good morning, covid cases surging in several states. now texas, florida, and california are reimposing restrictions to try to stop the spread of the virus. and stocks pointing to surprisingly solid gains after friday's sell off kind of confounding all the headlines and what you're seeing in most of the major newspapers this morning up almost 200 points and boeing shares rising and the ground at 737 max could begin today. it's monday, june 29th, 2020 a four day week. squawk box begins for shortened days and they are getting shorter. walk box begins right now.

good morning, everybody. welcome to squawk box here on cnbc but this comes after a backdrop of a pretty big decline on friday on friday the dow was down by 700 points and this morning it's up by 200 points you have the s&p up by close to 20 points and the nasdaq up by 26 but we are getting to the end of the month and that's when we start to take notice of what has been happening with declines that we saw on friday push the dow and s&p 500 into negative territory for the month of june. if they want to make that up they have two trading sessions left before we get to july so over the next two days the dow would have to make up 1.5% if it wants to be positive for the month of june.

s&p would be up 1.2% it's up by 2.8%. let's take a look at what has been happening with the treasury market the treasury yield the ten year is the one that we always pay the most attention to it seems to be yielding .645%. and i think he is going to have interesting things to say too in terms of trying to put it in perspective because if all you head were the headlines you would be scared to death and ready to bury your head in the

sand i'm not sure that the economy, i'm not sure that that's going to be what happens. >> i will say that there was some eye opening stuff that happened over the weekend. not just in terms of the cases but hearing on friday the state of new jersey what their plans are for school in the fall it was the first time i really thought wow, it's not going to look like normal in the fall again too. it's going to be a totally different kind of school year. we'll have to take this seriously for awhile that's not to say that the kids won't go back to school but it's going to be different. >> we have to try to manage this for six month in his view. that's a total hypothetical. that's counting on clinical trials and counting on -- i mean, you saw the news in china that they're already getting a vaccine that they think might work there's a lot of hope but once again, the future is crazy and

they just i was actually talking yesterday because i was anticipating the open because it was such a week last week in terms of what happened with the cases. and the market was down 3.5% or whatever and i was trying to figure out whether the futures would be higher or lower today by all of that and given what had happened and all the news and the incremental news that we saw but then i thought, do you know what, i'm not sure what needs a reality check. i'm not sure if the market needs a reality check or whether the coverage of covid and the hyperbolic coverage needs a reality check. i don't know but i thought we would be up this morning i talked it over for awhile and there's no reason to be up so again the knee jerk reaction of what is happening behind the scenes.

they're not thinking about lives as we all know 12 months from now and you believe the six month calculation that he was making that might make sense and at the same time, if you think that the headlines, i wouldn't contend they're hyperbolic but if you keep giving the fact that we have more hospitalizations and potentially and i think that we don't know what the next ten days are going to look like in terms of death or not. >> much lower death rates. and hopefully they will be a lot lower.

and then he thinks a third of the country or more won't take the vaccine. so theidea of herd immunity an the idea that this vaccine is going to be this game changing situation, it may be for certain people and we can hope but it does extend out the time line for what this locks like. >> we can also talk about whether it's herd immunity and whether they atenuate and we'll get a jobs number on thursday after that surprising number that we got on the last job number which should give us sort of a -- not a snapshot but a backwards look at how much the economy is reopening i can just tell you that there's a lot of people around and maybe that is bad. maybe everybody has cabin fever and everybody is coming out now

and maybe that adds to the new cases. jersey is still doing great. a lot of states this is the first ave. and i am sure that he will be sober and realistic about things. >> he joins us right now his latest wall street journal is titled reinvent health care he is a former commissioner and cnbc contributor and serves on the board of alumina and pfizer. it's good to see you this morning. >> thanks. >> what do you think about the conversation that we're having this morning how do you come down on this >> well, i think that the concern about what is going on in the south and the southeast right now is its pretty far along.

>> it's pretty persuasive. that's the concern we'll know we'll see soon what happens this week but it does appear that there's a lot of infection down there. during the first wave of infection and that won't stay that way eventually it will start to seep into all the more vulnerable people and even if the death rate has come down the total number of deaths will come up and we'll get above 1,000 deaths a day above average as the infection starts to widen out. that's the concern and the cases are accelerating pretty quickly.

it's going to be hard. a lot are probably going to balk at that right now. >> you saw texas and florida the governors there resistant to rolling back the openings that they have done but now the governor of texas has closed the bars, is closing bars. you've seen the same thing in seven counts ies in california. in florida they're closing the beaches for the fourth of july it may be late but is it enough at this point? you talk to people and the

doctors down in florida and the houston region, people can't get tested again it sounds like a new york type situation unfolding down in there so it's going to be difficult to get control of it at this point. so at the end of the day we talk about the vaccine. we will have a vaccine in 2021 there's a lot of progress on that publicly reported but right now the doubling time is every 40 days and it's going to come down by the time we get to the end of this year probably close to half of the population will have had coronavirus so we don't need to vaccinate the entire population.

and it's the rate that you imagine something like this would be early on. talked about a couple of other efforts not related to covid that finally got up there to in the 90s but early on you'll be much lower and also his expectations that at least in the initial stages much of the country won't actually take the vaccine. and you still get infected with covid. we won't need more than 40% of the vaccination to get vaccinated for the covid disease. only 40% of people take the flu

vaccine every year we have people that already had coronavirus. so we won't need to vaccinate8 or 90% of the population or 60% of the population. only 30% of the population because a lot of people will have had it. probably 7% had it already right now. we continue on our current rate of 15% will have it by the end of the summer if we just continue where we are right now. we get into all the outbreaks in the south. so we will slowly burn our way toward herd immunity as we get into the fall and the winter the challenge is going to be the fall when flu starts circulating and people have the flu and then you're testing for covid for people that have the flu as well it's going to exhaust our systems and we're going to have a difficult fall that's why it's very important to get vaccinated for the flu early so we can cut flu incidents and have more sensitivity on covid going into the fall

>> there's nothing that is very clear about what the backstop is i don't understand what they're doing or what they're willing to do that's really going to dramatically cut the level of spread that they're having so they take something close to this level of spread into august and they really -- school districts need to make the decisions in august. i think local districts acting independently are going to be hard pressed to open the schools. so that's the challenge that they face. that's what they should be thinking about it's not just a matter of keeping the bars and the restaurants and tattoo parlors open it's a question of trying to get the infection rate down so they can open the schools that is a gating factor to getting back to a healthy economy. trying to get children back to schools. they need to be focused on that as a policy action they have to take. >> i was at the beach this weekend. i didn't see a single person

wearing a mask and there were a lot of people there. what makes you think that we're going to be at this same level of -- in the northeast the same level of case load when you have the businesses that are just reopening >> it took weeks and weeks to build into the kinds of case loads that they are seeing right now. we're going to have the same thing here eventually we're going to have a change of transmission that billed into broader outbreaks in the northeast. we have better testing and tracking and that's going to put

down a pressure on it and we have a population that is generally taking more precautions so that's going to put downward pressure on it. but eventually cases will build here we'll have to put out the change of transmission but as we get into the fall and the winter and flu season is going to get much more difficult but this takes a long time to build. this doesn't happen in a couple of weeks what is happening in those states down there. so a month or more to build into the kind of infection rates that they're seeing right now >> your op-ed today addresses what you think the health care system needs to be doing differently to deal with this over the next six months or longer the most important things that you layout are that some of these non-essential surgeries do need to get put off. >> texas hospitals are the best illustration of that they went back to almost a full volume of elective procedures.

they stopped doing telehealth and if you look at parts of texas it's very easy to get a covid test for preop or elective surgery. but you can't get it with long late lines and long delays on turn around so i think when they do rebound and we get these infection rates down we need to practice medicine differently at least while we're in this pandemic phase we need to do more tell healehe and be more circumspect about procedures and that's hard to do because it's a big financial hit so we need to think about different ways to pay hospitals during this period so they get paid, for example, for covid management and get paid for maintaining extra capacity certain elective procedures are important and we need to make sure that they're available to patients and there's pent up demand for certain procedures. patients were waiting for hips and knee replacements that they were badly in need of so things had to get done but we went right back to business as usual.

practicing medicine the same old way and that put a lot of pressure on the health care system down there in texas and exacerbated the system to the point where they had to just spend all elective procedures that obviously hurts everyone equality . >> thank you it's great talking to you this morning and again, every morning we have a new list of questions for you. thanks for being here. >> thanksa lot >> all right coming up, one of the reasons the dow is up triple digits is because of boeing. boeing shares are higher today up 6 points or so so that is maybe a third of the dow's gains. word that certification flights for the ground at 737 max could begin today. details next futures right now are up 150 on the dow and similar percentage gains. not quite as much on the nasdaq this morning only up three. we're currently back the best tv experience just got better

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keep in mind, phil is going to join us in the next hour with a closer look at what the flight tests will entail and how soon the grounded planes could return to service >> thanks. chesapeake energy filed for bankruptcy yesterday they had drilling rights to nearly 15 million acres. that's roughly the size of west virginia but the company was slower than competitors at pivoting from natural gas that proved to be far more lucrative than gas. it was a company with a market cap of about $40 billion at its height that's very likely going to go to zero. it listed assets of $16.2 billion and then liabilities up $11.8 billion in the next hour we'll talk about some struggling with low energy prices. it's the very deep balance

sheets safe in this and there's been a lot of companies in this arena that filed for bankruptcy already this year. promising to have discussions internally and with media companies to stop the spread of hate speech. the company will continue to post on social media without paid promotions. starbucks now joining a growing movement of companies halting add spending on social media platforms including coke, unilever a little bit later we'll tell you that we have a conversation with the head of the anti defamation league that put this front and center we had this last week and you'll see what they have done for the last month and we'll see the impact that has on facebook and their policies >> when we come back, a lot more important tests happen tonight details on millions of dollars

of masterpieces that are up for sale we'll talk about it after the break. plus a look at the s&p 500

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can i get it $100,000 maybe not. >> not here but there are great pieces now you talk about industries that have been radically transformed by this crisis sotheby's held over 100 online auctions since march that is a total of $200 million. that is ten times the total last year and it will be tonight that's the virtual live auction totaling more than $250 million. now the auctioneer will be in london with video screens

showing his colleagues in new york and hong kong those colleagues will be taking phone bids from buyers around the world so there will not be bidders physically in the room and they'll also take bids online all eyes will be on this and that is estimated to sell for $60 million. now they also have a rare painting estimated at up to 35 million and that is estimated up to $30 million. >> any time that you do anything for the first time there's always a degree of stepping into the unknown. that said, so much in previous auctions was already happening over the phone and online and i don't view this technologically as a huge leap >> now they have more than 80

online sales for the rest of the year and the big one is in july. and this is a big step into the unknown. they'll look to see whether the future of this business is tless is big events in the auction room and more online. >> number one, that looked nothing like clifford the big red dog. that was horrible. i guess it was an abtract. you know, francis bacon had it from a couple of years ago or whatever they're called and it was a gauge of sentiment a couple of years agatha you covered. wasn't that a francis bacon too as i recall? >> great memory. so elaine wynn bought the last one to come up to market for $140 million that was back in 2013.

so this is also a great piece estimated at 60 and could go higher you're right that was a huge record breaker at the time. over $130 million. >> so robert, i think this is interesting because people that have a lot of money, their stock portfolios are not that bad off. so i'm wondering whether valuations, if there was a price to earnings multiple or whether uncertainty and fear for the future could be more of a draw back for something as intangible as art so this is an important thing. >> no, you're right but all the prices have changed during covid and tonight we haven't had big

price discovery at the top of the market until tonight so yes they still have the money but it's a question of what they're willing to pay for some of these guys. these are good assets that can hold value over a long period of time. >> do they buy a piece of art or buy an island and set up their own little fortress where they can wait out the pandemic. i don't know it's different it's different than just financial assets it goes out on the risk curve each further >> let's do three. did he do that a lot >> triple the price. >> i don't think i had too many art classes in college or grad school anyway, thank you robert frank we appreciate it. >> thank you. >> clifford with a y by the way.

>> it was not the big red dog. it's the way it was in the prompter. >> when we come back stocks are pointing to gains after friday's sell off we'll talk strategy next and later we'll talk to mark, the ceo of houston methodist hospital about the surge of cases in texas and the restrictions that were added on friday squawk box will be right back. you're first. first to respond. first to put others' lives before your own. and in an emergency, you need a network that puts you first. that connects you to technology to each other and to other agencies. built with and for first responders. firstnet.

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good morning, welcome back to squawk box. take a look at u.s. equity futures on this monday morning we're in the green in fact, the dow looks like it would open 152 points higher and largely on the back of news from boeing we'll talk about that in a minute joining us right now to talk strategy is john trainer the cio at people's united advisory. also ellen the portfolio manager at flputman. good morning to you. we have been trying to make sense of the market and trying to look at the headlines on one end around covid and where the markets seem to be opening this morning and trying to figure out why and where you think it goes from here. john what is your take? >> what we wrestled with is one thing. are we looking at a late cycle

market or the beginning of a new early cycle and we consistently said we don't see the economy getting strong enough and we're going to stay with the late cycle portfolio. and asset allocation and fixed income we'll stick with that until we see something different. an acceleration that tells us we should be adding data to the portfolio. >> so just so we understand, your version of what a late cycle portfolio is supposed to look like includes what? and not making a big bet on emerging markets and a bias toward dividend growers.

we're trying to maintain the equity component on our portfolios >> are you in the same place >> thanks, andrew. right now we think that the market is vulnerable and we all know that changes rarely occurs flaw leslie. so we think about the market in three different time frames. the first one i could call vulnerable and the markets are going to remain vulnerable so during that time you want to own exactly what john said

high quality, cash generating growth companies there's always some special situations that will do well in this market. but over the medium term, there will be a time to pivot to small cap cyclical value companies and we call that rotation. and during that time we want to earn financials and materials and the cyclicals and we want to wait until the health outlines stabilize and then finally the third phase that we're looking at is inflation. a couple of three years from now we're fully expected to see inflation in the market. due to the very large monetary and fiscal stimulus. but it's also because they have been very targeted toward main street consumers and small businesses who are actually spending this

and unlike 2008 you're not going to see offsetting bank deleveraging like you did then and the star riffs and the surveillance plien chain et cetera so once we enter the inflation stage which is a couple of years from now, you're going to want to own companies so i agree. right now the market is vulnerable so we want to own cash generating companies and at some point it will be time for rotation and after that inflation. >> hey, john, let me just pick up on one of the things to the degree that you believe the market is vulnerable, i was talking to an investor friday morning right after squawk had ended that said look, if the covid cases actually increase and it gets particularly bad and we can debate how gbadyu looks

you're going to be fighting the government all over again because he says that the government will at least try, you would imagine, to come to the rescue and more fiscal measures and more monetary measures >> he's out there telling people that he's price insensitive. he's going to be out there buying assets to support the economy and also support financial markets and then you have our politicians and we can debate, you know, whether you like what they're doing or you don't like what they're doing before they come in and in july you'll see the end of the support that we have we think that there will be

something on the other side of that and you have the government. both the fiscal and the monetary out there saying that we are going to put a floor under the economy and under the market that's tough to move against so yes you could see some bad news on the coronavirus but we think the fed is going to be there and support investors and that's what is so different and so hard to analyze about this particular cycle. >> we will see i appreciate your perspective this morning thank you so much. >> thank you. >> thanks andrew when we come back, the futures are indicated higher this morning. the dow right now up by 110 points it was up by 200 points less than an hour ago we started about 40 minutes ago. take a look at the dow components that are leading the way on this monday morning boeing at the top of the list. it's up by 3% on news that it's

expected to start today. we'll talk more about that later this morning when we come back we'll get you ready for the shortened trading week ahead in the meantime, social media stocks are under pressure as major companies including starbucks and coca-cola paused their ad spending. more on that story coming up in the next hour as well. right now facebook shares down by 2.8%. snap shares off by 3.3% and a remainder you can watch or listen to us live any time on the cnbc app

welcome back, everybody. we have some stocks to watch on this monday morning. first up, underarmor has reportedly informed ucla that it wants to end it's record setting 15 year, $280 million deal that it struck with the school. underarmor signed that agreement

in 2016 and it believes ucla failed to provide marketing benefits that were agreed upon the school is expected and both players have to tread a little bit lightly here neither one of them wants to drive away future deals that could be done so they probably will end up walking pretty likely and the last number that i saw, obviously the school has had issues as well where you haven't had the games that have been there because of coronavirus and it's had issues with it's basketball and football teams as well we are also watching shares of disney as it once again delays the release of the live action version of mulan that film is now slated today beau on august 21st after trying for a july 24th release. it follows the decision to delay christopher nolan's tenant as well amazon workers are expected to go on strike today union leaders say the employees at 6 of the sites are protesting

safety concerns after workers at logistic centers tested positive for coronavirus. the leaders say that the strike would last for two days. >> are you a mulan fan >> we have not been. not for any particular reason. >> eddie murphy is the dragon. he's the good one. >> that was good great ending very uplifting i can't imagine trying to do the live action do advertisers that aren't going to go social, do they have a social amount earmarked for advertising? does it come back to it? >> one of the things that you

have seen is -- >> no, but one of the things that you have seen is coca-cola and all the other companies that have already been slashing their marketing budgets in part because of covid, there's a cynical view which is if you're going to slash your marketing budget what a time to get a little bit of free marketing if you will because of all the headlines around this. >> i see. >> remember. >> i was saying squawk box is open for business. i was saying squawk box is open for business really i was. comcast was up -- why was comcast up on riday? it's been ten years since tesla debuted on the markets and we have a look back at the ride for elon musk and his company and shareholders stay with us

welcome back to "squawk box. a little bit of breaking news. cosmetics maker code ty strikin

deal with kim kardashian west. the company announced they were in talks about a possible collaboration. it's coty's second recent deal with the family. the company bought a 51% steak in kiley jenner's deal this would affect that other deal at about $1 billion kiley had been a billionaire, then she wasn't, then the family came back with a statement saying that the numbers were true and it's been -- there's been its own soap opera and almost like a reality tv show. >> yeah. she was -- >> they were mad was it fortune or forbes they were -- >> it was forbes. >> they said she never was it was forbes because they said they completely misled them when they went after to try to figure out how much she was worth and based on a lot of things that koim out, based on the numbers

afterwards that there's no way that the numbers that the kardashians had been pushing could possibly be true it wasn't a she was, she wasn't, they said she never was. >> boy, if someone said that about me, furious. >> no, they put her on the cover. >> right. >> they said it was based on all of these statements that the family had given them, tax returns and other information, and then they said that all those numbers were made up then the family came up and said, no, no, the numbers weren't made up and we're sort of left not to know where things stand. >> not happening for any of us, i don't think. that's a good problem for them to have. we have to move. might happen for -- already happened for this guy. been a good decade for elon musk tesla went public ten years ago at $17 a share it was the roadster which was small. i did drive one. had that and musk's master plan. ten years later stock's up more than 5500%

a number of milestones it hit along the way. >> we have just an incredibly positive outcome from i think the smartest investors in the world. ♪ ♪ ♪ >> welcome, everyone, to the model 3 unveil we have an amazing product to show you tonight >> what goes into making the model 3? >> we're going to be in production hell. welcome, welcome >> it blows my mind. i think it will blow yours. >> he is thinking of taking tesla private. 420 being the price he would do it at. >> i mean, it's legal, right

>> bring out the model y >> do you think you can work this out with the ftc over the next few weeks >> welcome to the cyber truck unveil >> you sure? >> yeah. >> oh, my [ bleep ] god. >> today surpassed $1,000 per share for the first time >> our next guest says the second half of this year is when tesla's hyper growth narrative falls apart and next year access to capital markets wanes joining us is gordon johnson, founder of glj research. we want to hear your entire bear case, gordon how many years have you watched as this has just sort of confounded people with your

view and have you been recommending the short the entire time? >> yes so we have been recommending a short the entire time. you know, quite frankly, it really kind of took off late last year. let me just go through the thesis very quickly. >> okay. >> if you look at tesla, right, what's key is revenue. i don'tthink it's production at a dollar everybody would buy a tesla car. if you look at their revenue in the fourth quarter of '18, essentially they're peaked in the fourth quarter of '18. 2g estimates you won't see that revenue. if you think about this being a hyper growth story, the numbers don't pan out. if you go on and you look at the market share, netherlands, norway, spain, the reason why we thiet those, they provide registrations daily. it has fallen from 35% in the fourth quarter of last year to 3% 2g quarter to date.

specifically norway, which is the most advantageous market for evs, they basically subsidize 50% of the ev, tesla's market share fell 37% to roughly 4% 2q quarter to date. the reason norway is the most important, that's where you have all of the competition tesla's market share in europe is literally collapsing despite the fact you don't have the small fully ev crossovers from bmw, volvo, mercedes if you look at 1q where they reported a small profit of 60 million, 354 million of that were regulatory credits that effectively sunset either at the end of this year or best case for tesla, middle of next year that would mean they were reporting a loss if you look at the warranty accounting where we have the receipts we sent to your

producers whether accounting for some of that is goodwill, that's another 200 million in additional profit that we don't think the company should be making taking a full step back, since 2010 tesla every year has lost money looking at gap net income, aggregated loss of 6.7 billion there's no doubt we've been wrong on the stock but if you look at the fundamentals, it doesn't look good. we think that's going to come to the forefront as numbers come out later this year. >> so at what price would -- if people were just following everything, at what price would they have started shorting because there's a whole cottage industry of tesla shorts they're very outspoken and actually kind of obnoxious, some of them. they have been that way for a long time, and i'm wondering if any of them are able to maintain the positions they have because they get squeezed. it's worse than -- almost feels worse than when a stock goes down when you're short at 200,

it's short 1,000, you have lost so much more than what you actually put up, right how long can you stay solvent to have this position >> yeah. there's no doubt again, the stock is kpleely detached with reality. tesla is trading at $178 billion market cap versus roughly 76 billion for vw for tesla to grow into its market cap it needs to see exponential growth since the fourth quarter of '18 when tesla's revenues peaked, every quarter since then if you include the 2g quarter estimate, they've declined or flat you're not seeing the hyper growth another thing, esg investors when you think about it, lynette lopez at business insider, she came out with an article that alleged tesla sold batteries

that were leaking that led to fires to customers look at the ntsb and said tesla's fsd technology allegedly led to people crashing >> we've got to end it >> you've got a lot of ammo. >> there's a lot of things that aren't happening at any point they look at this and sell the stock where do you short it? we think you short it here we think there's significant down side. we think the ability of them to full board revenues is effectively over >> we've got to run. we've got it, gordon i appreciate it. we're way past where we should have been, anyy.wa we appreciate it we're going to be watching it. "squawk box" will be right back.

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>> good morning. we're on cnbc. >> 160 points higher perhaps a little bit on the back of some of that news on the boeing 737 naas dock losdaq looking to ope. >> a fracking pioneer, chesapeake they've altered the energy landscape. brian, brian i should read ahead, brian sullivan. they were both really. it was pretty incredible company for a while. so many things surrounding this

for once a real high flyer the equity is going, joe it's 6 to 9 months, general time line as well this at one point was a $37 billion company that was running 175 oil and primarily gas rigs put that into perspective, there's only 266 total oil and gas rigs currently operating in the entire country among hundreds of different of oil and gas companies. that will tell you how big that chesapeake energy once was guys, this company was built on really three things. bravado, borrowed money and a lot of guessing as to where the future of natural gas prices were going to go

down in fact on an adjusted basis. natural gas pies arices are the lowest they've ever been $7 billion of the debt will be eliminated creditors will provide debtor financing as well as well as 600 million in new equity financing. the company can continue to operate. this company was the baby of audrey mcclendon who passed away in 2016 in a car accident. he was fired from the company in 2013 when the company was handed over to the new executive team, a lot of people don't realize this they had almost more debt than chevron and exxon combined chesapeake energy out of oklahoma bankruptcy filing not unexpected, guys, but certainly

one even after a reverse one for 200 stock split back on april 13th, not enough gas prices and debt load to keep the company out of bankruptcy. >> i wonder if this will make the list for people trying to buy it for a bounce again. company filing for bankruptcy, brian. >> it had been a robin hood trader favorite. now that it's bankrupt, you might be right, joe. hertz was bankrupt as well, oasis, whiting petroleum they were still robin hood traders. some of these bankrupt equities still continue to trade like gm did on pink sheets and other ways we'll have to see if the day traders kick in. the reality is the equity will be worthless and there will be new equity in a new company, new chesapeake, i made that up whatever name you want to have when it comes out the other side we'll see. yeah, the biggest bankruptcy yet so far in the oil and gas patch,

primarily a gas company of course, joe, but unless oil and gas prices turn around, i'm not sure this is going to be the last $40 is nobody's savior for oil 150 is nobody's save i don't remember for nat gas. >> trying to filling out where the 38 billion went. we never know. i guess it went somewhere. >> which a lot of his art collection, he had borrowed a bunch of money against his stock in the company. >> right >> to buy artwork and i think part of the oklahoma city thunder basketball team. he was personally levered to over $1 billion if i remember. my memory is a little foggy it's not early for you, joe, but it's still early for me. >> talk about it you're up -- what, you get up at like 1, don't you? >> i don't get up. i just don't go to sleep. >> yeah, exactly that's not a way to live, brian. you can't burn it at both ends go sleep now. >> i don't have it at any end. i've got no ends. >> we've got to move here.

there's news coming out on gilead gilead science is out with pricing news involving remdesivir antiviral treatment. meg tirrell joins us with more good morning, meg. >> reporter: remember that gilead had agreed to donate remdesivir through june. the logistic call course of treatment. the united states work

the share system, it is impossible they need to do things differently they need to be guided by that principal. as the world continues to reopen the social economic impact, we believe pricing remdesivir below value is the right and responsible thing to do. the fact that they are pricing it differently in the u.s. and other developed countries probably going to raise some eyebrows back over to you >> meg, i'm trying to figure out whether dexamethasone is a competing drug and whether that had any influence on where this is priced, going to be used in different settings is it used at the same time? dexamethasone seemed like it had better actual efficacy but i don't know if there's been

comparative studies done are both being used on the sickest patients >> that's a really great question, joe. in a perfect world dexamethasone will be used for the more severe patients and remdesivir will be used earlier because of the lack of so many things and remdesivir is being administered through iv, it's thought it will work better earlier in the course of the disease. your question is really acute because drug pricing watchdog called iser put out a new estimate of what remdesivir should cost based on the fact that dexamethasone works so well it came down from $2500 to 2800, from 4500 to 5,000 if dexamethasone's results bear out. that plays a role in the way people are thinking about this >> becky >> hey, meg, this open letter from the company, obviously gilead realized there's going to

be some serious scrutiny coming from this. the idea that private health insurers in the united states will pay more than developed country governments, what kind of firestorm do you expect what kind of push back do you expect do you think they laid out enough and they kept it lower than had been anticipated? will that be enough to quell any push back? >> i'm still interested to see what response we get, becky. before the pandemic happened drug pricing was a huge issue. it was the biggest issue for the drug industry and the fact that the u.s. paid so much more for its medicines than other countries. this is a prime example of the u.s. paying more than other countries. gilead will use it as an example to explain why the u.s. drug pricing system is so complex and why drugs costso much more here it's going to be a fascinating morning i think to see the response to this

>> meg, in terms of total costs for every hospitalization, i'm sort of trying to do the larger math on this, based on the letter that gilead sent out, they're estimating that each day that somebody's in the hospital for covid, it's costing about $3,000 i don't know if that's inclusive of remdesivir. also as we know, a lot of patients are being given remdesivir in combination with plasma i don't know what the costs of collecting that plasma is and then delivering that plasma. do you have any estimates for every hospitalization related to covid of what it costs and then try to extrapolate out what that means for the larger cost for society in this country? >> i don't have that on hand i know it exists and analysts have been parsing through that to find out what the reasonable price of recommemdesivir shoulde when they say $12,000, they're taking all of that research into consideration. i don't know if it includes

plasma that's a great question. but we know hospital stays are very expensive the fact that this does shorten hospital stays is important and also of course just for freeing up space as more people get sick and go into the hospital >> all right meg, thanks for bringing that info to us and all the nuances are quite a few. we're watching this. meanwhile, blackrock investment institute is revealing its numbers. the new themes, mike pooyle. also joining us is mike santoli. i'm glad you're here, mike santoli, because mike pyle, if we -- after listening to everything he tells us, i'm still not sure we're going to know whether we should buy or sell, buy the dips, sell the dips, do whatever. you're going to have to help us with that if you can do that, all right, mike santoli. >> we'll see if i can.

>> mike pyle, in investing there is a lot of -- it's arcane there's a lot of specifics that i think you are paid to think about. so could you just summarize what your outlook actually foresees for this mid year, for the foreseeable future, six months >> yeah. so let's take a step back before talking about the next six months and say i think the important thing about this moment is it's a moment where the future is running at us. and a bunch of structural trends, whether it's around deglobalization, sustainability, whether it's the policy revolution that we're seeing playing out, those are two things we're seeing happen over years. it's very important. long term asset allocation >> we're talking about what

you're talking about all about sustainability >> we're happy to talk about the next six months. we are across market's resilience we think looking ahead the role of nominal government bonds, we're looking ahead. searching for resilience, whether it's through more balanced geographic and private markets. those are going to be important themes for investors to situate themselves in a place where nominal bonds work less well looking ahead. >> santoli, it was a less week

2800 on the s&p. replace all of the bounce and get some new lows. we're going to see something on thursday and we're going to probably see job additions what's the market? is the market seeing six months down the road where there is a treatment? what's the market keying off of that makes it hold up where there's so much negative news that we saw over the weekend. >> i think it's a combination of things don't fight the fed and don't fight the tape are good rules. the tape has gotten softer meaning the actual market performance and some of the displayed behavior we're fought for a month you basically digested this massiverally where i think on june 8, on the day of the may employment report, that up side surprise, that pretty much was the peak for over excitement about the pace and smoothness of the reopening.

we've had a consolidation pull back that's been underway. yes, the market is looking out to a big earnings reset. doesn't care about second quarter earnings very much and is essentially saying the credit markets are backstopped. professional investors in aggregate are relatively cautiously positioned. there's some over heating stuff going on you think that kind of buffers you for much down side if somebody thinks you get to 2800, maybe it's a summertime range. there are days of expectations here the mobility stuff the restaurant reservations. that has kind of softly gone over the equity markets. >> what we've seen in fossil

fuels and carbons and the energy complex. is there anything blackrock, you slowly totally use it. that's your story and you're sticking to it you're going to make sure you don't have much exposure there >> i'm going to go back and question it. the high yield is a way of gaining some up side exposure to what we do think will be a choppy ride over the next six months but on balance one that will be about the restart.

>> mike, i see that. >> thanks, joe when we come back, cases of coronavirus surging in texas we will speak to the headof houston methodist hospital right after this break about the skepi and "squawk box" will be right back apps are used everywhere... except work. why is that? is it because people love filling out forms? maybe they like checking with their supervisor to see how much vacation time they have.

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shares of gilead trading lower. countries in the united states are charging you $520. that works out to about $3,120 if you have private insurance. if you are with a developed country. talking to the company's ceo that's coming up live at 8:40 eastern time to get his thoughts behind how they came up with this and what happens next andrew okay coming up when we return, houston methodist hospital ceo dr. mark boone is going to join us to talk about the outbreak of covid-19 in texas and cleared for takeoff. boeing's 737 max will conduct test flights as early as today we'll get the details in a

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welcome back to "squawk box" this morning texas is one of the states with a spike. talking about whether hospitals have the capacity to deal with the rising numbers we have the ceo of houston's methodist hospital good morning, sir. >> good morning. >> appreciate you being here tell us just the state of play as you see it right now and what's going on at the hospital and really just how much space there is for new patients. >> true. well, the virus is spreading pretty rapidly through houston right now. we've not seen a sign of that

slowing down so that's obviously a huge cause for concern we've seen our hospitalizations since memorial day, which is the inflection point or a few days thereafter almost quadruple. a week ago it was triple, now it's almost quadruple. one very different thing this time is much lower percentage of icu utilization. we only have three or four more people in the icu. this is across our eight hospital system that has over 2400 beds. we have significant plans to serve. we're okay right now for space but of course we need to get this virus under control that can't go on forever. >> doctor, there has been big questions about the reporting of data around how many people are in the hospitals, how many people are in the icus and what texas has been doing and what the governor may or may not have said to you about that

can you speak to this issue? >> it's amazing how some things turn into big stories that aren't we realized when we published data people were misunderstanding it. you heard what i said about capacity looking at fixed numbers and thinking that hospital capacity is fixed we didn't want to necessarily alarm or panic the community when panic happens, bad things happen so we took a pause in order to clarify the data, actually put-back out the data yesterday so it was really just a one day pause. it's much more robust. it's much more detailed so it's easier to explain what it is the bottom line is we always run about 90, 95% icu examines at capacity. some hospitals are covid patients we've had to manage that process already to be able to handle the surge. we will continue to do that and have a very significant capacity

to manage the surge. let me be clear, that doesn't mean we can go on forever. it doesn't mean we're minimizing this this is a real issue it is spreading rapidly through houston. we are not under control as a city the virus is out of control and bad things can happen. people are sick, people die unfortunately and the economy ends up in shambles whether it's through government action or through everything shutting down as the virus spreads we need to do more and every citizen has to do their part across the core of all 7 million people across our area. >> doctor, very briefly because we've got to run what is the age, the demographic of the people that you are seeing in the hospital right now? >> it's gone down a good bit it used to be 60/40. 60% over 50 and 40% below, it is completely flipped the other thing is it used to be one in five patients were young, under 50 now almost one in three.

we are definitely seeing this affect young people and they're getting quite ill. really need everybody to do their part >> it's an important message, especially for young folks who think they can't get it or that it's not damaging. doctor, appreciate you being with us this morning thank you. >> thank you good to be here. >> good luck we're wishing you a lot of good luck from here in new york given all the experience we've had unfortunately. >> we really appreciate that. >> joe still to come on "squawk box," monday markets with mohamed el erian of allianz. the 737 max ready for its first test flight today. boeing getting approval from the faa for the plane to get back into service has to get through this. starbucks pausing ads on all social media platforms it's saying facebook has been ineffective in stopping hate ee aspchnd misinformation.

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welcome back to "squawk box. a major step forward for boeing's 737 max the recertification test flights can begin as early as todd phil lebeau joins us with more a story we've been waiting on for quite some time, phil. >> reporter: a long time, andrew these recertification flights which will start later today out in the puget sound area, this is a chance for the faa to officially check to see if the changes made to the 737 max, have they taken hold

here's what happens. in the cockpit an faa test pilot will take the lead sitting to their right, a co-pilot from boeing with another flight engineer in the jump seat. they'll fly a specific route that's detailed on a flight test card including exact parameters like altitude, air speed and center of gravity for a plane. it is the script of specificity specific scenarios the pilot will fly in the air with data being constantly sent to computers and engineers in the back of the plane and on the ground it's reported with multiple cameras. the real focus of the mks certification flight will be the mcas software. mcas was designed to trigger in certain situations like takeoffs when the nose of a max could rise too much leading to a possible stall to keep that from happening, mcas automatically lowers the nose while the plane accelerates. the software has been redesigned

so mcas can only be triggered once, not repeatedly, which was a primary factor leading to the max crashes. the faa pilot will not deviate from the flight test card so there are no mid flight changes, nothing is done on the fly when they land, the test flight may be over but analyzing the data collected in flight will just be starting. >> today's recertification flight is the first of what we will see over three days where the faa test pilot along with the boeing co-pilot and all of the different people from faa and boeing will be on the plane. they'll be going through a series of these flights checking the mcas system. if this goes well and they won't come out and officially say, oh, yeah, they passed the recertification flight at some point they will. what will happen, if you see that steve dickson, head of the faa is going to fly this within the next two weeks, that's an indication that the faa is

convinced that the changes that have been made may stick and they work and that this is a plane that is close to getting back in the air on commercial service flights. guys >> phil, when's the soonest the plane could be recertified >> theoretically you're looking at probably something within the order of 6 to 8 weeks. you still have a number of hurdles that need to take place and once those take place -- and they're not easy they're not like, okay, somebody stamps it, says good to go you have committees that need to get together, finalize things in terms of pilot training, what the expectation will be. they're moving rather quickly. they believe that they're on pace likely to see this plane recertified ready to get back into service let's say sometime late summer. whether or not that actually happens, it's going to take 60 days for airlines to go through pilot training to get this

plane. we're unlikely to see this plane where you and i are getting on board any time before the end of the year it will be a stretch to see if that happens. >> all right phil, thank you. good to see you. >> you, too. right now let's move back to the broader markets as we get ready to begin this holiday shortened trading week the next guest says equities have no upward drivers he also says we might have lost whatever has been allowing stocks to see such high prices in the midst of such tough economic times mohamed, what do you mean no more upward drivers? what happened? >> becky, we have sequentially lost three drivers the first one was policy led that's what got us out of the march 23rd lows. the second one was fundamental led. the reopenings the healthy reopenings, those have stopped the third one was the retail inflows. the enthusiasm that got the

reopening trade taking off and got us to the june 8th highs unfortunately, all three have run out of steam for now if you look forward, listen to what scott said this morning, the issue with the infections and hospitalizations not going to go away for at least three to four weeks if not longer so it's not going to be fundamentals it's not going to be technicals. the retail trade has been hit quite hard so it has to be policy if we want to get out of this range which is volatile and downward trending, we need more from the fed and that's getting tougher and tougher. >> although, mohamed, i would say this week you do have steven mnuchin and jay powell both are going to be speaking to congress tomorrow. i think that would provide an opportunity at least for one or both of them say something that the market looks at and says, aha, here's something we haven't anticipated. then you get the fmoc and

thursday we get the jobs report. who knows. we'll see what happens what that shows. any of those i would think could be either up side or down side drivers. >> undoubtedly we're going to have more volatility and more of what we've seen in the last few weeks. the big question for me is does congress wake up one of the problems of the good jobs report covered in may is that it created complacency. it divided congress and suddenly we see very little momentum and a lot of the relief measures are going to run out in the next few weeks and that would be an additional hit so my hope is very much like yours, becky, that lawmakers get the message that this economy is still facing considerable headwinds and we can't face another downward trend we don't want to lose the q3 gdp battles. >> the one thing i want to say

is the one place this is affecting it could neutralize the lawmakers that had been opposed to spending additional money. it was things that weren't happening in their district. they thought it was a problem in the northeast, california, other places some of those lawmakers i would think might have changed their minds whether there might have been additional spend don't you think? >> i hope so scott said it's not just the southwest and south. 40 states have greater than one. the steps taken so far incremental, so there is need for relief measures. the last thing we want is bankruptcies and long-term unemployment because that terms short-term problems into long lasting challenges, both for the economy and for markets. >> hey, mohamed, the jobs report on friday ---or thursday, i should say, because friday the

markets are closed for the holiday. what numbers would you be an tis si painting? what numbers would sr. price you to the up side or down side? >> i don't know. i don't think anybody knows at this stage i see two trends that i worry about a lot. they're trickling up comp rate america. they're no longer limited to the small to medium size firms they have gone up. on the other hand, given that this report is going to capture the middle of this month, it is going to be capturing when the reopenings are still going relatively well. so i don't know what that number is going to look like. i think it's going to be analyzed very, very heavily but i don't think it's going to

clarify. the high frequency are valuable. those suggest that in certain states things are going well in new jersey in new york but in other states we are already turning around >> mohamed, thank you. great to see you and we will talk to you again soon >> thank you, becky. coming up, a check on some pre-market movers. starbucks becoming the latest company to pause advertising on all social media platforms backlash against facebook and others grows over fact checking. then at the top of the hour house minority leader kevin mccarthy joins us to discuss the reopening of america as coronavirus cases spike in 'lasain states wel k him about that and much more. we're coming right back.

welcome back to "squawk box" this morning take a quick look at futures we are in the green. the dow up 207 points right now. leading the dow this morning, boeing, raytheon, american express. this all coming despite some of those covid numbers. we'll be talking about some of those covid numbers with scott gottleib and the founder, kevin cistern, the founder of instagram who's created an interesting website that's been followed by just about everybody in the health care community in the 8:00 hour. >> andrew. >> becky, dow component rayth n raytheon, there you go you've been watching that, right? factoring it into the dow all the time i know i have. coming up, it wasn't news to me at all no facebook falling in the pre-market as more businesses

including starbucks join the growing number of brands planning to halt ads on the platform we're going to discuss after the break. isorng look at the faang stocks th mni "squawk box" will be right back. you've got a lot of fight in you. and you're in a special position to help us fight back. the plasma in your blood can literally save lives. but we need to act fast. please donate plasma now. please donate. donate. donate. donate now. you fought for your life. now let's take the fight to covid-19. go to the fight is in us dot org to find out how to donate.

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your wireless your rules. only with xfinity mobile. now that's simple easy awesome. switch and save up to $400 a year on your wireless bill. plus get $200 off a new samsung galaxy s20 ultra. welcome back, everybody. a growing number of iconic brands are pulling their ad dollars from facebook to take a stand against what they say is

facebook's failure to stop hate speech julia boorstin is joining us with more on the story julia, good morning. >> good morning, becky facebook shares plummeted. shares down 3.5% pre-market as what started a group of smaller companies organized by the naacp and the antidefamation league cracking down on racism and hate speech starbucks, which was facebook's sixth biggest advertiser last year over 150 companies have committed to a one month pause as part of the official boycott. others leaving the pause open ended while procter & gamble is saying they're revealing hate speech and reconsidering all of its ad spending. analysts saying more brands could influence others to join

so they can impose others to join, they could expand internationally. bank of america is saying they expect facebook to tighten restrictions on hate speech and possibly introduce some new fact checking policies. the growing number of advertisers participating indicates that zuckerberg's latest efforts didn't go far enough friday he said they're cracking down on hate speech and ads. as brands who are under economic pressure, one question is whether they can realize that maybe they don't need the social platform as much as they thought they did becky? >> hey, julia, just in terms of the economic impact of this, what's the guess at what it could be now that we've seen some of these big brands saying this how difficult will it be to address the issues and win the

customers back i mentioned starbucks does $100 million in spending. that's just the u.s. number. the economic impact will be dramatically more if these spending pauses become a global thing. the vast majority are only pausing spending in the u.s. we're talking about hundreds of millions of dollars if the boycotts are continued through the end of the year. whether it becomes a much bigger problem for facebook which had $70 billion in ad revenue last year, that will really hinge on whether or not these boycotts go global and whether they last for longer than a couple of weeks. it's all a matter of timing and scope. >> julia, on the show before this brian had an analyst -- not an analyst, a reporter saying a lot of facebook's appeal is for

smaller companies that can't afford the big ad budgets for other types of media therefore, the big guys are important but not as important as all of the multitude of smaller companies. it's like 6% of revenue. can you confirm that number? >> well, one estimate that i saw that of that 70 billion in revenue, about 1/4 comes from big companies and the rest comes from small businesses. they have 8 million advertisers. the vast majority of those are small businesses the big brands account for meaningful percentage but not the majority of it >> very good >> jewel yeah, thank you for that we're going to continue this conversation right now take a closer look at facebook's growing ad boycott the adl called on facebook to drop it. here we are.

there's been a lot of action since our last discussion. where is this headed next? >> i'm glad to be back here and talk about it. ten days ago this was an idea. now some of the leading brands in the world joined our cause. we're committed to pushing hate off the platform starbucks, diagio, pepsico came on board i think what brands are realizing, it's become very clear, they don't want their own businesses, their own brands associated with a platform that doesn't respect their values, the values of consumers and the

values of society. we've already had some success. >> gentlemen, are you in dialogue privately behind the scenes that you can share with us with facebook itself on these issues. >> we've certainly been endowed with facebook long before this ever started what we saw -- >> what are they telling you now? >> i think there's a willingness and a desire to sit down and talk with us, but i'll be honest, mark's speech on friday department do anything to allay our concerns i think the things he talked about were half measures at best and really just trying to put out a fire than solve a problem. that's what we want is a public commitment from facebook to solve the problem. >> can i ask you a question?

what do you think is driving mark zuckerberg on this? i think there's a view out there that somehow his principles are unprincipled, craven, all a business interest in profits i look at what's happening and i say, i'm not so sure you can disagree with his perspectives i don't know if it's just about business >> i'm not a psychologist. he has built a $70 billion business that's an incredible fete. that's something to marvell at can i ask, pushing white nationalists, holocaust deniers off the platform or at least deamplifying them, would that be really so hard i don't think so submitting to a regular audit to suggest you're making progress

in dealing with this content not that hard in relative terms. so i think all of us in the coalition really feel like the time is now for mark to get past whatever his positions are and realize this isn't about some civil rights activist. this isn't the interest of some stakeholders this is an interest for shareholders we want him to step up and stop making profits. >> jonathan, how long do you think this boycott could or will last there's a cynical take on this we talked about in the 6:00 hour a lot of these companies are challenged given covid and are planning to cut back their marketing budgets to begin with so this may not be the hardest ask in this particular moment but over time may become more complicated as they want to rev up their business all over again and need to reach consumers. >> that's an interesting take. i think that's wrong so i've talked to many ceos over

the past several days and all of them are coping with the covid-19 short kls fall. all are trying to regain consumers and reposition the ad spend is pretty crucial to the customer acquisition plans. it's no small thing for them to pull back. it is where they go to get highly targeted users online it's a critical part of every marketing plan i'll tell you, my take is somewhat different i think ceos are struggling with the fact that facebook is subsidizing hate content with their ads much it's been happening for a long time and they want that to change and they are balancing that moral question with their business imperatives. what you're seeing happen -- by the way, one of your -- i think julia noted before, these are mainly u.s. brands look, honda, diagio, unilever, these are global brands.

i can tell you this. i've had nonunion brands, this ad pause will grow in the days ahead. this is not just a u.s. phenomenon, it's a global concern. i want to say, it's not just big businesses we've had hundreds and hundreds of them. i wrote an open letter in ad age this morning with questions that every advertiser should ask their facebook account manager ask them, push them. make them tell you what steps they're going to take. >> jonathan, we want to thank you for the conversation also, just want to mention aaron is the smarter sorkin. i don't want to insult him he's a friend though >> sorry about that. >> hope to talk to you again very, very soon. >> joe. >> coming up, we're going to talk to house minority leader kevin mccarthy about his state's recent spike and his take on the need for more stimulus next.

later, we'll talk with instagram's co-founder kevin systrom. he launched rt.live back next. he'lljoin us with drsc. ott gottleib with the latest on our understanding of the coronavirus. we'll be right back.

good morning the dow and s&p 500 on pace for losses in une, but there are two days left in the month and futures are pointing higher this morning. the coronavirus case count rising fast as worldwide infections and deaths reached grim milestones over the weekend. we're going to speak with th co-founder of insta kbrgraminst.

it's an important day for boeing test flights of the revamped 737 max jet are set to begin more than a year after the second of two fatal crashes that plunged the company into chaos the final hour of "squawk box" begins right now. u.s. equity futures have been positive. they opened late yesterday down more than 150 points now or so and recovered overnight. we began up 150.

it was up 290 a couple minutes ago. up 274 the s&p up 25 and the nasdaq, i don't know if it's more importantly, the nasdaq had been up a point or two. >> for the month of june nasdaq is up 2.8% both the s&p 500 and the dow are down the dow is down 1.5 and the s&p down 1.2 nasdaq would be up three months in a row. >> january, february, march, april -- june has 30 days. >> it does >> two days, today and tomorrow. >> okay. >> on your knuckles, right >> two days to make up that and 1.5 -- no, no, i've already -- i've taxed my brain enough to

know there's 30 days i'm not going to tax my brain to figure out how many points 1.5% is >> andrew, becky is doing this read why don't you get out your calculator and figure out 1.5% of 25,000. what's that, 375 points. >> 250 points. >> 375. >> yeah. >> okay. >> anyway, market's up and then there's headlines like this which, you know, that's -- you wonder why people think -- >> this is what we're trying to balance right now. two grim coronavirus milestones that were reached over the weekend. according to johns hop kibs university the global death toll passed 500,000 people as worldwide cases topped 10 million. the united states has roughly 1/4 of those infections. florida and texas have put the reopening processes in reverse texas shut down bars and rolled back restaurant dining late last

week while florida banned alcohol consumption at bars. the state along with georgia, south carolina, nevada broke records for new daily virus cases. health and human services secretary alex azar said time is running out to slow the spread >> the window is closing we have to act and people as individuals have to act responsibly. we need to social distance we need to wear our face coverings if we're in settings where we can't social distance, particularly in the hot zones. >> u.s. officials reported just under 45,000 new infections across the country that was below friday's record guys, as we know, those numbers tend to pick up again at the beginning of the week just based on how and when states report some of the numbers. >> yeah. all right, let's talk more about all of this and reopening, more stimulus this is just one more month until the expanded unemployment benefits that many americans have been receiving are set to

run out. in the next few weeks congress is expected to debate another round of economic stimulus joining us to talk about the plans, we can see house minority leader kevin mccarthy. we know you represent a portion of california, leader, but it's not the portion that. >> is it difficult for you to be a half full -- in that camp at this point with what's happening? it's hard to look at what's happening in texas, arizona, florida and not be worried and not even question reopening. are you able to do that? and see some things that are optimistic >> yes i see things optimistic because i'm an american. i see that we learn something from this virus every single day. i see the movement from the vaccines and the barter with five companies i see the therapies coming

forward. i see companies like whoop and aura to give you early indication what i found in the process is we need to continue to focus on those who are most vulnerable. what i love so much about the home care, elderly care for being able to provide there, but now we're looking at younger people remember what we're coming off of, a double phase here. we phased in the openings and we knew something like this could happen but maybe not to this extent when i looked at that drone view of la, it was almost a mile long shoulder to shoulder, they're expressing vocal and others, we're finding that's the easiest way to transmit to others, singing or others, so that became a problem so we knew that there was going to be some type of spike going right now. how do we manage it? we've had good governors across the southern states. what did they do they shut the bars down. smart thing to do now. we have better testing we're testing 600,000 people a day. we've tested 31 million.

so we have a better capability of finding it. now tracing it now we have whoop, aura, as i said where you can trace at a better process than times before yes, i am always optimistic because i am an american that we will solve this together we did not invite it here. it came from a foreign land. it lied to the rest of the world. we will surpass this as we move forward. >> leader, the notion of shutting down en masse again is unlikely and the economy, a lot of people -- a lot of people say it's got to reopen, but the deaths are way down. we're seeing some of the lowest numbers for deaths, but we just had dr. scott gottleib on saying that there will be an increase in deaths eventually as it moves from some of the younger people that have it in texas or they've contracted it in texas, arizona, and elsewhere. it will move to more vulnerable people and we'll see that go up again. you don't think there will be

another closing phase of the economy anywhere >> no, because i think we've learned from this. you go for the most vulnerable we have better data. we have better testing we have better tracing we have better therapies for it. you look at what gilead has been able to do you look at what's coming forward from our vaccines and others i do not believe a shutdown completely of the economy is a as a matter of fact thing to happen we know to look at the most vulnerable we know to shut down the bars. that doesn't mean 100% of everything is open but in the places where people will not keep social distancing, we have to make sure we have protects there >> andrew. >> hey, leader, given the trillions of dollars that we're spending, taxpayer money that we're spending. >> yes. >> do you think the administration and fair and accurately washington needs to do a better job of promoting the use of masks, of making sure that bars and other spaces

aren't used during this time it just seems to me when you think about trying to use money efficiently and not wasting money, it's one thing, i give everyone in washington a lot of credit trying to solve the health crisis with the money, which you can't solve a health crisis with money, but it doesn't seem like we're doing the right thing on the health side at the same time to make it efficient and make it work >> well, you can't have it two ways you can't say the federal government should do everything and then say the federal government can't tell the states what to do the governors have a big responsibility here, but every american has a responsibility. they should wear a mask. we've learned now that, yes, it doesn't transfer greatly on to materials or plates or others as many thought from the very beginning. that's what i say when we learn something new every day. we learn that the droplets from individuals, you're very loikel, a cough or a sneeze.

if you fly today, everybody is wearing a mask as i go to the store, i'm wearing a mask in california the governor has said everyone to wear a mask i think this is the appropriate place we should be if you cannot social distance, you need to wear a mask. you need to be respectful of one another. continue to wash your hands. do not touch your face i think from a standpoint some people thought maybe we were in the first stage, it's going into states that had not been in. we had major protests across the nation of people gathering together, of not knowing one another, of not having social distance but also having emotion of chanting, yelling, screaming. if you see a higher uprise when it comes to younger people, the protests were more about younger me people, the bars are younger people when others are in business and open up, put up the plexiglass,

social distance, cleaning, whatever, the younger people going out at night that we did not know about that is becoming a new vulnerable area. but, remember what also we have, greater testing. 600,000 people a day there's no question if you need a test, you're able to get it. we get greater response, greater treatment to identify earlier. you have many wearables that you can have earlier indication so that person doesn't come into work to make other people sick as well. >> we've got to run, leader. real quickly, do you think that the economy is in -- at a point where we're not going to need to replenish all of these programs or to extend programs or find new programs are you ghaens at this point >> if you look at the unemployment insurance, the addition of federal government, it's hurting small business when people are making more money to be off work than on work we need liability protection

because that's hurting child care from opening up that's hurting from schools and others that are going to be sued we need the liability protection going forward and then we should pinpoint are there areas and industries that need help. make sure that supply chain comes back to america. usmca is going into effect this is a great opportunity not to move your business from china to vietnam but move it back to north america. you'd be smarter in the long run and stronger. >> leader mccarthy, we appreciate it. thank you. >> thank you. >> looks like you visited a hair place. i'm going today. i'm going to venture out. >> we opened up earlier in california. >> i'm going to have this retrofitted. they move it around a little bit. i think maybe some -- put it all the way around it might work. thank you. we'll see you. andrew >> thanks, joe. coming up when we return, the co-founder of instagram is going to be joining us on his latest project, tracking the spread of the coronavirus. kevin systrom will join us

he'll be joined by dr. scott gottleib who looks at that data every day. then battle iing a problem. check out shares of tesla. today marks 10 years since the electric car maker went public stock is up more than 5500%. since th n aenot bad investment. stay tuned, you're watching "squawk box" on cnbc mhm, yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. now offering zero commissions on online trades. we charge you less so you have more to invest. ♪

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joining us to explain that and what we can learn from that is kevin systrom and back is dr. scott gottleib kevin, you go to it because you built it you created instagram. you left a year ago, then you created this how did it happen? >> what i'll say initially is this site is a public good its he not meant to be a new company. nothing more than understanding

how the virus spreads. people want to know what r is. it's clear that people like dr. gottleib and others have understood how useful this metric is and where we are. >> you're inputting data sources from across the country. i imagine certain states will be providing better data than other states >> yeah, the data is actually the hard part which is to say it's unreliable, noisy, delayed. the data you're looking at today is actually delayed almost a week, maybe even longer there's a five day incubation system, you get a test, you report it, it's been over a week. the data you're looking at today doesn't give you a real view into how things are going.

it's like driving a car 100 miles per hour down a freeway trying to control it by looking in the rear-view mirror. that's one of the challenges we wanted to give an insight into how the stats are developing with with a reliable income >> you look at nevada which is the worst of it. if you look at this site, by the way, green means the numbers are going to go down red means potentially -- not potentially, they will by default go up because anything more than 1 is going up. what do you worry about most right now in terms of some of these states states like montana has the second highest r new york went red for the first

time over the weekend. >> yeah, i think the value of the site there's a lot of values to the site i think one is you can look at it over time you can look at how the states are changing over time and that's very useful to see how the epidemic is being -- is coarsing in different states they're trying to also smooth out the data they talk about the difficulties with the reporting tough initially. how many infections you get. >> this is the rate of it. mounting cases in new york the rest of new york

the economic impact of the virus. >> kevin, in terms of looking at the chart today, what other states are in the green now. >> i'm sorry, right now you have 34 states above 1.0. >> i don't know what a second wave is. two states have an enormous infection. florida has 1.4 and texas at

1.25 california even though it' seeing record numbers, actually i worry less about california because the testing has increased so much. at the same time california has a bit of a second wave although far less serious than something like florida and texas backing all the way up this is one metric of many to understand whether the virus is spreading quickly. there are many other sites you should go to then you try angulate. hopefully policy makers are doing it. >> for those out there uninitiated, what are the sites you can go to to understand where we really are. >> well, first and foremost, i'd say your state department of health every state the place where we get the data is through covid

tracking.com you can go there if you go to your state and type in massachusetts department of health, you'll be able to see the stats, raw graphs, washington has a great site that you can go to if you live there. epiforecast.io try angulate for yourself. these are all models as any doctor will tell you, models are only so good. what you need to do is try angulate between them. >> one of the questions i -- >> i think the value of a site like rt.live is it's giving you an indication of what the new cases are telling you. it's very hard to interpret from new cases being reported on a

daily basis what that means with respect to whether or not the epidemic is expanding because there's a lot of noise in the data rt.live helps smooth that out and whether or not the epidemic is expanding the other thing i would be watching closely is hospitalizations it's a lagging indicator the time to hospitalization is a week, seven to ten days until you get diagnosed. you have 20 look at the metrics. if you see them going up, that's concerning. >> doctor, how concerned were you over the weekend about some of the data that's no longer being supplied by states like florida and texas and no longer receiving hospital data and we talked to one of the big hospital presidents this morning. he said that data is going to come back online but there's also reports that governor abbott in texas seemed to

suggest that he doesn't want some of that data either out there or wants the numbers to look, quote, unquote, better >> well, texas medical center has reposted the data and they've put a more granular description of what the capacity is before it was hard to interpret what their surge capacity was. now they've specified what their surge capacity is in terms of their ability to create new beds data is by and large back to where it was and they're actually reporting a little bit more they're reporting their total capacity texas doesn't report daily new hospitalizations, they report total hospitalizations it's hard to get a clear picture of what's happening on a day-to-day basis florida also doesn't report daily hospitalizations you have to look at total hospitalizations, new hospitalizations every day to get a snapshot of what's going on so there are individual hospitals like texas medical center and individual counties that do very good reporting. those two states by and large

don't do very good reporting in terms of daily new hospitalizations and total hospitalizations >> kevin, you've done remarkable work with this we want to thank you for being here before i let you go, i've got to ask because of your former life, it's been in the news, it's all we talk about. facebook and some of this hate speech that's online when you built instagram it was something to create, i don't know, a safe space but a space that people enjoyed. do you have feeling about what's taking place at facebook right now? >> well, they're in a tough spot and it's not like they don't know that, right they have advertisers boycotting, they have users, you know, revolting and one way or another they have employees that are very unhappy. what you find is the debate is what is the value of keeping a post up because you can talk about it, you can debate it, you can discuss it and decide whether or not you want to vote for that person in the next election versus that post's

ability to incite violence that's a difficult tradeoff as any executive would tell you if you can imagine yourself in that seat, that's a tough one. but what i will say is that they've decided to go down a path of leaving things up and marking them, and i think that's a reasonable one but at the same time they have to be willing to dial with the consequences of all those users and advertisers who are so disappointed in a decision like that it's -- you're going to be in trouble either way you go. the question is what are the consequences you want to deal with so far they've decided this path they've changed their path a couple of times during this so i think it's going to be very trgs to see what happens over the next month or so. >> kevin systrom, we appreciate it >> thank you. >> we appreciate what you're doing with this site. >> thank you. >> dr. gottleib, always appreciate your insights and look forward to seeing you again tomorrow thanks, guys >> thank you

all right. coming up, much more on the battle against the coronavirus and what businesses may need to get through this latest spike in cases. and just before i get to this next story, i'm seeing something here, becky, you might be got to call quail fox sports had the u.s. open golf, nbc had it forever. >> got that. >> at augusta you're used to jim nance saying hello, friends, you like cbs the u.s. open it switched to fox. back in 2015 i said, this sucks, because i didn't like the coverage of it. >> uh-huh. >> it was awful. well, they had a 12-year -- >> guess what? >> they had a 12-year deal for 1.2 billion. according to the post it's coming back to nbc after five years. >> it is. >> which means tirico. >> the journal had the story today, too it's not just the post >> and the journal -- >> all right so maybe it's true

but it's great news. >> the journal said that, look, fox really outbid everybody. they went from something like 30 something million up to 90 something million and really jumped it up when they were trying to build stuff for their regional sportsnet works >> right. >> it hasn't paid off to them to that extent. they were looking to get out of it from what i've been reading, the rights are much closer to the old range of 30 something million. >> i don't care about the money, i care about back on the mothership. >> it's here. >> with much better coverage, which that -- i don't know, it's some good news on a day when we talk about so many serious things golf's been a highlight for sports dustin johnson, another year he's got a streak. as we head to break, more bad news take a look at shares of intercept pharmaceuticals getting slammed on news that they've been declined to get

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welcome back to "squawk box. futures right now up 230 points on the dow the nasdaq up 22 and the s&p up about 21 points this morning, and kind of in the middle of the range where we've been -- the dow is near the high end, but the nasdaq was barely up at all, then it was up almost 40, now it's up 21 becky? >> joe, thank you. and on the ground view of what businesses are going through in texas as coronavirus cases in the lone star state spike. former dallas fed president richard fischer will join us next. gilead ceo daniel o'day will join us as his company has

pricing on remdesivir. check out shares of chesapeake energy this is one of the stories we're following closely. chesapeake filing for chapter 11 bankruptcy protection as it deals with some $10 billion in debt stay tuned e tcngsqwkoxua b" right here on cnbc stock slices. for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50 instead of paying thousands. all commission free online. schwab stock slices: an easy way to start investing or to give the gift of stock ownership. schwab. own your tomorrow.

news on how much the coronavirus drug recommend des severe will cost meg tirrell joins us with details on that. the latest on the growing number of infections around the country. good morning again, meg. >> reporter: good morning, joe let's take a look at the numbers across the united states they are still near record levels yesterday more than 40,000 new cases reported by states after more than 44,000 i saw one note projecting we will hit 50,000 reported new cases this week in one day you can see the percent positive rate going up in the u.s. showing we're doing more testing and we are catching more infection. now up to 7.6% the problem areas of the country remain the same. seeing skyrocketing numbers in arizona, florida, texas.

here you can see according to evercore isi, the red states and areas are seeing the fastest doubling time. orlando now the fastest in the country at eight days. tampa, jacksonville, florida and the northeast seeing the fastest slowdowns. now we are seeing over the weekend more states pausing their reopening and causing some businesses to close. the orange are areas reversing texas and florida taking reaction on bars california causing bars to close. several states pausing their reopenings right now on that remdesivir news, gilead set the price of that drug this morning. in the united states, $520 for u.s. private insurance per vile. $390 for government insurers in other developed countries. that's 30% more in the u.s. for

insurers and for the entire cost of the drug in the united states, just more than $3,000, guys we'll be talking about this with lots of questions for the gilead ceo. dan o'day joins us on "squawk box. back over to you >> meg, thank you. we're looking forward to that conversation and we'll be back to you in a few minutes with more of that in the meantime, we want to drill down and focus on one of the new hot spots that meg was talking about for the virus, that's texas for that we're joined by richard fischer who is now barclays senior advisor and cnbc contributor. he's a special advisory council member of the strike force to open texas and the chair of the dallas economic recovery task force. richard, great to see you. thanks for being with us how are you doing? >> i'm doing great it's good to see you thank you. >> it's good to see you, too it has been very concerning to watch the spike in the number of cases in texas and i'm sure you're concerned about this, too, having a front row seat watching the state actually roll

back some of the things it had done to open early on. i guess my question would be is it enough? how concerned are you? what do you think happens next >> becky, you have to keep this in perspective we have almost 30 million people in texas our economy is huge, bigger than canada, mexico, spain, russia, australia, and we have 29 to 30 million people, that's an awful lot of workers that need to feed their families, put food on the table. make money, get back to work that's the balancing act that's trying to be achieved right here we have had a spike, as you know, in our cases here in positive testing in may when the governor opened the economy we were running a little over 4%, 4.2, i think now the positivity test rate is 13%. what's worrisome is it's come into the lower age group half of these new positive tests

are people between roughly 35 years of age, between 21 and 40 something. that is of concern before it was prisoners in nursing homes, elderly, et cetera, et cetera. now it's migrated down a lot of this has to do with group activity going to bars, celebrations, graduations, big parties that's why the governor has reimposed restrictures on bars and places where people gather it seems odd to see that we've cut back on tubing and water rafting, that's where we were seeing an awful lot of positive toe tests coming back on younger people no manufacturing plants have closed down and retail stores are operating at the same level as before. this is an important case study to me to watch because of the size and the mass of this economy, because it's very much free enterprise driven and it's

texans that don't like to be told what to do by government. we'll see what happens we hope we can bring the rate down if not, it increases, you'll have to have some clawbacks in other areas as well. >> richard, using it as kind of a case study, we've kind of been under the impression that the reason it was going up in places like texas and arizona was because of the indoor activities inside bars, inside restaurants. >> right. >> and because it's so hot there that people don't want to spend a lot of time outside. you do mention the tubing. i've seen reports of that, too that makes me wonder about places like the beaches, are the beaches as safe as we had thought they were. we thought uv light killed all of this. what would you say based on what you've seen? >> we've seen in florida they're closing an awful lot of beaches for july 4th and obviously despite the fact that you're supposed to be in open air, but when people gather together -- becky, one of the worst things that happened in terms of

infectious rate spreading were all of these demonstrations that took place and, remember, it takes a while to take place. you have to be tested. there's about two or three-week waiting period there's been a lot of outdoor activity and indoor activity no one likes to do that. i was a bartender for almost a year >> me, too. >> i hate to see people lose their job. >> that's what we have in common >> it's indoor and outdoor i keep things in perspective we have 10 million more people in texas than you have in new york right now, for example, the state of texas has the second

lowest death rates of the 27 states that are testing positive for covid. so it is worrisome it's sad when people contract this we hate to see a single person die. if you get these things done, we won't see the rise in positivity rates 13% plus that we're seeing right now. >> you do have more people but texas has more space new york city i think we were learning a lot of lessons about how to handle this, how to deal with it. we have treatments that have come along like remdesivir hopefully we're better at doing this one thing dr. gottleib pointed out is death rate follows the case rate by maybe 3, 4, 5

weeks. it will get to the parents, grandparents because of the yuc younger people >> we're all afraid. the young people are hospitalized, tend to get out earlier. they're healthier unless they have preconditions exactly what you said, becky, is worrisome. infecting the elderly, like me, for example, i'm 71 years old. i'm in the target group. particularly those around their parents and grandparents once they p i can it up somewhere in a gathering or a bar and pass it on, that's what we're worried about. if we do, the contagion rate, we'll have to manage that accordingly. this as in all states, especially with this governor, i'm not a republican or democrat, all of that went away to the fed and i never have gone back, but he is remarkable in the way he's driven by science and mathematics.

he's a math wonk whenever i talk to him on the phone and we go through these exercises. yes, sir, yes, sir >> i just want to circle back to, a, what you said about new york and then to get to the governor as a new yorker, i do take offense to it and i take offense because frankly we were first in line as becky mentioned. i hope nothing bad happens to texas but they do have 2 1/2 to 3 months to prepare to take some lessons from the rest of the country and did not heed those warnings i think it's clear some of them may be in terms of where we are in the death rate, but the question i'd ask you is we're spending trillions of dollars to try to save this economy and yet you talk about the governor, governor abbott not requiring masks, moving faster than frankly the cdc recommendations even allowed for early on so why would you defend what the

governor has done thus far given where texas stands today >> first of all, in may we were down to 4% things were looking positive this started back in february. we were down to 4% today we're above 13 it is worrisome. again, i don't mean to criticize governor cuomo or over praise governor abbott. the point is, we don't want this to happen. if it gets out of control, we'll have to rein it back in. that's the only thing we can do. and the key thing whether you're a new yorker, new jerseyite, california, wash your hands, keep your social distance, wear your mask. beware this is something we don't fully understand, at least to be contained. again, i don't want to see a single texan, new yorker, floridian, californian, new jerseyite die or suffer. we shouldn't be rooting against

each other, we should root for a solution to come forward until we get that, to make sure that we practice the right practices. that's what this comes down to >> richard, we are out of time this morning go ahead >> no, no, please. >> your last point, go ahead and make that before we go >> i'm worried -- as you know, i spent an awful lot of time in new york city and i love that city i'm worried about the little bodegas, restaurants, bars what's going to happen here as we come out of this thing, people have to space things differently. the high density areas, houston, dallas, new york, chicago, as people reconfigure their firms and have less people flowing through those buildings, i'm very worried about the small restaurants. it's an incredibly dye ma'am mick

i'm praying for all texans, all new yorkers, everybody to come around and solve this. >> i any we all are. richard, it's really good to see you. we will talk to you soon thank you for your time this morning. >> first time i haven't talked about markets in a long time thank you. >> thanks, richard andrew coming up, thank you, becky, when we return, we'll be joined by the ceo of gilead his company releasing information this morning on how much the coronavirus drug remdesivir will cost he's going to talk all about it. you're watching "squawk box" on cnbc back in just a moment.

coming up, yep, gilead ceo daniel o'day on the pricing information on the drug, remdesivir stay tuned "squawk box" coming right back oesn't stop there we're also here to help look ahead

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welcome back, everybody. gilead setting the price of its coronavirus drug remdesivir this

morning. meg has a very special guest meg? >> that is daniel o'day the ceo of gilead. dan, thanks for being here this morning. a very important moment for gilead and the drug industry as a whole. one industry publication writing this is the moment that could define the pharmaceutical industry reputation for years to come you set this price in line with what a lot of people expected. you said well below the value the drug brings but 30% higher to u.s. insurers than to government insurers around the world in developed countries tell us about how you set this price. >> yeah, thanks, meg you're right, this is a very important decision for gilead. we have given consideral thought to at the center of all that thinking whether it was how fast we put the clinical trials together and the decade-long investment in antivirals and the donation program to get patients

access early and the same focus went into the price. although this medicine adds significant value to the health care system we reducing the hospital days, we decided to price this in this very extraordinary time in a unique way. we priced it at the price that allows for access across the developed world. and what we've done is we have one price for all governments across the development world based upon the lowest purchasing power of the countries and we provided that price to all governments around the world and that's important, i think. it's our responsibility and we feel it is the right thing to do >> tell us about your decision to set the list price 30% higher for u.s. insurers than for government payers. some are pointing out that u.s. taxpayers helped fund the nih trial supporting the data behind remdesivir's approval and why

set is 30% higher for u.s. insurance companies? >> for everybody's knowledge, for every medicine in the united states there are always two prices the government price and then there's a price for private insurers that's part of the system in the united states, which allows for required and expected discounts to the government off of every medicine accordingly what i want to assure you, meg, at both of those prices we focused on making sure that all patients would have access and based upon, you know, this price level. based upon the immediate savings to the health care that this medicine provides and based upon sales and whether you're covere by insurance, or government insurance, there will benot be a problem with access to remdesivir >> you're saying gilead needed

to take a different approach during a pandemic to pricing a medicine but did the middle man, the insurers, the folks benefitting from the difference between the net price and the gross price, they don't see the pandemic as a time when they need to be thinking differently about drug pricing? >> well, i think, i think the community at large is definitely coming together to think about how to make sure that patients with covid in the hospital system are well covered. and that's true from the government programs to the way the private insurers have approached this to the way the cares program is there for the uninsured patient population the way the research-based pharmaceutical programs if anybody needs support for their medicines, they receive it so, i think the system comes together the system, you know, is such that you do still have these two prices in the united states. but most importantly, i think the way that we price this assures that patients will have access to this medicine regardless of how you're covered

or not covered in the united states >> i want to ask you also about supply this is a difficult medicine to manufacturer and you've detailed how the company is working hard to increase the supply of it now you say you expect to have 2 million treatment courses by the end of the year. hhs is now saying that they expect to get 100% of your production of the drug for july. 90% in august. 90% in september does the rest of the world get access to this medicine? >> once again, meg, i want to thank the colleagues that i had the privilege of working with at gilead from the moment we knew this medicine might be effective in covid-19, we ramped up a supply chain that used to take 12 months from start to finish. now as we enter into the second half of the year we reduced that down to six months as we go into the second half of the year, we have kind of an exponential increase in supply,

particularly starting in september, october, november, december of the 2 million treatment courses cumatively that we ex ect to have by the end of the year, most of those will be available starting from september on in the next several months where we have the greatest need in the developed world where the medicine is currently improved is here in the united states it makes sense to put a large portion of our supply to work for u.s. patients right now. and as we go into september and beyond and we see where this disease goes in the developed world, we'll be prepared with the supply that allows us to make sure that countries have what they need >> i want to ask you also about the -- sorry andrew, go ahead >> no, go ahead. >> okay. dan, i just wanted to ask you about whether you expect to make a profit on remdesivir you say gilead is expecting to

spend up to a billion dollars doing all this manufacturing and development, would you make a profit this year on the drug >> well, meg, i think that's a good question. at the end of the day, we're well aware of our dual responsibility here number one to price it for access we really wanted to make sure immediately when countries have approval for this medicine that price in no way got in the way of patients receiving the medicine, which is why we priced it at a level for the, if you like the countries with the least purchasing power and gave that to everythi price to take away the government price discussions that exist accordingly. and at the same time, we understand we're at the beginning of our investment in remdisivir based upon the three trials this has shown a significant effect in hospital patients, but we want to continue to see how we can increase that effect by combining this with other therapeutics and bringing it earlier in the disease and now we're just going to be beginning our studies on the inhaled

version of this medicine so that perhaps we can get it outside the hospital we're well aware of our total responsibility here in terms of our ability to invest for access and continue to invest accordingly for the future of this medicine for the pandemic >> all right, dan. we really appreciate your time thanks for being with us guys, sending it back to you >> want to thank dan want to thank meg. make sure you join us tomorrow "squawk on the street" begins right now. good monday morning. welcome to "squawk on the street" i'm carl quintanilla florida, nevada, georgia, along on the hill tomorrow jobs number on thursday. oils near 39 and ten-year 63

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