in new york, store fronts shattered. president trump making history threatening military crackdown in the streets of the u.s. and this morning, finding solutions. we'll talk to business and political leaders about equality and creating opportunity in a path forward for america "squawk box" begins right now. good morning welcome to "squawk box" on cnbc. iec i'm becky quick along with joe kernen and andrew ross sorkin. we are looking at green arrows again. yesterday, saying the market has

no conscience. despite the turmoil, the market continues to plow higher investors may be looking down the road certainly, people don't seem afraid to get out on the streets at this point. s&p futures indicated up by 20 the nasdaq indicated up. 10-year note where we haven't seen it at this point. just below 0.7% if you've been watching oil a gain of better than 2% this morning. you are continuing to watch the markets power higher despite what we are seeing happen in this country >> it is a remarkable thing to be hold on that very topic we should talk about that story.

citi citi cities torn apart. riots and looting gripping cities from new york to los angeles. nork imposing the first curfew in 70 years. macy's, aldo, nike in new york, curfew will begin at 8:00 p.m. this evening. the images are powerful. it is upsetting and it is sad. >> goes until 5:00 in the morning and nothing going on right now. time square wasn't the place where much of this was happening anyway i wondered about that. i almost get here just before

5:00 i'm prepared with credentials and everything else but the curfew does go until when i'm coming through the tunnel. >> joe, i was going to say, i noticed the storewindows behin you, even the hard rock boarded up there that is an unsettling sight even with the police presence there in time square >> yes i don't imagine 6:00 a.m. as peak time. we got to sleep. i think that's why there is a curfew put in. 8:00 to 5:00 is when things happen president trump urging governors to deploy the national guard and dominate the streets he threatened to deploy military in cities if leaders fail to

defend the life and property of their citizens saw him earlier all decked out you got a meeting or something, eamon? you got the jacket and tie >> i got a meeting over in the den after i do this live shot in the living room. >> are we still social distancing i don't even know anymore? take it away >> look, i mean, these were scenes we've never seen at the white house yesterday. the president appearing in the rose garden a midst this global pandemic reporters and masks covered in masks. talking about violence in american streets the president positioning himself here as horrified by what happened to george floyd but also horrified by the violence and looting that has

accompanied these protests >> all americans were rightly sickened and revolted by the brutal death of george floyd my administration is fully committed that for george and his family, justice will be served he will not have died in vein but we cannot allow the righteous cries and peaceful protesters to be drown out by an angry mob. >> and joe in the background of that sound bite, you could hear loud booms just as the president was speaking, law enforcement was clearing the street on pennsylvania avenue between the white house and lafayette park violently moving protesters out of the way with tear gas in order to clear a path for the president of the united states who said he wanted to go across

the street to st. john's church on the other side of the park. that's what the president did yesterday after those protesters who were peaceful cleared the way. you can see him making his way in order to get to st. john's church which was boarded up and briefly on fire earlier in the protest. the president holding up a bible. not saying anything but conducting a photo op. raising the bible in one hand in order to show, i guess, a message of solidarity with religious folks saying it is a bible to the press who gathered there. then the president walking back inside the president clearly sending a message here in an attempt to dominate the space around the white house. a striking scene and should be political blow back.

the president criticized this morning saying he didn't give any notice criticism of the move yet. scenes we have never seen before just weird walking around. the narrative about lafayette park being safe. it was so safe, i'm going to walk across there. right through adams. i didn't see it. it was too late. my wife told me she started crying i go what now?

she said, i was watching the church when we stay down there and it was in flames i remember notre dame. when you see things like that, it is weird. >> it is for thoefz us who live here. presidents going back to when? it is called the president's church, right? >> right for those of us who live here, this is a part of our daily lives. my wife and i had our wedding resemgs there. it is heartbreaking to see it. it does not seem to be an effective response at this point to quell this and leaders are looking for the right response and we just haven't gotten there yet. >> are we going to see military

force? i want that and i don't want it to continue. it is like you have to enforce the rule of lawat some point there is going to be troubling issues there the president wants to call out the military and the same time, governors are saying they don't want to escalate they want to deescalate. the president in a conference with the governors berated them saying they look weak and like fools if they didn't dominate the protesters so clearly this exercise of clearing the street and the park, that was the president sending a message. should be noted, those protesters clearing out were peaceful they were not rioting

the president clearing out the peaceful protesters sending a message. >> that was going to be my point. not all protests are equal you have protesters in st. louis firing on police officers. that is a different story. one of the hard thing is trying to find the peaceful protesters and then with the flat out rioting. you look at the images today with the big business owners and different from the small business owners who can't come back it is heartbreaking on a million different levels trying to follow this and information coming at us from a million different directions >> one last thought for you, i was out in some of those protests in 2016 we are not out there this week

yesterday because of the virus in 2016 these things shift closely in the moment. you can have a peaceful surge. there are clubs out and things get heated quickly it is very moment to moment. you don't know whether this is going to be a peaceful protest or not i look ahead to our coverage this feels like a nation so much more tense and broad and reasoningry. in 2016 was the angriest we've seen we could be looking at a preview of the election season with huge stakes on the table for both the left and right we've seen now very angry protests by right wing and left wing folks and we are just in

the beginning of june. >> you are young you've got that gray hair. 68 convention, i remember it i was watching it. didn't have big opinions on it i was only 30 or 40, i guess a joke, eamon. >> i wasn't there. >> you were in your early 30s. no, i was not but i do remember. it was around the election i remember richard daley well. he was a strong fisted man i digress. i don't know, that fireplace is calming. almost like a fire side chat >> yes i'd put the fire in and it is a little too hot >> so are you for my taste

coming up, we'll continue this conversation this morning the nationwide protests have meant the unofficial end to the pandemic lockdown. now sparking new fears to communities that are already been hit hard. dr. scott gottlieb talking about that look at shares of visa payments decline from 5% in may. that was a smaller drop from the decline they had seen in april investors taking stock in that news we are right back after this you doing okay?

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protests across the country have officials concerned there could be a spike in the virus. dr. scott gottlieb, serves on the board of illumina and pfizer we see again and again how many cities are involved. you can make that how many gatherings we are talking about. not social distancing. many with masks, many do not is this kind of an inadvertent experiment whether we'll see the virus rear its ugly head and spike in these areas

do you think that will come? >> i wouldn't call it an experiment that's a possibility of change we'll see from these gatherings. you see people wearing masks in these crowds some of these places are places with a high privilege of infection already when you look at minnesota already seeing a spike of hospitalizations. you have to believe these large gatherings would look at the subsequent spread. they'll look closely trying to take precautions out of these. are we going to see what a reopening would look like that didn't involve protests. it looks like -- we went from nobody anywhere in the streets in new york to other cities to being almost athletic event size

gatherings of people and not voe far from each other. it is all outside. will that make it less likely it becomes real hot spots because it is outside. i don't know >> perhaps less likely the bottom line is we'll see some transmission as a result of these gatherings we are going to see the result where there is still spread. shouldn't be a surprise wool see increase in cases. whether or not we can call it what comes out as a spike in cases is unclear in some of them, we know this is on the rise. this is a difficult moment for a host of reasons.

not the least which we have a continuing pandemic and spread of the virus coming down that curve we are likely to see the spread >> making sure they are safe becky has the question just on the same point i know you've been thinking july and august we might get a breather and hopefully the virus will die down a bit. i've been counting on that myself and hoping for it based on what we've seen over the last several days. if you are holding off to see what the numbers show. it is really hard to tell, becky. not yet. these gatherings are young people in these crowds trying to

wear these masks we are gooding to see these large spikes there is a risk. a lot of difficulty things coming out this adds to it. i wouldn't conclude we'll have large epidemics owing to these events just yet. we'll wait to see these happen refilling sports and other things happening where we are bringing people together as well it will be hard to tease out if we do see increases. it is expected and will be hard to tease out the contribution to these events versus the virtual openings we saw a higher background rate of infection that might be a place to see the greater infections are >> we all want a vaccine

quickly. you need to do this safely moderna starting again there were positive comments that the much bigger study i think they already began all vaccines are not created equal. do you feel some are safer than others if you use whole spike proteins, could you use some sort of citokine >> we don't know what would cause the side effect. there is a risk causing the post virus things we are seen is a spike in the protein you could theoretically have side effects from the vaccines you are seeing from the virus

itself this is why it is important to do large trials. there will be a real urge to license or make these available on emergency use basis on the ability to develop and use antibodies come the fall i think it is important we complete the large trials needed for this to be truly effective, with he have to get a lot of people to take it. getting confidence is to make sure to do the trials. >> 600 large, this moderna trial is that large in your view >> to do the proper trial, you need 10s of thousands of patients there could be 40,000 people that get the vaccine >> you could do different vaccines on 30,000 all at once so we are not doing it where it takes years. >> right

but the arms would be large and show preliminary evidence to show one is working better than the others you would overrole the one that is working better. >>. >> if you don't see an outbreak or any kind of related spread over the next coupling weeks will that give you confidence. a lot of people are questioning the expert and the doctors saying that is a real critique because of that that will be really hard to tease out implications on the gatherings

we were likely to see before the slow burn where we level off and continue the spice in cases remember, a lot of these gatherings taking place and coming into those cities so where do you go for the spike if you were trying to correlate it i think the question we'll ask going forward. plenty of people spend a lot of time looking back on what we did to try to break this epidemic is what we could have done to better target. we had to do what we did in new york, chicago and new orleans. no question about that we had raging epidemics in those cities focusing on those places. we did that to some extent we had a shut down of schools

for example. we didn't have good enough testing. >> right but why wouldn't the nfl have an audience if health care workers like yourself and experts are suggesting that these protests are not a problem, why wouldn't you have an open stadium outdoors and wore masks. >> i never suggested protests weren't a problem. i said we'll see changes in transmission as a result of these gatherings it is too err will i to tell i don't know who was in the crowds it is hard to draw a conclusion right now. we are reopening theme parks air travel is up texas is talking about bringing people back to stadiums. those things will open up over the summer against the back

drop so all the benefits kind of get washed out by what we are doing more that sets us up in the fall. if we go to the fall and we are still having the 20,000 cases a day. that sets up a lot of risk in the fall a handful of cases seeded the country. we'll have tens of thousands of cases here to seed ourselves >> the news cycle has been a little strange the medium coverage. we got off covid quickly it is weertd to watch.

all we are talking about now is the protests and everything else it is bizarre. it is strange to watch we appreciate it thank you. >> when we return, it has been an incredible here for businesses around the world. we have the latest by two nasa companies. stock to watch is next take a look at the biggest pre-market gainers "squawk box" will be right back.

welcome back starbucks employees are facing a tough choice face reduced hours or take unpaid leave until september they don't expect p to bounce back until autumn. keeping the dining in most cafes closed down about 1% in after hours trading. apple cutting prices in china on the latest iphone. ahead of a major shopping day.

telling analysts it is only the second time it participated in the 6:18 event with discounts like that. subscription fashion retailer stitch fix is laying off 1,400 stylists in california that's about 18% stylists pick out clothing and accessories. it plans to hire 2,000 stylists in locations of lower cost of living than california where most of the stylists live now. coming up, we'll talk about the potential impact of the economy and the recovery we have a big lineup throughout the morning of political business leaders looking for solutions. rick scott will bring us at 7:00

ceo of sanofi and we look at s&p 500's winners and losers 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.

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good morning take a quick look at u.s. equity futures. green ar owes across the board nas looking higher as well s&p 500 looking higher as well

close to 20 points higher a midst the unrest and everything else going on. >> watching everything reopen around the world too if europe is up, that gives a tone to our markets. the mark et doesn't necessarily think about how things effect the businesses the money flows down hill. a very fragile time for the country. steve liesman joins us now with more got the tie on today it is tuesday. doing the no tie day on friday >> the bureau chief here has declared friday to be a casual day. the data we've been following

for the reopenings has shown some improvement now the question is whether or not these riots end up derailing that and what you are talking about with dr. gottlieb and the spread look at the apple mobility data and searches for driving, walking and public transit they gauge that as a percentage of january 13. can you see it has come back quite a decent way here. anything but transit has come back we take a seven-day average in order to smooth out the data here you can see it has come back not quite normal don't get too excited about this work and school are a lot of the reasons for transportation you don't do searches for that for that, we look at tom tom data that has declined a little bit

we are not seeing a huge return to work or school. the difference from normal is some what worse than it was at the beginning of the month we are not seeing too much traffic or congestion. one interesting factor here, you can actually maybe see the demonstrations show up in the data this is searches for walking directions in minneapolis over the past weekend what you see is an absolute search here relative to what it was in normal times as people search for walking directions. that may be the sign of this outpouring there it is showing up as a spike in the data. one of the things we are watching is this open table bookings it actually showed six days of improvement. on sunday, it started going back the other way. we'll see if that is another

possible effect. >> all right, steve. thanks where we going >> quick question for steve. steve, on that information you were talking about, open table, didn't they go to zero at one point. what kind of improvement are we talking about. >> they don't go to zero they go to minus 100 i'll call it up. that's a percentage of normal here where is my open table data? there it is. looking at the u.s., which is up a little higher in my spread sheet here i can tell you that the improvement, it was down to minus 93%. then it got to minus 80%

on sunday, it went further negative germany, it appears you need reservation. this high frequency data is worth following. very complicated and easy just to look at the surface data. you got to dig in to what this data is showing us >> none of this stuff is straight forward >> a huge example of the extraordinary times right now. joining us now to help navigate it all is chief market strategist at tdameri trade.

>> let's start with this, what are you hearing from customers right now, i can't even imagine. as someone who watches the maerkt, i am confounded. >> i think a bit of the same thing. you would think with all of the unrest in the country, you would think it is more confounding for people watching in their cities, et cetera. we are not seeing people like selling things out of panic, which is fine. they still want to buy things in longer term that is well you and i talked about the fact that our clients are buying airlines they still are but also starting to buy facebook, apple in a way they haven't before this we saw some different stocks even though facebook and apple are favorites of our clients also amd hanging out in this 50%

range that just got out of it recently very interesting to me that people have stayed with their plan as people talk about quite a bit. i think right now, it is a difficult time to do so. i give people credit because it is difficult to figure out why you continue to go up with so many risks on the table. >> that is good news if the average investors is hanging in there. maybe people who have been inundated will wait to see at this point the market rally has mostly been

feeding off the precaution and surrender to the upward trend. part of why this has been in the auto pilot mode seeing half of the decline and just buying. with the really beatup lottery ticket plays with airlines or cruise lines or retailers out there. it is important to reemphasis the market and the injustice the stock market went up when a lot of messi stuff was happening. i don't think you should start

from the position of saying this is something the market ought to react to it just hasn't historically been the case when things seem to be vulnerable and in flux >> in terms of the bigger players, hedge funds took a lot of the blame when things went down rapidly with the pandemic what do you see in the average moves. in the last couple of weeks, i think you'll see the systematic. the trading and the signals trying to lyft exposure to the market seeing a lot of the wall street trying to quantify it and the

net positioning. it was low and stayed low and now has ramped up a little bit there is a little bit of a chase happening in the que on the hedge fund side of things. the markets are wide open and giving support to what is happening in equities. i've been saying for months. if you believe the reopening would be relatively smooth on the virus side that ant be bullish too soon where the market would price in the scenario seems to make sense that's where we are. if you thought the bullish case was that e is fighting the market, that would be the case people are definitely trying to get involved or are involved

>> mike, jj, great to have you on the sorry to cut it short love to have you back on coming up, protests in america taking a toll on businesses already struggling from the pandemic. details tonhat after this short break. back in a moment when you take align,

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welcome back to "squawk box. fall out, uber, lyft and doordash suspending. companies haven't provided a full list of cities. in some areas, officials asked the companies to continue operating to serve essential workers with no other means of transportation you are starting to see impacts

on businesses large and small as a result of the unrest in the country. becky. >> okay. thanks when we come back, a rare public act of defiance by facebook employees over facebook's cion to allow president trump's comments to remain on the platform more after the break a slice. a piece. a portion. a chunk. with dollar-based trading you can spend what you want, even on just a slice of a share.

welcome back to "squawk box. some facebook employees staging a virtual walkout and speaking

out about their disagreement with mark zuckerberg's decision to allow recent posts by president trump to remain on the platform joining us right now to talk about the rare public act of defiance by facebook employees, ed lee a southbound contributor alex cantrowitz is joining us. former buzz feed senior tech reporter good morning to both of you. you also, i should say, is the author of always day one how tech titans plan to stay on top forever and, alex, great book let me start with you, alex. you're on the other coast. this was a remarkable thing to see facebook employees, unlike google employees, unlike so many other employees in the valley have not stepped out in this way before >> that's right. there's a feedback culture inside facebook where everybody there feels empowered to go up and speak to mark zuckerberg themselves they feel heard by leadership.

in the past when there's been issues inside facebook it's largely been kept in house because the issues haven't risen to the occasion where they've felt the need to speak publicly. the fact that you see all of these facebook employees going out and facing their voices publicly, largely on twitter, this means this is a big deal inside of facebook and the company employees are taking it seriously. >> ed, do you think this walkout and some of the public pressure, i saw steve case, by the way, on twitter, supporting talk space which was an advertiser on facebook, is pulling its advertising on this, is going to put enough pressure on mark zuckerberg to change his mind? >> i think mark zuckerberg takes the employee response very, very seriously. it's -- as alex pointed out, it is a company culture of a lot of sort of feedback and open expression the entire platform is designed around free expression as mark keeps talking about. he does take it very seriously

the other side of it, too, is that a lot of the employees, they feel they love where they work they know that they work at a pretty important place but they also get compensated pretty well, too. inasmuch as there's a lot of activity inside facebook, it is unprecedented, they look at the stock price every day. a lot of these guys get paid stock compensation that's a big part of their stock kpen take home pay from that point of thing there is a push/pull they want the company to do well, be healthy, make money because that's how they make money. there is not just at facebook, all through silicon valley there is this push/pull between the ideology and the politics around how their companies operate as well as the money. >> alex, let me ask you about the politics of this actually. when you think about the executive order that's on the table, 230 now in play with the fcc. it seems to me the republicans, democrats, they may be bipartisan in this but they are

coming at this from completely different places, which is to say the democrats effectively want facebook to censor things or think that facebook would censor more things republicans think that by taking the liability piece off of it it would make them censor less things what do you think? >> yeah. exactly. this is all about politics each side is finding its own way to pressure the companies. democrats are saying put more warning labels, fact check the president. the president saying if you do that we're going torevoke section 230 which would be a nuclear move, or at least amend section 230. that would not allow the social media companies to operate when you see them happening, it's a political move. it's something to get inside the head of zuckerberg and the other social media experts if you go afoul, we'll try to bring the government in to change the way you operate

is that going to happen? i would say likely not let's say trump destroys facebook and twitter how he's going to communicate with the public? that's his biggest tool. it's a lot of posturing and politics i don't expect anything to change. >> the one cohort that could change this whole conversation is advertisers if advertisers were to put pressure on the company en masse, you'd imagine there would have to be some changes. the question is whether you think advertisers will and whether the advertisers even can given that especially during this pandemic there are not so many places that they can go that are effective so facebook has a lot of leverage and power in this moment. >> so that's the big pressure point, right not just facebook but also twitter, the other social media platforms. as you point out though, the way that advertisers tend to work, the way that media buyers tend to work, they want to spend as much money in as few places as

possible they don't want to go to a few thousand different outlets facebook has worked well for marketers. it's gotten even better in terms of what they call attribution. for every dollar how much money have i made in sales facebook has done a pretty good job of proving to loss of advertisers. for everything you made 150 or whatever it might have been in terms of return. fine, if advertisers are going to take a political stand and not spend on facebook, where are they going to spend? facebook with google takes up 60% of the online ad market. that's only growing especially in facebook because of this attribution modeling >> ed and alex, want to thank you guys want to thank both of you. we have an advertising break ourselves. wanted to say thank you to both of you for the conversation, alex and ed. appreciate it. joe? thanks, andrew coming up, senator rick scott joins us next to talk about the two crises facing america, the pandemic and the civil unrest

and then later at&t ceo randall stephenson will join us to talk about economic iquitnealy. also finding solutions "squawk box" will be right back. see, incident resolved. how did you... gotta enjoy the small wins. you keep being you, derek. keep being you.

we hope you find these digital solutions helpful to bank from almost anywhere. deposit a check with your phone or tablet. check balances, pay bills, and more. send money to people you know and trust with zelle. explore all you can do with our digital tools from almost anywhere. pnc bank. protests and violent riots rocking cities for a seventh straight night president trump says that he is ready to deploy the military if governors don't stop the violence senator rick scott will join us

with his reaction. markets ignoring the unrest. we'll speak with mohamed el erian about the disconnect between wall street and main street ceo response the top social issues facing corporate america and the companies working to do the same thing. tom friedman will be our guest. the second hour of "squawk box" begins right now. good morning and welcome back to "squawk box" right here on cnbc. i'm andrew ross sorkin along with becky quick and joe kernen. take a look at u.s. equity futures this tuesday morning we have green arrows across the board. show them to you as we speak dow jones looks like it would open up 175 points higher.

s&p 500 up 17 points nasdaq 55 points higher. we have a big show for you this morning, including senator rick scott who will be speaking with us in just a minute. we'll talk to him as well as so many others. mohamed el erian of allianz. the ceo of sanofi. jeffrey canada will spend some time with us discussing these recent days and bob carter, toyota ceo and randall stephenson take a look at times square this morning. this is right outside the window where joe is you can see the hard rock right beyond where the nasdaq studio is boarded up on this tuesday morning. and very few people in the streets, joe >> very few, you're right, andrew and kind of weird. i did notice, there's normally

about 10 police cars outside and there's zero today there was one earlier. now none so i'm not -- i don't want to draw any conclusions from that, that they're needed somewhere. i don't know why i don't know why, but they're just -- >> could be that they've been working long hours in overtime. >> maybe that's it our top story -- but no one here our top story once again, cities torn apart overnight it's daytime peaceful protests turned into nighttime violence riots and looting gripping cities from washington, d.c., to los angeles. new york city imposing its first curfew in 70 years fifth avenue wakes up to blocks of broken glass and stolen merchandise. a among the familiar stores that were broken into and looted, macy's, the flagship store, aldo, nike, nintendo and microsoft. tonight in new york the curfew will begin earlier during daylight hours start tonight at 8 p.m andrew

>> a lot more on "squawk box" this morning right after this short break. we've got alley aianz chief ecoi advisor mohamed el erian before we head to the break, i want to check in on the markets. as i mentioned earlier, we have green arrows across the board. i know there's a lot of folks waking up this morning despite the unrest in the united states, people looking forward and the investor community still has a lot of optimism about where we'll be, at least 12 months from nowis guy a promotion. dow jones 17 poin66 points highr you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding

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while states continue with phases of reopening, president trump says he's ready to deploy the military as protests and unrest continue across the country. >> i am your president of law and order and an ally of all peaceful protestors. a number of state and local governments have failed to take necessary action to safeguard their residents. >> senator rick scott joins us now. senator scott, thank you i mean, the serious question is how's it going in florida? how's the reopening going?

i can't help but think it is a little bit ironic that reopening seems to be correlated at this point with a lot of people going out to demonstrate and protest, and these are very, very strange times that we're in right now, senator. convergence of, well, two crises obviously. what are your thoughts >> it's a tough time i mean, your heart goes out to the george floyd's family. i was governor for eight years just hoping this never happens and i'm glad the president's directed the fbi, the department of justice to investigate and we've got to make sure justice is served. people have a right to protest, but you cannot do it against the police, you can't do it against your community, be can't be looting. that's criminal. so i think we all respect the right of people to protest every mayor, every governor has to step up i've been talking to law enforcement all across the state

of florida and they're very focused on keeping their communities safe, but i'm -- i am disappointed that people are doing this violently we can all -- you know, everybody can be very frustrated with what happened in minneapolis, i think everybody is, but you can't be doing this. you can't be taking violence you just can't do it i'm glad the president is taking this seriously i hope every mayor and governor does you hear about the looting in new york that cannot be allowed we've got to stop this. >> the evidence is starting to come in on some of the states that opened before other states. you must be monitoring that closely to try to help governor desantis with florida and just, you know, giving advice to all your colleagues. what are you seeing in places like georgia or some of the other states that have maybe moved more quickly than a lot of people thought was prudent

>> you know, what it comes down to, i think every family has figured out just like my family has, we've figured out, what can you do to get back to normal life but do it in a safe manner? you're seeing that across the country. businesses are figuring out how to be innovating they want to get their employees back, customers back and get reopened i think you're seeing that i mean, i'm a business guy it would be a frustrating time to be in business, a time that you know if you're the most innovative, you're going to do well you're seeing that across the country. i think we have work to do to get the covid-19 tests out it's clearly acceptable to everybody. i'm glad that we have so much work going on in the vaccine i'm hopeful. i think there's a lot of work to do but i do believe florida is headed in the right direction. i can see it every week as i get home from being up here in d.c., there's more people out doing things restaurants. people are excited to get back to work. >> the pace at which we're

reopening makes you think we don't need more stimulus or we still might need one more package? do you think what we've done is sufficient at this point >> well, i think what we have to do is we have to monitor think about it, we spent, our commitment to spend has not been spent yet. $3 trillion. we're going to end with 25, $26 trillion worth of debt some day that's going to have to get paid back, whether we pay it back or our kids and grandkids pay it back. we have to make sure this money is spent well. i want to monitor what we're doing to make sure, one, if there's abuse of existing money, let's stop that. if we need to do more to help those that have lost their jobs, help the small businesses, i want to do that. we have to get liability protection for first responders and our small businesses because they're going to be concerned. the businesses, i've talked to a lot of them. they have a lot of concern about

the reopening so i think we've got to focus on this what i'm not going to do is have taxpayers bail out california, new york they want to run up debt, get behind in their pension plans and then they expect us to bail them out that's not going to happen. >> becky >> hey, governor scott, those are pretty strong words. i know that illinois has stepped up and one of the senators, the state senators there, maybe the president of the senate there tried to pull a ridiculous move, but i don't think a lot of the resources that states like new york and new jersey right now are asking for are to bail out their pension problems, which no question that's an issue it's been a long standing problem. it's a huge problem, but you are looking at states that have been massively shut down because they are the hot zones. these are the places where all of these have been hit they've been ordered to shut down and as a result businesses are not open there is not tax revenue coming in the economies have been hit incredibly hard.

it sounds like you're saying, forget it, no more. >> becky, here's what we've done already. put things into perspective. the states only collect their own revenues to a little over $1 trillion we've given them access to over $1 trillion. they get 1 trillion in a year. we've given them access to $1 trillion $150 billion 100% we've given them $50 billion for medicaid we've given them $30 billion for the school costs their school costs are probably down $270 billion to federal agencies and $500 billion in loans. if somebody wants to come back and tell me that they need to make sure those that don't have a job or help their small businesses, i'm completely open to t. by the way, what are they doing to solve their own problems are they cutting their costs now to watch out what businesses are doing? i don't see it they're not looking at their budgets and being tough on them

to see how they can save money i've not been seeing that. we can all -- and the money -- >> i have. >> if we give them -- you just can't believe what they're asking for we've given them over $1 trillion now what else do we have to do >> governor, when hurricanes hit florida, i've never seen a response where people from blue states say, forget it, we are not sending help for an emergency that hit them through no fault of their own. >> becky, that's a good example. i had four hurricanes as a governor the federal government didn't cover all of my costs. they didn't cover 100% like we're doing with coronavirus we're covering all of their costs. that doesn't happen with hurricanes on top of that, never did they say, you might have -- >> you're not covering all of their costs. >> we absolutely are we are covering all of their costs for coronavirus. >> you are not covering all the costs. for coronavirus and coronavirus only but there is an economic

impact that comes with that that is not related -- that is not covered by what's happened here and it's hard to say that that's not related, governor. >> becky, we've given $50 billion for medicaid that was about 1/3 of my costs when i was governor. and medicaid costs are down. we gave them $30 billion for schools. schools are down we've given them 270 bld $270 bi agencies. >> in other words, you are saying they're done. you've had enough? >> if somebody wants to explain to me how we have not helped those states, i'm all in but when they want to come and say in contrast with a hurricane no one covers, no one covers lost revenue i had lost revenue when i was a governor. >> you have insurance companies that step in and help those businesses because insurance contracts are written to make sure if a business is interru interrupted they get protection.

that has not been the case here. insurance doesn't cover pandemic the losses here are phenomenal i'm not saying every bill needs to get covered but i also don't think it's fair to say that you have covered the losses directly related to covid-19. when that bill was written it said that you could pay for the police officers who were doing time simply for coronavirus things it could not pay for any of the police officers who were being paid beyond that for the first responders being paid beyond that, it would not pay for the teachers, for any of the other things that happened i think, senator scott', there is a realistic look to say there are small businesses that aren't going to be coming back. it's not for a lack of effort with ppe and all of the other programs trying to implement a program like that is what you're seeing spill out. >> first off on the ppe, we have added more money all that money has been taken as you know >> it's held up right now. >> $175 billion.

so we've spent 3 -- committed $3 trillion let's put that in perspective. our economy was over $20 trillion before coronavirus. we've committed $3 trillion. at 25 trillion, $26 trillion when do we have a problem? when do we have hyper inflation of which we've caused even bigger problems? we're going to have a 3 to $4 trillion deficit this year and if you look at these states, what are they doing to watch their money? you look at -- they haven't cut their budgets. new york increased their budgets. illinois didn't cut their budgets. >> that's what you do in economic hardship times, you yes, you do, you step up your budget in times of hardship particularly times of hardship that were not caused by any fault of your own. >> there is's so much -- becky,

there are so many ways you can spend your money wisely. i was able to pay down a debt in my years as governor did cuomo? cuomo's budget for 2.5 million people is double florida's do you think there's some things he could watch for and maybe save some money? i don't hear any of it from him. it's just give us more money by the way, come in and give us a whole bunch of money on infrastructure in the c.a.r.e.s. act we gave him over $3 billion for a subway system already you look at the -- people -- you have to put in perspective -- it sounds really good that people want more money, but we have to do it in a fiscally responsible manner if you look at $3 trillion, they want another trillion dollars even though their entire collection in a year is a trillion dollars they want another trillion dollars on top of what we've

spent. who's going to pay for this? >> senator, i think we're -- >> that's not going to happen. >> we appreciate your perspective. we're out of time. i think we have some other things coming up in the latter part of this half hour we appreciate your time this morning. i think tough to be a governor right now, senator you know, i watch what happens in the senate. seems like a much better place to be when there's something happening. we appreciate your time this morning. thank you. >> have a good day >> thank you guys, bank of america is just out with an announcement. we have been looking to corporate america for their response to what's been happening with this pandemic and to recent events as well bank of america is investing $1 billion over the next four years as a commitment to try to support economic opportunity initiatives. they say this is going to be additional support to help local communities address the economic and racial inequality.

those programs will be focused on assisting people of color that have impacted underlying economic and social disparities that have existed have accelerated and intensified. it's created a true sense of urgency particularly in view of the racial injustices that we have seen where we work and live we all need to do more those are comments from brian moynihan, the chairman and ceo on this new commitment they're announcing, $1 billion additional. >> beck, thanks. coming up, the race for a vaccine. we're going too get an update from the ceo of sanofi on its efforts to beat the coronavirus. up next, investors once again seeing a muted reaction to the civil unrest we'll speak to mohamed el erian and the markets predicting a strong comebacfoamk r erica. "squawk box" coming right back the hoa has been very involved.

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a portion. a chunk. with dollar-based trading you can spend what you want, even on just a slice of a share.

just to be crystal clear, no, the stock market doesn't care about social justice. maybe you think it should. some in part but for the mostpart that's just not how things work you can say investors are myopic i'd say they're myopic because it tends to produce better results. that was jim cramer last night on "mad money. joining us right now for his thoughts on that and today's market moves, mohamed el erian, allianz chief economic advisor great to see you we've been talking about, i think it's something the public's been talking about, what oftentimes looks like a disconnect of course between the stock market and where we are in society given the unrest and

questions about the future i'd ask you just to comment on what jim said about the conscience of the market, whether it cares or not. i'd also throw a little bit of a twist on that which is, you know, we've had ray dalio on this program for years who has washed of the possibility of civil unrest in this country and what he has thought would be the economic ramifications of it >> that's right, andrew. thanks for having me on. look, the disconnect in the marketplace with the economy has been big and has gotten huge there were better reasons for it a few weeks ago, and that was the market had a win-win approach you win if you look through the short term and bet on the recovery and you win even if that doesn't happen because the fed will bail you out. what we've seen over the last few weeks and particularly the last seven days is that it is really the second win that drives the market. this notion that it doesn't

matter what happens to fundamentals, it doesn't matter what happens to corporate earnings, it doesn't matter what happens to economic growth because the fed will buy what i want to buy. that's the mind set of the market right now and that's why the risk on tone continues i think it's dangerous, not just because it gives the wrong message to society, but you are distorting market signals and the best thing we have in this economy, the reason why we continuously do well is because we have a market-based system in which the pricing plays a critical role. so there are longer term implications that we should be worried about. >> okay. but, mohamed, let's unpack that for a second there's two things going on here there's one which is a philosophical view we can agree or disagree about whether the fed should be stepping in and what the long term ramifications of the fed stepping in are. then there's investors out there who are saying, clearly the

market is speaking, whether it's right or wrong, saying the fed is there they're not debating whether the fed is there or not. they're saying while the fed is there, that the right decision is to be in this market. what do you say to that? is that right? is that wrong? >> so i tell people, as i said with you last week, i understand people who bet on moral hazard i understand people who bet on the fed back stop. i don't do it. i don't think that's a good way to invest. i'd rather invest on the basis of fundamentals, but i understand that. the question is really not to investors. the question is to the fed why has the federal reserve continuously conditioned markets to step in and repress any volatility isn't it time to stop doing that because you end up not only undermining the system itself, but you undermine the credibility of an institution that is critical to the

well-being of this and future generations. >> so the question though is can the fed bridge us, right that's really the question and really how long does that -- hopefully it's not a bridge to nowhere. can the fed bridge us through this period? because if powell were to come out today and say that it was changing its approach just as we're trying to recover here, just as we're trying to reopen, i imagine we'd have even bigger problems >> we would. we are now increasingly in a lose-lose-lose situation for central banks. you lose if you try to undo what you've been doing for the reason you've cited you lose if you try to do more, and that's what markets are pushing for. markets are pushing for negative interest rates markets are pushing for yield curve control. markets are pushing for stronger forward. why? they're fine valuations are high. access to capital markets is not

an issue for companies and yet markets are pressing for more and more and you also lose if you don't do anything because you have this massive disconnect. that's the consequence what do you do you focus on people. andrew, we have done a great job restoring market access. we have done a great job opening the markets for bond issuance but companies are laying off people and we haven't focused on people the main street program hasn't gotten off the ground yet. i think it's really important to change the mind set. realize that the support of markets and companies, as important as that is, is necessary but not sufficient you need one more thing, which is access to people. otherwise, the social elements will start infringing on the economic elements. i don't support looting. i don't support the violence i think it's awful i think it's awful i think the peaceful protesters have a point in saying, look, it's about opportunities

it's about inclusion and observation. unless we take that seriously, this economy is going to be so imbalanced it will be difficult to produce high economic growth. >> mohamed, let me ask you this. i have viewers right now writing in saying, you know, don't talk down the markets if the fed is there, you know, stocks are going to continue to go up. and this goes to the disconnect with fundamentals. if you just look at the fundamentals and try to extrapolate out what you think the fundamentals look like in 12 months now, do you feel a lot better about the world or not? >> look at the cbo they are saying it's going to take us ten years absent more policies to get to where we were it is a check mark recovery. it is not this v it is a very flat and long recovery look, let me go back the fed can help us through liquidity crisis it can help -- the fed can help market functioning and the fed can help to credit

the fed cannot help through bankruptcy and that's why the investors have to be careful if you are buying high yield companies because you have the fed backstop, they can go bankrupt the fed has bought j.ccpennjcpey >> i have a long memory, you have a long memory you remember your wedge -- your whole thesis through a lot of the bull market from 2010 all the way to 2019. it was the same argument you're making right now i don't know if you ever really switched to where the fed did successfully hand off the baton to the underlying economy. we got up to 3400 on the s&p to 2,000 based on what you thought was fed action causing a wedge between asset prices and where the economy really was why is your wedge going to be more relevant to the discussion this time? how do you know we don't catch up again

>> so we did hand off. we handed off to deregulation. we handed off, if you remember, to a better functioning economy. we created very long expansion and we created very low unemployment the problem, joe, is that the fed didn't exit at that point so we entered this crisis with even higher debt, a bloated balance sheet and now we need to do even more to counter. i've called it 2.0 but it's different. >> isn't that back -- that's back to the old normal isn't that a double negative >> it's different in the sense that it's going to be a flatter recovery >> okay. >> it's going to be a more unstable one joe, i have to stress. we have the policy tools to address this we have the policy tools and we can close the wedge by the economy validating asset prices. >> maybe it will happen again. that would be great. because i think it was finally resolved by us positively,

not -- you know, better for all of us if we want prosperity, et cetera maybe it can happen again, but it's not guaranteed, i guess, mohamed. depends on what we do from here on out. >> correct i stress we have the policy tools, joe >> great >> mohamed, thank you. great to see you as always when we return, the ceo of sanofi, paul hudson, will join us to talk about the drug maker's covid-19 response and the sale of its stake in regeneron. then pulitzer prize author thomas friedman will join us to talk about the civil unrest in the country. we'll be right back. right thing to do. we're also giving payment relief options to eligible members so they can take care of things like groceries before they worry about their insurance or credit card bills. right now is the time to take care of what matters most. like we've done together, so many times before.

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welcome back to "squawk box. earnings coming out for dick's sporting goods adjusted loss of 62 cents a share. analysts had been predicting a 57 cent loss revenue in comp sales missing due to the coronavirus outbreak. ecommerce sales more than double during the quarter dick's said that has carried into the current quarter a lot of people they can buy sporting goods and other things were doing it at places that were deemed essential, target, walmart, and i know the frustration of so many businesses. andrew, sanofi is responding to the covid-19 pandemic working on a vaccine against the virus while also making strides in the area of oncology. meg tirrell joins us with a special guest. meg? >> reporter: good morning, joe that special guest is sanofi ceo paul hudson. great to have you with us.

i want to start with the oncology research. you're holding a focus day on your oncology medicines. as the pandemic has swirled, a lot of the major news has gone under the radar. today you've gotten approval of your multiple myeloma drug and regeneron had success with lung cancer and immunotherapy how has this affected you? >> first of all, thank you it's great to join you all this morning. as we continue to make progress. it's essential that we make breakthroughs in oncology and nothing stops us we've kept our clinical trials going. we've made sure those in studies are getting the medicine we're starting to get momentum we've seen that with the recent use. >> reporter: and just tell us with the lung cancer drug with regeneron, having that amazing

result, the reduction in risk of death in the trial of 30%. as you approach the market with that, how will you position it versus keytruda from merck >> there's been great news across the board the most recent data even further data shared last knight shows us that we have a very competitive profile to keytruda. now we have positive results with the lung. we look forward to the competition. so we're excited it doesn't stop there. we go on into multiple myeloma you mentioned, just got approval in europe. we'll get some results share the study of the activa study. it will take us into a competitive profile. sanofi is a little bit back in oncology is what i would say with some new mechanisms around

the corner as well. >> we have to also ask you about your position in the race for a covid-19 vaccine you have two different projects ongoing. you said i believe second half of the year for potentially getting into human clinical trials we're hearing about major trials in the united states starting in july where are you on that time line to getting human studies >> yeah. we've said we're a little bit further behind we'll be looking at human studies towards the end of the year when all is said and done, all of the doses that all of the manufacturers and researchers can put together will be essential. we're the only company i think using recombinant variety that will produce success and large scale. it will come later right across the organization we've been working flat out, very purpose driven trying to make sure we've got vaccines for the world, not for any particular market. >> reporter: and one quick last

question for you you did just sell almost your entire stake in regeneron ending an ownership that you've had for many years what are you going to do with that $11 billion >> you know, we've got a wonderful relationship with them and the whole regeneron team we will continue that, not the least of which with dupixin. it was the right time for both companies. it was good for lan and the team and good for us for building out our pipeline we will share our data today in london and we have what we think will be best in class. we want to be the cutting edge of science we want to be doing things with patients that have never been done before to give them that sense of hope or indeed a longer life we'll use it wisely as you would expect, but we really want to bring tremendous benefit >> paul hudson, thank you for

joining us today becky? >> meg, thank you very much. nice to talk about treatments for other things besides coronavirus, too when we come back, peaceful protests by day, looting and unrest at night. we will speak with pulitzer prize winner tom friedman about finding a solution "squawk box" will be right back. so you can live with us. i'm good at my condo. well planned, well invested, well protected. voya. be confident to and through retirement. a lot goes through your mind. with fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations.

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welcome back to "squawk box" this morning take a look at u.s. equity futures. the dow looks like it will open up 160 points higher s&p up 16 points nasdaq up 43 points.

as we mentioned earlier this hour, bank of america announcing this morning $1 billion four year commitment to support economic activity fish tifs. the ceo brian moynihan, here's what he's saying, quote, underlying economic and social disparities that exist have accelerated and intensified. the events of the past week have created a new sense of urgency particularly in view of the racial injustices we have seen in the communities where we work and live we all need to do more we need to address some of these issues that are out there. they say that this work will build on economic mobility and work force development programs but one of their key areas of focus is going to be on health and trying to make sure that there is a commitment to help in those communities. when we come back, "new york times" columnist and pulitzer prize winner tom friedman.

toyota monthly sales and the state of the overall auto industry toyota north america's bob carter joins us. "squawk box" will be right back. , helps you fall asleep faster , and stay asleep longer great sleep comes naturally with sleep3. only from nature's bounty.

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now that's simple, easy, awesome. transfer your service in minutes, making moving with xfinity a breeze. visit xfinity.com/moving today. welcome back to "squawk box. tom friedman is "the new york times" foreign affairs columnist. he's also the author of "thank you for being late." and his latest column "how we

broke the world. tom, i read on twitter, oh, i've always wanted to live during the spanish flu, the great depression and the 1968 riots all at the same time here we are. what do we do? >> well, you know, becky, i think it's like you're asking direction and the policeman says, well, you wouldn't start from here, but as you said, here is where we are. i think the two things that have to happen immediately from my point of view is that the legitimate protesters, people who are outraged and deeply disturbed by the murder of mr. floyd in my hometown in minneapolis a few miles from where i grew up need to get off the streets right now. for the very simple reason that they're legitimate and understandable protests have been hijacked by violent elements who are using it to loot and to riot and they need to create a context where legitimate

protests can happen in parks, stadiums, where that cannot happen because by doing that, by creating a context where these rioters and looters can take over the streets and do the terrible damage to property that they're doing, they're creating a situation where it's delegitimizing the whole cause because i care about that cause, i think we have to find a way for the legitimate protesters to express these protests in a different way. at the same time, i believe senate republicans need to have a serious talk with the president of the united states because you do not use the secret service to plow away protestors who are legitimately on the streets in washington in order to hold a photo op at a church where you hold up a bible. you don't even open the bible. you don't go to that church to convene understanding between different people, you use the police to root out protesters or legitimately there on the streets to have a photo op

holding a bible in front of a church when we so need to be brought together as a country. "the new york times," maybe he might listen to senate republicans. that is not presidential behavior >> tom, because this is a business network, let's ask about corporate america's response to this where does this leave them what should we be looking to them for >> you know, becky, one of the great things about minneapolis is it's a town that pioneered corporate responsibility major companies with real contributions, top line companies like 3m and target, for instance, to help work with the community, they're big investors in programs in minneapolis like the north side achievement zone that works to build wrap around facilities for families in impoverished

neighborhoods. improve the schools. i saw what you just announced from brian moynihan. i think there are a lot of companies that will step up and want to step up and be part of the solution >> so, yeah, i think through this and i try and figure out where we're headed because i don't think things are going to get less antagonistic as we get closer to an election. i don't know how we come together or what makes that happen i know you said the senate republicans. i don't know that i would hold my breath. where are we going to find ways to bring this country back together, tom? >> becky, you know me, i'm an optimistic person. i got it from growing up in minnesota. i'll tell you, i have never been more worried about my country in my life.

you know, several times over the years at dangerous moments i've quoted in my column my friend leslie goldwasser from zimbabwe. moved here immigrated to america. she once said to me, you americans kick around your country like it's a football but be careful, it's not a football it's a fabrige egg you can drop it and break it my founding experience as a journalist, my first experience was spending nearly five years living in a civil war in beirut. i saw how a civilization can come apart i saw how thin is the veneer of a government i saw a car go 50 miles an hour backwards. i am worried we will not have the first fair and free election and we will not have the first normal transition in power

i'm so glad the market is pricing in a wonderful 2020, but i'm worried about the last quarter of 2020. and nothing is going to overcome that somewhere, this is the real role of the business community, becky, right now everyone is totally polarized. they're totally polarized. this is a time for business leaders to come together and actually urge the administration, urge democrats and republicans -- not urge, demand that they come together, work together in a way to both solve or address the underlying problem that triggered this whole outburst, systematic police brutality and at the same time demand that both sides step back from the brink, work together to calm down the country. this is not a football we live in this is a fabrige egg.

we can drop it and we can break it and if you're not affray of that, you are not paying attention. >> wow for an optimist, that is a tough message, tom i think i was feeling better before we started this conversation, but what bothers me the most is the idea that we can't have civil discourse, that we can't disagree with each other, that we can't have different points of view and still consider each other friends. i think that point in society and the breakdown of that and everyone being on edge understandably given how many horrible things we're confronting right now. i think that is what's left me reeling the most. >> well, you know, becky, we've been together in a lot of contexts where business people from left and right, you know, we see it come together. but, becky, there's no getting around the fact. there is plenty of blame for people on both sides of this, but when you have a president

whose whole re-election campaign is based on dividing the country and trying to win by 50.1% of the electoral college and he has the bully pulpit to do that, and when you have all of this amplified by social networks whose business model, whose business model is to encourage and reward enragement, it's just really hard for me to see where the sources of moderation will come from unless all the major business leaders, nonprofit leaders and moderates in both parties simply come together and demand that this happen. you know, becky, i was thinking about it the other day, it's very interesting i saw a study that said -- that covid-19 is spread by-most by people who are loud and obnoxious. it's interesting that online social networks reward people

who are loud and obnoxious we're caught between these two viruses right now and it's deeply disturbing. >> hey, tom, the one thing i will say is that i think any president or potential president is looking to win with the electoral college by 50.1% i think that's the way the nation has been set up with any of these issues. and i think both sides at this point have a problem with the social networks. i would say both democrats and republicans would argue that they're being twisted in one way, shape or form maybe that's the one bipartisanship issue that you have in washington right now they all hate social media >> well, you know, as you know, because we've talked about it, i've never been a fan of facebook or twitter. i use twitter as a broadcast mechanism, but the fact is that their business model is to engage you as long as possible and as ""the wall street

journal"" reported last week, facebook's whole formula is based on rewarding people who are loud and obnoxious frankly and spreading their virus farther and wider. and we're caught between these two viruses right now. i think that what people are also missing, becky, the trend of the coronavirus is going down right now in america, thank god. if you look at the big developing countries, india, brazil just to name two that you guys are reporting, it's actually going the other direction. there's a story this morning that there are outbreaks of ebola in nigeria now >> yeah, i saw hat >> this idea that we can just all go away i think is really dangerous. we just forget what has been america's role historically in moments like this, becky? historically we've been the convener of the solution globally, whatever the global problem was. we've been the source ofaid an comfort to people suffering most and we've been a source of

scientific truth, you know, the best thinking about how to get out of this crisis we're not playing that role now. i'm a huge believer. we are the world, okay when we don't lead, china's not going to lead. when we don't lead, nobody leads. that's what i see happening right now. so i see a lot of negative things coming together you know, i wish i could find the drugs that the market's on man, i would inhale them today and -- but i -- they're not in my drawer here >> tom, thanks for your time it's good to see you tom freedman when we come back, we'll be talking auto sales with toyota north america's bob carter. still ahead this morning, at&t ceo randall stephenson will join us to talk about the role of business leaders right now. "sawbo wl rhtacquk x"ilbeig bk.

good morning state of unrest. another night of sometimes civil, sometimes violent protests in america sparked by last week's death of george floyd in minneapolis all kicking off as law enforcement clashed with demonstrators in d.c the president threatened to deploy the military on to u.s. streets. then there was that photo op at a church just outside the white house. this hour we're going to try to focus on some solutions and what the business community can help bring to the table we're going to speak to at&t chairman and ceo randall stephenson about corporate america's responsibility in the current crisis and leaders making their voices heard when it's needed the most the final hour of "squawk box" begins right now.

good morning welcome to "squawk box." this is "squawk box," right? here on cnbc i'm joe kernen along with becky quick. and andrew ross sorkin u.s. equity futures at this hour indicated up about 140 points on the session so far nasdaq indicated up about 33 s&p indicated up 14. take a quick look at treasury yields treasury yields are about where they've been trading for most of the session. recent session is down a little bit under .7 of a percent. becky? >> all right, joe. thank you. we start this hour with the aftermath of the death of george floyd in nationwide protests including a scene taking place just outside the white house last night

eamon javers joins us with more on that front. eamon? >> reporter: yeah, becky this is an absolutely striking scene at the white house yesterday as you point out the president taking to the rose garden yesterday we're still amid this global pandemic reporters and aides wearing masks in the rose garden dealing with the pandemic fallout. the president talking about the violence and protests we've seen in the streets suggesting he wants to see the nation's governors get much tougher here's what he said. >> mayors and governors must establish an overwhelming law enforcement presence until the violence has been quelled. if a city or state refuses to take the actions that are necessary to defend the life and property of their residents, then i will deploy the united states military and quickly solve the problem for them. >> reporter: becky, even as the president was saying those words

in the rose garden, just a couple of hundred yards away on pennsylvania avenue in front of the white house, federal law enforcement was clearing lafayette square park and clearing pennsylvania avenue itself, peaceful protestors firing tear gas at those protesters, using billy clubs and plastic police shields to move the protesters out of the way so the president could take a walk across the street to go to st. john's church which is 2 1/2 blocks away. the images striking as the president held up a bible in front of the church signifying support for faith leaders and people of faith around the country at this time the president walking right past the graffiti with f the police and f trump scrawled across the monuments in lafayette park. that area cleared of protesters. they could still smell the tear gas hanging in the air as the president made that appearance

at st. john's search yesterday the president coming under some criticism for that by one of the episcopal bishops in d.c. saying they were given no warning the president was coming the president didn't come inside and the president didn't pray on his stop so some criticism there from faith leaders for that appearance by the president, becky, yesterday see what happens today i'm told inside the white house there's another virus task force meeting later this morning and the expectation is the white house is going to continue to focus on these protests throughout the day and into later this week. becky, back over to you. >> reporter: eamon, thank you very much. joe? >> thanks, beck. inequality has formed a back drop to the current nationwide crisis some organizations are seeking to tackle it by starting at the very early levels of education we're joined now by jeffrey canada, president of the harlem children's zone. great to be back on the program.

you've been on two or three times before here we are again trying to deal with the same issues little by little with the backdrop you're seeing, i know you've heard of some of bob johnson's comments yesterday, reparations and the like you've been doing it organically for years and years and years and i think bob expressed some frustration that it's just going too slow or it's just hard to see big strides being made we need to act big what are your comments what should we do? >> look, first of all, joe, thank you for having me on because i've spent my life trying to figure out what are the solutions for our most struggling urban communities, places where because of racism, poor schools, a sense of hopelessness and despair communities have given up and

when communities give up they often do self-destructive things so we have rebuilt the community in harlem and i think it's time for a massive community infrastructure investment in this country we know that given zip codes within the same community, you have different outcomes with kids income inequality is real. you can't do just one thing. i'm an educator. you know i believe schools have to deliver for children. this is more than just schools we've got to rebuild a health system, a mental health system we've got to help with housing and make sure that the parks and the playgrounds are safe places for kids and families to go. i spent my life at the harlem children's zone. we see a movement for people doing these cradle to career

strategies to rebuild communities, and i think we really need to now invest serious money in these kind of strategies >> hard work hard work and it's detail oriented and, as you say, it's cradle all the way to the work force probably it's not going to be simple, jeffrey. it's not going to be a one size fits all solution to all of these things kids, the school is the most important thing. then they go home from school. they go home, go to playgrounds, go so many different places and hopelessness, if you're surrounded by it, it's not going to matter if you've got good teachers and good schools. you don't think you're ever going to get out it's so intractable, jeffrey that's why everyone's so frustrated, i think. >> it takes time and it takes resources. i think you know some of the folks who helped us do this, ken langone who's on with you guys all the time

this is the business community those of us, not for profits coming in saying, look, we care about these places and we are prepared to spend the time joe, this is the difference. we're also prepared to hold ourselves accountable. you've got to deliver results and we don't need investments that end up not helping anybody or actually producing the kind of outcomes we care about for kids and we now know we can do that there are places around the country, stride which is doing that in multiple places. purpose filled communities there are groups of us who decided this is the way you deal with real poverty and income inequality you target neighborhoods and you do it comprehensively and you spend the time doing it but you hold yourself accountable at the same time. if we don't deliver, don't support us, don't give us the resources because it has to be as contractor says, you give us the resources and we'll improve

the outcomes for the young people. >> jeffrey, you've got great work in the mid section of harlem, but is this scaleable? is this scaleable? what would it take to do it everywhere just as a point of reference, bob johnson's proposal would be about $14 trillion and it would put ownership, asset ownership into every descendent of a slave would have $360,000 or some. that's 14 trillion i can imagine that you could do this for less than that but it won't be cheap and to get the people to do it. it would have to be part private, part public, taxes, philanthropy and everything else. >> you know what's so interesting, joe, we're doing it for about $3,000 a child per year and people used to think that was expensive it turns out that's one of the

best bargains that you can get in this country. we have over 950 kids in college. we've graduated more than 700 kids we are ending that cycle of poverty, but you're right. it does take real resources and it does take the kind of time. i believe that the same forces of capitalism at work where you have jobs and young people prepared for those jobs and the ability to live up to the expectations of your talent, that's what's going to work for the african-american community the same way it's worked for other communities. there's been disinvestment we're at the 99th anniversary of greenwood massacre, what happened in greenwood, oklahoma. we have to remember this has been a systematic strategy for decades that has to be undone. yes, there's frustration yes, there's anger

yes, there's evidence that we have been living in a set of disproportionate disproportionately circumstances. i'm not desparing. we need to make sure we scale those efforts around the country. >> hey, jeffrey, i agree with you 110% let me just ask you this though. tensions are so high and we are dealing with a dual crisis because we're also dealing with covid at this point. i have a very practical question for you in part because this covid question has disproportionately impacted people in your community, which is we've got to get schools back up and running we have to get schools back up and running because we need to get america back up and running. there's a big debate amongst

teachers, teachers unions about how to do that, how to do it safely who should come back who shouldn't come back. from a practical perspective in terms of getting this country back on its feet and getting people to work, which is so important in all communities, frankly, what are you hearing? what are you thinking? what do you know on that front >> you've raised a question that i think folks have not been paying much attention to america can't go back to work unless our schools are open because parents need those schools to have their kids in a safe place during the day while they're working. i've been disappointed that we are not leading in the same kind of intellectual capacity now, look, we've learned a lot about how to keep people alive we're not intubating people as much as we used to be because we found out even though we thought that was helping, it's actually making things worse. we need right now to be taking the same kind of scientific ideology to figure out how we

open our schools who do we bring back first how do we do social distancing how do we protect our most vulnerable children and our most vulnerable teachers? we need to be practicing those strategies this summer so that by the time the fall comes we can actually open up these schools with a real sense of safety everybody's scared we're allowing people to make it up all over everywhere where we should be studying what they're doing in south korea, what they're doing in japan, what they're doing in places that are opening up schools and doing so safely and how we begin to make sure we can test and segregate kids and families when they become infected so we don't have to close down whole schools again. this is very serious business and we're distracted by all of the noise and we're not spending time figuring this out our schools must open but they have to do it safely and we've got to protect our teachers and

our students and then you know what, i think there are ways to do it if we begin to plan on doing that right now for example, why not think about using churches and other institutions that aren't filled during the day so that we can reduce the number of kids in our schools so that we can protect our kids from being so clustered together that the virus can spread from child to child to child? guess what, that's going to take resources. this is a time when the states are thinking about cutting budgets and we cannot have the education budgets cut right now while we're trying to figure out how to reopen these schools and get our economy started again. we need to bring the best and brightest together to start really putting science to work and figuring out how we answer this question because it must be answered. >> jeffrey, do you have hope that we're going to have school in the fall? is there a model out there are there experts out there that you've talked to that have given you confidence and comfort that

there is a way, especially in new york which has been so hard hit, where there's less confidence in truth about this give us some confidence perhaps or not. >> we've got to tackle some tough problems, right? a lot of our kids take public transportation back and forth to schools. when they get older, it's easier in elementary school parents are walking back and forth to elementary schools it's the same problem that our work force is going to face and we've got to start thinking about things differently we're going to have to try to figure out what's the science tell us that we can use to reopen the schools and do i have confidence that we can do it well yes, i do. do i think that we are going to face potentially a second wave in the fall and we've got to think about when it happens, how do we not close down everything again and we're going to have to do that unless we can figure out

how to isolate groups of kids so that they're not in contact with other groups in these buildings. if a kid gets sick or infected we won't have to close down the whole school this is going to be complicated. it is. but we've got to figure out. let me tell you what i'm worried about. no one's thinking about it in a real scientific way right now as if it's not a key to reopening our economy. so we need smart people again to plan this in our urban cities. it's going to be much more complicated but i do believe it can be done if we're thinking about it and planning it and using the summer to actually practice how you bring folks in and how you keep them safe and how you teach our kids how to socially distance. there are examples out there we can follow >> jeffrey, bring you back proof of concept we've just got to get it scaleable. that does give me hope and you've proved it can be done thank you. we appreciate you coming on

today. >> thanks a lot for having me. >> you're welcome. andrew we've got a lot more coming up on "squawk box" this morning. going to talk much more about the protests flaring up around the country following the death of george employed and tfloyd ae business can play. at&t chairman and ceo randall stephenson is going to join us next, we'll talk about getting the auto industry back up to speed following the pandemic the top toyota executive, it's an interview you don't want to miss "squawk" returns right after this you doing okay?

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welcome back, everybody. we are getting auto details. phil lebeau joins us. >> reporter: we just got this headline out of china. let me bring this to you real quick. may sales in china up 11.7%. why does that matter it would be the first time in two years that we have seen back-to-back increases, monthly sales increases in china what about here in the united states there won't be an increase in sales for may but it was better than what we saw in april because you had more dealerships that were opening. make no mistake, a number of these dealerships were not open in the first half of the month you had the plants what we're looking at in the auto sales are dealers buying from the automakers. the plants were shut down the first half of the year the sales pace, estimated 11.8 million vehicles, that's compared to edmunds. compare that to april when the sales was 8.6 million vehicles add in terms of whether or not we'll get close to the estimate

of 15.5 million, no way. we won't be close to that in terms of what the industry is expecting for the year it is an improvement for april in terms of the plants, they were in limited operations in may. where they're really concentrating right now is with full size pickup trucks. the market there has been strong in part because of the incentive offers that are out there. that's where they need the greatest amount of production and that's what you're seeing. in fact, u.s. automakers are pushing that increased production when you take a look at the big three, you have ford restarting all of the plants down in mexico general motors is increasing its production this week going from two shifts to three shifts and really concentrating on full size pickup trucks also, let's take a look at shares of toyota the numbers for toyota in the month of may, a decline of 25.7%. while that's not great, it is better than expected we are seeing some improvement, guys it's going to take some time though before this industry gets back to a point where they say

we have a pretty good grasp in terms of what the sales pace is going to be. >> okay. phil, thank you for that stick around want to bring in a top voice in the auto industry right now. bob carter, executive vice president of sales for toyota north america. bob, help us try to understand where you think we are i know these numbers are better than to some degree we expected, but how do you even begin to extrapolate out what the rest of the year is going to look like >> well, good morning. thank you for the invitation if i may, let me just comment on your earlier guest we operate this company as a respect for all people, and the events that have taken place over the last 48 hours are just purely unacceptable. but to your point, the auto industry is recovering faster and i believe when we see the sales numbers coming out later today, it's going to be beyond expectations we closed the month last night at midnight and we are

forecasting an industry -- an annualized industry for the one month of may at 12 million as mr. lebeau mentioned a little earlier, that's a vast improvement of the 8.6 million analyzed rate that we saw during the month of april >> and so as you look out though and you look out at dealerships, whether they're going to be buying vehicles, how fast they will do that, how slow they're going to do that, what kind of incentives you're going to have to offer, what does that look like to you? >> well, i think we have to look at the industry. we sold 160,000 units last month. you have to peel those units back retail consumers are back at about 86% of what we would call a normal rate. what hasn't yet returned to the auto industry is the fleet, commercial buyer, particularly

rental car those sales continue to be suppressed at around 20% so as mentioned a little bit earlier by phil, what we're seeing is that retail consumers coming out and they're looking for cars and trucks. so the issue with industry with manufacturing being close for nearly eight months, inventories in the key segments of the industry are becoming an issue >> it's not a political question car dealerships. damaged cars, stolen cars, even things over the past couple of days i was curious whether companies have been talking to dealerships about that >> we have 1500 dealers across the united states. our reports are unfortunately seven of them have been affected

the rioting taking place in different cities part of the work we run our business today it's unacceptable. any form of racism so we're counseling our dealers to first be safe themselves. protect their customers. protect our consumers. we'll get through this and there's better days ahead. >> bob, let me finally ask you this you know, when it comes to launching new models amidst all of this, between the pandemic, between the unrest in this country, how are you guys thinking about that? i'll tell you as a -- i'm in the market so i was looking -- i know you're going to be launching a new sienna joe will give me hell for it you know, everybody needs a car. but are you thinking about delaying any of these types of

introductions given this moment? >> no. to the contrary. we're going ahead with all of our plans. last month about two weeks ago we did two virtual launches of two new vehicles we're reintroducing the venza and as you indicated an all new fourth generation sienna which will be 100% hybrid drive for both models and both models will be available for all wheel drive. so we really think it's suited to today's market. a little bit later on this mornlt we a month we're going to be introducing a new lexus. we believe we're i continuing to invest in this business. we believe in this business. we believe in the u.s. economy while our way that we're basing the market and launching new vehicles is entirely different, we still are conducting business >> okay. bob, thank you my wife is sold on the sienna i'm still trying to get my head around the mini van thing.

>> andrew, ask the question. it's not the hybrid. does it have a vacuum cleaner, bob? >> it does it does. that's the most exciting part about it. >> why are you burying the lead. >> joe, not only does it have a vacuum cleaner, it has a refrigerator call me, i know a guy. >> can you put a six-pack of grape soda in the refrigerator, bob? >> it will come standard for your vehicle, joe. >> all right now -- now you're talking. now you're talking my language >> thank you >> are you seriously, sorkin the mini van, seriously? >> i'm -- the sorkin family -- we have three kids we're seriously considering it i'm just saying. >> all right >> it's the perfect vehicle for you. >> excellent >> thanks, bob appreciate it. >> help the economy, andrew. go get one of those. sound nice fourth generation, dude. fourth generation. becky, i see, is all of a sudden

writing stuff down, taking notes, huh >> i'm already set thank you. got my mini van. >> you've already got one? >> yeah, i do. i do when we come back, we're going to speak with at&t chairman and ceo randall stephenson about leadership from the business community in these ays. right now though as we head to a break, check out shares of dick's sporting goods rising, stock up 1.2%. you are watching "squawk box" on cnbc

coming up, at&t chairman randall stephenson joins us on some of the steps america's biggest companies can take right now to help the country weather e rrt crisis stay tuned, "squawk box" coming right back

coming up, at&t ceo randall stephenson on this week's protests and what the leadership and the current crisis in america. plus, what to watch ahead of and after the opening bell on wall street the dow posting a nice gain on

the first day of june. the futures are up again this morning. programming note, don't miss former microsoft ceo steve ayunllr. st ted, "squawk box" will be right back

welcome back, everybody. at&t has temporarily closed its dallas headquarters after the building there was damaged in protests over the weekend. our next guest is at&t's chairman and ceo randall stephenson we want to focus not just on the current crisis in america but also on the search for solutions. stevenson no stranger to encouraging difficult conversations in corporate america. in 2016 audio from his comments to employees on black lives matter got released and it got a lot of attention >> tolerance is for cowards. being tolerant -- being tolerant

requires nothing from you but to be quiet and not make waves holding tightly to your views and judgments without being challenged do not tolerate. work hard. move into uncomfortable territory and understand each other. >> randall stephenson joins us right now. it's really good to see you. you are somebody who's been a leader in corporate america, from the head of business roundtable to the head of scouts of america you would have always believed in kind of speaking out and taking tough positions on this we appreciate your time today. i'm just wondering what you're thinking in the aftermath of everything we've seen in recent weeks. >> oh, i'm thinking here we go again. that was 2016 when we made that talk and it's interesting to reflect on what had just transpired at that moment. there had been an unarmed blackman shot by law enforcement in ferguson, missouri.

an individual had just been shot in minneapolis baton rouge. then there was kind of culminated the block from our headquarters there in dallas, five police officers were killed kind of as a result and a lead-in from all of these activities that were going on. and, you know, a lot of things were done. i know the dallas police law enforcement and so forth made some protocol and procedural changes that were intended to address this, but here we are four years later and it feels like we're going through an instant replay i just wonder, you know, why are we so slow to learn, you know, what is going to be required to begin to address this situation? and that comment about tolerance. every time we speak about race relations in this country we tend to migrate to this idea of tolerance. we're so far beyond tolerance. this is about justice. this is about doing justice and making sure that we're putting in place procedures.

and even begin to talk about are there things we need to do in law making to begin to address what seem to be constant, recurring injustices in the black community as it relates to the interaction of law enforcement. to be honest with you, i'm a little disheartened, maybe even broken hearted about what we're seeing transpire here. >> randall, you made some comments to me over the weekend about how you think business leaders should have much to say about this, that there's a real reason for that, that business leaders should be standing up and saying something we've had a lot of companies that have put out statements it's not always easy for a ceo with everything they're already dealing with, with the pandemic, with problems in the economy, concerns about their work force to get out and stand in front and say something. why do you think it's so important that business leaders speak out? >> you heard tom friedman, i was listening to him talk about this

legitimate cause for protest is being hijacked by a violent element of protest he's right what we don't appreciate and what we don't talk about enough is if you go talk to the african-american employees in our companies, if you ask them, be honest with me, how do you feel about this, you're going to be surprised what you hear they relate to this injustice. they relate to this situation of law enforcement and how black people are treated differently becky, after that talk that i gave in 2016 a very prominent ceo of a company, this individual if i were to say his name, everybody that is in your viewer ship would know him i'll never forget him coming up to me with his wife talking about his instructions to his teenage children if they're driving home at night into a very prestigious neighborhood in new york they're black. he tells them, if it's after dark, roll up your windows, turn down the music and if you happen to get stopped by police, get

out of the car and immediately put your hands on the roof this is a very prominent african-american businessman, well to do i'm thinking to myself when he told me that, i never gave that instruction to my kids i never told my kids to behave that way, to respond that way to law enforcement. in fact, i always took great comfort in law enforcement's being around if my children were out at night but i'm just -- the only point being, the african-american community is viewing this consistently and it's a pervasive view so all of us ceos have large african-american employee bodies that we owe it to them to make sure that we're speaking to this, that we're asking our policy makers to step up, that we're asking our political leaders to step up and recognize and just say it. we've got a problem. we have a big problem and it needs to be dealt with >> how do companies take hard core responses, aside from

pushing their legislators, aside from pushing their elected leaders, aside from making their voices known, how do you as a company and a corporate leader try and make changes within your own -- within your own realm, within your own company? are there actual programs that you're working on that you've had success with or maybe programs you've tried and you haven't had success with >> no. starting in 2016 we initiated a number of initiatives and programs that had a significant impact within at&t i would actually suggest to you that companies like at&t and others, you know, we're very adept at effecting change in washington if it's a priority, and i think we are now looking at an area that is a priority for business look, business, let's just be honest we have a moral imperative to address this, but business doesn't work, free markets don't work in an environment where a large class of our people are

proceeding and experiencing injustice and social unrest is not exactly conducive to a functioning free market economy. so we have an imperative to begin to use our muscle and our influence to begin to effect policy change to address this, and i think we as business leaders are going to need to put our shoulder into this and begin to try to move the ball. >> randall, it's like 2020 and, you know, we've -- this has been, you know, my entire life i've been watching things like this we had ken frazier on yesterday, ceo of merck said very similar things. >> right. >> you probably saw him. i've seen senator tim scott on tv said he's been pulled over, harassed, seven, eight, nine times in recent years for what he said was driving while black. so -- and i understand -- you know, police, they've got a really tough job, but they also have -- they're wearing a gun,

they have absolute power a lot of times i understand there's a problem there. what about society in general? if you -- you know, we had this woman in central park that recently just stereo typed, assumed it was a black male so she was -- i mean, we've got to change society, not just police but all of our perceptions, i think, or many perceptions >> joe, look, i'm not a social scientist and i don't think we can begin to think about public policies that correct racism racism is what it is, but what we do and the way our system works is we enact laws to control the bad angels in our human nature, and i think it's time that we begin to ask those questions about what are the laws that need to be implemented to address this? i just give you a classic example. by the way, cory booker put out a piece that i thought was very thoughtful, very balanced, very rational one of the key proposals in it, and i will articulate it this way, there's a philosophy that

rudy giuliani made prominent about broken windows policing. you walk into a neighborhood and see a lot of broken windows, it sends a signal we are tolerant of crime the question i have, do we have policies within law enforcement that send a signal that we are tolerant of discrimination a classic example is racial profiling. if i were to use those kinds of policies within at&t i would rightly be terminated, fired, and probably sued but we allow, we actually have systems, we have procedures that allow for racial profiling and what does that say that says just like broken windows, we have a tolerance for racial discrimination in law enforcement. those kinds of policies need to be challenged. every mayor, every chief of police in the united states ought to answer to their constituency whether that is good and proper and best serving communities where they operate

>> randall, i just want to ask you how you think you can do this -- how a business leader does this? because ultimately, i hate to say this, but it is political and there are political ideology and believes on all sides of this and, frankly, i think it would be unfair for me not to say that, you know, if you're a company that's trying to eke out the greatest profit or just profit in general, there's a view that democrats are not necessarily going to help you on that maybe they will help you on racial issues in ways republicans won't. you know, should companies give to the republican governor's association which has been involved with gerrymandering along racial lines be for years? so there are real issues about how you even approach this because i know everybody wants to say it's apolitical, but it is political and the question is how do you actually break through that >> this is about justice,

andrew, and when you're dealing with issues of just basic core justice that every ceo, every leader in america needs to step up and ask, what is the right thing to do. every senator, congressman, president of the united states needs to ask what's the right thing to do. in the 1960s at&t was one of the first companies to come out and endorse the civil rights movement and you can imagine how that went over and the controversy that surrounded that can you imagine looking back now, somebody saying, i would not support the civil rights movement somebody had to step out and be first. i think this is another one of these examples where companies and ceos need to step out and say we need to work towards justice. that's what we're talking about here we're not talking about trying to fix discrimination or prejudice. we're talking about justice and how do we address and ensure that we have policy, we begin to put in place policies that provide justice for all of our citizens, not just a few we cannot have a significant portion of our demographic

feeling like they have no recourse to justice. >> hey, randall, these are big, big thoughts and heavy things to lift is this something that you have discussed with other members of the business roundtable? is this something you've discussed with other ceos? i mean, this is an incredible message, but as you pointed out yourself, this is a message that you made very vocal back in 2016 what kind of buy in have you gotten from others where do you think this fight heads next >> so in 2016 following that talk that i gave one of the requests from my employee body was please communicate with this with your peers. and i did. i spent a lot of time with my peers on this. and it had the right effect. people began talking about this

issue openly i have not had a significant number of these conversations with my peers yet on this matter i have been working from an internal standpoint. we have an employee body that's always my first priority because the employees, they -- they're concerned. they're dealing with this and they're grappling with this. our political leaders aren't offering a lot of solutions and ideas. even context around what's going on so we're working a lot internally right now to make sure employees know where we stand on this and formulating our plans for how we go forward. you should assume doug mack mill lon, that business roundtable is working this issue hard. i am fully in support of doug and what he is proposing here. more to come i hope on this. >> can we go back to the issue i know again this is internally the things that you've been able to kind of put into policies and programs into place internally i ask about this not because i don't think most of the biggest

companies aren't already doing things like this, but i don't think a lot of people know about some of the programs the big companies are doing. i think it sets a helpful example for smaller companies that haven't had time to kind of tackle some of these things to talk about programs that do work, programs that maybe you've tried that about programs that k and programs that you've tried that don't work. what things have you had success with internally at at&t? >> i will start with back in 2016, what we did was gave our employees at that time 300,000 employees a license to talk about this you need to talk about these issues of race you need to understand how your black colleague in the cubby next to you feels about these protests what i think people began to realize is how surprising it was, that the guy who is in the cubby next to you, other than his skin color, he reacts and acts like ou, but he's relatin to these protests. it's pervasive i give people license, talk

about these issues whether it's racial discrimination or based on religion or sexual orientation, have these conversations then provide forums for these conversations. then provide feedback mechanisms to the senior leadership of the company. most companies in the united states now have employee resource groups where people of similar color or sexual orientation can come together and do things that worked for both the business as well as the organizations, but empower those groups give them a voice inside your companies. we have a number of these initiatives within at&t that are proving to be effective. i don't know how you judge the effectiveness of these things. sometimes it's rather hard external externally it's hard ensure all voices are heard.

and propagating policies externally it's one thing to work internally, but are you walking the walk are you pushing externally to make changes that effect instances of injustice like we're talking about here >> randall, thank you for your time this morning, for your speaking out and pushing this forward along with your peers. we'd love to offer the opportunity to continue these conversations here as you move forward with this. appreciate your time we hope you'll come back very good to see you >> good talking to you guys. take care. >> thank you andrew tremendous candid and powerful conversation with randall. we had so many of these over the past 24 hours. randall, thank you for that along with ken yesterday and

mellody and so many others want to get over now to cnbc's headquarters, jim cramer joins us now there was a provocative comment with mohamed el-erian and the market and its conscious what do you think about what mohamed had to say about all of this. >> i love him. i can be -- i think he didn't want to take head on the concept that the market is a cruel mistress to business or something like that, but look, i just think that when i listen to your great program today, yesterday, i think no one wants to do the one thing that's tough, which says okay, look, it's going to take years it's going to take years to educate better, the schools. you have to take a mork barc be

attitude he asked me do you have a school near you i said yeah, a public school across the street. he said have you ever thought about giving them money? i said why it's a public school he said they have no books, they have no pens you sit there and think i would love do what randall wants to do, frontload everything, but it goes back to education i just find we're not -- that's the core that's why ginni rometty said we have to go into the schools and teach people how to be -- what artificial intelligence is how to do science. it's the schools, andrew i think the problem is it takes a long time. but we have to start >> jim, just help our viewers out there real quick who are investors trying to figure out how to make sense of this, clearly the market is moving and continues to move higher looking at some of this in the

back view mirror thinking 12 months things will be better >> people say now the cities are too dangerous. i don't want to go back. they're telling their bosses i'm staying at home. so we get a second leg with the zooms. is it racism that they want to stay home? no, the pictures are scary i haven't been to manhattan since march. they had a riot in front of my place, my bar, there was a protest, but it was scary. i don't know doesn't seem -- you live there i don't know >> i'm sorry to hear it. no no we're all concerned. we're all concerned. >> it's just scary >> we'll see you in a couple minutes. it is. it is. it's sad it's -- >> macy's, andrew. macy's >> herald square it's part of the complex >> we'll go right to paulson

joining us now to talk about what he sees he says he sees positive signals in the market. so much for sell in may, jim you put april and may together the best performance since 1987 for two months >> it won't be a straight line, that's for sure, but i think we probably have started a new bull market, more importantly a new economic expansion there's great concern. there's so much uncertainty, so much unknowns, whether it is the pandemic or the riots.

we have to wait for this to clear down, clear up i never found that to be the case though. i think what's interesting about the current situation to me is the unknowns, the uncertainties, and its oddity is what makes it common to almost every other crisis we've had in many ways. in the early 1980s, joe, we had 21% prime rates and a third world debt crisis, we had never seen that before completely odd we never had a dotcom boom or bust we didn't know what a dotcom was. commercial real estate risis, early '90s, never had one that serious before 2008 was odd everything about today being odd and uncertain and unknown and fear generating is exactly what's happening the start of every other bull market. i think more than anything else this one is common, if you will in its oddity.

to me, that's a positive sign rather than a negative >> how many ways can the market find away to keep most people bearish and skeptical as it moves higher and higher with as few people on board as possible. that's what it does. after watching it all these years, back to 1974, that's all i know that's all i know. usually, you know, a month, six months later, a year later, that's what you should have been looking at the hardest thing to do at any given time, if you want to do one thing, it's like, god, i know what's happening, i have a feel for this. everybody is talking about it. i'll do that you should have hit the sell instead of the buy that's the way it always is, right? >> i think so. i think that when there's great doubt, there's great uncertainty, when there's great fear, what that tells me is that risk assets are underowned and underpriced. the down side from there is less

because of that. sellers that are worried are already gone the upside is greater if things turn out better than expected. on the other end, when everyone feels good about the future and is calm, that tells me there's a lot of risk to the down side and not that much potential. i think they're still in a situation where this situation is a low risk investment situation. not that we won't have pullbacks, but i think it's more of a higher potential low-risk environment because of the doubt and fear that is there today >> we're hearing ten years before we get back to normal economics. so no wonder that people think why would youinvest at this point, jim i think a lot of times -- >> those same doubts were there in the past, some of them we might not get to >> the news business and the investing business, perhaps the two will never meet because the news is based on -- you don't

report on a house not burning. jim, thanks for coming on. >> thanks. >> more happening tomorrow we will be here, futures look solid. we'll see whether it holds throughout the session join us tomorrow, the three of us i see us "squawk on the street" is coming up next. >> good tuesday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber coming to you live from separate locations. it's another tragic overnight in america as cities are torn apart by riots and looters markets remain disconnected as futures point to a sixth day higher out of seven. dax up nearly 4% on hopes from merkel's stimulus. oil above 36, the highest since march. jim, you said not only that the market has no conscious, b