to talk about all of it. thank you for being here >> all right, guys, happy friday, welcome to "squawk alley. market not having a very good friday as the focus once again is on case counts out of texas and florida. 6426 in texas, a new record. harris county going to declare a top level emergency. the governor there closing bars effective today. all dow components are red we're going to watch this 200 day moving average >> we certainly are and i'm watching two of the biggest stocks that we talk about, apple and micro sofsoft and part of the reason is their strategies seem to be die

vergiverg diverging in a different way retail is an important part of apple strategy overall, but what you're saying about the markets being down in the midst of the pandemic, it is not easing off as quickly as some had hopes, carl >> indeed, one last part of all of this the journal now with a couple headlines on the tape saying that china is telling the united states that crossing red lines could put the trade deal at risk. so sort of a continuation of what we're talking about all week trade risk when it comes to the u.s. and china which is not a

new story at all >> let's talk about the markets, the founder and managing partner at full cycle. which is really focused on, ibrihim, and restoring technologies and all of that is coming to light, it is not just about whether or not people should be moving around, but whether or not people can how can this pandemic, working from home, which i think fits into your portfolio thesis, how is this playing out for you and where do you think it goes from here >> thank you for your question a lot of investors like myself that grew up in the information age and have been seeing aligning investments are waiting

for the day for that trend to take hold. and i think this pandemic and this global crisis has really cemented that theses we are heartenned that it is tragic that people are now understanding that their dollars make a difference. and they create the world that we live in and we need to be very responsible for where we direct our capital >> open up the aperature for us if you can we're looking at broader markets that are fluctuating day today i think there is probably an underlying thesis or several that investors could be thinking about and how to value different technologies, how to value different business models in this kind of environment so even if you're looking at public companies right now, what do you think investors should

keep in monday beyond the day today flexit todt to day flux indicatictuatioflucs >> technology is redesigning our cities now i'm very bullish, for example, on the home improvement market so many of us are going to be working out of our home and we're going to want to improve the space that we're spending all of the time in surprisingl surprisingly, i'm bullish on autonomous electric vehicles taking over. i'm bullish on the ride sharing companies because we don't want to spend time in a small closed quarters with another human being right now. technology is going to have to -- the robotics will have to accelerate and we will have to move as fast as we can >> what does that mean

i was under the understanding that you had holdings in lyft and uber, tesla, so what are you doing with those investments when you say you're bearish? >> well, i'm divested out of lyft and uber because there is a period of time when the earnings will be hit drastically as they try to diversify to food delivery and other types of revenues there is a trend of unfortunately a trend of spending time in a close quarter with another human being is less needed as you can tell here we are on an internet connection and a camera and we don't need their services as much and we're not willing to take the risks being in those close quarters and i'm bullish on all car companies i think more people will go back

for a certain amount of time to private car ownership where that trend was exiting the human story but we will be back to it for a while. >> at what point will that need collide with strained household budgets. homes that are make unemployed they can go to the hertz or auctions and buy one, there is a glut, the travel industry has been hit and they're going to try to find capital. >> does that mean that you're net bearish ona medical

solution to this in the near term i ask this because there is a downgrade of boeing today where they say look, air travel in the long term will depend on a medical solution and we think it is further out than consensus. >> yeah, it will take longer, i read a report about how long it takes. this will not happen overnight you're talking about billions and billions of doses. there is a slew of people that will wait as long as possible because they're worried about a vaccine entering the market. does it have a side effect that i'm not willing to expose myself and my family to there is a lot of issues set aside the pandemic, every corporation knows that we can

conduct work efficiently and effectively. we can conduct 70% of the transaction from our home office and then maybe jump on a plane to complete the last 30% in the past it would be reversed we would have -- 30% of the way there and 70% would be conducted in person. >> that brings me to a disconnect, micro sosoft saying they're goes to close down their retail stores. we have been in an experience economy. talking about products that bond hardware and software services that people need to get their hands on to really understand. so what happens here do we shut down physical locations and experience locations and they never come back or is this temporary and things swing the other way?

what wins out? >> i think companies are going to experiment. nike was down 51 cents a share and they were expecting a seven cent a share profit. if you look at their online sales they have grown 75%. they're expecting 51% of their sales to be from their online store next year. i think it is a matter of more and moreof us getting used to being able to transact online without having to physically go somewhere and they're making the returns quick, the experience seamless i think this trend is here to stay >> we'll see what the implications are for apple then.

ibri ibrihim of full cycle, thank you for being here verizon is pulling ads, adding to the ad boycott stocks down 6%, almost touched the 50 day for the first time since april. >> really remarkable, cheryarl. they are joining a boycot to demand that facebook stop hate for profit they are calling on the social media giant to take greater steps to remove hate speech. they say we have strict contact policies at stake. we are pausing our advertising until facebook can create a solution that makes us comfortable and is county with what we have done with youtube and other partners rei, ben and jerry's, and patagonia have pledged to stop

they have paused their spending indefinitely now verizon is the biggest spender of the protesting brands spending two million on facebook and instagram in the past month. facebook's advertising chief telling us in a statement "we respect any brand's decision and remain focused on the important work of removing hate speech and providing critical voting information" now they did push back at the boycott more we do not make policy changes tied to revenue pressure now in that e-mail, they really tried to focus on facebook's process. around pulling down offensive progress and to get better at

that to remindti tizadvertisersy have been working on that for years. >> that interesting message to me, i was concerned about the longer pause a lot of companies looking to cut back markets spend anyway. how much of that factors into this how strict is verizon being about the kinds of changes they want to see before they jump back in and how long do you think this will really last for verizon? >> i think it is really interesting. all of these other brands, yes, this is probably a time they want to cut costs anyway this is a brand that could have

a big financial impact they're one of the biggest of those advertisers. we heard from proctor and gamble they're having talks with facebook facebook is talking to all of their biggest advertisers really trying to make sure they understand this is not something they're only thinking about now. they have been working on it for years, but facebook doesn't want to just bow to pressure, th they want to show they're really working on this. >> fascinating, julia. we'll talk to you later on, watching facebook today. in a tough take, we should had the dow session was down 633 by covid risk as we get numbers out of texas and florida this morng eay fus inclrlinoc ♪ we hope you find these digital solutions helpful to bank from almost anywhere. deposit a check with your phone or tablet.

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apple with it's online presence and support it would flu result in a $450 million charge. josh, you were talking about this this morning. this is a huge deal, i think, for a number of reasons. apple opened up stores 15 plus years ago. just over ten years ago. around the time that windows 7

was coming out and they want d people to get their hands on the touch operating system it's unclear what they do with. >> wendy: that employee grow, but a sign of the times. >> the street is starting to weigh in, they're saying it is was the right time to rip off the band-aid he thinks that most investors will welcome the announcement. it is dwarfed by some rivals like apple apple has more than 270 here in the united states. more than 500 hear in the world, but you give people a chance to

come in and test drive some hartware i caught up with patrick moorehead, too, he thought that strategically to him that the decision made a lot of sense they thought that the digital storefronts reaches more than 1.2 billion people every month in 190 markets >> yeah, but there is on so much that you can do online they're supposed to be launching a a series x -- i feel like if a stock is doing well, an analyst

will agree with whatever the company is doing, but i think they're leaving wide open white state for apple here from their transition to their own chips. if they think it makes so much ens, why are they not dinging apple for staying in i bet they're not doing it i want to sigh a consistent argument >> on the other hand i could see where you know, surely there would be other places that microsoft fans could go try out hardware i imagine to your point a lot of excitement about that new xbox console coming later this year i think that folks that want to try that out would be able to go to a place like best buy to give that a spin. and i do think another cay is do you think is signals another

shift. he doesn't see that from this announcement he said they continue to press on for xbox and with the software too with the family orients teaed teams products. >> carl, i want to see a consistent retail argument from these analysts if all of a sudden they think retail locations are not so important, i want to see them dinging apple for staying in just be consistent i think they still have their promise and their value, but we'll see. >> for sure, that is a good point. in the meantime the covid numbers out of florida are part of the focus today 8492 smashes the record from a few days ago we're joined by the ceo of whitman family dropment.

it is good to have you back, thank you for the time today >> good morning. thank you for having me. >> so the numbers are not good, obviously. we don't get hospitalization data the way we do from some states hosty palty came down a touch. that makes the number less dramatic than you might think. what is the mood in floord right now? >> florida is you name for a number of reasons. the sun, the requirement, the humidity, we found that our customers are really enjoying being inside they're enjoining dining together, i think everybody is watching closely the spike in

cases. we're concerned about the availability of hospital beds. i have a lot of faith and confidence in them >> you said that curb side has been incredibly helpful, is there a sense that that will have to be a longer term solution than we thought >> well, i'm not sure if curb side itself is the answer. when challenges present themselves, you have to look through them to find opportunity. i have been very proud of our broader team, our tenants in particular, our restaurant business, for example, was

constrain constrained. the restaurants have been across the country. and we were able to expand through the outdoor environment. i'm pleased to say that most of our restaurants are reporting numbers in 2020 despite the restrictions that are on par with last year so i think that this has been more than just an interruption i think it has been a disruption, but as you said, d physical retail is here to stay, so is online retail, and i think they have a way to marry now matthew, i wonder if you think the messaging has been consistent because it seems to me a couple weeks ago, a month ago, that

there was a narrative that people will be outside and it will be fine the numbers that we're seeing now, infection rating, and againing to see hospitalizations suggest that maybe it will not be fine. are people prepared based on what the message was two to four weeks ago so businesses can continue >> good morning, you ask about public health officials broadly and we're all inundated with the public health officials. i think in the state of florida, as i mentioned earlier, our local emergency managers have been in lock step with the county and i think the county has coordinated well with the state and the state has done

well to coordinate with the federal government i think in florida we have had a consistent message and i think what we're doing in bell harbor shops and the responsible businesses and what they're doing. we all felt firsthand what it feels like to be lockeddown. no one wants to do that again so i'm a libertarian leaning person myself i would rather not be told that i have to wear a mask. i just volunteer to do it because the research shows that's what you do to keep people safe. we hired a house keeping brigade that is a team of professionals that spends all day cleaning high touch surfaces and sanitizing all of our employees are temperature screened masks are required inside. we hand them out to all of our customers.

i think those fundamentals are what will keep us, if everyone participates, from having to take a back step to face the types of closures that we saw many march >> interesting it is a good take. florida is now suspending on premise alcohol consumption. thank you for being with us. >> thank you, be well. still to come, albertsons going public today a big show, still ahead, stay with us. derek, seems like your team is operating just fine remotely.

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good morning, glasgow police say they have shot and killed a suspect. crews with the seattle dot left the capital hill organized protest zone one protestor lay in the street toe present a bulldoeser from

moving forward kanye west is clap raollabog with the gap it will be sold in it's stores and online starting next year. that is our cnbc news update for that is our cnbc news update for this hour, we'll be right backee in just 48 hours... to the university moving hundreds of apps quickly to the cloud... or t. city government going digital to keep critical services running. you are creating the future-- on the fly. and we are helping you do it. vmware. realize what's possible.

it is the bottom of the hour here it is translating to more than 560 points on the dow. joining me now is ang la miller. good morning >> good morning, carl. >> great to see you. this is john i want to know how you think about navigating a market like this to openings and closings

and the pandemic i know you're not so much a day tod to day trader person, but what does this mean and what are you doing to get your portfolio balanced >> anything that really threatens this v-shaped recovery will cause more volatility i think we have been looking for this type of correction for two to three years, being long term investors we're very disciplines and cautious we have increased our active management over the last two or three years. we have positioned and transitioned our portfolio we are generating strategies

we have also added small cap growth to the portfolio. in our private equity portfolio, we have tried to decrease some costs and we have increased exposure to women owned and minority owned firms all of this is really to, you know, identify the gaps in the portfolio and shore it up. it is an on-going methodical prosenior citizen whepr process. we're trying to increase the complexity of the portfolio. >> albertsons has opened up, but i believe that opening trade is below at 15.67 we're going to talk to the ceo

later on for what is the largest ipo of the year. >> yeah, looking forward to that, they have the safeway brand as well. angela, how important is the ipo market just as part of the mix here when you look at how the market gives a reception to the stock market does it tell you anything about sentiment? >> we were of the mind-set that more publics were going private and stocks are starting to increase so you know it does lend to it being a more robust muarket for us to see more ipos, and that attributes to the equities that we're investing in right now >> you mentioned the way you

have taken an active stance in who is helping you with investment decisions how have you done that and what is the impact. >> we have increased our private equity we are just about 60% we're traying away for more passive management and we have consultants helping us to form those cases and to do that work. we have a staff of nine that are around each asset class. >> and you're in diverse firms as well. important to note. thank you for being with us.

>> thank you >> thank you >> in a tough take this morning, john, gap continues to hold on to a near 30% gain as they sign this multiyear agreement with kanye west to design clothes for the retailer getting you back to the levels we saw in june in the meantime we're back in a moment.

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we made some lip changes, you're right some people don't work there any more, i started with all white men and a couple women in there not part of the permanent leadership team. now my -- our leadership team is 50% women and 47% people of color. it was around vision, tf fsz

about inclusion. our workplace promise is that everybody matters and everyone belongs. >> that was cynthia marshall with me yesterday. discussing leadership changes and the turn around that she was working on we alsoed about e sports and the mavericks and the way they're looking to connect with fans in this crisis. we'll be right back with the ceo of albertsons. don't go away. ♪ ♪ yeah ♪ ♪ y-yeah ♪ ♪ yeah ♪ hey, hey to save on auto insurance. there's lots of ways really? yeah. very proud of that. with smartride® from nationwide, they can get discounts for safe driving. does she get one? mrs. carmichael?

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let's get to the headquarters group in chicago, with the santelli exchange, rick >> thanks, i would like to welcome jerome schneider, i wish we were in the pits in chicago, but welcome. let's get right into it. i look at a six month at six basis points 18 and 30 basis points respectively right now how does one invest in short-term securities and make some money exactly. low rates for the here seeable future it is really a secular

phenomenon you see it is really flat but at the same time when you look at it, a higher savings rate than usual. and we saw a savings rate come out of 20% and even though it is probably coming down on the foreseeable future, it is still real stevely elevated and we have to make something of these low rates. and taking steps out, that means that investors have to look to invest beyond the money markets, the t bills, and look to high kwaultt quality assets, and there are great opportunities out there. >> and why don't you give us a quick idea of how we can diversify, of course, maybe out of equities, and i'm not saying

that they're not going to be forging ahead, but what is on the other side of the portfolio to keep me in the game and not force me to lock in money market rates. >> the high savings rate mean that people are born defensive when you look at the portfolio construct, it means that people want more volatility that means they have taken that volatility out of their marketplace. investors should ride on the back of the federal reserve and look to the front end segments of the market. to diverse if i high quality markets. they're being sponsored by these facilities for the fed and in doing so they can find yields of 1% or 2% for relatively short interest rate exposure and taking minimal credit and structure exposure it is one where liquidity was

the focus. so defensive, high end quality, taking steps to short-term strategies is the long way to go to give investors optionalty for the future, to invest their capital, and to sit on the sidelines while managing liquidity. >> i think this is a topic that we can get into. i only have a minute and a half, but yesterday, every thursday, we learn what the fed's balance sheet has done it is so large when you think about it it, but it was smaller than it was the previous week. they said only about 100 billion of the 2.6 trillion of fire power has been used. can you weigh in on that and the notion that you like corporates, the federal reserve will sponsor an underpinned corporates and they have a lot of fire power

left >> yeah, this is focused on liquidity. what i think we need to focus on is protecting capital and understanding that this market process is going to move from one of liquidity, which the fed has been focused on, to really one of solvency and concern about earnings so even though the fed's involved, we have to be defensive for our portfolios for our clients, and our investors need to take that more defensive posture while we continue to evaluate the economic scenarios to come. but it is really only a small amount that means their commitment -- >> we'll have to laeave it ther, drew i always like listening to your opinions of course well have you back i would like to have you back after the next fed meet sing tow can ponder what lies ahead

>> thanks, let's get back to phil labeau. >> let's look at shares of boeing one reason this stock has moved higher reports that the company is likely to do the 737 max recertification flight next week we have reported and others have we port reported they targeted doing it at the end of june i reached out to multiple sources. you get two stories, the official word, the unofficial word is that yeah, we look like here in position to do that. i think we will get word later this afternoon or later in the morning. again. this is what they have been targeting, they have all of the work done in order for it to take place if is a test pilot.

united, the airline announcing that from san francisco, via seoul, south korea united and delta have resumed flights to china >> phil with all of the airline news today when we come back, albertsons, 're biggest ipo of the year. wee back in a moment a grandfather of 14.

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biggest ipo of the year, albertson's climbs to 16.30. stocks going to trade under aci and joins us this morning. congratulations. >> thank you so much thanks for having me on. >> what a remarkable moment for albertsons and for grocery at large. i wonder if you can talk about broadly what comps have been like in this covid era and to what degree that was marketed or priced in and the offering and the road show. >> it's a proud day for albertson's over all it's a long story. a story of courage and conviction to put this company together over many years and have a lot of patience you're right we have seen a significant step up in demand especially for groceries. we're eating more at home.

fresh matters. fresh matters that much more we have seen a great lift from that because that's ha we prides ourselves in i think that's an important factor to consider it was part of the consideration as we went into this >> what do we make of the talk the number of shares should have been higher or we should have opened closer to what the original thought pricing would be you would think the tape would be receptive to name like this in that's right. it's so hard to predict what's happen ing in the market anymor. in the middle of a pandemic, we were able to ipo the company we're just proud i think it was a great accomplishment it's the long term that matters.

we are delighted to have so many investors with us. >> good morning. it's john. i know you have drive up and go curb side pick up. you have home delivery exactly how much do you think grocery habits are changing. are you going to have to accelerate those efforts how much of your investment over the next couple of years will go there. >> it's an pareimportant part ou agenda we believe in that we have got many different folks for our customers. it's going to grow it will be an important part of our growth story customers want it. store still matters. a lot of customers shop stores and you the delivery it's the combination that makes it really powerful we're betting on that. >> do you have to change store

lay outs how much of that do you expect to be a competitive advantage? how quickly can you do it? >> great question. the demand for delivery solutions went up significantly. a step change. there's some changes to the store. it's not as much as you would think. you still have the great product especially the fresh product we're working on new models. we're continuing to experiment while growing it >> yeah, i think that's one thing investors should know about the space if they don't already. it's very fluid. business models are fluid. ownership structures are fluid i remember the talk was you were

going to go after whole foods when it was still public what's your mood for acquisition. very good at it. very good at creating value. right now we're focused on creating more value through the assets we have we have a great set of assets. we have plenty of head room there. we're always eyes open when the right opportunities come by, we'll do it >> you came from pepsi you know the space well. for an industry that has famously thin margin and now you pile on all of these safety concerns and the cleaning aspect of the store operation, what does that do to margins over the long term and maybe it gets better because of pricing and demand >> yeah, i think your instincts are right.

this is a game about market share. when you have most scale and a better strategy and execution, you gain market share. more dollars coming through the store footprint creates a more profit engine. that's how we think about it customers will continue to look for different ways to being served we have always done it over time, all those margin things will stabilize like they always have in this industry >> your s1 says you have home delivery services across 2,000 of your stores which looks like around 90% i don't know how full a range is of what you're delivering whether it's the prepared stuff or the grocery and all those

locations as well. i wonder to what degree do you expect to rely on third parties, more for delivery going forward. how much do you expect to invest more in kind of owning that delivery experience to the extent you use home delivery >> you know what, we find there's a segment of customers who want an albertson's badge associate. they want to see an albertson's by tom thumb in dallas it's one of our branded trucks. what do they prefer and we continue to give them those choices? it's not clear how the mix will change over time i think it will. we also have another part of our

business which is growing rapidly which is where you drive up to store. we have great locations. >> when and if that comes, food at home is going to moderate i don't think there's any doubt about that does the industry have plan for the day that happens >> yeah. customers are going back to what was tradition years ago. eating family meal at home baking cookies we can't keep enough flour in store. there's more food preparation. i think people are finding new habits people are working from home imagine the breakfast and the lunches. they were all eating on the go they are being eaten at home i don't know how quickly work from home will change. that may be here for much longer

than we all imagined you're right we all find something to prevent the transmission of covid, i think you'll find the habits continue to driver volumes for us we're doing a lot of different things to keep the customer and give them choices at our stores that they are missing at restaurants. >> thank you for the time. we'll watch it >> thank you let's get to the judge and the half >> thank you so much the reopening reality. stocks were getting back to business what does it say about where your money will work best many the months ahead what now even as he wonders how long stocks is march