good morning stocks searching for some direction. we'll get you ready for today's key economic data. closely watched jobless claims the latest on the surge in cases in some states and how governors are responding and after the u.s. abruptly pulled out of talks to tax digital companies could mean prices rising for some cheese and champaign. it's thursday, june 18, 2020 "squawk box" begins right now.

good morning, everybody. welcome to "squawk box" on cnbc. i'm becky quick with joe kernen and andrew ross sorkin we'll start with the markets after the dow fell for the first time in four sessions. airlines, cruz and retailers all fell during yesterday sessions those have been the volatile stocks if you look at u.s. equity futures this morning, you'll see green arrows the dow indicated up by 28 points nasdaq up by 24 and s&p up 4.5 yesterday, the dow was down 170. during the course of the morning, we were watching the futures and up as much as 250 in the morning. we've been keeping an eye what is happening with the treadsry markets. right now, it looks like that 10-year yield is just at 0.71% andrew >> good morning. thank you. united states pulling out of

talks with europe to tax tech giants steven mnuchin saying international talks have hit an impasse and there wasn't even room for an interim deal it threatened retaliation if they move ahead with plans of their home a number of european companies were hoping to impose taxes above threshold which would have mainly hit u.s. tech firms france's finance minister calls this a provocation the u.s. threatened to retaliate with 100% tariffs on french champaign, cheese and hand bags. the uk, italy and spain have all developed their own digital tax approaches in case the international deal failed. >> why are you laughing, joe >> i don't want to be an ugly

american i'm just hesitant to step out there. you are in europe. let's see, what can we do? when is the last time we developed a really great new tech company we haven't developed any why don't we tax big tech companies that are all based in the united states where they've developed things we have sap, i think that's about it. it is typical. a great way to do it we are taxing everybody. every digital company of a certain size it is just that there aren't any. >> you realize your people are spending their time and money trying to advertise on those things you are right. if you intentionally set out to tax something that hurts somebody else and not you, they are going to retaliate

>> disruptors, are they any domestic companies does it matter >> no. we've had international companies on the list. >> there is one from israel. >> i'm just waiting now for somebody -- they made you do this >> anyway. this was another one >> look what you made me do. >> exactly >> i heard homer when i heard this story oh we almost had it they looked at the fine print. hertz is halting plans to sell $500 million of worthless stock. pending a review of the sec. >> i am surprised the sec stepped up on this

we heard from harvey pitt yesterday. i thought maybe the investment banks would bauk after he pointed out they were the ones that would get sued. >> your days are merging together i think it was tuesday or monday >> all one long week let's just stick to weeks. we might be able to keep our weeks straight but not our days. >> earlier this week, hertz said it got the okay from the bankruptcy court but warns that it faces substantial risk if they buy this that is worthless. investors take a risk. i was trying to think if it would ever make sense. shorting the equity, go long the debt could you ever be historic and

belong equity and short debt i don't think there is no because you are behind the line. hertz was going down to 40% on the debt >> now i stumped you. >> easier for the retail investor to buy the equity not the debt that explains who is getting stuck. >> in most cases when you let a company know those comments on the disclosure, they do not go

forward until those comments are resolved if those shares are listed meaning the continuing requirement and there are investors involved >> trading in hertz was halted and it was choppy when it reopened you can see it is back firmly in the penny stock range right now. >> ford announcing plans to launch the driver assist that will control the vehicle's speed and braking through radars and sensors and will only operate on premaped highways. additionally monitoring driver's

attentiveness. available to order later this year followed by other select vehicles for the 2021 model. the software won't be activated until the third quarter of next year that's weird maybe they need more time to make sure the other pieces are in place >> that's weird. tesla, i don't even believe it matters that it has been fully mapped it doesn't work in the roads where all the lines are in the ground these are specific roads they feel comfortable with. similar with the approach gm has done it, maybe even a little less in terms of the full mileage but nonetheless. if you are a music fan, spotify reaching a deal with reality star if you keep air fans in your ears all the time. kim kardashian west will be

hosting a podcast focused on criminal justice terms have not been disclosed but connected to her work with the innocence project that fights wrongful convictions. spotify has been trying to lock up a lot of exclusive deals. struck a deal of $100 million for joe rogan's podcast, which i believe is the most popular podcast in the country time to mention you should listen to our podcast which you can get on spotify behind the scenes news and access we are available everywhere. spotify, apple wherever your favorite podcast can be found >> what did rogan get? the number out there >> the number out there is 100 even on my own reporting, i think it is actually higher. i think it is actually in the

150 ish range. >> for a podcast >> he's doing a daily radio show >> i haven't decided what to do with our podcast money yet i don't have a place in florida. i haven't spent any of it. i guess because i haven't seen any of it. >> i haven't seen it either? >> you haven't either? >> i think they may based on your talent. >> both of you should have said you are getting paid really you haven't got yours. >> they pay us on the amount of talent and effort we put into it >> being able to come in and work for such a great company, i don't think i would accept it. >> shout it out, the person who deserves it is katie cramer, the person who produces it

she should be getting a check in the mail. >> we do this and they find stuff. >> katie makes the magic happen. >> hard to believe >> did you know the podcast wo a gracy? that is all katie. >> it did? >> i think. >> it was up for one made a finalists moving right along google is spending $175 million to supporting black-owned businesses and will end what it calls peer badge checks which some have said encourages racist behavior when we come back, governments are taking different approaches to the surge of the virus in some states futures down by about 35 for the

dow. it was just just five minutes ago. s&p down 2.5, nasdaq down 8.5 but that is up 24 points from where it was moments ago we'll be watching jobless data at 8:30 eastern. stay tuned for that. businesses are starting to bounce back.

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beijing. 21 new cases yesterday linked to wholesale food market. officials have canceled hundreds of flights in and out of beijing. renewed closures of businesses and schools. they have tested 356,000 people between saturday and yesterday and plan to expand the testing capacity in coming days. a little over an hour ago, the country's chief -- such a tough word for me. said the outbreak has been brought under control. >> epidemiologist. >> florida, arizona and texas are siege a rise oklahoma continuing to report a

surge days before a planned campaign rally for president trump in tulsa reporting 359 new cases in the last 24 hours. ranked third in expected spread on rt.live the tests positive has been ticking higher in the past week. michigan is not one of the states hitting new highs, the governor has decided to extend the state of many everything si set to expire on friday. joining us now is dr. scott gottlieb, former fda commissioner, cnbc contributor and serves on the boards of illumina and pfizer. good morning can i say this has gotten to be one of the most confusing points in all of this i know there is still a lot we don't know when you hear about the different extremes of reaction from beijing saying we are

shutting down hundreds of flights because of a handful of cases we've picked up and other states saying we've seen big up tiks but saying we have to move on i have to say living in the mist of all these rules, it is completely confusing to what we should be doing and allowing what advise can you offer any of us to try to navigate this >> it is very clear we have made a decision we are going to accept a certain level 20,000 diagnosed cases a day, which probably represents well over 100,000 actual cases. we are probably only diagnosing 1 in 10, 1 in 8 cases. china has made a decision what they need to do is crush the virus and eliminate it entirely and keep it out. china is making a bet they can

get more quickly to a vaccine. they are trying to keep it out of the country we've decided and it is clear that we can accept a certain level of infection and keep it from getting out of control. the challenge is can we keep it from getting out of control? this virus wants to infect a certain population and not going to adhere to our rules in the states in the south and southwest. arizona, houston, austin, parts of florida look very concerning right now. i think one of the tougher things you are trying to figure out. you have to go back to work. it is the things around the edges, if we are saying it is not safe to go to school on

friday but if somebody is having a birthday party at the beach on saturday saying you can't attend graduation in july but two weeks later volleyball practice starts again. how do you navigate it as a parent making sure your kids are safe but also mentally engaged and not depressed? >> going into the shutdown, it was patch work approach. a lot of states making different decisions. the states hardest press took the toughest measures. the states that were aggressive are seeing the outbreaks right now. we expect these numbers to go up it has gone on more than predicted. look at texas, about a quarter of all hospitalizations are between the age 20 to 29 around austin, a majority of the new

cases are under the age of 30. it looks like a lot of young people the governor there leading to maybe bars are part of the study and that they might take action against the bars they have to take certain measures in texas but many aren't conforming. the state can step in and maybe limit the amount of people in those settings and start enforcing the rules around social distancing. as far as individuals are concerned, i think this is very much still with us and going to be with us until we get to a vaccine. if you feel you are at risk or vulnerable, you need to take steps to protect yourself for the foreseeable future there are certain things that don't bounce back quickly. if we are not willing to accept that or accept the slower growth and recovery over the next six

months or five months until we can get to a better vaccine, we'll have a larger outbreak if we want to get back to where we were in january or december, we'll have to contend with large outbreaks and a real risk of the second wave in the fall. >> quick question from a viewer who has been writing in says, can you ask dr. gottlieb why this country can't produce enough n-95 masks for the senl general population >> there has been a little bit of domestic manufacturing that has been stepped up. there is a global demand a lot more capacity and supply has been brought up across the world. what you are seeing now is hospitals, states and the government stockpiling these and in some cases hoarding them for

themselves they don't want to be caught short again. there will be more these are obtainable to consumers right now. there are sites selling these to consumers. the niad masks, not the fda-cleared masks. they are costly, between $5 to $10 a mask right now consumers at risk. think of an older person that has to go out to a doctor's appointment. we have to get our hands on these to be used in an at-risk setting would be prudent to do for the fall. >> the other day when we first heard about the new drug, dexamethasone, i noticed moderna and other vaccine companies, their stocks were a little lower because people think these new

therapies would replace vaccines >> certainly not the case. the only thing maybe they thought is perhaps if you took more of the fear out of coronavirus, you'd see people more reluctant or less likely to get vachl. dexamethasone isn't going to have enough of an impact that outcomes of people will no longer view coronavirus as something they want to protect themselves from. >> scott, are you more concerned and pessimistic than you would have been three weeks ago based on the numbers we are seeing in some states? >> i'm more concerns than i was three weeks ago heading into the fall the numbers are higher outbreaks are higher than expected we expected numbers to tick up we have seen doubling times now falling. i think these states still have

a week or two to take action we have better tools and testing in place to do that. we can do it the other thing that makes me more concerned is the political landscape and lack of political will to take mitigation steps. we are not going to shut down the economy. if you are texas and you think the bars or the setting affecting a lot of 28, 29-year-olds do you shut the bars and tell them to go back to 50% capacity rather than 75 probably probably step in quickly the cities haven't done that they haven't mandated masks in those locations. unless we get our hands around that and get comfortable taking some common sense, limited measures, we'll be stuck with

more stred look at us compared to china we haven't done much in the wake of these outbreaks yet >> dr. gottlieb, as always, really appreciate your time and council this morning >> thanks a lot. coming up, hope springs eternal for live sports this year golf tournament today. we'll bring you up on the nba's plan to monitor players and the troubled talks of the mlb. have you heard we have a chair segment. i'm moving over to a chair it is a chair. this sad, lonely chair here. i'm going to go sit in it and put a dunce hat on like i'm in

the corner i'm going to go sit in the chair for the sponsor. >> we'll get to see your legs. >> you wearing the lululemons today? >> gray pair of lululemons on today. >> so you are comfortable. >> and i have my allberg sneakers on. >> as we head to break, look at the biggest pre-market decliners on the s&p 500 i'm going to the chair

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welcome back to "squawk box. we are still socially distanced but we are going to bring you what we call chair stories in a modified way >> chair chair. >> we are all in chairs. >> i asked them for you to change your background >> i can do that for you >> thank you >> i can do it what kiechnd of background do y want >> thank you that way it all looks like we've

moved to the chair segment and not just me. it looks like i've messed things up andrew, let me know what you think of this. i don't have a problem with this, this story do you i'm not an alcoholic >> so air travel is going to look a little different. a number of airlines including delta and american suspending all or part of their alcoholic drink service limiting the amount of time passengers are spending with their masks off and limiting other components. drink options to water only. i'm cool with it i don't think i want people drinking on a plane. >> remember what happens when people drink too much like that guy who jumped up on the cart and relieved himself

>> relieved himself? >> he took a bowel movement on the cart >> i have never seen that and i don't want someone to bring it up now i saw somebody go on a rant like this guy can't even fly if he can't imbibe if it is like an overnight flight, maybe a glass or two of wine fw it is a day-flight, don't you feel crappy enough already >> jet lag, you don't want to feel like that at the height anyway >> would you want 90 passengers breathing on you is. >> no. no just from the heightened tensions, everybody is nervous we've seen all kinds of problems and the air rage people get into you don't need that. people are tense enough as it

is just wait. >> you could power a couple in the terminal before you go on if you are a nervous flier or something. i don't see why this is not just a no brainer i'll make it there are been times -- a cocktail come on, with one of those little bottles then you really do feel like, "the lost weekend. if you need one that badly it is not the plane. you need to see bill w. and go to one of those meetings >> three days after you decided you are not going to drink except for the weekends. big talker >> i had a steak last night and a glass of red wine. >> so you lasted three days. >> three weeks but i discovered something called paloma.

very low sugar good in the summer look it up have you tried those grapefruit, lime, tequila and seltzer. >> i don't like any of those ingredients except maybe lime. >> you had bad experience at rutgers. is that what happened? >> yeah. i don't drink any hard alcohol at this point. there is no way. it is just not necessary >> eamon is texting me about berlin and you are texting me about rutgers. >> you can keep your mouth shut. not. mlb is one day closer to starting its season. holding talks face-to-face with executive director to talk about the possibilities of resuming

operations according to the athletic details include a 60-game season that would start july 19 and offer players their full prorated salaries. also options to expand the postseason play in 2020 and 2021 that's the big deal. owners are worried about how much they are going to be making this season but if they can extend the postseason, then that is big bucks potentially down the road >> media bucks to try to replace from the fans. i think it is not all parode around the league. >> cubs make a lot from the stadium. >> i guess players for a while were going to do prorated but get 80%. but now they are at 100%

supposedly it is not a done deal but they are talking >> that's a good thing if they don't figure this out quickly, there is not going to be any season. >> the nba releasing plans to restart its season on the disney world campus players will be required to wear a mask except when playing, eating or drinking outside like on an airplane just kidding >> not anymore if you watched the last dance. >> they were powering. sometimes at half time >> when you heard about michael jordan, when he first started with the bulls remarkable >> god, i love him so many times -- someone would just say something to him. maybe i could guard you. i think it was clyde or someone

comparing themselves to him and he would burry them scoring like 80 points the next game. there is a reason he's called air. everybody knows all these things but when you watch it again and you see -- i would need -- there is no way. to get up where he's this far from the rim he's only 6'6" maybe, lebron maybe. they will be isolated and have regular testing and temperature checks maybe we'll have an nba season, which will be good sorkin, there is an interview coming up about these new rules. i got my new background from something called ars technical is that part of deal book?

>> no. >> it is not, is it? >> it is not they do a good job though. they do a great job, i will say that >> i thought it was another division i thought this guy is everywhere i thought it was a division of deal book. >> we'll get the lawyers on it but no i've been reading them for years. they do a really, really good job. >> did you ever notice that that was your initials? >> i'm not actually that vain. i never thought about it >> i noticed >> i never thought about it. >> false false. >> we got to go. coming up when we return, we are going to talk about today's market drivers and the surge in cases in some states to key jobless data that comes up at 8:30 eastern. take a look at futures at this

hour we are up marginally lexus will welcome you back with exceptional offers on exceptional vehicles. get zero percent financing and make no payments for up to 90 days on all 2020 lexus models. experience amazing at your lexus dealer. can i find an investment firm with a truly long-term view that's been through multiple market cycles for over 85 years? with capital group, i can. talk to your financial professional or consultant for investment risks and information.

welcome back there is a push/pull investors weighing the virus infections against recovery. joining us now cio at state street global advisors good morning let's talk about this push/pull.

a lot of investors getting whip sawed around >> we expected a turn from certain policy responses it won't be anywhere near as darconian where you saw a complete collapse. we'll have a lot of choppiness we do believe markets are unlikely to test the lows that we saw earlier this year >> but you are still talking about lows or some kind of dip of sorts are you holding cash or buying right now. what is the thought. >> we do think the market has brought the rally sharply and will rely on more upside surprises to go materially higher from here

we do think some of the opportunities. dipping into the industrials for select names and they've been so beaten down to the stages relative to the broad market where they see the benefit in an out size way. >> would you play any travel companies? do airlines look interesting to you? does that look like a scarey place to live? >> interesting how the whole sector is scarey even there, you can find selective opportunities where the balance sheets are stronger and the capacity to weather the storm is greater and where more d domestically sourced travel. select name as cross various sectors definitely more

overweight to more pandemic sensitive sectors. >> how much of this is dependent on the fed continuing to do what he does and maybe do more, depending on what more looks like, out of washington? >> look, one of the reasons why the markets have recovered so quickly on the back drop of huge uncertainty is the fact that we've had massive support on the fiscal and monetary side we've heard repeatedly that the fed is prepared to do whatever it takes applying liquidity where there is a liquidity crisis and to make sure borrowing costs stay low. in that expansion where individuals can borrow at the rate we think that report remains

critical at this stage in this crisis >> okay. thank you. appreciate it. talk to you soon still to come this morning much more on the volatile week for markets. take a look at oil prices. up 1.3%. crude sitting at 38.46 a new report that venezuela's oil outpuck has collapsed to 570,000 barrels down from a peak of 3 million barrels a day you can watch or listen to us live any time on the cnbc app.

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can i find an investment firm with a truly long-term view that's been through multiple market cycles for over 85 years? with capital group, i can. talk to your financial professional or consultant for investment risks and information.

it is time for today's executive edge former google ceo argues that huawei is a national security risk and says that it is no question the company routed data to beijing huawei has denied accusations it passes data to the chinese government coming up, we are going to talk to a four-time cnbc disruptor pivoting their efforts in recent months to fight covid including partnerships with roche and moderna. ginkgo bioworks jason kelly next as business moves forward,

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ginko bioworks is on cnbc's

disruptor 50 list. it has chosen to pivot on some of the efforts to fight against cov covid. joining us is jason kelly, founder of ginkgo bioworks do you have any employees? do you do all of this yourself >> no, we have an amazing team at ginkgo. >> you could, i think. i'll tell you what i see here. that is we think of ginkgo as using cell engineering to biologically create products for food, perfume, all of these different uses using the most beautiful automated machinery in the world obviously because it has 4 billion years of evolution and it's the cell, but i'm trying to figure out how you apply that to dealing with covid, and i guess you have developed high through put

automated systems which will work for testing covid so it happens -- what you've learned in other areas can apply to covid have i got that right? i had to read it a couple of times. >> yeah, you have it right i was going to say, joe, with your biology background, this is biology meets business in the case of covid here it's a good topic for you. >> so you've got i will lllumin technology for next generation sequencing you're going to make a machine to do millions of covid tests simultaneously, very quickly >> yeah. $4.5 billion market cap company focused on programming cells we do that with a lot of automati automation back in march we pointed the platform at covid. we were partnering with companies like moderna trying to speed vaccine manufacturing. it's important

it's going to take time. i think what people don't realize is there was a testing need in sort of the acute phase of the pandemic, right it was almost like a nuclear bomb went off and there was a shock wave we needed all of these tests for people in the hospital, overwhelmed, heroic effort to scale testing. now that's over. we are getting out of our bunkers, trying to go back to work but there's fallout what we're waiting for, will there be a vaccine to take that away in my opinion, we need now screening-based testing. not diagnostic testing, workplace, university or other organization collected tests that say you don't have this screen like you'd have a cancer screen you don't expect you have it, you want to check. in my opinion, if we did that at large scale, that could end covid-19 before a vaccine.

>> you're building a place to do that >> we need new technology to do that ginkgo is doing that we're using genome sequencers, using a single washing machine size genome sequencer could do 50 to 100,000 tests a day building workout. >> that's what i mean, looking at all the things you're doing you're trying to streamline the search for an antibody therapeutic, which your technology applies to as well. >> yes. >> and to manufacture some of the components for the vaccine in a more -- an easier and faster way for moderna so all -- >> yeah. >> prior to this before covid you were doing totally different things >> yeah. the way to understand this, the platform is general purpose, right? >> right >> kind of like you have a pc at home we have a platform that allows us to program cells for whether

it's for bear and agricultural, now it's covid-19. >> can imagine trying to do an interview like this. i'd like to go to a four hour seminar, you know? >> yeah. one thing i've found that's interesting now is every sort of leader of a business or dean of a university, mayors of a city, they all have exactly the same thing on their mind right now, which is how do i bring my work force back safely? we launched our testing platform concentric which allows an end-to-end process which helps people who are trying to be novice epidemiologists trying to understand how do they contain outbreaks among their community of workers it's partially a workplace safety and it's a business continuity tyson had to shut down ford shut down the f-150 plant,

right? if you want to maintain your business during this fallout period, you need to have testing, right >> yeah. >> the good thing is, that's solvable at the scale of imagine a university in the northeast. >> i wish we could talk longer did you go over to coke at different times? it was called center for cancer research. >> yeah, at m.i.t. >> you know tyler jacks? yeah >> i did yeah yeah. >> totally involved with all of this stuff good man. >> good, joe. >> keep in touch, jason. i'd like to talk to you again about this i'm parlly scratching the surface of understanding it. >> thanks, joe good to chat okay coming up when we return, the latest on the fed's view of the economy and plans to directly buy corporate debt evercore's ceo krishna guha

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fed chair jay powell says economic risks what investors should take away. chinese health experts say the new outbreak of coronavirus in beijing is under control. we will take you there live. and the doj takes on big tech former u.s. chief technology officer weighs in on the proposed changes to hold internet companies reliable for content. the second hour of "squawk box" begins right now. good morning 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 futures this morning. dow is up about 17 points. nasdaq up about 21 points.

s&p 500 up about 3 points. now the index snapping a three-day win streak that happened yesterday during jay powell's second day of testimony with yesterday's pull back the blue chip still needs some 870 points to gain back last thursday's more than 1800 point selloff. so a lot going on. joe? >> maybe we'll do it we'll keep the fed cranking, right? unprecedented monetary and fiscal policies are helping support the economy and the recovery, but the fed chair is warning that the gains are at risk if stimulus ends prematurely. we need to know what that means, steve liesman. would it be in this century if it were to end would that be prematurely? what are we talking about? >> i think we're talking about the summer and july, joe powell said very exquisitely yesterday during the end of day two of his testimony, we at the fed need to keep our foot on the

gas and very much urge dong do so his concern is, look, you have this shutdown. phase one. second phase is you have this recovery we have some people coming back, but he's talking about people who are not going to go automatically back to their jobs and may actually end up without a job because of what's happened. >> it would be wise to look at ways to continue to support both people who are out of work and also smaller businesses that may not have vast resources for a continued period of time, not forever. but for a period of time so that we can get through this critical phase. the economy is just now beginning to recover it's a critical phase, and i think that support would be well-placed at this time >> of course, the house has the heroes act that the senate republicans have rejected. treasury secretary mnuchin is talking about high-level talks with congress on an additional

or a phase 4, they call it, set of stimulus. but powell very much saying it's going to be needed he does not want a cliff event where basically you have stimulus and then nothing. he wants to see the stimulus go through and at least gradually edge off today we get the jobless claims. a reminder of why we might need that stimulus. 1.3 expected it will be the 12th straight week of decline. still a ridiculously high level. ian shepard son writes the labor market is so fluid with layoffs so alarmingly high while millions of people have been rehired in states which have reopened that working out the net particular tur, that is what's happening to pay rolls, is extremely difficult it's not done a great job at forecasting claims, not done a great job at forecasting payrolls they don't know what the right metric is right now, guys. so we'll just await that claims

number that's come down each week still, it's a really misleading chart here because it fundamentally shows that it's been down, down, down. 1.3 million. where are they coming from, joe? that's the question economists are wondering. >> so it declines. it's a double -- you're talking about the number of losses has been declining i mean, we know that -- >> yeah. >> okay. >> because there's still a lot of jobs being lost obviously i mean, at least a lot of new claims for unemployment insurance, right >> right and there's four sources at least. the one is you have the shutdown, and maybe some still from the virus shutdown tself. you have some people who may be late filing because there's some requirements for filing. some people didn't get the first time so they may be filing again because they were rejected

and then the bigger question, joe, is do we have a second wave of layoffs that have to do with economics. for example n a town or a place that had no virus issues and no shutdown, are they feeling the economic effects of what's going on elsewhere and do they have an economic downturn there and you have layoffs because of that >> do you think that it matters what the number is is it market moving if it was really bad or really good today or not anymore >> i think there's some up -- look, first of all, can i just tell you let's not talk clinically that every one of these is a problem i know you know that, joe, but i just want to make sure we're not giving numbers to that idea. i think there's some up side if this were to improve faster than markets thought f. it ends up being higher than expected, still scratching our head here. >> higher? >> yeah.

looking at the high frequency data saying, where are they coming from? we have to understand that process a little better? >> the other day he said empire? it sounded like higher when the empire survey comes out. thank you, liesmania. >> rick does a great job with the data, joe. >> he does he does. he's from chicago, which is next to minnesota not next to it, close to it. somewhere in the same vicinity i flunked geography. becky. thank you. joining us now to talk more about the fed's response to the coronavirus and reopening the economy is krishna guha, evercore's vice chairman good to see ou. >> huge pleasure >> let's talk about what we're hearing from the fed because i think we all knew the fed was going to be doing enormous things maybe it's been dawning on us

slowly how enormous some of those things are and what this might mean for the markets and the economy beyond that. has there been anything that's surprised you, let's say, in the last couple of days coming from the fed? >> so i wouldn't say really big surprises, but i think there's a message, and the message is that while the fed welcomes this slightly better than expected high frequency sequential data, the fed is focused on levels and level gaps a huge level gap in employment as well as activity as well as actually inflation relativeto what it wants to see, conditions of true full employment, the kind that we saw earlier this year so the fed is saying no matter that we've got this better news, which is welcome, the fed sees a long haul ahead and it is absolutely committed to staying the course to get the economy back to where it was a few

months ago >> we were just talking with steve, i'm not sure if you heard part of that conversation, but we've seen obviously the huge first wave of layoffs. that's from businesses that shut down because of the coronavirus. steve was talking about the second iteration, places that might now be feeling the crunch, not because they had shutdowns in their own town or because there were coronavirus cases severe in their towns, maybe you think of it as a place that's not receiving the tourism that they might have been receiving at this point? >> yeah. >> maybe you think of it in terms of big or small companies that say, hey, as a result of what's happened, we are -- we didn't do layoffs initially but we have to do layoffs to make up for the loss of revenue we're dealing with and the loss of the ability to -- or maybe demand for our product that's out there. i think the second, third, fourth iterations, that's what people are concerned about do you have any idea how that plays out? how would you try and model it at this point? >> i think the honest answer is that that's the right set of

issues to be worrying about, to be thinking about. incredibly difficult to actually put any very precise modeling around that. i will add to the points that you raised this concern that some of the strength that we've seen spending but also perhaps associated employment does seem to be very strongly associated with the boost in low income househol households' income from the fiscal programs that were in place, the $600 a week additional ui, the tax rebate checks those were heading at the same time the ppp funds are being made available to smaller businesses so fantastic news that those programs seem to have had a big effect but as we look forward, i think the question is, well, you know, how much of that fiscal support will be maintained going

forward, both income support for unemployed and other households and, you know, assistance for small businesses, and if that starts getting tapered off, then the question is, you know, what will the economy look like when it has to stand on its own two legs so it really matters a lot, you know, first of all, what comes out of the negotiations on potential fiscal stimulus but also how the jobs market sort of operates as some of these supports are at least moderated, hopefully not just withdrawn. >> the markets actually sitting at these levels, these relatively high levels considering all the concerns you just laid out, and i guess that's because they are assuming that both the fed and probably the federal government, too, will be there to act as a cushion if there are these other

repercussions. do you think that's the right move, the right move by investors i should say >> it will be several certainly be the case that the fed will stay all in with the instruments that it has. i think the last set of announcements from the fed that they would continue buying at 120 billion a month with treasuries and mortgages through the coming months and the doc guidance, certainly a bridging where they will make long range in terms of qe and forward guidance in terms of rates it looks as if they'll get to a significant fiscal haul over the course of july there is execution risk around that particularly when you throw election funding into the mix.

then it will depend on the political constellation. there's a core question about how durable the fiscal support will be if we look ahead over time i think the other reason markets are holding up for somewhat troubling developments in terms of the virus data itself is, of course, belief that, you know, both fiscal and monetary stimulus warrants coming but also i think a bet on human ingenuity that over the coming quarters both on the therapy side and on the vaccine side we're going to make some important breakthroughs. if you're trying to think what will the world look like this time next year if we do have a

lot of stimulus it's working its way through the system because of the medical innovations. then the outlook looks pretty good >> krishna, thank you. good to see you. >> my pleasure any time coming up on "squawk box," thanks, becky, just a moment, china's center for disease prevention and control saying the capital's recent outbreak has been brought under control we'll bring a live report from beijing after the break. then wall street veteran henry cornell will discuss u.s.-china tensions. before we head to the break, let's look at the markets. dow off 60 points. we were in the green 20 minutes ago. nasdaq up 4 points s&p 500 f pots ckft ts.of6 in

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welcome back, everybody. a rise in coronavirus cases there has forced the world's second largest economy swiftly to contain the spread. this morning news that the latest outbreak is under control. eunice yoon joins us we're watching this pretty carefully just to see if these extreme measures are working. >> reporter: yeah, that's right,

becky. chief epidemiologist here said, as you had just mentioned, that the epidemic in beijing is under control. i wanted to pull up a photo that has been circulating online where people have scratched out the word epidemic and are joking that beijing people are under control. that is because several categories of people have to take a covid test before they go about their business anybody related to the wholesale market as well as residents in the area, of course, but also anyone who's public facing so front line staff when it comes to health care also people who, for example, might work at a hotel and then the other category of people is anyone who intends to travel so beijing airport announced today that you need a negative covid test if you are to board the plane as well as meet several other requirements and then several people who are basically mainly associated with

the wholesale market are also banned from traveling altogether even if you've been in the vicinity of the market, you can't leave the city so this drive-through testing has created a backlog as you can mention for covid tests. it has capacity to test 90,000 people a day but people who we talked to who are standing in line at the testing centers, also online, people who are complaining that they haven't been able to book a test, the average wait time is 15 days sometimes a month. that has been very disruptive for people's schedules and their plans. there's still no word on the origins of the beijing outbreak, but today the commerce ministry reassured the public that officials are stepping up measures at ports and other places in order to ensure that imported food is safe. in fact, today some food that was coming in from a german

plant, pork, actually, those pork imports were suspended. >> all right >> red herring of blaming food imports. eunice, really quickly, the idea of testing people makes sense if you could stand there and get an instantaneous test if you have to wait 15 days, what's the points? you may have been infected in the meantime >> reporter: yeah, that's right. also you have to have -- the covid test has to be good within the past seven days so it does make -- that's one of the reasons why people are complaining. they say not only do they have to wait, the timing isn't quite working there. >> eunice, thank you good to see you. we'll continue along these lines. china fights on the second wave.

investors are having tensions simmer with the u.s. the potential market impact, founder and senior partner at cornell capital. private investment firm in new york and hong kong it's good to see you you labored for 30 years at goldman sachs building out the merchant bank operations there a lot of that was expanding into asia and your own firm now your own shop has strong ties to asia with a lot, i guess an emphasis on cross border trade with china financial services sector. is there a china angle to all of your company, henry? >> one way or another, yes you know, having spent -- lived there for 12 years with a number of my partners as well, it's core to our investment strategy to be able to take u.s. companies to china and then take chinese companies to the states. >> so what is on the top of the

list now in terms of concerns for your businesses? the second wave of covid that wouldn't be good if it was anything like the first wave >> well, joe, if you look at the color of my hair, i tend to worry about everything >> yeah. >> you know, this year has been one right after the other. january, no potential war in iran, then the virus shut down our factories in china, shut down customers in the states now we have obviously issues with civil rights in this country and then you're about to launch into presidential politics this year is like one punch after another, but the benefit of private equity is you have to take the long view and position yourself for the bullets as they're flying and try to duck. >> where are we in u.s.-china tensions at this point is that a back burner issue now with both countries dealing with the pandemic >> i think it's front burner,

actually it's a critical issue. both countries need to cooperate. there's so much to be gained there are legitimate trade issues that should be negotiated out, but the idea of shutting down communication doesn't benefit everybody. >> does the virus and the way both countries have dealt with it in china, i'm talking about, whether there were transparency issues, cooperation issues and early transparency, is that an issue that then goes into the tensions with -- between the two countries? >> quite clearly i think you make a very good point. this should be a public health issue with complete transparency and cooperation and, in fact, it's not and so each side is doing a little tit-for-tat i'm not sure the sharing of information is as good as it

should be, and between chinese scientists and u.s. scientists, they should be working closely together this obviously affects business. it affects people's consciousness about cooperating or traveling you can't travel to china right now, which is tough for our firm because i'm usually in china every six weeks or so. we haven't been there for six months. >> i mean, i assume you are a globalist, so to speak in other words, you think we don't want to pull in our horns and have a domestic economy. even so, if you're not a big promotor of globalism, i mean, dealing with china and trading with china is a given no matter how you feel personally about things like that one way or another they're going to be a big part of our future in this country, right >> absolutely. welcome to the nfl and trade relations. we negotiate with our european partners, with our north american allies in china

china's a tough competitor, but we are a great power we are a great and powerful power and when you lead the world, you need to make certain concessions in order to keep that leadership position china wants to have a strong seat at the table and deserves it, and they also need to make some concessions in order to cooperate and peacefully compete. not afraid of that competition i actually welcome it. the idea of as you say pulling in your horns and going back to fortress america, fortress china sends us all backwards it's just not good for anybody it's certainly not good for people it's not good for wealth creation and it certainly runs the risk of world peace issues. >> have you tried to identify new opportunities in this environment? are you just trying to manage the companies you already have >> doing both. right now the bar for us is very high for all the reasons we articulated, but we're very

active in building out what we have in china. for example, we own the company that manufactures pyrex and insta brands if you don't have one, i'll send you one. we are going to open instapot in the region in the fall pyrex is a global product. 20% of the revenues is in china and the rest of asia we're making sure everything works there. at the same time there are still a number of chinese countries that want to come to the states and american countries that want to expand their position in china right now. it's terrific. it is a tough time, but we're keeping at it. and we need to keep at it and get through a tough time >> a lot of people would give anybody to have your hair.

i know it's gray, but it is -- it's ample it's good. isn't it it's excellent >> i'm happy i have it no matter what color it is. >> that's what i mean. me, too. anyway, you said you worry i worry about -- i've got a little little bit here. maybe i'm not worrying enough. i don't know clueless maybe thanks. >> thank you, sir. >> good luck hopefully we're one day closer, as we always say, one day closer to hopefully something better than this year thanks andrew given how much i worry, i'm going to go gray sooner or later. >> see >> coming up, there's transformational shift happening in the way americans shop. we're going to find out if it's here to stay as we head to a break, take a look at some of the online retail winners since the outbreak "squawk" returns a of this it started with a few smaller bills.

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as americans live, work, learn from home, a transformational shift is underway in the retail industry with people changing what they buy and how they shop. courtney ragan joins us right now. she's got a look at america at home hi, courtney. >> reporter: hi. good morning, becky. the covid-19 crisis poured lightning fluid on some retail trends that were smoldering. they have been growing by double

digits annually but surged during the pandemic. some of the surge is coming from first-time online shoppers hard to believe, but they're out there. in fact, 43% of u.s. consumers never or rarely shopped online since march, since then 90% say they've bought something online according to adobe a rakuten intelligence analysis looks at who these might be. older americans, more at risk. in the 65 plus age group, their share of new buyers outweighed the share of all buyers in 13 of 15 retail categories and shoppers on the lower side of the income bracket are also making more online purchases apparel, $50,000 a year in their household made 54% of new online shoppers during the covid outbreak but only 40% of all

shoppers online grocery overall saw a huge surge the permanence is in a bit of question 38% of online grocery shoppers did do it for the first time in the last three months but adobe says grocery online sales fell 14% from may as stores reopened the hybrid shopping model does seem to be gaining steam 32% of americans used buy online and pick up in store and 35% say they're going to continue to do it andrew >> okay. courtney, thank you for that joining us right now to continue this conversation on the one-year anniversary of the launch of his retail and ceo of verishop who knew a year ago that you'd be living in the middle of a

pandemic let's talk directly about your business and then i want to get into the broader landscape of retail what's it look like for you in the last three months? >> yeah, it's obviously a very incredible experience. you have to worry about your employees health, customers' health and running a business in a virtual environment and growing the business, we all have to learn new thing every day. it was pretty incredible >> in terms of pickup, what's it look like? >> yeah. i think we saw our business grow 30% month over month in april and then 33% month over month in may. now i want to caution you that we're a new business and we're getting new value proposition. it's hard to say how much because of covid and how much because of our business are

going to be growing. >> and what's your take though on more broadly the sustainability of the kind of growth we're seeing online meaning do you think we've fundamentally changed our buying patterns forever is this about certain types of businesses retail clothing and the likes? i mean, a lot of people are buying food on things like gold belly and things like that does that hold up? when and if we can all return to a real sense of normal >> yeah. i think a year ago i was on your set and you asked me why am i creating ecommerce business? ecommerce at that time was 10, 11% of the market. i think over the next decade, two decades it will be 30, 40, 50%. if you look at markets like china, ecommerce is 20, 30%. i think ecommerce was heading towards that direction this health crisis will help accelerate that. i think if you look at market like china, they have prices in

2003 which accelerated the growth of chinese companies doing business at that time. >> do you look at this as a straight short on commercial real estate when it comes to retail, meaning i think part of it is who's the winner but who's the loser in all of this >> yeah. i think -- i hesitate to say straight loser of a specific group, you know, based on what's happening today because, you know, i think over the last 100 years if you look at history, different crisis comes and they call a group a loser they come back i think obviously because of that some of the businesses has to rethink how they will live in next decade and companies that would be able to reinvent themselves will do well. i hate to call a conclusion based on two months' trend but i think it's really on simple

execution. >> let's talk then -- why don't we flip it around and talk about winners. what do you think of the valuation of some of these companies? i'm thinking of the shopifys of the world which has just been a rocket ship. >> yeah. it's hard to talk specifically about the valuation, but i think in general, you know, i think a lot of times, you know, there is investors are looking at future earnings potential and anything that becomes an exhibition story. i used to be a research analyst many jobs ago. a lot of the times when you are dealing with technology companies, you are looking at the earnings potential of the companies and that's, you know, obviously in many ways our verishop is over value, but it's looking at the future potential of the companies >> and in terms of marketing and advertising, which is so -- which is such a fundamental requirement to bring in new customers, what are you seeing in terms of facebook, twitter, instagram, your former company

snap in terms of what's really efficient right now in terms of spending your money? >> yeah. i think we have a very strong marketing team and it's led by productive engineering team. we continue to look at every channel and, you know, we're trying to be as efficient as possible but i think from very beginning i think one of the promises we make that rather than spending a lot of money on marketing, we want to give the value to customers so, for example, for one of our neighbors we have some incredible value the key thing is i think many companies focus on advertising we don't focus on our customers and how can we transfer the most value to customers. >> just real quick in terms of customer acquisition costs, efficient use of money, you can give it to google, you could give it to snap, you could give it to twitter, who do you give it to? >> i think you have to run a marketing mix model where you

actually allocate dollar across many channels because just one channel you are never going to get all the customers and the other thing is looking at just customer acquisition is not the right way to think about it. you have to look at the lifetime val value. i wish i could give you simple answer but different time we have to make different decisions. >> imran, thank you for joining us congratulations on the one year anniversary. we hope to continue to follow your progress. >> thanks. >> thanks. joe? coming up, an update on the auto and airline sectors as america continues the reopening process. speaking of cars, ride hailing company lyft says every vehicle on its ride hailing and car platform will be electric by the end of the decade. "squawk box" coming right back

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welcome back to "squawk box. this morning the pandemic has changed the way millions of americans get around that has forced the airline and auto industries to rethink the way they do business phil lebeau is joining us with a look at america at home. phil >> reporter: andrew, big changes for the airline industry and the auto industry. really it comes down to each of these industries having a huge shift. it's the fact that lower corporate travel, that's the business right now they're going to have to try to figure this problem out at some point, but nobody's when corporate travel will come back. we'll talk about that in a bit in the auto industry, used vehicles are red hot

used auto industry, 40 million new vehicles were sold last year that's a record high the auto auctions, they cannot keep up with demand. dealers are saying we have more people coming in saying i need a vehicle. my life has changed in some fashion so that i am going to be doing more driving either i want to or i need to so as a result you've got used auto prices at a record high. take a look at the last three months for car vanna, carmax, sonic auto all of them have moved higher and the reason why is because they're seeing greater demand, greater sales. meanwhile, toyota earlier this week, they gave an update on the business one of the executives said they are hearing from their dealers that they are seeing more first-time buyers. sales last week of new vehicles are down 4% adoreding to --

according to the airline industry it's not just because of covid-19 but it's because corporate travel is down as much as it is look at the states of play the percentage of people who have a fear of flying, that says it all right there it has improved slightly when you have passenger levels down 80%, that tells you why the airline stocks, the big four, their cash burn levels, a daily cash burn between 20 and $40 million. again, it's all about corporate travel you talk to the airlines, they just are not seeing it they're not sure when they're going to see it in any measurable way >> phil, in terms of pricing on business class seating, how much has that come down >> reporter: no. it's come down a little bit. >> pay a little extra? >> reporter: it's come down a little bit, but it is not --

that's not a factor. pricing right now is really not a factor either on the leisure side or on the corporate side. the airlines when you talk with them are not finding a case where you really throw out low fares where you'll get a corporate manager that says, yeah, i'm going to send bob the sales guy out on the road. this is corporate america saying we're not comfortable with it or we've realized bob can do it through zoom so bob doesn't need to get on a flight or fly as often. >> to the extent there's conversations taking place inside these airline companies, i know you have such great access, what are they talking about? what are they saying they can do >> reporter: not a whole lot that they can do in terms of spurring corporate travel. look, they are stuck to a certain extent what they're trying to do right now is mainly manage the cash burn that is job number one for the airlines right now would they love to have more corporate travel back? you bet.

right now their focus is almost entirely on how do we bring our costs down how do we have enough cash to get us through the next 18 to 24 months >> finally, is it really cheap if i want an upgrade right now >> reporter: yeah, to a certain extent it is it depends where you're flying and how many seats are available. remember, while there are fewer people flying, you are having fewer people up there in that business class area or who want to be in business class. yeah, i've heard stories from friends who are -- a few froerchds who are saying, oh, i was able to get an upgrade >> phil lebeau, thanks >> reporter: you bet >> appreciate it becky. when we come back, doj wants to hold platforms like twitter and facebook accountable we'll speak with anish chopra.

then at the top of the hour senator rob portman talks china, reeng topinofhe economy and much more. "squawk box" will be right back. ♪

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get a powerful and reliable internet and voice solution for only $29.95 a month for three months. call or go online today. the department of justice wants to crack down on big tech in a proposal to congress the doj recommends rolling back the liability shield for an internet company that's been around a long time. suggests revisions to existing

law would change the way social media content is moderated just the latest in the tug of war between silicon valley and washington joining us is anish chopra current president of care journey, a health care analytics firm anish, last time you were on, that wasn't the only time, you've been begging, begging for the industry to figure out how to do this with stakeholders in mind, how to do it themselves to prevent something like this. they have not and now this is what you're seeing it's a baby step which it's not going to become law, do you think? it shows something going on here that they should have tackled it themselves already >> it's a 25-year-old piece of legislation and it's kept the industry on a reasonably strong footing. it's an obvious economic success story. it was designed to give safe

haven or room for the industry to do more to protect consumers. we see today the challenges around election interference and even historical challenges around terrorism and content around that. we have to see the industry do more several former colleagues have launched a professional society getting the safety professionals working on the ground in these companies to come together to share best practices, but we have to do more to bring responsibility in these environments and the industry can do this on its own the debate now is does there need to be some baseline standards, requirements. that's going to be a healthy part of the discussion this piece of activity we're seeing here is more akin to political theater but moving forward i think there is going to be an opportunity for a thought full discussion around how to set the right rules of the road for the next chapter of the internet

>> politically it's hard to figure out who's where it's bizarre there are some strange bedfellows the doj looks like it's trying to thread the needle leave section 230 in there but make certain things if they're, for example, criminal, then that would give you certain car vouchers vice president joe biden wants to get rid of section 234. the left is worried about election if a nagling and the right is worried about conservative groups being kicked off of twitter and facebook. it's bizarre can you describe the landscape to me? >> just to give you a little perspective. if you agree there's a problem, there's information online that's propagated that is perhaps doing more harm, the question is do you want to see more engagement to bring some of that information off or do you want to see less that's the divide that you saw if you think of the good, the

bad, the ugly coming out of the doj report the bad, if you were to think about -- if you believe that there should be more misinformation, less moderation, then you might embrace some of the provisions in the doj report that say, look, unless it's absolutely, you know, criminal or very specifically, you know, narrowed, you can't moderate i don't think that's where the majority of american people are. they want to have honesty in our elections. they want to have some consistency with respect to how misinformation is propagated and to me that means the industry should do more and i think when you hear politicians on both sides of the aisle bring this issue up, the premise is in part get the industry to move but it's also to say failure to move is going to require us set some baseline moves. you've seen this in the privacy debate where there's almost bipartisan movement around

establishing baseline fairness so we have privacy protections on the internet. how we get there and finding a piece of legislation is going to take some time in this area the political parties seem to be at odds on whether we need more moderation or less. i'm on the more side i'm hopeful the more will come from the industry getting more organized. the ways we see it on the criminal side with intellectual property theft if you accuse the platforms of stealing your copyright, your music, they have built technologies, they have built them to help identify those areas of copyright infringement, which is criminal. if they've moved that in a more thoughtful way offline the notice and takedown procedures reflect a bit of an industry tether to get there we need to see some of that on the misinformation and election interference side. >> i don't know. i need a ben franklin. josh holly wants to revoke it

yet most conservatives, if you revoked it, then they'd be complaining about frivolous litigation i don't know who's -- everybody's on the wrong side of where they normally are on these issues i don't know i need help. >> out of the political lens and into the right answer for the economy, this is an economic growth companies are more mature and have capabilities and we have room for disruptive innovators to come in >> right >> i don't know. it's all subjective. i don't know how you write down a list of things that you definitely want to do and it's going to be subjective instead of objective should be the industry itself needs to do this -- >> yes. >> -- or you need to quit your job and go back and help we do what we can. thanks appreciate it. i'm sure we're going to need to talk to you again in a couple of weeks because this is not going away andrew okay coming up when we return,

senator rob portman is going to join us to talk about a new proposal to help incentive advise as the economy begins to reopen that's next. later, don't miss our exclusive interview with recent volatility in markets, esg investing and so much more take a look at futures right now this morning we are in the red. dow off 182 points nasdaq off 21 points s&p 500 off 18 pntois. big hour ahead derek, seems like your team is operating just fine remotely.

yeah, everything is running smoothly with the now platform. (bling) see, incident resolved.

how did you... gotta enjoy the small wins. you keep being you, derek. keep being you. good morning what's the next catalyst for stocks is it the fed's market intervention, reopening u.s. states or maybe it's the

troubling rising coronavirus cases around the country we're going to talk portfolio strategy for the days and weeks ahead. and a back-to-work bonus, could it be an important step in getting the labor force up to full strength? rob portman will join us with that idea. speaking of work, we are 30 minutes away from the weekly unemployment claims. a measure we pay such close attention to during this pandemic the numbers and expert analysis is coming up the final hour of "squawk box" begins right now. good morning and welcome to "squawk box" here on cnbc. i'm joe kernen along with becky quick and andrew ross sorkin we've seen a steady move lower in the last half hour, 45 minutes in the dow futures now down about 250 points.

we were right around the flat line at the beginning at 6 a.m. and the pre-market up a little, down a little. we have seen it slowly deteriorate. in fact, even the nasdaq, which was up yesterday while the s&p and dow jones were both ending lower, even the nasdaq showing some losses this morning treasury yields have been trying to tick up a little bit this week nowhere near where they were we were at .9 or .9 of a percent on the ten year. here are some of the stories that we are watching that investors could be talking about today. the bank of england has added 100 billion pounds to the bond buying program while keeping interest rates unchanged that's the latest news to boost economic performance shares of carnival are falling this morning they released preliminary warnings to have a widerthan expected loss.

it says it's seeing some improved bookings for 2021 supermarket chain kroger out beating on both the top and bottom lines kroger also said it expects to exceed the outlook that it gave back on april 1st. becky? >> thanks, joe. congress's c.a.r.e.s. act was meant to help americans weather the impact of the coronavirus. as part of that it created a $600 a week federal supplement to state unemployment payments take a look at this analysis from the american action forum based on 2019 wage data, it shows more than 60% of american workers could make more by not working than working though only if they also received their state's maximum unemployment payment. in congress representative kevin brady and rob portman are now proposing back-to-work bonuses to incentive advise workers to return to their jobs senator portman joins us to talk about this great to see you this morning. >> hey, becky.

thanks for having me on again. >> this is an idea you first brought up with us at least i think it was about a month ago, although it's hard to tell how much time has passed over that your thought at that point was people on the front lines who were going back to work should have an incentive to actually do that, to get back in what kind of progress have you made on that front since >> well, for the last six weeks we've been talking about doing it now as part of the $600, but as i talk to you today, you know, the july 31st date is looming. that's when the $600 ends. democrats are insisting that there be $600 not just for the next month or so but into next year republicans for the most part are insisting that the $600 end. i think there's a good way to deal with this, which is to say let's have a lesser amount as a federal supplement to the state unemployment insurance but let's provide the bonus. i think we should be having it now, it doesn't seem to be

working. it's a disincentive to work, the $600 let's allow people to take some of that money back to work with them it helps them get back to work, get their health care back, most people get retirement. if they have a 401k, back to training and dignity of work small business, they're desperate to get this. you hear it across the country and i hear it across ohio. it helps at the state level but also this federal supplement would be less than the $600. so i think it's a good idea and it's encouraging work, which everybody should want to do. >> what kind of level are we talking? when we spoke last you were thinking $400 to go back to work, $400 a week? >> $450 out of the 600 is what we came up with really as a way

to make people equal to someone who's on minimum wage. it wouldn't be a disadvantage for someone coming off of u.i. if they were at a minimum wage average. i support that now i wish congress would pass it. i can't see it happening i think when we hit the july 31st date, which again is a cliff. we go from 600 to nothing, the democrats will insist on 600 going, again, into next year and some well into next year and republicans saying we shouldn't continue because it's a disincentive, which it is. the chicago american action study shows that the bottom20% of wage earners are making twice as much going back to work i think we need to come up with that that needs to be a lower federal supplement during a period of time, between now and the end of the year and a return to work

bonus. that will help get people back to work. >> senator, what do we do with with those folks who really can't go back to work, either because of their age or because they have co-morbidities or other issues that make it unsafe for them to go back to work? >> well, this is a voluntary program, andrew. anybody wants to stay on ui, they should. the question is what kind of federal supplement should there be the return to work bonus is a voluntary program. i think a lot of people would take us up on it they want to go back to work that disincentive is huge. it's hard for employers to ask people to come back to work when you have that kind of a gap. under the ui system you're supposed to be searching for work if you have an employer asking

you to come back, you're supposed to leave ui and go back to work. the ui systems are overwhelmed and it's hard to enforce it. >> senator, it seems like your plan is a pretty common sense, down the middle plan is it breaking down the lines as to who will sign up? >> i don't think so. i've talked to a number of democrats about it, four or five of them were interested in working with me at one point they were told by our leadership, our plan is 600, that's our negotiating plan going forward. if you talk to them, as i'm sure you are, they're getting the same thing i'm hearing in a state like ohio if you have to make 53, 54,000 bucks a year in order to make it worth leaving unemployment, it's a dis disinsendtive.

the question is how can we work out something to deal with the july 31st deadline i think the return to work bonus is the way to do that. >> one of the other issues we've been dealing with is the tensions rising up we've heard about a lot of different things and then there was an accusation that we heard today that the former chairman of google, eric schmidt is making against huawei. they do feed much of the information back to the chinese government there have been concerns about competition, and i understand you are introducing a bill this week to try and protect some american innovation from chinese theft. what's the bill? how's it work? >> becky, we spent a couple of years working on this one issue of avoiding china coming here and taking our best research back it has helped to help the chinese economy and the military over the last couple decades,

actually they do this primarily through the talent program, particularly the thousand talents programs. we've had hearings and it's bipartisan legislation it's based on a report that was thorough and fact driven but also shocking to find out that china purposefully and systematically comes over here, targets american researchers doing promising research, pays them pays them to set up replicate labs in china to do that work. i testified at one of our hearings that they've been asleep at the wheel for now and they're going to make up for it. they have started to make up for it to their credit, there have been a half dozen public arrests in the past months on this. we've had 54 researchers fired because of a conflict of interest, taking money from china or other countries, mostly

china. also working on nih contracts. there's no law against it. our legislation puts a law in place. innovation at our research universities it helps the state department keep people out who are coming here to steal our research there are things we need to put in place one of the points i made before, this is about us this is what we can do within our control to better protect ourselves. there's a lot of criticism of china and finger pointing of china. we have to get our own house in order here that's what this legislation does. >> senator, related question on china. as you know, there's this book by john bolton that's going around and specifically he talks

about the senate's role and the way we treated zte was misused as part of a bargaining chip with his relationship with president xi he said this should be investigated do you think it should be been investigated >> the bolton stuff is interesting. i've known john for a while. i have considered him a friend i worked in two white houses if i felt that way about either of my two buses, busch x41 romo, i would have resigned. what happens in the oval office and conversations with the president are meant to remain confidential to allow those conversations to remain open and candid in terms of chinese companies,

telecom is a problem we just issued that. what we found was of the three chinese telecom companies that have not been addressed by the fcc or the department of justice or department of homeland security, again, we have been naive. we have allowed them to operate in this country, collect data, much of what we believe goes back to china. in terms of zte and telecom generally, i think there's more we have to do. again, i think we have not protected ourselves in this country and we need to realize in this century this is happening. it's not just china, it's north korea, iran, anybody who can get access to this china is the main perpetrator and we need to protect our selves better. >> senator portman, thank you for joining us we hope to have you back soon. >> thanks, becky always good to be on with you. thanks, joe, andrew. eli lilly says it's beginning a phase 3 clinical

test for its drug. it's approved in 65 countries to treat adults with moderate to severe rheumatoid arthritis. data is expected in the next few months rheumatoid arthritis, one of the most well-known or common autoimmune conditions. it causes a problem with your joints so if you could suppress that, that's part of the notion that it might help covid patients that aren't just sick because of the virus but because of the way the immune system is treating the virus which is why dexamethasone is helping some of the sicker patients. i've heard they were using this or at least considering whether it was efficacious in covid.

andrew. >> thanks, joe. meantime, we are now seeing the major airlines all trading lower this morning i don't know if you're looking at this, guys. phil lebeau joins us with comments from delta's ceo which may be leading some of this situation. phil >> reporter: andrew, this comes from the delta virtual meeting it just wrapped up during the q&a session how many delta employees have contracted covid-19. he said approximately 500 have contracted the covid virus of the 500, ten have passed away he didn't go into any description of what jobs those were whether or not they were front line workers, and that's one insight into one company, one

airline and the impact the coronavirus has had on them. ed bastian saying overall since the coronavirus started about 500 delta employees have contracted the disease ten of them ultimately passed away guys, back to you. >> phil, did they give any clarity around the timing for any of those issues? was this something that was a big problem at the beginning before we really knew what was happening? >> no. >> because that would make a big difference -- >> absolutely. >> -- if there are different safety standards if this is something that they have just stepped up -- >> right. >> -- i think that would tell me to be concerned about the level of safety measures that can be taken. >> great question. they did not get into details in terms of timing, the jobs people held who ultimately had coronavirus and those who passed away remember that delta is in the midst of this.

it's set up with a dedicated staff working on aircraft cleanliness as well as front line cleanliness they also announced, i think it was about a week and a half, two weeks ago, that all delta employees will have access to covid-19 training. you bring up some great questions. questions that we're going to follow up with with delta now that ed bastian -- he was asked very straightforward question by a shareholder and this was the answer he gave 500 approximately contracting the disease, ten who ultimately passed away. >> hey, phil, just to get the denominator right, how many employees do they have >> when 93,000 so i haven't done the math there in terms of how that works out. >> right >> the other thing is, an dry, i'm not sure how many companies have said this is how many employees have contracted the disease.

there's no way of knowing if other companies of similar size have experienced it. >> that number is a 2% mortality, but we don't know if everyone was tested, again, phil, right? it's possible that there are asymptomatic people. we don't know if delta knows every person who had it. >> they didn't have the detail. >> 2% is a high number but it's not 5 or 6%. if you tested more than -- >> that's what it indicates, too. >> then i'm wondering about the ten that did pass away, we need to -- i'd like to know age, co-morbidities and everything else just to get the whole picture. >> correct and the things that becky brought up w45r7 the jobs how long ago did it happen obviously we'll say can you share more insight with us.

>> okay. phil, thank you for bringing us that and adding all of that context to it. meantime when we come back, civil rights group taking aim at the facebook advertising machine upset over hate speech on the platform calling for companies to temporarily stop futures have deteriorated this morning. let's show you what's going on in the red dow up 183 pois ghnontrit w. squawk returns right after this. 300 miles an hour, thats where i feel normal. having an annuity tells me my retirement is protected. protected lifetime income from an annuity can help your retirement plan ride out turbulent times. learn more at protectedincome.org.

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ago. down 190 that's all been in the last hour seeing losses getting a little bit worse than they were at the beginning of the broadcast basically unchanged. the nasdaq is also low, but that's coming back around. down 35, 40 points down 18 now. s&p indicated down 18. meantime, yesterday several civil rights organizations, including antidefamation league and naacp took out a full page ad asking advertisers to boycott facebook stop hate for profit is in response to what they say is facebook's repeated failures to stop hate on the platform. people can opt out of seeing political ads on facebook. joining us right now, jonathan greenblad is the ceo and national director of the

antidefamation league. thank you for joining us >> thank you for having me >> tell us about this effort and tell us specifically, you've been in talks with facebook for quite some time about this issue. what's the back and forth been like >> it's been challenging we have been working with facebook for years we have a center in silicon valley that deals with hate speech on social media and facebook which is far and away the largest such platform in the world, we have been engaged with them over the years to finally do something about hate speech and we felt like in the wake of the death of george floyd it had just reached a boiling point which is the naacp, col lovor o medad change, they said, it's time to stop hate for profit. >> what have your conversations been with advertisers? as you know, advertisers have

been reluctant to jump into these debates and, frankly, given the fact that facebook has such a large market share in terms of online advertising, especially during this pandemic, i imagine it must make it harder for businesses to make a decision like this >> we, yes and no. we've had conversations with big fortune 500 brands the campaign launched yesterday. what's important is that this isn't a boycott. it's a permanently abandon -- this isn't a walkout to say you should never use the service, this is a pause to show facebook that there are consequences when it doesn't deal with the racism on the platform, when it doesn't deal with the conspiracy theories on the platform, when it doesn't deal with the anti-semitism and holocaust denials on the platform and all forms of hate. at the adl we track extremists

and we found white nationalists literally using facebook to organize their efforts to disrupt the protests over the past several weeks we saw examples on facebook of conspiracy theories that george floyd was paying protesters -- that george soros, excuse me, was paying protesters and george floyd was some kind of actor look, the time has comfort company to say, we are not going to allow this kind of hate which is further dividing our country to proliferate on their platform businesses can make these decisions all the time businesses have the right to say what will happen in their store, on their service, what they won't tolerate i think as the country struggles with issues of racial justice, as the country struggles with issues of extraordinary division, we think rather than waiting for washington to act, business has a role to play to

say we support the quest for racial justice, we support the quest to tackle hate and we want to push facebook, show facebook that if they don't take action the bottom line will suffer. >> you mentioned government and waiting for government to act. you know what's now on the table. do you think that facebook and other social media platforms should be liable for the information that's on their service? >> yeah. i saw joe's talk with my former colleague. 230 is very complicated. the reason we have the internet we know today from facebook to wikipedia to so many other services is literally because of the creative latitude that 230 provides let me tell you something, when they drafted that 20 some odd years ago, the intent wasn't to think that companies would allow neonazis to manipulate their services the thought wasn't that it would allow racism to proliferate.

>> right. >> whether the companies should be liable or not, whether they have a legal liability >> jonathan, let me ask you this we had mark zuckerberg on the program a couple of weeks ago, and i don't want to speak for him, but i believe if he was here today he would say, look, we've made a lot of strides on this issue we may not catch everything. we are trying. do you believe they're trying? is it an issue of they're not trying hard enough they're not taking this seriously enough is this an issue of bad algorithms and a whack a mole game that's almost ip r impossible to win? what do you think is happening inside of facebook >> i've dealt with mark, sharyl, so many good executives there. they are good people and they have made some effort but not nearly enough. they need to apply the same urgency that they applied to copyright protection

look, this company is worth almost $700 billion. it is one of the most innovative companies in the history of the markets. literally what they've been able to do, it's whatsapp, oculus, portal, insta and facebook, the idea that they can't tackle this problem is i think laughable, but they need to feel the urgency. fortune 500 brands new at adl we have found many examples of fortune 500s flighted against white nationalist content, flighted against some of the worst things i know have nothing to do with facebook. >> right john, we appreciate you joining us we would love to have you back to understand how this progresses. >> look forward to keeping you posted. we have to go.

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cool? drop the taco. get in the car. does this sentra feel like a compromise to you? wait, what...? the handling is good, right? no compromise there. nope! watch this... umm... b-brie...brie brie! rear automatic braking. so if this nissan sentra isn't gonna compromise, why should you? you're right! atta girl. the all-new nissan sentra. with more standard safety features than any other car in its class. >> reporter: welcome back to "squawk box. rick santelli here live in chicago. waiting. the most important data in my opinion the initial jobless claims 1.058 million. that is less than our last look which is 1.542,000

that got upgraded to 1.566 million. so it is the 11th week in a row that jobless claims are down on the initial and a week in arrears continuing claims, 20,544,000 so 20.544 million. and that follows 20.606 million, which was the revision that, of course, is a bit lower than the original number, which was a bit over 20,900,000. so these are still very large numbers, but we are moving in the right direction on initial and on continuing claims it is lower also but not by very much philly fed, a june number, 27.5. a positive number. in the rear-view mirror is minus 43.1 that was, of course, may the worst number is minus 57.9 in 1974. we never challenged that this is the positive number. the last positive number is

february and that was 36.7 not bad on philly. we like to see the jobs of course reverse themselves completely and see numbers like we used to get how's the response in the marketplace? well, if you look at yields, right now we're at 70 basis points about where it was, which was minus 4 basis points from yesterday but it is unchanged on the week we've closed at 70 basis points as well. many of the stories whether it was delta or the coronavirus in general, that seems to be some of the sticking points, of course, as we work our way through this week. joe? back to you. >> all right, rick thanks a lot in the rundown, steve, which i watch as i go along, i told you this is where i see it, intro liesman/data it says intro to me, liesmania and that's immediately what i saw again. see in the rundowns see how it looks like liesmania

it's appropriate the lease maininiacs are lookino see what you have to say >> it is what err would he a it we're wa confirm what we saw in the payroll data somehow the jobs market is stronger than indicated by the claims data. rick is right -- technically right, i would say, no insult to rick on this claims are down, but only by a little bit and the rate of improvement has slowed rather sharply and i'm looking here at a claims increase in arizona, and it's too soon to say if that's related to the rise in cases in arizona. i'm trying to see where else there is a rise. another rise in maryland another big jump there nevada i hope i said that right also up again.

ohio up as well. so it's a little hard to see exactly what's going on and create a pattern here. the highest numbers remain in nevada, hawaii, puerto rico, michigan, those are unemployment rates. i want to turn to look at the philly fed numbers here. rick is right. that is a big surprise that suggests maybe a manufacturing turn around faster than we thought, and that could be good news i don't have the philly fed data so i'm going to give you a pass on that and say that's good news, but i sure would like to see the claims numbers i will tell you, tomorrow i'm going to talk about a piece of data that maybe did predict the jobs number. it's this home-based stuff it has also stopped improving. as i quoted ian shepard son in the earlier hour there, forecasting was going on job markets with reopenings, some renewed closings, second

wave has become very, very difficult to understand precisely what's going on certainly on a real time basis. >> rick, do you have some comments >> reporter: joe. >> steve said you were technically correct. i wouldn't take that necessarily as an insult but you can if you want. >> reporter: technically he's not right either the rate of change is not smaller. >> i didn't want to do this. >> reporter: let's look at may 8th. 2,687,000. the next week it was 2,446,000 that's much smaller rate of change there's many weeks like that, as a matter of fact we can go back if you go to the 15th, 2.446 million. the 22nd, 2.123 million. these are smaller than the almost half a million difference between this week is no smaller this week than past weeks. >> that makes sense, steve.

>> reporter: initial claims it is, joe. rick, come on. we've got to be talking about the same thing i'm talking about the continuing -- not continuing claims, i'm talking about initial filings for jobless claims which had been coming down kind of nicely here but now it seems, 1.566 and 1.5 is not a big difference there, rick >> reporter: yeah, yeah, i'm sorry. over 400,000 and it's bigger than many other weeks. it's bigger than other weeks you're technically incorrect >> all right >> reporter: rick, you have no idea what you're talking about. >> civility -- >> reporter: the difference between last week and this week, that rate of change is not smaller than it has been in other weeks so we're actually gaining momentum, you could say from previous weeks. >> we're going to go >> i know we've got to go. joe, it was 1.8, then it was 1.56 and now it's 1.5. how that is not a slower rate of

change in anybody's book makes me a little nervous about that coming from the guy who covers the bond market. >> oh, boy we disagree without being disagreeable coming up, we're going to get react -- am i right, mack? you said nevada really well. lease maniacmaniacs. we brought jim paulsen back. we didn't talk to him very long. he got his main points in. it's a down day. then later the head of the nation's largest public pension fund talks about how she's navigating the markets there are two sides to every trade so there must be two sides to debates or else we're just sugar coating it all you're watching "squawk box" on cnbc

welcome back to "squawk box. jim paulsen, leuthold group. we can continue our conversation that was cut a little bit short last time you were on, jim i think you were making the case that earnings might actually

surprise -- or estimates might go up and do better. i don't know if we had quite an insight into the spike in cases. does that moderate your view of the improvements that we're seeing and therefore what the market does? >> well, i think, joe, that the spikes in the virus are to be expected here until we eliminate it and we get a vaccine, we're going to see that. i think the pace of the virus that's ahead of us, you know, the epicenter being china, through europe, us, we're kind of trailing their model. china continues to have three spikes as well i think we're going to get that. if you look hard enough, there's so many different places, there's always going to be a hot spot somewhere i think the odds of having an overall shutdown is very unlikely here for a host of reasons. so, you know, we may have to

shut down parts of houston or parts of arizona or whatever from here or there, but overall i think we're going to continue to have better and better economic data as more and more of the u.s. and global economy gets restarted and continues it could go faster if there's less hot spots, but i think it's not a situation where we're going to shut it down again or not. it's more of a situation of how fast we recover rather than if we recover i think the data continues and june has been really good for the most part. and suggesting a pretty big snap back i think even with hot spots that's likely to continue. >> so -- but the -- would you say that the easy 40, 45%, that's done and now we're at this point where isn't it going to be tougher from here? you've mentioned the bullishness or -- has increased a little, maybe complacency. i don't know if it's

complacency. it's hard to be complacent with what's happening in the country and around the world right now don't you -- do you see the market making sustained advances in the next three months from where it is? >> well, i think that you're absolutely right i mean, the big blastoff of this rally is behind us we're not going to sustain that pace, no way but i still think this is probably a new expansion, joe, where the unemployment rate's going to continue to slowly come down and other data come back and if it's a new expansion, it's probably a new bull market and that means we're probably early in this thing. you know, there would be no surprise at all if we have, you know, a consolidation period over the next several months that certainly could happen, but i wouldn't -- i also wouldn't be surprised if before the year is out we take a challenge on the

all-time record highs, whether that's now or whether it's in the fall or towards the end of the year i still think that the data is getting better and that means wall street is going to revise up the earnings estimate suddenly the market looks more attractive and the policy push looks more attractive from policy officials then you have $4.5 trillion sitting in money funds of dry powder as investors wait for that pullback opportunity to buy. i think there's pretty good support of this market doesn't mean we won't have pullbacks, periods of consolidation, but if you look at it as a new expansion and a new bull, then even if we have pullback or a period of consolidation, 12 months from now it will probably still be hard. >> all right, jim. we'll check back with you. one be other thing i was thinking about -- oh, so you're just going to be comfortable

with higher multiples for a while? because earnings aren't getting back where they were. >> you know, the interesting thing about that, joe, is the multiple on the s&p 500 if you look at the price to trailing it forward earning average is not that different than it was each of the last three expansions when they started. so it's about the same as it was in '92, 2002, 2009 that is they went way up and when the recovery took hold they went down. i think the same thing is happening here. >> i repeat, you must be no fun at home. that's all you ever do you're looking at past things. i don't know what the wife and kids think he's not around again. he's looking at books and numbers. >> it's hard to turn it off. >> i guess it is. >> see you later. >> thanks. when we come back, where do you look for opportunity when your fund's got a market value of $390 billion? to have such problems.

the ceo of californis lpa'caers joins us next. stay tuned, you are walk "squawk box" right here on cnbc.

coming up, jim cramer's take on the trading day then wthehas t head of the biggest pension fund in the market sees. "squawk box" coming up when the world gets complicated,

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let's get to cnbc headquarters jim cramer joins us right now. most of the time i am coming to you at this point of the day and asking what you think of some of the interviews we have done

already. this morning i want to shift, tap your big brain right now and ask you what questions you might have for your next guest, the head of calpers. >> sure. i think we have to figure out what part of the v we are on obviously we have gone there was a little bit of discussion between rick and steve about how low we have gone down 11 straight weeks of dropping claims, isn't it time to get aggressive plastic? how about cars what phil lebeau was saying, demand for cars is incredible. howe how about demand for housing when to we stop ignoring those and go into those stocks that's what i want to know. >> excellent i knew i could call on you thank you for wrapping up everything what we have been hearing and telling us what to ask next. >> thank you you are the best thank you. >> great to see you, jim we will get back to you in just a few minutes. >> as jim was mentioning, 1.5

million americans filed for unemployment benefits in the last week. more than expected this is the 14th straight week it has been more than a million. joining us is marcie frost, the ceo of california's call%, the nation's largest pension fund with a market value of $391 million. marcie, nice to have you becky was asking jim what we should ask you the big question i would ask you is did you -- in terms of the public markets did you stay in the entire time? i was under the impression at one point you might have taken risk off back in april. >> good morning, andrew, we stayed in. remained open for business, if you will we found some opportunities nine months ago and we were able to fund those deals in february and march. we continue to work with our external managers, with our

internal team to find opportunity. again, we are open. >> what is the answer to jim's question if you got to hear it in terms of how your chests and team are thinking about a recovery, v shaped or otherwise? >> i think our economists, at least the last time i spoke with the team, they are, you know, on a higher percentage. that there could be a double wave to this, i think we are seeing that in the market reaction here most recently as cases continue to spike in some areas, in some countries but the underlying cause is still there. until that root cause is resolved, we will continue to expect volatility and reactions in the market. we have to anticipate that that will continue at least through the fall or at least until a vaccine is implemented >> you are doubling down on private equity now why is that? >> private equity happens to be the one asset class in our portfolio that is expected to return at higher than our

targeted return of 7%. private equity rails a component of our asset allocation. we are currently at 8% we want to increase it to about 10%. we have strong relationships with the high performing managers private equity has certainly a wide range of returns. for us, we need to have act test the high quality i think we have been able to do that we are a little bit what i call it a penalty box for a number of years where we were not as consistent in our capital and fun raising through your gps we stopped our coinvestment program. we are reimplementing that program. if you look back in our history that shouldn't have been done. we are finding those opportunities. again, it is a relationship. it is really important that we stay connected to those gps, particularly right now

in order to get 7%, we need high quality assets, and that's private equity. >> let me ask you, typically private equity does fabulously in terms of buying when there is opportunity. when, frankly, the public equity markets are not doing as well and valuations come down if you believe in a v and believe in higher valuations, maybe in large part because of the fed and the stimulus measures taking place, doesn't that make it more challenging for private equity right now >> yeah, i think they are as selective as we are right now in looking at those opportunities we are to the getting a lot of capital calls. but we are -- as i mentioned we found a couple of deals just under a year ago more on the private credit side but done through historic private equity. but the feds were timely and they were aggressive to stabilize the markets. market valuations of companies, that's something we are going continue to watch. when we think there is an opportunity to buy, whether through a private equity manager

or whether we do that somehow internally through some of our factor weighted strategies we are peased to take action when we need to we will be patient we are long term investors we are not market timers and we will be thoughtful how we deploy the capital. >> policy question for you when it comes to your constituents, which are teachers there are a number of older teachers basically on the verge of retirement who may not be a i believe to work next fall. have you had conversations about that. >> that ---le teachers are on a different system but i don't think our challenges over when our active employees will be retiring i am a strong supporter of they plans as it relates to retirement security. these are guaranteed benefits. we are seeing a number of our almost 2 million members

actively engaged trying to plan their retirement some of them are certainly of appropriate age, have the service credits and some have questions whether their benefit are safe we are roughly 0% funded that causes some stress for our 2 million members whether the benefits will be there throughout their lifetime. >> marcie, you know, you and i have had lots of conversations about esg over the years last time i asked you whether esg was more important or less now in this environment especially when you have businesses that are going to be genuinely challenges, companies who were trying to put money aside for different efforts. how do you think about that in this context today >> esg is not just about divestments. i think it has been defined that

way a little too often for calpers and other institutional investors. it is a risk frame and perhaps portfolio integration. when you have the return hurdle you have to be careful about integration. we are long term investors nowhere to hide. we are universal openers of approximately 10,000 companies we watch the long side of the portfolio. we are concerned about climate even if there is sensitivity to calling it climate change. let's call it extreme weather patterns for us it is a risk framework. we need to understand the risk that our capital is taking on through the long term. that's through engage men. about transparency and data, so we can make decisions whether the companies are managing their risks appropriately and whether we should be continuing to invest in those companies. >> we always use delta as an example. right prior to the pandemic they pledged to spend $1 billion over

ten years. $100 million a year effectively buying carbon offsets. in this environment, what would you tell the boards and the companies also trying to think about their employees and the like >> human capital is one of the supply chains identified through this pandemic. they have disparate -- there are disruptions. they need to keep the company in the survival mode. we need to focus on the long term, howe do we get back on track once we return to some sort of normalcy and the balance sheets come back into an improved stage we understand the financial implications of this pandemic and as it relates to these companies. we will be patient but we want to understand this hear the thinking about the long term and not just the short-term. >> okay.

marcie, it is great to talk to you. hope to have you back soon appreciate you joining us this morning. let's take a final check on markets. we are looking at some red across the board before we toss it to our friends at "squawk on the street" right now. dow off 170 points we were in the green before. s&p 500 of a 14 points nasdaq off about 3 points. make sure you join us 'em to "squawk on the street" begins right now. and welcome to "squawk on the street." i'm jim faber. along with jim cramer. carl quintanilla has the morning off. we begin trading a half hour from now as andrew just mentioned we are looking at what would be a lower open a half hour from now. futures losing steam is the way we are talking about it. this after of course a number of strong days in the