thanks see you later on good morning, everybody. welcome to "squawk alley." i'm carl quintanilla with morgan brennan and jon fortt live from separate locations we begin the hour with facebook this morning and at controversy surrounding social media and censorship of political speech mark zuckerberg talked to andrew ross sorkin about twitter's move and its fact checking of the president's tweets >> we are different companies but we've been pretty clear on what i think the right approach is, which is that i don't think that facebook or internet platforms in general should be arbiters of truth. i think that's a dangerous line to get down to in terms of deciding what is true and what isn't, and i think political speech is one of the most sensitive parts in a democracy and people should be able to see what politicians say >> meantime the president is expected to sign an executive

order targeting social media companies. we're joined this morning by elevation partners co-founders robert mcnamee good morning it's good to see you again. >> carl, it's good to see you. >> let's zero in on those words arbiter of truth, because those are the same words dorsey uses in his tweet about the thing that they're not trying to be. >> yeah. >> lay out the framework for which -- what each company is doing and what you think is closer to the right thing to do? >> carl, the first point we have to make is that this entire controversy is manufactured by president trump to distract us from the fact that 100,000 americans have died, in a time when our country had the worst public health response than any country in the entire world. this whole thing is nonsense i agree with mark that internet platforms should not be arbiter of truth here.

the business we're dealing with here is basic, the business model of facebook, instagram, twitter, youtube is based on capturing our attention and manipulating it. the way they do that is with algorithms that amplify the content that engages us emotionally. that is hate speech, disinformation and conspiracy theories the business model is based on that the issue here is not that president trump has said something false on twitter or on facebook, it's the fact that the algorithms amplify that content intensely to the point where it blocks out all of the legitimate facts that are in the marketplace. people don't find out the truth. the issue is not that president trump lies in ads, it's that facebook changed its rules to permit falsehoods in ads which it had never done previously those things are the real issues we should be talking about after four years, after the 2016

election, i just wished that the interviews would focus on those real issues. >> well, zuckerberg brought up brazil and a post that bolsonaro made about hydroxychloroquine which they did bring down. are you saying that facebook is playing by different rules in different countries? >> oh, definitely. facebook has to adapt to the powerful in every country in which it operates. let us be clear, the issue on the pandemic is that facebook's platform because it promotes conspiracy theories and disinformation disproportionately, has allowed our pandemic response to become an issue in the culture war, as opposed to something we treat nationally as a crisis as it actually is and that is entirely on instagram, facebook, twitter, and youtube for allowing that to happen their business model lets that happen you know, they have to stay attached because their product

is ubiquitous, and in authoritarian regimes as you have in brazil and russia, they have to do what the regime wants. in the united states obviously they're going to stay as close to the president as they can because he's in power and he can do things like present executive orders that are a distraction. >> i think this arbiters of truth thing is a red herring and i think you sort of alluded to that too the reason is, because i think the social media platforms are already de factos, arbiters of truth in the sense that people tend to believe or at least consider whatever the loudest, most controversial voices are saying in any part of the political spectrum, and i think the issue is that people in power whether it's politicians or celebrities tend to have the loudest voices the question is not should facebook, twitter, snap, whatever company be saying

here's what is true, i think the question is, should they amplify certain fact-based voices that are saying things contrary to whatever that influential voice is saying and let people decide based on their own hopefully logical faculties what they believe is true? right now they're not consistently presenting that kind of information. >> so i think the better approach, jon, would be to recognize that this industry today is where the chemical industry was in 1960, where pharmaceuticals were in 1906, in the building trades after the chicago fires. this is so important to our economy, so important to our culture it can't be allowed to operate unregulated. the chemical industry was pouring mercury into fresh water, belching toxic fumes in the atmosphere and people were dying. facebook and google and twitter are essentially doing the same thing relative to the information and people are dying in a covid pandemic because they don't know what the truth is

i think that underlying business model needs to be changed just the way we changed the business models of chemicals and pharmaceuticals before they were regulated and the building trades when they were unregulated. we have to have responsibility built into these things and we don't have it. i think that in some is ways, what really needs to happen is that whenever you logon to youtube or facebook or twitter, you need to have a disclaimer at the bottom and a huge flashing print that says based on a true story. these things are not fact. they're actually simulations if we understood they're more like a individual game than like real life, that would be incredibly healthy that's not where we are today. as you say, people tend to believe what they read on these things and tend to believe the loudest voices and right now the loudest voices are not serving the public interest and we have to decide whether facebook and youtube and instagram and twitter should be allowed to profit from that

i don't believe we should, but it won't be my call. i just think we need to have the debate and i'm trying to carry one side of it >> roger, to that point i mean executive order would potentially be bringing some of this regulation. i realize the devil is in the details here we've seen stuff brought up in congress and gridlocked. what we know potentially based on ylon mui's reporting it would ask the fcc to write rules when and how the platform can remove content and maintain liability, talking about the exemption we talked about before that the ftc would be involved, ag would create a working group on enforcement state statutes, et cetera would this not at least open the door for more of those regulatory sign posts or guidelines and that bigger, broader debate and discussion? >> so morgan, i think that looking at section 230 now appears to be inevitable it's amazing, only six months ago it seemed like a third rail

that no politician would take on now it's on the table. >> yeah. >> it does require some kind of legislative action i don't think you can do this with an executive order. and there should be a debate about what kinds of speech you want to have and what kinds of responsibility you want to have and where you want to place it section 230 is one of the ways you can deal with that the point i would make is that algorithmic amplification is not a matter of speech, it's actually a business model choice, and i don't think you need to change section 230 to regulate companies' ability to choose attention as the thing that they are focused on it's really very manipulative and it's really about in the long run behavioral manipulation and i think that's incredibly un-american and so, again, we need to have the right conversations. the thing that's tragic is that four years after the 2016 elections, you know, we're still not clear on what happened then

and why algorithmic amplification is dangerous and sometimes i feel like a broken record coming on here and making the point, but i'm going to have to keep making it until we understand what the issues really are the thing that's so amazing about this show is you're there at the beginning, you've been the one voice in this entire media landscape that has consistently understood that this matters and for that you have my undying appreciation >> roger, the "journal" did a long piece this week about internal teams at facebook that tried to present arguments that the algorithms were, in fact, socially divisive and didn't get far working their way up the management convincing them things need to be changed. you've written a book about this have you written off any hope that zuckerberg's world view on this front will change >> so carl, in my book, i talk about that piece of research what's new in the journal story

is that they have the inside details, right, they have the memo, they understand that it was joe kaplan who is the, shall we say, very conservative policy chief in washington for facebook who spiked that report and said no, we're not going to change our policy there was a lot of revelation in here i think, carl, we knew facebook wasn't going to change when they hired that opposition research firm definers to spread disinformation about george soros. i think that's when you knew that their commitment to this business model would cause them to behave in ways that i think objectively you would describe this as unethical. that's what we're dealing with they have a different world view and they're entitled to a different world view and they're very good at making it sound reasonable as you pull back the leaves of the onion you get to see what's

really going on on the inside and covid, if covid doesn't bother people, if people think that the extra whatever it is, 35 to you people i guess who died because we did start a week earlier or 60,000 who died because we didn't start our response two weeks earlier, if you do not recognize that facebook and instagram and youtube and twitter have significant responsibility for the fact that we could not get our act together on that -- >> i don't know, roger, that's hard because i think the connections in our society including the social media platforms have helped our society to weather this in many cases better than some other places you said we were worse on a policy perspective this is jon, by the way. >> sorry. >> and then anybody, i think brazil is probably worse i get where you're coming from, but i think in certain cases, we have to see the benefits that these platforms can deliver when

they're used correctly i think the question is to what degree can we expect government, can we demand as citizens in a democracy can demand government put guardrails up so that these types of businesses operate differently? >> so jon, what i would just like to push back on is brazil's response is not yet as bad as ours the hydroxychloroquine thing, which is now a big deal in brazil, that whole issue was amplified by social platforms and it was made to seem legitimate because that point of view was amplified so intensely. the entire campaign for liberation, this armed campaign occupying state houses in michigan, you know, that whole thing was organized on facebook and instagram. i look at this and i really respect your perspective here and it's important to have that

debate, but at the end of the day when i look at this the common characteristic of the countries that are having a terrible response is authoritarian regimes without a good public health response that they've used disinformation, they've used social media platforms to manipulate the knowledge and understanding of their population i look at this and, again, i am a lone voice, right, we're trying to have a debate about this and at the end of the day, i think facebook needs to defend its policies on the right issue which is why is this business model legitimate it's undermined elections and it's now undermined public health and it's undermining competition because they bought up the competitors and snuffed them out like at that and go, wow, we're cutting them a big break here, okay it's obviously been a great stock. i understand why the people who own the stock think this is

fantastic, right but at the same time you have to step back and ask, what kind of a country are we going to live in are we going to have a population that can make rationale, political choices and that's a debate that at the moment we're struggling to have because social media's influence is so outsized >> yeah. certainly the stock reflects that, roger, coming off its all-time high yesterday of 237 it's always good to talk to you about it we appreciate it it as always. >> i always appreciate jon's pushback because we need the debate. >> yes we'll see you later. >> take care. >> always welcome the debate we always welcome the always outspoke outspoken aaron levie ceo of box coming up. later honeywell's ceo darius adamczyk a big show will continue in just two minutes. stay with us

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let's get out to josh lipton who joins us with box co-founder and ceo aaron levie. josh. >> thank you, jon. aaron, thank you for joining us. >> thanks for having me. >> so, aaron, one trend i want to dig right into here, it's something that you've been talking a lot about and emphasizing and you talked about it on the conference call was that we're entering this new normal, that thanks to the pandemic the resulting fallout,

you see, you argue, these businesses really changing how they operate, how they work, that you see these companies working now overtime to become these digital first workplaces what exactly did you mean by that, aaron, and why do you think your company box is well poised to capitalize on that trend? >> yeah. well i mean first and foremost, it's obviously very unfortunate that that acceleration is being caused by a health and economic crisis and obviously events are tragic, but, you know, what is happening within organizations, companies are saying we want to be in a position now to be able to always serve our customers no matter what the environment is we want to be able to digitally transact and automate more business and work flows and enable employees to work from anywhere all of these trends are converging all at once and it's causing i.t. organizations and ceos and boards of directors so to say how do we make sure our

organization will be resilient if there's any event like this in general or we need to accelerate our path to being a digital regardless that means they have to invest in modern technology and invest in the cloud which is leading the companies adopting probabilities like zoom and webx and slack and microsoft teams, so many other, you know, new and modern technologies and box is playing a role as being the secure way to manage content and files so you can connect all of your information to those applications and that's what we're enabling our nearly 100,000 customers to do during this environment >> and are you convinced, aaron, about the sustainability of some of those trends? take work from home. is it possible that maybe there's a treatment, maybe people feel more comfortable and they actually begin to return to work and there's some surveys out there that show people do want to return to work there's a glassdoor vare that showed 72% of respondent would

like to return to the office and miss the in-person collaboration. is it possible a year from now that some of these trends that we're seeing now in business, they're not so permanent, not so dramatic but a year if now they turn out to be mores cosmetic? >> i mean, i hope we can be into that new normal state with a therapy or a vaccine and with a better health environment way sooner than a year from now. i'm rooting for that outcome as quickly as possible. i think the trend that we're seeing right now is that companies are accelerating what they would have done over maybe a three or five or ten-year period in a shorter period of time whether today it's about work from home or tomorrow it's about work from anywhere and better flexibility on how employees can collaborate and share and communicate even in the office, these trends were ones that were going to be happening for some time and now they're being accelerated in a very rapid fashion. what bank wouldn't want to digitalize how they on board their customers so they don't

have to have paper-based processes. what professional services firm wouldn't want to be able to serve customers globally without having to hop on an airplane to do that. these are trends that were already getting kicked off and what this environment has done is really accelerated it to their logical conclusion because instantaneously every business globally has realized they have to be able to run in the cloud and run digitally even in an environment where offices reopen we want to make sure that companies have digital at the center of how they're running their operations to be able to be more efficient and more productive and serve their customers. these are trends that will last and it's much of more an acceleration to where the world was already heading. >> as some of these trends -- i understand the benefits. work from home, move digital and virtual, but i want to dig into the disadvantages or potential disadvantages you see and one that's brought up is tech

companies now moving these conferences, so important for these companies, they're going from in person and physical to virtual, box's big conference this fall so important for your company it's going virtual are there possible disadvantages to that, though, aaron when we talk about those conferences, a lot of people love those conferences because they are in person and you get to grab coffee, grab a drink, you get to network is some of that going to be hard to replicate as it goes virtually? >> i think what has happened in this environment is i think the first move that everybody did was try to figure out how do you replicate the old way we did business but in a virtual fashion and this may be how we collaborate, you know, with our colleagues and maybe how we do meetings and our marketing now we're at a stage where companies should be thinking about what is possible because of going virtual, what is possible because of going digital that we couldn't do previously take the example of our conference box which is our event every year where we bring together our customers

it's a fantastic event and there's amazing energy but it can only fit 5 or 6,000 customers because of the space limitations. now we will be able to reach tens of thousands of customers there will be a different experience for those who would have attended in person but now we can have tens of thousands of customers who couldn't come to our event in person. when you start to flip the model and what is possible because of going virtual that we can do differently, that all of a sudden all new opportunities begin to emerge. we've talked to a number of organizations where most of their time is spent on airplanes doing sales calls and doing client meetings and at a major consulting firm if you are a senior partner and you're on airplanes all the time you can only reach a few customers every week or month. now all of a sudden you can take all of that expertise and bring it to your clients wherever they are. there's a lot of organizations where they're able to deliver more value by being able to go

virtual. that doesn't mean we don't go to offices. we digitalize our workplace in the future. >> aaron, good morning, it's jon fort good to see you again. that's a nice lockdown haircut i take that as a sign that silicon valley is opening back up again i'm wondering what is the essential resource that companies like yours need to capture this surge in demand that seems to be happening kind of during and post-crisis as companies realize that they need software as a service, cloud, these sorts of things? is it infrastructure capacity? is it sales support, training? how do you do better than competitors at being prepared to serve those customers? >> yeah. thank you. well first of all, i do need to give credit where it's due my wife did this haircut and i'm very happy about it. she did get injured in the process but just a little bit of a blood on the hand. we got through that. but she did it and did a great

job. when we look at what do companies need right now, they need really, really rapid acceleration of their digital strategies and so what vendors can do is make it really easy for companies to adapt their tools and technologies in the quarter we launched a way that companies could deploy box enterprise wide in a frictionless way from a pricing and, you know, volume discounting standpoint to make sure that companies can deploy across their entire organization we have gone completely virtual with our sales notion so we can serve all of our customers over video and make sure we can engage with them and interact very easily and we've also made sure that, you know, we're again doing all the right kind of digital engagement of our customers in a much more kind of virtual fashion. so we've gone fully virtual from a sales standpoint and we've made sure that we're scaling our infrastructure rapidly iterating our product innovation to make sure that we can help customer with these digital

transformation projects. >> what are you modeling that this crisis is going to do to your costs over the next couple years? is it overall going to raise them because of distancing that you'll need in the office, other maybe more eequipment to employees to work from different locations or is it going to lower them because you won't have to build out as many different office branches and locations as you would have otherwise? >> yeah. well, you know, i think right now what we did in the near term is we did raise our profit targets for the year we improved our operating margin by about 2 percentage points going from 9 to 10% this year to 11 to 12% this year. a lot of that was due to the efficiency that we were working on coming into the year and not necessarily kind of covid related but there are reduced expenses we're on airplanes way less right now. effectively kind of zero travel happening. that means that we can be way more efficient in how we're

selling and able to reach more customers. you're seeing efficiency gains because we moved the business to virtual, but we don't expect to change our office footprint in any way. we expect to have a hybrid work place where people will have more flexibility when they work from home and the office and more in line with our culture and values and our vision for what the future of being able to work from anywhere looks like. >> aaron, it's morgan brennan. just looking at the numbers from your report, you signed 40 deals of 100,000 dollars or more and named some of those examples nasa being one of them, [ inaudible ] being another one of them. it got my attention because these are entities tied close to national security and thus i would imagine at a time where the digitalization of everything or the accelerated digitalization of everything is also stoking concerns around privacy and security i'm wondering how you're approaching that right now >> this is one of the biggest

immediate challenges for enterprises is their employees go to a remote work environment and they're working on unmanaged devices and networks and the data security apparatus that enterprise invested in might not work in that environment this is where our focus is in building a squaecure platform we have a company called box shield that is seeing rapid traction right now but i think when companies move to digital they have to be thoughtful about the privacy, compliance and security applications of their decisions and of their investments which is why we think over the next few years i.t. and the role of the cio will only take on greater importance because of the criticality of all these decisions they will be making right now. >> final question here earlier this year you did enter into the agreement with starboard value replacing three members with independent directors. i talked to some analysts on the

street who say that's what this is going to mean for aaron's company. greater financial and operating discipline at box and it's going to make ultimately box a more attractive acquisition target. what's your response to that >> well, i mean in general we're focused on just building a very strong, sustainable business right now as a public company, you know, we've guided to, you know, long term and we think healthy growth rates and group profit margins and i think that the new board members we're adding will help us with that. we added a new board member the former ceo of autodesk helped lead the transition to the cloud. we have fantastic operators around the table that will help us build a robust company for the long run that we're really excited about. >> thank you for your time, spisir. i'll send it back to you guys. >> thank you to josh and aaron shares of box are up 3% right now. meantime the ceo of honeywell on that company's response to covid

and how it's positioning its portfolio for the path forward my exclusive with darius adamczyk is moments away stay with us ever since we've gone mobile on the now platform, something's gotten into the office. i hear you. feels like there's no barriers between departments now. do you think everyone appreciates it? i do. huh... forgot my glasses. serivcenow. the smarter way to workflow.

pretty solid performance out of s&p right now holding 3051. after the break the ceos of two big earnings movers this morning, honeywell's chief will join us and later the ceo of autodesk we're back in two minutes.

welcome back and good morning. i'm sue herrera. president trump tweeting today that 100,000 confirmed covid-19 deaths is, quote, a very sad milestone for the u.s. new york city mayor bill de blasio expects 200 to 400,000 people will return to work in the first phase of reopening businesses details of what will be included in that phase will likely come during the first half of june. the texas supreme court ruling a lack of covid-19 immunity does not qualify someone to vote by mail. democratic lawmakers in that state sued to expand voting by mail ahead of the november elections. and amazon will offer permanent jobs to 70% of the 175,000 temporary workers that they hired to meet a surge in demand related to the pandemic for more on amazon as story go

to cnbc.com. a little bit of good news for some people out there. back to you. >> we'll take it where we can get it, sue. thank you. my exclusive sit down with xtneywell ceo darius adamczyk is ne the dow and s&p up half a percent. that bought gold in 2005 quadrupled their money by 2012? and even now many experts predict the next gold rush is just beginning. so don't wait another day physical coins are easy to buy and sell and one of the best ways to protect your life savings from the next financial meltdown. - [announcer] today u.s. money reserve announces the immediate release of us government issued 1/10 ounce gold american eagle coins for the incredible price shown on your screen. these gold american eagles are minted at the united states mint, and right now they are being sold at cost for the price shown on your screen. - pick up the phone and call america's gold authority u.s. money reserve.

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us money reserve has proudly served hundreds of thousands of clients worldwide. don't wait another minute, call now to purchase 1/10 ounce gold american eagles for the amazing price shown on your screen. welcome back to "squawk alley. earlier this morning i spoke with honeywell ceo and chairman darius adamczyk in a cnbc exclusive. this was his first tv entire since the pandemic took root here in the u.s. we covered a lot of ground, ppe production, getting employees safely back to work, the products honeywell is rolling out to enable that, and so much more take a listen. >> it's been very exciting to see the kind of role honeywell is playing in the crisis we received quite a bit of positive press on the n-95 masks and that's something we're doing

on track of 20 million a month we're doing much more than that. some of the things that aren't talked about in terms of other personal protective equipment, eyewear or eye shields or gowns and so on that we're making to protect first responders, the medical workers who are the true heros in this battle. >> how much do you think a full fledged recovery is going to hinge on a long-term treatment or vaccine something like aerospace which is a key market for you? >> it's essential. my opinion, the world will not get back to kind of the past normal until we have a clear medical solution, preferably a vaccine, but an effective therapeutic as well. as we try to project what the world will look like when airlines will operate at full capacity and so on, we think that that backs up from some kind of a medical solution we have a lot of solutions for

the airlines and aerospace industry in general to kind of help them persevere even in this environment because people are starting to fly again and we think that that trend will continue, but things such as d monitoring air quality, disinfecting the air, having an effective uv light solution in between flights to really disinfect cabins, we call it the healthy aircraft is a new solution that we just launched we're not just trying to fight the current state of the covid, but really how do we help the world get back to normal and we have a similar set of solutions for the buildings, we have a similar set of solutions for the industrial plants and our remote operations so really we pivoted our offerings all underpinned by our software platform, to help the world get back to the new normal we're going to be in for hopefully only a few months not years.

>> this idea of adapting the portfolio for this post-covid era, repurposing or creating new products for different industries to get back to ork, what are some of those examples and where do you see the greatest demand? >> let's start with buildings because people will start returning to offices slowly in some parts of the country, they're doing that already europe is a little ahead of us and some of the other countries. we have solutions that monitor indoor air quality, air flow, social distancing. we just launch something which not just monitors upon entry the body temperatures, but also through the use of a.i. actually inspect whether people are wearing ppe. all of this operation, this is a great solution for buildings as people return to not just check their body temperature -- by the way at an accuracy level that's not currently available by any other systems, but also check ppe, whether people are wearing

it this is a solution we're going to be offering for the marketplace. but it's much more than that also we've been in an office environment, are people social distancing, is the air clean treatment of the air with uv light. pretty advanced methods to help keep the employees healthier and safer. we're underpinning all of that with our software, with a user application that provides you a lot of data around the air quality, the safety, social distancing and so on that's one of the solutions we're launching for the buildings. another that we're launching for the aircraft and i touched upon that which is anything from monitoring air circulation to between flights having disinfectants come out of the air vents and cleaning the aircraft to the use of uv light

both between flights to disinfect the aircraft in a matter of minutes rather than, you know, typically it takes 40, 45 minutes to do that. we want to help with the efficiency component also the use of sensors longer term, which again, incorporating uv light to treat the air and make sure there's proper air circulation. we have -- and then kind of the more simple things we're offering ppe kits for passengers and the crew and by the way they are different that contain masks, disinfectants, gloves and so on to make the flying environment saver. those are the conversations we're having with a lot of our commerce right now about how do we increase the level of comfort for passengers and so on probably the last example i'll talk to you about is industrial plants and facilities. remote operations are becoming much more important. we have solutions where people can actually operate entire industrial plants from their

homes. >> that's -- >> there wasn't really a lot of demand for those kinds of solutions before you know, we want to have operators in a control room and you think about that setting and that's kind of the way people think about the solutions, but today, we actually have solutions where you can -- they can actually, you know, operate a plant from wherever you want and having a lot of customers, a lot of interest in that type of a solution as you can imagine. >> one of the conversations we've been having repeatedly on "squawk alley" with different guests over the weeks and the months has been the fact that this pandemic is accelerating the shift to digitalization, the internet of things, the adoption of the cloud how is that playing out for honeywell and your product which is a little over a year now? have you seen the same type of acceleration and adoption play out on the industrial side >> oh, absolutely.

our three key initiatives within honeywell are honeywell connected enterprise, our offering much more external focusing, honeywell digital, becoming digital internally and the their one being transformation the first two i only wish we were further along for example, our customer experience, our customer service team works from home flawlessly because we have common processes, common i.t. infrastructure, common metrics, and we haven't missed a beat in terms of having that group work interest home. if you backed up the clock two years without that common infrastructure, without a global communications systems and common data sets, there is no chance -- well, we could work, but we wouldn't be anywhere near as effective as we are today there's no question that whole

digitalization trend that's going on is only going to get accelerated. i'm kind of in the process of reassessing our whole strategic plan in terms of what we will do different and so on. the good news for honeywell, some of the initiatives and things that we're already working on i only wish we could accelerate a little faster they're so appropriate in terms of what's going on in this crisis, but also some of the mega trends that are happening as well. >> i want to get your thoughts in general on what you see as the potential for recovery there's been a lot of debate about how quickly we could see a bounce back out of this, what's largely to be a recession now. how are you gauging that, navigating that and in terms of the end markets that you do focus on, you do work in, what are you seeing in terms of potential green chutes for recovery >> yeah. well for us, some of the green chutes is we're seeing the airline reservations going up. we see the price of oil going up those are the -- we're not

necessarily in the oil and gas industry, but we serve some of those customers so their capex budgets are our revenue essentially. for airlines that's something we're monitoring our aerospace business isn't all airline related. 40% of us is defense and space which has been resilient we actually think the business aviation segments, which we're also in, is going to come back faster than the air transport. the underlying trend that we see and at least we've built into our assumption is that q2 is the bottom, q3 is a little better than q2, q4 gets better and then 2021 we're not anticipating a v-shaped recovery. we're anticipating a recovery but a more of a gradual one. >> yeah. nonetheless, though, basically saying that he is an optimistic here and he does hope and anticipate that this is a recovery that takes root over

months rather than years we discussed honeywell's positive or relatively positive outlook for trade relations with china, given the fact that they have this localized manufacturing footprint that keeps them somewhat perhaps isolated from bigger geopolitical issues and risks that do seem to be emerging between the u.s. and china right now. also how the company is looking into some key tech partnerships, specifically around things like the cloud that are, quote, going to get announced soon and, guys, just to give you i guess a final taste of just how many ways this company is involved not only in the current covid response but also in how it is partnering with different industries and different companies around that half forward out of covid, just this morning the company announced a new offering that is focused on that intersection for all of these different medical and life sciences companies and the ability to ramp up

manufacturing through technology of vaccines and treatments carl >> morgan, certainly the stock has reflected a lot of that optimism, two and a half month high today we're getting word from speaker pelosi, reaction to the executive order we expect to see from the white house today on social media ylon mui has got that. hey, ylon. >> hi, carl. tech companies are just getting slammed from both sides of the aisle in washington today on the white house's executive order on social media pelosi called it a distraction and she also had some choice words for both twitter and facebook on twitter pelosi said that company had not gone far enough in fact checking the president she said its actions have been selective and she called the current situation outrageous meanwhile on facebook, pelosi criticized its interest in making profit. she says the company only cares about making money, particularly at a time when everyone is so

reliant on these social media platforms while folks are in isolation. she said that all they want are tax cuts and no regulation and she said that, quote, there is no honor among thieves now clearly the tech companies would beg to differ, but it shows just it also shows the tech lash in washington is still alive and well this was the very first question that pelosi was asked this morning. back over the you. >> quite a lot for those companies to navr gaigate for se autodesk ceo will join us. we're back in two. tempur-pedic's mission is to give you truly transformative sleep. so, no more tossing and turning. because only tempur-pedic adapts and responds to your body...

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s&p going for four straight gains. we haven't seen that since february we're holding above 3050 now b of a saying having broken through some big resistance the positioning s ining suggests fur break outs we're back in a minute (bling) see, incident resolved. how did you... gotta enjoy the small wins. you keep being you, derek. keep being you.

welcome back shares of software maker autodesk are moving higher after reporting an earnings

beat i talked to the company ceo earlier this morning to discuss the quarter why he's feeling confident long term despite lowering guidance. >> we had a strong quarter q2 will not be as good some of the things we factored in, i think you noticed the guide had pluses and minuses our revenue will grow 12 to 15% for the year we'll add two to four points of margin that puts us in a pretty elite category how duo see tho we see that? we're seeing couple of things. apac has recovered china has recovered. europe is starting to show some recovery the u.s. looks like it's stabilizing. hasn't shown recovery yet. the wap y we can see this is we can see the weekly active use of

our products which is like real economic activity happening with your tools we watched it go down and start to chart back up which gives us confidence as we head toward the end of the year, we're going to see recovery longer term what is really giving us confidence is how this is really driving our customers to the cloud >> that's the kind of data that you couldn't have gotten with on premise software i also asked what kind of impact covid-19 is having on his business is he cutting workers or is he investing? >> we're kind of in a privileged position we're growing refr kn ining rev margin we see this is a time to invest. are we spending less this year than we anticipated? yes. are we higher? yes. we're not cutting back we're not looking at any layoffs. that's not something in our

future that's not something we're planning at all. we're investing in infrastructure we slowed down some investments in certain parts of our go to markets but not in expansion areas like that. we think this is great time to invest we feel lucky and fortunate we're in the position we can >> this crisis is moving some customers quickly to to cloud. he says some customers are moving, i guess the way overall two years might have been shaved off of the time that a customer base is moving -- moving at a slower clip.

guys >> great stuff, john certainly speaks to this ongoing conversation that we've had throughout the show about that shift to the cloud and the acceleration of the adoption of tech as well in terms of looking at the market right now, you have the s&p up the industrials, the dow industrials are up 139 points. we're continuing to get some of that slightly more upbeat, more positive commentary from ceos whether it was honeywell earlier in the hour. some of the retailers like dollar tree. bank of america ceo earlier today as well. something to keep catching even though it seems to be miss risk off in the market now with sectors like utilities leading the way, that reopening theme continues to dominate. carl >> yeah. we're getting some reopening projections from major of new york city. phase one, he thinks will be a

june phenomenon. the governor talking about continued reopening of the state of new york. some head lielines out of franc. the barbells of the index, hpq we're not doing as much printing at work is the laggard and dollar tree has done well. their earnings were strong let's get back to headquarters and the judge. appreciate it. welcome to the halftime report the so called recovery trade whether it's gone too far too fast and is it a matter of time before money starts flowing back into big tech. we debate that today we begin with a check on stock let's find out where we're trading. consumer names, those tied to the committee