we want to win.

i strongly believe that american technology can win against all of the other challengers around the world because we're so good at this. so we need to get on a footing where we try to get these countries, including china, to use our platforms, not the opposi opposite >> okay. eric schmidt, always good to see you. we appreciate you joining us this morning thanks, and good luck helping the state of new york and the rest of us all try to figure out what comes next. thank you again. >> thank you all >> you bet >> futures sitting near session lows right now the dow is actually down by over 300 points s&p down by 30 the nasdaq down by 71. when we come back, we'll get you rey r e adg y eaadfothtrindaahd.

welcome back, everybody. the big economic release of the morning, u.s. weekly jobless claims up by 2.9 million in the last week. that brings the crisis total to 36.5 million american jobs lost. watching the futures this morning, which had been a little weak before we got the numbers, now the futures down by just over 300 points. the nasdaq off by 70, and the s&p down by 30 also been watching what's been happening in the treasury market, and joe, you have been keeping an eye on that >> keeping an eye on that, not really, but they want me to say it anyway. yeah, i have i am, i am, becky, keeping an eye on the treasury market we'll take a quick look. .61 on that, not negative yet wonder if that's really coming take a look at oil prices, which have been a bright spot, if you want higher oil prices if you think that's going to help the equity markets, but it

has had a diminishing effect on stock prices you can see, it's not helping today. so i'm trying to add up 450 plus 500 is 950 plus 300 is 1250. so we're leak aglittle oil here in terms of the rebound after the lows and we shall see what we shall see. obviously, it has a lot to do with what happens. what's new york and new jersey -- they're doing something. they're opening up a few things, which i was surprised to hear yesterday. i know the hollywood bowl -- >> national parks opened last weekend. not national, state parks. >> i don't understand what california is going to do with the colleges and i don't know -- i have a daughter in an ivy league school am i paying that tuition for her to sit and look at a screen. i guess i am you are paying that tuition. >> private schools, people paying those tuitions. >> the degree is worth something, but the quality of

the education can't be the same, can it >> i doubt it. i mean, look, our teachers are doing a great job with at-home schooling we're getting, but it's really hard when you're not in the classroom with other kids it's lonely. it's difficult >> andrew, what should i pay >> pay, you dummy. are you asking me or dum andrew? >> see you, becky. make sure to join us tomorrow. "squawk on the street" is next good thursday morning. welcome to "squawk on the street." i'm carl teent ania with jim cramer and david faber futures are red as jobless claims are another 2.9 million that brings the total to over 36 million. nasdaq is back in the red. oil, interestingly is higher the out look has improved somewhat but jim, obviously, both yesterday and today, the market really wrestling with the