>> we sure hope not and we're going to do everything we can to prevent it from changing we're hoping putting stock in every person's hands who works in the business puts everybody on the same side of the table and there's even more cohesion and increased focus on culture. >> that's right, ecky. i think getting the right investors is critical. we've explained who we are, our isms and our culture they embraced it we think we can strengthen the culture as we continue to move forward. >> culture is just another way of saying who you are and what drives you and how you prioritize things. >> right thank you guys for having us this morning. >> thank you. >> appreciate it. >> thank you for enjoying us on this important day we'll be watching. >> appreciate it. >> that does it for us today make sure you join us again tomorrow right now it's time for "squawk" on the street.

. good thursday morning. welcome to "squawk on the street." i'm carl kint nia and jim cramer still over 1 million for the 20th straight week ahead of the jobs number. leader mcconnell will join us on the stimulus talks that continue on the hill followed by speaker pelosi later this hour, jim, as we continue to get reports that the two sides are trillions of dollars apart. >> yeah. this is a day where we have to find out in our interviews whether there's any hope for compromise because if there isn't, you're going to see a full open business that will make the unemployment numbers very rear-view mirror. a lot of people recognize that they're trying to figure out, is washington playing partisan politics do they genuinely want to deal maybe they don't we will find out during this show. >> you think we'll find out? >> we'll talk to mcconnell

first, jim. >> yeah, i do. >> a billing part of that is sort of the fragility of the republican caucus. as mcconnell has said this week, jim, he has 20 senators who feels we have added enough. >> there as a problem. a vaccine is coming. david, if we get antibodies, if we get a therapeutic, i know you're more sophisticated than the general discussion. >> thank you. >> maybe we are in the promised land, but if we let everybody go, david, if we let everybody close, you can't just restart it there's no switch. there's just the end the question is like kevin o'leary said, is that okay is it okay to ends, david? >> i'm not quite sure i follow exactly what you're saying. >> you can't start a business after you stop it. >> the point is you have to keep it going >> yeah, you owe too much.

how much forbearance are you going to get >> the point being we need more government aid to continue to allow businesses to stay open in some fashion >> we need rent money. when i think they're going to let it go, i think would fdr let it go? was that fdr's plan? look at the jobless claims aren't they more fdr like than, say, johnson like or w like? >> they are the worst we've s n seen -- there's a big gap between 1 trillion you said yesterday you think we're going to get there, at least in terms of $400 i believe i heard you say that. >> senator mcconnell who we'll have in a few minutes, carl, is saying -- he's open to a 600 you're absolutely right, carl,

the main thing is to deliver no senator will come on here and say, i don't have the votes. geez, maybe he will. we can't have this go on forever and just have -- the president is going to do an executive order if we don't do something i don't know if that's legal or not. the president -- that's never really -- that's never stopped the president. though some, jim, might ask, what would be wrong with him trying >> nobody's going to stop the president giving money to people who's going to do that hi, i'm president trump, i wanted to give money to you and i wasn't allowed to. that's why they should do that there's a guy biden running, he doesn't have a lot i represent a party that fought so hard for you to get -- to make it so you don't get benefits that is -- i don't know, david,

is that something -- carl, is that something that biden can run on i fought hard for you not to get money? even nixon didn't go there >> jim, let's stop talking amongst ourselves and bring in leader mcconnell great to have you back, good morning. >> good morning. >> can you give us a status report >> yeah. the talks continue the one thing we agree on, most of us at least, the economy needs a boost. the chairman of the fed thinks so the secretary of the treasury thinks so and i think so what we are arguing about is how much i heard you talk about it earlier. they put together a $3 trillion basically liberal wish list that we think of far beyond what is appropriate for this situation

which, you know, some of my members think it's too much. it's about 1/3 of that targeted in the following way. kids in school, jobs, the popular ppp program, health care, hospitals. and most importantly, to help the economy get back on its feet, liability protection for everyone dealing with this disease narrowly crafted for the coronavirus only to preserve hospitals, doctors, nurses, universities, colleges, k-12 from being hit with an epidemic of lawsuits on the heels of a pandemic which we all know is not over >> so to that point on liability protection, which is obviously a huge interest to our viewers and investors around the world, how important is that still and how much stock do we put in that the white house would back a deal

that doesn't have it >> well, look, i think we have to have liability reform i don't think the economy has any shot at all of getting back to normal if every entity in the country is dealing with a frivolous lawsuit. now, look, what i've proposed would not protect somebody who's engaged in gross negligence or intentional misbehavior, but everybody else struggling with this unknown disease should not be subject to getting sued over how they handle it as an aftermath while we're still struggling to get past this horrible pandemic. >> the times today writes about you. they say, mcconnell is outside the room, meaning taking a hands-off approach given the fragility of your caucus do you agree with that point of view >> i'm certainly not outside the room

the discussions are going on directly between the treasury secretary, the speaker, the democratic leader. they come back and they report to all of my members nobody is being left out of the discussion the argument is over how muchi appropriate at this particular juncture as we struggle to get the economy back on its feet in a place to help themselves until we get a vaccine which at the earliest is later this year or earlier next year. >> mr. majority leader, jim cramer great to see you on our show thanks forcoming on. let me ask you, if the parties cannot agree on a way forward, how about we tell your governors, do what you want, open all the states, open all the schools but everyone must wear masks until we get the vaccine. why don't we do that why don't we do that, open it up but wear masks >> jim, i've been promoting mask

wearing, we've been doing it in the senate since the first of may since we resumed in person sessions it's the single most significant thing everybody in the country can do to help prevent the spread wear a mask, practice social distancing dr. fauci indicated we can't shut the economy down again. he's absolutely right. we have to live in it, work with it until we get a vaccine. what you've just suggested is extremely important. i don't think wearing a mask and social distancing alone is enough i share the view of the chairman, the fed, the secretary of the treasury that we do need a boost. we'll resolve our distances in this political tug of war and get back -- and get something done for the american people. >> would zero unemployment benefits be better than a compromise >> well, look, i think we should not continue to -- the process of paying some people more not to work than to work

i do think we need to adjust whatever unemployment compensation bonus there is to reflect it's not fair for your neighbor to stay home and make more and you go back to work and make less. it is a drag on the economy. basic unemployment is extremely important. we need to help the states be able to maintain that but we need to discontinue paying people, in effect, a bonus not to work. >> i have to tell you on this liability insurance as a small business person, we just presume we're going to get sued. we've been sued before for things that are federal. and we're just trying to figure out whether it's worth it. since we know we're going to get sued, why reopen where is washington on this? >> well, i think you can be assured if my provision passes, somebody may file a lawsuit but they're not going to get anywhere with it and you're not going to have to pay them

something to go away because unless they can show gross negligence or intentional harm, they won't be successful. >> one of the key gaps between the senate plan and what the house has passed is aid to the states we're talking $1 trillion in the house bill why are you opposed to that? >> well, here's what we would do only 25% of the 150 billion that we already sent out to states and localities is actually being used 75% of the money we've already sent hasn't been used. what we would do is take the restrictions off except you would not be able to use this money to bail out your ailing pension system take the restrictions off that they're complaining about, let them spend more of what we've already sent them and also the biggest item in every state budget is education. we actually have more in my proposal than the house democrats did in their proposal three times as large as ours for

education. that helps the states enormously. >> what do you say to your home state of kentucky which is facing a $1.1 billion short fall for this fiscal year and the governor talking about state agencies facing cuts from 16 to 29%. i might add, by the way, kentucky at least according to the chamber of commerce is ranked as the worst funded pension in the united states. >> we're not going to help kentucky or any other state with their pension problem. unfortunately, kentucky has only used 6%. 6% of the money we've sent down to them and their budget for the current year ending june 30 was balanced so they're not in an immediate dire situation and they're going to benefit from the flexibility we're going to give them to spend the money they haven't spent so far 94% of the money they got they haven't spent and enormous slug for k-10 education and colleges

and universities which are the biggest, second biggest part of every state budget in america. >> you know, leader mccobble, wh -- mcconnell, what chances do you give that as of tomorrow is friday this thing could fall apart, not get anywhere. where do you stand in terms of the chances you could give of reaching a deal in the next 24 hours? >> yeah. i'm not going to speculate about the timing, but what i do want to reassure the american people is that there is a desire on the part of both the democrats and the republicans, at least most of the republicans, not every single one, that we get to an outcome because the economy does need an additional boost until we get the vaccine exactly when that deal comes together i couldn't tell you, you about i think it will at some point in the near future. >> mr. majority leader, there are businesses that absolutely had nothing to do with the pandemic they were doing quite well that are being wiped out there's just no doubt about it because of social distancing

there's no way that they can survive so why can't we just target that? why not target the businesses that have millions unemployed, just look and decide these are the businesses that are failing through no fault of their own and give them business interruption insurance like secretary mnuchin said would happen at the beginning of this? >> well, we've certainly targeted small businesses. the popular ppp loan program, which expires at the end of this week, and we think desperately needs to be renewed, has been enormously successful. give you an example, in my state, $5.2 billion has been loaned out to over 48,000 kentucky small businesses who have been able to maintain their employees. obviously the overall unemployment is still way too high but the ppp program, which is not in the democratic passed house bill at all has done a great job to help small businesses struggle through this and not close their doors.

>> leader, you pushed back hard on the idea that the senate waited too long, that you waited too long to put something on the table after the house passed heroes in may. do you still feel that way here we are talking about all of this urgency if we could go back, would you put something together a few weeks earlier? >> not too late. this is the perfect time to take a look at it we had no idea back in april and march what the economy was going to look like in july now we're in july and early august we've got an accurate picture what we've done so far, what worked, what didn't, and the condition of the country and now we can more accurately craft a proposal to deal with that because bear in mind, we have already added $3 trillion to the national debt back in march and april. we already had a debt the size of our economy for the first time since world war ii. i think that's no small matter

that's a big deal. and so we need to be careful about what we do next and that's exactly why this was the perfect time to tackle this issue. >> so when you say -- you said to politico that those earlier deals created a unity that i don't see there now, it sounds like you're part of that school of thought that feels like we might have done enough or as much as we can afford to do. >> no, no, i think we need an additional agreement -- an additional deal. i agree with the chairman of the fed, secretary of treasury i'm advocating an additional deal i've got members, some of whom have been on your network this morning, who think we've done enough that's not my view. >> leader, we appreciate it. obviously the market watching very closely any kind of developments and guidance you can give us. thanks for the time. good to see you. >> okay. thanks a lot >> senate majority leader mitch mcconnell. jim, what do you think we didn't really get to -- one

last thing i wanted totouch on was whether airlines was a real sticking point here but the idea did seem to back they would get 25 billion in additional aid. >> we're very close to the airlines being able to make it these are all who gets to cross the river jordan, and i really think we're closer than people realize. very few did i thought that senator mcconnell was open to something that would be not that far away i don't know if the liability insurance is a real sticking point given the fact that that and rent are the things people worry about. they're sued the moment someone gets the disease at their establishment even though they may not have gotten there. there are some people, some people call them ambulance chasers, willing to take on all small business wherever someone got covid. i have to wonder again when i

ask the leader if we're going to get nothing, if we get nothing, why don't we just open it up and wear masks and hope for the best and believe that we get a vaccine? i say that because -- if they don't open up, we're dead. >> it's interesting how your position has evolved to a certain extent over this over the months that have played out, jim. i couldn't imagine you saying that three or four months ago. maybe you're right i don't know nobody knows i'm not sure we want to take that on. it's interesting as well, guys, that there's so much concern now about a national debt that has continued to go up we were running a trillion dollar deficit before we added 3 trillion nobody seemed to be concerned about it then. they are now >> guys, a lot of business news to get to, so to speak we'll get to viacom, roku, etsy. we're back in a minute when the world gets complicated,

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time for mad dash. let's get ready for opening bell i'm going to toss it over to you. >> bristol-myers has been stuck in a rutt between 57 and 59. they won an important judgment in favor of them having patent excludes sift for eloquis which is an amazing stroke drug or

because they got some up side from what they bought when they bought celgene or perhaps that opt divo which is their cancer drug versus key trued da is doing better the stock is up and it looks like it might be breaking out. it is not involved for the race for the vaccine. that's what everyone is focused on if you are a drug company david? >> carl? >> are the will oo all right we'll take a quick break here. squeeze in another one e f time in the back half o thshow for speaker pelosi. "squawk on the street" is back in a minute.

viacom cbs on. we'll talk to bob bakish bk aomt.ni on this morng beacin men

futures a little bit soggy the number is a million plus for the 20th straight week adp miss still in contraction

what does that mean for tomorrow >> when i listened to senator mcconnell and note that we may not have a deal, what it says to me is there was a lot of let's say pent up hope we're getting closer and closer to a workable vac soon and the other is a workable deal if we don't have a deal we have to have a selloff. david, i don't know how far apart you think they'll be if we can't get a deal it can't be the same as getting a deal. >> no, it can't. it would be a significant blow to this economy, we all know that, jim. we're looking forward to your interview with speaker pelosi. the numbers indicate they are far apart but there is area for compromise one would expect.

there are a great many millions and millions of people who are depending on that. >> carl, most of the companies that are rallying are companies that serve the larger enterprises that make it move to the cloud. auto is very, very weak. we need to see ought totautos. we've had housing move we're going to watch this rocket deal, that will be very important. what we don't have is a consensus about large industry and how we keep it going and if we lose -- if we don't get the autos going and get small business crushed, i don't know, we don't have aerospace yet. if you don't have a deal for the airlines, what is working? lennar and toll brothers we need more than that. >> that's a good point used car dealer inventory is i think below 2 million or something. look at carvana last night

there are not enough used cars that's in large part because we're not making enough new ones. >> yeah, i know. >> we're expected we're going to have a larger build in the fall. we need to have that we have to have airlines get moving for heavens sake. we can get it. don't let it not find a way to get there. >> guys, there's rocket companies, parent to mortgage lenders quicken loans celebrating an ipo we'll talk with the ceo. at the nasdaq. ecommerce platform which had its ipo yesterday. jim, a lot of names that have done really well the past month. etsy opening in the red. why is that? >> well, i think these have all run to the point where they beat and raised dramatically. they sell off. now there is a second day where people say, what the hell did we sell that for? that was a big mistake

i have that ceo on tonight i'm quite confident they can continue to do well. carl, there's this under current to the market. it just started developing this week, which is that maybe in the fourth quarter we have antivirals and we have vaccines and we wear masks so we don't need to necessarily stay in our home anymore etsy is a stay at home situation. david, there is less fear because there is more hope and i'm not saying that bridges the gap, but i'm saying with masks, we'll travel >> right you asked the leader that question and the answer appears americans are not as likely to wear masks as they are in other countries. one reason amongst a number of them why our rates are far higher or infections far higher than the eu. deaths higher than anybody on the planet in terms of overall, jim. so, i mean, you know, this virus is still out there

it is still spreading. thankfully not at all to the extent it was in our part of the world and our part of the country, but in others it still is and so i don't quite know if you were to go the plan you were describing immediately, that that would result in anything but a bad outcome. >> well, look, i'm concerned, carl i just think that what you really don't want but you wouldn't get anywhere is a reclosing, so to speak, other than bars. i think the people are getting very, very smart and sophisticated about masks, which used to be laughed about i care about going forward we're getting travel starting to get some travel. starting to get the roads. companies, larger companies are actually doing some hiring what we can't lose, as you go down the city streets, there's got to be a run on craft paper

more places have craft paper in the window than i've seen. it seems like some sort of tornado came through new york city i can't imagine it's much more different than any other cities. >> yeah. jim, you mentioned vaccine expectations interesting note out of goldman today saying, look, we agree there's a good likelihood of getting an approval by the end of november, but that's going to challenge a lot of people's assumptions about huge cyclical, maybe favoring europe, maybe favoring em where it's more difficult to fight the virus it will be a violent rotation if and when that happens. >> we do have a lot of companies that sell at 10, 15, 20 times sales. i don't care how fast a business is growing, that's a very high price to pay i know that it's small, but there's a company called fasting which makes it so the web is really more reliable and faster. it did not deliver the huge beat

and raise that people thought. got downgraded by opco people are scrambling looking at it saying, you know what, do i own a fastly i have to get out if i own fastly they're a great company but it sells at what typically is an absurd multiple. david, we've been there when you say, hold it that's a cheap multiple. it's only 12 then you realize, david, it's against sales, not earnings. >> not actual earnings. >> how do you feel about that? >> you've got to an extent be careful. i don't know that suddenly the economy is going to shift in some dramatic way, jim, where the leaders are not going to continue to have an accelerating business as a result of the digitization of the u.s. economy or the fact that so many people are doing things in the way they might not have months ago in terms of how they conduct their lives. to me it would still seem to indicate the leaders are going to stay the leaders although we

can have debates on multiples. we're not that small the companies that are growing dramatically but don't have a lot in terms of earnings as we take a look at market, slightly lower, guys. jim, i wanted to come back to one name that you and i used to follow pretty closely which is valiant. not called that anymore. >> no. >> called bauschell. joe papa has done a valiant job -- >> wow, you're going to give joe that >> i'm not sure. the market is reacting quite positively to the announcement that they're splipg the company. basuch health is splitting up. it's going to become bausch and laum 3.7 billion in revenues. that's based on last year's numbers and a category of 4.1% and then bhc will be the other

company. that will be a diversified portfolio across medical, neurology, determine ma toblg. you know some of the names as well this is not going to happen for a long time, jim. >> no. >> it is an old shrink to grow bausch is up 16%. >> i guess joe's tweeted about this i would not have done it one of the things that we've seen, glaxo's done this, you've got these companies that separated in something that's fast, something that's slow. >> yes. >> what you want to do is find out what the slow's dividend is going to be. >> that's a great point. you are creating what are two separate investor bases, right >> right >> you are trying to give some -- 4% is not an incredible category on revenues but it's something. it's about just flowing cash, having a significant dividend it can pay to those class of shareholders that would like that they're not going to start reporting it until the first

quarter of 2021. so this is going to be a ways away look at the stock. people, at least investors seem to be taking to the idea two separate companies. >> it was much higher during the period when we felt that drug companies were going to war before we got to this vaccine versus non-vaccine what's the annual compound rate of bausch. >> i don't know. >> that is the -- >> you introduced ebitda now you're saying cagr >> yes, compound annual growth rate you're right we shouldn't throw those things out there. >> abc. >> you're absolutely right carl, over to you. >> guys, we'll take a quick break here speaker pelosi on the ore side of course. nasdaq slightly red although we did tick above 11 k. that is another record high. back after a short break

when the world gets complicated,

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liberal wish list that we think goes far beyond what is appropriate for this situation what i laid out as a starting place, which, as you know, some of my members think it's too much, is about 1/3 of that targeted in the following ways kids in school, jobs, the popular ppp program, health care, hospitals and most importantly, to help the economy get back on its feet, liability protection. >> madam speaker is here and it's great because we've just gotten the most up to date look by what majority leader said welcome back to "squawk on the street." good to see you. >> good morning. nice to see you always >> all right so i'm sure you heard the majority leader. to me it sounded like other than the beginning when he talked

about the amount of money, there is room for compromise before you had a great relationship with secretary mnuchin. you got something done people were saying, you know what, washington is our friend is it possible that washington is going to turn out to be our enemy if something isn't done? >> well, let's just say we're here for america's working families that isn't always the priority on the other side of the table we -- three months ago tomorrow, three months ago we passed our legislation and the majority leader may call a liberal wish list is about food for kids in our country who are starving -- food insecure. it's about families who can't pay their rent it's about workers, again, the 20th straight week of over a million people filing for unemployment insurance the list goes on and on and still after all of this not facing reality that in order to

open our economy sending our children safely to schools, we have to contain defeat of the virus. so not having a scientific based strategic plan to do that. we put that forth in the heroes act. >> madam speaker, you are the first person who so visibly told me you wore a mask which wasn't initially sure because it was a novel disease. with your mask can we at least if nothing happens, everybody else joins you with a mask, can we open schools? can we open business take the risk. science is helping us. medicine is helping us things are better. if we close the economy, everything you describe is definitely going to happen >> well, let's just say this we all want our children to go to school. our children want to go and be with each other. teachers want to teach parents need to work and also want their children to learn parents earning, children learning, but we can't do it at the risk of our children and our

teachers and those who work in schools in addition to teachers. it has to relate to the rate of infection in a community and there are formulas for that. what's interesting about this negotiation is where we are on the money for schools is to say if they're actual, if they're virtual or if they're hybrid, it doesn't cost that much difference in money. it just doesn't. so it's not -- when the president says most of the money we send there only goes to schools that open up, it ignores the fact that there are differences in terms of the rate of infection in communities. again, this is based on science, not based on whatever it is that the president bases his decisions on >> the president does an executive order which says i have to do this because speaker pelosi is blocking checks to you and she's blocking rent relief,

what do you do it's probably illegal, but if he does it and does it against you, what -- if we come in on monday, what are you going to say? >> let's not talk about him, let's talk about what the right thing is to do now he can do -- extend the moratorium, and i hope he does you can't just have a moratorium, you have to have money. if they extend the moratorium, people won't have to pay their rent just yet, it will be pushed further down the road unless we get some money for them to compensate for what they have to get and that's not just for the renters. that's for the landlords what good is it to the landlords if you have a moratorium until the end of the year for people to pay their rent unless there's some money to help pay the rent. that's just one of the things. again, it's about jobs if people have jobs, then everything is better if we have a scientific approach to defeating the virus,

everything is better that's why we have in there jobs that is honoring our heroes, health care workers, first responders, teachers, sanitation, transportation workers, et cetera that are paid for -- are employed by state and local government if they don't get the money, many of these people, millions of them, will be unemployed and go on unemployment insurance so what money is that saving as it reduces services for those who are risking their lives to save lives, now they're going to lose their jobs because all of a sudden the republican deficit hawks don't want to support state and local governments. democratic and republican governors, county executives, et cetera, are appealing for this. >> i'm so glad you mentioned this if we don't get relief that makes it so that small businesses get help and other entities, i see there's an

opportunity for social unrest, mental and physical health and an explosion for the republic. i don't think i'm overdoing it unless we get a vaccine and all of this is moot. do you think the american people understand how much is on the line here? >> let me say this to be hopeful because you paint a bleak picture there, and the picture is bleak that's why we passed this bill three months ago when majority leader mcconnell pushed the pause button pushed the pause button. last week he came up with this piecemeal approach which is just -- it just shows the difference in terms of who we put first and we're putting working families first but i want to give you some optimism i do believe that the science is there. i've been studying this since march. now i feel comfortable with the idea that we could have much more testing and getting the

results much sooner with point of care testing. it doesn't cost as much. the results come in sooner and if you have that, it's easier then to open up schools because you'll have these tests. you can take them a couple of times a week rather than one test and maybe two a month or however the other tests are when you don't even get the results what we're trying to say to them is we have to have this comprehensive, strategic testing and that leads to tracing and then that leads to treatment, et cetera so that until god gives us, and i hope and pray science does, too, a vaccine we will be saving lives. since we passed our bill nearly 3.5 million people have been added to the infection list and around 70,000 people have died while mr. mcconnell pressed the pause button will we find a solution? we will. will we have an agreement?

we will. but it's hard to share -- to go across the table with somebody that wants to give a tax break for somebody to have a business lunch and refuses to give more money for children who are food insecure in our country, giving more food stamps that's kind of a definition of who we are. >> i like your spirit of being more up beat, more optimistic so i will offer this. why can't you go across the aisle and say, representative lewis, civil rights legend, would have loved it if we could do something for the totally disenfranchised for something in the country. can we give a huge chunk of money to the people who are disinfranchised, to minorities who want so badly to stay in business and who can't and to people who are trying to go to college or have student loans who are minorities who are the most affected because they had the least chance in our country? that's got to be something boldt sides can agree to. >> perhaps you mistook them for somebody who gives a damn for what you just described. >> geez.

>> yeah. that's the problem the thing is they don't believe in governance and that requires some acts of government to do that, but just what you described is what mr. schumer, chuck schumer, is proposing that we do with some of the resources in the bill and that -- you described chuck schumer's proposal exactly in addition to the heros act, if we're talking about how much and how long and how targeted, if we're going to juggle some of this money, let's focus it where it's going to do the most good, and basically, economists tell us, spend the money, ib vest the money for those who need it the most, because they will spend it it will be a stimulus. at least a stabilization of -- and that's a good thing. consumer confidence is a good thing for the economy. you know that better than

anyone and one of the things we want to do just before we leave on this, what we're trying to do to help hotels, which are big employers, restaurants which are big employers and the rest, so to lower the threshold for how someone can qualify for a second loan republicans have it at 50% our chairman is urging a 30% threshold or 30% of revenues of losses from the previous year. it was based on the previous quarter, similar quarter of the former year. now we're talking about the whole year, and 30% rather than 50%. it would make i'm told by the hospitality industry, a big difference for them. many jobs, many entry level jobs, many union jobs. many people of color jobs, and i would hope that they would consider that. >> okay. i'm glad you mentioned my congresswoman. i think she knows small business better than anyone else. speaker pelosi, thank you for

coming on squawk on the street >> my pleasure thank you. always a pleasure. thank you. >> carl, until the speaker said that the republicans don't give a damn, which is clark gable's line from "gone with the wind", i thought we were going somewhere. it seemed quite dismissive there is concern without mass -- we don't have a plan carl, i don't know this is a little more apocalyptic than i wanted to see. >> well, jim, two things one politico says the negotiating session between pelosi schumer mnuchin meadows starts at 5:00 there's a lot of posturing all day. the journal did a take on what happened if you had a one month absence of the $600. their argument is you'd be looking at a decline in consumption of 4% which is more than we did in the entirety of the great recession.

>> wow that's big >> jim, you know, there's one voice, meadows is part of the negotiations, but what about trump? he loves to act unilateralty what if we were to do something in terms of not siding with the democrats but trying to move this thing along >> well, i think that the democrats -- i don't want to be partisan -- but would have to be aware that's something america would like america wants its money. all right. thank you, carl. >> jim, a quick break here 7 $0.05 crushes the $0.39 estimate gross margins up 640 basis ckft are ba aer bak what happens when a wireless carrier

puts its customers in charge? well, the good news gets shared. and it gets rated #1 for customer satisfaction. but don't just take our word for it. take theirs. it's your wireless. your rules. only with xfinity mobile. call, click or visit a store today.

viacom only down 30% a year. that's in line with fox and discovery. that's a good day if you're bob bakish who will be our guest a little bit later

jim, what's up on mad tonight? >> we have to find out this etsy conundru conundrum. and papa john's, delivery.

and hans vestberg, i have him. david has bakish, but i have vestberg >> are you going to ask him about the tiktok thing >> no. there's others there's ground swell >> does hans agree with it >> well, i don't know if he's heard of it. i'll be here tomorrow, i'm supposed to be off for my second friday, but do i think i take vacations? safety and i never take vacations. >> there's to our benefit, jim we'll see you tonight. >> they don't give a damn. >> that's scary words there. >> jim, we'll see you tonight. mad money at 6:00 p.m. eastern welcome to "squawk on the street." the market has a couple big potential land mines in front of it one is the progression of

stimulus talks in washington we talked to mcconnell and pelosi in the past hour. the other the jobs number tomorrow as jobless claims, initial claims come in better than expected. it's still 20 stralight weeks o a million plus americans filing for unemployment i wonder what your take is from pelosi mcconnell in the past few minutes. >> it's clear the disagreement is still very fundamental. they are still disagreeing over one of the most basic tenaets of the package. here's what leader mcconnell said earlier today >> the argument over how much is appropriate at this particular juncture as we struggle to get the economy back on its feet and get the country in a place where it can sustain itself until we get a vaccine which at the earliest would be sometime later this year or early next year >> so we have heard that both

sides have a desire to get a deal they want to get a deal. they understand how important it is to get a deal for the american public and put more money in their hands, but yet, they still disagree over how much should be spent, and what i didn't get from either leader mcconnell or speaker pelosi this morning is in the last ten days meeting almost every single day has either side moved the needle they appear to still be digging in their heels to either of their positions. i think it would have been interesting if either of them had said our plan is $3 trillion their plan is $1 trillion. we've agreed we'll do 2 trillion now we're hashing out the details. they did not say that. they're haggling over price, and carl, that is pretty much the highest level thing you need to agree on before you can actually agree on what's going to be in it >> yeah. and then there's the line of questioning that cramer took to the speaker. here's what he said to her

>> can we give a huge chunk of money to the people disenfranchised, to minorities who want to stay in business and can't and to people who are trying to go to college who are having student loans who are minorities who are the most affected because they have the least chance in our country? that's got to be something both sides can agree to >> perhaps you mistook them for somebody who gives a danm for what you just described. that's the problem they don't believe in governance and that requires some acts of government to do that. >> typically when there's high pressure talks on the hill, sometimes there's a fit on the hill that's less likely to happen a lot of the names supporting overall valuation are names that sort of depend on people staying at home. >> yeah.

we've made the point, but we can't make it enough this is a tale of two markets or perhaps three. the one we throw and that is reflected in the s&p because it's not a well diversified index anymore is one led by apple and facebook and to a lesser extent, alphabet led by amazon these are the names that matter for that market. these are the names as you point out that benefit so much from this so-called new economy or the acceleration of trends that were already underway but have taken place in a rapid period given the spread of this virus and kayla, so looking for a market reaction this morning probably not going to get one. although one would imagine if we, i don't know, kayla, end this weekend without anything, or any prospect of a deal soon, there's got to be a broader response maybe we have to look to the ten-year yield for that. >> it's hard to imagine with the backstop of the federal reserve

and the $7 trillion in authorizationed programs it would be similar to what we saw in march and to when the tarp vote failed in 2008 given the fire power of what the government programs have already done the white house has said that it has urgency as of tomorrow if congress hasn't reached a deal if both sides haven't come together, that the president would issue by executive order extensions for some of the programs like the eviction moratorium or potentially a suspension of the payroll tax advocated by stephen moore speaker pelosi points out anything with a dollar sign needs to be authorized by congress the president is limited in what we can do in sending out money and even she said the eviction protections without being able to put money into people's hands so they can pay their landlords will cause one part of that chain to suffer. even though the white house is prepared to take action, it

seems the lack of ability of congress at this point to get that money out to unleash that liquidity and with the reservations of many within the republican party, that could be part of the holdup here. >> yeah. carl, to your point the market more or less not responding at all. unclear when exactly that will be the case if it will but we will just sit and wait and i don't know what your sense is carl, given what we heard from leader mcconnell and we heard from speaker pelosi, but it doesn't appear, i guess starting at 5:00 today, that they're going to make a lot of progre progress, but many people hope there is room for compromise >> right and the jobs number tomorrow slight not exactly a high frequently number given the timing of the survey week, but still hopes we'll get another gain tomorrow, david i see citi at 3 million. morgan stanley at 2 million.

even though some are starting to build in the risk that we do get a slightly negative print given the fact that some things like the employment is in contraction. adp, a squirrely number, a deep miss earlier in the week that's one more thing to juggle tomorrow morning >> yep as for what we're dealing with today, let's get back to earnings a bit we've got an number of them over this week. and today we heard from viacom the shares are jumping over 5% you see it right there after the company did beat at least the estimates that analysts had for the second quarter also saw a jump in streaming revenues advertising revenues down about 27 % joining us now in the cnbc exclusive is viacom, bob bakish. i was teasing you kiddingly. your stock suffered earlier this year and was a divergent from the group. now you're in line with the group. you're only down about 35 %.

fox is down that much. discovery is down about that much i know it's not the best of times at all, but i wonder is the worst of times behind you? >> great to be with you today. we're feeling good about our second quarter call. we delivered a solid financial performance including sequential improvement on our earnings and cash flow-related metrics on both the rate of change and absolute dollar basis. by the way in the quarter, our brand performance, there's audience performance very strong. and we are managing through co-vid and i think making significant progress and lastly, we're really focussed on value creation you look at that in terms of the cost savings associated with the synergy where we took estimates up today you look at that in terms of the distribution deals we did in the quarter. verizon, youtube tv, and in july dish, really demonstrating the thesis of viacom cbs being

stronger together and then you look at streaming. both our free services, paid tv, pluto tv as well as cbs all access and other paid services feeling good about the quarter and on the stock we're trading to your numbers roughly with the category, but we have a lot of momentum as you said, we were down more earlier, and we've been building, and i think that's a reflix of people seeing the building power of viacom cbs and the progress >> let's talk about momentum ads were down 20%. it's a terrible time to sell advertising. you seem to be pointing to a significant turn that took place in june. and that you think will continue give us more on information why you believe that's the case. >> ad was down due to co-vid we had the final four and the ncaa final four and championship last year. turner would have had that this

year but nonetheless, ads were down but as we track the quarter, the quarter finished stronger than we thought early and we saw sequential improvement in june and every quarter from an april low. there's green chutes in the ad market we're starting to transact on an up front basis we're active with a range of agencies so things are starting to move, but clearly, you know, co-vid has imacted the ad market. >> of course not something else that it's done is accelerated cord cutting your cable affiliate fees were down 6%. you signed new distribution agreements during the quarter or during the last six months you've also talked about improving rates. but how do you fight the overall tide, which is that there are fewer and fewer people subscribing to cable >> so when it comes to affiliate revenue, whether it's domestic

cable or affiliate revenue overall, we are seeing improvement and we will see improvement sequentially in rate of change. and we get to q 3 and q 4. as you step back from it, i think a couple points worth mentioning one is what the was reported this quarter turned out to be not what people feared that was good. and the deal making activity, dish or youtube or verizon, reflects has been importance of our number one position in linear television as well as our ability to add value more broadly. vaensz advancing advertising, paid streaming apps, et cetera. so that allows us to continue to both perform in a linear space but importantly, serve a segments market. if you look at growth long term, that's what it's about if you look at the affiliate

numbers, you'll see our paid tv sub decline was more than offset by other forms of affiliate revenue including streaming revenue. that's the key we have to serve a broader market and viacom cbs allows it to do that we are a pure play content company serving all kinds of distributors whether they're over the top vmvpds, the channel store or roku, we're serving people broadly, and that's why our affiliate business is growing today and will continue to grow. >> how much of the future of the growth is cbs all access when we talk about disney, we talk about direct to consumer. it seems to important for the future of the company. i would think that is also the case to a certain extent for you, bob >> yeah. look, viacom cbs has a diversified business but

certainly the action on the investor side is focussed on what we're doing, what the industry is doing in streaming you look at what viacom cbs is doing and i point to the strong momentum in the quarter in free we have the number one free streaming tv service in the united states. pluto. when we acquired that service a year ago >> you came on air you were excited about it. it was a small deal, only about $3 million you were excited about it. >> people didn't know what it was. but since then free ad supported streaming has become a real part of the streaming eco system, and we have the number one service in the industry. and that's because of our content where we have over 100,000 hours on the platform, and the devices where we're on over 30 different devices and platforms. it's because of the distribution deals. we talked about verizon on the call we just added lg and tivo.

that's adding tens of millions of incremental devices that builds on the distribution we have at roku and amazon and others so pluto tv is on a real momentum track and you're seeing that as we progressively monetize it and now take it global that's a strong place. and in the pay side you mention cbs all access we're in the middle of the transformation as i indicated on the q 1 call, we expanded access where we brought the flag ship brands we added 3500 hours of content after we added movies. that service is really broadening in pay, we hit our year-end subscriber target at the end of june we took that paid subscriber target up to 18 million. feeling very good about what we're doing. and today we announced we're expanding that internationally streaming is important when you look at the scale of via come in terms of content in being a pure play content

company that feeds multiple district or thes the other thing in june for the first time ever, viacomcbs was the number one media company in social and tube. it speaks to the power of digital. >> let's talk a little bit about movies people aren't even going to see them top gun maverick is not coming out until next summer. how do you deal with the delay in being able to make content and show it? >> so one of the realities of co-vid is the theaters are shut downright now. so paramount didn't release any films in the second quarter. but we have protected the value of our assets. so you mentioned top gun maverick by i way, i ta i talked to someo saw the finished print yesterday

and they are raving about it once we can get back to a theat theater, that's going to be a hit. first we're waiting for a better day in theaters. we're also taking advantage of options that the company and the market is currently providing. we have sold some products to streamers to monetize them today and quite frankly avoid what will be a cluttered release schedule in 2021 >> what are we looking at? nobody is putting a movie out. then we'll deal with when finally things are back to so-called normal, movie after movie which cycles through in a short amount of time >> i think the studios -- paramount is looking to balance it the best we can, but there will be more supply once the theaters open up, because there is supply sitting. we have multiple films in the can that we're looking to release because we remain committed to the theater window, even though we do some other things in this co-vid rules times of the business. we took sponge bob sponge on the

run and used it as a strategic asset, deploying it in the u.s. against the relaunch of cbs all access and rebranding it in early 2021 we're doing a variety of things. but for now, it's really focusing on monetizing library, preserving ing assets and explog different options out there. >> finally, the nfl. when are you actually going to get down to negotiating with them about the new contract? >> well, that's really on the nfl's timetable, but i will say we have had a long-standing neutrally beneficial partnership with the nfl we love the league and the product. viacom cbs, we have a clear ability based on our combined assets to create more value for the league and quite frankly for ourself. >> you've talked about this before you've gone through these points i'm wondering when do you think it's going to happen >> we'll see, but we're ready to engage when they are and i'm confident we're going to

get to a good place. >> i'm sure we'll have a conversation about it in the future bob, appreciate you taking time. thank you. >> thanks, david appreciate it. stay well. >> good to see you >> good seeing you, too. after that big exclusive from david faber, another big show on "squawk on the street" continues next the president of live nation on the other side of this break and later, richmond fed president thomas barkin. don't go anywhere. we're back in two. like how we redefine collaboration... how we come up with new ways to serve our customers... and deliver our products. but no matter how things change, one thing never will... you can rely on the people and the network of at&t... to help keep your business connected.

let's bring in julia with the president of live nation hey, jb. >> hi, carl. good morning to you. i'm joined by the president of live nation, fresh on the heels of the company reporting last night. the revenue fell 98% in light of concerts coming to a screeching halt in the second quarter joe, tell me, now your ceo says he's confident about the return to a healthy concert business next summer. predicting things will come roaring back how can you be so confident when there's so many uncertainties about a vaccine and consumer spending >> good morning. thanks for having me on. as michael said yesterday, we are confident that come next summer we'll have a large outdoor season our festivals, our amphitheaters. the one thing we've seen through this shutdown is how much the

fans truly do want to go to the shows. so when the fans have had the opportunity to refund their ticket or keep it, 86% of the fans are keeping their tickets even festivals which have largely cancelled through the course of this year, when fans have the opportunity to keep their ticket for next year's festival, two-thirds of them are doing so despite the relatively large ticket there as a result we've sold over 19 million tickets for over 4,000 concerts for next year that gives us a sign that even during uncertain times, how much fans are valuing the opportunity to get back to the concert as soon as it's safe to do so >> even after a vaccine when it's safe to get back to concerts, it could take a long time for the economy to recover. isn't it possible people will look to spend less either on every ticket or to go to fewer concerts every year? how are you going to handle

that are you going to have to lower prices >> one of the things we've seen is when fans are surveyed, they're continuing to put concerts in a top priority as how they spend their discretionary money. they see it as an afford bld night out. fans continue to spend on concerts through the recessions. and i think over the past decade our ability to really understand pricing, how to price the tickets in the front of the house so we're getting as much money as possible for the artist from the people that want to spend the large amount to get in the first row, the tenth row, and then how to make it affordable through the rest of the building so fans can get in and enjoy it we need to make sure the tickets are aforable for everyone, and we think we have the ability to understand how we can make that affordab affordable >> joe, this is kayla in washington looking at your financials, you have $3.3 billion in cash on

hand this quarter. next summer is a long way away how much do you need and are you confident you can raise the money? >> we have taken strong action to make sure we're able to get through to next summer we've cut 800 million in spending, $1.4 billion reduction in cash flow to get there with the existing liquidity that we have we're down to a burn rate of about $185 million a month so if you play that out, that lets us get through to next summer where we ramp up. and if we're going to have a large summer season next year with our concerts, that means we start selling tickets by the beginning of the year. that 60 revenue starts to drive our income in the early year, sponsorship will follow and then ramp up along with the concerts as we get into q 2 and q 3 of next year. we expect we have the liquidity to -- >> so much of next year's calendar is -- shows rescheduled

from this year cancelled how much of what you expect to come back next year and the events scheduled, how much of that is represents deferred revenue where people haven't refunded tickets but they're waiting for the event to take place? >> right so we have -- we're expecting to end the year with about $1.3 billion in deferred revenue. there's a lot more tickets to be sold but our liquidity that we look at, the 2 $.7 billion of available cash or available debt is without taking into account the use of any of that deferred revenue. so without touching that, with just looking at what's our free cash plus about $950 million of available debt we have the liquidity to get through to next summer >> joe, to kayla's point about the financial pressure you're you should now, even before not

taking into account the deferred ticket revenue, you have been trying to generate revenue from drive in and virtual concerts. how profitable are they and what's the potential for those businesses going forward >> yeah. those businesses i think, again, are a great indicator of how much the fans and the artists want to continue to connect even in difficult times the virtual concerts have taken off. we've had over 6 7 million people watch virtual concerts from our platform. one with 8,000 last weekend watching a festival. so the virtual concerts are showing a real demand. thus far a lot of them have been free streams just to keep the fans and the artists engaged during this difficult time, but we see that as another service we can provide artists, businesses going forward it's a revenue stream for artists as we try to come out of this using our platform.

we put on the show, so we have a theater in which to record and to distribute the virtual concert. and by using ticket master as a platform to sell the tickets, we've got to ability to drive volume in a way that i think most others can't. and at the same time, the drive-in is the ultimate tailgate it's a way for fans to connect with artists we've been working carefully with health officials to make sure we're putting these on in a safe way but still gives fans some opportunity to connect with the artist these aren't going to be operating at scale, driving huge revenue over the next six months but i think the virtual concerts in particular can be meaningful as we come out of this as an additional revenue stream. >> and joe, as you prepare to have traditional concerts return, how different are they going to look? how much do you have to invest in changing the venues to make them safer and what's your reliability going to be in. >> i think tit's a moving target

it depends on the state, the vaccine coming, timing, the treatment effectiveness, but certainly there's a big focus and fans are telling us they want touchless in terms of the entry. want to make sure we have the right cleaning protocols in place. thinking through how everything from concessions to entry and exit take place. so we've been developing protocols on all that to be ready. we're using some of those protocols today globally we operate in 40 countries and a lot of the markets outside the u.s. are already showing the opportunity to do more shows at scale. 1,000, 10,000 in some markets. we've got germany, spain, france, new zealand, denmark, finland. a number of markets starting to do shows we're deploying the safety and health protocols in the makt

markets and we'll bring them back to the u.s. when it's safe to do so in terms of shows here. >> certainly strange times for this industry, and challenges ahead, but we look forward to seeing what happens next thank you for joining us really appreciate it >> thank you time for our etf spotlight taking a look atticer sso. one of the best-performing etf' over the last d20 days. hilton the stock falling marg marginally in today's trade. we'll keep an eye on that. stay with us "squawk on the street" will be right back when the world gets complicated,

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welcome back here's your cnbc news update fewer than 1 in 5 parents want their kids to go back to school for full-time in person lessons this fall. that is according to a study from a research center more than a third prefer a mix of remote and classroom learning see how child care considerations are affecting parent's career choices. the france president is in beirut viewing the damage there. beirut's governor says nearly 300,000 people are homeless and

damages are estimated between 10 billion and $15 billion. a moment of silence to honor the 140,000 people who died when hiroshima was bombed 75 years ago today. the mayor urging world leaders to work toward nuclear disarm lt you are up to date that's the news update squawk alley continues in just a minute ♪ 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. ♪

we continue to watch negotiations on capitol hill over an extension of co-vid stimulus measures. joining us this morning is the president of the richmond fed tom barkin good to have you >> thanks for having me. >> you made interesting remarks. you told the northern virginia chamber of commerce a few months

ago when the pandemic began we thought this was a pothole, in your words, and you could put a plate over it. now you're saying the escalation of the virus could turn the pothole into a sink hole what do you mean >> i think the first set of stimulus packages were placed with the expectation that this was a four-week, six-week, eight-week shutdown and at the end the economy would return to the levels we had before i think what we see now is the downturn is longer than we anticipated then and the recovery path is less steep. and so you could use the bridge over a river analogy regardless, we have a lot more people in trouble now than we hoped we would have four months ago and a lot of them are in need >> we've seen some pretty dire projections of what a removal of the at least full $600 benefit

would do to consumption. do you have any problem with the numbers that would imply a bigger hit to consumption than we saw during the great recession? >> well, across the stimulus payments and the unemployment insurance, they both have gone to people at the low end of the income spectrum which is great it's also the case that folks with lower incomes and a higher percentage of what they get. the money transferred there, i think the data would show has gone directly into the economy, and i think that has been helpful to us. >> at the same time, you got as leader mcconnell told us this morning, a caucus that is starting to worry about the debt and the price of fiscal support. cap lin is on the tape saying asset purchases are not free and may have an effect on the dollar as we hear more of that commentary bubble up, what do you think that does to chances

on the hill that we do get some kind of compromise >> i don't know about chances on the hill my read of what i hear is that both parties are interested in doing important stuff for people who are in need. and i always keep coming back to the fact that we have 11% unemployment right now that's the highest it's been other than the last few months since the great depression i think it's important to support families that are in need i'll defer to congress on how to do that. >> as weekly jobless claims provide the most realtime snapshot of the labor market, we've had our 20th week of above 1 million claims but it was better than expected this week and it declined. is that because the virus is easing in arizona and texas? >> well, i've been hoping for

reductions in unemployment claims for multiple weeks now. a reminder, the highest week before this crisis was in 1982 just under 700,000 and it's been even after the first few weeks, it's been in the 1-3, 1-4 range for some time i welcome it coming down to 1-2. i'm hopeful initial claims will moderate further here. i think that would be a good sign for us. >> we have the health of the consumer and the worker at home, and the other the health of the corporation. the federal reserve set up programs to help corporate america and middle market companies through the main street lending program only a handful of companies have been able to access that at what point do you think the terms should change so more companies can get the money? >> i've been encouraged on the corporate end that a market side

with people's ability to get access to credit our programs are designed to be backstop programs for when markets fail, and i think markets are working fine right now. i think it is important to have the programs available in case they don't for example, if the economy were to worsen. on the main street program, we said we are open to seeing how they're taken up and it rating the terms as appropriate based on what we learn >> the chair, chair powell, earlier this summer said he was open to changing the terms as they go along and see the level of interest. he said he could consider that this fall. are those conversations happening? >> well, i think that's what i was just referencing i think we're open to learning what we see in the marketplace designing these things a pretty unprecedented. it's hard to get the terms of them exactly right into the sweet spot we are getting some interest, and i'm sure if there are things that are consistent with -- that

we've got, agreed upon between us and the treasury, that can get money to the right sort of people, we'd be more than happy to work those. >> mr. barkin, the senate and the house are far apart when it comes to their proproposals on how much aid should go to the states i want your perspective from where you are in terms of how needy the states are with their huge budget dep sits and if they don't get any more aid, whether or not that will actually contribute to a downturn in the economy given large state work forces that will have to be reduced. >> i think we saw it out of the last downturn. almost every state, certainly the ones in my district, have a requirement to balance the budgets. most of the revenue comes from income taxes and sales taxes which, of course, are both corporate and personal income taxes which are hurt in this virus. i was talking to the secretary

of commerce in one of our states that's projecting well over a billion dollars less in revenue next year. when you have a balance budget costs when you're talking about a state, costs are also services and states will have to decide what services to bring down. i think if you've got that kind of situation in a state, that does very much negatively effect the economy. another way to think about it is fiscal stimulus is exactly the right vehicle for this part in the cycle, and fiscal is both federal and state and local. and so when you take fiscal out on the state side, it creates more requirement to do it somewhere else >> so you would hope, i guess, that there is additional aid for the states >> i think it's important during

this time in the crisis that in addition to the monetary policy support we've provided that there's sufficient fiscal support. that's the combination of state and federal, yes >> there's still a school of thought out there echoed by the likes of larry kudlow that we're in a v-shaped recovery q-3 atlanta fed tracker near 30%. the president this morning told fox a vaccine is possible, and i'm not kidding, by november third, election day. what do you say to those who say that the pothole is smaller than we think >> i think that would be great i try to focus on level, not growth rate. the problem is we went down so precipitously that we're going to come up and it's also going to be -- look like very big numbers. you have to focus on the before and after. and so consumer spending, for example, had a very stock month

last month and the month before. that's 6.6% under where we were before the crisis, and consumer spending is 70% of the u.s. economy. the unemployment rate went down to 14.7% it's now 11.1% that's still 14 million americans who had jobs before the crisis who don't now so i keep trying to discipline myself to focus on the level rather than focusing on the growth rate. and the level would suggest we've still got a ways to go to come back to where we were >> finally, this morning there's a lot of commentary about vaccine approval and just using hypotheticals. maybe we get something that comes along in december. maybe the effectiveness is in the 50% to 70 range. but decent enough. what do you think that does to inflation, the market's assumption that we're going to have negative real rates for the long-term, does that turn that

upside down? >> well, i hope that's right i'd love to have a vaccine deployed you know, one number that's not talked about much is the savings rate and the savings rate in the second quarter was 26% normally it would be in the 7 % to 8 % range that is a lot of money on the sidelines that if you had confidence engaging in personal commerce could be spent and could have very positive implications for the u.s. economy, and i'd welcome that. of course, that's very dependent on consumer confidence and willingness to engage. another piece i think has real up side is on the business confidence side. if you had a vaccine, i think businesses would be more comfortable hiring, investing, planning again, it's all dependent on that being delivered, and i'm trying to, again, discipline myself not to get too much focussed on outcomes that are so out of my control, and so i

think, i play my biasline with a bit of a muddle through scenario, and that would be all up side. >> right believe me, we're all trying to handle things that are basically unknowable at this point we thank you always good to talk to you thank you so much. >> appreciate your time. thanks so much and as we head to break, look at shares of western digital plunging after a disappointing outlook for next quarter. that stock is down more than 16% on pace for its worst day since mid march and down 42% this year the ceo joins us next hour stay with us ♪ ♪

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brace for an ugly stretch for the markets. one top strategists reveals how deep a pullback could be for the s&p 500. more "squawk on the street" coming up. . 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.

sales of apartments in new york city did not rebound in july as hoped. robert frank is looking at the apartment glut and the impact of covid-19 on new york city real estate this is going to be good news. can't wait, bob. >> it's going to be not so great. at least for now july was supposed to be the first full month that brokers should show apartments again they were predicting a burst of

pent up demand instead, sales contracts in manhattan fell 57% compared to a year ago the top end hit hard co-ops over 5 million, condos over $10 million saw a drop of 75%. the warning signs right now is inventory. the number of unsold apartments in manhattan now at their highest level in almost a decade with a 17-month supply compared to the usual eight-month supply, and with so few deals pricing right now is hard to figure out but new developments are starting to cut the most a building in chelsea announcing it's cutting prices by half. this 3800 square foot apartment originally listed for 21 million now offered for just 10 million. compare that to the suburbs which saw a record july. sales contracts in the hamptons more than doubling with the biggest gains for homes priced over $4 million. west chester also more than

doubling and in connecticut fairfield county and greenwich seeing increases of over 70 % manhattan rentals also feeling the effects july saw a 30% increase in listings and a 6 % drop in median rent. guys, no signs median rent we don't no if it is going to get any better any time soon those things don't have any prospect of filling up at this point, do they >> no, what is going in their favor is the lenders on these buildings, unlike the financial crisis the private capital and private equity is more patient and they don't have regulators saying they have to clear the mortga s

mortgages. you will have zombie sellers that don't really need to sell and buyers with prices that are not happening. you're going to have apartments that just sit there and don't get sold >> in the meantime, take a look at shares of costco this morning. a year ago today shares were 260 and today 342. that is double expectations, p tter than june and ecomm u 75 back in just a moment. d, we're all changing the way things get done. like how we redefine collaboration... how we come up with new ways to serve our customers... and deliver our products. but no matter how things change, one thing never will... you can rely on the people and the network of at&t...

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stocks are just below the flat line as there is socially new stimulus challenges. you have health care materials and one of those outperforming groups that is communication services we saw a jump in streaming revenues last quarter. also blizzard hitting an all-time high today after analysts raised their target price on the stock it comes after they hiked their full-year forecast siting pandemic gfiring giving surge to gaming

shares are getting crushed this morning one of the biggest winners outside of today of the stay at home stock basket joining us now is joshua bix by it is a dependence on tiktok that made investors skiddish >> we're a great platform for innovators if you look at pinterest, wayfair, etsy, slack

we're a collection of the innovators we're lucky to have those innovators growing in this difficult team so september 15th as we said in our earnings call is not a date that we're focused on. we're here to create great customer experiences and the most amazing brands in the world. >> part of what your platform does is ensure that experiences on the internet and trafficking with a lot of the companies are secure for consumers secretary of state pompeo has called for the removal of what he calls untrusted apps from the app store. have you had any inclination that tiktok is not secure

we will comply with any legal or government gift, but we continue to serve them and we're humbled to serve them. >> because of the nature of your business the more time people spend on the ernlt the better your company does. how are you trying to keep them in your business system? >> one of the things that we see is a shift it is thrown around quite liberally. those with are winning in the developers are those in power.

they say we need you to see the organizations, the friction less seemless secure applications the gold mines of the future rest in seemless transformative digital experiences and we're proud to be part of that for the brants that is succeeding. it is tremendous in a difficult sales environment for many companies. >> and hopefully this will be a long-term conversation that we can have carl, i will send it over to you for "squ