breaking news. another crisis in america. protests rock cities from los angeles to philadelphia, new york city and minneapolis. the unrest coming just as much of the country begins to reopen. there are fears the protests could spark a new wave of cases, fatalities and lockdowns many cities enacting curfews on its citizens as investors continue to focus on the escalating tension between the united states and china over hong kong. america's unemployment rate nearly a 15% will all of this slow in a

faster consumer recovery and it is monday, june 1st you're watching "worldwide exchange" right here on cnbc good morning, good afternoon, good evening, welcome from wherever in the world you may be watching us i am brian sullivan. thank you for joining us on an important day on cnbc. we begin our coverage this monday, as we always do, focusing on markets, economies and global business. that is our business here on cnbc and this morning, in a new month, we find those things are at the crossroads of four very important events number one, the planned reopening of the american economy and whether that is now at risk. two, both peaceful protests and riots in nearly every major city in the country three, rising tension between the united states and china. and, four, 40 million americans currently out of a job and

hoping for a recovery that puts them back to work. throughout this hour and the entire business day, you will hear commentary and analysis from investors, money managers, executives and cnbc reporters in the field covering every angle that matters to the markets and your money among the questions that we will be asking, what indicators will become the market's new compass, perhaps, on the current state of the country? what impact could this have on all businesses big and small trying to bounce back from the pandemic-led shutdowns and u.s. major cities, already at their limit, facing an economic crisis of historic proportions. also, of course, how will leadership from washington to wall street to the west coast address the social current climate we find ourselves in we certainly will not have all the answers. nobody does. but we are going to do our best to ask those questions that you, cnbc viewer and listener, need to hear. welcome, everybody thank you very much.

dow futures are down about 85 points the implied open off about 40. not a big market move this morning. let us try to begin some of those bigger answers to those questions. joining us now is jimmy and peter, both cnbc contributors. gentlemen, we appreciate you joining us jimmy, i'm going to begin with you. it's looking like a difficult week and a difficult weekend in a difficult month in a difficult year for this great country. what is your take on the current situation and how it might impact economies, markets and reopenings >> listen, i think when this pandemic hit, and we are trying to forecast what kind of recovery are we going to have, we knew there was going to be a national quarantine and shutdown, if the government wanted it, i think people weren't going to leave then we started thinking about, what is life going to be like afterward? we're going to cut a lot of checks to individuals. then we're going to have this

small business lending program then we're going to have all these fed lending programs and the whole point -- at some point we knew it was going to be really, really bad this quarter but hoping for a fast recovery we had this downturn followed by a fast recovery. and kind of everything needed to go right the checks had to get out. we had to be very efficient with the small business lending program. the fed had to do its job and we might get a very sharp recovery where unemployment would be falling dramatically, certainly by the end of the year it hasn't gone right at all. even though the government's pushed out a lot of money, there's the small business lending program, a lot of fighting in washington whether to do anything more. now we have have this problem with china and now we have civil unrest the u.s. will not move forward, both economically or any other way, really, if our biggest cities, all cities, mostly our

high productivity cities are in chaos. we had to do everything right and everything is not going right at all >> certainly want. peter, listen, we have seen unrest in this country before. maybe not to this scale in the near term, but we have seen it in the markets and economies, at least in the last ten or so years, have moved right on past it this time we have a pandemic layered on top of that and there are real concerns -- you can't have three people go to a restaurant in new jersey because it's deemed unsafe, but millions of people are gathering in close proximity in almost every major city in the country and there were articles in "the new york times," "the wall street journal," in other words, where experts say, there is a real concern now of a new second wave perhaps sooner than many expected >> it's unfortunate. i questions the only positive, if you can call it that, at least they're outdoors and the

weather is warmer. you're absolutely right. when the economy is growing 2%, 2.5%, you can absorb external body blows when you're in the economic condition we're in, double digit unemployment, self-imposed, it's much more difficult to absorb. and every little thing like this matters. i think at the end of the day, though, you have to figure, what's going to impact a 20-plus trillion dollar economy. if these protests are to go away within a couple of weeks, then this is easy to overcome because that won't make much of a dent on a 20 trillion dollar plus economy. we're in a situation where we're playing this by ear. how many businesses are going to reopen this week how many employees are going to get back their jobs? each week now, more things are reopening. i live in new jersey this week there's going to be a whole new phase that's going to be announced we have to watch that in the face of these external events. but, for sure, the markets and

the economy in the state they're in - >> peter, i'll go back to you because we essenticertainly hop is the case. i was at the shore this weekend and speaking to small business owners who rely on summer income they all said, i'm on the edge i'm on the edge of total disaster and economic ruin if i don't open up and get some business because memorial day, the weather was terrible if i don't get some business now, i'm done. 30, 40 years of work, generations of work, over. there's a real concern that if we see a new spike in cases or more civil unrest, things could lock down further. i get your point about gdp i understand that. this is ultimately a small window in the long history of economic progress. i get that but you understand, i think, the point which is that these business owners, whether in l.a., minneapolis or seaside heights, new jersey, they need the best possible situation

right now to survive >> for sure. and i've spoken to some people in new jersey, they don't understand that every single day is crucial for these businesses. every single day they're not opening, they're bleeding cash every single day they're not opening, it's going to make it harder to bring that employee back to work and they got to get on with this a lot of other states are doing this there's evidence about how to bring this back. georgia's been open for a month now. las vegas is opening this week, and new jersey still can't figure out how to open up a barbershop >> yeah. you know, jimmy, there's going to be a lot of comparisons, there already have been to 1968. of course, you've got a pandemic, you've got protests, kind of a new space race layered on top of all of that. as i tweeted out, you also have demographics in the late '60s you had the baby boomers in their mid to

late 20s right now you have millenials in their mid to late 20s. the biggest two generations in american history we're showing a graphic now. the stock market from '66 really to 1980 didn't do anything long term unless you were a trader, a swing trader, you probably made no net return for the next 15 years. i'm not trying to make some long-term negative implication here, but i think you do get my point. >> yeah. listen, from 1966 and really to 1982, not only did the market go nowhere but inflation adjusted and it was down by a lot it was a slow motion, catastrophic bear market, time of incredible economic volatility don't forget about the '71, '72 recession and then the '82 recession. demographic bulge moving through the system historically we have that happening, and also a lot of civil unrest, and also a downshift in u.s. productivity

growth in the early 19 70s terrible decade. we don't want to say, get out of stocks, we're in for a terrible 16 years i hope that's opposite the case. i would hope with this spacex period, perhaps of ai higher productivity growth, not just space but throughout the economy. hopefully a lot of companies will use this opportunity to invest and modernize business, bring in new technology. the past provides, i think, a warning. it doesn't have to be our destiny but it provides a warning, if we don't get our act together on all these fronts >> because, peter, unlike that period that we just showed that market, two recessions, negative real return with inflation over 15 years what we did not have then was two things -- number one, perhaps the most wide divide between main street and wall street in modern, at least recent american history. number two, and because of that,

a federal reserve that is more than willing to spend trillions of taxpayer money ultimately to backstop the equity and debt markets. does that alone make this very different and very unique than any historical comparison? >> certainly from a monetary activism standpoint. on the other hand, we have extraordinarily higher debt loads and we have -- because of all that fed action, much more highly valued markets. we have the stock market that's trading at 18 plus times 2019 earnings, which was the best level of earnings we've ever seen so, you can understand that it's trading at a much higher multiple, even if we look to 2021 or even 2022 earnings are going to look like the question is, what happens when all this fiscal largess expires in the fall and can the fed continue to keep the markets on its shoulders

what happens if the economy does pick up? what happens if we actually get some inflation and the fed needs to actually pull all this stuff back what happens then? then we have a whole new set of issues even if we conquer the issues of the pandemic and these other things >> there is still the opportunity -- i mean, i understand our eyes were captivated this weekend on really the protests across this country with a little bit of space race thrown in there, which was a moment to feel good about what we are doing. but there is still the ability to come out of this longer term. i think it's important for investors not to be myopic in the short term and realize, you are investing for the long term of this country. >> long-term prospects remain fantastic. spacex is one example. but we need to do things right now, and that includes washington leadership and addressing these issues. >> jimmy and peter, gentlemen, we appreciate you leading our

coverage here on a very important day and a very important week, a very important time for america thank you very much. when we come back, much more on the growing crisis in america, including what finance heads are saying about what some of the biggest risks are to the economy right now. first, important new details on how china is using what is happening here to justify its actions in hong kong and even mock the united states later on, a "worldwide exchange" exclusive with jean-yves fillion, his return to new york city, the federal reserve and will it change investing for the long term. need better sleep?

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chinese state media and government officials using the u.s. protests over the weekend to sow new seeds of discontent and distrust around global economists as communist authorities in beijing try to justify their anti-free speech actions in hong kong eunice joins us live from hong kong. >> thanks so much. the chinese state media, as you said, are having a field day of showcasing the u.s. protests and describing them as a reflection of the u.s.'s chaotic values and also accusing the u.s. of double standards when it comes to

protests with the logic being that washington is perfectly fine with cracking down on its own protesters, but when it comes to china, very critical of beijing when china decides to crack down on theirs in hong kong one of the most common and mocked phrases on state media and social media in china is beautiful sight, after the global times editor rhetorically asked how speaker nancy pelosi if she believes the u.s. protests are a beautiful sight in the same way that she described the demonstrations in hong kong? separately, officially, the foreign ministry spokesperson, when criticized about the national security laws that beijing has in store for hong kong posted on twitter one line, and it's, i can't breathe, which is, of course, the famous final words of george floyd. so, the foreign ministry has also been quite critical of the

u.s. after president trump had said that he was going to move towards pulling the special trading status between the u.s. and hong kong. today the ministry said they were going to come up with some other countermeasures. you know, brian, i think what's going to likely happen even further is the chinese government is going to continue to justify its go ahead with the national security law in hong kong with these protests, and also to use it -- use them to deflect international criticism. >> it appears they already are you look at the local papers, state media there. you touched on just a bit. what are they saying not only about the protests here, but by the way about the pandemic need we forget that. there is still a global pandemic going on and there is growing criticism and concern among scientists from "the new york times," "wall street journal," major media outlets starting to report more and more that there is real concern about how this virus was handled in that wuhan

laboratory >> yeah, but that is not really the narrative we're hearing over here i was just looking at some other reports in state media where they were placing the entire blame of what is happening right now in the u.s. and the protests on the trump administration's mishandling, from china's perspective of the pandemic. the narrative here has been over and over that china gave the u.s. a lot of heads up in early january and that from china's perspective, the origins still needs to be based on science so, that's what we hear over here the public, for the most part, is getting barraged right now with lots of pictures of u.s. protests you know what's also interesting, brian, in the beginning when we were hearing about the u.s. protests in minnesota, there was no coverage of it. suddenly over the weekend there's been this surge. obviously, from the chinese perspective, they're finding it quite useful as they continue to

move ahead with the national security law in hong kong. >> they certainly are. eunice, always appreciate your candor in coverage after reopening their doors just days ago, major retail stores forced to shut down again because of the protests. their response ahead. dow futures are down about 80 points. we're back right after this. >> announcer: today's big number -- $34.4 trillion that's the projected u.s. debt in 2030. according to the congressional budget office. that wldepse ou rrent ou rrent there are times when our need to connect really matters. to keep customers and employees in the know.

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. welcome back in. good morning let's get more on the growing crisis in america and some of your key world, national headlines. nbc's philip mena in morning with those >> in minnesota the gov nofr announced attorney general keith ellison will be the lead prosecutor in the george floyd case the floyd family asked ellison take over the investigation. the transfer comes after minneapolis legislators voiced their concerns about local

prosecutors. another night of fiery protests in the nation's capital. a small building went up in flames just across from the white house where demonstrators kneeled, demanding action in the death of floyd and others who have died in police custody. officers used tiered gas to dispersion the crowds with the help of the national guard, u.s. marshals and drug enforcement. these protests have now spread overseas in london, thousands marched from trafalgar square, past parliament chanting "black lives matter." those protests defy the uk's coronavirus lockdown. >> thank you very much. when we come back, a "worldwide exchange" exclusive will bnp paribas ceo jean-yves fillion. when can you expect to get back into the new york office we'll find out dow futures down just 33

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with xfinity a breeze. visit xfinity.com/moving today. a new crisis erupting in america. the u.s. grappling with a deadly pandemic and record unemployment now facing social unrest as mass demonstrations take place across america. riots and looting during those demonstrations leave a

wake of destruction in nearly every major city in america. amid the unrest, the country trying to get back to work a ceo of bnp paribas usa here, the timeline and challenges of getting employees back into the office, particularly in new york city it monday, june 1st and you're watching "worldwide exchange" right here on cnbc welcome back in. good monday morning. i'm brian sullivan starting your day here on cnbc, we begin this half hour with dow futures actually showing an implied open that is in the green. futures are down just 22, but on a fair value basis, we could actually see a flat to even slightly higher open pretty amazing once again we're focusing on the markets. your money and really the convergence of four important and connected developing stories. number one, the reopenings of more business across america

two, civil unrest, protests and businesses having to shut back down in many cities across america. three, rising tension between the united states and china. and, four, a u.s. unemployment rate that likely hit 20% in may. that is 40 million americans out of work and the highest level in the post-world war ii era. throughout this hour and the entire business day right here on cnbc, you can expect expert commentary and analysis from investors, executives, and our own team of reporters covering every angle that matters to the markets, your money and the country. among the countries we will be asking the questions and answering, what indicators will become the market's new compass if any on the current state of the nation what impact will all of this have on business large and small, from 100,000 employee company to a two-employee also

the chairman of corporate and institutional banking for the americas we appreciate him joining us here live on "worldwide exchange." jean-yves, it's great to have you back on the program. we want to talk about getting employees back into the office, the fed, the esg we need to ask as someone as a ceo of a company that employs thousands of people across the country, in new york to bank of the west, what is bnp paribas doing for its part to make sure we try to reduce and benefit income inequality and racial divides, gender divides,

everything that is dividing this nation right now from your perspective, what can we do better to make sure every american has a shot in this country? >> brian, thank you for having me it's always a pleasure to be on your show. listen, the series of events that led to this situation are tragic and heartbreaking you know, this just goes against, you know, the values we have at bnp paribas and our deep commitment to inclusion. we're very saddened. >> it's a tough commentary and we'll have to see how the days and weeks play out best to you and your employees everywhere with that in mind, you have a couple thousand employees in new york city. many of them are in a skyscra r skyscraper as we start to discuss reopening new york city, parts of new york and new jersey, you and i have spoken, what are the biggest challenges that are facing getting those employees back to

work and also, you may have a lot of employees watching right now, do you have any timeline for that >> you know the bank very well we have 14,000 employees in the united states. we have 3,500 employees in the new york metropolitan area and in my job, the absolute parody is really the security and safety of our employees. i'm happy to report that we have actually over 90% of our u.s. staff working from home and the bank is moving full speed serving clients. i want to thank them, by the way, for their commitment and dedication because it wouldn't happen without them. brian, there is no absolute rush to come back to the office however, to your point, we've been doing enough planning what i can tell you, it's going to be gradual, it's going to be phased don't expect more than 15% of

employees back in the office it will happen over the summer months we'll ask staff working in critical area, such as trading and payment and clearing, to probably come back first and we will reassess it will be depending on state guidelines, on growth policy we're a global bank, brian, and we have a strong presence in asia, in europe. we've learned a lot from our colleagues there because we saw it coming, you know, going west. and we've learned -- we engaged with employees to understand their actual concerns. they're around commuting, you know, public transportation. they're around testing, you know, who's going to be tested, what kind of testing it's around social distancing, it's around cleaning, making sure the office is safe. >> two things there. sounds like 15% of your employees probably, you know, not -- or may be coming back

into manhattan this year, jean-yves. sounds like what we saw in new york city, like many other cities, had protests and there were some clashes between police and citizens that, while terrible to watch and terrible to experience as a nation, may not influence your calculus, your thinking with regards to getting employees back in because they weren't coming back already this year, correct? >> one of the main paradigms in what happened with the pandemic, you know, we've learned how to work from home or how to work from anywhere than really coming back to the office will be around making sure that, you know, employees will be safe in the building and obviously depending on what occurs outside of the building as well. that's really what we're taking into consideration again, we've been efficient. we've worked very efficiently with a large part of the staff, you know, outside of the office. as you told me, brian, even two months ago, that we will be

running this bank with, you know, 90% of the u.s. staff, you know, working from home, i would not have believed you. >> yeah, and if you had told me two months ago that we would have 40 million out of work, a global pandemic and all of those people working from home, i would not have believed you as well think about two months ago, and i want you to address the state of business, because your bank is really unique you do trading, derivatives, high-level wall street work, but you also have bank of the west, doing retail and small business commercial banking in many parts of the united states as well how much have you seen business change from two months ago to today? >> first and foremost, in terms of business, the bank has been really active, supporting our clients across the full spectrum you just described you know, on the corporate side we've been leveraging the balance sheet, providing access to capital markets in many

different currencies in our case, in u.s. dollars, we have a strong underwriting capabilities in the united states, in euros where we lead, we've been active advising clients on hedging strategies and executing them with the increased volatility across rates, equities. on the retail side, as you mentioned very rightly, brian, we've been supporting our individual clients, our small and medium sized businesses, participating in some government programs one program you covered very well, brian, is the paycheck protection programs. do you know how many applications we processed over just a few days? just a number. >> no idea. >> 18,000 applications 18,000 applications over a few days, converting into $3 billion lending and i'm very proud of that because we protected doing so over 300,000 jobs >> wow, 18,000 applications in

just a couple of days from part of the bank of west, i would imagine. i want to wrap it up with this, which is something that sort of backstops and i guess layers on top of all of this, which is our federal reserve, the european central bank, your central bank in pa irris, they're interconnected there is criticism we've never gone this big, billions of dollars globally, and there's criticism it's not enough, believe it or not be, layered across income inequality from main street to wall street do you agree with the federal reserve's actions? do you agree with the european central bank's actions were they necessary, too much, not enough >> what i know, brian, they've been very, very -- they've done a lot. you know, we have to command central banks here, particularly the fed and the ecb for, you know, adjusting money trade policy from reigniting expanding existing programs for injecting liquidity, which, by the way,

has stabilized capital marks it's been done in good coordination with the administration, the treasuries the $2.2 trillion c.a.r.e.s. program, led by france and germany for the 750 billion euros of, you know, rescue relief fund, which comes, by the way, in addition to what every individual state provides in europe and is it enough i think it really depends on the pandemic i think the view is pretty much a lot of the ammunition, if there is a need for more, i think it's just going to be going deeper >> jean-yves fillion dealing with challenges on many levels we appreciate you getting up early and joining us on "worldwide exchange" for an exclusive. take care. >> thank you for having me it's a pleasure. coming up, what cfos at some of the nation's biggest companies are saying about the economy's road ahead details of the challenges as

well as some signs of optimism that are sprouting up. that's right there's some economic optimism we could all use so on a monday morning. dow futures are flat we're back right after this.

welcome back new this morning, the united states semiconductor industry is reportedly preparing to make a push to try to get billions of dollars in federal funding according to "the wall street

journal," the $37 billion proposal by the semiconductor industry association would go towards building factories and research to keep the united states ahead of china and other nations that heavily subsidized their own semiconductor industries the journal points out the push comes as the white house and congress work on ways to reduce america's dependence on asia for technology products and compete effectively with china as state, federal and business leaders continue to try to navigate a path forward from the ongoing lockdowns, a new cnbc survey reveals how cfos feel frank holland back at cnbc hq with more on that. good morning. >> good morning to you two-thirds of north american cfos say they favor an additional economic stimulus bill in the u.s. to mitigate the impact of covid-19 virus concerns leading to a grim gdp outlook with cfos seeing the

entire global economy declining. all of latin america downgraded to a strong q2 even the u.s. and canada getting downgraded from stable in q1 to declining in q2. low confidence related to the u.s. markets more than half seeing it more likely the dow jones falls below 24,000, less than a quarter believe it will cross 29,000 for the very first time. but, there is some optimism that some things will return to normal, whatever that means going forward. despite about 70% of s&p companies pulling or adjusting their guidance, nearly 44% of cfos believe most companies will resume things -- will resume guidance when things return to normal again, whenever and whatever that will be also optimism about the workplace. here in the u.s., more than half of the cfos say nearly 75% to all of their employees are working from home right now. they expect that number to fall to only about 20% by september 1st, the monday before labor day

here in the u.s. and as the tech-heavy nasdaq has gained more than 20% in the past two months, cfos see big gains in tech coming half saw health care as the fastest growing sector, understandable during the pandemic in q2, almost a complete reversal aztec seen as the growth driver for the global economy. brian, back to you. >> frank, great stuff. we heard from the ceo of bnp paribas almost mirrored our result he said only 15% of their workforce in manhattan will return to the workplace, right in that window you laid out will be working from home until the year 2021. pretty amazing stuff >> yeah, brian that means there's definitely a lot of thought about when to bring people back and what steps and measures need to be taken. again, some cfos see some

optimism but it's a very realistic survey that's why we value the results we get from these financial decision-makers. >> frank holland, good to see you this morning we'll see you soon >> good to see you. just as much of the nation is beginning to reopen, businesses big and small in major cities across the country forced to shut down once again as fears the protests could lead to a new pandemic second wave. we'll talk more about the challenges ahead dow futures are down just five we're back right after this. need better sleep?

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okay, give it a try. between wisdom and curiosity, there's a bridge. between ideas and inspiration, trauma and treatment. gained a couple of more pounds. that's good for the babies. between the moments that make us who we are, and keeping them safe, private and secure, there's webex. ♪ ♪ beautiful. welcome back the new month means states across the country will continue their efforts to either enter or expand into post lockdown phases of various levels. that includes retailers.

but this weekend's protests and riots in some cities have left many stores, big and small, instead of opening, cleaning up the destruction left behind. courtney reagan joining us with more good morning >> good morning, brian good to see you. so many stores were damaged and some looted during the weekend's unrest that turned violent in cities across the country. this is happening just as many of these stores are trying to reopen after the coronavirus mandated closures. the target store on lake street in minneapolis near where george floyd was killed remains closed. this is one that was badly damaged, along with five other target stores still closed until further notice after hundreds were closed at various points during the weekend the associates at closed stores will be given pay and benefits for 14 days and be able to work at nearby locations if they choose in a blog post ceo said in part, the murder of george floyd has unleashed the pent-up pain of yearss as have the killings of ahmaud arbery and breanna

taylor including the nordstrom store there. the flagship store in seattle was also damaged nordstrom closed all stores on sunday with hopes to reopen as soon as possible ceo and president put out a statement saying, in part, like so many of you, we have been deeply saddened and angered by recent events in our country, too many others reflect the deeply ingrained racial prejudice and injustice that still exists in our communities today. walmart has closed several hundred locations as a precaution, though most are not in city centers where a lot of this unrest was centered ceo said, quote, at a time when our response to the covid-19 crisis has brought out the best in us, what took place earlier this week is further proof that we must remain vigilant in standing together against racism and discrimination an awful lot for our country to deal with this weekend and the

retailers are just among those trying to assess the damage and wondering how we move forward in a better way back over to you >> yeah, certainly they are. of course, these retail workers, many of whom have been working with masks on, been staples of the community so we can go out there and get our needed supplies, especially in the early days they were literally the front line workers many of these workers, who don't make that much money, were also facing getting sick, and many of them did get sick. this is just another hurdle for retail in many parts of the country to cross and for those workers that go to work at 4:00 in the morning until 4:00 in the morning the next night another hurdle for them to deal with. >> absolutely, brian that's a really good point a lot of retailers have tried during the crisis to figure out ways they can contribute back to the community. like you point out, the people working in their stores that are part of the community, that are suffering through this as well and i think this was just an unfortunate consequence. some of the ceos have put it as this pent-up unrest we're all

feeling right now. hopefully we can move past this and look forward to some more nonviolent ways of getting get out some frustration certainly, there are some things that need to be fixed, i think, in this country. >> well said courtney reagan, see you soon. thank you. let's expand this now to all of what we have been talking the entire hour and stay focused on the marks and your money and bring it together with brian bellske. brian, we're showing it now. everything that investors are facing, you have the virus, the lockdowns, the pandemic, you have increased china tensions and, of course, now you have civil unrest and mass demonstrations and protests across the country i understand that you remain optimistic i've read your research. but look at those macro events none of which, with the exception of perhaps china be and civil unrest going back years and decades, but not to this level, not to this level, existed two months ago

>> good morning, brian, from minneapolis, which where the behavior is not indicative of how we actually are in minneapolis. our hearts and prayers obviously go out to the floyd family at the end of the day, this has been a terrible event for our country. what's going on with respect to trying to wrap this into a bow, which you tried to do during this hit is we have a lack of confidence right now in our country. it falls through with respect to what's happened in the stock market, certainly and now in the overall aura and conscious of the country. here's what we would say, and you focus on the word macro. and so many investors that we cautioned investors that focused too much on macro and too much on quantitative analysis the last 20 years, and i think that's part in parcel, why so many people have not been bullish, brian, and how they missed this move from march 23rd if you take a look at valuation, in particular, which tends to be one of the stumbling blocks for many of the bears out there, we're sitting at 202 is times, which is at or near 20-year highs. if you take a look at dispersion

of value in the market, we have a 20-year high in difference between high valuation and low valuation in the market. there are opportunities. from a stock-picking perspective, you know, from an issue in terms of discretionary and retail in particular, courtney did a great job kind of teeing everything up, but at the end of the day this is a sector that's had a lot of problems for 15 or 20 years in terms of capacity and the stocks that have been hit the most and companies hit most due to some of this behavior with respect to rioting and looting will come back very strongly because they are, quote/unquote, the staples i think some is going to be a little overblown we have a crisis in confidence right now, but at the end of the day, we're the best country in the world, the best companies in the world and we will overcome this. >> i think that's well said. brian, here's the other thing, you look at last night "the new york times," "wall street journal," name your publication, this is not opinion, there are real concerns among health experts that these protests could set off that second wave we worried so much about in the fall.

whether it will or won't, we don't know but the market at least, when i look at the futures, doesn't appear to be pricing in the chance that many areas could be either relocked down because of, a, new second waves by millions of people across the country gathering and shouting in close proximity to each other, number two, we have effective lockdowns already in some cities via curfews. there's a very good chance, when i look at the futures, the dow could rise today, brian. that seems just hard to square for many people, i'm sure. >> i think it's a simple math question and problem, brian, where the potential percentage of people contracting covid-19/coronavirus based on this behavior versus the amount of people that will go out and start buying things again and going back to work again, i think the percentages skew toward the latter. i know this is all very front line in terms of the headlines and things like that i caution investors to not focus on what's happening right here in terms of the headlines, in terms of the top three bullet

points we're all reading about and take a look at the bigger picture. the bigger picture is the economy is opening up, people are going back to work, covid-19 is getting better from a longer term perspective we have to kind of control what we can control as a portfolio manager you can control what's going on in the stock market and control the u.s. stock market actually relative to the rest of the world, we believe from an earnings and cash flow and dividends perspective remains solid. >> we talk about ratio, whatever it is, you believe, yes, these images and what we're dealing with as a country now, whether it's the pandemic, so many fatalities, george floyd, the protests, that we have to look out a year, two years, three years, and realize that corporate america businesses across this country will come back and that's what you're investing for today, is that future. you're not investing today for

tomorrow. >> we're not and i think so much of our reactions, quite frankly, and goes back to march where we're reacting to today, tomorrow and the next few weeks people looking at the metric valuation, valuation is a horrible metric with respect to future performance it works longer term you know, riddle me this, batman, how many people look out ten years on a valuation in terms of pe? pe works when you look at markets over a ten-year time period or more one to two year doesn't work very well. we think the wherewithal of the united states economy and population and stock market will win as we transition from depair to hope. >> the yes there was some great scenes of hope in michigan you had that sergeant in flint who led the protesters put down his hat and batons and said, you want me to walk with you? okay, let's go they all walked together there are signs of hope we see here quickly, brian, no change to your forecast from a gdp perspective because of what we're seeing now, that the

economy story will be the same now in a year? >> it will be. in fact, a lot of the economic data has been too negative our target for 3400 by the end of march next year still stands pat in terms of the s&p 500 and some economic data is coming in less negative than sh thought, as we warned everybody status quo, the bull market is gone. >> brian from minneapolis, minnesota. pleasure to have you on on the show appreciate it. best to you and yours. that does it for us on a very important "worldwide exchange." "squawk box" picking up the coverage dow futures are basically flat we'll see you tomorrow squawk and the gang are next you doing okay?

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"squawk box. a crisis in america as protests over racial inequality and police brutality rock most major cities the social unrest coming in the midst of the coronavirus pandemic states looking to push forward with phase three reopenings this week, a process that could now be in jeopardy all this happening as investors continue to focus on the escalating war of words between china and the united states over the crackdown on hong kong it's monday, the 1st day of june, 2020 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. morning is rising across america. we're watching