. welcome to "worldwide exchange." here are your top "five@5" as another american investor starts on trials. getting people out and shopping at retailers again a new warning from the w.h.o. to countries enjoying a decline of covid cases. unrest in hong kong. china dropping the hammer on free speech. the u.s. threatening retaliation. >> no luck for richard branson

and his hope to send satellites to space from anywhere in the world. he gets a little support from another billionaire. you are watching "worldwide exchange" here on cnbc good morning, good afternoon, good evening from wherever you may be watching. starting a tradeling week on a tuesday. it is a busy day this will be a big story your mystery stock right now up 20% pre-market. a maryland-based biotech company. nod moderna. announcing they are already beginning work on trials for a possible vaccine we'll give you the name and news in one moment. let us start now on a macro level. there is a lot of green on the

screen state side on this tuesday. dow futures, do you have your coffee yet 530 points that's right the dow already has some mow penti momentum coming off the swing on april 9. also back to business in lore manhattan on the floor of the stock exchange a lot of restrictions but there will be women and men working on the corner of wall and broad this morning also watching oil. it is up more than 70% alone this month, topping the record of a more than 4% gain in 1990 and more than 2% gain in '96. too low for many to make money but does reduce the risk for

mass bankruptcies. after the long weekend here at home, a lot to get caught up on around the world. we'll kick off from team coverage around the world. julianna with news on airlines, eunice nun with information on china tensions and kate in the state with possible news about a vaccine. julianna, we'll start with you good morning >> good morning. european markets are off to a strong start we have gains across the board like on wall street, we are coming off a strong week with gain of 3.5% on friday the dax higher a little catch up trade as we

saw broader markets rally. let's dive into travel and leisure. a massive set of gains for travel stocks. easy jet bouncing about 17%. lufthansa, the german low-cost carrier bouncing more than 5% after they secured the largest bail out iag bouncing tui up more than 30% this comes on the back of reports that germany plans to lift its european travel warning by mid-june so clearing the way of reopening in europe in time for european travelers to enjoy the much needed summer break a lot of optimism coming through in the travel sector this morning. back to you. >> thank you very much now to this morning's developing

story out of hong kong car carrie lam calling for calm. over the law that would limit free speech. beijing will call that law a measure of national security hong kongers call it a total take over. trump saying china will face at least sanctions if that law is imposed. china warning that some in the united states are calling for a, quote, new cold war over the issue. a lot of sides to the story. let's get over to eunice >> thank you, brian. chinese officials are currently on a pr campaign attempting to convince the hong kong public and investors that these new laws are necessary and good for

business the military brass and commander in charge for hong kong included by saying on state tv that the state legislation would benefit the security of the city carrie lam has been attempting to convince the public that the city's freedoms would be protected and not affected by these laws and would not undermine an independent judiciary but would rather set things right for international business many remain convinced. thousands of people took to the streets over the weekend because of concerns over these laws. more demonstrations are expected on wednesday not only about these laws which many believe undermine the entire operation but also the bill that could criminalize what is seen as abuse of the chinese national

anthem the american chamber of commerce as well saying the judiciary is a key reason for hong kong is so successful also investors, brian, have been watching closely what the u.s. is going to do late last week, secretary of state mike pompeo suggested that u.s. could pull its special customs status for hong kong and the chinese reacted saying they would take counter measures. still tension between the two sides. >> more from beijing on that story. seeing powerful images again from over the weekend. more on that story coming. right now, let us get to kate rogers with some potentially very good news around a possible

vaccine candidate. what have you got for us this tuesday morning? >> the w.h.o. warning that countries where new coronavirus cases are on a decline could see, a quote, immediate second peak if they don't follow strict guidelines adding that the disease could jump at any time adding that they are suspending the trial of hydroxychloroquine citing safety concerns president trump has said he's stopped taking the drug as a preventative measure as the peek shifts from u.s. to south america, they are banning travel to brazil any traveler who has been to brazil in a 14-day period will not be granted entry to the u.s. starting may 28. and novavax has started a phase one trial and enrolled

participants with preliminary results slated for july. the phase two portion will be conducted in several countries including the united states. that stock is up back to you. >> giving moderna that attention. what your next guest says is the biggest risk in the world right now even as futures soar more than 500 points. the president threatening one state over its plan to remain partially shut down and why. and why elon musk is offering a little moral support to fellow billionaire richard branson. e thdow is up 530. we are back after this tri-layet that calms you, tri-layet helps you fall asleep faster and stay asleep longer

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welcome back and good morning. 5:12 here. looking at the streets of hong kong where protests broke out over anger still exhibiting social distancing guidelines while they try to protest their frustration. another planned for tomorrow let's get more on this developing story it is big and complicated. people are reacting to china's

vote on what beijing will tell you is a new national security law. the united states and eu all expressing concerns over this. washington is warning hong kong that it could loose prefer tall status and trading to our next guess, ben thank you. it is bizarre. it feels like we are going back to october i was there covering the protests for cnbc. the world had not heard of covid-19 at that moment. at that particular time, hong kong and that growing flairup was seen as the biggest global risk along with the trade war, you think it still may be. explain. >> as mentioned in the preview,

the status that hong kong has is unique goods can transfer through without needing tariffs. there is a fair bit of fnt exposure and real estate exposure we are seeing trading in a mixed picture. because if you do get this, let's say tension boiling up to an escalation, so to speak, when the u.s. would impose this sanctions, they are going to get capital flight that is the biggest risk here at this moment. >> does it seem like, ben, to you in some ways, we are dealing with a global pandemic that when we get through this and we will, some of those existing problems between that increasingly fraying relationship, they will still be there to deal with but the market doesn't seem like

this that it cares very much >> indeed, it doesn't care much now because in a pandemic where a solution is near term. the market is very much about the hopes that the crisis, the pandemic is going to ease fas tore and the reopening is a robust recovery. this has been there lingering and is back to the surface if you are currently investing in the markets, you want to keep this in mind because of the tensions leading to new tensions and economic impact. >> the reason hong kong is so vital to the west. number one, it is the key hold to financial markets people in asia who want western

dollars they have to usually go to hong kong they are not doing it in some of the tech hubs, they use banking connections and the real estate economy on many levels the most expensive in the entire world because prices are on the decline there. that is prone for major correction and exposure for the financial system not just in hong kong but elsewhere. money can move in and out quickly. just what we watch here as we

rally on >> watching some of the disturbing images there coming from the street. still on deck, with most of new york still shut down, one unlikely type of business that is booming we'll speak to the ceo it is probably not what you think. >> announcer: today's big number, 51%. that's how much food delivery sales have jumped from the start of the covid-19 shutdown over the prior year according to data of the trends of the feud delivery companies, doordash is the leader claiming 45% market share

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welcome back dow futures are up more on the markets but there are news out there happening outside the world of money and business including a potential move for the republican national convention we'll join phillip mena for the latest >> good morning. president trump is threatening to pull the republican national convention out of charlotte unless north carolina's governor

can guarantee full attendance is allowed. he doesn't want any virus restraints by august joe biden made his first public appearance in months laying a wreath at a memorial day celebration. in sharp contrast, biden did wear a mask. >> and virgin scrapped the plans to launch a rocket to space from the belly of a plane in a statement, the company said the mission was terminated because of, quote, an anomaly that happened in first-stage flight the pandemic has weighed heavily on bran son's travel and

leisure. >> he got support from elon musk saying it took spacex four times to successfully launch let's call this entrepreneur billionaire mutual respect just like you and i have. >> without all those zeros at least not me. >> a few commas. thank you. still to come. not just china new tensions between the united states and one southern american nation over oil trade. less than impressed over some of the fed's new small business loan guidelines. kate has more. aboudow futures are up over 500. gr yr coffee we have a lot more to do after this stick around to keep business moving. comcast business is prepared for times like these.

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powered by the nation's largest gig-speed network. to help give you the speed, reliability, and security you need. tools to manage your business from any device, anywhere. and a team of experts - here for you 24/7. we've always believed in the power of working together. that's why, when every connection counts... you can count on us. stocks are set to return from a long holiday weekend on the roar of new hopes for a vaccine as early as the fall dow futures are up 530 a vaccine from another american company. that stock is soaring. we'll give you that name and news ahead more trouble ahead in hong kong with protests over the weekend as we watch the white house for retaliation. it is tuesday, may 26, 2020. you are watching "worldwide exchange" here on cnbc

welcome back and good tuesday morning. i'm brian sullivan thank you for starting or ending your day with us what a day to join us. dow futures are up 530 points right now on hopes for a potential vaccine. another company. we'll name it in moments with new trials beginning right away. some night tail winds driving equity the dow coming off its best week since back to early april. the nasdaq 100 now just 3% from its all-time high. not just equities. look at oil. coming off its best month every. up 70% in may topping gains in 1990 and 1986. of course, 34 still not a good number almost every company will lose money on that price per barrel

but does mitigate some mass immediate bankruptcies in the oil patch. this is going to be your stock, your story, maybe your company of the day that is novavax. a maryland biotech the stock soaring just up 20%. they are beginning phase one trials those first results could come as early as july they look good, they move on to phase two and join moderna as a small to mid-sized biotech i think everybody can say good luck to saall the scientists there. around the world where we are seeing the vaccine of course rallying around the world as well you've got green across the screen in europe and asia as

well the japanese nikkei surging 2% overnight. 2.5% after the prime minister abe there said the state of emergency for the nation will be lifted in the last five of the country's 47 prefectures, virtually their states a lot of green on the screen the global rally not without its caveat still a number of worries on the radar today. number one outside of course of the pandemic and covid-19 is the potential growing tension in china over hong kong and a warning of a second peak in areas where the coronavirus is already starting to abate in south america, risking

possible retaliations over dealings with iran the first of two of five different iranian tanker ships carrying gasoline arrived in venezuela. that is a threat to u.s. sanctions. selling 1.5 million gallons of gasoline and other products to venezuela which is starved for fuel and at a total collapse hailing the the arrival of ships the first ship giving a military fly overas it came port. three more ships are on the way and should provide enough gasoline to provide venezuela

enough for a few weeks or months drivers in venezuela sometimes have to wait hours or days to get a couple of gallons of gasoline if they get it, it can cost them as much as a week or more in salary so far, no reaction from washington on those ship deliveries but remember, venezuela owns u.s. refinery company sit co-which employees almost 10,000 americans that is currently stuck in a court case that could send citgo up for option and out of venezuela's hands for good. back to the news in hong kong because the leader carrie lam saying china's proposed national security law will not trample on citizen's rights and freedoms.

adding to the statement bio officials defending the measure from diplomats and investors saying china will likely face you in sanctions if that law is imposed. for now, the reporter for the wall street journal in hong kong thank you for joining us first off, give us the basic on what this proposed law is and what hong kongers are so angered by >> as you probably remember, hong kong has been going through a period of mass pro democracy protests last year behind the scenes, china has been urging hong kong as a

national security law to try and prosecute in jail people charged with subversion or any kind of crime that a government might ascribe to protesters. what happened last week was to mainland china got fed up with the local semiautonomous operating body to introduce those saying we'll create a national security law and impose it and go around the semiautonomous legislature that will have anti-terrorism aspects, rules against foreign interference and also allow china's own security services, its secret police to operate in

hong kong. hong kong has operated under semiautonomy since it was returned to china in 1997. obviously people were very concerned about what this law will actually do >> yes they have in that transition hand over, they have this agreement. some of these things this law was to do should have increased into the year 2047 >> that's right. there is a lot of concern that 2047 is being accelerated to 2020 in some ways. the national security law which is as sweeping as you might imagine in terms of the areas where it is going to regulate could be followed by efforts to change other parts of hong kong life hong kong is operated as a

western style free market city in china maybe that system has put it on the collision course for a long time people are wondering which china influence the public education system and seek propaganda-type course work. what will happen with freedom of the press. being attacked by chinese nups there is a lot of concern he may be in the crosshairs and other areas like the open immigration system will that continue or will beijing take over deciding who can come in and out of hong kong >> john lions, wall street journal reporter we appreciate it best to you and yours.

be well. thank you very much. for more on the challenges and tensions in hong kong and what the u.s. may do in response, we are joined by chris campbell, chief strategist and long-time washington insider good to chat with you good what do you think, if anything the white house the treasury department trade will do around the hong kong developments particularly with regards to retaliation with beijing. >> that's it it has already begun it will delist the chinese companies here in the united states the u.s. administration is holding all the cards on this and they can move to increase terrifs. it would be a bipartisan move to welcome and repatate a lot back

here in the united states and ppe and health care issues we've seen in covid. right or wrong, blaming the lack of transparent si of china over the covid crisis that has now led to losing over 100,000 people's lives moving as you suggested earlier making hong kong accelerating the time in which hong kong was supposed to be under the china flag there was one china, two systems. it looks like that is going away now. there is a lot ahead it looks like it will be significant issue in china

there are some in china saying there is a cold war beginning. >> do you think this is not just a republican issue could there be some bipartisan effort to recoup millions that many believe china owes the world over the bumbling handling to begin with? >> i don't think i know there will be a bipartisan move to demand that china stand up for what many people believe they are responsible for. it has cost the u.s. taxpayer trillions of dollars additional. you can really pull it back to again the lack of transparency coming out of beijing. it has been tragic many people's lives have been lost around the world. there is a bipartisan move a common thread among many

americans. >> and it is not just here eu and parts of australia, everybody is looking towards the virus origins and the amount of spread at the beginning and global risk put out there. what vehicles could be used to recoup some of this money. what options do way have china says no thanks, what do we do >> tariffs are the number one thing that the president has used in the past and will use in the future quite effectively congress would move to delist china's issues and as they have done we owe a lot of debt to china. i think that restructuring that debt could be on the table as well there are a lot of various, countless issues the president has over his authority

congress can give additional authorities to demand and make sure that china is held to count. >> chris campbell, long-time washington insider says he knows some kind of pay back is coming. take care. be well. coming up, pivoting amid the pandemic we'll speak with one business owner forced to flip his business model shares of nissan and renault surging. shelving the plans for a full-on merger the companies will focus on fixing their troubled alliance in a bid to recover from the outbreak worldwide dow futures are up on some vaccine hopes. novavax is soaring we are back right after this (vo) our communities need help like never before

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california to take another step in its bid to get close to fully opening that state announced that in-store retail can resume as long as the companies follow the guidelines. the federal government has released long overdue forgiveness guidelines for those able to secure the paycheck protection loan.

>> good morning. the guidelines were released late friday and largely aligned with what was in the initial law itself despite some hoping for changes to the program businesses still have eight weeks from the time of disbursement, which is key the first round is closing very soon 75% must be used on payroll and other used on rent and utilities. used for sick leave, vacation and even hazard pay. the rules also say the sba can review any loan. saying that loans under $1 million will be safe harbor. also saying it will judge loans made on the guidance at the time it was applied for there have been at least a dozen

rules applied since launched in april. banks have 60 days to decide on forgiveness. it doesn't really include changes that they want like a time to extend the loan and how the money can be used with time to allocate expenses outside of payroll. the senate worked on tweaks and the house of representatives will take up a similar vote. main street will be watching closely. back to you. >> kate, how much money so far -- i don't want to put you on the spot. how much money so far has been lent out under the ppp do we know >> we do the latest numbers of 4.4 million loans allocated for $511 billion $350 billion was round one $310 billion allocated in round

two. only $161 billion has been used up under ppp round two there is still about $150 billion remaining for small businesses to apply for. the total loan allocation number has dropped in this report that can reflect some canceled loans. duplicate applications interesting to see that number go down. there is still money for small businesses a lot of them were waiting on aid. we'll see what the house of representatives does this week and if that changes the tune on main street with more businesses potentially willing to take this loan on. >> many businesses waiting for those guidelines coming up, stocks starting in a big way call it the katy perry market because you will hear them roar.

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welcome back and good tuesday morning. dow futures are up hope from a vaccine company novavax. the trading floor of the new york stock exchange is set to very partially reopen today. the floor has been closed since late march due to the pandemic and lockdown under new rules of the reopening. only one quarter of the usual amount of floor traders, roughly about 80 people will start coming back immediately. those who do come back will have to sign legal waivers and

undergo temperature checks to reenter the floor. they'll have to wear masks and follow strict social distancing guidelines in some ways, it has to start somewhere, the new york stock exchange will welcome back women and men to their floor it is one step to a reopening of new york city. one stock of the day, we mentioned it novavax. if you never heard of them before, you are not alone. a maryland-based biotech company. their stock is soaring they are beginning a phase one trial of a potential vaccine candidate. very early mostly phase one on safety and testing. those results could come as early as july. novavax helping to power the entire market today. staying with the markets optimism about that potential

vaccine. novavax and many other companies working on it right now. tale wind from the fed may be helping the market now welcome from the newly named hermes federated investment. dow futures are up i know you are a long-term guy not a day trader what do you make of this move? is it all a pop? >> i think investors took the wreekd we are starting to look forward. we've been through a heck of a time what you are starting to see is, look, it is starting to fall economies are starting to reopen it looks like they took armageddon off the table with

some actions and every day, we are looking to some sort of relegation that has people feel itting good that we'll see some sort of end to this i don't believe that is wrong. >> i agree with you but let's be clear, even if we get a vaccine, it is a long, long way off we have trillions of dollars used in debt it will take a long time to get that vaccine out into the world. it is unclear whether that consumer is going to step back into a restaurant. that is making the all clear sound when they are still so many bumps to go through per year, steve. sure, first, you are right the period of social distancing is coming where the economy is reopening but can't run at full

capacity there is risk to that. in the market is a bunch of people trying to get ahead of each other you either have to be different or early the earliest you can get bullish is when data starts getting bad at a less bad rate unemployment claims rising at 6.8 or 6.2 when you could clearly look at the data and markets were looking forward ma markets were growing with the chance that we have a recession. with that touch ahead of us, i'm not taking the future earnings of companies and canceling them. for sure the future does look better brian. >> they do

i like the optimism that you've got to be first, and take the chance buying the market early, someone has. you are also taking the risk of dealing with the second wave of dealing with new lockdowns and closings if you will. this is not a market without significant risk >> the market, in our view, will follow how well this reopening goods. we've got nine months of a social distancing peurgatory if we are frustrated or too aggressive as we reopen, then there are down sides so far, as starts start to reopen, we have

sig signs. we better better prepare for it. if we have another wave and don't lock ourselves in our hope it won't be as bad as last time. giving people time to build it up you nailed it. >> let's get now to more on the developing story around novavax. meg joining us now moderna getting all of the attention. this week, it is all about novavax. >> a company that has been around for a decade but does not have product on the market they've been working on infectious diseases for some time now stating that their trial for

human trials for vaccines are starting in australia in this unprecedented push towards solutions. they are starting this in australia and say, if that goes well, they will expand the trial to other countries including potentially the united states. this is a small company, about $2.7 billion market value before the news today though do have backing from a group called coalition for epidemic preparedness. it was a group started after ebola to make sure we didn't end up in this situation again they are funding a lot of work to ramp up manufacturing and getting things ready to get them out to the public. novavax says it has the ability to manufacture a million doses next year if it works.

this is a two-dose vaccine that would be 500 million people if they are successful a small company not yet proven in the vaccine space it could be another arrow in the quiver to trying to fight this disease. >> a maryland-based company that obviously has enough belief in it that is moving markets. don't discount novavax because we haven't been talking about them over a number of years. >> yes there is a question because there are these large companies like johnson and johnson who are incredibly proven and then the smaller players like moderna not having brought a vaccine across the finish line yet. the proof is going to be over what they do in the next few months and whether their technology works starting human trials is the

first step in support of the group, that does give them a big vote of confidence that these influenceal folks hope that their vaccine works. >> we do one of the big stop holders in novavax, millennium management the hedge fund trader, he has been in the stock a long time. folks dow futures are up we'll see you tomorrow squawk and the gang to pick up your coverage right now. have a great day .

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good morning stock futures surging more than 500 points there are signs. signs of life and word of

another covid vaccine candidate that has begun clinical trials new unrest in hong kong. we'll get a live report from beijing. a glimpse of normalcy. millions tuned in to a golf charity event raising money for covid. it is tuesday, may 26. last week of trading for may "squawk box" begins right now. good morning welcome to "squawk box" on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. joe mentioned this, we are indicated up by over 500 points. the dow indicated up by 222, the