falcon 9 with crew dragon attached to the top, where later today if all goes to plan and the weather holds, chances at about 50%, as we heard from the nasa administrator a short while ago, going to sent two veteran nasa astronauts into orbit to the international space station. a journey that's going to take about 19 hours they'll stay anywhere from one to four months if all goes according to plan. it marks not only this new era of human space flight. the fact that the u.s. has not actually been able to launch people from u.s. soil for the better part of a decade since the space shuttle program required in 2011, but also the first time we're seeing a launch, with people, with astronauts on a commercially made and developed and operated spacecraft as well so this is a major day for elon musk and his other company,

spacex, and it is actually playing out in the market. because spacex is privately held but if you look at the handful of more pure play space names, virgin galactic, not affiliated with any of this right now but represents space tourism play is higher today also the ufo space etf is trading higher ahead of the launch it's scheduled to happen a few minutes after 4:30 p.m. eastern right now but we'll see how the weather and everything else plays out here, john. >> you talk about space a lot, its a an important story, an important technology story also. i can't help but look at what's happening to silicone valley and tech at large over this incredible year especially that we've had. if you think back over the past decade, the elon musk brand of tech that is hardware, big hardware, difficult engineering, it's tesla, spacex, that wasn't

the popular thing. it was more the instagrams, the airbnbs, the we works. i think we've seen in this, you know, virus crisis that swept the globe it's some of those investments in physical infrastructure, what amazon has done with warehouses and logistics. what tesla has done. what spacex is doing those are things that have a different kind of endurance than some of the more ephemeral stuff. we work wasn't building buildings, wasn't owning stuff they were kind of moving numbers around and renting things out. air bn bhrks is in a difficult situation. it's not to pronounce judgment on those models, but there is a shift in what kind of technology is valued and how it's valued, guys. >> it's true when you hear the nasa administration talk about things like the lower orbit and the

possibility of 3d printing organs it speaks to where the technology will continue to go we'll focus on a big cap tech name, that's apple bank of america out with a bullish call the analyst behind that note is joining us now thanks for being with us so you're reiterating your buy on apple, but you're racing the price tag to $340. it looks like it represents about what 8% upside from the current price? how did you get to the number? >> thanks for having me. the most important thing here without a deep dive look with apple's install base, the reason it's important to look at the install base of iphone reaching a billion units this correlates very well to apple's multiple. over the last five years you've seen the multiple expand in apple and you have seen the install base grow and the

correlation really suggests that investors are looking to the stainability sustainability of this as a platform that can be generated over time. and the revenue generated about $50 billion annually and take about 300 million individual subscribers about less than $15 a month per subscriber so there's room to monetize on a billion iphone install base. you have tremendous room for growth both monetizing existing users and growing the number of new users. we think this will drive an increase in the multiple and we also took a slight -- changed our estimates as well based on timing of relief of iphones which is driving our price objective to the $340 that you just referenced. >> how much can the install base grow we're in this economic downturn, record levels of unemployment,

at least here in the u.s., presumably there are going to be some people that maybe aren't going to be spending, you know, significant sums on a new phone right now, maybe pushing that off. how much can the install base grow if that's what's happening right now? >> it's a great question i think one of the things that is key to understand here is that the install base growth is really being driven more so by the secondary market of iphones. what that means is when apple sells an iphone we call that a primary market however there are people passing those phones down either to their kids, a used iphone, or handing it back to apples at their stores as part of the trade-in program or in some cases it's being turned into the carriers and these phones are then making their way to third world countries where the affordability of the iphone is not very high yet they have a means to now use an iphone,

which is used, which is a lot cheaper than the price of a new iphone the revenues don't directly accrue to apple from the used phone market but the demand for the used phone market is keeping the pricing of the used phone still relatively robust, enough people are willing to trade it in, and the trade in programs is what's creating an upgrade what's more interesting this year we're sitting on the cusp of a 5g upgrade, so the propensity becomes higher. these are the biggest things and these factors that drive the utility for the phone are going to be the ones driving that replacement. yes, the smart phone market in general is pretty saturated but when you look at apple's overall market share they've still captured well less than 40% market share so there's a long way to go if they can flex pricing, do other interesting things as well

but the most important thing is that the secondary market becomes a key driver to enable -- the install base over the next several years is going to come from it's not so much tracking a lot more -- 5g consumption >> let me interrupt you here we have a date on the reopening of walt disney world we'll turn to julia for that julia? >> carl, that's right. disney announcing it's proposing reopening the magic kingdom on a phased way july 11th and starting to open epcot on july 15th this is part of a phased plan. they're presenting it right now before the orange county committee in charge of reopening. it still needs to be approved by the governor but it's key to have the date of july 11th and 15th they say they'll implement

capacity, procedures around social distancing, temperature checks, mandated masks we'll talk about this and more with bob chapek coming up later in the hour and we'll hear what they're planning to do in terms of next steps to the park. back over to you. >> that's a big deal looking forward to it. we are having some technical difficulties as you might have heard we hope to have wamsy back and in the meantime, anthony foto will join us on the other side of this break and then bob chapek

welcome back we're getting some breaking news from boeing. looks like more action is being taken around the workforce. >> remember the ceo told us last month they're going to be eliminating about 16,000 jobs about 10% of the workforce some of the notifications have gone out, they went out this week to 6,770 u.s. workers those are people being told your job is going away. that's separate from 5,520 boeing employees who took a voluntary payoff package so you have about 12,000 employees now told by boeing that their positions are going away 6770 of those are involuntary

layoffs. dave calhoun out with a memo saying he wishes there was some other way but this is what has to happen. boeing and disney of course this hour. sofi and samsung teeming up to launch money joining us this morning in a cnbc exclusive is anthony noto good to have you back. >> thank you for having me. >> chat comes at a perfect time because all we do now is wonder about how millennials especially think about payments, money, debt, certainly investing. can you talk about the new partnership? >> sure. for those that don't know sofi is a personal finance company we enable you to have a full suite

of financial services products on your phone, whether you want to spend, invest, save, you can do it all from your phone. our partnership is samsung is an extension of our ability to reach people and achieve financial independence samsung is a household name that people trust, and they want to enable the ability of all of our phone owners to have those same resources at their finger tips and financial sources as they do with the other great products integrated to the fun. so samsung money by sofi will enable people to use their phones to borrow or give money to their friends with no fees. >> how doesit work for people entering the workforce with limited opportunities, they lose

their job outright, they're having their hours cut, how does it match >> we're seeing unprecedented challenges for our members and people more broadly. for the first time our members have no income and it's no fault of their own they're reevaluating their financial lives and building rainy day funds. my mom was a hairdresser when i grew up, if she didn't go to work there was no paycheck that day. she taught my brothers and i we needed two years' salary in cash under our ma tress so people are using that model thinking about their future but they realize they need digital capabilities to pay their bills, friends, deposit money into their account. so this partnership will help us get that functionality to more people, on top of the fact we do it through the sofi products, sofi money and is sofi invest. we're seeing an acceleration and demand for the products just as

we're expanding our reach. >> these are strange times and you're seeing trends in a couple different directions your number of daily trades increased nearly 300%, total users on sofi up 138%. at the same time you did a pretty big layoff of about, what was it, 7% of employees recently and there's pressure on that side what do you think is happening with consumers and money that they're getting on sofi so much? are you able to accurately gauge credit quality and what of the trends you're seeing do you think will last? >> there are a number of important trends to note first on the lending side, the demand for borrowing has accelerated. people need to bridge their financial lives when they're currently with no income so we're still actively lending in all three categories, student loans, mortgages the demand is great there given how low

interest rates are, as well as unsecured personal loans so we've been in a great position to serve people well we have to be prudent about who we'reapproving and not approving and making sure people are still plemployeed. the demand is high we need to fund the right people and don't put them in a deeper hole then they are in. >> we've seen a number of people using sofi invest double the number of accounts open since the beginning of the year. 40% of the trades on our platform are through fractional shares we're seeing strong demands for some of our own products like sofi gig economy, it's up 17% year-to-date and 53% since the lows in mid march. my point is, it's really a tale of two cities, there are some people that need to repair their financial lives and need to borrow to do so, soem some people need to build for the future and they're choosing to

invest now they have time at home to be thoughtful about investing, and having no commissions, stocks, ets on our platform has served them quite well >> so given the fact that you have so many different -- so many different services, products, platforms that you're able to offer right now, the activity you've partaken in with lending are there plans to take on a banking license or charter or is that something you're steering clear of? >> sofi is a financial services company, we're a diversified company across lending, saving, investing. we recently announced a large acquisition so we can serve more members that want to use other brarn brar brands like the functionality of galileo. so we'll invest significantly and the ability to reach more members to get directly through

our own brand and other acquisitions like galileo and samsung. we'll investigate a banking license. it could be important to us, it could fund us, and allow us to use deposits to fund our loans which would give us access to capital. so strategically it's an important element and one we'll continue to evaluate but we have nothing to announce. >> anthony, whenever you're on i try to avoid asking about twitter giving your time there in leadership but it seems irresponsible not to ask for your take on how they solve the puzzle with the president and the ramifications about free speech and censorship. >> i think twitter has done a phenomenal job of serving its customers, helping people stay informed about the world i trust in the leadership of the company, many had of them i'm close friends with

i avoid commenting on any of the decisions they're making or challenges they or opportunities they may face. i'm a huge fan, i'm still a shareholder, and really enjoy the innovation i see them driving. there will always be challenges on a platform that gives such access to speak one's opinion. it's not a new day for twitter and they do a great job navigating these uncertain and challenging times. >> we should point out, too, not the only country in which they operate, they've been down this road before in other places around the world we'll see how it goes. congratulations on the partnership. we look forward to talking to you again soon. >> thank you, appreciate it. thank you, carl. taking a look at major averages, stocks are mixed and off their highs of the session the s&p and nasdaq lower the dow up 180 points. still to come, though, disney's reopening strategy, ceo bob chapek will join us later this

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- [narrator] finish your degree at snhu.edu. i'm sue herera here's what's happening at this hour new york city struggling to emerge from the virus shutdown mayor bill de blasio says the city is in the midst of a fiscal crisis and is projecting a $9 billion hit from the pandemic as businesses lay dormant. house democrats want to know why

airlines have been able to cut workers' hours despite receiving federal aid to maintain payroll during the pandemic. they want answers from steve mnuchin saying the cuts made have in some cases made workers eligible for unemployment benefits and tuesday morning an advantage rent a car becoming the latest companies to file for bankruptcy during the crisis retailers and the travel industry have been hit hard by the shutdowns which have led to a collapse in travel demand. for more on the pandemic related interru bankruptcies you can head to cnbc.com after this break, disney's ceo going to join us on cnbc we're back in 2 minutes. this is decision tech.

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with tech stocks continuing to surge higher, has the sector now become a defensive player?

don chu explores. >> if you look at the market action for the s&p 500 over all versus the tech sector so far in 2020 you'll see why it has some of the defensive tend dencies o quality. that's the year to date movement of the spider and then the regular s&p 500. it outperformed down to the covid-19 market lows and has bounced back higher since then does it have some of the more defensive type qualities look at one of the reasons why it's still one of the biggest driver behind corporate growth in the s&p 500 it has a 26% waiting in the overall s&p 500. it has also posted about 6.7% earnings growth of the first quarter of this year that beats the s&p 500's, overall 12.5% drop in terms of earnings over all. one of the reasons you're seeing the shift towards the cyclical

versus defensive mentality, yes, technology is driven by the fact that economic cycles matter. however many tech companies are being viewed as less economically sensitive look at what's happening with the pandemic right now, there's a huge emphasis in terms of work from home and streaming video and everything else on cloud based applications so maybe semiconductors in terms of hardware is something to consider as well and the whole idea that technology has become more integral to everyone's lives so maybe that shift towards a slight defensive tilt in invester sentiment in the technology stocks. back to you. >> looks like we're in the middle of a shift. still to come, elon musk, jay leno and a ride in tesla's cyber truck prototype.

and then disney's reopening strategy we have a proposed date for walt disney world and we'll thiscebout it wi dney o bob chapek in just a moment. - [narrator] at southern new hampshire university,

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leno talking about the coming rocket thruster add on for some of tesla's new car jay also for a ride in the new cyber truck prototype. take a look. >> what would you change when it reaches production what do you think you'll do? >> we're 5% too big. take proportions and drop it 5%. >> you mean all the way around >> yeah. >> it has to fit in a normal garage there's lots of details people wouldn't necessarily pick up, improving visibility having the glass like this is hard because it's sloped >> is that a special glass >> yeah. >> is it different than normal windshield glass >> we'll be using effectively armored glass for the car. the door panels are 300 series stainless steel. it's bullet proof on a handgun. >> elon musk on jay leno's

garage tonight on cnbc 10:00 p.m. eastern time. between this and the -- and china and spacex and nasa, we thought elon was busy before, but this is taking the cake. >> yeah, absolutely. of course got to make sure the windshields are shatter proof after we saw the cyber truck demo interesting to hear about rocket thrust and it has the same steel design as starship rocket so speaking about the cross-pollination that happens through elon musk when it comes to his innovations. >> i've seen read on cnbc.com not to take the dimensions down by 5%. we give elon musk a hard time sometimes when he's kind of put a hard time on himself but i can't help but think this is the kind of innovation that america is all about compressed air rocket thrusters. there's no reason to do that,

aside from it's just darn cool and at a time like this, when yes, we have to worry about necessities, it's kind of nice to know there are also people who are thinking about the kinds of innovations that really get people's imagination going, because a lot runs on imagination, guys. >> it's so true, which is exactly the way we're going to tease our upcoming guest when we talk about imagination and that is going to be disney so after the break, the ceo of disney, bob chapek, is going to join us first on cnbc this is statmu wch interview don't go anywhere, "squawk alley" is back in just a few get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.

the orange county economic recovery task force has now voted, guys, to approve the disney world reopening plan. now goes to the governor but having seen universal go with a june 5th, soft open, guys, disney now taking a bit of a more measured approach going into the month of july we look forward to talking to disney's bob chapek in a few moments about stuff we've talked with him about before, what kinds of protocols are going to be able to be put in at disney world at scale, the pitch does go magic and animal kingdom first july 11th and then a few

days later epcot and hollywood studios. >> such an important plan for several reasons, carl. i can't think of a destination -- a corporate destination more iconic than disney world overall interesting to see how a stock like disney, it is trading higher this morning, up, comcast which owns universal and universal theme parks also up about 1 and a third percent. where companies can plan and have a lot of control over the conditions which people enter the park, the conditions on the ground once they are in so it's important from a leadership perspective to see what disney is doing here. once again, you can see disney a trading about $121 a share, up fractionally we're ba iju aomt.ckn st men quadrupled their money by 2012? and even now, many experts predict

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entrepreneurs and startup companies are facing challenges such as finding new opportunities during the pandemic and joining us is an accomplished entrepreneur and venture investor who cofounded and was ceo of vea systems which sold for billions, now a general partner for his new startup race capital. good to see you, alfred, thanks for being with us. >> thank you very much, john thank you for having me. >> so tell me, from your perspective, how does silicone valley weather this? we're already seeing layoffs among some companies, there are going to be ripple effects for housing, for livability there. probably for the mindset of entrepreneurs. what are you thinking and what

do you think silicone valley needs to brace for >> silicone valley obviously is not just one type of companies i'm seeing several things happening. one, it's clear that we had a lot of capital that's been rushing into the market, you know, in this bull market for the past nine, ten years and with that there were a lot of companies that really are more like a function than they really are full company. i think in these kinds of times they're going through a very, very tough time. other companies are taking advantage of the crisis and they were able to fully capitalize their abilities and mobilize their workforce to do very incredible things really for the community around the world in this kind of time and they're doing extremely well san francisco -- go ahead. >> i want to zero in on something you just said about some companies are more functions than companies there's questions about what happened to m&a in this period

and typically if you have a company in that position, if it's a good functional company it gets acquired by a bigger company. but is it kind of exploitive to do that at a time like this where strong companies might be particularly strong and cash rich and weaker companies might be under pressure and the employees working there for quite a while might not get a great outcome from a sale? >> we're seeing some m&a activity happen. facebook has been active in the market they spent $400 million recently and bought a new company i think the filling in of the spaces they need the functionality for. i think we'll see a lot more m&a activities as the world kind of get more stabilized because right now things where kind of difficulty to do because people still getting used to working from the home, talking to each other on zoom and getting back to the rhythm of life. i think the reactivation is happening. once that get activated we will

see a lot of m&a, just like we saw post the dot com crisis. the ones that survive do well, sometimes they get bought and they do very well inside those companies. i think we'll see the same thing this time again. >> i wonder what you think happens to the geopolitical balance of power particularly in tech coming out of this. europe has been trying for a long time to build more of a tech ecosystem, particularly around fin tech, they're taking a big hit. the u.s. dealing with its own struggles. china was looking bad at the beginning of this, but now looking substantially better in the way it seems to be emerging from this crisis do you think that's going to have any impact on investment, intech and strength coming out of it regionally >> think not only geographic cli but i have been waiting for this for a decade crisis create a unique

opportunity to investing in tech you look what happened post 2000, everyone get a reset and everyone looking on what happened in the world in 10 years. one thing we know for sure, technology in the next ten years to come is going to be so much more exciting than technology we haven't even seen today. anything not automated will be fully automated. so that's why i started race capital because i want to take advantage of this time to go into this investment the other thing on the location part of it is critical we have now demock a tuesdayed the whole concept of the company can be fully decentralized, they can be anywhere. which is something we're doing haphazardly, some company have some employee can work from home, most in the office now it's different the company could be anywhere, i talked to a company yesterday, very exciting company, three young guys, started in san

francisco, three weeks later when i talked to them again they're back to toronto. they said it's simple, raised 1.4 and now they have 40% more capital to work with so i think we're going to see actually the inverse this will decentralize the way to look at investing in many companies. >> alfred, morgan brennan ere. just to dig into that a little bit more at a time we do seem to be something of reckoning within venture capital, how does this change the metrics or the protocols or the methodologies you're applying in terms of where you're making investments right now if at all. >> great question, morgan. i think this is a very interesting time i think most of the venture capitalists who have lost investments they have gone through many funds some in a much later stage, they have to protect the investment you see the messages to ask the company to conserve cash, be

fiscally prudent in how they deal with the cost structure and layoff has happened. but i'm in a different boat. i'm in a boat where i'm on a clean slate. i'm out investing in company that can rapidly pivot to the world ten years or specifically focussed for that ten years. many areas i think is going to be changing. i'm focussing on fin tech and infrastructure technology, things i know well but you look at like telecommunications, working from home, tele-education, telemedicine our transportation system is going to be rapidly changing everything is going to change. we would not go back to the world we come from all of that creates opportunity for us to have a new generation infrastructure structure by and large, after ten years, 12 years selling the company, it runs on the stuff we built so i think it's time for new

stuff. >> you are ramping up race capital right now. i particularly value your point of view because i mean, broadly when people think about tech, they like to think about consumer tech because it's easy to understand, iphones and whatnot, they shy away from the enterprise but in the enterprise if you mention something like middle ware, most people run for cover but that is stuff of value that you were able to grow and monetize so what are you focussing on specifically in your investments in this cloud and ai future that we're looking to, that's decentralized. what technologies are you focussing on that you think are going to be particularly valuable and maybe overlooked? >> actually, infrastructure technology is generally tough but it's extraordinarily scalable and it's -- once it get going, it's -- they are all getting better very deeply, all kinds of

applications and other infrastructure technology. so almost impossible to get out of this is why technologies still by and large, everything in tech running our world today. the thesis of race capital that we are most interested in are things like a new generation of banking middleware and apis. because most of the consumption of like for example, in financial services are not directly by human. none of it is by human, either by systems or by applications. when you go open an account you want to drive for grub hub the first thing you open an account, where your 1099 income goes into the accounts and you can do all the pretax saving plan by those accounts. so those kind of technology are crucial to power where we're heading to in the world. you can only imagine the type of new financial services we create that meets new compliance, new security technology because

people no longer have that physical barrier to protect them >> the nitty-gritty. >> the nitty-gritty. >> and often ends up being quite valuable thank you for being with us, alfred appreciate it. >> thank you very much. >> morgan? >> great stuff jon fortt, thank you. looking at the averages right now, the s&p has turned positive once again, dow up 200 points right now. the nasdaq still lower as the big tech names continue to sell off. want to bring in mike san tolly for the latest in terms of the market action we're seeing on this wednesday mike >> morgan, obviously a little bit of friction in this rotational story we've been talking about for a while. the big internet names are down 2 and 3% as a group. we know they kind of dominate the s&p 500 under the surface, bank, value stocks, cyclicals are doing fine you have the closure of the gap,

people pointing to that as something ripe to happen it is underway, no saying if that's truly a sign the economy is going to really accelerate from here or if it's just a version trade. but it does tell you that the na defensive quality growth names for quite a while during the sort of height of the shutdown so i think that's what we're looking. also, the high of the day in the s&p, the past two days, was set right at the open, right, exactly, about at the same level, at about 3020 so we might just be getting to the limits of how the overall headline an ex can do on this rally, at least in the very short-term but below the surface, it's a kind of risk-seeking, cyclically positive message, if we can believe it >> yeah, you know, mike, it wasn't too long ago that goldman, david costen, had a pretty well-publicized call that said, look, we're highly

concentrated in a limited number of large mega-cap tech names and that usually resolves itself in one way. and that is exhaustion to the point where the earnings from those five or six companies can't justify the enthusiasm that's spread across the index overall. is that what's playing out >> i don't know if it's strictly that if it's really just a matter of the market says that all the earnings power has been recognized in valuations and therefore we have to back off from here. because, honestly, the stuff that's coming off of the press earnings or zero earnings or big losses is gaining value off the bottom it's just not enough to offset i think if you can slice the s&p into sectors that are economically cyclical, it's only half as much market cap as those that are kind of long-term growth, defensive quality, kind of more steady that's why when the overall market is kind of getting in gear to suggest that economic fortunes or maybe better than

feared, it doesn't necessarily benefit ist things that got us to this point in the s&p and therefore maybe caps us or creates a little bit of a stall at the index level, at least and, you know, all of this stuff is so contingent, carl, too. we've seen these efforts at rotation before. we've seen these huge moves in banks and things like that before and it didn't necessarily create a long-lasting tidal change in the market >> yeah. that's an excellent point, because jpmorgan has been here before, back in early april. we'll see if it can hold on to a hundred. comfortable a few penny pal yni now. mike, thanks for that, talking about some of the market dynamics at play this morning. let's get to our julia boorstin with bob chapek. >> carl, thanks so much. i'm joined now by bob chapek, who is at walt disney world. the company just announced its

plan to reopen its walt disney world theme parks starting on july 11th. bob, welcome what made you pick that july 11th start date, more than a month after the other orlando parks? >> well, we want to make sure what we present to our guests when we open up is going to be a quintessential disney experience and while we'll have substantially lower numbers of guests, we want to make sure we do it in a responsible way, so they can make those life-long memories that last a lifetime. >> now, bob, when we last spoke is when you were just reopening your shanghai park there, you started at less than 30% capacity what kind of capacity are you going to be opening at in orlando? are you talking about less than 30%? can you give us a sense? >> we're not going to give any specific number, because there's no government guidance, necessarily, as to how dense we can be but i will say our capacity will be a function of the 6-foot

social distancing guidance that we have from the cdc so the number of people we've put in the park will be a function of that calculation, because we will always strive to maintain that 6-foot social distancing >> i know you're awaiting approval by the governor for this plan, but do you expect to get specific guidance on capacity before you launch and as you start taking reservations and commitments for tickets? >> we do not expect to get that. i think that, you know, the walt disney company has a long history of being very responsible. we were the first attraction--based group in florida to close initially when covid first hit. and i think there's a certain amount of trust in the brand and trust in the way that we operate that we'll do it responsibly and do it on behalf of both not only our guests, but our cast >> you just outlined a number of

different steps that you're going to be taking to make the park safe, which sound very expensive. we're talking about plexiglas, obviously, the limited capacity. at what level of capacity do you expect this park to be profitable >> well, i had said earlier that we would not open a park unless we could at least cover our variable costs of operating and make the contribution towards fixed costs and overhead, and that is the case at walt disney world, as well so we believe that we'll be at least able to cover our costs of opening up our parks, but at the same time, work then incrementally as either we become better at, you know, putting more folks inside the park or the guidelines loosen up a little bit so we'll slowly but surely make baby steps towards improving the number of guests we can accommodate in our parks, while again always ensuring that we open up responsibly. >> and what kind of consumer demand are you expecting for

your orlando parks do you think all of these rules, the mandated masks, the temperature checks could discourage your biggest fans from coming? >> i don't think so. and i'll tell you, we've got a couple of data points that are very encouraging number one is we still have a tremendous amount of reservations that areon our books for the future and guests have had the ability to cancel now for quite some time so that plus the response that we've gotten, not only in shanghai, where we opened up a few weeks ago, but also from disney springs, our receptivity has been tremendous. especially today, we went and opened up our owned and operated stores and restaurants inside disney springs and the demand has been really, really encouraging. so i think the world is ready to get back to some magic and disney certainly can provide that magic >> and i want to ask more about shanghai, but first, i'm hoping you can give us a little sense of a window into the strength of

the american consumer. between the spending habits you've seen at disney springs over the past couple of weeks and the bookings you're seeing for the parks and hotels, how strong is consumer spending going to be over the next couple of months, at least at your properties >> i think that's going to depend on the category obviously, certain categories have been strong i know our consumer products business has been very, very strong during this covid period. i think it's a little piece of disney magic that people can have at home with them so i think it's going to depend on category. and i think it's alsogoing to depend on the brand. because brands that consumers trust, they trust the environment that they're going into i think that makes a big difference so i think disney will be well positioned, at least in the categories that we compete and operate in to really exceed guest expectation, no matter when they come or however they choose to experience our magic >> now, we last spoke a couple of weeks ago when you were

opening disney shanghai. can you give us a sense of how that's going so far? you laid out plans to increase capacity by 5,000 every week where are you now and when will you hit your regular capacity? >> well, right now, we're still living within the guidelines of the 3-feet social distancing guidelines that is set up by the chinese government and right now, we're about 20,000 a day is where we're at in terms of the number of people that we put into the park. so we've still got a lot of room to go. but i must say that part of this is essentially a contract between the walt disney company who operates these parks and also the guests. the guests have to act responsibly, as well and i must say that our guests in china have been spectacular in terms of respecting that social distancing parameter, whether it's 3 feet or 6 feet. and i expect the exact same thing to happen here in orlando when we open >> and in terms of the safety protocols there, i know you're very concerned about the safety and health of your cast members.

this is something that was just discussed in your presentation to the orange county committee there. have any cast members tested positive for covid is that something that you're keeping an eye on for your opening in orlando, as well? >> we're being very, very cautious with our cast members as a matter of fact, our cast members have all been sent home, not only masks, but also personal temperature testing devices, so they can take their own temperatures every morning but then in addition to that, when they report to work, if they're guest facing, they will actually be tested again at the workplace. so we're being very, very conservative with this and, you know, weber not going to take any unnecessary risks for either our cast or our guests >> now, with your opening already a couple of weeks in in shanghai and this plan to open orlando in july, what does this all mean for your plan to start your cruise business again >> well, the cruise business is most likely to be the last one

that comes back online, given the density that a cruise line necessarily operates at. we're under some pretty stringent guidelines right now from the federal government in terms of, you know, when we can even think about opening up again. and i can assure you that we'll use the same care and caution when it comes to roadweopening our cruise lines, as we do our theme parks. and when it's responsible to do so, we'll do so. >> now, disney has been in talks with the nba to have the nba finish its season at disney world, where you are right now where do those talks stand and where do you see them going? >> we would be very excited to have both the nba and major league soccer play out the balance of their seasons however they see fit at walt disney world. fans are anxious to get back to a world of sports and if we at walt disney world can be entrusted to help make that