>> yes, thank you. good tuesday morning, everybody. welcome to squawk alley. now new headlines from leader mcconnell on what the republicans in the senate are looking for in terms of covid 5 stimlouse. >> that's right the senate majority leader laid out a outline of what republicans inextend to propose on his steech this morning. he talked about $105 billion for education that would be separate from additional childcare incentives he says he supports another round of direct payments and a targeted round of ppe. he wants to see incentives to hire and retain workers as well as additional money for testing. just as important as what he talked about is what he did not mention. that includes a boost in

unemployment and he did not talk about a payroll tax cut. we know many top gop senators are not big fans but lindsey graham, a republican close to the president said he had dinner with the president last night where they discussed the tax cut and that he will be fully supporting it. he did not make those top line priorities that mcconnell laid out this morning >> is it fair at this early stage to argue that for mcconnell the red line is liabilities protections? >> that is right, i should have mentioned that as well, carl he said that is essential that businesses and schools can open up safely and any gains that the economy sees is not eaten up by trial lawyers putting ft. worth frivolous lawsuits

that remains critical to republicans as well even as they start those conversations. both among themselves and with democrats about what should be in the next round. >> thank you our next guest has been busy in the last couple days not the least of which was his call on amazon the lead internet analyst heath terry helping us kick off the hour great to see you as always >> great to see you, too you were busy in front of the netflix print. you raised your numbers at large. what are you seeing fundamentally. analysts are at this point simply chasing price i according to some. >> as much as we can that is what we're trying to avoid we're looking at fundamentals

here year over year growth in may 20-year-old plus companies like pap paypal and amazon doing triple digit growth in this environment in things like app downloads or payment volumes. even for short periods of time like that, for us, we're trying to answer the question that everybody is which is how much of this is sustainable we think a significant part of it is. and that is what we were trying to get across in our netflix and am z am z am z amazon >> what happens to all of the hand ringing that we did, say last year, regarding anti-trust investigation or potential scrutiny as it all just melted away

>> no, you know, i don't think it has i think those are all things that we have to keep an eye on but they're part of a much, much bigger picture so while it is a concern and something that we have to watch, it certainly gets overwhelmed by the critical role that amazon has come to take in people's daily lives in thinment and what we think will be sort of the sustainable connection that people have with amazon, even more so than they did before this crisis particularly when we take into account the impact this has on traditional retail you and i have talked about this a lot before, but we saw record levels of store closured in 2019 and 2017 you can imagine what that will look like in 2020. we passed 2019's levels.

we're just sixth mon months inte year and it drives more to amazon, and we're also seeing it all in their aws business because of the work from home, business continuity, and the role in helping businesses get through the challenges they're dealing with in this kind of crisis >> good morning, heath this is john fort. i have a question not specifically about microsoft so much as microsoft as an example. that company is less than 3% from it's all-time highs and it is shutting down it's physical retail shutting down it's game streaming. cutting 6% now from linkdin. a lot of that touches internet and a lot of it, many of us thought, was strategic and

microsoft could afford to invest in certain things. >> sure, i think it is an affirmation of what we have always seen in internet which s is -- don't want to say winner take all, but the network effects in this space are incredibly powerful. the leaders in this space, amazon, e commerce, cloud, facebook and social or google and search, they're very hard to dislodge if you're number two or three, if you're not there trying to catch up is difficult. i think the retail decision they're making is the same as every other retail decision being made which is just the landscape for that that will look dramatically different in the future than it has in the future in the last two or three years when companies built out there and their retail footprint and i think it is one of focus

these companies, particularly big companies, like the ones we have been talking about do try a little bit of everything in times like this when certain things are working and certain things are and we become capacity constrained if in no other way than just managerial time and talent, focus ends up being a smart choice and i expect th suspect that is what you're seeing for a lot of the companies. >> you said it might be hard for smaller companies to catch up, you're not bullish on facebook but you are on snap and twitter. we get twitters earnings on thursday morning, how do you see those who players, or even

pinterest. >> we're by rated on facebook, twitter, and snap. we're largely seeing an increase in usage over all. and for advertisers the time on these platforms become really the only way they're able to reach the consumers they want to you think about the alternative channels or what is happening to linear broadcast cable television we are still seeing declines in this environment i think at some point advertisers, and i think advertisers now are waking up to that in a way that is beneficial for these platforms. facebook has been benefitting for a long time, but playing

catch up from a modernization and a technology standpoint and snap is the best example of that twit twitt twitter has a way to go, and we think they're making a lot of progress there from a stock price the bar is lower for them which is one of the reasons we like that stock as much as we do even though they have a lot to catch up on from an execution standpoint >> yeah, sort of reflective of other short-term calls on twitter today. finally, heath, it is fair to say that you're relatively unimpressed with online travel is that part of your belief that corporate travel has changed for years? >> yeah, you know that is a big part of it these were -- online travel was a very challenged business before coronavirus you had google and facebook on one side, and then you had the

suppliers, particularly the hotels and the airlines making it more and more expensive for them to acquire the room nights they needed for them to sell to the customers that they did acquire. so we were looking at expedia and trip advisor, for booking who is the best in that space, you saw that play out for them and then we get into coronavirus and this environment that we're in now where you're right, there is long-term damage done to the demand for corporate travel. and people will say the otas don't have a lot of corporate travel business they don't but they are dependent on helping set pricing and lodging, and if you don't have that degree of command out there, it will be

lower. we they will be a challenge for these companies to get back near the levels of profit ability and growth they were seeing in 2019 and you look at the stock price rebounds that we have seen since march. they just don't seem to be reflecting that outlook for us we think there is better places to be in internet. >> >> we have been talking about your calls for a long time peer. nice to finally talk to you. hopefully we will talk again soon >> up next, sacramento kings co-owner paul jacobs will talk ony,ndrestarting supporports, te ecom a helping combat the coronavirus. that is next, stay with us

major league baseball is making a return and doing so with the help of boldfaced tech names. >> that is right, it will look different this season with the help of tech par nothing furthers including apple, google, sony, and snapchat for about $100 you can upload a photo with a mobile app and have that turned into a cardboard cut

out of them. recouping lost money will be a key theme this year. rather than physical signs in the stadium, certain ad images will be virtually project d on to the screen. for example in this gatorade gatorade logo. they're requiring teams to play audio that would mimic the audio crowd noise. audio was created for "the show" video game fans at home can get in on the action you can cheer and boo from your couch and have it relayed in realtime every coach and player will have personal access to an apple ipad with preloaded video for use during the game, advanced scouting reports, spray charts, and some of that is being opened

up to fans to let anyone create their own custom highlights to share. >> hopefully there will be virtual heckling >> the restarting of sports just one of many topics we can touch on former chairman and ceo of qualcomm paul jacobs joining us. good to see you. >> it has been awhile and i guess we will start with sports. i imagine that you are thinking quite a bit about that how do you assess the state of things with the nba right now both the cultural and health challenges and the operational challenges of getting a seen started. >> we will start tomorrow night and i think the league has done

an amazing job i think they're somewhere safer than in normal life. they're there being tested so that will be exciting i think the fans like you were just talking about, that is something that we will all deal with it will be exciting. i think that people will be happy to have nba basketball back >> let me go tech with you 5g that transition, it is expected to be a major year for setting that up and maybe getting important hardware for the likes of apple what has the pandemic done to the prospectprospects. do you have a sense yet? >> to the extent that it gives

you better pan width then i think it will help one of the things that we're very concerned about in the tech industry and broader is increase the personal divide. making sure that everyone has part of that that is a key issue. what rp some of the capabilities for closing the digital divide or what you think will benefit from the digital acceleration that we're seeing as a result of covid and lock downs >> i think all of these issues, and living some of the science, and cars driving autonomously,

and one of the areas that i'm very involved with also is a company called heal and we're using remote monitoring of people if you monitor people with hyper tension, just by having the doctor be able to connect virtually to the person all of the time those applications are cool. we thought about a lot of sports applications and my company xcom that is doing wire less technology we were looking at sports betting, augmented reality in the arenas, and i think those things will. all of these trends that are going on and all of the science fiction ones >> i just want to return to y r

comment about heal it is telemedicine and at-home doctors visits how do you see it evolving as everything going on with the pandemic the problems rather than helping people with covid heal >> it is absolutely about providing all of the health care that people need and we do it partially through telemedicine and house calls as you said and we have remote monitoring so we can continuously watch the patients as well telemedicine when things happen and lock downs happen, switching over to predominantly telemedicine we were about 70% in april people are starting to have more doctors come back.

you can see all of the kinds of things and what medicines you're taking, how you're living, are there risks. they have other issues that you can see if you go into the home. so we think that is super important. it will be a mix of the three things the telemedicine, house calls, and remote monitoring. and it will improve people's lives, they will feel better, and it will cost people less >> paul, i want to ask you about cities their tax base, and local businesses in this pandemic that we still find ourselves in and i know through qualcomm and the other businesses you have been quite a business and your family has been in san diego for quite a while. what are the challenges that you see that cities a facing with

their tax base, revenue base what are they going to need from the federal government or the business community to come out as strong as if not stronger than they were before? >> i mean it is definitely a tough time economically and i think we want to avoid as much shut down as we can. that means wear masks, do those kinds of things. in terms of certain businesses that rely on people being indoors. san diego has allowed restaurants to be on the sidewalks. and we know that people are

creative in terms of support we know it is important the federal government can print the money and california we have a balanced budget. so it is very tough when you have to do that and to see that much revenue base go away. and we'll have to muddle through this thing we'll get to the other side. bij challenges for all sizes thank you for your perspective >> thank you in the meantime, an interesting new indictment >> the justice department is accusing two of taling intell t intellectual property. they didn't say what people were targeted, but they stole millions of dollars of

information from all over the world. not just in the u.s., but australia, germanys with a, and australia. they include a california gaming company, a u.s. educational software company and a software firm this started in 2009 they said they stole terabytes worth of information they know they're tracking down on cyber espionage we'll see if and what they say about this new indictment. back over to you >> thanks so much. very interesting i will be interesting to hear what those numbers are been marks are mostly higher. the $2 trillion package will include loans and grants for

countries in sectors most impacted by the pandemic "squawk alley" returns in two "squawk alley" returns in two minutes.

(music) anncr: give customers access to precisely what they want, when they need it the most. with adyen, the payments platform that delivers convenience for all.

adyen. business. not boundaries. bill deblasio says he will take trump to court if he sends

the military to his city he says he doesn't take the president too seriously because he bluffs and blusters they are raising this year's total. tailored brands are laying off a fifth of the workforce due to the pandemic >> and win dixy has reserved it's policy. it initially said it didn't want to confront it's customers "squawk alley" continues after this

we had ibm yesterday after the close, today it is snap after the close. let's break down a big week for tech earnings.

hey, bob >> hey, john, how are you doing? a lot of people don't get why the mega caps and tech are generally outperforming. one simple answer is the earnings picture is a lot brighter for them than for more cyclical names, so you just take a look and they have 41% decline in earnings for the second quarter and that is a huge number tech will not see anything close to those kinds of declines those are not much better and the margins are also continuing to hold up very well what is moving them besides the good tech earn agos. there will be a vaccine that happens in the year. the economic bottom, and finally the closing if it turns -- if it comes out of the reopening story

there will be more progress. the market is saying the reopening story is getting stretched, not closing, but june 8th was the opening. we're back to the mega cap names, amazon is up 70% for the year, but not just mega caps they have all benefitted since that june 8th top. they believe they will do well regardless of the story. this is just since june 8th, folks, moves on the upside there. those benefits if the reopening goes smooth are generally down in the meantime, in terms of guidance, we're not getting much here ibm didn't give any giesz. they said we'll re'sal way in 90

days uncertainty in the economy makes us unwilling to provide guidance we're hearing this from a number of companies once again here coca-cola also declined to provide guidance phillip morris is also up. talking about the possibility of resuming buy backs saying the credit losses would be higher than in the second half and these are all trading to the upside today bottom line is even if the reopening is rocky and it is indeed, they believe in the power of the federal reserve and the congress to provide stimulus, back to you. >> certainly we expect to hear a lot of companies say they have lack of visibility, not so much guidance coming up, the reddit ceo. llntent moderation in silicon vaey, don't go anywhere, back in just a moment

the debate of content moderation rages on in silicon centrally. steve huffman joins us now >> so you banned about 2,000 different communities including "the donald. a number of the communes have been accused of racism, hate speech, and violent comments for so long. why did you wait so long >> this was the late nest a seri -- late nest in a series of moves the last five years. we have updated all sorts of our

policies but we wanted to be very explicit about now allowing hate on reddit. we banned the behaviors that it leads to we thought that was a more objective way to proceed a the gaffes between our value and our own content policy we want today be clear about what behaviors and what is prohibited on reddit their concerns about whether or not their ads are next to offensive content or incendiary

content, what was the concern. >> it was purely driven by our own values, every advertiser, that we talked to and every conversation as a conversation about brand safety where they're adds will appear and we want to make sure that our customers ads are appearing where they want to, but what is most important to us is that our users are having a safe experience people come for all sorts of reasons. talking about interests, passions, vulnerabilities, if there is behavior or speech that sort of speech will not be allowed on reddit it is actively working against our mission. >> it is john, reddit was a free wheeling place it was operating under the idea

that the solution to bad speech is more different speech i think there is other appropriates still working on that what is the new framing for speech on the internet open and authentic discussion is's a core and essential part of reddit. reddit was built in the united states where free speech is one of our founding values one of the things we have come to look at is the trade off between speech and speech. speech that limits other people and that limits reddit from using the way we intended. on reddit this is not a them bd

harassing others which, how do we involve our policies to advance our mission. how does that happen, steve, maybe this is an overbroad question i hear about bullying and harassment from both ends of the political spectrum is there a role for written forums which is what reddit is in showing the way toward more civil discourse? are there different features and ways to stein or structure to promote that it is not just part of getting their decisions, a big part tof is through our users they are upload and download on

reddit and they enforce the unwritten rules, if you will, the same as the unwritten rules in society, common basis decency. we also have the moderators who are the users that create the communities and that layered approach and sharing the and sharing the power of making these decisions across the entire user base we believe saling effective moderation online. redddit is a private company, you don't share financials can you give us a sense of how much your revenue or user engagement has been impacted by these changes around policies, trying to crack down on hate speech, have they responded to that or just throughout the lock down period of the pandemic have you seen a shift in usage.

>> the policy changes don't generally affect our numbers on that type of a time scale. achieving our mission will everything they are thrashing this year that seems to be recovering, of course that is, i'm sure, everybody coming on here saying and we will just do our best to roll with the punches. finding new things to do and learn. i mean excite simply looking for community when people need shelter. so we have seen our business shift quite a bit and to what extent does it remain to be

seen >> a head wind in the market and i will be interested to see how some of those play out thank you for joining us >> when we come back world renowned chef wolfgang puck will join us. don't go away. ♪ come on in, we're open. ♪ all we do is hand you the bag. simple. done. we adapt and we change. you know, you just figure it out. we've just been finding a way to keep on pushing. ♪ hey, our worker's comp insurance is expiring. should i just renew it? yeah, sure. hey there, small business owner. pie insurance here with some sweet advice to stop you from

overpaying on worker's comp. try pie instead and save up to 30%. thirty percent? really? sure! get a quote in 3 minutes at easyaspie.com. that is easy. so, need another reminder? no, i'm good. reminder for what? oh. ho ho, yeah! need worker's comp insurance? get a quote in 3 minutes at easyaspie.com. save hundreds on your wireless bill without even leaving your house. just keep your phone and switch to xfinity mobile. you can get it by ordering a free sim card online. once you activate, you only have to pay for the

data you need, starting at just $15 a month. there are no term contracts, no activation fees, and no credit check on the first two lines. get a $50 prepaid card when you switch. 5g is now included with all new data options. switch and save hundreds. xfinity mobile.

robert freddie mac explains. >> new york is facing a $13 billion break. they want a billionaire's tax. it would be a mark to market state residents with a billion or more in e assets pay an 8.8% tax. so if mike bloomberg's stake increased by $50 billion he would pay over $400 million. that would go to a new unemployment insurance fund for those impacted by covid. aoc told governor cuomo to stop protecting billionaires. they said the best solution is a federal tax hike on the wealthy, but if you tax wealthy new yorkers they'll move to lower tax states calls for a federal tax hike on the wealthy also likely to grow as spending increasing and the

wealth gap widens especially with tech billionaires, jeff besos who is up $75 billion just for the year elon music adding $6 billion on monday he is up now 47 billion for the year and he just passed larry page now the google guys are kind of old money in the tech world. >> the lifestyle reasons to stay in new york, stronger than a few years ago. august 12th, do not miss the cnbc small business play book summit taking place virtually this year, of course gathering the most trusted named in the business on how to survive today and thrive tomorrow as the pandemic continues to ravage so many industries wolfgang puck joins us on the other side of this break 'rba ia ment

our next guest is an actor, restauranteur and perhaps the world's most famous chef wolf gang puck on the counsel of reopening. he warns a quarter of restaurants may never reopen because of the coronavirus pandemic he joins us now. great to have you. good morning >> thank you good to be with you. >> last time we had you on, you gave a great sense of the challenges facing the industry, some policies you'd like the see to help bolster it but we're quite a few more weeks in now

and the challenges, in many parts of the country are intensifying what's needed now? is it a question of saving some of these restaurants that are going to shut down or question of figuring out how to help new ones open up on the other side >> i think obviously we try to save what we have because there's so many family restaurants out there who are making a living in their small operations we are lucky we have a few more restaurants. but i think so many hundreds of thousands of restaurants won't be surviving i think if we can continue with the payroll protection plan that might be first step where we have actually restaurant owners and restaurant businesses to stay in business instead of just giving people unemployment the federal government gets everybody $600, there's no incentuinse incentive for these people to come back to work.

i believe the payroll protection plan is an important part. for the sfraunts industry, if we can get a stimulus going and i talk to the president months ago to roll back the entertain m taxes so that way people will go to restaurants i know that some democrats out there will say that only ben if i wants the rich, but no, the more people come to the restaurants, the more people we can employ you know the restaurant is the biggest employer outside the government we employ 15.6 million people. you don't have managers. you have busboys, diswashers they all need a job. i think if we get the stimulus program, that will help people spend money in restaurants it's also a trickle down affect. we go to the farmers market and the fish market. we support the farmers,

fishermen, the people who deliver. it's a whole industry with millions and millions of people walking in >> wolf gang, couple of questions. how effective has outdoor dining been in terms of a band aid on all of this and seasonally, how far do you think that can be used as a substitute as we get into the winter? >> let me tell you, in southern california, obviously out door dining we're lucky the temperatures it's not too hot, nod too cold. it doesn't rain. we're opening in new york tonight. we we speak we're getting ready outside. if there's a thunderstorm coming up, i have to get enough and everything it's more difficult and more complicated so we can take enough reservations or so forth.

i think it definitely helped in certain places you'll say i have a restaurant with no outside. i have no possibility. these people have to be shutdown it's very difficult for them to say okay, somebody's open. somebody not just because they can put the tables in the street we have, for example, the belair hotel. normally we'll be upset in the winter time. people complain it's cold. now they think it's the best place because people are safe. the employees are safe because we keep distancing i think that's an important part for all the restaurant owners out there. keep it safe.

we really have to figure out to really listen to the scientists and think, okay, let's all be on the same boat and follow the same rules >> i wonder around the issue of capacity constraints when you think about limits that restaurants can only have 50% of their regular capacity do you think that will prevent you from opening your restaurants. it's a challenge for the small businesses after what point will that prevent restaurants from being profitable >> we have a lot of restaurants in hotels. downtown the four season hotel twoun new york the hotel is not open but we are open obviously, we're going to get customers from the hotel the same thing happened here at the beverly wilshire

i don't know when they will open it's really difficult to fill up a lot of this restaurants. you know, how we're going to manage to make a profit or just to stay afloat, i would say with half capacity. we have to cut down on the labor. we cannot hire everybody back. that's why i thinkgetting a stimulus going for the future, at least we see the light at the end of the tunnel where we can say the government is helping us then another thing is we have business interruption insurance.

>> are you seeing or thinking about any promising new models i'm thinking about ghost kitchen or premium inside experiences where people are willing to pay. you know you can have a sustainable business based on that anything like that bubbling to the surface now? >> we do take out in our restaurants. i cannot run a ghost kitchen out of say spar goe where we have 30,000 square feet it's too expensive to operate just as a kitchen. now, inside we cannot use the restaurant really. we are lucky we are in july august, coming up.

come the fall when it starts raining a little bit, when it gets cold, we really have to figure out something and maybe then we're just going to put a few tables maybe we have to charge more money. there's always a problem the more money we charge, the less customers we're going to get. there's always an assistant to the price and especially now we have businesses are not doing as well if the neighbor has a good business, a real estate business, they don't sell a lot of houses or commercial properties, they're not going to come and celebrate at the restaurant i think this whole thing is hanging all together and it's a trickle down effect. we cannot just say we're going to raise the prices. what we going to give the customers. they want value. they want an experience and that's what we try to do i tell all my waiters, people want an experience when they come to our restaurant we have to smile, no matter if we have a mask on or a shield.

we have to smile with our eyes to make feel people comfortable and people feel safe, which is even more important. >> thanks for the time thank you so much. >> thank you we'll especially up as much as we can >> really quick. i know you had some thoughts on roku >> shares are up they released a study finding that cord cutting is at a milestone. nearly as one in three households are cordless now. we'll see how that's reflected when we get at&t earnings later

the week carl yeah, all right. thanks for the assist today as always we'll look for united as well and scott on squawk box in the morning. let's get back to headquarters and the judge with the half. thanks so much welcome to the halftime report our top story this hour, tech's incredible take off and whether the nasdaq historic run has gotten too hot to handle we'll debate that this hour. the nasdaq inching closer to 11,000 it's been a stunning run that has some now wondering whether tech is getting closer to a top. jim, we kick it off right there. nasdaq is going for it