it is 5:00 a.m. at cnbc. markets can't stop, maybe won't stop keeping the gains going and looking for it the hard way. even as in washington stimulus talks remaining at a standstill, the president mulling going it alone to try to help the economy. china firing the latest shot aimed at continued tensions with the united states. this time at the lucrative semiconductor industry live in beijing with more. uber and lyft suffering a big legal blow as a judge orders the companies to reclassify their drivers. what does it mean for their

stocks your morning rbi is all about people making a return to the airports kind of. it is tuesday, august 11th, and this is "worldwide exchange" right here on cnbc well, good morning, good afternoon, good evening, and welcome, wherever in the world you may be watching. i am brian sullivan. hope you had a nice weekend as well i know it's tuesday but it's the first day back for me. let's get to it and see how your money and the global markets are setting up their day stock futures are soaring, look at that, up 266 points right now. they are well in the green this is coming off a lot of recent momentum. the dow gaining about 350 points yesterday. if you are counting at home, and you probably are, that's its seventh positive session in a row. it is the longest winning streak since september.

the s&p 500 also on the rise as well, now less than 1% from its record high set back in february you got millions unemployed, trillions in stimulus, and maybe that's the reason, and we are less than 1% from our high on the s&p 500. now, the nasdaq actually a little bit underperforming the broader market some investors have been rotating out of some of big technology names right now, let us go around the world, karen cho's is in our london newsroom with the trade there and your top stories karen, take it away. >> brian, good morning very strong trade here for european stocks. just a short time ago we had some unexpected vaccine news vladimir putin, the president of russia confirming that russia has approved its first covid-19 vaccine. this is after allegations recently that russia had been hacking around vaccines and the country denied these allegations

back in july but the latest update is that this vaccine developed by the institute after less than two months of human testing has now been approved, and putin trying to convey a sense of safety around the vaccine saying his daughter has received the vaccine. it does pave the way for mass inoculation. final stages of a clinical trial do need to be conducted. you can see the markets are very strong as a result we want to take you to a couple of sectors, also some data points out of china today moving the auto basket of stocks. we're seeing a pop, 3.4% outpaced by travel and leisure also, a couple of stocks in the mix today. we keep talking about the move towards digital. there are a couple of big names in europe that have been reporting today, hello fresh in the meal kit business and zalando. these two companies have done particularly well. you can see in the numbers it's reflected in the stock price action

hello fresh talking about an improvement in its outlook and numbers in q3. it should see revenues grow by 100% which is a significant improvement, brian, back to you. all right, karen, that is a big story out of russia there. we'll see if the market buys into it. it looks like right now they are, karen thank you very much. we'll get more to that now let's get to the ongoing uncertainty surrounding the stimulus talks as the white house and the democrats look to try to restart the conversation. leslie picker joins us with that and more of your other top stories on a tuesday morning good morning. >> good morning, and welcome back the white house and con dwregsal democrats are urging each other to come back to the bargaining table but the two sides appear to still be divided on the scope of the plan. in a conference call with governors yesterday, treasury secretary steven mnuchin said action by congress remains the administration's first choice. those remarks coming on the heels of president trump's executive orders this past weekend. and speaking of the president,

he says he's mulling taking more action to help shore up the u.s. economy. speaking during a press briefing last night, the president said he was considering cutting the capital gains tax and lowering income taxes for middle income families trump didn't elaborate saying more details would come in the weeks ahead. shares of uber and lyft under pressure this morning. this after a california judge granted a preliminary injunction requiring the companies to stop classifying their drivers as independent contractors pending further action by the court. in a statement following the decision, uber saying, quote, when over 3 million californians are without a job, our elected leaders should be focused on creating work, not trying to shut down an entire industry in its statement, lyft said drivers do not want to be employees, full stop we'll immediately appeal this ruling and continue to fight for their independence ultimately, we believe this issue will be decided voters any

will side with the krooidrivers. brian. >> big time battle son you saw the stocks are down 2.5% in one case as well. we'll see you in a few minutes with more stocks to watch. stocks continuing to move higher overall despite those slow-moving stimulus efforts and our own jim cramer offering his take on the market's apparent disconnect from the headlines. >> i'm always searching for a mantra for any given market, and i think i found it for this one. no news is good news especially when it comes to the pandemic >> all right, joining us now is jeff killburg, founder and ceo of kkm financial what do you make of that, jeff no news good news? >> i think jc brings up a good point, no news is good news, and here we are. we have earnings season, 95% of the companies reported we're less than ten handles away

from the s&p 500 all-time high, put in 120 days ago. put that into hours, it's not even 3,000 hours ago we saw the s&p 500 at these levels. so pretty amazing to see this rubber band. we talk about the elasticity in the market what does elastic mean it means it's able to resume its normal shape, spontaneously after contraction. this elastic movement, blue chip man, look at fedex look at masco, look at costco. it's amazing to see the elasticity in these forgotten names. that's really moving markets higher >> you think it's going to continue, jeff >> i think it does, we've talked about about tthe ketchup trade. we have all the names here as people continue to rotate out of technology, technology is still our number one sector. we still want to own the faangs, we have to switch out netflix

for microsoft, but we still want to be exposed to broader industrial names that got thrown out or abandoned in march. when we see the s&p 500 recover more than 50% since march 23rd low, where else are assets going? they're going to u.s. equities due to the fact that the federal reserve continues to be committed in an unlimited capacity with perpetuity that's the message that fed chair articulates and continues to beat that drum. >> jeff, you and i were texting back and forth yesterday i don't think either of us wrote back, hey, tomorrow morning do you think that russia's going to announce they have a, whoai worg vaccine. i'm going to put you on the spot russia basically claiming they've got a vaccine. you just heard putin's daughter apparently has taken it. the futures are soaring. do you think it's on the russia vaccine news do we believe that >> i think that's an additional accelerant on today's

marketplace. we want to see all these all time highs, and the vaccine, we've talked about this a lot. that's why we own ibb. this global sense of urgency for this vaccine that resonates, so we get news out of russia, we're going to embrace that here in chicago, we need a vaccine. we're not going to school. no matter what the country is, we are going to run to that, celebrate that and embrace it. here we go, new all-time himes in the s&p 500 once again. >> i mean, just hope the kids go back to school and globally you've got tens of millions being plunged into poverty around the world as well also, outside of the vaccine news and again, we're waiting to get more information on this russia vaccine i just tweeted out a story for "the washington post." a head spinning moment coming out of left field. we've got matthew harrison with morgan stanley on. we'll ask him what he thinks about that in just a minute. i want to talk about transport stocks our rbi is about air travel.

transports have been red hot they're hitting in your technical terms, the golden cross. are the transports telling you that more gains are ahead? >> they are not telling us that yet, but nonetheless, i own american airlines. i own boeing, so it's going to be really interesting to see these names are really born the brunt of covid-19. yes, as we're seeing the tsa numbers, i know you quoted them early. we're not quite at a million passengers per day seems like we're going to be there in a week or so. that's positivity. these names, talking about catching a falling knife after a while, but when you see the fed or the government come in to help these airlines, that puts a little bit of essentiality in these names. i think that's withbeen a prove story going all the way back to the financial crisis. >> we've got more coming up about air travel in our rbi. this russia vaccine news may be taking everybody by surprise the market appears to believe it jeff kilburg we always believe

you. we're glad you're on. >> have a great day, pal >> you too, man, thank you when we come back, the stocks, the stock stories that you need to watch including shares of that, simon property group, one of the biggest mall owners in the world offering some troubling new signals for retail amid those reported talks with amazon. plus, china further escalating tensions with america, this time in the semiconductor industry standing by in beijing with more, and later on the boom in bio tech jeff just talked about it amid surging demand for a virus vaccine. we're going to talk with morgan stanley's matthew harrison about whether he believes these russia headlines and also what other candidates might be out there. it could be closer than you think. dow futures up 270 big morning ahead. we're just getting started and we're back right after this.

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welcome back and good morning. if you're just joining us grabbing a cup of coffee, you've got two things at work here. one of which is the market momentum we're up seven days in a row, today would be eight but about 30 minutes ago russia coming out of left field out of nowhere and vladimir putin suggesting they have a vaccine for covid that has proven very effective. in fact, he said that his own daughter has taken it and that

it offers lasting immunity whether or not the medical community believes it, whether or not you believe it, the markets appear to believe it or at least are trading on it we've got to get a lot more information on this. russia was not one of the leading candidates with a vaccine that we knew of, obviously very secretive anyway. this coming out of left field. we don't know any more about it. i tweeted out a story for "the washington post. we are trying to get more information on it, and by the way, we've got a top analyst, matthew harrison at morgan stanley who's been doing great work we're just lucky enough to have him already booked on the show today. and we're going to ask him about that the markets are up nearly 300 in the premarket. happy tuesday by the way. another oil company taking a massive multibillion dollars writedown following the collapse in energy prices leslie picker is back with that and some of your other top stories on this tuesday surprise. >> you talked about all the

positive news on the macro front. the micro front, the earnings picture looks a limb more glim, a billion dollars write down in the second quarter equal to about 40% of its market value. this, of course, is as the drop in crude prices took a toll on the shale oil producer the company posted a wider than expected adjusted loss occidental has slashed its capital budget in half and plans to only operate one rig in the permian ba permian basin for the rest of the year. simon property group's second quarter earnings and revenue missing forecasts. its retail outlets were closed for more than 10,000 shopping days combined due to the pandemic as of last week, the mall owner says 91% of its tenants are open and it collected nearly 75% of rent due for july. iac reporting a wider operating loss in the second quarter despite higher revenues, however, a decline in search

revenue cutting into those sales gains. this as the first report for the company since completing the spinoff of match.com >> we'll see you in a few minutes. thank you very much. now to the latest developments in the growing cold war with china, beijing rolling out a number of new policies aimed at helping boost that company's semiconductor industry it is just the latest provocation between the two super powers and our own ewe un shun joining us live from beijing. what exactly moves are china making now >> the chinese government announced there will be new policies to try to help strengthen the home grown chip sector the state council said it's going to be offering tax relief funding as well as encouraging chinese ipos for a lot of these companies. now, this is, of course, a signal that china expects and is preparing for a decoupling, especially when it comes to

technology, but we also have been seeing some signs that beijing does want to ease some of the tensions with the u.s., especially when it comes to the trade deal for example, the central bank governor told shin wa in an interview that it it was a priority for china to implement the phase one trade deal egong said china would honor the the trade deal with faster financial opening. in fact, he said the most important thing is to get our own things done, and firmly deepen these financial reforms so this all comes ahead of a very important meeting on saturday when the top trade chiefs from both countries are going to be having a conference, a video conference to take stock of the past six months for the phase one trade deal china's expected to say that it hasn't met the purchases, brian, that it was supposed to have had in agriculture and especially in

energy as i'm sure you would well know. there are signs here that china does at least want this trade deal to, you know, continue and the relationship to continue >> do you have any indication or see any indication, eunice of a softening of language? it appears to get tougher and tougher. is there any back channel stuff we're hearing that indicates that maybe the two sides will make up? >> well, i don't know if they will necessarily make up i think there has been some softening of language or at least emphasis from some of the top politicians here in china, when they say something like we don't want the u.s. and china to head into a cold war, so we have heard some softer language at the same time, there is some harsh rhetoric and china does say that it does have its red lines. i will say, brian, one other

indicator that we're watching for today is that beijing is currently holding a very important meting among its lawmakers which could influence hong kong and the legislature, and there's some talk that beijing is going to allow some of the opposition lawmakers in hong kong to be a part of that legislature as a way not to get too much heat from the united states >> all right, a lot going on everywhere around the world today. eunice yoon in beijing, thank you very much. still on deck, tim cook joining one of the world's most elite clubs, the big bank account jump he is going to see thanks to apple's stock performance. softbank making a return to profit with its quarterly numbers. the company reporting a profit of $11.8 billion thanks to the emerge of its sale with sprint also helping to reverse dramatic

losses suffered in the previous quarter. softbank is down, the rest of the market is up futures up 270 on that russia orwiine news "wldde exchange" is back on a very busy tuesday right after this and that's faster? faster, yea! but is it reliable? ah huh and secure! you should consider making a big deal about it! bigger? i said bigger! oh, big-bigger deal bigger than what i'm doing? it's not complicated. a 5g network needs a 5g device. now everyone including existing customers can get a free samsung galaxy note20 after trade-in. ♪ i keep working my way back to you, babe ♪ ♪ with a burning love inside ♪ yeah i'm working my way back to you, babe ♪

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welcome and good morning dow futures, they're indicating the markets could make this an eight-day winning streak you've got trump talking about payroll tax cuts, and you've got

that surprise headline out of russia where vladimir putin claims his country has secured and developed a workable vaccine that offers what he calls lasting immunity in fact, his own daughter has taken it again, whether you believe it or not, whether the market believes it right now, we are solidly in the green, tax cuts, stimulus, russia vaccine suddenly a busy morning. all right, right now let's get a check on this morning's other headlines outside the world of money and business including the latest on the tense and very scary scene outside the white house yesterday. frances rivera is in new york with that and more. >> good morning to you, the secret service on high alert after a scare near the white house. president trump was rushed out of the briefing roof after a secret service officer shot a man blocks away. minutes later the president returned and told journalists about the incident according to a statement from the secret service, the suspect told the officer he had a weapon, then krouncrouched into

shooter stance and the officer fired. the suspect is in the hospital this morning no one else was injured. chaos in downtown chicago where a night of unrest and looting left over 100 arrested and at least 13 officers injured. the violence apparently sparked by an earlier shootout between police and a 20-year-old suspect. blocks of shops and businesses were ransacked there is now a stepped up police presence in the battered downtown area, which will stay in place officials say until further notice and the northeast is bracing for another day of sweltering heat, and it couldn't come at a worse time tens of thousands of residents are still without power from last week's tropical storm new york city is under a heat advisory through tomorrow with temperatures expected to climb into the 90s it's so hot out there, if you have kids stay at home, you've got to bring them out, but then it's too hot you know the drill, brian, with this heat. >> and you can't -- you can't run the air-conditioning because you don't have power from the previous storm as well >> yep. >> because there's not enough

that the northeast has been dealing with for the last four or five months, right, frances >> it's 2020 >> typical year. >> it's 2020, our summer in 2020. >> 2020 just needs to go away. just frances, thank you very much appreciate it. >> sure. >> what is it, august? merry christmas. still ahead, a deal deadlocked in d.c. as the white house and democrats remain divided on a stimulus plan we'll take you live to d.c. with ylan mui dow futures, they're on track, up 271 we're back right after this. you say the customers make their own rules.

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stocking could make it eight in a row today futures are soaring right now as trump talks tax cuts and how about this for a surpris surprise russian president vladimir putin says his nation has created a covid vaccine that works and his own daughter has been inoculated. matthew harrison of morgan stanley will join us with his take. in d.c., democrats and republican still appear far apart on the next coronavirus relief package we'll tell you what president trump has to say about it on this busy tuesday, august 11th, and this is "worldwide exchange" right here on cnbc

all right, welcome back, good tuesday morning it is just about 5:30 eastern time, 4:30 central time in the united states. wow, what a busy tuesday all of a sudden out of the blue here's how your money in the investment market looks as we're about halfway through this 5:00 a.m. hour futures are up nicely. dow futures up about 270 points. nasdaq futures up as well. across the board, you got a couple of things at work here, folks. number one, you got continued momentum we are up seven days in a row, so the trend has been your friend as they say, today would make it eight higher days in a row for the broader market you've got ongoing stimulus talks, which trump talking tax cut, and then number three, boom, you wake up about an hour ago, and all of a sudden you hear that russia claims it has a working covid vaccine. whether you believe it, whether scientists believe it, we can e debate that all day long the markets may be believing it. at least not not believing it,

how about that dow futures are up 270 points. i'm sure we need a lot more on this our bio tech analysts at our moscow bureau are scrambling at this very minute in the meantime, now to the developing story out of washington investors are also very closely watching negotiations between the white house and congressional democrats on another round of coronavirus relief e lan moi joining us now in d.c. i wonder if the vaccine news out of russia will change the game in d.c who knows? >> i don't know, brian, but what i can tell you is it didn't seem like it was possible, but it looks like the white house and democrats are moving even farther apart on this next relief package during his press conference last night, president trump laid out his next two priorities. they include reducing the capital gains tax and a middle income tax cut these are two proposals he has long sought, but they have not been part of the current round

of negotiations. zb >> if you look at what's happening with the stock market, and people are very thrilled with what we're doing, we'd like to get the democrats to focus on other than what they're focusing on, which is a bailout of poorly running states >> both sides accuse the other of walking away from the table on cnbc, treasury secretary steven mnuchin called democrats unreasonable and for their part democratic leadership say that trump's executive actions are weak and unserious now, this breakdown in talks is raising alarms within corporate america. last night the business round table called on both the white house and congress to try again. in a statement, the group said only bipartisan legislation can provide the certainty and funding necessary to bolster the public health and economic response effectively in communities across the country now. brian, the group said that they're worried the current political impasse is going to

make it really hard for companies to do their part in the recovery back over to you. >> it's hard for anybody tad anything just yesterday my state's governor phil murphy of new jersey saying, listen, there's no timetable to open restaurants indoors because the air-conditioning is -- we've talked about air-conditioning since march, by the way, ylan. the thing that circulates the microbes i don't want you to comment on the russia vaccine because who knows. you know, is it real does it work we got a lot left to learn it would be kind of a big fib even for vladimir putin, by the way, to say you've got a working vaccine. i guess, ylan, the question is this if today is the day or at some point maybe we do get a working vaccine, i wonder how that would change the narrative and the talks in d.c.? do both sides kind of go, okay, never mind i mean, do you keep stimulus going if you get a vaccine i have no idea

>> well, there's a couple of different things here, brian i think on a philosophical level, one of the things democrats and the white house are grappling with is how much can you get back to normal without a videocassetaccine what needs to be in place for businesses, schools, kids, the general public to be able to live their lives and manage through this process, and there's vast disagreement on that the second part of a vaccine is, you know, you start to raise all these kinds of issues around equity who gets the vaccine who gets it first? how much is it going to cost all of those issues are the same ones that are playing out in the debates now and i'm not sure they're going to be resolved quickly even if we do see a solution >> no, that'sa great point, an it's going to be months even if this is a workable vaccine that came out of left field out of moscow a lot going on i want to go back to bed, ylan, thank you very much. it's too busy. ylan mui, nbc, thank you very much. let's get back to the

markets and your money as you can see on the bottom right, futures are soaring you got trump talking tax cuts you've got stimulus talks on going, and russia shockingly claims it has some kind of a working covid vaccine. let's bring in chief investment strategy gist strategist at oppenheimer asset management neither you nor myself are epidemiologists, i'm not even sure i can spell epidemiologists. who knows what this russia news is, whether or not it's true or not, it would be kind of a big lie if you said we have a working vaccine but you really don't. the day will come, i think, when we get one whether that day is today or not, who knows. what happens when we do? >> brian, i think the question is is this the sputnik moment, you know it used to be the race to space, the race to the moon, and now

it's the race to the vaccine we've got to wonder. you've just got to say how much has it been tested, and the fda would have to test it if we were to adopt that. and in the meantime you've got 160 companies around the world all told looking for this. i'll recall about 19 in the u.s. warp speed group looking for it. so i think we're -- you know, irregardless of whether this is on the market or not, i think we're getting closer to a vaccine, and the question is how quick can it go through the testing. how soon can it be arrived at that people are going to feel safe taking it i think when we get to that, that's -- the market is just looking ahead of all of this the market at this point is considering a variety of things. >> it is and we've got a great analyst matthew harrison of morgan stanley coming up in a few minutes. i chatted with matthew by phone

yesterday, and the markets are optimistic about a vaccine we also know as bad as it is, that we have learned a lot about the vaccine and thankfully, thank goodness it is a lot more survivable and the treatments have gotten a lot better since this whole thing came out. i mean, you know, we focus on case numbers but luckily a lot of other numbers have gotten better i guess there will be a day when we sort of return to normal, whether that's in a few months or a few years what's the 7 or $8 trillion in stimulus going to do long-term, john is it going to be a net positive or a net negative because it's not free money >> i think, once again, it's a mixed bag of what it is, but without it the problem would have been an extended and deeper recession than we're experiencing it's bad enough as it is, or even a depression, and we sure don't want that. we know the only way we got out of that, the world got out of a depression with a world war, and i don't think anybody wants

that so the expense of this is almost an investment in our country it's -- you know, it's higher taxes. i don't think it will be higher inflation. i think we'll get reflation out of this. i think the effects of technology and globalization, which will continue to be secular drivers of the world economy, they're highly counter inflationary, and i think the real problem in the world is managing abundance and making sure it gets around to enough people to make a healthier more prosperous world but with that said, you know, it just -- you got to slog through all of this stuff. there's always trouble, and it just happens at this time there is heightened trouble. we can get through it if we put our minds to it, shoulder to the wheel, you know. that's what business is all about. >> yeah, we've been through a lot worse in the last couple hundred years in this country. i'm sure we will i like the optimism. any parts of the market that

still seem under or fairly valued for you that are good for our clients to invest in right now? >> we continue to like technology, consumer discretionary sectors. we also like industrials and financials, and we've been on these the whole year we carried them over for last year we think you ought to be overweight cyclicals modestly exposed to defenses even underweight the cyclicals are outperforming on a year-to-date basis on a week to week basis now growth over value continues to be ruling but we're seeing an expansion of the rally moving into value in terms of small caps and mid caps are looking healthier right now, and then we want to be exposed internationally in some meaningful way to both the emerging markets as well as to the developed international markets but rather cautious around china because with the

administration looking at areas of technology and concern, that's a worrisome spot. you don't want to get stuck there, you know, already you've begun to see some weakness in international technology >> everybody's been watching the small caps john, great stuff along with all the breaking news this morning we knew you could handle it, though that's why we have you on. that you thi thank you very much. another retailer under pressure we're going to tell you who. you can probably guess why as we head to break, congratulations to apple's ceo tim cook, he has officially joined the billionaire's club as apple shares continue to go up hey, when you own a few million shares of a stock that keeps going up that's what happens. elsewhere, leaders from major companies are joining us forces to create the new york jobs ceo council the group's goal is to hire 100,000 people from lower income minority communities by the year

2030 the council includes top execs from jpmorgan, ibm, microsoft, google and goldman sachs. get this, the free app robin hood is reporting more monthly stock trades than charles schwab and e-trade combined it is the first time the trading startup has published its monthly trading data maybe that is powering the markets. futures are being powered up nearly 300 othn e dow, p we aane are back on a big breaking news tuesday right after this

welcome back and good morning. obviously the stock market is looking to soar right now. dow futures up 265 that's the macro let's get a little micro leslie picker is back with some of the individual stock stories on this busy tuesday. >> hey, brian, inovio pharmaceuticals reporting a second quarter loss as revenue came up short. the firm updating progress its potential vaccine for covid-19 it's expanded an early stage trial by another 80 participants and says most are showing a response to the vaccine. shares of bed, bath and beyond are lower the retailer lifted the suspension of planned moves to reduce its debt which had been imposed due to market conditions caused by the pandemic virgin galactic raising about

$460 million in a secondary offering the company selling more than 23 million shares at $19.50 each. roughly in line to where the stock had traded since reporting second quarter results last week virgin showing no revenue, and hay pushed back the time line. anybody can raise money in the capital market these days it seems. >> well if you're going to take people to the moon, you're going to need some cash. maybe they should call the first plane or spaceship the spac. what do you make of that >> i like that idea. that's very clever that's a good one. >> you can't spell space without spac i literally just made that up. >> you can't, it's true. >> 5:40 in the morning. >> that was good that was good 7:30 in the morning let alone 5:40 stay on that coffee. >> i told you before, i'm slightly more smarter than the rest leslie picker, we'll see you

soon. now to simmering tensions between the united states and china. beijing unveiling a new wave of policies to help boost its own semiconductor industry perhaps at the expense of the united states we're joined now by daniel tannenbaum, he is partner at america's antifinancial crimes leader it's great to have you back on what do you make of these latest moves, and how far do you think this if you do that, i'm going to do this game continues? >> hey, brian, it's been an interesting couple of weeks with respect to how the u.s. and china have been engaging i think you've seen last week the executive orders against the technology companies, the social media companies. you've seen sanctions levied on friday against carrie lam and other members of the hong kong government that have made life pretty difficult for global banks operating in the hong kong market i do view, though, what china did yesterday with designating marco rubio and ted cruz under

their sanctions as somewhat of a deescalation step. this situation is getting untenable for businesses operating in both markets to easily operate without fear of some sort of government intervention on either side. >> so what's the way to deescalate it, dan is there -- i mean, do you see anything in your sort of crystal ball that says, all right, this is what countries do they kind of playground politics if you will, but ultimately it does back off. do you see any sign of that? >> i mean, this isn't typically what the first and second largest economies in the world do so the off-ramp is unclear you do need to see some degree of productive talks in line with what we saw related to the phase one deal a few months ago, but the honest truth is right now you've got a situation in the banking sector in hong kong where the u.s. has imposed

sanctions on certain government officials within hong kong, the hkma, the hong kong monetary authority came out the other day saying you don't need to comply with these u.s. sanctions domestically, but global banks are already turning away business from those impacted persons for fear of u.s. retaliation. and we've had this discussion before with respect to the u.s. and iran, banks will choose the u.s. until china gives them reason not to, but that's a dangerous game to say the least. >> yeah, it truly is an incredible story dan, let me ask you something separate russia claims they've got a working vaccine. boom, how's that for breaking news tuesday i'm not going to ask you if you believe it or not because who knows. it would be kind of a big fib for putin to say we have a working vaccine, sorry, just kidding or i'm not going to share it with the world. if russia does have one, let's say they did it. a lot of smart scientists over

there as well. what kind of leverage does that give them on the world >> i'll caveat this, which i've wanted to for months now i'm not an epidemiologist. so i know nothing about the likelihood of them producing a viable vaccine just to be clear on this what kind of leverage does it provide them i think you have this race at the moment globally for different countries trying to produce their own effective vaccine. i'm not sure how much leverage that necessarily gives them given how advanced some of the other countries and where their vaccine talks are. but you don't see a lot of major markets looking to eagerly embrace russia other than china at this point. i'm not sure if this is necessarily an event it's been clearly met with some skepticism >> yeah, well, markets right now appear -- futures did move up on the news that could be computers reading vaccine and moving on it dan, appreciate that we'll see you soon. top bio tech analyst matthew harrison of morgan stanley, his

take on that news as well as other candidates and why there is a reason to be optimistic markets certainly are. we're up 2 on 80dow futures. we're back right after this.

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that a girl. the all new nissan sentra. with more standard safety features than any other car in its class. ♪ welcome back, some breaking news this tuesday morning. russian president vladimir putin says his country has developed the world's first coronavirus vaccine. he says his own daughter has taken it and that they view it as safe and that it does work and gives long-lasting immunity. that is the news out of russia we don't have a lot of other information on it. "the washington post" and others have picked up the story now, so it appears to be gaining traction, and what a day to have on our next guest, matthew harrison, equity analyst at morgan stanley he and his team have been doing spectacular work from day one. you and i talked on the phone yesterday. i want to get to all those points i want to get your quick comment, what do you make of this russia vaccine news

do you think it could be real? where have they been on the vaccine spectrum or is this literally completely coming out of left field? >> good morning, brian, thanks for having me back on. so i don't know a lot, much, you know, probably about the same that you do. but there have been a few vaccines at various russian institutes that have been in development. i think the two key questions that we'd probably like more information on and you'd like more information on is what clinical data do they have to support the vaccine, and then i think the second thing to remember is there are various ways that you could license a vaccine. obviously in the u.s. we've chosen to run large patient studies to determine whether or not the vaccine is effective in terms of protecting people against symptomatic infection, but there are surrogate markers such as antibody generation and some of the data you've seen from vaccines we've talked about already, which some countries have discussed about being

sufficient to license the vaccine. i think it would be important to know what criteria has been used to license the vaccine >> yeah, and i don't know if -- i know nothing about global medical law, if there is any global medical law, are they under any obligation to share the data, share the vaccine. i'm sure they'd want to profit from it. do they have the capacity to ramp up all the billions of doses? a lot of questions on that, matthew. in the meantime, with what we're tracking here, you and i spoke and you told me yesterday you think we could have a u.s. or global working vaccine outside of this in the next few months who are the leading candidates right now for that >> sure, the leading candidates are three companies, astrazeneca, pfizer and moderna all have started some sort of phase three study pfizer and moderna have started 30,000 patient base in the u.s. astrazeneca has three studies

outside the u.s. in the uk, south africa and brazil that they may be able to put together as a way to ask for regulatory approval for their vaccine, and they should be starting a u.s. phase three soon >> and what about distribution and ramping up of doses. whether or not we have a vaccine is one thing whether or not we can get it to a couple hundred million americans and the world is another. >> yeah, and it's a good question i think right now what we know is all these vaccines are two doses, given about a month apart, and most of the companies have talked about being in the ten tens up to 100 million doses available by the end of the year our best estimate is somewhere between 100 and 150 million people could get the vaccine by the end of the year assuming all three are successful and probably by the end of the first quarter you would have enough broadly speaking for most

americans to be able to take the vaccine. >> yeah, and on the non-vaccine but antibody side, the treatment side, regeneron and a few others still looking good >> yes, indeed most have moved past what's called the initial phase, which is where you know whether or not it's safe, and now we're waiting for initial efficacy data, most of these companies are running two kinds of studies they're running a treatment study for people that are very sick and in the hospital, and then they're also running what's called a prophylactic study, which is for people who may be at high risk of exposure so say a nurse that works this a hospital or a doctor treating patients, where they could take it and maybe have a few months of protection, and we should know in september whether or not they're effective. >> okay. september. that's close by the way, we know that case numbers go up. they always go up large numbers, but the growth rate?

we're going to leave it there, yeah, i was going to ask about the growth rate. matthew, we're going to lieave i there. that does it for us here on "worldwide exchange. i'll be seeing you on "squawk box" for the next couple of hours. big breaking news, russia claims it has a vaccine we'll see if the world and the markets believe it dow futures up 270 i'll see you wh itthe gang on the other side of this short break on a very busy tuesday see you in two minutes or make me feel like i'm not really "there." talk to your doctor, and call 844-234-2424.

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t health ministry has approved a covid-19 vaccine, and vladimir putin said one of his doctors has taken it. stock futures jumping off of that news. the s&p just a few points away

from a new record high it's tuesday, august 11th, 2020, and "squawk box" begins right now. ♪ good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with wilford frost and brian sullivan it's great to have both of you here huge news that we are kind of wrangling with on this tuesday morning. take a look at the u.s. equity futures at this hour you're going to see some big gains right out of the gate. it's because the headlines that wolf just mentioned we'll talk more about putin and russia and this potential vaccine for covid in just a moment take a look right now, you're going to see the dow futures indicated up by about 260 points s&p futures up by 21 if we were to open