it used to be and prefer netflix here majority of the business disney that is is obviously exposed to social distancing headwinds and netflix is kind of getting stronger and bigger on both the revenue and earnings line and they have the scale and pricing power. >> all right good stuff thank you. that does it for us. kelly picks it up now. thank you, scott hi, everybody. welcome to "the exchange" today. look behind me the nasdaq is major average been in the green this morning but the s&p just joined it just turned positive, fluctuating right now we'll call it for the s&p 500 the nasdaq up 58 the dow down by a third. here's the trend playing out underneath the surface to watch. the at-home trade is back with zoom up big. moderated to a 4% gain netflix up fractionally and all-time high today and retail is losing momentum walmart entirely given up the earlier gains and kohl's is

worst stock in the s&p 500 we'll have more on retail in a bit. powell and mnuchin just wrapping up congressional testimony and we begin today with steve liesman here with the headline that is all investors need to know. >> thank you both defending the government programs and their enactment of it with really answering the critical questions about this public debate. how soon will the money get out there? is it going to the right people? is it enough or is more going to be needed? that's a critical question i think investors are following. powell was asked where that main street listeneding program is which the fed has yet to launch and talked about the difficulty of the fed getting it together. >> main street is in a class by itself really. very diverse, small, medium and large companies, very different industries with very different credit needs some of them asset based or cash

flow based and a complex undertaking. >> powell did say that the main street program and the municipal bond program where the fed help the states coming the end of the month. they were asked a lot of questions whether state and local governments have enough assistance and whether or not they could be cause for the economy suffering another bout of weakness because of the layoffs at those levels. mnuchin asked a critical question is treasury taking enough risk with taxpayers' money to help the economy? >> the way these facilities work is in the facilities that don't have any credit risk such as the ppp i approve those without capital allocated by definition any facility that the fed believes putts them at risk i do put up capital so by definition that capital is at risk and we are fully prepared to take losses in certain scenarios on that capital. >> i'd say there's a bit of a

difference between powell and mnuchin on this. powell seems more concerned about the outlook, seems or the leaning towards the congress doing more, giving the fed more authority to do more mnuchin more patient, wants to wait and see how the current programs work and still has $259 billion appropriated by congress for him to deploy in the federal reserve. >> thank you very much that's steve liesman. here to talk about the testimony and what's next in washington, tony fratto with hamilton place strategies and libby cantrill at pimco. sto tony, steve said the fed is concerned of doing more and you made the point that it's two months and the main street lending program isn't up and running. >> you get a sense of frustration out there. you see the two programs juxtaposed against each other. the ppp that people thought was chaotic and rushed out by

literally put out into the economy something close to the entire pentagon budget in a matter of weeks which is really pretty impressive. imperfect as it was. you get the sense the fed is trying to be perfect to avoid the pitfalls that accompanied ppp and the perfect -- an opportunity to be the enemy of the good here because we know that there are firms out there like the shake shacks and others who are in that middle income mid cap category that, you know, probably having some strains in getting financing and they could use the program. it's been a while. the c.a.r.e.s program passed the end of the march now looking at june there's frustration of the senators. >> libby, through leverage of the banking system could be up to $6 trillion into the u.s. economy and not a dollar of it started yet. we are starting to hear more from companies concerned of what

happens after the eight weeks of ppp funds runs out or the three months of mortgage forbearance and we got the first round into the economy but what happens when those run out and we are still facing, you know, a hurt economy? >> yeah. kelly, it's a great question i think something that's important that steve underscored here and the secretary also underscored is they have a lot of ammunition left right? congress appropriated $450 billion to the treasury for the feds facilities. pretty much giving the fed incredibly broad authority about what they can use that money for. still they have only been able to announce not even necessarily operationali operationalize facilities that amounts to $200 billion and as steve said they have $259 billion left of kind of dry powder so a lot that they can

still do here but as tony pointed out and this is sort of -- anyone familiar with the fed knows that this is sort of their ethos to be very deliberate, very thoughtful and even though this is feeling look it's forever only been eight weeks or so and so the fed i'm sure thinks they're moving as quickly as they can but, of course, you know, the markets and the pandemic are not necessarily waiting so i think the bottom line here is that there's more that they can do and they may have to politically be forced to do but they are certainly taking their time and trying to do things that they have never been done before. the main street funning program is a perfect example of that, trying tooperationalize the complicated nuanced program and again sort of unchartered territory trying to be as thoughtful and deliberate about proceeding. >> tony, let's go back

this is two tracks here. there's what the fed does and congress does and we talked about what the fed could do. what about congress? a lot of people kind of have dismissed the push by senate leader mcconnell of the liability shield as not maybe doing enough to help the recovery although arguably could make all the difference of businesses feel like they should try to reopen and being concerned that those efforts will be met with litigation, lawsuits if anybody gets sick they, of course, not only feel terrible and might be held responsible so where's that priority seeming very far away from speaker pelosi >> a significant concern for businesses there are a lot of significant concerns here. the concerns that states and municipalities not sufficiently funded to get through the rest of the year given the ability to raise money and borrow in the ways that they can do that the businesses with the liability shield and this, you know, what's going to be

undoubtedly a herky-jerky reopening for so many businesses, it is hard to imagine the businesses that reopen, the ability to open at something like previous capacity is pretty remote they're going to be operating at 40%, 50%, 60% capacity and hard to make the economics of the business work that way so they want the see this coming but, you know, the thing that drove the last, you know, whatever we call it phase 3.5, was money running out of the ppp program so that's sort of that clock running down knowing that the money running out and created the political impetus to go get more money with that money still sitting out there and running out very slowly it is hard to see where this happens until we see states actively laying off people and the reopening if it's going too slowly and firms are making

decisions because of liability or lack of demand that they're not able to really get going. >> right. >> i think that's what we are going to need to see before phase four happens. >> which, libby, feels a little self defeeted. how likely do you think we get relief how big, how urgently to get the measures passed? >> we believe it's additional stimulus is still a matter of when not if. we think that there's enough political pressure certainly from blue states but also from some red state governors and to increase funding remember that states have only gotten $150 billion out of the almost $3 trillion appropriated over the last four pieces of legislation so i still think that we'll see more additional funding but to tony's point there may be not necessarily a forcing event like with running out of ppp so this may take

longer but we still think we see this in the next few weeks so probably by summertime we'll see congress act not be $3 trillion bill that speaker pelosi introduced but likely funding for states and mui in it palties and political pressure for congress to do more on the individual relief side, as well. >> well, a couple of weeks that is an interesting time frame, maybe sooner than i might have thought, help for state and local governments. thank you. talking through the next phase of relief from washington could look like. let's get more on the market moves with the nasdaq 5% now from the all-time high we check in with bob pisani. >> and, kelly, powell and mnuchin didn't really move the markets but the fed is not out of ammunition. theis a main reason the market is holding up. the market believes there's a floor under the market because of what we could call the fed

put here you see the dow, this is sort of a consolidation day. either side of positive or negative the one consistent thing that we have seen is big cap, mega cap let's call it, tech outperformance and again today just like all up today, the big five are all up. apple and facebook only 3% from new highs and a big reason why the nasdaq 5% from new highs what's disappointing about today is no follow through on the broadening of the rallystory i talked about yesterday particularly on banks. regional banks, some up double digits giving up basically 30% of the ga gains that they had. same with energy stocks, they have been in little bit of a range. came off the lows the end of march and had a nice rally yesterday. same story here, falling back.

can't get rallies in the sectors like energies and bank the broadening of yesterday not much in evidence today call it a consolidation day. back to you. >> thank you very much. the markets like he said unable to follow up for the most part on yesterday's rally and trying s&p fighting into positive territory today. the highest readings since january and shows you how sentiment is changing. i'm joined by julia coronado and david leibovitz. david, i'll just start with you. the fact that we are 5% off the highs on the nasdaq tells you what exactly >> so i think it's really interesting because if you had gone to sleep a year ago and woken up today i think you wouldn't necessarily have an idea of the volatility that we've been through but i think that what we're seeing here in terms of tech and the outperformance of the big

growers is really twofold. the first thing is that they have a bit of a tail wind giving everything that's going on more people working from home and doing things remotely in general. that's supportive of the tech sector and i think that the more important point and we get asked this question by clients quite often is think about the world that we're going to go back into when all of this is over we'll be right back in the world of 2% growth, structurally low inflation, very low interest rates and that's the environment that got tech to where it is today over the past ten years and so i think what you're seeing is there's both a short-term case and a long-term case to be made for the continued outperformance of the big growers and why you see the nasdaq close to the peak earlier this year. >> an interesting point and makes me wonder of two of the pre-conditions, low inflation and low rates. yesterday the fed futures going negative where are you on the prospect,

possibility, desirability of the negative rates >> the negative rate debate is not an active one at the fed they have been very clear about that, that they see this as a weak tool with a lot of logistically complications given the structural of the financial system so as you a want to use the most powerful tools on the shelf and continues to be in their mind bond purchases and the credit programs that they're focused onramping up and they have a lot of work to get those fully functional and pumping credit into the real economy and that's an area of focus. >> what do you make of the market signals then? should we read them as it can call should we read it as demand for treasuries that it's possible the market to push the rates negative regardless of what the fed does with the benchmark? >> that is possible.

and we do know that the fed is going to be aggressive in its purchases of treasuries so i think we know in terms of the low inflation, low rates i definitely think that is the right characterization of the environment we're going to be in and then there is the theoretical debate it is a debate that legitimate economists are having. it's a policy that's been put in practice elsewhere in the world so it's not unreasonable but not front of mind for the federal reserve so if we go down that road it would be at the earliest a couple of years from now really the bigger hurdles too for the fed right now are these credit facilities and as your last segment discussed actually getting money into the hands of businesses and consumers that need that bridge financing to get to the other end of this this ramping up, i think what powell is very clear about is that this ramping up process is going to take quarters, years,

not -- it is not going to be an overnight v-shaped recovery by any stretch and i think we are seeing that. they're hearing that from the business contacts and i think that's where his focus lies. >> yeah. i honestly wonder, david, if the fed wants to lend at all that is the vibe i can't help but get by the conditions and terms and overly cautiousness, cautious way to roll this out. which i guess takes us back for a final comment if you would on the different sectors. this program is potentially helping publicly traded companies. but you said you like technology for all of the reasons that everybody else and you well mentioned. when about health care which is some ways hurt as much as helped by coronavirus what about energy? what about the banks what would your thoughts be on the other parts? >> yeah. absolutely i think when i look at the more cyclical value sectors, some you mentioned, things like energy,

financials, those sectors tend to outperform when economic activity is accelerating so there will come a time to position with more of a cyclical tilt and not sure it's necessarily upon us right now. i share some of chairman powell's concern about starting the economy back up and some of the challenges that we are going to face here over the next couple of months but in the interim we are really showing a preference for quality we like tech as i mentioned earlier. we like health care, as well we are trying to different yate within the health care universe of large cap preference and focusing less on the medical device providers and so we're really trying to balance quality and cyclicality to ride through a value till next couple of months and then be in a position

to ride that big market move higher as the economy comes back online and as those cyclical sectors outperform the way they have during big stock rebounds. >> it is quite a feat to pull off. very complicated environment david, julia, thank you very much today appreciate it. we have a news alert on facebook let's get to julia boorstin for that. >> facebook ceo zuckerberg saying facebook shop for small businesses and a big push in e-commerce now this new tool enables businesses to set up a store front for free to sell products across facebook and instagram and be able to complete a purchase on the sites or on the facebook platform and facebook's making it easy to shop from live videos facebook shares now up 2.5% at session highs. shopify, the shares falling and etsy facebook will charge a small

transaction fee and the real opportunity for facebook is driving ad revenue from these businesses facebook does rely on small businesses they're the vast majority of its 8 million advertisers and they deliver the majority of the ad revenue. >> thank you very much share us up about 2.5%. coming up, honey do list one of the guests says it's a big spending shift ahead for retail, joining us to explain why and who will benefit from this. plus ripe for con sop dasoln deal making in the banking sector and who could be on the shopping list. "the exchange" is ba itwckn o. where will you go first?

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welcome back check out shares of walmart which turned negative after being up about 5% earlier after reporting its earnings the company said it nearly doubled online sales in the first quarter. but not enough to impress investors today. the next guest said that shift is one of the three lasting consumer trends to watch i'm joined by simeone gutman is the honey do list an outdated notion we were having a discussion. you need help around the -- i'm jumping ahead but talk us through what you think the lasting consumer trends are. >> yeah. i would divide them to three and these are the mega spending

shifts we have seen since the beginning of this pandemic first channel share shift. picture this about 16% of all u.s. retail sales is done online that means 84% is still in store. we have basically jamming that 84% into that 16% channel. that's part one. part two is where you refer to this honey do list this is the wallet share shift we are sitting at home more, staying at home, eating and working at home. things break more and the more we sit around and reflect to do things in the house. homes have -- average home value $300,000 appreciation $6,000 a year this seems like a reasonable activity to do while we're stuck at home. >> absolutely. so, you know, i guess we have a usual beneficiaries and then the third one which is about scale and the big getting bigger but stick with the idea of fixing up your home for a moment you know, home depot, these stocks have been some of the

best performers but are lags in the market today how much is priced in and how much of this is truly lasting? >> yeah. i mean, look i think a lot of it is priced in the market in general is already looking past 2020 earnings and they're looking to 2021. we know this year's going to be a little aberrational given some of the trends and closures and reopenings et cetera right now pricing in pretty good recovery in 2021 that's reasonable. right? the other side for a pretty good sector that's had pretty good pricing, pretty good scale players makes sen. that being said there's more 0 of a premium for the scale winners. right? starting to see separation so it's somewhat in that good news but i think investors seem to be taking the bar bell approach you want to be exposed the some companies that have a cyclical penetration and i think that's where home depot and lowe's come into the picture. >> are there other surprising names on the list and where does

walmart fall >> yeah. so walmart i would put them in the ultra defensive camp that was the stock-up phase of the crisis and that is generally been the safe trade also benefiting from the scale trend and i think that was the theme of their earnings this quarter is gaining new customers at a rapid rate and manage the profitability relatively well. not everyone wants to still own companies that sell a lot of food some point we are going to switch from the stocking up and staying at home to more of the cyclicals and walmart fit that is paradigm. >> who else would be on the list what kind of names would you avoid going forward? >> so on the list we are bracing for the next couple of quarters being pretty difficult from a consumer perspective that's -- once of the stimulus wears off, unemployment insurance wears off in theory we'll be in a recession. some sales results pretty good so far the names where -- we think are

defensive and offensive auto parts like autozone, a name defensive with good top line and margin growth we think is dollar general. walmart as i mentioned being bar belled on the safety side and then looking out home depot and lowe's. >> auto zone we were just talking with dom chu about trying to change his oil tan line is out the block. is that what you're referring? >> oh yeah, yeah just carry over this honey do list to some degree to the car right? it is something that either you can do outside your house, something to do outside one of the auto part stores but fixing up the deappreciable assets and the home and the car tend to be number one and two in that order to be fixed. we are not driving the cars as much miles driven down 20 but during downturns we typically see

people don't buy new cars as much and then the existing car fleet tends to age and we have to spend more money on the existing cars. >> i have seen more car tinkering and washing on my block than the past several months thank you very much. we appreciate it. >> thank you speaking of walmart, don't miss the exclusive interview of doug mcmillon tomorrow morning. second day of positive news in the airline sector. positive the news and the market reaction is ahead. ktw advised on the bank mergers seeing an acceleration of consolidation in the sector the ceo will talk about why and where more may be coming watch or listen to us live on the go on the cnbc app "the exchange" is back in a couple

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welcome back let's get the very latest in the coronavirus pandemic over to sue herera for our headlines. sue? >> thank you, kelly. good afternoon, everybody. here's what we know at this hour there's a new study showing that at the height of the coronavirus restrictions in early april daily global carbon emissions dropped roughly 17% from last year scientists say it could be the largest worldwide drop in recorded history. at least 270 new york city public employees have died from the coronavirus including health and ems workers. mayor deblasio wants to give the families death benefits usually reserved for first responder who die in the line of duty. and the worst of the coronavirus related layoffs for small businesses may be over according to data from payroll provider gusto after spiking 1,000% in march, layoffs leveled off last month you can go to cnbc.com for more on the impact on small

businesses see you next hour. back to you. >> see you then. thank you so much. as more states reopen, contact tracing could fend off new outbreaks. we'll speak with a company launching a new app to help do that. venture capital piling into an area of tech expected to be worth $500 billion in five years. coming up, don't miss an exclusive interview with the kohl's ceo on the results tan outlook for the consumer the stock is laggi tay ayitusngod wasting time. that's why td ameritrade designed a first-of-its-kind, personalized education center. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now, you're binge learning. for a limited time, get up to $800 when you open and fund an account. call 866-300-9417 or visit tdameritrade.com/learn. ♪ truly transformative sleep.

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welcome back to "the exchange." let's get a check on the markets with the s&p up by couple of points see how the car oil change is

going, too. >> yes my oil change, for sure. take a look at what's going on with the s&p 500 sitting around the 2950 mark. that's an area of slowing momentum for the market overall. just want the show you that slowing momentum in the s&p 500 as you take a look at the charts there. if we can bring it up. or not we can just ditch that take a look at the sectors overall. discretionary, technology, communication services, outperformers. yuletities, financials and energies under performing. some of the stocks to watch today, check out what's happening with upgrades driving things with peloton shares, also beyond meat shars. and advance auto parts also there on earnings and much better same store sales and watch them on the move today back over to you. >> so artful as always

dom, thank you very much. let's check in on the banks. a rougher go for them as low rates and lack of consumer spending weigh on the sector many names are down more than 30%. my next guest said that will accelerate consolidation in the space. let's welcome in president of kgo. great to see you welcome. how big -- get me excited. what kind of consolidation are we talking about >> first of all, thank you for having me on and good afternoon. first of all, we have to get through this period of understanding what's happening in the economy and with stock prices where they are that the moment i don't think it's a big moment in consolidation but once we get past the shutdown and get orderliness into the market our view is that the pressures that

were there that were causing about 5% of the industry to consolidate last year are going to come back even stronger and i think it really comes down to a couple of things the bigger banks have established themselves generally as more profitable than the smaller banks. the second thing the digital adoption during this wave, i heard a conversation earlier about tech enablement, the industry's done a great job of connecting itself digitally to their customers in this shutdown and only going to accelerate the investment in those type of services which i think is going to lead to the scale argument which will lead to more consolidation. >> talking with some experts on this seems like the most likely acquirers could be pnc bank with a high valuation right now, usb with a lot of cash maybe they could go after one of the kind of bigger regional banks. something like that. what would it take to see one

approach a goldman or a morgan do something a little bit more -- kind of thing to thought was unthinkable just a couple of years ago. >> i'll take a couple of things in there pnc did sell ownership in blackrock last week and say strategic opportunities is one thing to think about and that's out in the public. i think the way to look at this is, this selloff in the industry has caused winners and losers from a stock valuation standpoint and pretty simple look at the stocks that had better priced to tangible book valuations and those that don't to get an idea of who can be a buyer in this market and i think that that's where you look for a signal other thing -- >> go ahead. >> the bigger banks is that the whole thing like you mentioned with goldman, the bigger bank consolidation happens much more slowly the universal banking model works and goldman brings great

capabilities to a combination so i think you will probably see more banks looking to invest in opportunities to do more with the customers via investment bank. >> that's interesting. goldman to bring that investment banking relationship in consolidation. these are the names that have the lower valuations, did godmans, the morgans. >> right. >> the environment being what it is, it makes it hard to see them as the acquirer and hard to be thought of being acquired and the names go away. >> we are talking about the back end of this. i would be surprised -- typically recessions are not periods where you see a lot of healthy bank m&a and so i don't think that's going to happen now. what we're talking about the forces that are aligning itself to what happens on the back end of this. and then another thing i'll say is that we think the operating environment at the end of this to include very low interest rates which means banks that are more spread dependent will have more pressure on them to think

about combining with banks that have more fee income and the banks can -- we saw more merger of equal type transactions last year and see those mergers as we roll out of the recession. >> final question to you is where does fin tech fall into this you have a lot of new players with a lot of new technology on the scene. how does that affect the kinds of deals to see happen >> it's fascinating. fin tech is critical tech is everywhere also, too, i like to think about the arguments we aren't hearing. we aren't hearing in this crisis there's a problem accessing the bank i had a problem getting cash because you can do so much digitally and it tells you how far the industry's already come with this whole digital enablement fin tech is here i believe some of the best fin tech companies in the world are the american banks and if you look at the biggest ones, they have

fantastic offerings and i think there's more consolidations. i think banks will be looking to be buyers of fin tech companies and there's a lot of fen tech companies who want to be banks because of the great stability deposits offer. >> exactly. >> i look to be a lot of action between the two sectors going forward. we have been investing in research and capabilities in that area seeing it happen and will happen more. >> i wish you could give me a specific like we hear this deal is going to happen i know you can't do that but i wish you could. >> i'm sure you're well aware of the reasons i can't. >> thank you very much for your insights. >> have a great afternoon. >> president and ceo of kbw. still ahead, medical experts agree that contact tracing is an important part of stopping the spread of coronavirus and privacy concerns about this. we'll get a look at an app that promises to be privacy first coming up. also, telemedicine is a sector that's growing in this pandemic and one company just pulled in a huge round of

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welcome back the digital health sector's expected to be worth more than $500 billion by 2025 it's within of the few sectors of the economy growing in the pandemic and as a result of it cnbc's christie farr is here with details on a company giving a new huge funding round christie >> hey, kelly. the latest company to raise financing in the space is armada health pulling in $57 million and use the fund to buy a company so this is some news that almost seems normal in the midst of a pandemic and also a recession but digital health is doing extremely well right now and omada is raising money and others are calling them up to put the dollars into the space because people don't want to go

to a doctor on site right now. they want to use the smartphone, their laptop to seek medical care and these problems aren't going away just because we have a pandemic >> we have a couple of big publicly traded companies, teledoc coming to mind incorporating visits into the technology and so forth. how's the landscape shaking out? is it still a lot of small players? do you think that we might see a lot of consolidation here? because again, you are absolutely right a lot of people are using this for the first time amid coronavirus. >> yeah. it's a great question. a lot of these companies got the start more than ten years ago and growth was fairly slow because health care is a sector that's extremely challenging to break into for a listening time some companies weren't able to get reimbursed for the medical visits online and started to change drastically because the federal government loosened up the rules and regulations and

basically told doctors to start to get paid on par with an in-person visit so i'm actually expected to see a lot of m&a, i'm expecting to see ipos because these are companies that have been around since 2009, 2010 and their investors are probably itchy at this point to see a return on the money and now actually seems like a decent time for some of these companies to raise those final big rounds and then potentially go out later in the year and the ones that are in the public markets already, one medical and others are doing very well and have continued to grow in the pandemic so i think you will see a lot of activity around digital health in the next year or two. >> yeah. interesting what you said, so they had to basically -- what were you saying about the reimbursement? the technology existed but it sounds like that's a big rule change. >> yeah. that was one of the big rule changes and another one was just allowing doctors to be able to treat across state lines previously they had to go and

get license and that was a process to take a few years, cost hundreds of thousands of dollars so that's relaxed. that for reimbursement and the fact that consumers are starting the use the tools and from what i'm hearing they're liking it. once you have that exposure and you're able to see a doc on the smartphone if there's -- if it works and told to get a prescription right there from home or you can get the treatment that you need why go into the doctor's office and wait in a room to see someone for an hour? it is a much more convenient experience and the consumers seeing it work and i think it won't go anywhere. >> yeah, no. i hear the stories all the time now of people so grateful to get medicine without having to go through the hospital or through a doctor's office. thanks coming up after months of cancelations and record low traffic airline bookings are picking back up.

have they hit a turning point? we will have the latest on that next

welcome back we're continuing to see signs of life in the airline sector southwest says new bookings are outpacing cancelations delta seeing an uptick in bookings, as well. see the stocks rallying today and following united announcing to resume major routes in june phil >> kelly, this is not surprising we have been hearing about this in the industry over the last i'd say week to two weeks that gradually the number of cancellations were coming down, number of bookings while nowhere close to last year is gradually starting to increase and as you take a look at southwest, what's

noteworthy is an 8k and said bookings are outpacing cancelations for may the load factors, number of people on the plane, gradually starting to improve and revenue down 85% to will still with dow to 90% that's an improvement compared to what the company was prooe s previously expecting we're still way off of where we were a year ago. at the bottom, you can see there was a gradual increase over the last month it's up to 145,000 people that were flying. that's an improvement. look at shares of memamerican, del delta, jet blue and united all of the companies are at a wolf research conference where the airlines are giving an update you have delta saying it's gradually seeing improvements.

you have united saying it's planning to bring back more capacity in july you do not want to miss this interview. this is a cnbc squawk box exclusive. we'll be talking with scott kirby. it's the incoming ceo of the airline today. tomorrow morning, he will be the ceo. we'll be talking to him about the state of business. another big interview. this one with john plueger ceo of air lease it's one of the major aircraft leasing company. a lot of airlines are deferring and cancelling orders. we'll talk about that. you do not want to miss this it's great morning of interviews in the aviation industry you have scott kirby on squawk >> we got to go but do we own a

share of these companies where do we stand? does taxpayer have equity in these airlines >> yes the u.s. received warrants from almost all of the airlines they took an aid package from federal government >> something to keep in mind as we watch them try to fieg back thanks appreciate it. tune in tomorrow morning still ahead, south korea was applauded for its successful contact tracing efforts. earlier today it could be a good system for every one to adopt. >> i think this contact tracing is a really big deal having the ability to know that you've been with somebody who had this and self-quarantining yourself could be a game changer. >> we're going to talk to the president who is launching a new okikhe andheabout what it could lo le re t privacy implications that's right after this break. (soft music)

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welcome back 47 states are in the process of reopening including ri ahode d island they allow no more than ten people, out door dining, open retail stores and contact tracing. rhode island has been work on these tracing capabilities since april. joining me now is robby. thank you for being here >> thank you for having me >> i think apple and google might be trying to partner on some effort there. is this technology i'm going to experience on my phone or how

will it work >> thank you for the opportunity. as i start talking about it, emphasis tobe extraordinary an supporting mission critical work for our clients and staying safe in the last few years, we set up six centers in the u.s. and rhode island is one of them. we partnered with the rhode island state to support the communities we work in and let me just get into the contact tracing app which we worked in partnership. the ad by itself is not enough, but it kind of works on four pillar as you get back to work safely and the state reopens the first is testing the second is hiygienhygiene.

the contact tracing app in rhode island works in conjunction with the other three pillars. the governor and the extraordinary team of rhode island was very particular we seep the data announcement we keep the privacy at the top level. >> how do you balance? you're saying they wanted to be anonymo anonymous. as i understand it, the whole point is to know who you've been in contact with. does it simply use -- is it bluetooth. what is the technology that knows where it's been? >> it's a location geofencing. it has information like testing and symptom checking and everything else and it has

location which is not even in the world fp the location is an opt in for any citizen we were very sure that because of privacy concentrations, it has to be an opt-in for the user the opt-in allows the user on a citizen of the state to despite the locational data. which locations they have been in and how much time they have spent in those locations if by any chance, any of them gets infected and they decide to share the data with the health professional then it is a choice the user has this app has been built with the user in the middle and the user having options to opt-in and having options to release with health professionals

it works in compliment with the app and takes the data and supports the contact data mechanism. >> is this a free app? is there a cost to this app and how do people download do you expect it to be used in other states >> the app is free we used location based tracking platform which we give it to the government the government led the effort. the app is available to any citizen who wants to be safe and wants to purposely keep the other citizen safe in the state. >> great again, it might be a small state but a template of what many others will experience whether using your technology. thanks so much for joining me

today. we appreciate it >> thank you for this opportunity. that does it for the exchange. i'll join tyler mathison for power lunch which begins now thank you very much. we'll see you on power lunch in a moment from the kitchen once again. welcome. glad you could join us volatile session for stocks after yesterday's big rally. fed chair powell and secretary mnuchin reiterate they are prepared for more pain mixed bag for retailers that came out with their earnings online sales helping to ease some of the discomfort but stocks are lower kohl's down 8% we'll have the ceo of kohl's on air with us in a few minutes time as america